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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. 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; 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.
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.
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 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. 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 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. 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 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. 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.
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 the local license renewal application date and no later than March 31, 2027December 31, 2026.
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, 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. 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; 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. 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 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.
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.
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 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.
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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. 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. 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. 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. 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.
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.
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 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.
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:
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. 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.
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.
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, 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 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.