Agenda packet, study session, second session — Cathedral City City Council, October 14, 2026 (part 5 of 5)

Commission is authorized to review proposed amendments to zoning regulations and make recommendations to the City Council; and
WHEREAS, notice of the public hearing was provided in accordance with applicable provisions of State law and the Cathedral City Municipal Code on September 9, 2026 and the Planning Commission conducted a duly noticed public hearing on September 30, 2026, at which all interested persons were provided an opportunity to be heard regarding the proposed Development Code Update; and WHEREAS, an Addendum to the Cathedral City General Plan Environmental Impact Report ("General Plan EIR") was prepared pursuant to Section 15164 of the State CEQA Guidelines to evaluate the environmental effects of the Development Code Update; and
WHEREAS, the Addendum evaluates whether implementation of the Development Code Update would result in new significant environmental impacts or substantially increase the severity of impacts previously identified in the General Plan EIR; and
WHEREAS, the Addendum concludes that the Development Code Update remains consistent with the development framework analyzed in the General Plan EIR and would not result in new or substantially more severe environmental impacts than those previously evaluated; and
WHEREAS, a draft City Council Ordinance adopting the Development Code Update is attached hereto as Attachment A and incorporated herein by this reference; and
WHEREAS, the Planning Commission has reviewed and considered the staff reports, Final Hearing Draft Development Code, comment tracking matrix, CEQA Addendum, public testimony, and the entire administrative record prior to taking action on this matter.

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Cathedral City hereby recommends that the City Council take the following actions:

SECTION 1. FINDINGS.

The Planning Commission recommends that the City Council make the following findings based upon substantial evidence contained in the administrative record:

1. The Development Code Update is consistent with the Cathedral City 2040 General Plan.

Evidence: The Development Code Update serves as the primary implementation tool for the General Plan and establishes updated zoning regulations, 617

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development standards, land use regulations, and administrative procedures that implement and further General Plan goals, policies, and programs relating to land use, housing, community design, economic development, mobility, and environmental stewardship.

2. The Development Code Update promotes the public health, safety, and welfare and provides a clear and efficient framework for development review and implementation.

Evidence: The Development Code consolidates and reorganizes development regulations into a comprehensive document consisting of eight integrated divisions, establishes updated development standards and application procedures, clarifies review authority responsibilities, and streamlines development review processes while maintaining appropriate oversight and public participation opportunities.

3. The Development Code Update incorporates clarifications and revisions resulting from the public outreach and review process.

Evidence: The Final Hearing Draft Development Code incorporates staff recommended revisions documented in the Comment Tracking Matrix, including updates to definitions, zoning district provisions, implementation procedures, similar-use determinations, administrative processes, corrections, and editorial refinements.

SECTION 2. PLANNING COMMISSION ACTION
Based upon the foregoing findings and the entire administrative record, the Planning Commission hereby recommends that the City Council:

1. Adopt an ordinance, substantially in the form presented in Attachment B and incorporated herein by this reference, approving and adopting the Development Code set forth in Attachment A;

2. Find that the Development Code has been appropriately evaluated through the General Plan EIR and Addendum and that no further environmental review is required pursuant to CEQA; and

3. Direct staff to file a Notice of Exemption pursuant to CEQA. 618

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SECTION 3. PLANNING COMMISSION RECOMMENDATIONS
Pursuant to its advisory role, and based upon the foregoing findings and the entire administrative record, the Planning Commission forwards the following recommendations to the City Council for consideration:

1. Direct staff to provide an annual report to the Planning Commission regarding Similar Use Determinations made pursuant to Division 1 (Section 9.10.40) for consideration of whether such determinations should be incorporated into future amendments to the Development Code;

2. Evaluate during future Development Code reviews whether museums remain an appropriate land use within residential zoning districts under Division 2 (Section

9.20); and

3. Direct staff and the City Council to evaluate and establish a process for making the services of a licensed architect available to the Planning Commission, as needed, including consideration of any necessary amendments to Chapter 2.29 (Planning Commission) of the Municipal Code. The Planning Commission further notes that Chapter 2.30 (Architectural Review Committee) is anticipated to be repealed through a future amendment to the Municipal Code.

SECTION 4. CERTIFICATION.

The Secretary of the Planning Commission shall certify to the adoption of this Resolution and transmit this Resolution, together with all supporting documentation, to the City Council for consideration.
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PASSED, APPROVED, AND ADOPTED this 30th day of September, 2026, by the Planning Commission of the City of Cathedral City, California.

AYES:

NOES:

ABSENT:

ABSTAIN:

Danielle Mead, Chair
ATTEST AND APPROVED AS TO CONTENT:

Mark E. Muenzer, Director of
Community and Economic
Development/Secretary to the
Planning Commission
APPROVED AS TO LEGAL FORM:

Stephanie Gutierrez
Deputy City Attorney
ATTACHMENT A: Draft City Council Ordinance
ATTACHMENT B: Comprehensive Development Code Update
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ATTACHMENT A

DRAFT CITY COUNCIL ORDINANCE

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CATHEDRAL CITY, CALIFORNIA, REPEALING AND REPLACING
TITLE 9 (PLANNING AND ZONING) OF THE CATHEDRAL CITY

MUNICIPAL CODE WITH THE COMPREHENSIVE CATHEDRAL CITY

DEVELOPMENT CODE, FINDING THE PROJECT EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), AND MAKING

RELATED FINDINGS
WHEREAS, the City of Cathedral City has adopted the Cathedral City 2040 General Plan to guide future growth and development within the City; and WHEREAS, the Development Code serves as the principal regulatory tool for implementation of the General Plan; and
WHEREAS, the City has undertaken a comprehensive Development Code Update to modernize and reorganize its land use and development regulations, improve clarity and usability, streamline development review procedures, and ensure consistency with the General Plan; and
WHEREAS, the Development Code Update has been developed through an extensive public planning process involving the Technical Advisory Group, Steering Committee, Architectural Review Committee, Planning Commission, City Council, City staff, residents, community stakeholders, and members of the public; and WHEREAS, the proposed Development Code consists of eight divisions addressing introductory provisions, zoning districts regulations and standards, general development standards for specific land uses, subdivision regulations, application processing procedures, development code administration, and definitions; and WHEREAS, an Addendum to the General Plan Environmental Impact Report was prepared pursuant to CEQA Guidelines Section 15164 to evaluate the environmental effects of the Development Code Update; and
WHEREAS, the Addendum concludes that implementation of the Development Code Update would not result in new significant environmental effects nor substantially increase the severity of impacts previously analyzed in the General Plan EIR; and WHEREAS, on September 30, 2026, the Planning Commission of the City of Cathedral City conducted a duly noticed public hearing and adopted Resolution No. _____ recommending City Council approval of the Development Code Update; and 623

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WHEREAS, notice of the City Council public hearing was provided on __________ in accordance with applicable provisions of the California Government Code and Cathedral City Municipal Code; and
WHEREAS, the City Council conducted a duly noticed public hearing on __________ at which all interested persons were afforded an opportunity to be heard concerning the proposed Development Code Update.

THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES ORDAIN AS FOLLOWS:

SECTION 1. CEQA DETERMINATION
The City Council finds that the Development Code Update has been evaluated pursuant to the California Environmental Quality Act through the Addendum to the General Plan Environmental Impact Report prepared in accordance with CEQA Guidelines Section 15164. The City Council further finds that the Development Code Update would not result in new significant environmental impacts or substantially increase the severity of impacts previously identified in the General Plan EIR and that no subsequent or supplemental environmental document is required.

SECTION 2. FINDINGS
Based upon substantial evidence contained in the administrative record, the City Council makes the following findings:

A. The Development Code Update is consistent with the Cathedral City 2040 General Plan.

Evidence: The Development Code Update implements the goals, policies, and programs of the General Plan through updated zoning regulations, development standards, land use regulations, subdivision provisions, and administrative procedures designed to guide future development consistent with the City's adopted planning framework
B. The Development Code Update promotes the public health, safety, and welfare.

Evidence: The Development Code establishes a clear, comprehensive, and modern regulatory framework governing land use, site development, housing, circulation, economic development, community design, and environmental protection, thereby promoting orderly growth and protecting the public interest.

C. The Development Code Update improves administration of the City's land use regulations.
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Evidence: The Development Code consolidates development regulations into a single integrated document, modernizes review procedures, clarifies permit requirements and decision-making authority, and streamlines development review processes while preserving appropriate public review and oversight.

SECTION 3. MUNICIPAL CODE AMENDMENT
Based upon the foregoing findings, the City Council hereby repeals Title 9 (Planning and Zoning) of the Cathedral City Municipal Code in its entirety and adopts the "Cathedral City Development Code (Title 9)," attached hereto as Exhibit A and incorporated herein by this reference, as the City's comprehensive zoning and development regulations.

SECTION 4. SEVERABILITY
If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

The City Council declares that it would have adopted this Ordinance and every section, subsection, sentence, clause, phrase, and portion thereof irrespective of the fact that any one or more portions may be declared invalid.

SECTION 5. PUBLICATION
The City Clerk shall cause the adoption of this Ordinance to be published and processed in accordance with California Government Code Sections 36933 and 36937 and any other applicable provisions of law.

SECTION 6. EFFECTIVE DATE
This Ordinance shall become effective thirty (30) days following its adoption.

INTRODUCED AND APPROVED FOR FIRST READING this ___ day of ____________, 2026.

ADOPTED AND APPROVED FOR SECOND READING this ___ day of ____________, 2026.
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ATTACHMENT B

DEVELOPMENT CODE UPDATE
627
Staff Report
City Council
Item No. 5.A
Meeting Date: October 14, 2026
From: Jan De Guzman, Chief Technology Officer
Title: Security Cameras and Dispatch Alert System
RECOMMENDATION:

To approve the city hall security camera improvements, including the purchase of security camera equipment, associated wiring, and installation services, at a cost of $43,525.59, and approve the dispatch alerting improvements, including the equipment, installation, and programming, at a cost of $67,803.17. Staff further recommends City Council authorize a 20% contingency in the amount of $22,265.75 to address unforeseen conditions, additional materials, or other project-related costs that may arise during implementation; and approve a General Fund budget amendment for a total project appropriation of $133,594.51.

BACKGROUND:

This staff report presents two separate projects intended to address existing security and emergency communication needs at city facilities: (1) Security Camera Improvements and (2) Dispatch Alerting Improvements. Although the projects are separate and address different operational needs, both are intended to enhance the staff’s ability to respond to and manage security and emergency situations.

Security Camera Improvements: There is currently a surveillance camera system at the Civic Center, owever, the existing system does not provide complete coverage of the exterior areas of the facilities, resulting in gaps where activity may not be captured. These coverage limitations can make it difficult for staff and law enforcement personnel to review and investigate incidents occurring around city hall and the police department.

Dispatch Alerting Improvements: The city also currently has emergency alert buttons installed in city hall and the police department. When an emergency button is activated, the existing system provides an indication at dispatch; however, the current alert does not identify the specific button or location from which the alert originated. As a result, dispatch personnel must obtain additional information to determine the location of the emergency.

The proposed improvements are intended to address these separate operational limitations by expanding exterior surveillance coverage and improving the ability of dispatch personnel 1 to immediately identify the location of an activated emergency alert.

DISCUSSION:

Security Camera Improvements
The proposed solution will consist of installing multiple surveillance cameras at strategic locations on the exterior of the Civic Center where additional coverage is needed. The cameras and associated wiring and materials will be purchased separately, while the installation of the cameras and the installation and routing of the required wiring will be performed by a technical installer based on a labor quote. The project will also include the necessary equipment configuration, programming, and integration of the new cameras with the City's existing surveillance system. The cameras will be strategically positioned to address existing coverage gaps and provide improved visibility of key exterior areas, including building entrances, walkways, access points, and other areas surrounding city hall and the police department. Where appropriate, camera locations will provide overlapping views to improve overall coverage of the facility.

The current surveillance system does not provide sufficient coverage of all exterior areas of the Civic Center, resulting in areas where activity may not be captured on video. For example, the city recently experienced an incident where the existing camera system was unable to capture the area from which individuals involved in the incident approached the property. As a result, staff did not have sufficient video information to determine where the individuals came from or establish their movements prior to the incident. This incident highlighted the limitations of the city's existing exterior camera coverage and the need for additional visibility around the facility.

The proposed improvements will provide more comprehensive exterior surveillance coverage and additional recorded video for use by authorized city staff and law enforcement personnel when reviewing incidents. The expanded coverage will help document activity before, during, and after an incident, including the direction from which individuals or vehicles approach and leave the facility. This additional information can assist with incident review and investigation and improve situational awareness around city facilities.

The new cameras will be integrated with the city's existing surveillance infrastructure, allowing authorized personnel to access and review video through the city's existing system.

By expanding the existing camera network rather than creating a separate surveillance system, the project will enhance the city's current security capabilities and make use of existing infrastructure to the extent practicable.

Dispatch Alerting Improvements
The proposed dispatch alerting system will be provided by U.S. Digital Designs, the same vendor that installed the city's existing dispatch/fire station alerting system currently in use at the city's fire stations. The proposed solution will build upon the city's existing alerting infrastructure and will include the installation of LCD text displays at dispatch, audio alerting capabilities, emergency alert buttons at designated city facilities, associated wiring, a controller for the emergency alert buttons, and the necessary programming and system integration. The new equipment will be integrated with the existing dispatch/fire station 2 alerting system to allow emergency alerts from City Hall and Police Department areas to be communicated directly to Dispatch.

Under the existing system, when an emergency button is activated, a blue indicator light is displayed at Dispatch. However, the current system does not identify which emergency button was activated or the specific location of the alert. Because multiple emergency buttons use the same indicator color, Dispatch personnel must obtain additional information to determine the location of the emergency. This limitation may delay the ability of Dispatch personnel to immediately identify where assistance is needed.

With the proposed system, when an emergency button is activated, the LCD text display at dispatch will identify the specific location of the activated button. In addition, an audible voice alert will announce the location of the activated button. Providing both visual and audible notification will allow dispatch personnel to immediately identify the location of the alert and provide responding personnel with more specific information regarding where the emergency originated.

The proposed improvements will provide a more informative and efficient method of communicating emergency alerts to dispatch while enhancing the city's existing emergency notification infrastructure. By providing the specific location of an activated emergency button, the system will reduce the need for dispatch personnel to determine the source of an alert through additional communication and will provide responding personnel with more immediate and accurate location information. The integration with the existing dispatch/fire station alerting system will also allow the new alerting capabilities to operate as part of the City's existing alerting infrastructure.

Vendor Selection
The cameras and associated equipment are proposed to be purchased from CDW-G under the Sourcewell cooperative purchasing contract. Sourcewell is a government cooperative purchasing program that competitively solicits and awards contracts for participating public agencies. As CDW-G is an awarded Sourcewell contract vendor, the City may purchase the equipment through the existing competitively procured cooperative purchasing agreement without obtaining three additional quotes.

For the installation and wiring, the Facilities Department recommended an electrical contractor familiar with the City's facilities and the requirements of the project. As part of the vendor selection process, staff obtained a comparison quote from another vendor. The alternate vendor's quote was more than twice the cost of the recommended contractor's quote. Based on the comparison, staff determined that the recommended contractor provided a more cost-effective price for the required installation work.

USDD is proposed as the sole source for the dispatch alert system because the City's existing dispatch alerting system at all Fire Stations is a USDD system. The proposed project will expand the existing system to include City Hall and associated dispatch functionality.

Continuing with USDD will maintain compatibility and integration with the City's existing system and avoid implementing a separate dispatch alerting platform.

USDD's proposed pricing is based on the Master Price Agreement between the League of Oregon Cities (LOC) and USDD, which is available for use by eligible members of National Purchasing Partners, LLC (NPP), including its Public Safety GPO, Law Enforcement GPO, 3 and NPPGov programs. The pricing is provided under Contract No. PS26480. This agreement establishes contract pricing for USDD products and services and provides an established purchasing vehicle for eligible participating agencies. Contract information is available through NPPGov.

FISCAL IMPACT:
• Security Camera equipment, wiring, and installation will cost $43,525.59. • Dispatch Alerting System equipment, install and programming will cost $67,803.17. • A 20% contingency cost of $22,265.75 to address uncertainties that may arise during the project.
• The total cost of the project is $133,594.51. A budget amendment is required to fund the project from the General Fund account.
• The new surveillance cameras include a 5-year license, so no yearly software subscription is required at this time.
• The dispatch alerting solution includes a 1-year warranty and support. After the initial year, warranty and support renewal is estimated at $3,746.30 per year. • The equipment costs may be capitalized in the Equipment Replacement Fund (611).

Security Camera Project Dispatch Alerting Project
Items Cost Items Cost
Cameras and licenses $ 36,589.83 USDD $ 67,803.17
Installation $ 5,381.50 Contingency @ 20% $ 13,560.63
Wiring $ 1,554.26 TOTAL $ 81,363.80
SUB TOTAL $ 43,525.59
Contingency @ 20% $ 8,705.12
TOTAL $ 52,230.71

DESCRIPTION GENERAL
LEDGER

ACCOUNT
CODES

PROJECT
CODE
AMOUNT ONE TIME or

ONGOING
2026-2027 Security Camera 100-100-130-
142-8XXX-8XXX M03014 52,230.71 ONE TIME
2026-2027 Dispatch Alerting 100-100-130-
142-8XXX-8XXX M03014 81,363.80 ONE TIME
2026-2027 Total $ 133,594.51
FIVE-YEAR STRATEGIC PLAN:

INNOVATION D-3 - Work with operations staff to identify, implement and support the implementation of technology solutions to bolster IT security and improve operational, analytical, and management functions.

SAFETY E-2 - Continue to explore and utilize technology to promote public safety. 4 ATTACHMENTS:

1. Security Cameras quote

2. Wiring quote

3. Security Camera install quote

4. USDD Dispatch Alert quote
5 Hardware Software Services IT Solutions Brands Research Hub

QUOTE CONFIRMATION
Thank you for choosing CDW. We have received your quote.

JAN DE GUZMAN,
Thank you for considering CDW•G for your technology needs. The details of your quote are below. If you are an eProcurement or single sign on customer, please log into your system to access the CDW site. You can search for your quote to retrieve and transfer back into your system for processing.

For all other customers, click below to convert your quote to an order.

Pricing and Availability Notice
Due to ongoing supply chain challenges, some hardware manufacturers cannot guarantee product availability or pricing until the product is shipped. While we make every effort to honor quoted pricing, if a hardware manufacturer increases its price to CDW after a quote is issued or order is accepted, we may need to update your quoted price to reflect that change irrespective of any timeframes or validity periods set forth in the quote, including up to the date of shipment. In the event of a price adjustment, we will notify you prior to shipment. Any price adjustment would only occur if the hardware manufacturer increases its pricing to CDW.

Convert Quote to Order
QUOTE # QUOTE DATE QUOTE REFERENCE CUSTOMER # GRAND TOTAL PZRB043 9/23/2026 AXIS CIVIC CENTER ADD

CAMERAS
9722290 $36,589.83

QUOTE DETAILS
ITEM QTY CDW# UNIT PRICE EXT. PRICE
AXIS M42 Series M4227-LVE - network surveillance camera - dome - TAA Compli
21 8432519 $850.53 $17,861.13
Mfg. Part#: 02815-001
Taxable
Contract: Sourcewell 121923-CDWG Tech Catalog GOV ONLY
(121923)
AXIS 1TB Surveillance Card 21 6954524 $661.72 $13,896.12 Mfg. Part#: 02366-001
Taxable
Contract: Sourcewell 121923-CDWG Tech Catalog GOV ONLY
(121923)
AXIS Camera Station Pro Core - subscription license (5 years) - 1 device
21 7964181 $90.24 $1,895.04
Mfg. Part#: 02991-001
non taxable until 1/1/2027
Electronic distribution - NO MEDIA
Contract: Sourcewell 121923 CDWG-Software GOV ONLY (121923) 6

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SUBTOTAL $33,652.29
SHIPPING $0.00
SALES TAX $2,937.54
GRAND TOTAL $36,589.83

PURCHASER BILLING INFO DELIVER TO
Billing Address:

JAN DE GUZMAN

CITY OF CATHEDR
68700 AVENIDA LALO GUERRERO
CATHEDRAL CITY, CA 92234-1208
Phone: (760) 770-0361
Payment Terms: Net 30 Days-Govt State/Local
Shipping Address:

CITY OF CATHEDRAL CITY
ATTN:JAN DE GUZMAN
68700 AVENIDA LALO GUERRERO
CATHEDRAL CITY, CA 92234
Phone: (760) 770-0361
Shipping Method: DROP SHIP-GROUND
Please remit payments to:

CDW Government
75 Remittance Drive
Suite 1515
Chicago, IL 60675-1515
Sales Contact Info
Jon Cacioppo | (877) 603-6330 | [email protected]
Need Help?
My Account Support Call 800.800.4239
About Us | Privacy Policy | Terms and Conditions
This order is subject to CDW's Terms and Conditions of Sales and Service Projects at http://www.cdwg.com/content/terms-conditions/product-sales.aspx For more information, contact a CDW account manager.
© 2026 CDW•G LLC, 200 N. Milwaukee Avenue, Vernon Hills, IL 60061 | 800.808.4239 7 Hardware Software Services IT Solutions Brands Research Hub

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Convert Quote to Order
QUOTE # QUOTE DATE QUOTE REFERENCE CUSTOMER # GRAND TOTAL 1CL3KCP 10/1/2026 CAT6-FOR-CAMERAS 9722290 $1,554.26

QUOTE DETAILS
ITEM QTY CDW# UNIT PRICE EXT. PRICE
Tripp Lite 1000ft Cat6 Gigabit Bulk Cable Solid Core CMR PVC Yellow TAA
4 4213632 $235.70 $942.80
Mfg. Part#: N222-01K-YW
UNSPSC: 26121609
Contract: California AEPA-026D S&L Gov (026-D)
Tripp Lite 1000ft Cat6 600MHz Gigabit Bulk Solid PVC CMR Cable Blue 1000'
2 813459 $239.93 $479.86
Mfg. Part#: N222-01K-BL
UNSPSC: 26121609
Contract: California AEPA-026D S&L Gov (026-D)
SUBTOTAL $1,422.66
SHIPPING $0.00
SALES TAX $131.60
GRAND TOTAL $1,554.26

PURCHASER BILLING INFO DELIVER TO
8

Page 2 of 2 ends

Billing Address:

JAN DE GUZMAN

CITY OF CATHEDR
68700 AVENIDA LALO GUERRERO
CATHEDRAL CITY, CA 92234-1208
Phone: (760) 770-0361
Payment Terms:

Shipping Address:

CITY OF CATHEDRAL CITY
ATTN:JAN DE GUZMAN
68700 AVENIDA LALO GUERRERO
CATHEDRAL CITY, CA 92234
Phone: (760) 770-0361
Shipping Method: DROP SHIP-GROUND
Please remit payments to:

CDW Government
75 Remittance Drive
Suite 1515
Chicago, IL 60675-1515
Sales Contact Info
Jon Cacioppo | (877) 603-6330 | [email protected]
Need Help?
My Account Support Call 800.800.4239
About Us | Privacy Policy | Terms and Conditions
This order is subject to CDW's Terms and Conditions of Sales and Service Projects at http://www.cdwg.com/content/terms-conditions/product-sales.aspx For more information, contact a CDW account manager.
© 2026 CDW•G LLC, 200 N. Milwaukee Avenue, Vernon Hills, IL 60061 | 800.808.4239 9 RHYTHM ELECTRIC LLC Proposal
73530 Catalina Way Apt 1
Palm Desert, CA 92260
Ph: (760) 851-2229
Email: [email protected]
CLIENT:

CATHEDRAL CITY HALL
68700 AVENIDA LALO GURRERO
CATHEDRAL CITY, CA 92234

TERMS PROJECT

BID BUILDING CAMERA
FEEDS

QUANTITY DESCRIPTION RATE AMOUNT
36ea.

Misc.

Labor:

1. Run cat 6 feeds to (18) separate locations in
and around the main city hall building.

2. Install the cameras in locations approved by
the IT and PD dept representatives.

3. All feeds to be run into the
electrical/telephone room and terminated by
the server racks and in addition, all feeds to
be dedicated runs.

4. Rhythm Electric will be responsible for
installing the RJ45 terminations at each end
of the run.

5. Cat 6 to be tested for wire integrity and
performance before being energized.

Materials:

RJ45 termination ends.

Standards, straps and attachment materials.

Sub-total Labor
Sub-total Materials
Tax on Materials @ 9.25%
$5000.00
$49.20
$300.00
$5000.00
$349.20
$32.30
TOTAL $5381.50
DATE PROPOSAL#
9/21/2026 55212041
10 Terms:

1. Quote is subject to approval from the local serving utility of work to be accomplished if required.

2. Utility fees are not included.

3. All devices must have appropriate UL listings.

4. Any service equipment in need of corrections or updating will be done on a time and material basis with labor @ $100.00 per hour and materials marked up @ 20%.

5. Shipping and handling not included.

6. Permit fees not included.

7. Work is guaranteed for 1 calendar year after inspection.

EXCLUSIONS: Off hours work, Code upgrades to existing systems, Utility hookup fees, Hazardous materials removal and abatement including but not limited to lead and asbestos, WSST as built, California state energy code requirements, All patch and paint, excavation, backfill, soil removal, saw and concrete removal unless otherwise specified in the contract.

PAYMENT TO BE MADE AS FOLLOWS: 40% upon signing, 35% upon completion of rough-in, 25% upon final inspection.

All work is guaranteed for one year upon final inspection. All work to be completed in a craftsman like manner according to industry standards. All agreements are contingent upon strikes, accidents or delays beyond our control.

Owners to carry fire insurance and other necessary insurances.

ACCEPTANCE OF PROPOSAL: The above prices, specifications and conditions are satisfactory and are hereby accepted. You authorized to do the work as specified. Payment will be made as outlined. Our price will remain in effect for 30 days, after which it will be subject to a review.

Date of Acceptance Cont. or Owners Signature
Date of Acceptance Rhythm Electric LLC
11 US DIGITAL DESIGNS Author: DWK
by Honeywell Date: 9/22/2026
1150 W Grove Pkwy St #110 Expires: 12/21/2026
Tempe, AZ 85283 Proposal: CA_CATH017 v2
Quotation to:

Cathedral City, CA
Project:

City Hall/PD Dispatch G2 Alerting System
One (1) Station System - City Hall
Pricing pursuant to the Master Price Agreement entered into between League of Oregon Cities (LOC) and USDD, and made available to members of the National Purchasing Partners, LLC, dba Public Safety GPO, dba Law Enforcement GPO, and dba NPPgov - Contract #PS26480. More information available at: https://nppgov.com/contract/honeywell/ Cathedral City, CA is a member: M-5712155
William Butler
Sr. Territory Manager
(602)-687-1733
(602)-687-1730
[email protected]
stationalerting.com
Installation Included
This proposal is subject to correction for errors or omissions Responsibility for identifying any errors or omissions in this quote rests with the Customer prior to order placement. *10/1/2026 Pricing*
12 US DIGITAL DESIGNS Date: 9/22/2026
by Honeywell Expires: 12/21/2026
Proposal: CA_CATH017 v2
Quote Submitted To:

Cathedral City, CA

CITY HALL
USDD Design Referenced:

USDD.CA_CATH.CITYHALL.FSA.2026.09.09
STATION SYSTEM LICENSES (Tax applicable)
Part No. Description Quantity US List Unit Unit Price Extended Price G2-VA G2 VoiceAlert - Single Station License 1 $ 1,655.00 $ 1,489.50 $ 1,489.50 G2-APP-DLA G2 Mobile FSAS App 24 $ 15.00 $ 13.50 No Charge STATION SYSTEM CONTROLLER (Tax applicable)
Part No. Description Quantity US List Unit Unit Price Extended Price ATX G2 ATX Station Controller 1 $ 25,532.00 $ 22,978.80 $ 22,978.80 UPS-STD ATX UPS, Standard 1 $ 1,101.00 $ 990.90 $ 990.90 UPS-WMB Wall-Mount for UPS (Shelf/Bracket) 1 $ 84.00 $ 75.60 $ 75.60 STATION SYSTEM PERIPHERAL COMPONENTS (Tax applicable)
Part No. Description Quantity US List Unit Unit Price Extended Price IOR G2 I/O Remote 3 $ 1,744.00 $ 1,569.60 $ 4,708.80
PB-R Push Button, Emergency (Red) 1 $ 139.00 $ 125.10 $ 125.10 USDD-LCD-SIGN G2 LCD Message Sign 1 $ 3,308.00 $ 2,977.20 $ 2,977.20 SPK-LED-FM G2 Speaker - LED Illuminated, Flush Mount 1 $ 412.00 $ 370.80 $ 370.80 STATION SYSTEM SERVICES (Tax NOT applicable)
Part No. Description Quantity US List Unit Unit Price Extended Price ST-INST Station Installation 1 $ 25,247.28 $ 25,247.28 $ 25,247.28 ST-SU Station Configuration & Commissioning 1 $ 3,176.00 $ 2,858.40 $ 2,858.40 ST-PM Station Project Management 1 $ 1,782.00 $ 1,603.80 $ 1,603.80 ST-ES Station Engineering & Design Services 1 $ 908.00 $ 817.20 $ 817.20 FREIGHT-CHARGES Shipping 1 $ 441.00 $ 441.00 $ 441.00

STATION SYSTEM WARRANTY & OPTIONAL RECURRING ANNUAL SUPPORT Part No. Description Quantity US List Unit Unit Price Extended Price RS-1YR-STD
[STANDARD] 1st Year Warranty & Support - Included with Initial Purchase
Technical phone support Monday through Friday from 08:00 to 17:30 MST, excluding USDD holidays;
Remote access support Monday through Friday from 08:00 to 17:30 MST, excluding USDD holidays;

1.0 $ 3,746.30 $ 3,371.67 No Charge

CITY HALL
Equipment Only: $ 33,716.70
System: $ 64,243.38
Shipping: $ 441.00
Service & Support: $ -
Estimated Tax: $ 3,118.79
Station Subtotal: $ 67,803.17
PROPRIETARY and CONFIDENTIAL CITYHALL Page 2 of 10
13 Warranty & Support Notes:

Customer must elect to choose any coverage they require beyond initial warranty period, or USDD will not be authorized to provide any service or support. Mobile Smart Phone Alerting App and Mapping Services only available to customer while under warranty or elected recurring annual support. Support Agreements subject to change if system design is modified. For additional details, please review current USDD Warranty Statement and Service Agreement. USDD cannot warrant nor support any system configuration that deviates from this specific proposal's documented station system design file number. USDD cannot warrant nor support any system not using USDD-approved UPS Battery Backup. USDD cannot warrant nor support any system not installed by G2 Trained & Certified Installation technician (installer). If customer intends to tie this system into any 3rd-party system or devices, USDD will be unable to warrant or support the system until we've had a chance to review documented engineering assumptions and approve system integrity, performance and reliability expectations.

Station System Installation Notes:
01 - Unless specifically detailed in this proposal, no installation by USDD or it's subcontractors is assumed or provided. 02 - Because these are mission-critical systems, USDD can only warrant and support systems installed by G2 Trained and Certified Contractors. 03 - USDD can source, qualify, train and certify Local Licensed Regional Subcontractors where needed. 04 - Installation warranted by installation contractor - G2 FSAS warranted, serviced and supported by USDD. 05 - Unless specifically detailed in this proposal, installation to be performed during normal working hours. 06 - Unless specifically detailed in this proposal, no permit fees or material charges have been included. 07 - Unless specifically detailed in this proposal, no removal or remediation has been assumed or included. 08 - Unless specifically detailed in this proposal, no bonds of any type (performance, bid) have been assumed, included or budgeted for in this proposal. 09 - USDD FSAS Equipment to be made available by owner to Installation Contractor prior to on-site arrival. 10 - Structural backing for system devices and other millwork (not specifically detailed) by others. 11 - If applicable, Gas Control Shutoff Valve Addendum (to USDD and installation contractor) must be signed prior to installation. 12 - All electrical power, including (but not limited to) raceway, conduit, backboxes, service panels, high-voltage wiring and fixtures by others. 13 - All communications pathway infrastructure (network, radio, etc.) by others unless specifically detailed in this proposal. 14 - USDD cannot warrant nor support any owner-furnished (3rd-Party) system or component we are required to integrate with. USDD cannot warrant nor support any system or component it has not proofed engineering for and has not specifically authorized for use within public safety environments. 15 - Any misuse, unauthorized modification, improper installation, excessive shock, attempted repair, accident, or improper or negligent use, storage, transportation, or handling by any party other than USDD shall render this limited warranty null, void and of no further effect PROPRIETARY and CONFIDENTIAL CITYHALL Page 3 of 10
14 US DIGITAL DESIGNS Date: 9/22/2026
by Honeywell Expires: 12/21/2026
Proposal: CA_CATH017 v2
Quote Submitted To:

Cathedral City, CA
Cathedral City, CA
[UNLESS OTHERWISE NOTED, ALL PRICES ARE $USD]
CITY HALL SYSTEM: $ 64,684.38
CITY HALL SERVICE & SUPPORT: $ -
CITY HALL ESTIMATED TAX: $ 3,118.79
Station-Level Subtotal: $ 67,803.17
Equipment & Service Total: $ 64,684.38
Tax Total: $ 3,118.79
US Digital Designs System Total: $ 67,803.17
(TBD By Customer) Customer must elect to choose any coverage they require beyond initial warranty period, or USDD will not be authorized to provide any service or support. Mobile Smart Phone Alerting App and Mapping Services only available to customer while under warranty or elected recurring annual support. Support Agreements subject to change if system design is modified. For additional details, please review current USDD Warranty Statement and Service Agreement.

Dispatch or station level training is not included in this proposal. Contact your Regional Territory Manager to schedule additional training if needed.

SECTION TOTALS
Notes: One (1) Station System included in this proposal with installation included.

PROPRIETARY and CONFIDENTIAL SECTION TOTALS Page 4 of 10 15 TERMS AND CONDITIONS OF HONEYWELL PRODUCT SALES
These terms and conditions of sale (“Terms and Conditions”) are adopted effective January 1, 2023 (the “Terms and Conditions Effective Date”), and supersede all prior versions covering the sale of products and related services (collectively, “Products”, as defined more specifically below) by Honeywell International Inc., through its US Digital Designs group (“Honeywell”). References to “Customer”, “you”, or “your” all pertain to the purchaser of Products. These Terms and Conditions, together with any separate agreement you may have with Honeywell that specifically references these Terms and Conditions (collectively, the “Agreement”) set forth the entire agreement between the parties relating to your purchase of Honeywell Products. The Agreement may only be modified by an authorized representative of each party in a signed writing.

1. ORDERS. Orders (including any revised and follow-on orders) (each, an “Order”) for Honeywell Products are non-cancelable, except as expressly set forth herein, and will be governed by the terms of the Agreement. All Orders are subject to acceptance by Honeywell and shall include the following information: purchase order number; customer’s legal name and billing address; Customer’s shipping address; and a list of the Products and quantities for each different type of Product Customer wishes to order. Honeywell’s acknowledgment of its receipt of an Order shall not constitute acceptance of such Order.

1.1 No Returns. Because of the nature of System and its Products, Honeywell cannot accept returns of Product for refund, credit, exchange or any other purpose. Notwithstanding, defective Products may be returned as provided for under Section 9.4 – Return Material Authorization Process. Customer must thoroughly assess its requirements and specifications prior to ordering.

2. REMITTANCES. All invoices shall be due and payable upon receipt in United States currency, free of exchange or any other charges, or as otherwise agreed in writing by Honeywell.

3. QUOTE PRICING. This proposal expires 90 days after its date. Prices are subject to correction for error. Prices, terms, conditions, and Product or Service specifications are subject to change without notice. Pricing is subject to immediate change upon announcement of Product discontinuance.

4. PAYMENT.

4.1. Invoicing & Payment. Honeywell reserves the right to invoice Customer monthly for all materials delivered. Invoices are due thirty (30) days from the date of the invoice, unless prepayment is required in the quote. If the Customer becomes overdue in any progress payment, Honeywell shall be entitled to suspend further shipments, shall be entitled to interest at the annual rate of 18%, or the maximum amount allowed by law, and shall also be entitled to avail itself of any other legal or equitable remedies. Customer agrees that it will pay and/or reimburse Honeywell for any and all reasonable attorneys’ fees and costs which are incurred by Honeywell in the collection of amounts due and payable hereunder.

4.2. Payment Disputes. Any disputes must be provided to Honeywell as soon as possible and must be accompanied by detailed supporting information. Disputes as to invoices are deemed waived fifteen (15) days following the invoice date. In the event that any portion of an invoice is undisputed, such undisputed amount must be paid by no later than the invoice due date.

4.3. No Set Off. Neither Customer nor any related entities (or representatives or agents thereof) shall attempt to set off or recoup any invoiced amounts or any portion thereof against other amounts that are due or may become due from Honeywell, its parent, affiliates, subsidiaries or other legal entities, business divisions, or units.

4.4. Credit Card Payments. All Honeywell quotes are developed for the Customer with the understanding that any purchase of the Products listed thereon will facilitated using to Honeywell’s standard Purchase Order and Invoice process. If Customer would rather seek to use a Credit Card for purchase, then said order would be subject to a 4% credit card surcharge.

5. SURCHARGES.

5.1. For avoidance of doubt, Orders placed prior to the Terms and Conditions Effective Date which have not been delivered, including those on backlog or which requested delivery more than twelve (12) months from the date of Order, are subject to Surcharges.

5.2. Honeywell will invoice Customer, and Buyer agrees to pay for any Surcharges pursuant to the standard payment terms in these Terms and Conditions. If a dispute arises with respect to Surcharges and that dispute remains open for more than fifteen (15) days, Honeywell may, in its sole discretion, withhold performance or future shipments, or combine any other rights and remedies under this Agreement or permitted by law, until the dispute is resolved. The terms of this Section shall prevail in the event of inconsistency with any other terms in these Terms and Conditions. Any Surcharges, as well as the timing, effectiveness, and method of determination thereof, will be separate from and in addition to any changes to pricing that are affected by any other provisions in these Terms and Conditions.

6. CANCELLATION AND SUSPENSION. Any Order resulting from this proposal is subject to cancellation or instructions to suspend work by the Customer only upon agreement to pay Honeywell for all work in progress, all inventoried or ordered project parts and materials, and all other costs incurred by Honeywell related to the Order.

7. TAXES. Honeywell’s pricing excludes all taxes (including but not limited to sales, use, excise, value-added, and other similar taxes), tariffs and duties (including, but not limited to, amounts imposed upon the Product(s) or bill of material thereof under any Trade Act, including, but not limited to, the Trade Expansion Act, section 232 and the Trade Act of 1974, section 301) and charges (collectively “Taxes”). All Taxes of any kind levied by any federal, state, municipal or other governmental authority, which tax Honeywell is required to collect or pay with respect to the production, sale, or delivery of products sold to Customer, shall be the responsibility of and be invoiced to Customer, unless, at the time of Order placement, Customer furnishes Honeywell with a valid exemption certificate or other documentation sufficient to verify exemption from Taxes, including, but not limited to, a direct pay permit. Customer agrees to pay all such Taxes and further agrees to reimburse Honeywell for any such payments made by Honeywell.

8. SHIPPING/DELIVERY/RISK OF LOSS.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 5 of 10 16 8.1. Delivery Liability. Delivery and shipment dates for Products are estimates only. Deliveries may be made in partial shipments. Honeywell and its affiliated entities are not liable, either directly or indirectly, for delays of carriers or delays in connection with any Force Majeure Event (as defined in Section 17 below), and the estimated delivery date shall be extended accordingly.

8.1.1. Inspection upon Receipt. The Customer must inspect all shipments upon receipt. Any claims for damage, loss, or shortages must be submitted within 10 calendar days of receipt. Honeywell will not be responsible for claims made after this 10-day period.

8.2. Future Delivery and Repricing. Honeywell will schedule delivery in accordance with its standard lead times unless the Order states a later delivery date or the parties otherwise agree in writing. Honeywell will accept Orders with a future ship date of up to eighteen (18) months from the date of the entry of the Order. Customer agrees that in the event an Order is scheduled to be delivered more than six (6) months from the date of the entry of the Order, Honeywell may, in its sole determination and at each six (6) month anniversary of the date of the entry of the Order, adjust the pricing of the Order to conform to the then-current prices of the Honeywell Products included in the Order.

Honeywell will include any repricing in its final invoice related to the Order.

8.3. Storage Fees. If delivery takes place more than six (6) months from the date of the entry of the Order, Customer agrees to pay Honeywell a storage fee (the “Storage Fee”), as set forth in the quote, for each month after six (6) months from the date of the entry of the Order Customer has not taken delivery of the Products in the Order. Honeywell will separately invoice any storage fees owed under this Section at the end of each month for which the storage fees are owed.

8.4. Title & Risk of Loss. Unless otherwise specifically detailed in this quote, delivery terms for Products (excluding software and services) are (i)

EX Works (EXW Incoterms 2020) Honeywell’s point of shipment (“Honeywell Dock”) for all shipments (except that Honeywell is responsible for obtaining any export license), and (ii) F.O.B. Honeywell Dock for all domestic shipments. For shipments from a Honeywell Dock to a Buyer location within the same country, the import/export provisions of the INCOTERMS do not apply. Honeywell shall be responsible for obtaining insurance on each shipment to Customer for the full value of the shipment. Shipment shall be to a single point of delivery.

9. LIMITED WARRANTY. CUSTOMER’S EXCLUSIVE REMEDIES AND HONEYWELL’S SOLE LIABILITY AS TO ANY WARRANTY CLAIM ON ANY PRODUCT SOLD IN CONNECTION WITH THIS QUOTE IS AS SET FORTH IN THIS SECTION. SUCH REMEDIES ARE IN LIEU OF ANY OTHER

LIABILITY OR OBLIGATION OF HONEYWELL, INCLUDING WITHOUT LIMITATION ANY LIABILITY OR OBLIGATION FOR DAMAGE, LOSS,

OR INJURY (WHETHER DIRECT, INDIRECT, EXEMPLARY, SPECIAL, CONSEQUENTIAL, PUNITIVE OR INCIDENTAL) ARISING OUT OF OR IN CONNECTION WITH THE DELIVERY, USE, OR PERFORMANCE OF THE PRODUCTS. CREDIT, REPAIR OR REPLACEMENT (AT HONEYWELL’S OPTION) IS THE SOLE REMEDY PROVIDED HEREUNDER. NO EXTENSION OF THIS WARRANTY WILL BE BINDING UPON HONEYWELL UNLESS SET FORTH IN WRITING AND SIGNED BY A HONEYWELL AUTHORIZED REPRESENTATIVE.

9.1 Product Warranty Terms

9.1.1. If Customer is purchasing a new System, i.e., the initial System for Customer, or for a new Dispatch System or Station System. subject to the terms, conditions and limitations contained herein, and unless Honeywell has otherwise provided an alternative written warranty (in which case the terms of such warranty will control), Honeywell warrants and guarantees its products will be free from defects in workmanship and materials (collectively, “Defects”) for 12 months from Customer’s “Commissioning Date” (“Warranty Period”). This limited warranty does not cover defects caused by normal wear and tear or maintenance. For purposes of subparagraph, “Commissioning Date” shall mean means the date on which an authorized Honeywell technician has inspected and approved installations, confirmed that all connections and start-up configurations are properly working, and confirming the System can send and receive alerts through the configured communication pathways.

9.1.2. If Customer is purchasing Products or services to add to or as replacement Products for an existing System, subject to the terms, conditions and limitations contained herein, and unless Honeywell has otherwise provided an alternative written warranty (in which case the terms of such warranty will control), Honeywell warrants and guarantees its products for 12 months from the day of shipment to Customer (“Warranty Period”). This limited warranty does not cover defects caused by normal wear and tear or maintenance.

9.2. Product Defects. If a Defect with a Product arises and a valid claim is made within the Warranty Period, Customer shall initiate the RMA process as described below. Upon approval, Honeywell at its option, will either (1) repair the Product defect at no charge, using new parts or parts equivalent to new in performance and reliability or (2) exchange the Product with a Product that is new or equivalent to new in performance and reliability and is at least functionally equivalent to the original Product. Any replacement Product or part, including a userinstallable part that has been installed in accordance with instructions provided by Honeywell, shall remain under warranty during the Warranty Period or for ninety (90) days from the date of repair, whichever is longer. When a Product or part is exchanged, any replacement item becomes the Customer’s property and the replaced item becomes the property of Honeywell. Parts provided by Honeywell in fulfillment of its warranty obligation must be used in the same Honeywell Fire Station Alerting System for which the warranty claim is made.

9.3. Procedure for Warranty Claims.

9.3.1. Prior to making a Warranty claim, Customer is encouraged to review Honeywell’s online help resources. Thereafter, to make a valid claim hereunder, Customer must contact Honeywell technical support and describe the problem or defect with specificity. The first such contact must occur during the Warranty Period. Honeywell’s technical support contact information can be found on Honeywell’s web site at https://buildings.honeywell.com/us/en/brands/our-brands/usdd. Customer must use its best efforts to assist in diagnosing defects, follow Honeywell’s technical instructions, and fully cooperate in the diagnostic process. Failure to do so shall relieve Honeywell of any further obligation hereunder.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 6 of 10 17 9.3.2. If a defect with the Hardware arises and Customer makes a valid Support Service Request within the Warranty Period, Customer shall initiate the RMA process as described below. Upon approval, Honeywell will cause shipment of a replacement Hardware component to Customer prior to the defective Hardware component being returned to Honeywell for repair. The replacement Hardware will be new or equivalent to new in performance and reliability and at least functionally equivalent to the original Hardware. When Hardware is exchanged, any replacement item becomes the Customer’s property and the replaced item becomes the property of Honeywell. Replaced Hardware provided by Honeywell in fulfillment of the Support Services must be used in the System to which this Agreement applies.

9.4. Return Material Authorization Process. If a Customer makes a claim for an advanced replacement of a Hardware component during the Warranty Period, Customer must initiate an RMA request. As part of this RMA process, the Customer shall provide Honeywell with the Hardware, model, serial number, and a description of the Hardware’s failure to initiate the RMA process. Upon Honeywell’s issuance of the RMA, Honeywell will send the replacement Hardware, shipped postage paid, ground shipping, to the address provided by Customer. RMA requests approved between 12:00 a.m. and 2:00 p.m. Mountain Standard Time are shipped on the same business day. After 2:00 p.m.

Mountain Standard Time, the replacement Hardware will be shipped on the next business day. All RMA requests are processed on the business day on which the request was received, excluding holidays. Included with the shipped package will be return shipment instructions and a pre-paid return shipping label for the Hardware that the Customer is returning. The original Hardware must be returned in the shipping box provided by Honeywell. No goods will be accepted for exchange or return without a pre-approved RMA number, nor will goods which have not been properly packaged in Honeywell’s shipping box, as proper packaging ensures that goods are not damaged during the shipping process. The original Hardware must be shipped back within 10 days of receiving the replacement Hardware. Failure to return the original Hardware or failure to return the original Hardware in an appropriate manner will cause Customer to incur a replacement charge equal to full market value of the replacement Hardware.

9.5. No Fault Found. Customer understands that this fee is intended to discourage return of Products prior to proper troubleshooting or return because the product is “old.” Product returns will not be allowed if, upon examination of the returned Product, it is determined that the Product was subjected to accident, misuse, neglect, alteration, improper installation, unauthorized repair, improper testing, or poor packaging upon return. In such event, Honeywell shall invoice Customer for the full market value of the replacement Product.

9.6. WARRANTY EXCLUSIONS & DISCLAIMERS.

9.6.1. Honeywell does not warrant that the operation of its Products or any related peripherals will be uninterrupted or error-free. Honeywell further does not warrant nor support any system configuration that deviates from this specific quote’s documented station system design file number.

9.6.2. Honeywell does not warrant or support any system not installed by G2 Trained & Certified Installation technician (installer). If Customer intends to tie this system into any 3rd-party system or devices, Honeywell will be unable to warrant or support the Products unless Honeywell has had a chance to review documented engineering assumptions and approve system integrity, performance, and reliability expectations

9.6.3. Honeywell is not responsible for damage arising from Customer’s failure to follow instructions relating to the use of the Products.

This Warranty does not apply to any Products, including the hardware or software, not used for its intended purpose.

9.6.4. Honeywell cannot warrant nor support any system not using Honeywell-approved Uninterruptable Power Supply Battery Backup.

This Warranty does not apply to monitors or televisions manufactured by third parties. Repair or replacement of such components shall be subject exclusively to the manufacturer’s warranty, if any. Recovery and reinstallation of hardware and user data (including passwords) are not covered under this Warranty.

9.6.5. This Warranty does not apply: (a) to consumable parts, such as batteries, unless damage has occurred due to a defect in materials or workmanship; (b) to cosmetic damage, including but not limited to scratches, dents and broken plastic on ports; (c) to damage caused by use with non-Honeywell products; (d) to damage caused by accident, abuse, misuse, flood, lightning, fire, earthquake or other external causes; (e) to damage caused by operating the Product outside the permitted or intended uses described by Honeywell; (f) to damage or failure caused by installation or service (including upgrades and expansions) performed by anyone who is not a representative of Honeywell or a Honeywell authorized installer or service provider; (g) to a Product or part that has been modified to alter functionality or capability without the written permission of Honeywell; (h) to Software (as defined below); (i) to any other damage caused by an event or action outside of Honeywell’s control, including, without limitation, Customer’s failure to apply required or recommended updates or patches to any Software or Product; or (h) if any serial number has been removed or defaced.

9.6.6. The System is designed to generate and transmit signal-based outputs solely to supported third-party integrations (e.g., gas shutoff systems, apparatus bay doors, and similar connected equipment).

9.6.7. Customer acknowledges and agrees that the System’s functionality is strictly limited to the initiation and transmission of such signals. The System does not control, monitor, verify, or guarantee the execution, performance, or outcome of any action by third-party systems, devices, or integrations.

9.6.8. USDD by Honeywell warrants and supports only the transmission of signals from the System itself. Any actions taken (or not taken) by third-party systems in response to such signals are outside of USDD by Honeywell's control and responsibility.

9.6.9. USDD by Honeywell shall have no responsibility or liability for:
- The failure, delay, malfunction, or improper operation of any third-party system or device; - Any damages or losses arising from the actions or inactions of third-party integrations; - Any uses of the System beyond its intended signal-transmission function.

9.6.10. All other functions, uses, or integrations not expressly supported by the System are outside the scope of this Agreement and are not warranted or supported in any manner.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 7 of 10 18 10. LIMITATIONS OF LIABILITY. TO THE EXTENT PERMITTED BY LAW, THE LIMITED WARRANTY IN SECTION 9 OF THESE TERMS AND

CONDITIONS AND ANY OTHER REMEDIES SET FORTH ABOVE ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, REMEDIES AND CONDITIONS, WHETHER ORAL OR WRITTEN, STATUTORY, EXPRESS OR IMPLIED. AS PERMITTED BY APPLICABLE LAW,

HONEYWELL SPECIFICALLY DISCLAIMS ANY AND ALL STATUTORY OR IMPLIED WARRANTIES, INCLUDING, WITHOUT LIMITATION,

WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND WARRANTIES AGAINST HIDDEN OR LATENT DEFECTS. If Honeywell cannot lawfully disclaim statutory or implied warranties, then to the extent permitted by law, all such warranties shall be limited in duration to the duration of this express Warranty and to repair or replacement service as determined by Honeywell in its sole discretion. No reseller, agent, or employee is authorized to make any modification, extension, or addition to this Warranty. If any term is held to be illegal or unenforceable, the legality or enforceability of the remaining terms shall not be affected or impaired.

EXCEPT AS PROVIDED IN THE LIMITED WARRANTY IN SECTION 9 OF THESE TERMS AND CONDITIONS, AND TO THE EXTENT

PERMITTED BY LAW, HONEYWELL IS NOT RESPONSIBLE FOR INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL

DAMAGES RESULTING FROM ANY BREACH OF WARRANTY OR CONDITION, OR UNDER ANY OTHER LEGAL THEORY, INCLUDING BUT NOT LIMITED TO LOSS OF USE; LOSS OF REVENUE; LOSS OF THE USE OF MONEY; LOSS OF ANTICIPATED SAVINGS; LOSS OF GOODWILL; LOSS OF REPUTATION; AND LOSS OF, DAMAGE TO OR CORRUPTION OF DATA. HONEYWELL IS NOT RESPONSIBLE FOR

ANY INDIRECT LOSS OR DAMAGE HOWSOEVER CAUSED, INCLUDING THE REPLACEMENT OF EQUIPMENT AND PROPERTY, ANY

COSTS OF RECOVERING PROGRAMMING OR REPRODUCING ANY PROGRAM OR DATA STORED OR USED WITH HONEYWELL PRODUCTS, AND ANY FAILURE TO MAINTAIN THE CONFIDENTIALITY OF DATA STORED ON THE PRODUCT.

ALL PRODUCT CLAIMS ARE LIMITED TO THOSE EXCLUSIVE REMEDIES SET FORTH IN THE LIMITED WARRANTY IN SECTION 9 OF THESE TERMS AND CONDITIONS. HONEYWELL’S AGGREGATE LIABILITY IN CONNECTION WITH THEREWITH SHALL NOT EXCEED THE PURCHASE PRICE OF THE PRODUCTS PAID BY CUSTOMER TO HONEYWELL FOR THE PRODUCTS GIVING RISE TO THE CLAIM.

Honeywell disclaims any representation that it will be able to repair any Hardware under this Warranty or make a product exchange without risk to or loss of the programs or data stored thereon.

11. SERVICE AGREEMENT. The Product being purchased hereunder is not subject to any post-Warranty service agreement or maintenance program unless specifically contracted for between Honeywell and Customer. Honeywell offers a comprehensive post-Warranty Service Agreement at additional cost. Customer should contact Honeywell regarding its Service Agreement and costs associated therewith.

12. SOFTWARE PRODUCTS. All software Products delivered by Honeywell to Customer or for which Honeywell provides access, including, without limitation, Honeywell’s mobile application software and Products with embedded software or firmware (collectively, “Software”) are not sold and are licensed. At all times that Customer is in compliance with the terms of these Terms and Conditions and any other agreement between the parties, Customer shall have a non-exclusive, non-transferable, fully paid license to use the Software, but only in conjunction with the Products provided by Honeywell and Customer’s fire station alerting system (the “License”). The terms of such Software License may be set forth in a separate software license agreement or end user license agreement provided by Honeywell with such Software. In no event shall Customer have any right to (or authorize or allow any third party to) distribute, sell, lend, rent, transfer, or convey the Software; grant any sublicense, lease, or other rights in the Software; decompile, disassemble, reverse engineer, or otherwise attempt to reconstruct, identify, or discover any source code, underlying user interface architecture or techniques, or algorithms of the Software by any means; or take any action that would cause the Software or any portion of it to be placed in the public domain. In the event of a conflict between the terms of any Software license terms provided upon download or purchase a purchase and these Terms and Conditions, the relevant Software license terms shall control solely with respect to such Software.

13. INTELLECTUAL PROPERTY: Customer hereby agrees and acknowledges that Honeywell owns all rights, title, and interest in and to the Intellectual Property (as defined below). Customer agrees to not remove, obscure, or alter Honeywell’s or any third party's copyright notice, trademarks, or other proprietary rights notices affixed to or contained within or accessed in conjunction with or through Honeywell’s Product (as defined below). Nothing herein shall be deemed to give, transfer, or convey to Customer any rights in the Intellectual Property other than the License, as set forth above. For purposes of this Section, "Intellectual Property" means any and all rights of Honeywell related to Honeywell’s Products existing from time to time under patent law, copyright law, trade secret law, trademark law, unfair competition law, and any and all other proprietary rights, and any and all derivative works, work product, applications, renewals, extensions and restorations thereof, now or hereafter in force and effective worldwide.

14. FIRST ARRIVING MOBILE APP. If Customer wishes to use its First Arriving Mobile App (“First Arriving”) with the System being acquired from Honeywell, Customer agrees to the following:

14.1 Customer acknowledges that it bears full responsibility for complying with applicable law and regulations, including all privacy requirements, and for providing any required notices and obtaining all required consents in order for Honeywell to transmit alert to First Arriving. Customer also acknowledges that Honeywell bears no responsibility for any service failure by First Arriving, nor is Honeywell responsible for supporting First Arriving’s services or platform. Honeywell is offering to transmit alerts that are transmitted through its Honeywell service to First Arriving merely as a courtesy to Customer.

14.2 IN NO EVENT SHALL HONEYWELL BE LIABLE TO CUSTOMER FOR ANY CLAIMS, WHETHER ARISING FROM ANY INDEMNIFICATION

OBLIGATION HONEYWELL MAY HAVE OR THAT ARISE FROM A BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE),

OPERATION OF LAW, OR OTHERWISE, AND EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF THE LIABILITY OR THE

LIABILITY IS OTHEWISE FORESEEABLE, FOR ANY LOST PROFITS OR REVENUE, SPECIAL, INCIDENTAL, INDEIRECT, CONSEQUETIAL,

EXEMPLARY, OR PUNITIVE DAMAGES OF ANY KIND (INCLUDING ALL DAMAGES DUE TO BUSINESS INTERRUPTION, LOSS OR CORRUPTION OF DATA, OR LOST USE OF ANY PROPERTY OR CAPITAL) THAT RELATE TO OR ARISE OUT OF HONEYWELL’S TRANSMISSION OF ALERTS TO FIRST ARRIVING. FURTHER HONEYWELL’S AGGREGATE LIABILITY IN CONNECTION WITH ITS

TRANSMISSION OF ALERTS TO FIRST ARRIVING WILL BE LIMITED TO THE GREATER OF THE AMOUNT PAID BY CUSTOMER TO HONEYWELL IN ORDER FOR HONEYWELL TO TRANSMIT ALERTS TO FIRST ARRIVING OR $100. 15 REMOTE ACCESS TO THE SYSTEM.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 8 of 10 19 15.1 Remote Access. Honeywell requires remote network access to the Customer’s Products through Secure Shell (SSH) to perform implementation and support tasks under this Agreement. To enable remote network access, the Customer will provide Honeywell support personnel VPN or similar remote network access to the Products for Honeywell support personnel (“Customer Support”) to effectively troubleshoot critical or complex problems and to expedite resolution of such issues. Remote network access is also used to install core software upgrades and customized software. Honeywell will only access Customer’s Products with the knowledge and consent of Customer. Honeywell will not access any other systems or data.

15.2. Alternative to Network Access. If the Customer elects not to provide remote network access to the Products, then Honeywell may not be able to perform some support functions. Customers that elect not to routinely provide network access may temporarily reinstate this access to allow Honeywell to perform the above services. The following services will not be performed without this access: Product software upgrades; Product software customization; Network troubleshooting assistance including packet capture and network monitoring on Honeywell devices; Detailed log analysis; Bulk updates to certain Product database tables; Troubleshooting that requires low-level system access or large file transfer.

15.3. Timely Access. Customers much ensure that remote access is available prior to notifying Honeywell of a support request. In the event that the Customer is unable to provide remote access, Honeywell will not be required to provide support outside those tasks that do not require remote access, and any corresponding resolution response times will not apply.

15.4. Physical Security Tokens. Honeywell has multiple software engineers that provide after-hours support and these engineers do not typically take security tokens from the Honeywell office. If the customer requires the use of physical security tokens, this may delay after hours service.

16. GOVERNING LAW. This proposal and any contract or agreement resulting therefrom will be governed by and construed according to the laws of the State of Arizona without regard to its conflicts of law principles.

17. DISPUTE RESOLUTION/ARBITRATION. Before either Honeywell or Customer initiate any dispute resolution process related to the Agreement, they must schedule an executive resolution conference to be held within thirty (30) days of receipt of the other party’s written request. The conference must be attended by at least one executive from each party. At the conference, each party will present its view of the dispute in detail and the executives will enter into good faith negotiations in an attempt to resolve the dispute. If the dispute is not resolved within fifteen (15) days of the end of the conference or if one party refuses to attend the executive resolution conference, then Honeywell and Customer further agree that any remaining dispute between them arising out of or relating to this Agreement will be settled by litigation with jurisdiction being Maricopa County, Arizona.

18. FORCE MAJEURE. Except for Customer’s duty to pay sums due hereunder, neither party will be liable to the other for any failure to meet its obligations due to any Force Majeure Event. As used herein, a “Force Majeure Event” is one that is beyond the reasonable control of the non-performing party and may include, but is not limited to: (a) delays or refusals to grant an export license or the suspension or revocation thereof, (b) embargoes, blockages, seizure or freeze of assets, or any other acts of any government that would limit a party’s ability to perform the Contract, (c) fires, earthquakes, floods, tropical storms, hurricanes, tornadoes, severe weather conditions, or any other acts of God, (d) quarantines, pandemics, or regional medical crises, (e) labor strikes, lockouts, or pandemic worker shortages, (f) riots, strife, insurrection, civil disobedience, landowner disturbances, armed conflict, terrorism or war, declared or not (or impending threat of any of the foregoing, if such threat might reasonably be expected to cause injury to people or property), and (g) shortages or inability to obtain materials or components. The party unable to fulfill its obligations due to Force Majeure will promptly (i) Notify the other in writing of the reasons for its failure to fulfill its obligations and the effect of such failure; and (ii) Use all reasonable efforts to avoid or remove the cause and perform its obligations.

If a Force Majeure Event results in a delay, then the date of performance will be extended by the period of time that the non-performing party is actually delayed or for any other period as the parties may agree in writing. In the event that a Force Majeure Event is ongoing for a period of time which is sixty (60) days or longer, Honeywell may provide notice to Customer that it is cancelling its Order.

19. ACCEPTANCE OF TERMS. This proposal shall become a binding contract between the Customer and Honeywell when accepted in writing by the Customer. Without limiting the foregoing, issuance by Customer of a purchase order to Honeywell for any of the goods or services herein described shall constitute acceptance.

19.1 CUSTOMER CAUSED DELAYS. If the Products and/or Services purchased by Customer hereunder are part of a new system or station implementation project (the “Project”), Honeywell and Customer shall mutually develop a project schedule or timetable (“Project Schedule”). Each party shall use commercially reasonable efforts to perform its obligations in accordance with the Project Schedule, subject to adjustments for reasonable changes or unforeseen events.

Honeywell shall not be liable for any delay, increased cost, or failure to perform to the extent caused by: (i) delays in obtaining parts, materials, equipment, services, or software from any Customer designated supplier; (ii) Customer’s failure to timely provide required information, approvals, access, or resources; or (iii) any other act, omission, or circumstance caused by or within the reasonable control of Customer (each, a “Customer Caused Delay”).

If a Customer Caused Delay occurs, Honeywell shall be entitled to equitable adjustments to the price, delivery dates, milestones, and any other affected terms to account for increased costs, delays, or other adverse impacts incurred by Honeywell. Such adjustments may include, without limitation: (a) increases in material or component costs required to complete the Project; (b) costs associated with buy out or long lead items, including additional costs due to currency exchange rate fluctuations; (c) increases in labor, mobilization, or installation costs; and (d) costs associated with pre building, warehousing, storage, handling, insurance, or preservation of equipment, at Honeywell’s discretion.

If performance of the Project is delayed for a cumulative period exceeding six (6) months beyond the scheduled Project completion date due to Customer Caused Delays, Honeywell may, upon written notice to Customer, (i) suspend performance of the affected Products and/or Services until such delays are remedied, (ii) invoice Customer for reasonable costs incurred as a result of the suspension, and/or (iii) require renegotiation of pricing, schedule, and other affected terms as a condition to resuming performance.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 9 of 10 20 Further, if either (a) the Project is not completed within six (6) months of the scheduled Project completion date due to Customer Caused Delays, or (b) Honeywell and Customer have not mutually agreed upon the required adjustments to price, delivery dates, and other affected terms within sixty (60) days following the expiration or continuation of such delays, Honeywell may, upon written notice, terminate or cancel any affected outstanding Customer Orders, in whole or in part, without liability. Such termination shall be without prejudice to Honeywell’s right to recover amounts due for Products delivered, Services performed, and any reasonable costs incurred as a result of the Customer Caused Delay, including demobilization, storage, and restart costs.

20. SEVERABILITY. In the event any provision or portion of a provision herein is determined to be illegal, invalid, or unenforceable, the validity and enforceability of the remaining provisions shall not be affected and, in lieu of such provision, a provision as similar in terms as may be legal, valid, and enforceable shall be added hereto

21. WAIVER. The failure of either party to insist upon strict performance of any provision of these Terms and Conditions, or to exercise any right provided for herein, shall not be deemed to be a waiver for the future of such provision or right, and no waiver of any provision or right shall affect the right of the waiving party to enforce any provision or right herein.

22. NO JOINT VENTURE. The parties acknowledge that they are independent entities and nothing contained in these Terms and Conditions shall be construed to constitute either party hereto as the partner, joint venturer, employee, agent, servant, franchisee, or other representative of the other party hereto, and neither party has the right to bind or obligate the other, except as otherwise provided herein.

Furthermore, nothing contained in these Terms and Conditions shall be construed to constitute Customer as an exclusive purchaser of the Products in any respect.

THIS QUOTE SUBJECT TO REVIEW FOR ERRORS AND OMISSIONS.

PROPRIETARY and CONFIDENTIAL STANDARD Ts&Cs Page 10 of 10 21 Staff Report
City Council
Item No. 5.B
Meeting Date: October 14, 2026
From: Justin Gardiner, Code Compliance Manager
Title: First Reading of an Ordinance Amending Chapters 3.48 and 5.88 Regarding Cannabis Taxes, Licensing, AB 1775, and Odor Control Compliance
RECOMMENDATION:

Staff recommends that the City Council consider the proposed changes, waive further reading, read by title only, and introduce for first reading Ordinance No. XXX amending Chapter 3.48 (Cannabis Tax) and Chapter 5.88 (Cannabis Businesses) of the Cathedral City Municipal Code.

The ordinance would implement the locally authorized activities under Assembly Bill 1775 (AB 1775), update cannabis tax administration and licensing requirements, incorporate Cannabis Task Force input, and amend Section 5.88.055 to require the additional odor control equipment to be installed and operational within six months of approval of the odor control plan, and no later than March 31, 2027. Following introduction, the ordinance would return for second reading and adoption on October 28, 2026.

BACKGROUND:

AB 1775 amended California Business and Professions Code Section 26200 to expand what a local jurisdiction may authorize for licensed cannabis retailers and microbusinesses that already have authority to operate onsite cannabis consumption areas. AB 1775 does not require a city to allow these activities. Instead, it gives each jurisdiction the ability to allow, restrict, condition, or prohibit the expanded activities through a local ordinance.

Under AB 1775, a local jurisdiction may authorize a licensed cannabis retailer or microbusiness with onsite consumption to allow the preparation or sale of non-cannabis food or beverage products in the area where cannabis consumption is allowed. The law also authorizes local jurisdictions to allow live musical performances or other ticketed or nonticketed events on the premises.

Cathedral City regulates cannabis businesses and approved onsite consumption lounges through Chapters 5.88 and 9.108 of the Municipal Code. Local operators and patrons have expressed interest in food and beverage options and indoor entertainment, while remaining 1 subject to State cannabis requirements and local oversight.

Staff presented the proposed ordinance revisions to the City Council during a study session on July 22, 2026 and to the Cannabis Task Force on August 20, 2026 and provided input.

DISCUSSION:

The ordinance restates Chapters 3.48 and 5.88 in full. Separate redlines of each chapter, showing every change to the current code, are attached as Attachments 2 and 3. In the redlines, deletions appear in red strikethrough text and additions appear in blue doubleunderlined text.

AB 1775 and Indoor Consumption Lounges
Proposed Section 5.88.070.K would allow a licensed dispensary with an approved indoor consumption area to prepare or sell non-cannabis food and beverages, sell prepackaged non-cannabis food and beverages, host live musical or other performances, and sell tickets for those performances. The dispensary definition would include a State-licensed retailer or a microbusiness authorized to engage in retail sales. The operator or customers could also bring in or receive non-cannabis, non-alcoholic food and beverages from a restaurant or delivery service, subject to applicable requirements.

These activities would be limited to the approved indoor consumption area. The ordinance would not create a blanket exemption from otherwise required permits. A lounge would remain responsible for complying with its existing approvals and obtaining any additional special event, temporary use, State, or other approval required for the proposed activity.

The proposed standards include:

Restricting access to the consumption area to persons 21 years of age or older, posting the required entrance warning, and preventing consumption from being visible from public places or areas without age restrictions.
• Prohibiting alcohol and tobacco sales or consumption and preventing non-cannabis food and beverages from being contaminated by or commingled with cannabis products.
• Maintaining required ventilation, filtration, security, fire and life safety measures, occupancy limits, approved hours, parking, and noise compliance. • Allowing employees to wear protective respiratory masks at their discretion without penalty, requiring employers to pay for the masks, providing written secondhandsmoke guidance at hiring, and addressing exposure in required injury and illness prevention programs.
• Prohibiting loitering and suspending the newly authorized activities during a suspension of the State retail or microbusiness license.

Staff does not recommend using square footage alone as the determining factor for whether 2 a lounge may host ticketed or non-ticketed events. While square footage is one factor that may be considered, it does not by itself determine whether an event can be conducted safely or appropriately. Two businesses with the same square footage may have very different operating capacities depending on the approved floor plan, occupant load, number and location of exits, seating layout, fire/life safety systems, accessibility, ventilation, security plan, and how the space is actually being used during the event.

Occupancy, fire/life safety, building capacity, security, and operational compliance are appropriate and enforceable tools for determining whether an event may occur safely as these standards are more directly tied to the actual safety and operational impacts of an event.

Food and Beverage Service
Food preparation and service would be subject to the California Retail Food Code, Riverside County Environmental Health requirements, and applicable City approvals. Onsite food preparation could not begin until the required approvals, permits, or authorizations have been obtained. Smoking or vaporizing would be prohibited in food preparation, food storage, and warewashing areas, and non-cannabis food and beverages would have to be stored and displayed separately from cannabis products.

The authorization would not extend to industrial hemp or products containing industrial hemp. An existing approved consumption lounge could continue its previously authorized onsite cannabis consumption, but could not begin the new food, beverage, carry-in or delivery, or live performance activities until it satisfies the applicable requirements of Section

5.88.070.K.

Outdoor Areas and the Meaning of an Event
The ordinance would not authorize outdoor cannabis consumption or extend the new food and performance authorization into parking lots, patios, sidewalks, streets, alleys, common areas, or adjacent property. An enclosed or fenced patio remains an outdoor area for purposes of the proposed indoor limitation.

Cannabis Task Force participants asked what constitutes an “event,” including whether a small activity on an outdoor patio requires a special use permit. Staff does not recommend adding a general event definition to Chapter 3.48 or Chapter 5.88 through this amendment.

Whether a separate permit is required will depend on the proposed activity and the business’s existing approvals.

The separate process for State-licensed temporary cannabis events under Section

5.88.035.D would remain in place. It is distinct from the indoor lounge authorization under AB 1775. Approval of an ordinary outdoor activity would not, by itself, authorize outdoor cannabis consumption.

Finance and Cannabis Tax Compliance Amendments
The Chapter 3.48 amendments would align cannabis tax administration with the licensing provisions of Chapter 5.88. Cannabis businesses would continue to be required to file returns even when no tax is owed, remit the full tax due, maintain records, and cooperate with authorized audits. Tax delinquency and audit findings could be shared with the local 3 licensing authority for licensing and enforcement purposes.

The proposed amendments would also:
• Clarify the gross receipts definition, including compensation retained by a distributor for subdivision, repackaging, or redistribution services. Existing exclusions would remain.
• Remove the automatic annual Consumer Price Index adjustment in Section 3.48.010.

The stated maximum tax amounts and the Council’s authority to set lower rates under Section 3.48.040 would remain.
• Specify interest of one-half percent per month, or fraction thereof, on the unpaid tax and penalty balance until paid, in addition to the existing 25 percent delinquency penalty.
• Make tax compliance a continuing condition of licensure and provide for licensing enforcement when required cannabis taxes are not paid.
• Require full payment of cannabis taxes, penalties, and interest for an ownership change, and require taxes associated with all of a licensee’s City cannabis licenses to be current before renewal of any one license.
• Clarify that a business with a tax payment agreement is not considered current for renewal until the agreement is fully paid. The authority to enter into payment agreements under Section 3.48.140 would remain available for collection purposes.

Tax Due Dates on Weekends and Federal Holidays
Section 3.48.080.A would expressly extend both the return filing deadline and the payment deadline to the next business day when the regular due date falls on a Saturday, Sunday, or federal holiday. A return filed and taxes paid by the extended deadline would be timely, with no penalty or interest attributable solely to the extension. This wording aligns the due date with the delinquency and interest provisions, rather than addressing only the penalty.

This ordinance applies to the deadline change to cannabis taxes and does not amend TOT or other tax chapters.

Licensing Ownership Management and Background Checks
The proposed owner definition would address aggregate ownership interests of 20 percent or more and individuals who manage, direct, or control a cannabis business, including relevant officers, managing members, general partners, and persons controlling a trust. A separate manager definition would cover individuals with day-to-day operational control, whether employed by the business or acting in another capacity. Each owner and manager would be required to provide fingerprints and information needed for a background check.

Applications and renewals would be submitted online. Applicants would acknowledge their cannabis tax obligations and the continuing duty to comply with Chapter 3.48. Existing worker background-check and identification-card requirements would continue. 4 Good Moral Character and Prior Licensing Actions
The City Attorney’s Office proposed good moral character standards that add specified misdemeanor convictions to the existing felony categories involving fraud, deceit, embezzlement, and specified controlled-substance conduct involving minors.

The separate provision addressing a prior cannabis license revocation, suspension, or denial for cause would allow the City to determine good moral character on a case-by-case basis.

A prior licensing action would be relevant to review without automatically barring every future application. Withdrawal or surrender while a revocation or suspension proceeding is pending would continue to count as a revocation for cause. This discretion does not waive other requirements or guarantee approval of a later application.

City Manager and Designee Authority
The definition of City Manager would continue to include the City Manager’s duly authorized designee. The Cannabis Task Force shared a concern regarding delegation is acknowledged, but no substantive restriction on that existing delegation language is proposed. A designee acts within the authority delegated for the applicable function; the definition does not itself confer the full office or all powers of the City Manager on another employee.

Actual Operations and Other Operational Updates
For a first dispensary renewal, the proposed standards would require evidence of actual operations during the 30 days before expiration. For later renewals, the required period would be the previous 12 consecutive months. Tax returns would be necessary evidence but would not, by themselves, prove sustained operations. The City could request point-ofsale records, posted hours, and staffing schedules; isolated or token sales made primarily to generate a qualifying return would not satisfy the requirement. The existing ability to consider unique or extraordinary circumstances would remain.

Dispensaries would be required to post and comply with their operating hours, maintain stocked and commercially operable retail displays with current pricing, and keep current public information about the business. Additional amendments address licensee responsibility for acts within the scope of its representatives’ work, applicable cultivation wastewater requirements, and access to tax and business records.

The proposed revision would remove the separate requirement that every cultivation and manufacturing business install and maintain onsite meteorological sensors. Odor control plans, equipment maintenance, annual certification, and enforcement requirements would remain applicable. Any separate requirement imposed through an existing permit or condition of approval would require its own review.

Odor Control Equipment Compliance Deadline
Section 5.88.055.H currently requires licenses initially issued on or before January 22, 2025 to obtain approval of an odor control plan as a condition of renewal beginning January 1, 2026. It also requires additional odor control equipment to be installed and operational within six months of the renewal application date and no later than December 31, 2026. 5 Recently, staff has gotten feedback from some cannabis cultivators that they were having difficulty meeting the new timelines to obtain an odor control permit for a variety of reasons including identifying qualified professionals to review their odor control systems, timeliness to get plans reviewed and corrections made, and equipment delivery timelines. Feedback was provided by business owners who have been timely with their submittal of their permit applications.

Staff proposes to retain the plan approval and annual certification requirements, while changing the equipment installation period to six months from approval of the odor control plan and extending the outside deadline to March 31, 2027. The extension provides existing cannabis businesses additional time to install and activate the required odor control equipment following approval of their plans, while maintaining a fixed compliance deadline.

Starting the period at plan approval ties installation to the approved equipment and specifications.

The revised subsection would read as follows:

H. Licenses initially issued on or before January 22, 2025, shall obtain approval of an odor control plan conforming with the requirements of this chapter and Chapter 9.108 of the Cathedral City Municipal Code as a requirement of local license renewal beginning on January 1, 2026. Any additionally required odor control equipment to meet the requirements of this chapter shall be installed and operational within six months of the approval of an odor control plan and no later than March 31, 2027.

Thereafter, the renewal of any local license shall annually certify the performance of its odor control plan to the requirements of this chapter and Chapter 9.108 of the Cathedral City Municipal Code.

Both limits would apply: The equipment must be operational within six months of plan approval and by March 31, 2027, whichever occurs first. Approval less than six months before March 31, 2027 would not provide a full six months beyond that date. The amendment does not postpone required plan approval, suspend odor nuisance enforcement, or change the pre-operation equipment requirement for businesses established after January 22, 2025.

Section 5.88.125.H would continue to direct eligible existing businesses to Section

5.88.055.H.

Appeals Enforcement and Code Cleanup
Section 5.88.060 would clarify City Council appeals of denied or conditionally approved initial licenses, nonrenewals, and denied changes requested under Section 5.88.050. Worker identification-card denial and nonrenewal appeals would continue through the same process. Proceedings to suspend, modify, or revoke a local license for good cause would follow Chapter 13.150. The separate odor control plan appeal process in Section 5.88.125.E would remain unchanged.

The ordinance would also update Department of Cannabis Control terminology, State regulatory references, the State track-and-trace software definition, and Public Records Act references. It would also correct drafting and cross-reference errors, clarify tax record inspection, authorize civil or equitable abatement actions, and specify that each day a violation continues constitutes a separate offense. 6
Code Compliance and Enforcement
Code Compliance now has a dedicated Code Compliance Officer assigned to cannabis inspections and enforcement. The officer will support implementation through routine inspections, compliance monitoring, and investigation of complaints and violations. The City would retain authority to address excessive occupancy, unauthorized activities or expansion, outdoor consumption not lawfully authorized, alcohol or tobacco violations, food handling violations, smoke and odor impacts, noise, loitering, inadequate security, and tax noncompliance. Available remedies include notices, citations, conditions of approval, agency referrals, and license suspension or revocation when warranted.

CEQA:

Staff recommends that the City Council find the ordinance exempt from the California Environmental Quality Act (CEQA) on the following grounds. Each ground is independent.

The Chapter 3.48 amendments change how the City administers and collects an existing tax. The licensing amendments change application, renewal, background check, appeal, and enforcement procedures. These are government fiscal and administrative activities that commit the City to no physical project. They are not a "project" under State CEQA Guidelines Section 15378(b)(4) and (b)(5).

The ordinance allows Food, beverage, and performance activities only within consumption areas the City has already approved inside existing buildings. It does not authorize new construction, an expanded licensed premises, or outdoor consumption. Each activity remains subject to existing occupancy, fire, building, noise, security, ventilation, and odor requirements, and onsite food preparation requires County Environmental Health approval.

Any resulting change in use is negligible. The activities fall within the Class 1 exemption for existing facilities under Guidelines Section 15301.

The ordinance changes when existing businesses must finish installing additional odor control equipment. Installation must occur within six months of odor control plan approval, and no later than March 31, 2027. Odor control plans, performance standards, maintenance, annual certification, and nuisance enforcement remain in force throughout. Removing the meteorological sensor requirement eliminates a monitoring device, not a control. Neither change alters existing physical conditions.

For these reasons, the City Council can see with certainty that there is no possibility the ordinance may have a significant effect on the environment. The ordinance is therefore also exempt under Guidelines Section 15061(b)(3).

FISCAL IMPACT:

No fiscal impact associated with these changes/updates.

FIVE-YEAR STRATEGIC PLAN:

This item is consistent with Goal F of the City Council Goals and Objectives (Embracing, 7 Inclusive Community) by supporting local business retention, responsible economic development, and the continued regulation of an existing permitted industry within Cathedral City.

ATTACHMENTS:

1. Draft Ordinance

2. Chapter 3.48 (Cannabis Tax), redlined

3. Chapter 5.88 (Cannabis Businesses), redlined
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Chapter 5.88 CANNABIS BUSINESSES
§ 5.88.010 Purpose and intent.
§ 5.88.015 Findings.
§ 5.88.020 Relationship to other laws.
§ 5.88.025 Definitions.
§ 5.88.030 Local license in addition to business license or other permit. § 5.88.035 Local license required.
§ 5.88.040 Local license application process.
§ 5.88.045 Conditions of approval, administrative rules. § 5.88.050 Changes and modifications of local licenses. § 5.88.055 Renewal of a local license.
§ 5.88.060 Appeal of decision on local license.
§ 5.88.065 Cannabis business operational requirements.
§ 5.88.070 Dispensary operational requirements.
§ 5.88.075 Manufacturing site operational requirements. § 5.88.080 Cultivation operational requirements.
§ 5.88.085 Distribution operational requirements.
§ 5.88.090 Testing laboratory operational requirements. § 5.88.095 Packaging and labeling.
§ 5.88.100 Visitor requirements.
§ 5.88.105 Limitations on city's liability.
§ 5.88.110 Inspections.
§ 5.88.115 Enforcement.
§ 5.88.120 Civil fines.
§ 5.88.125 Odor control plan.
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§ 5.88.010 Purpose and intent.

A. This chapter shall provides for the regulation and licensing of medicinal and adult-use cannabis businesses throughout the city in conformance with applicable Sstate and local laws and regulations pertaining to medicinal and adult-use cannabis.

B. The city council finds that it is necessary for Cathedral City to adopt local licensing standards for medicinal and adult-use cannabis businesses for the purpose of controlling and regulating the cultivation, distribution, transport, storage, manufacturing, processing, and sale of medicinal cannabis and medicinal cannabis products to qualified patients, and commercial cannabis activity for non-medical uses by adult-use cannabis and adult-use cannabis products to adults twenty-one years of age and over.

C. The purpose of this chapter is to regulate all commercial cannabis activity in Cathedral City, as defined in the MAUCRSA, to the extent authorized by Sstate law and in a manner designed to minimize negative impacts on the city and neighboring uses, and promote the health, safety, morals, and general welfare of residents and businesses within the city. § 5.88.015 Findings.

The city council finds and determines that local licensing standards pertaining to cannabis business activities are necessary to protect the public health and safety. The city council further finds that public health and safety is best served by the adoption of the ordinance codified in this chapter.
§ 5.88.020 Relationship to other laws.

A. Except as otherwise specifically provided herein, this chapter incorporates the requirements and procedures set forth in the MAUCRSA. In the event of any conflict between the provisions of this chapter and the provisions of the MAUCRSA or any other applicable state or local law, the more restrictive provision shall control.

B. Except as expressly stated herein, cannabis businesses must comply with all other city codes and regulations. Nothing in this chapter shall be construed as permitting a cannabis business to operate at any time in a manner that is in violation of all any other applicable state and local laws.
§ 5.88.025 Definitions.

Unless otherwise defined herein, the terms in this chapter shall havehave the same meaning as set forth in the MAUCRSA and any rules promulgated pursuant thereto. In addition, the following terms shall beare defined as follows:
"Cannabis business" means any person engaged in commercial cannabis activity. 10 4910-0181-5767 v1
"Cannabis tax" means any tax, penalty, interest, or other amount due under Chapter 3.48 of this code in connection with commercial cannabis activity.
"Certificate of accreditation" means a certificate issued by an accrediting body to a licensed testing laboratory, entity, or site to be registered in the state. "City" means Cathedral City, California.
"City manager" shall means the city manager of the city or the city manager’s duly authorized designee.
"Commercial cannabis activity" means any activity, recreational or medicinal, including the cultivation, possession, manufacturing, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and/or cannabis products as provided in this chapter.
"Community development director" shall means the community development director of the city or duly authorized designee.
"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
"Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Dispensary" means a cannabis business that engages in the retail sale and delivery of cannabis or cannabis products to customers. A dispensary, as that term is used in this code, is includes a "retailer" and a "microbusiness" authorized to engage in retail sale under the MAUCRSA. "Distribution" means the procurement, wholesale, and transport of cannabis and cannabis products between licensees, and may include the storage of packaged goods, coordination of compliance testing, packaging, re-packaging, labeling, and re-labeling, and preparation of prerolls using previously processed plant material. "Distributor" means a cannabis business that engages in the distribution and transportation of cannabis and cannabis products to other cannabis businesses. "Good cause" for purposes of denying an initial local license issuance, for suspending or revoking a local license, or for denying a local license renewal, means:

1. The applicant or licensee has been cited for violating any of the terms, conditions or provisions of this chapter, of state law, of any regulations and rules promulgated pursuant to state law, any applicable local rules and regulations, or any special terms or conditions placed upon its conditional use permit, state license, or local license;

2. The premises has been or is proposed to be operated in a manner that adversely affects the public health, safety or welfare or the safety of the immediate neighborhood in which the establishment is located;
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3. The applicant or licensee has knowingly made false statements, misrepresentations or material omissions on a submittedn application form, renewal form, or any other document submitted to the city;

4. The criminal history of the applicant's or licensee'san owner(s) or manager of the applicant or licensee indicates that one or more of the owner(s) or manager lacks good moral character;

5. An owner of the applicant or licensee is a licensed physician providing physician's recommendation to qualified patients for medicinal cannabis;

6. The applicant, or licensees, or any owner or manager of the applicant or licensee, is a person who is prohibited from holding the license under this chapter;

7. The premises proposed to be licensed or the licensed premises is located on land that is owned by the United States and held in trust for any federally-recognized Indian tribe or any member of the tribe, or that is subject to a restriction on alienation imposed by the United States;

8. For renewals, suspensions and revocations, the licensee has allowed a person whose criminal history indicates that person is not of good moral character to work within the premises as an employee, independent contractor, or volunteer; or

9. For renewals, suspensions and revocations, the licensee fails to allow inspection of the security recordings, activity logs, or business records of the licensed premises by city officials; or.

10. For renewals, suspensions, and revocations, the licensee is considered non-compliant with Chapter 3.48 of this code due to failure to remit cannabis business taxes owed from dispensary, cultivation, manufacturing, or any other cannabis business operations. "Good moral character." means having a personal history that demonstrates the propensity to serve the public in the licensed area in a manner that reflects openness, honesty, fairness, and respect for the rights of others and for the law. In determining good moral character, the following standards shall will apply:

1. A person who has been convicted of any of the following offenses shall not beis not considered to be of good moral character:
a. A violent felony, as specified in Penal Code Section 667.5(c); b. A serious felony, as specified in Penal Code Section 1192.7(c); c. A felony or misdemeanor conviction involving fraud, deceit, or embezzlement; 12 4910-0181-5767 v1
d. A felony or misdemeanor conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor;
e. A felony or misdemeanor conviction for selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor; f. A felony conviction for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code.
g. A misdemeanor conviction described in subparagraphs c, d, or e disqualifies a person under this paragraph only if the conviction, or the person’s release from incarceration for that conviction, whichever is later, occurred within seven years before the city receives the application under review, including a renewal application. An older misdemeanor conviction described in those subparagraphs does not disqualify the person under this paragraph.

Surrendering a license during revocation proceedings counts as a revocation. In deciding, the city must consider: a. the seriousness of the conduct; b. the person's role in it; c. whether the problem has been corrected; and d. whether the agency later allowed the person to reapply.

32. Except as provided in paragraph 1 of this definition, and notwithstanding Chapter 2 of Division 1.5 of the California Business and Professions Code, a prior conviction where the sentence, including any term of probation, incarceration, or supervised release is completed for possession of, possession for sale, sale, manufacture, transportation, or cultivation of cannabis shall not be the sole ground for a determination that a person lacks good moral character.

43. An owner or manager of a licensee who is convicted of any controlled substance felony subsequent to issuance of a local license shall be deemed to lack good moral character.
"Identification card" or "ID card" means a valid identification card issued pursuant to Section 11362.7 et seq., of the California Health and Safety Code. "Identification card holder" or "ID card holder" means an individual who is a qualified patient who has applied for and received a valid ID card pursuant to Article 2.5 of Chapter 6 of Division 10 of the California Health and Safety Code.
"Licensed premises" means a premises for which a local license has been issued pursuant to this chapter.
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"Licensee" means a person who has been issued a local license pursuant to this chapter. "Limited access area" means a building, room or other area that is part of the licensed premises where cannabis is grown, cultivated, stored, weighed, displayed, packaged, or sold to other cannabis businesses with limited access to only authorized personnel. "Local license" means a license granted by the local licensing authority, pursuant to this chapter. "Local licensing authority" means the city manager.
"Manager" means an individual who has day-to-day operational control over a commercial cannabis business or over commercial cannabis activity conducted on the licensed premises, whether that individual acts as an employee, an independent contractor, or in another capacity. "Manufacturing" means a cannabis operation that engages in extraction and/ or infusion processes, including processing, preparing, holding, storing, packaging, or labeling of cannabis products. "Manufacturing" also includes any processing, preparing, holding, or storing of components and ingredients. Manufacturing operations may involve the use of chemical solvents, heating, mixing, or other processes.
"Medicinal and Adult-Use Cannabis Regulation and Safety Act" or "MAUCRSA" means Division 10 of the California Business and Professions Code. "Medicinal cannabis patient" means both a qualified patient without an identification card and an ID card holder.
"Non-supervisorial employee" means an individual employed by the licensee that does not have the authority to hire, fire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment. For the purposes of this definition, an individual shall not be considered an employee of a licensee if the individual is working for the licensee pursuant to a written agreement that expressly states the individual is an independent contractor. "Odor control equipment" means any equipment utilized to counteract the distinguishable odor of the cannabis plant.
"Odor control plan" means a written plan prepared by a licensed professional engineer or certified industrial hygienist that describes the odor emitting activities or processes specific to a cannabis business together with a description of the methods used for odor control to ensure that odors are not detected off site.
"Owner" means any of the following:
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1. A person with an aggregate ownership interest of twenty 20 percent or more in the person cannabis business applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. For purposes of this section, “aggregate” means the total ownership interest held by a single person through any combination of individually held ownership interests in a commercial cannabis business and ownership interests in an entity that has an ownership interest in the same commercial cannabis business. For example, a person who owns 10 percent of the stock in a commercial cannabis business as an individual shareholder and 100 percent of the stock in an entity that owns 10 percent of the stock in the same commercial cannabis business has a 20 percent aggregate ownership interest in the commercial cannabis business.

2. An individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited toThe chief executive officer of a nonprofit or other entity:.
a. A member of the board of directors of a nonprofit.
b. A general partner of a commercial cannabis business that is organized as a partnership.
c. A non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company. d. The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.
e. The chief executive officer, president or their equivalent, or an officer, director, vice president, general manager or their equivalent.

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 a cannabis facility on behalf of the owner of the license. "Physician," as used in this chapter, shall means an individual who possesses a license in good standing to practice medicine or osteopathy from the state of California. "Primary caregiver" shall havehas the meaning set forth in Section 11362.7(d) of the California Health and Safety Code.
"Qualified patient" shall havehas the meaning set forth in Section 11362.7(f) of the California Health and Safety Code.
"Seed to sale software" means METRC, the statewide track and trace system that the Department of Cannabis Control has designated under Business and Professions Code Section 26067 to record the movement of cannabis and cannabis products from cultivation through sale using the 15 4910-0181-5767 v1
unique identifiers issued under Business and Professions Code Section 26069the track and trace inventory control system established pursuant to Section 26067 of the California Business and Professions Code that utilizes a unique identifier pursuant to Section 26069 of the California Business and Professions Code and tracks transfers of cannabis from seed through sale. Until such a time that the state of California implements Section 26067 of the California Business and Professions Code, the "seed to sale software" shall refer to the third-party tracking software required by Section 5.88.065(P) of this chapter.
"State law(s)" shall means and includes California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.85 (Medicinal Marijuana Program Act); the MAUCRSA, and all other applicable laws and regulations of the state of California.
"State license" means a state license issued under MAUCRSA, and includes both an A-license and an M-license, as well as a testing laboratory license. "State licensing authority" shall means the state agency responsible for the issuance, renewal, or reinstatement of a state license, or the state agency authorized to take disciplinary action against a state licensee.
"Tax return" means any return, report, or filing required pursuant to Chapter 3.48 of this code that is submitted to the city for the purpose of reporting and remitting cannabis business taxes. A “tax return” includes documentation of gross receipts and taxable activity from cannabis dispensary, cultivation, or manufacturing operations, and is used to determine compliance with the cannabis tax obligations imposed by that chapter.
"Testing laboratory" means a facility, laboratory, entity, or site that: (i) offers or performs tests of cannabis or cannabis products; (ii) offers no service other than such tests; (iii) sells no products, excepting only testing supplies and materials; (iv) is accredited by any necessary accrediting body that is independent from all other persons involved in the cannabis industry in the state; and (v) is registered with any necessary state agency required by law. § 5.88.030 Local license in addition to business license or other permit.

The local license required by this chapter shall be in addition and supplemental to any other business license or any permit required by any ordinance of the city. § 5.88.035 Local license required.

A. It is unlawful to operate any cannabis business in Cathedral City without first having obtained a local license under this chapter. Notwithstanding the foregoing, a temporary cannabis event organizer and cannabis businesses participating in a temporary cannabis event put on by a temporary cannabis event organizer are not required to obtain a license under this chapter provided that the organizer and participants comply with subsection D below. 16 4910-0181-5767 v1
B. It is unlawful for a cannabis business to operate in the city unless it has been granted the appropriate temporary or permanent state license(s) for its commercial cannabis activities. If the state denies the application for a temporary or permanent license(s) for any reason, the cannabis business must cease operations until such time as it obtains the appropriate temporary or permanent state license(s).

C. The city may grant a local license prior tobefore the applicant having has obtained a state license. A cannabis business must possess the requisite state and local licenses prior tobefore receiving a certificate of occupancy from the city.

D. The city may permit temporary cannabis events by granting the applicant a special use permit for the event in accordance with the procedures for special use permits established in Chapter

9.68 of this code. Notwithstanding any provision in Chapter 9.68 to the contrary, the city council shall have the authority to approve, conditionally approve or deny a special use permit for a temporary cannabis event. A special use permit for a temporary cannabis event shall only be granted to a person who holds a cannabis event organizer license issued by the California BureauDepartment of Cannabis Control, a copy of which must be submitted with the special use permit application. The applicant shall provide the city with a copy of the temporary cannabis event license approved by the state before prior to the commencement of the temporary cannabis event. Temporary cannabis events shall comply with all regulations set forth in Title 4 of the California Code of Regulations, Sections 15600 through 1560416 C.C.R. Sections 5601—5604, as they may be amended from time to time. Temporary cannabis event organizers and cannabis businesses participating in a temporary cannabis event shall not be subject to the cannabis business operational requirements in Sections 5.88.065 through 5.88.100, inclusive, of this chapter or Sections 9.108.070 and 9.108.080 of this code, but the city council may apply appropriate conditions of approval on the operation of the temporary cannabis event pursuant to Section 9.28.060. Cannabis event organizers and cannabis businesses that participate in temporary cannabis events are subject to the tax imposed in Section 3.48.0120 of this code. § 5.88.040 Local license application process.

A. The local licensing authority shall not accept an application for a dispensary proposed to be located south of Interstate 10 after November 23, 2016.

B. All applications for local licenses required pursuant to this chapter shall be made upon current forms prescribed by the local licensing authoritysubmitted online. All applications for local licenses must be accompanied by the application fee as established by resolution of the city council as amended from time to time.

C. An applicant shall file with the local licensing authority the following at the time of application for a local license:

1. An operating plan for the proposed cannabis business including the following information:
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a. A general description of the types of products and services to be provided by the facility;
b. A floor plan designating all interior dimensions of the licensed premises and the layout of the cannabis business, including all limited access areas, areas of ingress and egress, and all security cameras. Such floor plan shall also show the principal uses of the floor area depicted therein. For cultivation sites, such floor plan shall distinguish all dimensions of areas in which plants are located; c. An employee, independent contractor, and volunteer list, if one exists; and d. For a dispensary, a statement confirming whether delivery service of cannabis to any location outside the premises will be provided and the extent of such service, and in the event delivery is provided, a detailed delivery plan detailing how the dispensary will comply with all requirements of this chapter, MAUCRSA, and any other applicable state or local laws.

2. Authorization for the local licensing authority to seek verification of the information contained within the application and authorization for the chief of police to conduct background checks of the owner(s).

3. Proof of the nature of the cannabis business's organizational status, such as articles of incorporation, by-laws, organizational minutes, partnership agreements, and other documentation may be required by the city.

4. Proof that the applicant is, or will be, entitled to possession of the premises for which application is made. Evidence of lawful possession consists of properly executed deeds of trust, leases, evidence of ownership of the licensed premises, or other written documents acceptable to the local licensing authority. The applicant must disclose whether, to the applicant's knowledge, the premises is located on land that is owned by the United States and held in trust for any federally-recognized Indian tribe or any member of the tribe, or that is subject to a restriction on alienation imposed by the United States.

5. The applicant shall provide any additional information that the local licensing authority may request to process and fully investigate the application. Failure to provide such additional information may result in denial of the application.

D. If the application is incomplete, the applicant shall have an opportunity to cure the incompleteness within thirty days of written notice of incompleteness by the local licensing authority.

E. Each owner and each manager must submit fingerprints and any other information the City requires to complete a background check. The chief of police or designeepolice department shall will conduct a background check of any each owner and manager of the cannabis business, as 18 4910-0181-5767 v1
"owner" is defined in MAUCRSA, and shall will prepare a report to the local licensing authority on the acceptability of the each background of the owner(s).

F. The local licensing authority shall must issue a license to any applicant who has submitted a complete application and paid the application fee unless the local licensing authority finds that good cause exists to deny the license. A local license shall may not be issued to a dispensary that is proposed to be located south of Interstate 10 unless the application for the license was made on or before November 23, 2016.

G. Upon the approval of a local license, and as a condition of the license becoming effective, the applicant shall must pay to the city the regulatory licensing fee, if any, established by resolution of the city council.

H. A local license issued pursuant to this chapter shall specify the date of issuance, the period of licensure, the name of the licensee, the address of the licensed premises, and the nature of the cannabis business licensed. All local licenses are valid for one year, except that an initial local license shall automatically expire if the commercial cannabis activities authorized by the license have not commenced at the premises within eleven months of the date of issuance. If the licensee has not submitted a tax return pursuant to Section 3.48.080 of this code showing that commercial cannabis activity is occurring on the premises before the start of the twelfth month of the license term, the city will notify the licensee in writing that their license has been rendered null and void due to the failure to commence commercial cannabis activity. The licensee is not precluded from applying for a new cannabis license except as provided in Section 5.88.040(A).

I. Applicants must acknowledge the tax obligations imposed under Chapter 3.48 of this code, including the timely filing of required tax returns and payment of all cannabis taxes due from dispensary, cultivation, or manufacturing operations, and further acknowledge that compliance with Chapter 3.48 is a continuing condition of local licensure. § 5.88.045 Conditions of approval, administrative rules.

A. The local licensing authority may place conditions upon the approval of any local license which are, in the opinion of the local licensing authority, reasonably related to the protection of the health, safety and welfare of the neighborhood in which the proposed licensed premises is to be located and of the general public.

B. The local licensing authority is authorized to make rules, policies and procedures consistent with the intent and spirit of this chapter concerning the applications, the application process, the information required of applicants, the application procedures, and the administration and procedures to be used and followed in the application process. 19 4910-0181-5767 v1
§ 5.88.050 Changes and modifications of local licenses.

In addition to any requirements in Chapters 9.108 and 9.72 of this code, the following requirements apply for transfers of or changes to the ownership or management of a licensee, modifications to a licensed premises, and changes of location of a cannabis business.

A. Change of Ownership or Management. Subsequent to the issuance of a local license, the licensee shall report any transfer of ownership or management in of the cannabis business to the local licensing authority on forms prescribed by the local licensing authority and pay the processing fee established by resolution of the city council. A change of ownership that solely involves a previously approved owner person no longer being an owner or manager of the cannabis business shall be reported to the local licensing authority within thirty days of the change. A change in ownership that involves adding a new owner or manager to the previously approved ownership must be approved by the local licensing authority in advance. Anyll proposed new owners or manager must submit to a background check conducted by the chief of police or designee. The local licensing authority shall approve the change in ownership unless there is good cause to deny the change. The licensee shall also demonstrate that all cannabis business taxes, penalties, and interest due under Chapter 3.48 of this code have been paid in full.

B. Modification of Licensed Premises. A licensee shall not make physical changes, alterations, or modifications to the licensed premises that materially or substantially alters the licensed premises from the plans approved by the local licensing authority without the prior written approval of the local licensing authority. Material changes include, but are not limited to: an increase or decrease in the total square footage of the licensed premises or the addition, sealing off, or relocation of a wall, common entryway, doorway, or other means of public ingress and/or egress. Applications for modifications of licensed premises shall be made on forms prescribed by the local licensing authority and shall be accompanied by the processing fee established by resolution of the city council. The local licensing authority shall approve the proposed modification if it meets all requirements of this chapter and all other applicable state laws and city codes and ordinances, and will not present a threat to the public health, safety or welfare.

C. Change of Location.

1. A licensee may apply to the local licensing authority to change the location previously approved for such local license to any other place in Cathedral City, but it is unlawful to cultivate, manufacture, distribute, test, store or sell cannabis at any such place or location until express permission to do so is granted by local licensing authority and the city has issued a conditional use permit to the licensee at the new location. Applications for changes of location shall will be made on forms prescribed byto the local licensing authority and be accompanied by the processing fee established by resolution of the city council.
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2. In permitting a change of location, the local licensing authority may change any existing conditions of approval on the license and/or add new conditions of approval as determined appropriate by the local licensing authority.

3. The local licensing authority may permit a dispensary that is located south of Interstate 10 to relocate to a new location north or south of Interstate 10. A dispensary that is located north of Interstate 10 may only relocate to a new location that is north of Interstate 10.
§ 5.88.055 Renewal of a local license.

A. A cannabis business that desires to renew its license shall apply for the renewal no less than thirty 30 days before prior to the local license's expiration date. If the cannabis business files a renewal application within thirty30 days before prior to expiration, the cannabis business must provide a written explanation detailing the circumstances surrounding the late filing. The local licensing authority may accept or reject such late filing in its discretion. The local licensing authority may elect to administratively continue a local license past its expiration date, provided that the licensee has submitted a renewal application that is pending final action.

B. An application for renewal shall be submitted online by providing all required information and documentationon forms provided by the local licensing authority, accompanied by the processing fee established by resolution of the city council. The following information shall be submitted as a part of the renewal application:

1. A current list of the employees, independent contractors, and volunteers working at the licensed premises.

2. Proof that no changes to the ownership of the licensee have occurred since last approved by the local licensing authority.

3. Proof that the licensee is still entitled to the possession and use of the licensed premises.

4. For dispensaries, proof that commercial cannabis activity is occurring on the premises in accordance with the following:
a. For a first renewal application, proof that commercial cannabis activity permitted by the license has been occurring on the premises for the 30 days before the cannabis license expiration datefor the previous month. A tax return submitted pursuant to Section 3.48.080 of this code showing that taxable commercial cannabis activity occurred on the premises is necessary evidence of this fact but does not by itself establish shall be sufficient proof. The local licensing authority may require additional evidence, including point-of-sale transaction records, posted hours of operation, and staffing schedules, to confirm that the dispensary 21 4910-0181-5767 v1
was genuinely open to the public and conducting sales on a regular and continuous basis.
b. For a second and subsequent renewal application, proof that commercial cannabis activity permitted by the license has been occurring on the premises for the previous twelve consecutive months. Tax returns submitted pursuant to Section 3.48.080 of this code showing that taxable commercial cannabis activity occurred on the premises are necessary evidence of this fact but do not by themselves establish shall be sufficient proof. The local licensing authority may require the additional evidence described in subsection a. c. The local licensing authority may renew a license not meeting the requirements of subparagraphs a or b above if the renewal application demonstrates unique or extraordinary circumstances that have impacted the ability of the cannabis business to conduct commercial cannabis activity on the premises, including, but not limited to, fire, flood or other act of God resulting in substantial damage to the premises, or a delay in the issuance of necessary licenses, permits or other approvals necessary to conduct the commercial cannabis activity at no fault of the applicant.
d. Isolated, sporadic, or token sales transactions conducted primarily to generate a qualifying tax return, rather than as part of genuine and sustained retail operations open to the public, do not satisfy the requirements of subsection a or b.

5. For licensees that have ten or more full-time equivalent non-supervisorial employees, proof that the licensee has entered into and abided by the terms of a labor peace agreement.

6. Proof that the cannabis business is not delinquent on the submission of any tax returns or the payment of any cannabis taxes due under Chapter 3.48 of this code. If a business has entered into a tax payment agreement, it is not considered to be current with their tax obligations until the agreement has been fully paid.

7. Any other information that the local licensing authority deems necessary to determine whether to renew the local license.

C. All owners of the cannabis business must be fingerprinted each year at renewal if required in the discretion of the local licensing authority.

D. The local licensing authority shall renew a local license if the licensee has submitted a complete application and paid the application processing fee, unless the local licensing authority finds that good cause exists to deny the license renewal. 22 4910-0181-5767 v1
E. Local cannabis taxes must be current before prior to renewing licensees' local cannabis license. Should a licensee hold multiple licenses within Cathedral City, their taxes for all licenses must be current to renew any one of their licenses.

F. Licensees seeking renewal of a dispensary license must demonstrate actual and continuous operations in accordance with subsection B.4 of this section. A paid tax return alone does not establish compliance with those operational requirementsLicensees must be able to prove they have been operational for at least one month prior to the first renewal for any dispensary license by providing a paid tax return and prove they have been operational for twelve months prior to a second and all subsequent renewals for any dispensary license.

G. Unless administratively continued pursuant to subsection A, a local license is immediately invalid upon expiration and the cannabis business shall cease operations. If a local license expires, the local licensing authority may approve a renewal of the expired license at any time up to three months from the expiration date of the license. After the license has been expired for three months, the license may not be renewed by the local licensing authority, and the holder of the expired license must apply for and obtain a new cannabis license to resume operations.

Any additionally required odor control equipment to meet the requirements of this chapter shall be installed and operational within six months of the approval of an odor control plan the local license renewal application date and no later than March 31, 2027December 31, 2026.

If the local licensing authority denies or conditionally approves an initial local license, declines to renew a local license, or denies a change requested under Section 5.88.050, Any decision regarding the local licensing authority's approval, conditional approval, denial, of an initial local license, renewal thereof, or a change to the license requested under Section 5.88.050 may be appealedthe licensee or applicant may appeal the decision to the city council in accordance with the provisions of Section 2.04.100 et seq., of this code. A decision to deny or not renew a cannabis industry worker identification card under Section 5.88.065(D) may be appealed to the city council through the same procedures. Proceedings to suspend, modify, or revoke a local license for good cause are governed by Chapter 13.150, as provided in Section 5.88.115. § 5.88.065 Cannabis business operational requirements.

All cannabis business must comply with the requirements set forth in this section. 23 4910-0181-5767 v1
A. General Obligation to Operate in Compliance. A cannabis business mustshall operate in compliance with all applicable state and local laws and regulations governing cannabis businesses. To be considered operational, a cannabis business must represent to the City and the public that it is actively conducting commercial cannabis activity authorized by its local license and is in compliance with the applicable operational requirements of this chapter.

B. General Obligation to Pay Taxes. A cannabis business must pay all applicable taxes pursuant to federal, state, and local law, including but not limited to, the cannabis tax required by Chapter

3.48, state and local sales and use taxes, and state excise taxes. A cannabis business shall timely file all required tax returns, maintain complete and accurate records necessary to determine cannabis tax liability, cooperate with any tax audit authorized by the City, and timely pay any taxes, penalties, interest, or other amounts, e.g., NSF fees, lawfully imposed or assessed. Failure to comply with the requirements of Chapter 3.48 may constitute grounds for enforcement action under this chapter.

C. General Obligation for Compliant Facilities. The licensed premises mustshall fully comply with all applicable rules, regulations, and laws including, but not limited to, building and safety codes, and the Americans with Disabilities Act.

D. Background Checks. Prior toBefore commencing any work within a cannabis business, any individual who will work within a licensed premises or have access to cannabis or cannabis products must submit to a background check that demonstrates they are of good moral character and receive a cannabis industry worker identification card from the city. The background check must include fingerprinting for criminal history conducted by the Cathedral City police department or any other entity determined to be satisfactory by the Cathedral City police department. Each cannabis industry worker identification card issued shall expire after two years unless renewed. A decision to deny or not renew a cannabis industry worker identification card may be appealed in accordance with Section 5.88.060. A cannabis industry worker identification card may be revoked or suspended by the city at any time, in accordance with the procedures in Chapter 13.150 of this code, if it is determined that the card holder is no longer of good moral character. A cannabis business shall not employ or utilize the services of any individual who is required to have a city-issued cannabis industry worker identification card unless that individual possesses a valid city-issued cannabis industry worker identification card at all times, regardless of whether the individual is an employee, independent contractor, or volunteer. The city may charge a fee to recover its reasonable costs of processing and issuing cannabis industry worker identification cards in an amount established by resolution of the city council.

E. Worker Register. Cannabis businesses must maintain a complete register of all persons that work at the licensed premises or have access to cannabis or cannabis products, whether as an employee, independent contractor, or volunteer. This register must include:

1. The individual's complete name, address, and last known telephone number; 24 4910-0181-5767 v1

2. The individual's hire date and, if applicable date of termination.

The register and required records must be made available for inspection by any city officer or official for purposes of determining compliance with the requirements of this chapter during standard business hours of the licensed facility or at any other reasonable time.

F. Employees and Volunteers Age Requirement. A cannabis business shall not employ an individual less than twenty-one years of age, nor may a cannabis business permit an individual less than twenty-one years of age to volunteer at the cannabis business. Notwithstanding the foregoing, a cannabis business may employ and allow persons eighteen years of age or older to volunteer at the cannabis business if the business holds an M-license from the state and the state expressly permits such persons to work within the business.

G. Age Restrictions. A cannabis business may not permit an individual less than twenty-one years of age to enter, or be within, its licensed premises, except that a cannabis business with an M-license from the state may allow persons eighteen years of age or older within the licensed premises if they are an ID card holder or qualified patient with physician's recommendation from a licensed physician.

H. 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.

I. Cannabis Consumption on Licensed Premises. Smoking, vaporizing, ingesting, or otherwise consuming cannabis and cannabis products at a licensed premises is prohibited, except on the premises of a licensed dispensary in accordance with Section 5.88.070(J). "Licensed premises" as used in this subsection includes the actual building, as well as any accessory structures, common areas and parking areas. A sign shall be posted at each entrance to a licensed premises that clearly and legibly states: "Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises or in their vicinity is prohibited and a violation of the Cathedral City Municipal Code."
J. Prohibition on Alcohol and Tobacco Sales, Distribution, or Consumption on Licensed Premises. A cannabis business shall not sell, provide, store, or distribute any alcoholic beverages or tobacco products, or allow such products to be consumed on the licensed premises.

K. On-Site Signage. On-site signage for a cannabis business that is viewable from the exterior of the cannabis business shall comply with all local signage laws applicable to the licensed premises, including Chapter 9.62 of this code. Signage may not be designed to appeal to children, or contain any false or misleading statements, or make any misrepresentations.

L. Advertising. A cannabis business shall not advertise in a manner intended to encourage persons under twenty-one years of age to consume cannabis or cannabis products. It shall be unlawful for any cannabis business to make any claims that a product is safe because it is tested. 25 4910-0181-5767 v1
All advertisements, including off-site advertising signs, shall comply with Chapter 15 of MAUCRSA. A cannabis business must maintain at least one publicly accessible means of informing the public that the business is operational. Such means may include, but are not limited to, a business website, social media page, online business directory, or other publicly accessible platform. The information shall accurately identify the business name, address, hours of operation, and contact information, and shall be kept current.

M. Display of License. A cannabis business shall display a copy of its local license issued pursuant to this chapter in a conspicuous place at or near the entrance to the licensed premises.

N. No Physician Evaluations on Licensed Premises. A cannabis business shall not permit a physician to evaluate potential medicinal cannabis patients or to provide a physician's recommendation for medicinal cannabis within its licensed premises. Cannabis businesses shall not offer or provide any form of remuneration to a physician who provides physician's recommendations for medicinal cannabis.

O. Community Relations Designee. A cannabis business must provide the local license authority with the name, phone number, facsimile 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. The cannabis business shall also provide this contact information to all neighboring businesses located within one hundred feet of the cannabis business, as measured in a straight line without regard to intervening structures, between the front doors of each establishment.

P. Accurate Weights and Measures. Scales and weighing mechanisms used by a cannabis business to weigh non-waste products must be able to weigh to within 1/100th of a gram, shall be maintained in good working order and shall be subject to annual inspection by either a Riverside County agricultural commissioner's office weights and measures official or a licensed scale company.

Q. Waste Disposal.

1. 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.

2. Cannabis Waste. Cannabis waste must be made unusable and unrecognizable before 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 26 4910-0181-5767 v1
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.

3. Composting. A cannabis business may compost cannabis waste onsite, in accordance with this provision and all other applicable laws, rules, and regulations.

R. General Sanitary Requirements. A cannabis business must ensure that its licensed premises are maintained in a sanitary manner and activities on its licensed premises are conducted in a sanitary manner.

1. All facilities of a cannabis business must have adequate and sufficient access to bathrooms and hand-washing facilities with running water at a suitable temperature.

2. Hand-washing facilities shall be located where good sanitary practices require workers to wash or sanitize their hands, and provide effective hand-cleaning and sanitizing preparations and sanitary towel service or suitable drying devices.

3. All workers that engage in the preparation or dispensing of edible cannabis products must comply with the provisions of all relevant state and local laws regarding the preparation, distribution, and sale of food.

S. Security Requirements. The licensed premises of a cannabis business must comply with all of the following security requirements:

1. Video Surveillance. The licensed premises must be equipped with a video surveillance system that meets all of the requirements set forth in this subsection. a. Security cameras and digital storage of recordings shall be maintained in good condition and used in an on-going manner, twenty-four hours per day, seven days per week.
b. The security system must maintain at least one hundred twenty concurrent hours of digitally recorded video for each security camera in the licensed premises. Security footage should be stored in an MPEG4, MJPEG, H.264, or another format approved by the local licensing authority in writing. c. Security cameras must provide adequate and sufficient coverage for the facility, which must include, but need to be limited to, all limited access areas, all areas of ingress and egress, point of sale, the public areas, storage areas, and any other areas as required by this chapter and the MAUCRSA.
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d. The video surveillance system must be equipped with a failure notification system that provides prompt notification to the manager of record of the licensed premises of the cannabis business of any surveillance interruption or complete failure of the surveillance system that lasts longer than fifteen minutes. e. The video surveillance system shall have sufficient battery backup to support a minimum of fifteen minutes of recording in the event of a power outage.

2. Alarm System. The licensed premises shall have an audible interior and exterior security alarm system installed on all perimeter entry points and perimeter windows, operated, and monitored by a security company licensed by the Department of Consumer Affairs, Bureau of Security and Investigative Services.

3. Signage Requirement. The licensed premises must comply with the following signage requirements.
a. A sign shall be posted in a conspicuous place near each point of public access which shall be not less than twelve inches wide and twelve inches long, composed of letters not less than one inch in height, stating: "All Activities Monitored by Video Camera."
b. 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."

4. Lighting. The business entrance(s) and all window areas 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.

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

6. Notification of Local Licensing Authority and Law Enforcement. A cannabis business shall notify the local licensing authority and the appropriate law enforcement authorities within twenty-four hours after discovering any of the following:
a. Significant discrepancies identified during inventory; b. Diversion, theft, loss, or any criminal activity involving the dispensary or any employee or agent of the dispensary;
c. The loss or unauthorized alteration of records related to cannabis, cannabis patients, primary caregivers, or dispensary employees or agents; or d. Any other breach of security.
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T. Subletting Prohibited. Licensees are not authorized to sublet any portion of a licensed premises for any purpose, unless all necessary applications to modify the existing licensed premises to accomplish any subletting have been approved by the local licensing authority.

U. Recordkeeping. Cannabis businesses shall keep and maintain all records specified in Chapter 16 of the MAUCRSA and shall make the same available for inspection and examination of the local licensing authority or its duly authorized representatives during standard business hours of the licensed facility or at any other reasonable time. Cannabis businesses are required to exercise due diligence in preserving and maintaining all required records.

V. Transactions. Licensees shall only do business with cannabis businesses that are licensed or permitted to do business in their respective jurisdictions.

W. Odor Control Plan. A cannabis business shall obtain approval of an odor control plan pursuant to the requirements of Section 5.88.125. All required odor control equipment shall be installed and operational before prior to the commencement of operations and shall be maintained in good working order. The licensee shall certify the performance of an odor control plan to the requirements of this chapter annually with the renewal of a cannabis license.

X. Licensee Responsibility. At all times, aA licensee is responsible for ensuring that its cannabis business complies with all applicable state and local laws, and any regulations promulgated thereunder, at all times. In construing and enforcing this chapter and any rules or regulations promulgated under this chapter, the act, omission, or failure of an agent, officer, representative, employee, independent contractor, or volunteer acting for or on behalf of a licensee, within the scope of his or her employment or engagement, shall in every case be deemed the act, omission, or failure of the licensee.

X. Meteorological Sensors. All cultivation and manufacturing cannabis businesses shall install and maintain an onsite meteorological (MET) system capable of recording wind direction and wind speed and with cloud based data logging made accessible to the city. The MET sensors shall be calibrated annually. All data collected by the MET system shall be maintained and accessible for two years.
§ 5.88.070 Dispensary operational requirements.

In addition to the operation requirements in Section 5.88.065, a dispensary must comply with the requirements set forth in this section.

A. Limited Hours of Operation. A dispensary may only be open to the public and engage in sales between the hours of six a.m. and ten p.m. The dispensary must clearly post its hours of operation at each publicly accessible entrance and must be open to the public during those posted hours.

B. Product Displays. A dispensary must maintain retail shelves and display areas in a stocked and commercially operable condition, with all products offered for sale clearly displaying accurate 29 4910-0181-5767 v1
and current pricing. Inventory must be sufficient to support continuous retail operations. The display of cannabis and cannabis products for sale shall not include cartoon characters or other images designed to appeal to children.

C. Age Restricted Entry. A dispensary may not permit an individual less than twenty-one years of age into the licensed premises, except a dispensary with an M-license from the state may permit an individual aged eighteen years or older into the licensed premises if the dispensary verifies the individual is an ID card holder or qualified patient with a physician's recommendation.

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

E. Electronic Point-of-Sale System Required. Dispensaries must have an electronic point of sale system that is either part of their seed to sale software or integrates with their seed to sale software. The electronic point of sale system must be capable of producing an electronic or automatic paper record for all transactions associated with any product sold, rented, or otherwise provided to the customer.

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

G. Acceptable Forms of Payment. The local licensing authority may adopt regulations that prohibit a dispensary from accepting certain forms of payment from customers for cannabis and cannabis products. A dispensary may accept cash payments unless the local licensing authority has adopted a regulation prohibiting the acceptance of cash.

H. Handling of Edible Cannabis Products. A dispensary that possesses edible cannabis products shall comply with the provisions of all relevant state and local laws regarding the storage, handling, and sale of food.

I. Delivery of Cannabis and Cannabis Products. A dispensary that provides delivery service shall comply with the following requirements:

1. The dispensary shall not delivery cannabis or cannabis products to any location outside of California or to any location within California where the delivery of cannabis or cannabis products has been prohibited by the city or county.

2. The delivery service must be approved by the local licensing authority as a part of the licensing process. The deliveries must be conducted in accordance with any relevant state laws, this code, any applicable local laws in the delivery location, and any conditions imposed upon the license.
30 4910-0181-5767 v1

3. The dispensary must keep in place standard operating procedures that ensure the safety and security of those individuals engaging in delivery and the safety and security of all cannabis being delivered, including procedures to prevent diversion.

4. A dispensary may only deliver cannabis to a specific street address requested by the purchaser. Deliveries to public parks and schools are expressly prohibited.

5. Upon arrival at the delivery address and before prior to transferring any cannabis or cannabis products, the delivery person must verify and confirm that the identity of the recipient is the same as the person who requested the delivery and that the person is either twenty-one years of age or a qualified patient or primary caregiver.

6. A dispensary shall report to the local licensing authority and local law enforcement any vehicle accidents, diversions, losses, or other reportable incidents such as thefts or suspicious activity, that occur during transportation and delivery, within twenty-four hours.

7. The delivery shall keep a delivery manifest that includes the following information:
a. All cannabis that will be transported, accurately inventoried; b. Departure date and approximate time of departure;
c. Arrival date and approximate time of arrival;
d. Name, address, local license number and CUP number of the originating cannabis business;
e. Name and address of the individual requesting the delivery; f. Delivery vehicle make, model, and license plate number; and g. Name and signature of the individual transporting the cannabis.

J. Consumption of Cannabis and Cannabis Products on Premises. Cannabis and cannabis products may be smoked, vaporized, ingested or otherwise consumed on the licensed premises of a dispensary, subject to the following regulations:

1. Access to the area where cannabis consumption is allowed must be restricted to persons twenty-one years of age and older. The dispensary shall be responsible for checking identification and ensuring that underaged individuals do not enter.

2. Cannabis consumption shall not be visible from any place where persons under the age of twentyone 21 are permitted.

3. Cannabis consumption must occur only within the areas designated for consumption by the license.
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4. The cannabis business shall specifically address odors caused by the consumption of cannabis in the odor control plan required in Section 5.88.125.

5. Cannabis consumption shall occur in a space within the licensed premises that is separate from the space that is used to sell cannabis and cannabis products for on-site or off-site consumption.

6. Only cannabis and cannabis products purchased from the dispensary during the same visit by the customer may be consumed within the dispensary. Individuals may not bring cannabis or cannabis products into a dispensary for the purposes of consumption.

7. Cannabis and cannabis products that are only partially consumed on the premises of the dispensary must be repackaged in accordance with Section 5.88.095 before prior to leaving the dispensary.

8. Representatives of the city, including, but not limited to, police officers, must be permitted to enter the licensed premises, including all areas where consumption is allowed, at any time during the regular business hours of the cannabis business and/or whenever consumption is occurring on site.

K. Noncannabis Food and Beverage Service; Live Performances. Within the consumption area authorized under Section 5.88.070(J), a dispensary may prepare and sell noncannabis food and beverage products, sell prepackaged noncannabis food and beverage products, host live musical or other performances, and sell tickets for those performances, subject to the following regulations:

1. A dispensary must conduct each activity authorized by this subsection only within the approved indoor consumption area. Nothing in this subsection authorizes any activity, cannabis consumption, or event in an outdoor area, including a parking lot, patio, sidewalk, or adjacent property.

2. A dispensary authorized under this subsection may allow customers to bring in or receive noncannabis, nonalcoholic food and beverage products from a restaurant or food delivery service for consumption within the consumption area.

3. A dispensary conducting an activity authorized by this subsection shall comply with all conditions in Business and Professions Code Section 26200, as may be amended from time to time, and with the following:
a. Access to the area where cannabis consumption is allowed must be restricted to persons 21 years of age or older;
b. Each entrance to the cannabis consumption area must prominently post a warning that cannabis consumption, including smoking of cannabis, is permitted inside;
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c. Cannabis consumption may not be visible from any public place or non-agerestricted area; d. Sale or consumption of alcohol or tobacco may not be allowed on the premises; e. Noncannabis food or beverage products may not be contaminated by or commingled with any cannabis products sold or served on the premises where cannabis consumption is allowed;
f. Smoking or vaporizing of any cannabis or cannabis product by an employee or customer may not be allowed in the food preparation, food storage, or warewashing area of a food facility located on the premises; g. The cannabis business must maintain adequate ventilation and filtration systems as required by the City or applicable law. Ventilation and filtration systems may be required to prevent smoke and odors from migrating to any other part of the building hosting the consumption lounge or any neighboring building or grounds;
h. Employees must be permitted, at their discretion and without penalty or sanction, to wear a mask for respiration, including N95 or NIOSH N95 rated masks, in any area where cannabis is smoked, and the employer shall pay for the mask as required by State law;
i. Employees who will be working where cannabis or cannabis products are smoked shall be provided in writing the Department of Public Health or successor agency guidance regarding secondhand cannabis smoke when hired; j. A cannabis consumption lounge that offers onsite consumption of cannabis products shall include secondhand smoke in its analysis of potential work hazards for purposes of any injury and illness prevention program required by State law; k. Loitering in or around the business is prohibited, and the cannabis business must ensure the absence of loitering;
l. If a State retail or microbusiness license is suspended, the licensee may not engage in activities authorized under this section for the duration of the State license suspension;
m. All noncannabis food and beverages present on the premises must be stored and displayed separately and distinctly from all cannabis and cannabis products present on the premises; and
n. This section does not authorize the preparation, sale, service, or consumption of industrial hemp or any product containing industrial hemp. 33 4910-0181-5767 v1

4. A dispensary that prepares, sells, serves, stores, or allows noncannabis food or beverage products within a cannabis consumption lounge shall comply with the California Retail Food Code, Riverside County Environmental Health requirements, and all other applicable State, County, and local laws and regulations. No onsite food preparation shall occur unless all required approvals, permits, or authorizations have been obtained.

5. A dispensary that hosts a live performance on the licensed premises must comply with all applicable state and local requirements, including:
a. Approved occupancy limits;
b. Fire and life safety requirements;
c. Building Code requirements;
d. Business license and cannabis license conditions;
e. Security plan requirements;
f. Odor control and ventilation requirements;
g. Noise regulations;
h. Parking and traffic requirements;
i. Loitering prohibitions;
j. Employee safety requirements;
k. Riverside County Environmental Health requirements, where applicable; and l. Any other condition imposed by the local licensing authority, fire department, building official, code compliance division, police department, or other city department or official with applicable authority.

6. A dispensary operating a consumption area on the effective date of the ordinance codifying this subsection may continue on-site cannabis consumption authorized under Section 5.88.070(J). The dispensary shall not prepare or sell noncannabis food or beverage products, allow carry-in or delivered food, or host a live performance until it satisfies the applicable requirements of this subsection.

7. The authorization in this subsection is in addition to, and does not excuse compliance with or the need to obtain, any other license, permit, or approval required by this code or state law. A dispensary conducting an activity authorized by this subsection remains subject to all otherwise applicable requirements, including any special event permit, temporary use permit, state license, or other approval. 34 4910-0181-5767 v1
§ 5.88.075 Manufacturing site operational requirements.

In addition to the operational requirements in Section 5.88.065, manufacturers must comply with the requirements set forth in this section.

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.

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

2. 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 site where that individual produces edible cannabis products.

3. Any facility used by a cannabis business to manufacture edible cannabis products shall be constructed, operated and inspected in accordance with the applicable building code and applicable food safety requirements.

4. 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.

5. All cannabis manufacturing facilities shall ensure that cannabis is obtained from permitted and licensed cultivation sources and shall implement best practices to ensure that all manufactured cannabis is properly stored, labeled, transported, and inspected before prior to distribution at a legally permitted and licensed retailer.

B. 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.

C. Extraction Requirements.

1. A manufacturer engaged in extraction may only engage in type of extraction approved by the local licensing authority in its application for a local license. The licensee shall not make any modifications to the method of extraction without first obtaining a modification of its local license.
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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, closedloop extraction system capable of recovering the solvent used and must only use a solvent that is permissible under the MAUCRSA and the manufacturer's state license. § 5.88.080 Cultivation operational requirements.

In addition to the operational requirements in Section 5.88.065, a cultivator must comply with the requirements set forth in this section.

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

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

C. The use of pesticides must be recorded in a log in accordance with 16 CCR Section 1970.

D. 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 D, the term "visible" means capable of being seen without visual aid by an individual of normal acuity.

E. A licensee may not distribute, sell, dispense, or administer cannabis on the licensed premises of a cultivation site except for as authorized by the MAUCRSA and other applicable state law.

F. Cultivation facilities must comply with all applicable National Pollutant Discharge Elimination System (NPDES) requirements under the Clean Water Act and its implementing regulations, including 40 Code of Federal Regulations Part 122. § 5.88.085 Distribution operational requirements.

In addition to the operational requirements in Section 5.88.065, distributors shall comply with the requirements of this section.

A. Quality Assurance and Testing.

1. Prior toBefore distribution, the distributor shall inspect cannabis for quality assurance as required by MAUCRSA and to ensure the labeling and packaging of the cannabis and cannabis products conforms to the requirements of this chapter and MAUCRSA.

2. Distributors shall ensure that cannabis and cannabis products in its custody are tested by a licensed testing laboratory in accordance with MAUCRSA before prior to distributing the cannabis and cannabis products to a dispensary.

B. Transportation.

1. A distributor may not transport cannabis to or from another cannabis business outside the state of California.
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2. An individual may only transport cannabis on behalf of a distributor if the individual:
a. Is an employee of the distributor and is listed on the distributor's employee list; b. Possesses a copy of the distributor's local license; and c. Possesses a copy of a transportation manifest that meets all the requirements of MAUCRSA and subsection (B)(3).

3. Transportation Manifest.
a. A cannabis business must create a transportation manifest in accordance with this chapter for every transport and delivery of cannabis. A cannabis business must ensure that a copy of the appropriate transportation manifest accompanies every transport and delivery of cannabis and is kept for retention by the originating cannabis business.
b. If a cannabis businesses makes multiple pick-ups or deliveries during a single trip, then a separate transportation manifest shall be required for each pick-up or delivery.
c. A transportation manifest will be deemed sufficient if it accurately reflects:
i. All cannabis that will be transported to the address reflected on the manifest, accurately inventoried to include the weight of any raw cannabis or cannabis concentrate and the number of individual cannabis products; ii. Departure date and approximate time of departure;
iii. Arrival date and approximate time of arrival;
iv. Name, address, local license number and CUP number (or, for cannabis businesses outside of Cathedral City, a similar number issued by the cannabis business's local jurisdiction) of the originating cannabis business; v. Name, address, local license and CUP number (or, for cannabis businesses outside of Cathedral City, a similar number issued by the cannabis business's local jurisdiction) of the receiving cannabis business; vi. Delivery vehicle make, model, and license plate number; and vii. Name and signature of the individual transporting the cannabis.

4. A cannabis business with a local license may only transport cannabis between licensed premises by way of motor vehicle, unless the transport is between two licensed premises that are within the same building or at the same street address. 37 4910-0181-5767 v1

5. A cannabis business with a local license shall transport cannabis in a manner that is secure and not visible from outside the vehicle.

6. An employee transporting cannabis pursuant to this chapter must take a direct route from the distributor to the destination of the other cannabis business(es) and may not make any stops other than those necessary in the ordinary course of business.

C. Bonding. Transporters shall comply with applicable state laws and regulations, if any, requiring that they be bonded and insured.

D. Preparation of Cannabis and Cannabis Products for Transportation.

1. All cannabis and cannabis products must be appropriately and completely tracked in a cannabis business's inventory tracking system before prior to transportation to another cannabis business. This must include verifying and documenting the weight of any raw cannabis or cannabis concentrate and the number of individual cannabis products being transported.

2. Preparations for the transport of cannabis and cannabis products must be conducted in a limited access area on camera.

E. Receiving Cannabis and Cannabis Products.

1. A distributor may not receive cannabis or cannabis products unless accompanied by a transportation manifest that meets all of the requirements set forth in subsection (B)(3).

The distributor must retain copies of transportation manifests associated with all deliveries of cannabis.

2. Immediately upon receipt, all cannabis and cannabis products must be appropriately and completely tracked in the distributor's inventory tracking system. This must include verifying and documenting the weight of any raw cannabis or cannabis concentrate and the number of individual cannabis products being transported.

F. Perishable Cannabis Products. A cannabis business must provide adequate refrigeration when engaged in the transportation of perishable cannabis products. § 5.88.090 Testing laboratory operational requirements.

In addition to the operational requirements in Section 5.88.065, a testing laboratory shall comply with the requirements of this section.

A. No Other Ownership. An owner of a testing laboratory shall may not have an ownership or other direct financial interest in any other commercial cannabis business license type.

B. Accreditation. A testing laboratory shall obtain and maintain ISO/IEC 17025 accreditation. 38 4910-0181-5767 v1
C. 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.

1. 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 ninety-five percent confidence rate.

3. A testing laboratory shall maintain all testing results as a part of their respective business records and must keep such records pursuant to Section 5.88.065(UV). § 5.88.095 Packaging and labeling.

A. Compliance with State Law. All packaging and labeling of cannabis and cannabis products by a cannabis business must, at a minimum meet the requirements of Chapter 12 of 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.

B. Tamper-Evident, Child-Resistant Packaging Required. Before Prior to delivery or sale at a dispensary to a purchaser, 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.

C. 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.

D. State-Mandated Warnings and Information. All cannabis and cannabis product labels and inserts shall include the state-mandated warnings and information contained in Business and Professions Code Section 26120(c).
§ 5.88.100 Visitor requirements.

A. Visitors. Any individual permitted to enter a limited access area who is not an person that has undergone a background check in accordance with this chapter and is listed on the licensed 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.

B. Visitors Identification and Record Requirements. Prior toBefore permitting a visitor into a limited access area, a cannabis business must check the individual's valid government issued 39 4910-0181-5767 v1
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.

C. Visitors Must Be at Least Twenty-One Years of Age. A cannabis business may not permit a visitor who is less than twenty-one21 years of age to enter a limited access area.

D. Visitors Prohibited Conduct. A visitor shall not be permitted to engage in the cultivation, preparation, processing, manufacturing, packaging, labeling, transportation, or sale of cannabis. § 5.88.105 Limitations on city's liability.

A. Execute an agreement indemnifying and holding the city harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of federal law associated with the operation of the cannabis business and delivery of cannabis as provided in this chapter; and B. Maintain insurance in the amounts and of the types that are acceptable to the city pursuant to guidelines and policies set forth by the local licensing authority; and C. Name the city as an additionally insured on all city-required insurance policies; and D. Agree to defend, at its sole expense, any action against the city, its agents, officers, and employees related to the approval of a local license or conditional use permit or the operation of the cannabis business; and
E. Agree to reimburse the city for any court costs and attorney fees that the city may be required to pay as a result of any legal challenge (or federal enforcement action) related to the city's approval of a local license or conditional use permit. The city may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder.
§ 5.88.110 Inspections.

A. Recordings made by security cameras at any cannabis business shall be made immediately available to the local licensing authority upon verbal request for law or regulatory enforcement and criminal investigation purposes. Disclosure of such recordings is governed by the California Public Records Act (Such recordings shall be considered confidential and shall not be released to the public pursuant to Government Code sSection 7920.000 et seq.) 6254(f) and other applicable law. Recordings shall be withheld from public disclosure only to the extent authorized or required by applicable lawwithout the consent of the licensee. 40 4910-0181-5767 v1
B. The local licensing authority shall have the right to enter all cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter. Such inspections shall be limited to observing the licensed premises for purposes of determining whether the 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 local licensing authority 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.

C. The local licensing authority shall have the right to inspect records of medicinal cannabis patients and primary caregivers that have made purchases of medicinal cannabis or medicinal cannabis products from a dispensary for the sole purpose of determining whether any and all such individuals are qualified to make such purchases. Such inspections of records shall not be used for any other purposes, nor shall the records be removed off site by the city without a court order.

E. Applicants and licensees must cooperate with the local licensing authority and his its designees who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this chapter.

F. Licensees must make available for inspection or audit all records reasonably necessary to verify compliance with Chapter 3.48 and must cooperate with the City in the review of such records. Such records may include, but are not limited to, cannabis tax returns, point-of-sale system records, or other documents relevant to the reporting or remittance of cannabis taxes. § 5.88.115 Enforcement.

A. The provisions of this chapter may be enforced by the local licensing authority by any means provided for in Title 13 of this code in addition to any and all other remedies, civil, equitable or criminal, afforded to the city under the law.

B. The operation of a cannabis business in violation of this chapter or any conditions of approval placed on a licensee's local license is hereby deemed to be a public nuisance.

C. As provided for in Title 13 of this code, the local licensing authority may issue administrative, infraction or misdemeanor citations, institute a summary abatement of a public nuisance that poses an immediate threat to the public health and safety, and/or institute proceedings to suspend, 41 4910-0181-5767 v1
modify or revoke a local license for good cause in accordance with the procedures in Chapter

13.150 of this code.

D. The city attorney may bring a civil or equitable action to seek the abatement of any violation of this chapter.

E. Whenever in this chapter any act or omission is made unlawful, it shall include causing, permitting, aiding, abetting, suffering, or concealing the fact of such act or omission.

F. Each and every day a violation is maintained, caused, aided, abetted, concealed, suffered, or permitted is a separate offense.
§ 5.88.120 Civil fines.

Any person convicted of an infraction or misdemeanor violation shall, for each separate violation of this chapter, be subject to civil fines in amounts set by resolution of the city council in addition to any infraction or misdemeanor penalties.
§ 5.88.125 Odor control plan.

A. Purpose and Content. Odor control plans are intended to be prepared and designed as performance-based systems for each cannabis business such that cannabis odors are not detected off site. The odor control plan must specifically identify any administrative controls, engineering controls, process parameters, maintenance requirements, and training necessary to control cannabis odor together with detailed information and specifications on odor control equipment incorporated within the plan.

B. Application. A cannabis business shall submit and obtain approval of an odor control plan in a form acceptable to the community development director.

C. Fee. A fee as determined by resolution of the city council to defray the costs and expenses of the city in processing the application shall be paid prior tobefore accepting the application for filing, no part of which fee shall be refundable to applicant.

D. Decision Process. Upon receipt of a completed application as determined by the community development director, an odor control plan shall be reviewed for its ability to effectively mitigate odors from odor generating sources or adequately explain why odor control is not warranted. The community development director may request revisions or modifications to an odor control plan before prior to rendering a decision to approve an odor control plan or otherwise place conditions of approval on an application.

E. Appeals. Decisions of the community development director may be appealed by the applicant to the planning commission by filing a written request along with the established city fee within ten business days of the date of the staff determination. The planning commission shall consider the appeal as a public hearing item. The determination of the planning commission shall be 42 4910-0181-5767 v1
effective ten calendar days after the date of decision unless appealed to the city council, by written appeal filed with the city clerk, whose decision shall be final.

F. Annual Certification. A cannabis business shall certify in a form acceptable to the community development director the performance of its odor control plan to the requirements of this Chapter at the time of its annual license renewal. This annual certification shall further confirm the maintenance of any required odor control equipment.

G. Amendments. Amendments to an odor control plan shall demonstrate continued system effectiveness and compliance with this chapter and Chapter 9.108. Amendments to an odor control plan may be required as a result of corrective action taken by a cannabis business in response to enforcement action as set forth in Chapter 13.80. Amendments to an odor control plan may also be required to reflect operational or facility changes, including:

1. Modifications to odor control equipment, including the addition or deletion of equipment and changes to the type of odor control equipment; and

2. Facility expansions, process changes, tenant improvements, or other activities that alter the generation of cannabis odors.

H. Installation of Odor Control Equipment. For cannabis businesses established after January 22, 2025, all required odor control equipment shall be installed and operational prior tobefore the commencement of operations. Cannabis businesses established on or before January 22, 2025, shall must follow the requirements of Section 5.88.055(.H) for the installation of any additionally required odor control equipment.

I. Maintenance. All required odor control equipment shall must be maintained in good working order.

J. Enforcement. Should an odor control plan fail to adequately mitigate cannabis odors to the standards of this section, the cannabis business may be subject to enforcement action for public nuisance cannabis odors as set forth in Chapter 13.80. Failure to comply with, obtain approval of, or maintain an odor control plan as required by this chapter may be subject to enforcement action.

K. Prohibition. Vapor phase and misting systems shall are not be permitted odor control equipment.
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Chapter 3.48 CANNABIS TAX
§ 3.48.005 Purpose and intent.
§ 3.48.010 Imposition of tax.
§ 3.48.020 Definitions.
§ 3.48.030 Payment obligation.
§ 3.48.040 City council authorization to adjust rates.
§ 3.48.050 Payment of tax does not authorize activity.
§ 3.48.060 Cannabis tax is not a sales tax.
§ 3.48.070 Amendments and administration.
§ 3.48.080 Returns and remittances.
§ 3.48.090 Failure to pay tax.
§ 3.48.100 Refunds.
§ 3.48.110 Enforcement.
§ 3.48.120 Debts—Deficiencies—Assessments.
§ 3.48.130 Exemptions.
§ 3.48.140 Tax payment arrangements.
§ 3.48.005 Purpose and intent.

This chapter shall be known as the "Cannabis Tax" and is enacted as a business license tax pursuant to Government Code Section 37101 solely to raise revenue for the general governmental purposes of the city and not for purposes of regulation or raising revenues for regulatory purposes. All of the proceeds from the tax imposed by this chapter shall be placed in the city's general fund and used for the usual current expenses of the city.

This chapter is intended to impose a tax on lawful cannabis businesses operating in the city, consistent with the city's authority in Government Code Section 37101. Cannabis businesses operating under California's medical marijuana laws (Health and Safety Code Sections 11362.7 through 11362.853; Business and Professions Code Sections 19300 through 19360) are subject to the tax imposed by this chapter. At such time as recreational or other non-medical use or consumption of cannabis is legalized or decriminalized in California, Tthis tax shall apply to cannabis businesses engaged in commercial cannabis activity for non-medical uses, as defined in the MAUCRSA.
§ 3.48.010 Imposition of tax.

Every cannabis business operating in the city, regardless of whether such cannabis business has a license pursuant to Chapter 5.88 of this code or a permit pursuant to Chapter 9.108 of this code, shall pay a cannabis tax in the following amounts:

A. Fifteen cents for each one dollar of gross receipts or fractional part thereof received by a dispensary or by any other cannabis business for with activities other than cannabis cultivation or manufacturing.

B. Twenty-five dollars for each square foot or fractional part thereof of cannabis cultivation space.
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C. One dollar for each gram of cannabis concentrate produced or manufactured.

D. One dollar for each unit of cannabis-infused product other than cannabis concentrate produced or manufactured and packaged or intended for individual sale.

Beginning July 1, 2017 and each July 1 thereafter, the amounts in subsections B, C, and D of this section shall be automatically adjusted based on the average percentage change in the Consumer Price Index for "all urban consumers" in the Los Angeles-Anaheim-Riverside area for the calendar year which ends in the previous fiscal year.
§ 3.48.020 Definitions.

For purposes of this chapter:
"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 marijuana. "Cannabis" also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. "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, nor paraphernalia used to consume cannabis products. For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code.
"Cannabis business" means any person engaged in commercial cannabis activity, including cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of cannabis or a product containing cannabis. A cannabis business does not include any business whose activities are limited exclusively to the production or sale of cannabis accessories.
"Cannabis concentrate" means cannabis that has undergone a process to concentrate the cannabinoid active ingredient, thereby increasing the product's potency. Types of cannabis concentrate include, but are not limited to, hash, butane hash oil, CO2 oil, kief, dry sift, Rick Simpson oil, and rosin. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
"Cannabis cultivation space" means the gross square footage of any building, facility or site, including any limited access area, where cannabis cultivation and related activities occur. "Cannabis cultivation space" includes, without limitation, areas used for growing, planting, seeding, germinating, lighting, warming, cooling, aerating, fertilizing, watering, irrigating, tipping, pinching, cropping, curing or drying cannabis, and areas used for storing products, supplies or equipment related to any such activities. "Cannabis cultivation space" does not 45 4922-9366-1399 v1
include any part of a building, facility or site where cannabis cultivation and related activities occurs that is used for cannabis business activities that are separately taxed under this chapter. "Cannabis-infused product" means a product infused with cannabis that is intended for use or consumption other than by smoking, including, but not limited to, edible products, oils, waxes, ointments, salves, tinctures, capsules, suppositories, dermal patches, cartridges or other product containing cannabis concentrate or usable cannabis that has been processed so that the dried leaves and flowers are integrated into other material.
"City manager" means the city manager or their designee. "Dispensary" means a facility where cannabis, cannabis concentrate, cannabis extracts, and cannabis-infused products are sold, either individually or in any combination, for retail sale, and may also include the sale of devices for the use of cannabis, cannabis concentrate, cannabis extracts, and cannabis-infused products, including an establishment that delivers cannabis and cannabis products as part of a retail sale.
"Gross receipts," except as otherwise specifically provided, means the total amount actually received or receivable from:

1. all sales;

2. membership dues;

3. reimbursements;

4. the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of cannabis and cannabis products;

5. compensation received by a cannabis distributor for subdivision, repackaging, or redistribution services performed for cannabis or cannabis products received in a single wholesale shipment or acquisition event, where such activities result in the subsequent distribution of such cannabis or cannabis products in smaller quantities to multiple cannabis businesses; and

6. the monetary value of in-kind contributions;

7. discounts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated.

Included in "gross receipts" shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded therefrom: (1) cash discounts allowed and taken on sales; (2) credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price shall be included as gross receipts; (3) any tax 46 4922-9366-1399 v1
required by law to be included in or added to the purchase price and collected from the consumer or purchaser; (4) such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts; (5) receipts from investments where the holder of the investment receives only interest and/or dividends, royalties, annuities and gains from the sale or exchange of stock or securities, provided such items are directly derived exclusively from the investment of capital and not from the sale of property other than financial instruments, or from the provision of services, to any person; (6) receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the cannabis business in the regular course of the cannabis business' business; (7) whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected, they shall be included in the amount of gross receipts for the period when they are recovered; (8) receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; (9) amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected; (10) credit and debit card processing fees, provided such fees are separately stated and not retained by the cannabis business. These agents or trustees must provide the finance department with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees. “Local licensing authority” means the city manager.
"Medicinal and Adult-Use Cannabis Regulation and Safety Act" or "MAUCRSA" means Division 10 of the California Business and Professions Code. "Person" means an 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 includes the plural as well as the singular number. § 3.48.030 Payment obligation.

All cannabis businesses subject to this chapter must pay the full tax imposed by this chapter regardless of any rebate, exemption, incentive, or other reduction set forth elsewhere in this code, except as enacted pursuant to Section 3.48.040 of this code or as required by California or federal law. Failure to pay the tax shall be subject to penalties, interest charges, and assessments as the city council may establish and the city may use any or all other code compliance remedies provided in the Charter and this code, including enforcement through Chapter 5.88 as it relates to the renewal, modification, suspension, revocation, or transfer of any local cannabis license. No provision in this code can lower the tax rate set forth in this sectionchapter or otherwise reduce the amount of taxes paid hereunder unless the provision, e.g., resolution, specifically states that the reduction applies.
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§ 3.48.040 City council authorization to adjust rates.

The city council may impose the tax authorized by this chapter at a lower rate and, notwithstanding Section 3.48.030 of this code, may establish exemptions, incentives, or other reductions, and penalties and interest charges or assessments for failure to pay the tax in a timely manner, as otherwise allowed by the code and California law. No action by the city council under this section shall prevent it from later increasing the tax or removing any exemption, incentive, or reduction, and restoring the maximum tax specified in this chapter. § 3.48.050 Payment of tax does not authorize activity.

The payment of the tax required pursuant to this chapter shall not be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner.

Nothing in this chapter shall be applied or construed as authorizing the sale of cannabis by any illegal or unlawful business, or any business in violation of any ordinance of the city. § 3.48.060 Cannabis tax is not a sales tax.

The cannabis tax provided for under the provisions of this chapter is not a sales or use tax and shall not be calculated or assessed as such. The cannabis tax shall not be separately identified or otherwise specifically assessed or charged to any purchaser. § 3.48.070 Amendments and administration.

A. Any amendment to Section 3.48.010 to increase the tax above the rate expressly provided in such section shall not become effective until such amendment is approved by the voters. The voters expressly authorize the city council to amend, modify, change, or revise any other provision of this chapter as the city council deems in the best interest of the city.

B. The city manager or the city manager's designee may promulgate rules, regulations, and procedures to implement and administer this chapter to ensure the efficient and timely collection of the tax imposed by this chapter, including, without limitation, formulation and implementation of penalties and interest to be assessed for failure to pay the tax as provided.

C. The city manager or the city manager's designee shall review the cannabis taxes imposed by this chapter on a quarterly basis and convene a meeting and/or publish a report/minutes detailing the total amount of revenue raised from the cannabis tax.

D. Pursuant to California Constitution Article XIIIB, the appropriation limit for the city is increased to the maximum extent over the maximum period of time allowed under law consistent with the revenues generated by the cannabis tax.
§ 3.48.080 Returns and remittances.

The tax shall be due and payable as follows:

A. All cannabis businesses subject to this chapter shall, on or before the last day of the month following the close of each calendar month, or such different reporting period as may be 48 4922-9366-1399 v1
established by the city manager or the city manager's designee, file a tax return with the city manager or the city manager's designee on forms provided by the city manager or the city manager's designee, of the amount of tax owed for the reporting period. If the due date falls on a Saturday, Sunday, or federal holiday, the due date for both the tax return and payment is extended to the next business day. A return filed and taxes paid by that extended due date are timely, and no penalty or interest shall accrue solely because of the extension.

B. The return shall be filed whether or not taxes are owed during the month.

C. Each such return shall contain a declaration under penalty of perjury, executed by the cannabis business or authorized agent, that to the best of the signatory's knowledge, the statements in the return are true, correct and complete.

D. At the time the return is filed, the full amount of the tax owed for the reporting period shall be remitted to the city manager or the city manager's designee.

E. Returns and accrued tax payments are due immediately upon cessation of business for any reason.

F. Returns and taxes not received by the city manager or the city manager's designee on or before the due date as provided in this section are delinquent and subject to the penalties imposed under Section 3.48.090.

G. Returns filed and taxes remitted by mail shall be deemed timely filed only if the envelope or similar container enclosing the returns and taxes is addressed to the city manager or the city manager's designee, has sufficient postage, and bears a United States postmark or a postage meter imprint prior tobefore midnight on the last day for reporting and remitting without penalty.

If the envelope or other container bears a postage meter imprint as well as a United States Post Office cancellation mark, the latter shall govern in determining whether the filing and remittance are timely. If the city manager is provided with credible evidence that a return or payment was deposited in the United States mail on or before the required due date, the city manager may, at their discretion, consider the filing or remittance to have been made on time.

H. The city manager or the city manager's designee is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter; and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.
§ 3.48.090 Failure to pay tax.

A. Any person who fails or refuses to pay any tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest as follows:

1. A penalty equal to twenty-five percent of the amount of the tax in addition to the amount of the tax, plus interest at the rate of one-half percent per month, or fraction thereof, calculated from the due date on the total unpaid balance, including tax and penalty, until paid.
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B. Whenever a check is submitted in payment of a tax and the check is subsequently returned unpaid by the bank upon which the check is drawn, and the check is not redeemed prior tobefore the due date, the cannabis business will be liable for the tax amount due plus penalties and interest as provided for in this section plus any additional banking fees or charges allowed under state law.

C. The tax due shall be that amount due and payable from January 1, 2014, or the first date on which the cannabis business first operated in the city, whichever date occurred last, together with applicable penalties and interest calculated in accordance with subsection A of this section.

D. The city manager may waive the first penalty of twenty-five percent each imposed upon any person if:

1. The person provides evidence satisfactory to the city manager that failure to pay timely was due to circumstances beyond the control of the person and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, and the person paid the delinquent business tax and accrued interest owed the city prior tobefore applying to the city manager for a waiver.

2. The waiver provisions specified in this subsection shall not apply to interest accrued on the delinquent tax and a waiver shall be granted only once to the same person or entity during any twenty-four-month period.

E. A failure to pay taxes imposed under this chapter is a violation subject to enforcement action under Chapter 5.88, including denial of renewal, transfer, or modification, as well as the potential of a suspension or revocation of a local license. § 3.48.100 Refunds.

A. No refund shall be made of any tax collected pursuant to this chapter, except as provided in this section.

B. No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution, or other termination of a cannabis business.

C. Any person entitled to a refund of taxes paid pursuant to this chapter may elect in writing to have such refund applied as a credit against the cannabis business' taxes for the next calendar month.

D. Whenever the amount of any tax, penalty, or interest has been overpaid, paid more than once, or has been erroneously or improperly collected or received by the city under this chapter, the overpayment may be refunded as provided in subsections E and F, provided a claim in writing under penalty of perjury stating the specific grounds upon which the claim is founded is filed with the city manager or the city manager's designee within three years of the date of payment.

E. The city manager or the city manager's designee shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant therefor 50 4922-9366-1399 v1
refuses to allow such examination of claimant's books and business records after request by the city manager or the city manager's designee to do so.

F. The city manager or the city manager's designee shall initiate a refund of any tax that has been overpaid or erroneously collected whenever the overpayment or erroneous collection is uncovered by a city audit of tax receipts. In the event that the tax was erroneously paid and the error is attributable to the city, the entire amount of the tax erroneously paid shall be refunded to the claimant. If the error is attributable to the claimant, the city shall retain the amount set forth in thisby resolution of the city council from the amount to be refunded to cover expenses. § 3.48.110 Enforcement.

A. It shall be the duty of the city manager to enforce each and all of the provisions of this chapter. The chief of police department or code enforcement shall render such assistance in the enforcement of this chapter as may from time to time be required by the city manager.

B. For purposes of administration and enforcement of this chapter generally, the city manager, with the concurrence of the city attorney, may from time to time promulgate administrative rules and regulations.

C. The city manager shall havehas the power to audit and examine all books and records of cannabis businesses as well as persons engaged in the operation of a cannabis business, including both state and federal income tax returns, California sales tax returns, or other evidence documenting the gross receipts of a cannabis business or persons engaged in the operation of a cannabis business, for the purpose of ascertaining the amount of tax, if any, required to be paid by the provisions of this chapter, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to the provisions of this chapter. If such cannabis business or person, after written demand by the city manager, refuses to make available for audit, examination or verification such books, records, or equipment as the city manager requests, the city manager may, after full consideration of all information within the city manager's knowledge concerning the cannabis business and its business and activities of the person so refusing, make an assessment in the manner provided in Section 3.48.090120.

D. The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any state law requiring the payment of all taxes.

E. Any person violating this chapter or any rules promulgated pursuant to this chapter, or knowingly or intentionally misrepresenting to any officer or employee of the city any material fact in procuring a certificate or document from the city shall be guilty of an infraction violation and upon conviction thereof shall be punishable by a fine not more than five hundred dollars, in addition to any other penalties or fees imposed pursuant to this chapter.

F. For purposes of administration and enforcement of this chapter,The city manager may share audit findings or tax delinquency status may be shared with the local licensing authority for purposes of administration and enforcement of Chapter 5.88, including licensing approval, renewal, suspension, revocation, or transfer of any local cannabis license. 51 4922-9366-1399 v1
§ 3.48.120 Debts—Deficiencies—Assessments.

A. The amount of any tax, penalties, and interest imposed by the provisions of this chapter shall be deemed a debt to the city and any person operating a cannabis business without first having procured a business license pursuant to Chapter 3.28, local license pursuant to Chapter 5.88, and conditional use permit pursuant to Chapter 9.108 of this code shall be liable in an action in the name of the city in any court of competent jurisdiction for the amount of the tax, and penalties and interest imposed on such cannabis business.

B. Any and all alleged deficiencies identified by the city manager shall be addressed in accordance with Section 3.26.150 of this code; except that the city manager may engage in any of the privileges or assume any of the duties delegated to the tax administrator. § 3.48.130 Exemptions.

The tax imposed in Section 3.48.010.A of this chapter shall not apply to any nonprofit organization that is exempted from taxes by Revenue and Taxation Code Chapter 4 (commencing with Section 23701) of Part 11 of Division 2, or of Internal Revenue Code of 1986, Chapter 1 of Subtitle A, Subchapter F (commencing with Section 501), or the successor of either, or to any minister, clergyman, Christian Science practitioner, rabbi, or priest of any religious organization that has been granted an exemption from federal income tax by the United States Commissioner of Internal Revenue as an organization described in Internal Revenue Code Section 501(c)(3) or a successor to that section.
§ 3.48.140 Tax payment arrangements.

The city finds that authorizing tax payment arrangement agreements ("agreements") with individuals or entities delinquent in cannabis-related tax payments serves the best interests of the city. These agreements offer a practical means of enhancing tax recovery efforts while also affording taxpayers a pathway to financial recovery and future compliance.

A. The city manager, or designee, may offer tax payment arrangements to individuals or businesses with outstanding cannabis-related tax obligations.

B. The city manager, or designee, shall have the sole authority to negotiate, execute and bind the city into a tax payment arrangement agreements, and any amendments thereto, for the full amount of the taxes owed.

C. The tax payment arrangement agreement shall be prepared to the satisfaction of the city manager, or designee. The city attorney shall review and approve the agreement and any amendments as to form.

D. Entering into a payment agreement does not prevent the city from pursuing any other methods it deems necessary to recover unpaid taxes.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY, CALIFORNIA, AMENDING CHAPTERS 3.48 AND 5.88 OF THE CATHEDRAL CITY

MUNICIPAL CODE RELATING TO CANNABIS TAX ADMINISTRATION, CANNABIS

BUSINESS LICENSING AND OPERATIONS, NONCANNABIS FOOD AND

BEVERAGE SERVICE AND LIVE PERFORMANCES PURSUANT TO ASSEMBLY BILL 1775, AND THE DEADLINE FOR INSTALLATION OF ODOR CONTROL

EQUIPMENT
WHEREAS, the City of Cathedral City is a charter city authorized to regulate municipal affairs and to exercise its police power under Article XI, Sections 5 and 7 of the California Constitution; and
WHEREAS, the City imposes a cannabis business tax under Chapter 3.48 and regulates cannabis business licensing and operations under Chapter 5.88 of the Cathedral City Municipal Code; and
WHEREAS, Business and Professions Code Section 26200 preserves local authority to regulate commercial cannabis activities, subject to applicable State law; and WHEREAS, Assembly Bill 1775 amended Business and Professions Code Section 26200 to allow local authorization of non-cannabis food and beverage preparation or sales and live musical or other performances, including ticket sales, within approved cannabis consumption areas, subject to statutory conditions; and WHEREAS, the City desires to authorize those activities within approved indoor consumption areas while retaining applicable health, safety, land use, licensing, and enforcement requirements; and
WHEREAS, the Cannabis Task Force reviewed proposed amendments and provided input concerning tax deadlines, licensing qualifications, administrative delegation, and events; and
WHEREAS, the City desires to clarify tax reporting and collection, ownership and management review, actual business operations, appeals, inspections, and enforcement; and
WHEREAS, the City desires to measure the installation period for additional odor control equipment for eligible existing licenses from approval of the odor control plan and to establish March 31, 2027 as the final installation deadline, while retaining plan approval, performance, maintenance, certification, and nuisance enforcement requirements; and
WHEREAS, Section 3.48.070 authorizes amendments to the administration of the cannabis tax subject to the limitations stated therein, and this ordinance does not increase the maximum tax rates stated in Section 3.48.010.
53 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES ORDAIN AS FOLLOWS:

SECTION 1. RECITALS
The foregoing recitals are incorporated by reference into this ordinance as findings of the City Council.

SECTION 2. ENVIRONMENTAL DETERMINATION
The City Council finds that this ordinance is exempt from review under the California Environmental Quality Act pursuant to Section 15061(b)(3) of the State CEQA Guidelines. The ordinance updates tax administration, licensing, and operating standards for regulated cannabis businesses. The food, beverage, and performance activities authorized by this ordinance are limited to approved indoor consumption areas and remain subject to existing occupancy, fire, building, noise, security, ventilation, and odor requirements. The ordinance does not authorize expansion of a licensed premises or outdoor cannabis consumption. The revised equipment installation deadline does not suspend odor performance standards or public nuisance enforcement. On that basis, the City Council finds that there is no possibility that adoption of this ordinance may have a significant effect on the environment. Any subsequent proposal requiring a discretionary approval remains subject to applicable environmental review.

SECTION 3. AMENDMENT OF CHAPTER 3.48
Chapter 3.48 (Cannabis Tax) of the Cathedral City Municipal Code is amended to read in full as follows:
“§ 3.48.005 Purpose and intent.

This chapter is intended to impose a tax on lawful cannabis businesses operating in the city, consistent with the city's authority in Government Code Section 37101. Cannabis businesses operating under California's medical marijuana laws (Health and Safety Code Sections 11362.7 through 11362.85) are subject to the tax imposed by this chapter. This tax shall apply to cannabis businesses engaged in commercial cannabis activity for nonmedical uses, as defined in the MAUCRSA. § 3.48.010 Imposition of tax.

A. Fifteen cents for each one dollar of gross receipts or fractional part thereof received by a dispensary or by any other cannabis business with activities other than cannabis cultivation or manufacturing.
54 B. Twenty-five dollars for each square foot or fractional part thereof of cannabis cultivation space.

C. One dollar for each gram of cannabis concentrate produced or manufactured.

D. One dollar for each unit of cannabis-infused product other than cannabis concentrate produced or manufactured and packaged or intended for individual sale.
§ 3.48.020 Definitions.

A cannabis business does not include any business whose activities are limited exclusively to the production or sale of cannabis accessories. "Cannabis concentrate" means cannabis that has undergone a process to concentrate the cannabinoid active ingredient, thereby increasing the product's potency. Types of cannabis concentrate include, but are not limited to, hash, butane hash oil, CO2 oil, kief, dry sift, Rick Simpson oil, and rosin. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
"Cannabis cultivation space" means the gross square footage of any building, facility or site, including any limited access area, where cannabis cultivation and related activities occur. "Cannabis cultivation space" includes, without limitation, areas used for growing, planting, seeding, germinating, lighting, warming, cooling, aerating, fertilizing, watering, irrigating, tipping, pinching, cropping, curing or drying cannabis, and areas used for storing products, supplies or equipment related to any such activities. "Cannabis cultivation space" does not include any part of a building, facility or site where cannabis cultivation and related activities occur that is used for cannabis business activities that are separately taxed under this chapter.
55 "Cannabis-infused product" means a product infused with cannabis that is intended for use or consumption other than by smoking, including, but not limited to, edible products, oils, waxes, ointments, salves, tinctures, capsules, suppositories, dermal patches, cartridges or other product containing cannabis concentrate or usable cannabis that has been processed so that the dried leaves and flowers are integrated into other material. "City manager" means the city manager or their designee. "Dispensary" means a facility where cannabis, cannabis concentrate, cannabis extracts, and cannabis-infused products are sold, either individually or in any combination, for retail sale, and may also include the sale of devices for the use of cannabis, cannabis concentrate, cannabis extracts, and cannabis-infused products, including an establishment that delivers cannabis and cannabis products as part of a retail sale. “Gross receipts," except as otherwise specifically provided, means the total amount actually received or receivable from:

1. all sales;

2. membership dues;

3. reimbursements;

6. the monetary value of in-kind contributions;

7. discounts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated.

Included in "gross receipts" shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded therefrom: (1) cash discounts allowed and taken on sales; (2) credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price shall be included as gross receipts; (3) any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; (4) such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts; (5) receipts from investments where the holder of the investment receives only interest and/or dividends, royalties, annuities and gains from the sale or exchange of stock or securities, provided such items are directly derived exclusively from the investment of capital and not from the sale of property other than financial instruments, or from the provision of services, to any person; (6) 56 receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the cannabis business in the regular course of the cannabis business' business; (7) whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected, they shall be included in the amount of gross receipts for the period when they are recovered; (8) receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; (9) amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected; (10) credit and debit card processing fees, provided such fees are separately stated and not retained by the cannabis business. These agents or trustees must provide the finance department with the names and the addresses of the others and the amounts paid to them.

This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees.
“Local licensing authority” means the city manager.
"Medicinal and Adult-Use Cannabis Regulation and Safety Act" or "MAUCRSA" means Division 10 of the California Business and Professions Code. "Person" means an 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 includes the plural as well as the singular number.
§ 3.48.030 Payment obligation.

All cannabis businesses subject to this chapter must pay the full tax imposed by this chapter regardless of any rebate, exemption, incentive, or other reduction set forth elsewhere in this code, except as enacted pursuant to Section 3.48.040 of this code or as required by California or federal law. Failure to pay the tax shall be subject to penalties, interest charges, and assessments as the city council may establish and the city may use any or all other code compliance remedies provided in the Charter and this code, including enforcement through Chapter 5.88 as it relates to the renewal, modification, suspension, revocation, or transfer of any local cannabis license. No provision in this code can lower the tax rate set forth in this chapter or otherwise reduce the amount of taxes paid hereunder unless the provision, e.g., resolution, specifically states that the reduction applies.
§ 3.48.040 City council authorization to adjust rates.

The city council may impose the tax authorized by this chapter at a lower rate and, notwithstanding Section 3.48.030 of this code, may establish exemptions, incentives, or other reductions, and penalties and interest charges or assessments for failure to pay the tax in a timely manner, as otherwise allowed by the code and California law. No action by the city council under this section shall prevent it from later increasing the tax or removing 57 any exemption, incentive, or reduction, and restoring the maximum tax specified in this chapter.
§ 3.48.050 Payment of tax does not authorize activity.

The payment of the tax required pursuant to this chapter shall not be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this chapter shall be applied or construed as authorizing the sale of cannabis by any illegal or unlawful business, or any business in violation of any ordinance of the city.
§ 3.48.060 Cannabis tax is not a sales tax.

Any amendment to Section 3.48.010 to increase the tax above the rate expressly provided in such section shall not become effective until such amendment is approved by the voters. The voters expressly authorize the city council to amend, modify, change, or revise any other provision of this chapter as the city council deems in the best interest of the city.

The city manager may promulgate rules, regulations, and procedures to implement and administer this chapter to ensure the efficient and timely collection of the tax imposed by this chapter, including, without limitation, formulation and implementation of penalties and interest to be assessed for failure to pay the tax as provided.

The city manager shall review the cannabis taxes imposed by this chapter on a quarterly basis and convene a meeting and/or publish a report/minutes detailing the total amount of revenue raised from the cannabis tax.

Pursuant to California Constitution Article XIIIB, the appropriation limit for the city is increased to the maximum extent over the maximum period of time allowed under law consistent with the revenues generated by the cannabis tax. § 3.48.080 Returns and remittances.

The tax shall be due and payable as follows:

A. All cannabis businesses subject to this chapter shall, on or before the last day of the month following the close of each calendar month, or such different reporting period as may be established by the city manager, file a tax return with the city manager on forms provided by the city manager, of the amount of tax owed for the reporting period. If the due date falls on a Saturday, Sunday, or federal holiday, the due date for both the tax return and payment is extended to the next business day. A return filed and taxes paid by that extended due date are timely, and no penalty or interest shall accrue solely because of the extension.

B. The return shall be filed whether or not taxes are owed during the month. 58 C. Each such return shall contain a declaration under penalty of perjury, executed by the cannabis business or authorized agent, that to the best of the signatory's knowledge, the statements in the return are true, correct and complete.

D. At the time the return is filed, the full amount of the tax owed for the reporting period shall be remitted to the city manager.

E. Returns and accrued tax payments are due immediately upon cessation of business for any reason.

F. Returns and taxes not received by the city manager on or before the due date as provided in this section are delinquent and subject to the penalties imposed under Section 3.48.090.

G. Returns filed and taxes remitted by mail shall be deemed timely filed only if the envelope or similar container enclosing the returns and taxes is addressed to the city manager, has sufficient postage, and bears a United States postmark or a postage meter imprint before midnight on the last day for reporting and remitting without penalty. If the envelope or other container bears a postage meter imprint as well as a United States Post Office cancellation mark, the latter shall govern in determining whether the filing and remittance are timely. If the city manager is provided with credible evidence that a return or payment was deposited in the United States mail on or before the required due date, the city manager may, at their discretion, consider the filing or remittance to have been made on time.

H. The city manager is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter; and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.
§ 3.48.090 Failure to pay tax.

A. Any person who fails or refuses to pay any tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest as follows:

B. Whenever a check is submitted in payment of a tax and the check is subsequently returned unpaid by the bank upon which the check is drawn, and the check is not redeemed before the due date, the cannabis business will be liable for the tax amount due plus penalties and interest as provided for in this section plus any additional banking fees or charges allowed under state law.

D. The city manager may waive the first penalty of twenty-five percent each imposed upon any person if:

1. The person provides evidence satisfactory to the city manager that failure to pay timely was due to circumstances beyond the control of the person and occurred notwithstanding the exercise of ordinary care and the absence of 59 willful neglect, and the person paid the delinquent business tax and accrued interest owed the city before applying to the city manager for a waiver.

A. No refund shall be made of any tax collected pursuant to this chapter, except as provided in this section.

B. No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution, or other termination of a cannabis business.

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

F. The city manager shall initiate a refund of any tax that has been overpaid or erroneously collected whenever the overpayment or erroneous collection is uncovered by a city audit of tax receipts. In the event that the tax was erroneously paid and the error is attributable to the city, the entire amount of the tax erroneously paid shall be refunded to the claimant. If the error is attributable to the claimant, the city shall retain the amount set forth by resolution of the city council from the amount to be refunded to cover expenses.
§ 3.48.110 Enforcement.

A. It shall be the duty of the city manager to enforce each and all of the provisions of this chapter. The police department or code enforcement shall render such assistance in the enforcement of this chapter as may from time to time be required by the city manager.

C. The city manager has the power to audit and examine all books and records of cannabis businesses as well as persons engaged in the operation of a cannabis 60 business, including both state and federal income tax returns, California sales tax returns, or other evidence documenting the gross receipts of a cannabis business or persons engaged in the operation of a cannabis business, for the purpose of ascertaining the amount of tax, if any, required to be paid by the provisions of this chapter, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to the provisions of this chapter. If such cannabis business or person, after written demand by the city manager, refuses to make available for audit, examination or verification such books, records, or equipment as the city manager requests, the city manager may, after full consideration of all information within the city manager's knowledge concerning the cannabis business and its business and activities of the person so refusing, make an assessment in the manner provided in Section 3.48.120.

F. For purposes of administration and enforcement of this chapter, audit findings or tax delinquency status may be shared with the local licensing authority for purposes of administration and enforcement of Chapter 5.88, including licensing approval, renewal, suspension, revocation, or transfer of any local cannabis license.
§ 3.48.120 Debts—Deficiencies—Assessments.

3.28, local license pursuant to Chapter 5.88, and conditional use permit pursuant to Chapter 9.108 of this code shall be liable in an action in the name of the city in any court of competent jurisdiction for the amount of the tax, and penalties and interest imposed on such cannabis business.

The tax imposed in Section 3.48.010.A of this chapter shall not apply to any nonprofit organization that is exempted from taxes by Revenue and Taxation Code Chapter 4 (commencing with Section 23701) of Part 11 of Division 2, or of Internal Revenue Code of 1986, Chapter 1 of Subtitle A, Subchapter F (commencing with Section 61 501), or the successor of either, or to any minister, clergyman, Christian Science practitioner, rabbi, or priest of any religious organization that has been granted an exemption from federal income tax by the United States Commissioner of Internal Revenue as an organization described in Internal Revenue Code Section 501(c)(3) or a successor to that section.
§ 3.48.140 Tax payment arrangements.

A. The city manager may offer tax payment arrangements to individuals or businesses with outstanding cannabis-related tax obligations.

B. The city manager shall have the sole authority to negotiate, execute and bind the city into a tax payment arrangement agreement, and any amendments thereto, for the full amount of the taxes owed.

C. The tax payment arrangement agreement shall be prepared to the satisfaction of the city manager. The city attorney shall review and approve the agreement and any amendments as to form.

D. Entering into a payment agreement does not prevent the city from pursuing any other methods it deems necessary to recover unpaid taxes.

E. A single tax payment arrangement agreement may be authorized and maintained per ownership associated with a cannabis license. In the event of a change in ownership, any existing agreement may be deemed void at the sole discretion of the city manager.”
SECTION 4. AMENDMENT OF CHAPTER 5.88
Chapter 5.88 (Cannabis Businesses) of the Cathedral City Municipal Code is amended to read in full as follows:
“§ 5.88.010 Purpose and intent.

A. This chapter provides for the regulation and licensing of medicinal and adult-use cannabis businesses throughout the city in conformance with applicable State and local laws and regulations pertaining to medicinal and adult-use cannabis.

B. The city council finds that it is necessary for Cathedral City to adopt local licensing standards for medicinal and adult-use cannabis businesses for the purpose of controlling and regulating the cultivation, distribution, transport, storage, manufacturing, processing, and sale of medicinal cannabis and medicinal cannabis products to qualified patients, and commercial cannabis activity for nonmedical uses by adults twenty-one years of age and over.

C. The purpose of this chapter is to regulate all commercial cannabis activity in Cathedral City, as defined in the MAUCRSA, to the extent authorized by State law and in a manner designed to minimize negative impacts on the city and neighboring uses, and promote the health, safety, morals, and general welfare of residents and businesses within the city.
62 § 5.88.015 Findings.

Except as otherwise specifically provided herein, this chapter incorporates the requirements and procedures set forth in the MAUCRSA. In the event of any conflict between the provisions of this chapter and the provisions of the MAUCRSA or any other applicable state or local law, the more restrictive provision shall control.

Except as expressly stated herein, cannabis businesses must comply with all other city codes and regulations. Nothing in this chapter shall be construed as permitting a cannabis business to operate at any time in a manner that is in violation of any other applicable state and local law.
§ 5.88.025 Definitions.

Unless otherwise defined herein, the terms in this chapter have the same meaning as set forth in the MAUCRSA and any rules promulgated pursuant thereto. In addition, the following terms are defined as follows:
"Cannabis business" means any person engaged in commercial cannabis activity. "Cannabis tax" means any tax, penalty, interest, or other amount due under Chapter 3.48 of this code in connection with commercial cannabis activity. "Certificate of accreditation" means a certificate issued by an accrediting body to a licensed testing laboratory, entity, or site to be registered in the state. "City" means Cathedral City, California.
"City manager" means the city manager of the city or the city manager’s duly authorized designee.
"Commercial cannabis activity" means any activity, recreational or medicinal, including the cultivation, possession, manufacturing, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and/or cannabis products as provided in this chapter.
"Community development director" means the community development director of the city or duly authorized designee.
"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
"Delivery" means the commercial transfer of cannabis or cannabis products to a customer.
"Dispensary" means a cannabis business that engages in the retail sale and delivery of cannabis or cannabis products to customers. A dispensary, as that term is used in this code, includes a "retailer" and a "microbusiness" authorized to engage in retail sale under the MAUCRSA.
63 "Distribution" means the procurement, wholesale, and transport of cannabis and cannabis products between licensees, and may include the storage of packaged goods, coordination of compliance testing, packaging, re-packaging, labeling, and re-labeling. "Distributor" means a cannabis business that engages in the distribution and transportation of cannabis and cannabis products to other cannabis businesses. "Good cause" means:

3. The applicant or licensee has knowingly made false statements, misrepresentations or material omissions on a submitted application or any other document submitted to the city;

4. The criminal history of an owner or manager of the applicant or licensee indicates that the owner or manager lacks good moral character;

5. An owner of the applicant or licensee is a licensed physician providing physician's recommendation to qualified patients for medicinal cannabis;

6. The applicant, licensee, or any owner or manager of the applicant or licensee, is a person who is prohibited from holding the license under this chapter;

7. The premises proposed to be licensed or the licensed premises is located on land that is owned by the United States and held in trust for any federallyrecognized Indian tribe or any member of the tribe, or that is subject to a restriction on alienation imposed by the United States;

9. For renewals, suspensions and revocations, the licensee fails to allow inspection of the security recordings, activity logs, or business records of the licensed premises by city officials; or

10.For renewals, suspensions, and revocations, the licensee is considered noncompliant with Chapter 3.48 of this code due to failure to remit cannabis business taxes owed from dispensary, cultivation, manufacturing, or any other cannabis business operations.
"Good moral character." In determining good moral character, the following standards will apply:

1. A person who has been convicted of any of the following offenses is not considered to be of good moral character:
a. A violent felony, as specified in Penal Code Section 667.5(c); b. A serious felony, as specified in Penal Code Section 1192.7(c); 64 c. A felony or misdemeanor conviction involving fraud, deceit, or embezzlement;
d. A felony or misdemeanor conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; e. A felony or misdemeanor conviction for selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor;
f. A felony conviction for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code. g. A misdemeanor conviction described in subparagraphs c, d, or e disqualifies a person under this paragraph only if the conviction, or the person’s release from incarceration for that conviction, whichever is later, occurred within seven years before the city receives the application under review, including a renewal application. An older misdemeanor conviction described in those subparagraphs does not disqualify the person under this paragraph.

2. The city may find that a person lacks good moral character if, within the three years before the application, the person, or a business in which the person was an owner or manager, had a cannabis license revoked, or denied for cause, by any government agency. Surrendering a license during revocation proceedings counts as a revocation. In deciding, the city must consider: a. the seriousness of the conduct; b. the person's role in it; c. whether the problem has been corrected; and d. whether the agency later allowed the person to reapply.

3. Except as provided in paragraph 1 of this definition, and notwithstanding Chapter 2 of Division 1.5 of the California Business and Professions Code, a prior conviction where the sentence, including any term of probation, incarceration, or supervised release is completed for possession of, possession for sale, sale, manufacture, transportation, or cultivation of cannabis shall not be the sole ground for a determination that a person lacks good moral character.

4. An owner or manager of a licensee who is convicted of any controlled substance felony subsequent to issuance of a local license shall be deemed to lack good moral character.
"Licensed premises" means a premises for which a local license has been issued pursuant to this chapter.
"Licensee" means a person who has been issued a local license pursuant to this chapter. "Limited access area" means a building, room or other area that is part of the licensed premises where cannabis is grown, cultivated, stored, weighed, displayed, packaged, or sold to other cannabis businesses with limited access to only authorized personnel. "Local license" means a license granted by the local licensing authority, pursuant to this chapter.
"Local licensing authority" means the city manager.
65 "Manager" means an individual who has day-to-day operational control over a commercial cannabis business or over commercial cannabis activity conducted on the licensed premises, whether that individual acts as an employee, an independent contractor, or in another capacity.
"Manufacturing" means a cannabis operation that engages in extraction and/ or infusion processes, including processing, preparing, holding, storing, packaging, or labeling of cannabis products. "Manufacturing" also includes any processing, preparing, holding, or storing of components and ingredients. Manufacturing operations may involve the use of chemical solvents, heating, mixing, or other processes. "Medicinal and Adult-Use Cannabis Regulation and Safety Act" or "MAUCRSA" means Division 10 of the California Business and Professions Code. "Medicinal cannabis patient" means both a qualified patient without an identification card and an ID card holder.
"Non-supervisorial employee" means an individual employed by the licensee that does not have the authority to hire, fire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment. For the purposes of this definition, an individual shall not be considered an employee of a licensee if the individual is working for the licensee pursuant to a written agreement that expressly states the individual is an independent contractor.
"Odor control equipment" means any equipment utilized to counteract the distinguishable odor of the cannabis plant.
"Odor control plan" means a written plan prepared by a licensed professional engineer or certified industrial hygienist that describes the odor emitting activities or processes specific to a cannabis business together with a description of the methods used for odor control to ensure that odors are not detected off site. "Owner" means any of the following:

1. A person with an aggregate ownership interest of 20 percent or more in the cannabis business applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. For purposes of this section, “aggregate” means the total ownership interest held by a single person through any combination of individually held ownership interests in a commercial cannabis business and ownership interests in an entity that has an ownership interest in the same commercial cannabis business. For example, a person who owns 10 percent of the stock in a commercial cannabis business as an individual shareholder and 100 percent of the stock in an entity that owns 10 percent of the stock in the same commercial cannabis business has a 20 percent aggregate ownership interest in the commercial cannabis business.

2. An individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to:
a. A member of the board of directors of a nonprofit.
66 b. A general partner of a commercial cannabis business that is organized as a partnership.
c. A non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company. d. The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.
e. The chief executive officer, president or their equivalent, or an officer, director, vice president, general manager or their equivalent. "Physician" means an individual who possesses a license in good standing to practice medicine or osteopathy from the state of California.
"Primary caregiver" has the meaning set forth in Section 11362.7(d) of the California Health and Safety Code.
"Qualified patient" has the meaning set forth in Section 11362.7(f) of the California Health and Safety Code.
"Seed to sale software" means METRC, the statewide track and trace system that the Department of Cannabis Control has designated under Business and Professions Code Section 26067 to record the movement of cannabis and cannabis products from cultivation through sale using the unique identifiers issued under Business and Professions Code Section 26069.
"State law(s)" means and includes California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.85 (Medicinal Marijuana Program Act); the MAUCRSA, and all other applicable laws and regulations of the state of California.
"State license" means a state license issued under MAUCRSA, and includes both an Alicense and an M-license, as well as a testing laboratory license. "State licensing authority" means the state agency responsible for the issuance, renewal, or reinstatement of a state license, or the state agency authorized to take disciplinary action against a state licensee.
"Tax return" means any return, report, or filing required pursuant to Chapter 3.48 of this code that is submitted to the city for the purpose of reporting and remitting cannabis business taxes. A “tax return” includes documentation of gross receipts and taxable activity from cannabis dispensary, cultivation, or manufacturing operations, and is used to determine compliance with the cannabis tax obligations imposed by that chapter. "Testing laboratory" means a facility, laboratory, entity, or site that: (i) offers or performs tests of cannabis or cannabis products; (ii) offers no service other than such tests; (iii) sells no products, excepting only testing supplies and materials; (iv) is accredited by any necessary accrediting body that is independent from all other persons involved in the cannabis industry in the state; and (v) is registered with any necessary state agency required by law.
§ 5.88.030 Local license in addition to business license or other permit. 67 The local license required by this chapter shall be in addition and supplemental to any other business license or any permit required by any ordinance of the city. § 5.88.035 Local license required.

It is unlawful to operate any cannabis business in Cathedral City without first having obtained a local license under this chapter. Notwithstanding the foregoing, a temporary cannabis event organizer and cannabis businesses participating in a temporary cannabis event put on by a temporary cannabis event organizer are not required to obtain a license under this chapter provided that the organizer and participants comply with subsection D below.

It is unlawful for a cannabis business to operate in the city unless it has been granted the appropriate temporary or permanent state license(s) for its commercial cannabis activities. If the state denies the application for a temporary or permanent license(s) for any reason, the cannabis business must cease operations until such time as it obtains the appropriate temporary or permanent state license(s).

The city may grant a local license before the applicant has obtained a state license. A cannabis business must possess the requisite state and local licenses before receiving a certificate of occupancy from the city.

The city may permit temporary cannabis events by granting the applicant a special use permit for the event in accordance with the procedures for special use permits established in Chapter 9.68 of this code. Notwithstanding any provision in Chapter 9.68 to the contrary, the city council shall have the authority to approve, conditionally approve or deny a special use permit for a temporary cannabis event. A special use permit for a temporary cannabis event shall only be granted to a person who holds a cannabis event organizer license issued by the Department of Cannabis Control, a copy of which must be submitted with the special use permit application. The applicant shall provide the city with a copy of the temporary cannabis event license approved by the state before the commencement of the temporary cannabis event. Temporary cannabis events shall comply with all regulations set forth in Title 4 of the California Code of Regulations, Sections 15600 through 15604, as they may be amended from time to time. Temporary cannabis event organizers and cannabis businesses participating in a temporary cannabis event shall not be subject to the cannabis business operational requirements in Sections 5.88.065 through 5.88.100, inclusive, of this chapter or Sections 9.108.070 and 9.108.080 of this code, but the city council may apply appropriate conditions of approval on the operation of the temporary cannabis event pursuant to Section 9.28.060. Cannabis event organizers and cannabis businesses that participate in temporary cannabis events are subject to the tax imposed in Section 3.48.010 of this code. § 5.88.040 Local license application process.

A. The local licensing authority shall not accept an application for a dispensary proposed to be located south of Interstate 10 after November 23, 2016.

B. All applications for local licenses required pursuant to this chapter shall be submitted online. All applications for local licenses must be accompanied by the application fee as established by resolution of the city council as amended from time to time.
68 C. An applicant shall file with the local licensing authority the following at the time of application for a local license:

1. An operating plan for the proposed cannabis business including the following information:
a. A general description of the types of products and services to be provided by the facility;
b. A floor plan designating all interior dimensions of the licensed premises and the layout of the cannabis business, including all limited access areas, areas of ingress and egress, and all security cameras. Such floor plan shall also show the principal uses of the floor area depicted therein. For cultivation sites, such floor plan shall distinguish all dimensions of areas in which plants are located;
c. An employee, independent contractor, and volunteer list, if one exists; and d. For a dispensary, a statement confirming whether delivery service of cannabis to any location outside the premises will be provided and the extent of such service, and in the event delivery is provided, a detailed delivery plan detailing how the dispensary will comply with all requirements of this chapter, MAUCRSA, and any other applicable state or local laws.

D. If the application is incomplete, the applicant shall have an opportunity to cure the incompleteness within thirty days of written notice of incompleteness by the local licensing authority.

E. Each owner and each manager must submit fingerprints and any other information the City requires to complete a background check. The police department will conduct a background check of each owner and manager and will prepare a report to the local licensing authority on the acceptability of each background.

F. The local licensing authority must issue a license to any applicant who has submitted a complete application and paid the application fee unless the local licensing authority finds that good cause exists to deny the license. A local license may not be issued to a dispensary that is proposed to be located south of Interstate 69 10 unless the application for the license was made on or before November 23, 2016.

G. Upon the approval of a local license, and as a condition of the license becoming effective, the applicant must pay to the city the regulatory licensing fee, if any, established by resolution of the city council.

H. A local license issued pursuant to this chapter shall specify the date of issuance, the period of licensure, the name of the licensee, the address of the licensed premises, and the nature of the cannabis business licensed. All local licenses are valid for one year, except that an initial local license shall automatically expire if the commercial cannabis activities authorized by the license have not commenced at the premises within eleven months of the date of issuance. If the licensee has not submitted a tax return showing that commercial cannabis activity is occurring on the premises before the start of the twelfth month of the license term, the city will notify the licensee in writing that their license has been rendered null and void due to the failure to commence commercial cannabis activity. The licensee is not precluded from applying for a new cannabis license except as provided in Section

5.88.040(A).

I. Applicants must acknowledge the tax obligations imposed under Chapter 3.48 of this code, including the timely filing of required tax returns and payment of all cannabis taxes due from dispensary, cultivation, or manufacturing operations, and further acknowledge that compliance with Chapter 3.48 is a continuing condition of local licensure.
§ 5.88.045 Conditions of approval, administrative rules.

B. The local licensing authority is authorized to make rules, policies and procedures consistent with the intent and spirit of this chapter concerning the applications, the application process, the information required of applicants, the application procedures, and the administration and procedures to be used and followed in the application process.
§ 5.88.050 Changes and modifications of local licenses.

A. Change of Ownership or Management. Subsequent to the issuance of a local license, the licensee shall report any transfer of ownership or management of the cannabis business to the local licensing authority and pay the processing fee established by resolution of the city council. A change that solely involves a previously approved person no longer being an owner or manager of the cannabis business shall be reported to the local licensing authority within thirty days of the change. A change in ownership that involves adding a new owner or manager must 70 be approved by the local licensing authority in advance. Any proposed new owner or manager must submit to a background check conducted by the chief of police or designee. The local licensing authority shall approve the change unless there is good cause to deny the change. The licensee shall also demonstrate that all cannabis business taxes, penalties, and interest due under Chapter 3.48 of this code have been paid in full.

Applications for modifications of licensed premises shall be made on forms prescribed by the local licensing authority and shall be accompanied by the processing fee established by resolution of the city council. The local licensing authority shall approve the proposed modification if it meets all requirements of this chapter and all other applicable state laws and city codes and ordinances, and will not present a threat to the public health, safety or welfare.

C. Change of Location.

1. A licensee may apply to the local licensing authority to change the location previously approved for such local license to any other place in Cathedral City, but it is unlawful to cultivate, manufacture, distribute, test, store or sell cannabis at any such place or location until express permission to do so is granted by local licensing authority and the city has issued a conditional use permit to the licensee at the new location. Applications for changes of location will be made to the local licensing authority and be accompanied by the processing fee established by resolution of the city council.

A. A cannabis business that desires to renew its license shall apply for the renewal no less than 30 days before the local license's expiration date. If the cannabis business files a renewal application within 30 days before expiration, the cannabis business must provide a written explanation detailing the circumstances surrounding the late filing. The local licensing authority may accept or reject such late filing in its discretion. The local licensing authority may elect to administratively continue a local license past its expiration date, provided that the licensee has submitted a renewal application that is pending final action.

B. An application for renewal shall be submitted online by providing all required information and documentation, accompanied by the processing fee established 71 by resolution of the city council. The following information shall be submitted as a part of the renewal application:

1. A current list of the employees, independent contractors, and volunteers working at the licensed premises.

2. Proof that no changes to the ownership of the licensee have occurred since last approved by the local licensing authority.

3. Proof that the licensee is still entitled to the possession and use of the licensed premises.

Tax returns showing that taxable commercial cannabis activity occurred on the premises are necessary evidence of this fact but do not by themselves establish sufficient proof. The local licensing authority may require the additional evidence described in subsection a. c. The local licensing authority may renew a license not meeting the requirements of subparagraphs a or b above if the renewal application demonstrates unique or extraordinary circumstances that have impacted the ability of the cannabis business to conduct commercial cannabis activity on the premises, including, but not limited to, fire, flood or other act of God resulting in substantial damage to the premises, or a delay in the issuance of necessary licenses, permits or other approvals necessary to conduct the commercial cannabis activity at no fault of the applicant.
d. Isolated, sporadic, or token sales transactions conducted primarily to generate a qualifying tax return, rather than as part of genuine and sustained retail operations open to the public, do not satisfy the requirements of subsection a or b.

5. For licensees that have ten or more full-time equivalent non-supervisorial employees, proof that the licensee has entered into and abided by the terms of a labor peace agreement.

6. Proof that the cannabis business is not delinquent on the submission of any tax returns or the payment of any cannabis taxes. If a business has entered into a 72 tax payment agreement, it is not considered to be current with their tax obligations until the agreement has been fully paid.

7. Any other information that the local licensing authority deems necessary to determine whether to renew the local license.

C. All owners of the cannabis business must be fingerprinted each year at renewal if required in the discretion of the local licensing authority.

E. Local cannabis taxes must be current before renewing licensees' local cannabis license. Should a licensee hold multiple licenses within Cathedral City, their taxes for all licenses must be current to renew any one of their licenses.

H. Licenses initially issued on or before January 22, 2025, shall obtain approval of an odor control plan conforming with the requirements of this chapter and Chapter

9.108 of the Cathedral City Municipal Code as a requirement of local license renewal beginning on January 1, 2026. Any additionally required odor control equipment to meet the requirements of this chapter shall be installed and operational within six months of the approval of an odor control plan and no later than March 31, 2027. Thereafter, the renewal of any local license shall annually certify the performance of its odor control plan to the requirements of this chapter and Chapter 9.108 of the Cathedral City Municipal Code. § 5.88.060 Appeal of decision on local license.

If the local licensing authority denies or conditionally approves an initial local license, declines to renew a local license, or denies a change requested under Section

5.88.050, the licensee or applicant may appeal the decision to the city council in accordance with the provisions of Section 2.04.100 et seq., of this code. A decision to deny or not renew a cannabis industry worker identification card under Section

5.88.065(D) may be appealed to the city council through the same procedures.

Proceedings to suspend, modify, or revoke a local license for good cause are governed by Chapter 13.150, as provided in Section 5.88.115.
§ 5.88.065 Cannabis business operational requirements.

All cannabis business must comply with the requirements set forth in this section. 73 A. General Obligation to Operate in Compliance. A cannabis business must operate in compliance with all applicable state and local laws and regulations governing cannabis businesses. To be considered operational, a cannabis business must represent to the City and the public that it is actively conducting commercial cannabis activity authorized by its local license and is in compliance with the applicable operational requirements of this chapter.

B. General Obligation to Pay Taxes. A cannabis business must pay all applicable taxes pursuant to federal, state, and local law, including but not limited to, the cannabis tax, state and local sales and use taxes, and state excise taxes. A cannabis business shall timely file all required tax returns, maintain complete and accurate records necessary to determine cannabis tax liability, cooperate with any tax audit authorized by the City, and timely pay any taxes, penalties, interest, or other amounts, e.g., NSF fees, lawfully imposed or assessed. Failure to comply with the requirements of Chapter 3.48 may constitute grounds for enforcement action under this chapter.

C. General Obligation for Compliant Facilities. The licensed premises must fully comply with all applicable rules, regulations, and laws including, but not limited to, building and safety codes, and the Americans with Disabilities Act.

D. Background Checks. Before commencing any work within a cannabis business, any individual who will work within a licensed premises or have access to cannabis or cannabis products must submit to a background check that demonstrates they are of good moral character and receive a cannabis industry worker identification card from the city. The background check must include fingerprinting for criminal history conducted by the Cathedral City police department or any other entity determined to be satisfactory by the Cathedral City police department. Each cannabis industry worker identification card issued shall expire after two years unless renewed. A decision to deny or not renew a cannabis industry worker identification card may be appealed in accordance with Section 5.88.060. A cannabis industry worker identification card may be revoked or suspended by the city at any time, in accordance with the procedures in Chapter 13.150 of this code, if it is determined that the card holder is no longer of good moral character. A cannabis business shall not employ or utilize the services of any individual who is required to have a city-issued cannabis industry worker identification card unless that individual possesses a valid city-issued cannabis industry worker identification card at all times, regardless of whether the individual is an employee, independent contractor, or volunteer. The city may charge a fee to recover its reasonable costs of processing and issuing cannabis industry worker identification cards in an amount established by resolution of the city council.

1. The individual's complete name, address, and last known telephone number;

2. The individual's hire date and, if applicable date of termination. 74 The register and required records must be made available for inspection by any city officer or official for purposes of determining compliance with the requirements of this chapter during standard business hours of the licensed facility or at any other reasonable time.

H. 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.

L. Advertising. A cannabis business shall not advertise in a manner intended to encourage persons under twenty-one years of age to consume cannabis or cannabis products. It shall be unlawful for any cannabis business to make any claims that a product is safe because it is tested. All advertisements, including offsite advertising signs, shall comply with Chapter 15 of MAUCRSA. A cannabis business must maintain at least one publicly accessible means of informing the public that the business is operational. Such means may include, but are not limited to, a business website, social media page, online business directory, or other publicly accessible platform. The information shall accurately identify the business name, address, hours of operation, and contact information, and shall be kept current.
75 M. Display of License. A cannabis business shall display a copy of its local license issued pursuant to this chapter in a conspicuous place at or near the entrance to the licensed premises.

Cannabis businesses shall not offer or provide any form of remuneration to a physician who provides physician's recommendations for medicinal cannabis.

Q. Waste Disposal.

2. Cannabis Waste. Cannabis waste must be made unusable and unrecognizable before 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.

3. Composting. A cannabis business may compost cannabis waste onsite, in accordance with this provision and all other applicable laws, rules, and regulations.

4. Odor. Disposal of cannabis waste shall be done in a manner consistent with the conditional use permit for the business. The conditional use permit may include conditions to minimize odor generated by cannabis waste, including, but not limited to, the placement of waste containers and the imposition of odor control requirements.
76 R. General Sanitary Requirements. A cannabis business must ensure that its licensed premises are maintained in a sanitary manner and activities on its licensed premises are conducted in a sanitary manner.

1. All facilities of a cannabis business must have adequate and sufficient access to bathrooms and hand-washing facilities with running water at a suitable temperature.

S. Security Requirements. The licensed premises of a cannabis business must comply with all of the following security requirements:

1. Video Surveillance. The licensed premises must be equipped with a video surveillance system that meets all of the requirements set forth in this subsection.
a. Security cameras and digital storage of recordings shall be maintained in good condition and used in an on-going manner, twenty-four hours per day, seven days per week.
b. The security system must maintain at least one hundred twenty concurrent hours of digitally recorded video for each security camera in the licensed premises. Security footage should be stored in an MPEG4, MJPEG, H.264, or another format approved by the local licensing authority in writing.
c. Security cameras must provide adequate and sufficient coverage for the facility, which must include, but need to be limited to, all limited access areas, all areas of ingress and egress, point of sale, the public areas, storage areas, and any other areas as required by this chapter and the MAUCRSA.
d. The video surveillance system must be equipped with a failure notification system that provides prompt notification to the manager of record of the licensed premises of the cannabis business of any surveillance interruption or complete failure of the surveillance system that lasts longer than fifteen minutes.
e. The video surveillance system shall have sufficient battery backup to support a minimum of fifteen minutes of recording in the event of a power outage.

3. Signage Requirement. The licensed premises must comply with the following signage requirements.
77 a. A sign shall be posted in a conspicuous place near each point of public access which shall be not less than twelve inches wide and twelve inches long, composed of letters not less than one inch in height, stating:
"All Activities Monitored by Video Camera."
b. 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."

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

T. Subletting Prohibited. Licensees are not authorized to sublet any portion of a licensed premises for any purpose, unless all necessary applications to modify the existing licensed premises to accomplish any subletting have been approved by the local licensing authority.

V. Transactions. Licensees shall only do business with cannabis businesses that are licensed or permitted to do business in their respective jurisdictions.

W. Odor Control Plan. A cannabis business shall obtain approval of an odor control plan pursuant to the requirements of Section 5.88.125. All required odor control equipment shall be installed and operational before the commencement of operations and shall be maintained in good working order. The licensee shall certify the performance of an odor control plan to the requirements of this chapter annually with the renewal of a cannabis license.

X. Licensee Responsibility. At all times, a licensee is responsible for ensuring that its cannabis business complies with all applicable state and local laws, and any 78 regulations promulgated thereunder. In construing and enforcing this chapter and any rules or regulations promulgated under this chapter, the act, omission, or failure of an agent, officer, representative, employee, independent contractor, or volunteer acting for or on behalf of a licensee, within the scope of his or her employment or engagement, shall in every case be deemed the act, omission, or failure of the licensee.
§ 5.88.070 Dispensary operational requirements.

In addition to the operation requirements in Section 5.88.065, a dispensary must comply with the requirements set forth in this section.

B. Product Displays. A dispensary must maintain retail shelves and display areas in a stocked and commercially operable condition, with all products offered for sale clearly displaying accurate and current pricing. Inventory must be sufficient to support continuous retail operations. The display of cannabis and cannabis products for sale shall not include cartoon characters or other images designed to appeal to children.

C. Age Restricted Entry. A dispensary may not permit an individual less than twentyone years of age into the licensed premises, except a dispensary with an M-license from the state may permit an individual aged eighteen years or older into the licensed premises if the dispensary verifies the individual is an ID card holder or qualified patient with a physician's recommendation.

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

I. Delivery of Cannabis and Cannabis Products. A dispensary that provides delivery service shall comply with the following requirements:
79 1. The dispensary shall not deliver cannabis or cannabis products to any location outside of California or to any location within California where the delivery of cannabis or cannabis products has been prohibited by the city or county.

4. A dispensary may only deliver cannabis to a specific street address requested by the purchaser. Deliveries to public parks and schools are expressly prohibited.

5. Upon arrival at the delivery address and before transferring any cannabis or cannabis products, the delivery person must verify and confirm that the identity of the recipient is the same as the person who requested the delivery and that the person is either twenty-one years of age or a qualified patient or primary caregiver.

2. Cannabis consumption shall not be visible from any place where persons under the age of 21 are permitted.

3. Cannabis consumption must occur only within the areas designated for consumption by the license.

4. The cannabis business shall specifically address odors caused by the consumption of cannabis in the odor control plan required in Section 5.88.125. 80 5. Cannabis consumption shall occur in a space within the licensed premises that is separate from the space that is used to sell cannabis and cannabis products for on-site or off-site consumption.

6. Only cannabis and cannabis products purchased from the dispensary during the same visit by the customer may be consumed within the dispensary.

Individuals may not bring cannabis or cannabis products into a dispensary for the purposes of consumption.

7. Cannabis and cannabis products that are only partially consumed on the premises of the dispensary must be repackaged in accordance with Section

5.88.095 before leaving the dispensary.

3. A dispensary conducting an activity authorized by this subsection shall comply with all conditions in Business and Professions Code Section 26200, as may be amended from time to time, and with the following:
a. Access to the area where cannabis consumption is allowed must be restricted to persons 21 years of age or older;
b. Each entrance to the cannabis consumption area must prominently post a warning that cannabis consumption, including smoking of cannabis, is permitted inside;
c. Cannabis consumption may not be visible from any public place or nonage-restricted area; d. Sale or consumption of alcohol or tobacco may not be allowed on the premises;
e. Noncannabis food or beverage products may not be contaminated by or commingled with any cannabis products sold or served on the premises where cannabis consumption is allowed;
f. Smoking or vaporizing of any cannabis or cannabis product by an employee or customer may not be allowed in the food preparation, food storage, or warewashing area of a food facility located on the premises; 81 g. The cannabis business must maintain adequate ventilation and filtration systems as required by the City or applicable law. Ventilation and filtration systems may be required to prevent smoke and odors from migrating to any other part of the building hosting the consumption lounge or any neighboring building or grounds;
h. Employees must be permitted, at their discretion and without penalty or sanction, to wear a mask for respiration, including N95 or NIOSH N95 rated masks, in any area where cannabis is smoked, and the employer shall pay for the mask as required by State law;
i. Employees who will be working where cannabis or cannabis products are smoked shall be provided in writing the Department of Public Health or successor agency guidance regarding secondhand cannabis smoke when hired;
j. A cannabis consumption lounge that offers onsite consumption of cannabis products shall include secondhand smoke in its analysis of potential work hazards for purposes of any injury and illness prevention program required by State law;
k. Loitering in or around the business is prohibited, and the cannabis business must ensure the absence of loitering;
l. If a State retail or microbusiness license is suspended, the licensee may not engage in activities authorized under this section for the duration of the State license suspension;
m. All noncannabis food and beverages present on the premises must be stored and displayed separately and distinctly from all cannabis and cannabis products present on the premises; and
n. This section does not authorize the preparation, sale, service, or consumption of industrial hemp or any product containing industrial hemp.

5. A dispensary that hosts a live performance on the licensed premises must comply with all applicable state and local requirements, including:
a. Approved occupancy limits;
b. Fire and life safety requirements;
c. Building Code requirements;
d. Business license and cannabis license conditions;
e. Security plan requirements;
f. Odor control and ventilation requirements;
g. Noise regulations;
h. Parking and traffic requirements;
i. Loitering prohibitions;
j. Employee safety requirements;
82 k. Riverside County Environmental Health requirements, where applicable; and
l. Any other condition imposed by the local licensing authority, fire department, building official, code compliance division, police department, or other city department or official with applicable authority.

7. The authorization in this subsection is in addition to, and does not excuse compliance with or the need to obtain, any other license, permit, or approval required by this code or state law. A dispensary conducting an activity authorized by this subsection remains subject to all otherwise applicable requirements, including any special event permit, temporary use permit, state license, or other approval.
§ 5.88.075 Manufacturing site operational requirements.

In addition to the operational requirements in Section 5.88.065, manufacturers must comply with the requirements set forth in this section.

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.

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

4. 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, handwashing requirements, use of gloves for packaging, and policies prohibiting individuals suffering from symptoms associated with communicable diseases or infections from engaging the production of edible cannabis products.

5. All cannabis manufacturing facilities shall ensure that cannabis is obtained from permitted and licensed cultivation sources and shall implement best practices to ensure that all manufactured cannabis is properly stored, labeled, transported, and inspected before distribution at a legally permitted and licensed retailer.

B. Expiration Date. A cannabis business engaged in the manufacture of cannabis products, including an edible cannabis product, that is perishable shall assign an 83 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.

C. Extraction Requirements.

1. A manufacturer engaged in extraction may only engage in type of extraction approved by the local licensing authority in its application for a local license.

The licensee shall not make any modifications to the method of extraction without first obtaining a modification of its local license.

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 the manufacturer's state license.
§ 5.88.080 Cultivation operational requirements.

In addition to the operational requirements in Section 5.88.065, a cultivator must comply with the requirements set forth in this section.

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

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

C. The use of pesticides must be recorded in a log in accordance with 16 CCR Section 1970.

E. A licensee may not distribute, sell, dispense, or administer cannabis on the licensed premises of a cultivation site except for as authorized by the MAUCRSA and other applicable state law.

In addition to the operational requirements in Section 5.88.065, distributors shall comply with the requirements of this section.

A. Quality Assurance and Testing.

1. Before distribution, the distributor shall inspect cannabis for quality assurance as required by MAUCRSA and to ensure the labeling and packaging of the cannabis and cannabis products conforms to the requirements of this chapter and MAUCRSA.

2. Distributors shall ensure that cannabis and cannabis products in its custody are tested by a licensed testing laboratory in accordance with MAUCRSA before distributing the cannabis and cannabis products to a dispensary.

B. Transportation.
84 1. A distributor may not transport cannabis to or from another cannabis business outside the state of California.

2. An individual may only transport cannabis on behalf of a distributor if the individual:
a. Is an employee of the distributor and is listed on the distributor's employee list;
b. Possesses a copy of the distributor's local license; and c. Possesses a copy of a transportation manifest that meets all the requirements of MAUCRSA and subsection (B)(3).

3. Transportation Manifest.
a. A cannabis business must create a transportation manifest in accordance with this chapter for every transport and delivery of cannabis. A cannabis business must ensure that a copy of the appropriate transportation manifest accompanies every transport and delivery of cannabis and is kept for retention by the originating cannabis business.
b. If a cannabis business makes multiple pick-ups or deliveries during a single trip, then a separate transportation manifest shall be required for each pick-up or delivery.
c. A transportation manifest will be deemed sufficient if it accurately reflects:
i. All cannabis that will be transported to the address reflected on the manifest, accurately inventoried to include the weight of any raw cannabis or cannabis concentrate and the number of
individual cannabis products;
ii. Departure date and approximate time of departure;
iii. Arrival date and approximate time of arrival;
iv. Name, address, local license number and CUP number (or, for cannabis businesses outside of Cathedral City, a similar number issued by the cannabis business's local jurisdiction) of the originating cannabis business;
v. Name, address, local license and CUP number (or, for cannabis businesses outside of Cathedral City, a similar number issued by the cannabis business's local jurisdiction) of the receiving cannabis business;
vi. Delivery vehicle make, model, and license plate number; and vii. Name and signature of the individual transporting the cannabis.

5. A cannabis business with a local license shall transport cannabis in a manner that is secure and not visible from outside the vehicle.

6. An employee transporting cannabis pursuant to this chapter must take a direct route from the distributor to the destination of the other cannabis business(es) 85 and may not make any stops other than those necessary in the ordinary course of business.

C. Bonding. Transporters shall comply with applicable state laws and regulations, if any, requiring that they be bonded and insured.

D. Preparation of Cannabis and Cannabis Products for Transportation.

1. All cannabis and cannabis products must be appropriately and completely tracked in a cannabis business's inventory tracking system before transportation to another cannabis business. This must include verifying and documenting the weight of any raw cannabis or cannabis concentrate and the number of individual cannabis products being transported.

2. Preparations for the transport of cannabis and cannabis products must be conducted in a limited access area on camera.

E. Receiving Cannabis and Cannabis Products.

1. A distributor may not receive cannabis or cannabis products unless accompanied by a transportation manifest that meets all of the requirements set forth in subsection (B)(3). The distributor must retain copies of transportation manifests associated with all deliveries of cannabis.

In addition to the operational requirements in Section 5.88.065, a testing laboratory shall comply with the requirements of this section.

A. No Other Ownership. An owner of a testing laboratory may not have an ownership or other direct financial interest in any other commercial cannabis business license type.

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

C. 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.

2. 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.
86 3. A testing laboratory shall maintain all testing results as a part of their respective business records and must keep such records pursuant to Section 5.88.065(U). § 5.88.095 Packaging and labeling.

B. Tamper-Evident, Child-Resistant Packaging Required. Before delivery or sale at a dispensary to a purchaser, 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.

C. 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.

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.

B. Visitors Identification and Record Requirements. Before 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.

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

To the fullest extent permitted by law, the city shall not assume any liability whatsoever, with respect to approving any local license pursuant to this chapter or the operation of any cannabis business approved for such local license pursuant to this chapter. As a condition of approval of a local license granted under this chapter, the applicant or its legal representative shall:
87 A. Execute an agreement indemnifying and holding the city harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of federal law associated with the operation of the cannabis business and delivery of cannabis as provided in this chapter; and
B. Maintain insurance in the amounts and of the types that are acceptable to the city pursuant to guidelines and policies set forth by the local licensing authority; and C. Name the city as an additionally insured on all city-required insurance policies; and D. Agree to defend, at its sole expense, any action against the city, its agents, officers, and employees related to the approval of a local license or conditional use permit or the operation of the cannabis business; and
E. Agree to reimburse the city for any court costs and attorney fees that the city may be required to pay as a result of any legal challenge (or federal enforcement action) related to the city's approval of a local license or conditional use permit. The city may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder.
§ 5.88.110 Inspections.

B. The local licensing authority shall have the right to enter all cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter. Such inspections shall be limited to observing the licensed premises for purposes of determining whether the 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 local licensing authority 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.

D. The local licensing authority may delegate an act required to be performed pursuant to this section to any code enforcement officer or official of the city, including, without limitation, the chief of police, the fire chief, the building official, the finance director, the city attorney, or any designee of such officers or officials. 88 E. Applicants and licensees must cooperate with the local licensing authority and its designees who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this chapter.

B. The operation of a cannabis business in violation of this chapter or any conditions of approval placed on a licensee's local license is hereby deemed to be a public nuisance.

C. As provided for in Title 13 of this code, the local licensing authority may issue administrative, infraction or misdemeanor citations, institute a summary abatement of a public nuisance that poses an immediate threat to the public health and safety, and/or institute proceedings to suspend, modify or revoke a local license for good cause in accordance with the procedures in Chapter 13.150 of this code.

D. The city attorney may bring a civil or equitable action to seek the abatement of any violation of this chapter.

E. Whenever in this chapter any act or omission is made unlawful, it shall include causing, permitting, aiding, abetting, suffering, or concealing the fact of such act or omission.

F. Each and every day a violation is maintained, caused, aided, abetted, concealed, suffered, or permitted is a separate offense.
§ 5.88.120 Civil fines.

B. Application. A cannabis business shall submit and obtain approval of an odor control plan in a form acceptable to the community development director.

C. Fee. A fee as determined by resolution of the city council to defray the costs and expenses of the city in processing the application shall be paid before accepting the application for filing, no part of which fee shall be refundable to applicant. 89 D. Decision Process. Upon receipt of a completed application as determined by the community development director, an odor control plan shall be reviewed for its ability to effectively mitigate odors from odor generating sources or adequately explain why odor control is not warranted. The community development director may request revisions or modifications to an odor control plan before rendering a decision to approve an odor control plan or otherwise place conditions of approval on an application.

The planning commission shall consider the appeal as a public hearing item. The determination of the planning commission shall be effective ten calendar days after the date of decision unless appealed to the city council, by written appeal filed with the city clerk, whose decision shall be final.

G. Amendments. Amendments to an odor control plan shall demonstrate continued system effectiveness and compliance with this chapter and Chapter 9.108.

Amendments to an odor control plan may be required as a result of corrective action taken by a cannabis business in response to enforcement action as set forth in Chapter 13.80. Amendments to an odor control plan may also be required to reflect operational or facility changes, including:

1. Modifications to odor control equipment, including the addition or deletion of equipment and changes to the type of odor control equipment; and

2. Facility expansions, process changes, tenant improvements, or other activities that alter the generation of cannabis odors.

H. Installation of Odor Control Equipment. For cannabis businesses established after January 22, 2025, all required odor control equipment shall be installed and operational before the commencement of operations. Cannabis businesses established on or before January 22, 2025, must follow the requirements of Section

5.88.055(H) for the installation of any additionally required odor control equipment.

I. Maintenance. All required odor control equipment must be maintained in good working order.

13.80. Failure to comply with, obtain approval of, or maintain an odor control plan as required by this chapter may be subject to enforcement action.

K. Prohibition. Vapor phase and misting systems are not permitted odor control equipment.”
SECTION 5. LEGISLATIVE INTENT
Except as expressly amended by this ordinance, all provisions of the Cathedral City Municipal Code remain in full force and effect. All existing provisions of the Cathedral 90 City Municipal Code that are repeated herein are repeated only to aid decision-makers and the public in understanding the effect of the proposed changes. Restatement of existing provisions does not constitute a new enactment. This ordinance does not amend the transient occupancy tax, impose a new tax, or increase any tax rate. The amendment to Section 5.88.055.H does not waive odor control plan approval, annual certification, equipment maintenance, or applicable public nuisance and odor performance requirements.

SECTION 6. SEVERABILITY
If any section, subsection, sentence, clause, phrase, or portion of this ordinance is held invalid or unconstitutional by a court of competent jurisdiction, that decision shall not affect the validity of the remaining portions. The City Council declares that it would have adopted this ordinance and each of its provisions irrespective of whether any other provision is declared invalid or unconstitutional.

SECTION 7. EFFECTIVE DATE
This ordinance shall take effect 30 days after its adoption.

SECTION 8. POSTING AND CERTIFICATION
The City Clerk shall, within fifteen days after passage of this ordinance, cause it to be posted in at least three designated public places; shall certify to its adoption and posting; and shall cause this ordinance and its certification, together with proof of posting, to be entered in the Book of Ordinances of the City.
91 Staff Report
City Council
Item No.

Meeting Date: October 14, 2026
From: Jeremy Frey, Chief Building Official
Title: Ordinance 894 Amendment, 2025 California Building and Fire Codes

RECOMMENDATION
To introduce and provide first reading, by title only, and waive further reading of an Ordinance amending the previously adopted 2025 California Building and Fire Codes to correct minor numbering errors and clarify language related to Sewer Connections.

BACKGROUND:

On November 12, 2025, the City Council adopted the 2025 California Building and Fire Codes; including applicable local amendments and findings. The applicable 2025 Code cycle became effective January 1, 2026.

DISCUSSION:

Following adoption, staff identified minor administrative numbering corrections within the Ordinance. This proposed amendment corrects numbering references within the Ordinance title and makes a minor language revision to the Sewer Connection provisions. These changes do not modify the intent or substantive requirements of the City’s previously adopted 2025 Building and Fire Codes.

FISCAL IMPACT:

There is no fiscal impact associated with the proposed amendments.

ATTACHMENTS:

Ordinance 894 Amended
1 Page | 1
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY AMENDING ORDINANCE NO. 894, REPEALING CHAPTERS 8.02, 8.04, 8.08, 8.10, AND

8.12 OF TITLE 8 OF THE CATHEDRAL CITY MUNICIPAL CODE AND ADOPTING NEW CHAPTERS 8.02, 8.04, AND 8.12, AND AMENDING CHAPTERS 8.14, 8.18, 8.20, AND

8.50, THEREBY ADOPTING THE 2025 CALIFORNIA BUILDING STANDARDS CODE

AND CERTAIN SPECIFIED APPENDICES THEREOF, INCLUDING LOCAL

AMENDMENTS, AND FINDING THE ORDINANCE EXEMPT FROM CEQA
WHEREAS, on November 12, 2025, the City Council adopted Ordinance No. 894, adopting the 2025 California Building Standards Code and certain specified appendices thereof, including local amendments; and
WHEREAS, following adoption of Ordinance No. 894, minor numbering, chapter reference, and section title corrections were identified; and WHEREAS, the City Council desires to amend Ordinance No. 894 to correct such numbering, chapter references, and section titles as set forth herein; and WHEREAS, the State has adopted and approved the 2025 edition of the California Building Standards Code (Code), consisting of the California Building Code, California Residential Code, California Mechanical Code, California Plumbing Code, California Electrical Code, California Fire Code, California Existing Building Code, California Green Building Standards Code, California Energy Code, and California Reference Standards Code, which are published in Title 24 of the California Code of Regulations and are based on the latest national, uniform and international model building codes; and
WHEREAS, the Code was published in July 2025 and will become effective and applicable to any building or structure for which application for a building permit is made on or after January 1, 2026; and
WHEREAS, California Health & Safety Code §§17958, 17958.5, 17958.7, 18938, and 18941.5 authorize local jurisdictions to adopt the California Building Standards Codes with amendments reasonably necessary because of local climatic, geological, or topographical conditions; and
WHEREAS, on June 30, 2025, the Governor signed into law Assembly Bill (AB) 130, which implements a freeze on certain state and local building code updates for nearly six years, subject to limited exceptions, commencing October 1, 2025; and WHEREAS, exceptions include, among others: (1) changes or modifications that are substantially equivalent to changes or modifications that were previously filed by the governing body of the city or county and were in effect as of September 30, 2025; and (2) changes or modifications relating to home hardening; and
WHEREAS The City of Cathedral City finds that amendments to the 2025 California Building Standards Codes are reasonably necessary based on such local conditions, as documented in the City’s Finding of Facts Matrix (Attachment B); and WHEREAS, the City Council finds that each of the proposed amendments are substantially similar to amendments that were previously adopted by Council and were in effect as of September 30, 2025, or fall under one of the other exceptions in AB 130; and WHEREAS The City Council desires to repeal specified chapters of Title 8 of the 2 Page | 2
Cathedral City Municipal Code and adopt new chapters incorporating the 2025 California Building Standards Codes with local amendments; and
WHEREAS The adoption of the California Building Standards Codes with local amendments is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines §15061(b)(3).

THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES ORDAIN AS FOLLOWS:

SECTION 1. Amendment of Ordinance No. 894. Ordinance No. 894 is hereby amended as set forth herein and in Exhibit A, attached hereto and incorporated herein by this reference.

SECTION 2. Repeal of Existing Chapters. Chapters 8.02, 8.04, 8.08, 8.10, and 8.12 of Title 8, “Building and Construction,” are hereby repealed in their entirety.

SECTION 3. Adoption of New Chapters. New Chapters 8.02, 8.04, and 8.12 of Title 8 are hereby adopted, incorporating by reference the 2025 California Building Standards Code, Title 24 of the California Code of Regulations, Parts 1 through 12, inclusive, as published by the California Building Standards Commission, together with the City’s local amendments set forth in Exhibit A, as though fully set forth herein.

SECTION 4. Correction of Clerical Errors. Clerical errors regarding the numbering, chapter references, chronological placement, and section titles of Chapters 8.14 and 8.50 are hereby corrected as reflected in Exhibit A.

SECTION 5. Adoption of the Local Amendments Matrix. Exhibit A, including the Local Amendments Matrix, is adopted solely for reference purposes and shall not be construed to expand the scope of this Ordinance or Ordinance No. 894.

SECTION 6. Preservation of Ordinance No. 894. Except for the amendments expressly set forth herein, Ordinance No. 894 shall remain unchanged and in full force and effect. Nothing in this ordinance shall be construed to expand the scope of Ordinance No. 894.

SECTION 7. CEQA. This Ordinance is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines §15061(b)(3).

SECTION 8. Repeal of Conflicting Provisions. All provisions of the Cathedral City Municipal Code previously adopted by the City of Cathedral City that conflict with this ordinance are hereby repealed.

SECTION 9. Severability. If any provision of this ordinance is held invalid or preempted, the remaining provisions shall remain in full force and effect.

SECTION 10. Effective Date. This Ordinance shall take effect on January 1, 2026, consistent with the effective date established by the California Building Standards Commission for the 2025 California Building Standards Codes.

SECTION 11. Publication. The City Clerk shall certify to the passage of this Ordinance and cause the same to be published according to law.

The foregoing Ordinance was approved and adopted at a meeting of the City Council held on the 14th day of October, 2026, by the following vote:
3 Page | 3
Ayes:

Noes:

Abstain:

Absent:
___________________________
Raymond Gregory, Mayor
ATTEST:
____________________________
Christina Burton, City Clerk
APPROVED AS TO FORM:
____________________________
Eric S. Vail, City Attorney
4 Page | 4
Exhibit A
Chapter 8.02
California Building Standards Code

8.02.010 California Codes Adopted without Amendment
The following codes have been adopted by the California Building Standards Commission ("Commission") and are applicable within the City, without local amendments:

A. 2025 California Plumbing Code. The 2025 California Plumbing Code is adopted by the Commission as Part 5 of Title 24 of the California Code of Regulations. The City adopts the 2025 California Plumbing Code without amendments
B. 2025 California Mechanical Code. The 2025 California Mechanical Code is adopted by the Commission as Part 4 of Title 24 of the California Code of Regulations. The City adopts the 2025 California Mechanical Code without amendments C. 2025 California Energy Code. The 2025 California Energy Code is adopted by the Commission as Part 6 of Title 24 of the California Code of Regulations. The City adopts the 2025 California Energy Code without amendments.

D. 2025 California Historical Building Code. The 2025 California Historical Building Code is adopted by the Commission as Part 8 of Title 24 of the California Code of Regulations.

The City adopts the 2025 California Historical Building Code without amendments.

E. 2025 California Existing Building Code. The 2025 California Existing Building Code is adopted by the Commission as Part 10 of Title 24 of the California Code of Regulations. The City adopts the 2025 California Existing Building Code without amendments.

F. 2025 California Green Building Standards Code. The 2025 California Green Building Standards Code is adopted by the Commission as Part 11 of the California Code of Regulations. The City adopts the 2025 California Green Building Standards Code without amendments.

G. 2025 California Wildland-Urban Interface Code. The 2025 California WildlandUrban Interface Code is adopted by the Commission as Part 7 of Title 24 of the California Code of Regulations. The City adopts the 2025 California Wildland-Urban Interface Code without amendments.

8.02.020 California and International Codes Adopted with Appendices and Amendments
The City adopts these other 2025 California and International Codes and Appendices, with the local additions, deletions and amendments provided in the following chapters:

Chapter 8.04 Adoption of the 2025 California Building Code and certain Appendices and Amendments Chapter 8.12 Adoption of the
2025 California Fire Code and certain Appendices and
Amendments
Chapter 8.14 Adoption of the 2025 California Electrical Code, with certain Appendices and Amendments
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Chapter 8.18 Adoption of the 2025 California Residential Code, with certain Appendices and Amendments
Chapter 8.20 Adoption of the 2024 International Property Maintenance Code, with certain Appendices and Amendments
Chapter 8.04 California Building Code, 2025 Edition

8.04.010 California Building Code Adopted with Amendments A. Except for the local amendments set forth herein, there is adopted by reference the California Building Code, 2025 Edition, which is based upon the 2024 International Building Code and is published by the California Building Standards Commission as Part 2 of Title 24 of the California Code of Regulations. A copy of the Code together with the local amendments is on file with the Building and Safety Division.

B. The California Building Code, 2025 Edition (hereinafter "Building Code") shall be the Building Code for the City and said Code together with the adopted appendices and the amendments set forth in this chapter shall apply to the construction, alteration, movement, enlargement, replacement, repair, equipment, use and occupancy, location, maintenance, removal and demolition of every building or structure or any appurtenances connected or attached to such buildings or structures throughout the City of Cathedral City.

8.04.020 Modifications, Amendments and Deletions to the Building Code A. The following modifications, amendments and deletions are made to the Building Code:

1. Paragraph 2 of the Building portion of Section 105.2 is amended to reduce the height of fences which are exempt from permit requirements:

Building:

2. Fences and walls not over forty-two inches (42 inches).

2. Add new subsection 105.8, Permit issuance restrictions, to read as follows:
105.8 Permit issuance restrictions. Permits for electrical, mechanical, or plumbing work, on other than residential single and dual family dwellings and associated U occupancies, shall only be issued to California licensed contractors.

3. Section 117 is added to require removal and disposal of trash and debris at building sites:

Section 117 SITE SECURITY AND REMOVAL OF TRASH AND
DEBRIS
117.1. Construction Site Security Provisions
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• 117.1.1 All new construction shall comply with the following security measures until utilities have been released by the city:
• A. Perimeter Lighting for Planned Development Projects and new Commercial construction, perimeter lighting shall be installed at a minimum of one hundred fifty-foot intervals and at a height not less than fifteen feet from the ground. The light source used shall have a minimum light output of two thousand lumens and be lighted during the hours of darkness. Additional lighting shall be required if the construction site exceeds four acres in area. • Exception. Infill residential projects shall be exempt from perimeter lighting requirements.
• B. Construction fencing shall be installed, not less than six feet in height, with heavy-duty screening attached, which is designed to preclude human intrusion, shall be installed along the perimeter boundaries of the construction site; or A uniformed security guard, licensed according to Business and
Professions Code, Chapter 11, shall be utilized to continually patrol the construction site during the hours when construction work has ceased
• Exception. Fencing location dependent on site conditions and at the discretion of the Building Official.
• C. Site shall be provided with a chemical toilet and shall be maintained on a regular basis to prevent a public nuisance.

4. Section 117.2 is amended to read as follows:
117.2Trash Containers. Trash container(s) shall be placed on each construction site and shall remain in place until construction is completed.

Where construction sites are separated by one or more lots, separate containers are required for each site. It shall be the contractor's responsibility to ensure that no container is located on or within any public right-of-way. It shall be the contractor's responsibility to ensure that all containers under his or her control are emptied of all deposited materials placed within said container(s) at least once every week.

Inspections. A permit holder shall not be entitled to and a building inspector shall not perform any inspections, including a final inspection, of any phase of completed construction work if the construction site or general area thereof contains an accumulation of construction debris. In-the-event that a building inspector is unable to conduct a requested inspection because of an accumulation of debris; a re-inspection fee shall be paid to the City at the time of the request for re-inspection.

5. Section 502.1 is amended to read as follows:
502.1 Address identification. New and existing buildings shall be provided with approved address identification. The address identification shall be legible and placed in a position that is visible from the street or road fronting the property. Address identification characters shall contrast with their background. Address numbers shall be Arabic numbers or alphabetical letters. Numbers shall not be spelled out. Each character shall be 8 inches high for commercial and 4 inches high for residential with a minimum stroke width of 0.5 inch. Where required by the fire code official, address identification shall be provided in additional approved locations to 7 Page | 7 10/1/2025
facilitate emergency response. Where access is by means of a private road and the building cannot be viewed from the public way, a monument, pole or other sign or means shall be used to identify the structure. Address identification shall be maintained.

6. Section 901.1 is amended to read as follows:
901.1 Scope. The provisions of this chapter and chapter 9 of the California Fire Code shall specify where fire protection and life safety systems are required and shall apply to the design, installation and operation of fire protection and life safety systems.

Where there is a conflict between this chapter and chapter 9 of the California Fire Code, the California Fire Code, as adopted with modifications, amendments and deletions by the City, shall be applicable.

7. Section 1505.1 of Chapter 15 of the Building Code is amended by adding an additional exception to require the installation of Class A roof assemblies tested in accordance with ASTM E108 or UL 790 roofs for all new construction:
1505.1 General. Roof assemblies shall be divided into the classes defined below. Class A, B and C roof assemblies and roof coverings required to be listed by this section shall be tested in accordance with ASTM E 108 or UL 790. In addition, fire-retardant- treated wood roof coverings shall be tested in accordance with ASTM D 2898. The minimum roof coverings installed on buildings shall comply with Table 1505.1 based on the type of construction of the building.

Exception:
a. Skylights and sloped glazing that comply with Chapter 24 or Section 2610.
b. All new buildings of Group R and associated Group U occupancies that have a roof pitch of 2.5 units vertical in 12 units horizontal or greater shall have coverings of Class A roof assemblies tested in accordance with ASTM E108 or UL 790 respectively and shall be installed in accordance with Table 1507.

8. Section 1506.4 is added to Chapter 15 of the Building Code to provide that roofs of additions and alterations to existing buildings may be roofed in the same roofing material as the original building unless other materials are required by the Chief Building Official:
1506.4 Additions and alterations. Roofs of additions and alterations to existing buildings may be roofed in the same roofing material as the original building unless other materials are required by the Chief Building Official.
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9. Amend subsection 3109.1, General, to read as follows:
3109.1 General. The design and construction of swimming pools, spas and hot tubs shall comply with the California Codes.

10. Add subsection 3109.2.1, Drowning prevention safety features, to read as follows:
3109.2.1 Drowning prevention safety features. Cathedral City will enforce section 115922, of the California Health & Safety Code. Where a wall of a group R, Division 3 occupancy (including attached garage) serves as part of the enclosure, numbers (4) or (5) shall be required as part of the enclosure.

Exception: Private pools and spas constructed within the fenced, gated and patrolled boundaries of a country club or similar fenced and gated residential development project are not required to be enclosed by a barrier, provided property complies with section 115922. (a).

8.04.040 Adoption of Other Appendices of the Building Code without Amendments.

There is adopted by reference and without amendment, the following appendices to the Building Code:

1. Appendix C: Agricultural Buildings

2. Appendix I: Patio Covers

3. Appendix J: Grading

4. Appendix P: Emergency Housing
Chapter 8.12
California Fire Code, 2025 Edition

8.12.10 California Fire Code Adopted with Amendments
A. Except for the local amendments set forth herein, there is adopted by reference the California Fire Code 2025 Edition, which is based upon the 2024 International Fire Code and is published by the California Building Standards Commission as Part 9 of Title 24 of the California Code of Regulations. A copy of the Code together with the local amendments is on file with the Building Department.

B. The California Building Code, 2025 Edition (hereinafter "Fire Code") shall be the Fire Code for the City and said Code together with the adopted appendices and the amendments set forth in this chapter shall regulate and govern the safeguarding of life and property from fire and explosion hazards arising from the storage, handling, and use of hazardous substances, materials and devices, and from conditions hazardous to life or property in the occupancy of buildings and premises, and providing for the issuance of permits and collection of permit fees.

8.12.020 Modifications, Amendments and Deletions to the Fire Code A. The following amendment is made to Section 202:
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1. Chapter 2 Definitions is amended to add the definitions of "Common Area" and “Cannabis Facilities”:

DEFINITIONS
CANNABIS FACILITY: Cannabis establishments and businesses are required to be licensed by the City of Cathedral City including but not limited to marijuana sales occupancies (dispensaries and distribution centers), marijuana cultivation facilities, marijuana product manufacturing (including extraction and infused product operations), and marijuana testing labs. These establishments or businesses involve unique operations which create significant life safety and fire hazards. As such, all establishments or businesses engaging in cannabis activities shall meet the requirements of the City of Cathedral City Fire Department.

New and/or existing marijuana related establishments or businesses (including unlicensed/non-compliant) may require construction permits or a change of occupancy; this may include access control systems, electrical modifications, addition or deletions of walls, addition or modifications of fire protection systems, modification to mechanical systems (exhaust hood systems), air monitoring equipment etc.

Reference the Fire Department Guideline for Construction Permitting for Cannabis Establishments / Businesses Located in Commercial Buildings for further information during the construction permitting process.

COMMON AREA. For the purposes of ADA compliance for visual notification, a common area shall be a room, space, or element made available for use of a restricted group of people (example, occupants of a homeless shelter, the occupants of an office building, or the guests of such occupants). Common areas shall include restrooms, hallways, lobbies, meeting and conference rooms, classrooms, cafeterias, filing and photocopy rooms, employee break rooms, open office areas exceeding 300 square feet, examination and treatment rooms, and similar areas that are not used solely as employee work areas. Mechanical, electrical and telephone closets, janitor closets, and similar non-occupied spaces that are not common areas or assigned work areas are not required to have visual alarm devises.

MID-RISE BUILDING: Buildings measured from 55 feet to 75 feet above the lowest floor level of fire department vehicular access shall be enhanced with high-rise provisions as set forth in Section 509.1 of the California Fire Code.

MODEL ROCKET: shall mean any toy or educational device which weighs not more than 500 grams, including the engine and any payload that is propelled by model rocket engines.

MODEL ROCKET ENGINE: shall mean a commercially manufactured, non-reusable rocket propulsion device which is constructed of a nonmetallic casing and solid propellant, wherein all of the ingredients are self-contained so as not to require mixing or handling by the user and which have design and construction characteristics determined by the State Fire Marshal to provide a reasonable degree of safety to the user. (All remaining provisions of Section 202 are unchanged) 10 Page | 10 10/1/2025

8.12.030 Modifications, Amendments, and Deletions to Appendix Chapter 1 of the Fire Code
A. There is adopted by reference and with the following additions, deletions and amendments, Appendix Chapter 1, Administration, of the Fire Code:

1. Section 104.8.1 is amended to read as follows:
104.8.1 Legal Defense. Any liability against the City of Cathedral City Fire Department or any officer or employee shall be as provided for in California Government Code and case law. Fire suppression, investigation and rescue or emergency medical costs are recoverable in accordance with California Health and Safety Code Sections 13009 and 13009.1. Any person who negligently or intentionally, or in violation of law, causes an emergency response, including but not limited to, a traffic accident or spill of toxic or flammable fluids or chemicals, is liable for the costs of securing such emergency, including those costs set out in Government Code Section 53150, et seq. Any expense incurred by the fire department for securing such an emergency situation shall constitute a debt of such person and shall be collectible by the public agency in the same manner as in the case of an obligation under contract, expressed or implied.
(All other provisions of Section 104.7 are the same.)

2. Section 106.1.1 Plan Submittal is added:
106.1.1 Plan Submittal. Any plan or master engineering report submitted for review shall be stamped by a California licensed professional architect or engineer.

EXCEPTION: Structural plans (new construction or tenant improvement) may be stamped by a California Registered Designers with AHJ approval.

3. Section 113.4 is amended to read as follows:
113.4 Violations and Penalties. Each person or entity who engages in any of the following conduct is guilty of an infraction violation which is punishable by a fine in an amount provided by the City Municipal Code Section 13.65.050 and by the imposition of any and all other criminal penalties set forth in Chapter 13.65:
a. Violate or fail to comply with any of the provisions of the California Fire Code, or this chapter;
b. Fail to comply with any order made pursuant to the California Fire Code or this chapter;
c. Build or construct in violation of any detailed statement, specifications, or plans submitted and approved pursuant to the California Fire Code or this chapter;
d. Build or construct in violation of any certificate or permit issued 11 Page | 11 10/1/2025
pursuant to the California Fire Code or this chapter; or e. Fail to comply with an order made pursuant to the California Fire Code or this chapter which is affirmed or modified after an appeal was conducted.

Each person or entity which engages in flagrant and serious violations and/or continued noncompliance after notice or order to comply has been served on the violator or posted on the subject property at which a violation exists is guilty of a misdemeanor violation which is punishable by a fine provided by Municipal Code Section 13.70.080 and by the imposition of any and all other criminal penalties set forth in Chapter 13.70.

Each person or entity is guilty of a separate offense for each day, or portion thereof, during which any violation of any provision of the California Fire Code or this chapter is committed, continued or permitted by such person or entity after notification of the initial violation and shall be punishable according to the terms set forth herein.

The application of the penalties provided for in this section shall be cumulative and shall not prevent the City from pursuing other remedies provided by the City of Cathedral City Municipal Code for said violations including, but not limited to, the abatement of public nuisance conditions. (All other provisions of Section 113 are the same.)
B. A copy of the foregoing modifications, amendments and deletions to Fire Code Appendix Chapter 1 shall be maintained in the City's Building and Fire Departments and available for public inspection.

8.12.040 Modifications, Amendments and Deletions to Appendix B of the Fire Code
A. There is adopted by reference and with the additions, deletions and amendments adopted herein, Appendix B, Fire Flow Requirements for Buildings, which is a part of the Fire Code. A copy of Appendix B, as amended, shall be maintained in the City's Building and Fire Departments and available for public inspection.

B. The following amendment is made to Appendix B:

Table B105.2 Required Fire-Flow for Buildings Other Than One- and TwoFamily Dwellings, Group R-3 and R-4 Buildings and Townhouses.

Section 903.3.1.1 of the International Fire Code is amended to allow 50% of the value in Table B105.1(2)a
.

Section 903.3.1.2 of the International Fire Code is amended to allow 50% of the value in Table B105.1(2)a
.

C. The following deletion and amendment is made to Appendix B:

Footnote “a” – The reduced fire-flow shall not be less than 1,000 gallons per minute is deleted.

Footnote “b” – The reduced fire-flow shall not be less than 1,500 gallons per 12 Page | 12 10/1/2025
minute and is renumbered to become Footnote “a”.

D. The following amendment is made to Appendix B:

Section B106 Referenced Standard
ICC IFC-18 International Fire Code, Table B105.2 to add (as amended). (All other provisions of Appendix B remain the same.)

8.12.050 Adoption of Other Appendices of the Fire Code without Amendments A. There is adopted by reference and without amendment, the following appendices to the Fire Code:

Appendix Chapter 4 – Special Detailed Requirements Based on Use and Occupancy
Appendix A: Board of Appeals
Appendix E: Hazardous Materials Categories
Appendix F: Hazard Ranking
Appendix G: Cryogenic Fluids -Weight and Volume Equivalents Appendix H: Hazardous Materials Management Plans and
Hazardous Materials Inventory Statements
Appendix J-1.1: Cathedral City Public Safety Radio System Coverage Specifications
Appendix K: Construction Requirements for Existing Ambulatory Care Facilities
Appendix L: Requirements for Fire Fighter Air Replenishment Systems Appendix M: High-Rise Buildings Retroactive Automatic Sprinkler Requirement.

Appendix N: Indoor Trade Shows and Exhibitions
Appendix O: Temporary Haunted Houses, Ghost Walks and Similar Amusement Uses
Appendix P: Cathedral City Fire Department Development Guidelines A copy of the City of Cathedral City Fire Department Development Guidelines and the Cathedral City Public Safety Radio System Coverage Specifications shall be kept on file with the City Clerk.

B. The following modifications, amendments and deletions are made Section 308:

1. Section 308.1.7 is amended to regulate the use of Sky Lanterns:
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308.1.7 Sky Lanterns. Sky Lanterns are prohibited in Cathedral City without written permission (fire permit) by the Fire Chief or his/her designee.

2. Section 308.1.6. is amended to regulate the use of Tiki/Luau torches:
308.1.6 Open-flame devices. A person shall not utilize or allow to be utilized, an open flame or use of a Tiki or Luau torch in connection with a public meeting or gathering for purposes of deliberation, worship, entertainment, amusement, instruction, education, recreation, awaiting transportation or similar purpose in Group A or E occupancies without first obtaining a permit in accordance with Appendix Chapter 1, Section 105.6.

3. Section 308.3.2.1 is added to regulate the installation of permanent Tiki and/or Luau torches:

Section 308.3.2.1 Installation of Permanent Tiki and/or Luau torches using Liquid Propane Fuel or Natural Gas.
a. The following regulations apply to the installation of permanent Tiki and Luau torches using liquid propane fuel or Natural gas:
i.) Only LPG or natural gas fueled permanent Tiki and/or Luau torches will be allowed.
ii) Installer shall submit plans to the Planning Department for review and approval. After Planning Department approval, the plans must be reviewed and approved by the Building Department and Fire Department. After all approvals,
installer must obtain an operational permit for use of an open flame device.
iii) Maximum length of flame shall not exceed twelve (12) inches.
iv) Flame shall be a minimum of eight (8) feet from ground level and entire torch shall be entirely on private property. v) Minimum size of pipe support shall be one- and one-half inches (1 1/2") in diameter. EXCEPTION: If mounted on a structure and braced to the satisfaction of the inspection authority, minimum size could be one inch (1"). A radius of five (5) feet between torch burner and combustibles shall be maintained.
b. Where natural gas or LPG is used, an approved shut-off valve shall be located at or near the base of the torch and a labeled secondary shut-off shall be located at a readily accessible remote location.

Secondary valves may operate one or more torches.
(All remaining provisions of Section 308 are unchanged) C. The following modifications, amendments and deletions are made Section 503:

1. Subsection 503.1.2 is amended to regulate fire apparatus access roads for developments of one-or two-family dwellings:
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503.1.2 Additional access. The Fire Chief is authorized to require more than one fire apparatus access road based on the potential for impairment of a single road by vehicle congestion, condition of terrain, climatic conditions or other factors that could limit access. Developments of one-or two-family dwellings where the number of dwelling units exceeds 25 shall be provided with separate and approved fire apparatus access roads. All multiple-family residential developments shall provide with two separate and approved fire apparatus access roads.

2. Subsection 503.2. is added to provide for the evaluation of the design of access roads:
503.2 (b) Access road design. The Fire Chief shall evaluate access road design in terms of total response efficiency. The Fire Chief is authorized to make modifications to access road network design, access road route and inter-connectivity with new or existing roads so that response efficiency is maintained.

3. Subsection 503.5.3 is added to regulate access roads with installed fences which cause the distance from the road to exceed the maximum distance allowed in Section 503:
503.5.3 Fences. When fences are installed that caused the distance from an approved fire department access road to exceed the maximum distance allowed in Section 503 here in, a person gate shall be provided in the fence to maintain the required fire department access. The gate shall be a minimum four (4) feet in width and be equipped with a keybox, key switch and/or lock accessible from both sides in accordance with Section 506 of this Code.

4. Subsection 503.1.4 is added to regulate fire access roads, fire lanes and signage:
503.1.4 Fire apparatus access roads, fire lanes and signage. In all locations where access by emergency vehicles for fire suppression and rescue purposes is unduly difficult or subject to obstruction, the Fire Chief may designate certain locations as fire lanes. Fire lanes may include some or all roadways within certain public or private structural complexes. Such roadways shall be marked and/or posted in accordance with the standards provided by the Cathedral City Fire Department. Persons or entities who park, leave, abandon, or store a vehicle(s) or cause or permit a vehicle(s) to be parked, left, abandoned, or stored in a fire lane may be subject to the issuance of an infraction citation pursuant to Chapter 13.65 of the Cathedral City Municipal Code and/or may have their vehicle(s) towed from the location pursuant to local or State statutes. All fire lane signs and/or curb markings shall be maintained in a legible and visible condition at all times by the property owner(s).

5. Subsection 503.2.1 is amended to regulate the dimensions for fire access roads for subterranean and above-ground parking structures and those located in the proximity of buildings and structures more than thirty (30) feet in height:
503.2.1 Dimensions. Fire apparatus access roads shall have an 15 Page | 15 10/1/2025
unobstructed width of not less than 20 feet except for approved security gates in accordance with Section 503.6 and an unobstructed vertical clearance of not less than 13 feet 6 inches, except that subterranean and above ground parking structures shall have an unobstructed vertical clearance of not less than 8 feet 6 inches.

6. Subsection 503.2.3 is amended to regulate the design of access road surfaces:
503.2.3 Surface. Fire apparatus access roads shall be designed and maintained to support the imposed loads of fire apparatus (73,000 lbs.

GVW) and shall be surfaced so as to provide all- weather driving capabilities.

7. Subsection 503.2.4 is amended to regulate the turning radius of access roads:
503.2.4 Turning radius. The required turning radius of a fire apparatus access road shall be determined by the Fire Chief. Fire access road turns and corners shall be designed with a minimum inner radius of 15 17 feet and an outer radius of 38 feet. Radius must be concentric.

8. Subsection 503.2.5 is amended to regulate dead ends for access roads:
503.2.5 Dead ends. Dead-end fire apparatus access roads in excess of 150 one hundred fifty feet in length shall be provided with an approved area for turning around fire apparatus. The City of Cathedral City has two approved turn around provisions: (i) a cul-de-sac with an outside turning radius of 38 feet from centerline with no parking permitted and (ii) a hammerhead turnaround 65 feet from centerline in both directions.

9. Subsection 503.2.7 is amended to regulate the grade of access roads:
503.2.7 Grade. The grade of the fire apparatus access road shall be within the limits established by the Fire Chief based on the fire department's apparatus. No grade shall exceed 12 percent. Grade transitions shall not exceed maximum angle of approach and angle of departure based on the fire department's apparatus as determined by the Fire Chief.

10. Subsection 503.2.9 is added to provide for aerial fire access roads:
503.2.9 Aerial Fire Access Roads. Buildings or portions of buildings or facilities exceeding 30 feet in height above the lowest level of fire department vehicle access shall be provided with approved fire apparatus access roads capable of accommodating fire department aerial apparatus.

Overhead utility and power lines shall not be located within the aerial fire apparatus access roadway.
a. 503.2.9.1 Minimum width. Fire apparatus access roads shall have a minimum unobstructed width of 26 feet in the immediate vicinity of any building or portion of building more than 30 feet in height.
b. 503.2.9.2 Proximity to building. At least one of the access routes required under this section 503.2.9 shall be located within a 16 Page | 16 10/1/2025
minimum of 15 feet and a maximum of 30 feet from the building and shall be positioned parallel to one entire side of the building.

11. Amendments are made to Section 503.6 to maintain emergency response standards related to efficiency and time. It is necessary for the Fire Chief to have the authority to condition the design of access roads related to the proposed project as delays in response times have a detrimental effect upon public safety:
503.6 Security gates. The installation of security gates across a fire apparatus access road shall be approved by the Fire Chief. Where security gates are installed, they shall have an approved Opticom system as a means of emergency operation. The security gates and the emergency operation shall be maintained at all times.
a. 503.6.1 Knox access switches; approved padlock or chain.

Existing secured automated vehicle gates or entries shall utilize approved Knox access switches as required by the Fire Chief. The location of the Knox access switches must be approved by the fire code official prior to the installation. Secured non-automated vehicle gates or entries shall utilize an approved padlock or chain (maximum link or lock shackle size of ¼ inch) when required by the Fire Chief.
b. 503.6.2 Residential complexes. Residential complexes using secured automated vehicle entry gates or entries shall utilize a traffic pre-emptive strobe-activated switch and/or an approved Knox key electric switch when required by the Fire Chief. Gate arms securing parking lots and parking structures shall be equipped with a fire department approved dual-keyed Knox key electric switch. When activated, the arm or arms shall open to allow fire and law enforcement access.
c. 503.6.3 Dimensions. Approved security gates shall be a minimum of 20 feet in unobstructed drive width on at least the entry side with gate in open position. An unobstructed vertical clearance of not less than 13 feet 6 inches (4115 mm) shall be provided and maintained at all times.
d. 503.6.4 Power failure. In the event of a power failure, the gate(s) shall be defaulted or automatically transferred to a fail- safe mode allowing the gate to be pushed open without the use of special knowledge or any equipment. If a two- gate system is used, the override switch must open both gates.
e. 503.6.5 Override switch. If there is no sensing device that will automatically open the gates for exiting, a fire department approved Knox electrical override switch shall be placed on each side of the gate in an approved location.
f. 503.6.6 Spikes and roadway obstructions prohibited. No spikes or roadway obstructions shall be constructed within access and exit ways without provisions for emergency retraction or removal with a Knox electrical override switch or similar device as approved by the Fire Chief.
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g. 503.6.7 Final inspection. A final field inspection by the Fire Chief is required before electronically controlled gates may become operative. Prior to final inspection, electronic gates shall remain in a locked-open position.
(All remaining provisions of Section 503 are unchanged) D. The following modifications, amendments and deletions are made Section 504:

1. Section 504.1 is amended to add provisions pertaining to required access:
504.1 Required access. Exterior doors and openings required by this code or the California Building Code shall be maintained readily accessible for emergency access by the fire department. An approved access walkway leading from fire apparatus access roads to exterior openings shall be provided when required by the Fire Chief. Finished grade to be flat and accessible on all sides of the building where ground ladder access is the only means to reach the highest point on the building from the exterior. Distance from building for finish grade shall be flat as required by the Fire Chief. Obstructions shall not be placed as to interfere with ground ladder placement.
(All remaining provisions of Section 504 are unchanged) E. The following modifications, amendments and deletions are made Section 505:

1. Subsection 505.1.1 is added to provide the minimum premises identification standards for multi-family, multi-retail and multi-commercial occupancies:
505.1.1 Address numbers for specified occupancies. All multi-family, multi-retail and multi-commercial occupancies shall have a minimum of twelve (12) inch high numbers, with a minimum one and one- half (1½) inch stroke. All commercial, light and heavy industrial occupancies shall have a minimum of twelve (12) inch high numbers, with a minimum one and one-half (1½) inch stroke.

All address numbers are required to be illuminated (back or surface lit). (All remaining provisions of Section 505 are unchanged) F. The following modifications, amendments and deletions are made Section 506:

1. Section 506.1 is amended to add provisions pertaining to key boxes:
506.1 Where required. Where access to or within a structure or an area is restricted because of secured openings or where immediate access is necessary for life-saving or fire-fighting purposes, the Fire Chief is authorized to require a key box to be installed in an approved location. The key box shall be of an approved type and shall contain keys to gain necessary access as required by the Fire Chief. Secured emergency access gates serving apartment, townhome or condominium complex courtyard must provide a key box in addition to association or facility locks. 18 Page | 18 10/1/2025
The nominal height of Knox lock box installations shall be five (5) feet above grade. Location and installation of Knox key boxes must be approved by the Fire Chief.
(All remaining provisions of Section 506 are unchanged) G. The following modifications, amendments and deletions are made Section 507:

1. The following modifications, amendments and deletions are made Section 507:
a. Subsection 507.5.3 is amended to provide additional installation requirements for private fire service mains and appurtenances:
i. NFPA 25 shall establish the minimum requirements for the installation of private fire service mains and their appurtenances supplying automatic sprinkler systems, open sprinkler systems, water spray fixed systems, foam systems, private hydrants, monitor nozzles or standpipe systems with reference to water supplies, private hydrants and hose houses.
ii. Private fire service mains shall be not less than eight (8) inches in diameter when serving private fire hydrants and fire sprinkler systems.
iii. Ductile iron piping with a minimum rating of Class 150 or C900 Class 200 plastic piping, installed to NFPA 24 standards, is required for all private fire service mains. When fire pumps are installed, a minimum Class 200 ductile iron fire service main is required.
iv. All restrained joints on private fire service mains, private fire hydrant lines and fire sprinkler laterals shall be calculated as required by NFPA 24,or use Water Agency/District Drawings.

Calculations shall be submitted and the resulting
dimensions/details of restrained joints shall be shown on the plans.

Minimum design working pressure shall be 150 PSI. Special design considerations may be required with high static pressures or lines in which fire pumps are installed.
v. Private fire service mains when supplying three (3) or more fire hydrants shall be designed with a looped water supply.
vi. In order to isolate the fire sprinkler underground lateral from any private fire hydrant system, a listed aboveground indicating valve (post indicator valve or outside stem and yoke valve) shall be provided for the fire sprinkler lateral.
vii. Indicating valves shall be required to sectionalize no more than two commercial buildings, three residential buildings or two private fire hydrants on private fire service mains or when 5 or more fire appliances are on a looped fire service underground system. Any deviation will require the Fire Department approval.
viii. On-site private fire hydrants and Fire Department Connections shall be located less than three (3) feet behind the face of a curb or when no curb is provided and shall be protected by guard posts set in concrete to the following specifications:
• Constructed of steel not less than 4 inches in diameter and concrete filled
• Spaced not more than 4 feet between posts on center
• Set not less than 3 feet deep in a concrete footing of not less 19 Page | 19 10/1/2025
than a 15-inch diameter
• Set with the top of the posts not less than 3 feet above ground • Located not less than 3 feet from the fire hydrants, post indicator valves and Fire Department connections
• All guard posts shall be painted yellow. (Rust-Oleum safety yellow #2149 or equivalent)
ix. The installing contractor shall provide a completed "Contractors Material & Test Certificate for Underground Piping" as required by NFPA 24.
x. Double Check Detector Assemblies (Private):
• All Double Check Detector Assemblies shall be UL listed/FM approved for fire protection service in compliance with NFPA

24. • All Double Check Detector Assemblies shall be installed with two tamper switches and electrically monitored at a UL listed central station service, when there are 20 or more fire sprinkler heads.
• All Double Check Detector Assemblies shall be provided with a chain and breakaway security lock. A key shall be kept in the spare sprinkler head box and KNOX key box.
• Reduced pressure zone assemblies or reduced pressure
detector assemblies shall not be installed in private fire service mains and fire sprinkler systems.
b. Subsection 507.5.3.1 is amended to provide additional installation requirements for private fire service mains and appurtenances:
507.5.3.1 Fire Department Connections and Private Fire
Hydrants
i. Fire Department Connections shall be installed at apparatus access roads in locations approved by the fire department. Check with the fire department prior to plan submittal.
ii. The Fire Department Connection shall extend between 30" to 48" above finished grade.
iii. Fire Department Connections shall be visible, accessible, and installed in approved locations downstream of all Double Check Detector Assemblies. The check valve for the FDC shall be above grade. Fire Department connections shall be located within 100 feet of a fire hydrant. Exceptions may be made by the fire code official.
iv. Fire Department Connections shall be equipped with protective caps.
v. When the total sprinkler system demand, including hose allowance, is less than 499 G.P.M., the Fire Department Connection riser shall be 4" in nominal diameter and shall have a standard 2-way threaded 2 ½” connection.
vi. When the total sprinkler system demand, including hose allowance, is 500 GPM to 1,199 G.P.M., the Fire Department Connection riser shall be 6" in nominal diameter and shall have a standard 3-way threaded 2 ½” connection.
vii. When the total sprinkler system demand, including hose allowance, is greater than 1,200 G.P.M., the Fire Department Connection riser shall be 6" in nominal diameter and shall have a standard 4-way threaded 2 ½” connection.
viii. In a building complex, where two or more buildings are served, or 20 Page | 20 10/1/2025
identification of which building is served by separate Fire Department Connections; the Fire department will require signs of substantial construction to be posted at each Fire Department Connection identifying the respective buildings served. The minimum letter size shall be 1" on a contrasting background, white letters on a red background.
ix. Fire Department Connections shall be painted red (Rust-Oleum Safety Red # 2163 or equivalent).
x. Fire Department Connection piping shall be ductile iron from the private fire service main to the Fire Department Connection check valve above ground. The pipe from the Fire Department
Connection check valve to the Fire Department Connection shall be ductile iron pipe. The NFPA 13R Fire Department Connection piping shall be copper from the private fire service main. xi. Commercial fire hydrants with a 4", x 2 1/2" x 2 1/2" outlets are required when fire flow demand is 1,500 GPM or greater.

Residential fire hydrants with a 4” x 2 ½” outlets are required when the fire flow demand is less than 1500 GPM. Existing residential fire hydrants that are located within 150’ of a building do not need to be upgraded to commercial fire hydrants if that hydrant(s) can provide the required fire flow.
xii. Private fire hydrants shall be painted red (Rust-Oleum Safety Red # 2163 or equivalent).
xiii. Blue reflective markers shall be installed to identify location of all fire hydrants. These markers shall be visible from both directions of vehicle travel.
xiv. Hydraulic calculations shall be provided for all private fire hydrant systems. Calculations shall be calculated back to the point of the flow test. The fire hydrant system shall meet the fire flow requirements as required by the California Fire Code.
xv. When the private fire service main serves both fire sprinkler system(s) and private fire hydrant(s), the hydraulic calculation shall include the fire hydrant flow rate with associated private fire hydrant(s) and fire sprinkler flow rate for a minimum design of 20 PSI residual pressure for the fire hydrant (s).
xvi. All private fire service mains and water tanks shall be inspected, tested, and maintained in accordance with California Code of Regulations, Title 19, Division 1, Chapter 5:
• Private fire hydrants of all types: Inspection annually and after each operation; flow test and maintenance completed annually. • Fire service main piping: Inspection of exposed, annually; flow test every five years.
• Fire service main piping strainers: Inspection and maintenance completed after each use.
• Records of inspections, testing and maintenance shall be maintained.
xvii. Dry barrel and wall hydrants shall be inspected annually and after each operation with the necessary corrective action taken as shown in table 7.2.2.4 of the Cathedral City Fire Dept.

Development Guidelines.
xviii. Wet barrel shall be inspected annual and after each operation with the necessary corrective action taken as shown in table 7.2.2.5 of the Cathedral City Fire Dept. Development Guidelines.
c. Subsection 507.5.1 is amended to provide more stringent private 21 Page | 21 10/1/2025
fire hydrant placement requirements:
507.5.3.1.1 Where required. Minimum basic private fire hydrant spacing for multi-family residential (triplexes or greater, apartment houses, hotels, convents or monasteries) and all commercial or industrial properties shall be spaced not more than 300 feet along streets or fire apparatus access roadways, so that all fire apparatus- accessible portions of the building are within 150 feet of a hydrant.
(All remaining provisions of Section 507 are unchanged) H. The following Section 511 is added to provide reliable public safety communication:

Section 511 is added to ensure portable hand-held radios used by police and fire personnel often do not have the signal strength to send radio messages from within buildings or from underground parking garages to outside emergency responders. Installation of a Public Safety Radio System into the building will increase radio frequency amplification for all first responders and improve public safety:

SECTION 511 FEATURES AND REQUIREMENTS.
511.1 General. All new buildings four stories in height or taller and all subterranean levels of parking structures or existing altered buildings over twenty (20) percent shall meet the City of Cathedral City Public Safety Radio System Coverage specifications as determined by the Fire Chief.

I. The following modifications, amendments and deletions are made to Section 901:

1. Section 901.4 is amended to provide circumstances under which existing non-conforming buildings are required to comply with fire safety requirements for newly constructed buildings and structures:
901.4 Fire Protection and Life Safety Systems. Fire protection systems shall be maintained in accordance with the original installation standards for that system. Required systems shall be extended, altered, or augmented as necessary to maintain and continue protection whenever the building is altered, remodeled or added to. Alterations to fire protection systems shall be done in accordance with applicable standards.

Exceptions: Existing non-conforming buildings shall comply with all the fire safety requirements for a newly constructed building or structure under the following circumstances:
a. When the floor area in an existing non-conforming building is increased greater than fifty (50) percent of the total square footage of the original building.
b. When a change in occupancy occurs in an existing nonconforming building which, in the opinion of the Fire Chief or Chief Building Official, significantly changes the use of the building. c. When structural repairs and/or alterations are made to an existing non-conforming building which exceeds fifty (50) percent 22 Page | 22 10/1/2025
aggregate replacement of the total square footage of the original building.

2. Section 901.6 is amended to provide additional provisions pertaining to inspections, testing and maintenance of fire detection, alarm and extinguishing systems:
901.6 Inspection, testing and maintenance. Fire detection, alarm and extinguishing systems shall be maintained in an operative condition at all times, and shall be replaced or repaired where defective. It shall be the responsibility of the owner to ensure that these requirements are met.

Non-required fire protection systems and equipment shall be inspected, tested and maintained or removed. Prior to the removal of any fire protection system, permission shall be obtained from the Fire Chief.

J. The following modifications, amendments and deletions are made Section 903:

1. Section 903.2 is amended to provide more stringent fire protection requirements by requiring the installation of approved automatic fire sprinkler systems in every newly constructed Group A occupancy building where one of the following conditions exist;
a. Section 903.2.1.1 is amended as follows:
903.2.1.1 Group A-1 An automatic sprinkler system shall be provided for Group A-1 occupancies where:

The aggregate fire area under the roof exceeds 3,000 square feet.

Fire resistive walls shall not be considered for reducing the fire area of the building for the purposes of this section.
(The other provisions of section 903.2.1.1 remain the same) b. Section 903.2.1.2 is amended as follows:
903.2.1.2 Group A-2 An automatic sprinkler system shall be provided for Group A-2 occupancies where:

The aggregate fire area under the roof exceeds 3,000 square feet. Fire resistive walls shall not be considered for reducing the fire area of the building for the purposes of this section. (The other provisions of section 903.2.1.2 remain the same) c. Section 903.2.1.3 is amended as follows:
903.2.1.3 Group A-3 An automatic sprinkler system shall be provided for Group A-3 occupancies where:

The aggregate fire area under the roof exceeds 3,000 square feet.

Fire resistive walls shall not be considered for reducing the fire area of the building for the purposes of this section.
(The other provisions of section 903.2.1.3 remain the same) d. Section 903.2.2 is amended as follows:
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903.2.2 Group B. An automatic sprinkler system shall be provided for Group B occupancies where one or more of the following conditions exists:
i) Where the aggregate fire area under the roof exceeds 3,000 square feet. Fire resistive walls shall not be
considered for reducing the gross floor area of the building for the purposes of this section.
ii) Where the fire area has an occupant load of 100 or more persons.
iii) Where the fire area is located on a floor other than the level of exit discharge.
e. Section 903.2.3 is amended as follows:
903.2.3 Group E. Except as provided for in Sections 903.2.3.1 for a new public school campus and 907.2.3.6 (Automatic fire alarm system) for modernization of an existing public school campus building(s), an approved automatic fire sprinkler system shall be provided for Group E occupancies where:
i) The aggregate fire area under the roof exceeds 3,000 square feet. Fire resistive walls shall not be considered for reducing the fire area of the building for the purposes of this section.
ii) Throughout every portion of educational buildings below the level of exit discharge.

Exception: An automatic sprinkler system is not required in any fire area or area below the level of exit discharge where every classroom throughout the building has at least one exterior exit door at ground level and the aggregate fire area under the roof does not exceed 3,000 square feet
(The other provisions of section 903.2.3 remain the same) f. Section 903.2.4 is amended as follows:
903.2.4 Group F-1. An approved automatic fire sprinkler system shall be provided throughout all new buildings used for Group F occupancies where one or more of the following conditions exists:
i) Where a Group F-1 aggregate fire area under the roof exceeds 3,000 square feet regardless of stories.
ii) Where a Group F-1 fire area is located more than three stories above grade plane; or
iii) Where the combined area of all Group F-1 fire areas on all floors, including any mezzanines, exceeds 3,000 square feet.
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Fire resistive walls shall not be considered for reducing the fire area of the building for the purposes of this section. iv) Cannabis Cultivation and Manufacturing Sites: The Fire Department considers these uses to be a Group F-1
(Factory Industrial Moderate-Hazard Occupancy). All new construction is required to be fire sprinkled per the
amended Fire Code (see above requirements).

Cannabis Cultivation and Manufacturing Sites that will be sited in an existing structure, an automatic sprinkler system shall be provided throughout all buildings containing a Group F-1 occupancy where one of the following conditions exists:
(a) Where a Group F-1 fire area exceeds 12,000
square feet; or
(b) Where a Group F-1 fire area is located more than
three stories above grade plane; or
(c) Where the combined area of all Group F-1 fire areas on all floors, including any mezzanines, exceeds
24,000 square feet.
(The other provisions of section 903.2.4 remain the same) g. Section 903.2.7 is amended as follows:
903.2.7 Group M. An automatic fire sprinkler system shall be provided throughout buildings containing a Group M occupancy where one or more of the following conditions exist:
i) Where a Group M aggregate fire area under the roof
exceeds 3,000 square feet. regardless of stories.
ii) Where a Group M fire area is located more than three stories above grade plane; or
iii) Where the combined area of all Group M fire areas on all floors, including any mezzanines, under the roof exceeds 3,000 square feet.

Fire resistive walls shall not be considered for reducing the fire area of the building for the purposes of this section.
h. Section 903.2.9 is amended as follows:
903.2.9 Group S-1. An automatic fire sprinkler shall be provided throughout all buildings containing a Group S-1 occupancy where one or more of the following conditions exists:
i) A Group S-1 aggregate fire area under the roof exceeds 3,000 square feet regardless of stories.
ii) A Group S-1 fire area is located more than three stories above grade plane; or
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iii) The combined area of all Group S-1 fire areas on all floors, including any mezzanines, under the roof exceeds 3,000
square feet.
iv) Fire resistive walls shall not be considered for reducing the fire area of the building for the purposes of this section. i. Section 903.2.9.1 is amended as follows:
903.2.9.1 Repair garages. An automatic sprinkler system shall be provided throughout all buildings used as repair garages in accordance with Section 406 of the California Building Code, where the aggregate fire area containing a repair garage under the roof exceeds 3,000 square feet or where the vehicles serviced are parked in the basement.
j. Section 903.2.10 is amended as follows:
i) 903.2.10 Group S-2. An automatic sprinkler system shall be provided throughout all buildings containing a Group S2 occupancy where one or more of the following conditions exist:
(a) A Group S-2 aggregate fire area under the roof
exceeds 3,000 square feet regardless of stories;
Exception: Group S-2 carports – 100% open on all sides of non-combustible construction
(b) A Group S-2 fire area is located more than three
stories above grade plane; or
(c) The combined area of all Group S-2 aggregate fire
areas on all floors, including any mezzanines, under
the roof exceeds 3,000 square feet.

Fire resistive walls shall not be considered for reducing the fire area of the building for the purposes of this section.

An automatic sprinkler system shall be provided throughout buildings classified as enclosed parking garages in accordance with Section 406.4 of the California Building Code or where located beneath other occupancy groups.
k. Section 903.2.10.1 is amended as follows:
903.2.10.1 Commercial parking garages. An automatic sprinkler system shall be provided throughout buildings used for storage of commercial trucks or buses where the aggregate fire area under the roof exceeds 3,000 square feet.
l. Section 903.2.4.4, is added for Group F-2 occupancies 903.2.4.4 Group F-2. An automatic sprinkler system shall be provided throughout all new buildings containing a Group F-2 26 Page | 26 10/1/2025
occupancy when the fire area under roof exceeds 3,000 square feet.
m. Section 903.3.10 is amended to provide additional requirements for floor control valves:
903.3.10 Floor control valves. Approved supervised indication control valves shall be provided at the point of connection to the riser on each floor in buildings three or more stories in height unless otherwise approved by the Fire Chief. Valve locations will be determined and approved by the Fire Chief.
n. Section 903.6 is added to require the installation of automatic sprinkler systems for buildings constructed near an existing fire sprinkler protected structure:
903.6.1 Buildings proximately located to a protected building or structure. An approved automatic fire sprinkler system shall be installed in any building constructed within 10 feet of an existing fire sprinkler protected building or structure.
o. Section 903.6.1.1 is added to establish conditions in which tenant improvements or added square footage will result in the application of Section 903:
903.6.1.1 Tenant improvements. Section 903 shall apply to existing buildings undergoing tenant improvement where the improvement or added square footage results in the total aggregate fire area of the building increasing by 50% or more of the existing square footage.
(All other pro visions of Section 903.2 not expressly amended herein remain unchanged)
p. Section 903.6.2 is added for Increased Square Footage.

Section 903.6.2 Increased Square Footage. Any existing building or structure undergoing construction or alteration which adds square footage exceeding the total aggregate floor area, as prescribed inSection 903.2 shall require an approved automatic fire sprinkler system.

Exceptions: (1) One and two-family dwellings and manufactured homes (2) additions to occupancies equating to fifty (50) percent or less of total floor area. Fire Sprinkler requirements for these occupancies shall be determined based on the California Fire Code Table B105.1 – Minimum Required Fire Flow for Buildings.

K. The following modifications, amendments and deletions are made Section 916:

1. Section 916.3.1 is added:
916.3.1 Alarms. The gas detection system shall initiate a local alarm and transmit a signal to a constantly attended control station when a shortterm hazard condition is detected. The alarm shall be both visible and audible and shall provide warning both inside and outside the area where 27 Page | 27 10/1/2025
gas is detected. The audible alarm shall be distinct from all other alarms.

2. Section 916.3.2 is added:
916.3.2 Supply Shutoff. The gas detection system shall automatically close the shutoff valve at the source on gas supply piping and tubing related to the system being monitored for whichever gas is detected.

Exception: Automatic shutdown is not required for reactors utilized for the production of highly toxic or toxic compressed eases where such reactors are:
a. Operated at pressures less than 15 pounds per square inch (psi).
b. Constantly attended.
c. Provided with readily accessible emergency shut-off valves.

3. Section 908.3.3 is added:
908.3.1 Valve closure. The automatic closure of shutoff valves shall be in accordance with the following:
a. Where the gas-detection sampling point initiates the gas detection system alarm, which is within a gas cabinet exhausted enclosure, the shutoff valve in the gas cabinet or exhausted enclosure for the specific gas detected shall automatically close.
b. Where the gas-detection sampling point initiates the gas detection system alarm, which is within a gas room and compressed gas containers are not in gas cabinets or exhausted enclosures, the shutoff valves on all gas lines for the specific gas detected shall automatically close.
c. Where the gas-detection sampling point initiates the gas detection system alarm, which is within a piping distribution manifold enclosure, the shutoff valve for the compressed container of specific gas detected supplying the manifold shall automatically close.

Exception: When the gas-detection sampling point initiates the gas detection system alarm, which is at a use location or within a gas valve enclosure of a branch line downstream of a piping distribution manifold, the shutoff valve in the gas valve enclosure for the branch line located in the piping distribution manifold enclosure shall automatically close.

L. Section 1103.11 is added Increased Hazard Class in Change of Use Section 1103.11 Increased Hazard Class in Change of Use. An approved fire alarm system shall be installed in existing, non-sprinklered buildings when a change of use occurs resulting in a higher hazard classification.
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M. Section 1201.1.1 is added Other Systems
Section 1201.1.1, Other Systems. Where required by the Fire Code Official, other systems and operations including but not limited to battery systems assembly, battery reconditioning and storage, research and development of battery storage systems, electric vehicle manufacturing and testing, and battery charging systems for cars or carts inside of buildings or structures, shall comply with this chapter.

Exception: When approved by the Fire Code Official, charging stations for electric vehicles located in open parking garages of Type I or II construction.

N. Section 3106.4.8 is added to regulate fire protection measures for parade floats:

SECTION 3106.4.8 PARADE FLOATS

1. 3106.4.8.1 Decorative materials. Decorative materials on parade floats shall be non-combustible or flame retardant.

2. 3106.4.8.2 Fire protection. Motorized parade floats and towing apparatus shall be provided with a minimum 2-A: 1O-B:C rated portable fire extinguisher readily accessible to the operator.

3. 3106.4.8.3 A twelve (12) inch minimum clearance of decorative materials shall be maintained around the vehicle and/or generator.

4. 3106.4.8.4 Portable generators shall be secure from tipping and subject to approval by the fire code official.

O. Section 5614 is added to regulate fireworks:

SECTION 5614 FIREWORKS
5614.1 Prohibition. The manufacture, sale, possession, storage, handling or use of "safe and sane" fireworks as currently defined in the California Health and Safety Code section 12529 or "dangerous fireworks" as currently defined in the California Health and Safety Code section 12505 or thereafter amended by state statute is prohibited in the City.

The provisions of this section do not apply to fireworks displays conducted in accordance with the provisions of any permit issued pursuant to this chapter.
5614.2 Seizure of fireworks. The Fire Chief, any authorized Fire Chief, or his or her designee, peace officer or other city official authorized to enforce the City's Municipal Code may seize, take, remove, or cause to be removed at the expense of the owner all prohibited fireworks and explosives. This will include all persons, firms or corporations who manufacture, sell, possess, store, handle or use any prohibited fireworks or explosives.

P. The following modifications, amendments and deletions are made Section 5704:

1. Section 5704.2.9.6.1.4.1 is added to prohibit the installation of 29 Page | 29 10/1/2025
combustible/flammable liquid tanks in residential districts:
5704.2.9.6.1.4.1 Location
The installation of underground combustible and/or flammable liquid tanks is hereby prohibited in all residential districts. The Fire Chief may authorize installation of underground combustible/flammable liquid tanks in agricultural, commercial and manufacturing districts.

2. The definition of Secondary Containment in Section 5704.2.9.7.4 added:

SECONDARY CONTAINMENT- That level of containment that is external to and separate from primary containment and is capable of safely and securely containing the material, without discharge, for a period of time reasonably necessary to ensure detection and remedy of the primary containment failure.

Q. Section 6109 is added regarding liquefied petroleum gas (LPG):

1. 6109.1.1 New Installation of Liquefied Petroleum Gas. All new installation of liquefied petroleum gas with an aggregate capacity of 2,000 gallons or more shall be protected by an approved automatic fixed water spray system. The system shall protect the entire surface area of the tank and the cargo tanker transfer area. The system shall be calculated to provide a minimum density of .25 gallons per minute per square foot with a one-hour duration water supply.

A copy of the foregoing modifications, amendments and deletions to the Fire Code shall be maintained in the City's Building and Fire Departments and available for public inspection.

Chapter 8.14
California Electrical Code, 2025 Edition

8.14.010 California Electrical Code Adopted with Amendments A. Except for the local amendments set forth herein, there is adopted by reference the California Electrical Code, 2025 Edition, which is based upon the 2020 National Electrical Code and is published by the California Building Standards Commission as Part 3 of Title 24 of the California Code of Regulations. A copy of the Code together with the local amendments is on file with the Building and Safety Division.

B. The California Electrical Code, 2025 Edition (hereinafter "Electrical Code") shall be the Electrical Code for the City of Cathedral City and said Code together with the adopted appendices and the amendments set forth in this chapter shall regulate and govern the design, construction, reconstruction, installation, quality of materials, location, operation, and maintenance or use of electrical equipment, wiring and systems within the City as well as the issuance of permits and the collection of permit fees.

8.14.020 Modifications, Amendments and Deletions to the Electrical Code A. The following modifications, amendments and deletions are made to the Electrical Code:

1. Section 230.79 is amended to read as follows:
30 Page | 30 10/1/2025
Section 230.79(C) One-Family Dwellings For a one-family dwelling, the service disconnecting means shall have a rating of not less than 200 amperes, 3-wire, with a minimum 225 ampere bus.

2. Section 310.3 is amended by adding Section 310.3(E), and reads as follows:

Section 310.3(E) Conductors for General Wiring The use of aluminum and copper-clad aluminum conductors, feeder conductors, branch circuit conductors and taps or service entrance cables smaller than size 1/0 (one ought) AWG (American Gauge Wire) is expressly prohibited.

8.14.030 Adoption, Modifications, Amendments and Deletions to Annex H of the Electrical Code
A. There is adopted by reference and with the following additions, deletions and amendments, Annex H (Administration and Enforcement), which is a part of the Electrical Code.

1. Section 80.2 is amended to designate the City's Chief Building Official and his/her designees as the Authority Having Jurisdiction:

80.2 Definitions.

Authority Having Jurisdiction. The City's Chief Building Official and his/her designees are designated as the Authority Having Jurisdiction for purposes of this Electrical Code and wherever the term "Authority Having Jurisdiction" is used in this Code, it shall mean the City's Chief Building Official and his/her designees.

8.14.040 Adoption of Other Annex Chapters of the Electrical Code without Amendments
There is adopted by reference and without amendment, the following annex chapters to the Electrical Code:

Annex A: Product Safety Standards
Annex B: Application Information for Ampacity Calculation Annex C: Conduit, Tubing, and Cable Tray Fill Tables for Conductors and Fixture Wires of the Same Size
Annex D: Examples
Annex E: Types of Construction
Annex F: Availability for Critical Operations Power Systems; and Development and Implementation of Functional Performance Tests (FPTs) for Critical Operations Power Systems
Annex G: Supervisory Control and Data Acquisition (SCADA) Annex I: Recommended Tightening Torque Tables from UL Standard 486A-486B
Chapter 8.18.

California Residential Code, 2025 Edition

8.18.010 California Residential Code Adopted with Amendments A. Except for the local amendments set forth herein, there is adopted by reference the California Residential Code, 2025 Edition, which is based upon the 2024 International Residential Code and is published by the California Building Standards Commission as Part 31 Page | 31 10/1/2025

2.5 of Title 24 of the California Code of Regulations. A copy of the Code together with the local amendments is on file with the Building and Safety Division.

B. The California Residential Code, 2025 Edition (hereinafter "Residential Code") shall be the Residential Code for the City and said Code together with the adopted appendices and the amendments set forth in this chapter shall regulate and govern the conditions and maintenance of all one- and two-family properties, buildings and structures within the City by providing the standards for supplied utilities and facilities and other physical things and condition essential to ensure that structures are safe, sanitary and fit for occupation and use and providing for the condemnation and demolition of buildings and structures that are unfit for human occupancy and use, and the issuance of permits and collection of permit fees.

8.18.020 Modifications, Amendments and Deletions to the Residential Code A. The following modifications, amendments and deletions are made to the Residential Code:

1. Section R103.1 is amended to read as follows:

R103.1 Creation of enforcement agency. There is established within the City, the Building and Safety Division, which shall be under the administrative and operational control of the Chief Building Official hereinafter referred to as the Chief Building Official.

2. Paragraph 2 of the Building portion of Section R105.2 is amended to reduce the height of fences which are exempt from permit requirements:

Building:
a. Fences and walls not over 3 feet.

3. Section R325 is updated and amended to read as follows:

SECTION R325 LIGHT, VENTILATION, HEATING AND AIR

CONDITIONING

4. Section R325.10 is amended to add an additional subsection, required air conditioning, to read as follows:

R325.10Required air conditioning. Every dwelling unit shall be provided with air conditioning facilities capable of cooling and maintaining a room temperature of not more than 80 degrees Fahrenheit in all habitable rooms.

R403.1.7.3.1 Minimum foundation elevation requirements.

The top of exterior foundation elevation of all residential structures used for human occupancy shall meet the following criteria.
a. If no elevations have been fixed in connection with a permit or approval, the finished floor shall be located at the highest elevation required as set forth as follows:
i. On level lots, the top of the exterior foundation shall be elevated to a minimum of 18 inches above the top of the curb or the top of the crown of the street immediately in front 32 Page | 32 10/1/2025
of the subject lot.
ii. On lots where the lot drains toward the adjacent road or is subject to water impounded behind an adjacent road, the finished floor shall be elevated to a minimum of 18 inches above the top of the crown of the adjacent road.
b. The requirement of this section may be waived or modified by the Chief Building Official, in his or her sole discretion, upon the existence of one or both of the following circumstances:
i. If a proposed method of construction that is prepared by a registered civil engineer provides equivalent flood
protection; or
ii. If the unique characteristics of a building site make the requirements unnecessary.

5. Section R902.1 of Chapter 9 of the Residential Code is amended by adding an additional exception for roofing material to require the installation of Class A roof assemblies tested in accordance with ASTM E108 or UL 790 for all new construction.

All new roof construction shall be of Class A roof assemblies tested in accordance with ASTM E108 or UL 790 respectively and shall be installed in accordance with Chapter 9 of the CRC as well as California WildlandUrban Interface Code, Section 504.2 Roof Assembly.

6. Section R904.2.1 is added to Chapter 9 of the Residential Code to provide that roof additions and alterations to existing buildings may be roofed in the same roofing material as the original building unless other materials are required by the Chief Building Official:

R904.2.1 Additions and alterations. Roofs of all additions and alterations to existing buildings may be roofed in the same roofing material as the original building unless other materials are required by the Chief Building Official.

8.18.030 Adoption of Other Appendices of the Residential Code without Amendments
There is updated code sections adopted by reference and without amendment, the following appendices to the Residential Code:

A. Appendix BF: Patio Covers
Chapter 8.20
International Property Maintenance Code, 2024 Edition

8.20.010 International Property Maintenance Code Adopted with Amendments A. Except for the local amendments set forth herein, there is adopted by reference the International Property Maintenance Code, 2024 Edition, which is published by the International Code Council. A copy of the Code together with the local amendments is on file with the Building Department.
33 Page | 33 10/1/2025
B. The International Property Maintenance Code, 2024 Edition (hereinafter "Property Maintenance Code") shall be the Property Maintenance Code for the City and said Code together with the additions, deletions and amendments set forth in this chapter shall regulate and govern the requirements for the maintenance of existing buildings and the issuance of permits and collection of permit fees.

8.20.020 Modifications, Amendments and Deletions to the Property Maintenance Code
A. The following modifications, amendments and deletions are made to the Property Maintenance Code:

1. Amend the tile of Section 602 to read as follows:

SECTION 602 HEATING AND AIR CONDITIONING FACILITIES

2. Amend Section 602.1 Facilities required, to read as follows:
602.1 Facilities required. Heating and air conditioning facilities shall be provided in structures as required by this section.

3. Amend Section 602.2 by adding the following sentence at the end of the section:
602.2 Residential occupancies. Dwellings shall be provided with air conditioning facilities at all times, shall be capable of cooling and maintaining a maximum temperature of 80 degrees Fahrenheit in all habitable rooms.

4. Add subsection 602.3.1 to read as follows:
602.3.1 Air conditioning supply. Every owner and operator of any building who rents, leases or lets one or more dwelling units or sleeping units shall supply air conditioning at all times, and shall be capable of cooling and maintain a maximum temperature of 80 degrees Fahrenheit in all habitable rooms.

Chapter 8.50
Sewer Connections

8.50.030 Sewer Connection Code Adopted with Amendments
§ 8.50.030 New construction.

All buildings and structures with plumbing facilities constructed on or after the effective date of this chapter shall be connected to an available public sewer system prior to issuance of a temporary or final certificate of occupancy, or any other permit, license, or certificate that authorizes or purports to authorize the occupation of any such building or structure.

A. Verification in the form of payment receipts, or approved permits, from the respectful utility, shall be provided to the Building and Safety Division prior to the issuance of a building permit.
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Cathedral City City CouncilOctober 14, 2026

Cathedral City City Council
October 14, 2026