Cotati City Council
April 12, 2022

EXHIBIT 1
Ordinance of the City Council of the City of Cotati Amending Title 9, Chapter 9.31 by amending Section 9.31.060 (Places where Smoking is Optional); Amending Title 17, Chapter 17.22 by amending Table 2-2 (Allowable Land Uses) and Chapter

17.42 by amending Section 17.42.200 (Commercial Cannabis Uses and Requirements); Amending Chapter 17.90 (Definitions) and Adoption of Exemption Findings Pursuant to the California Environmental Quality Act WHEREAS, pursuant to its police powers and as authorized by the California Compassionate Use Act, the California Medical Cannabis Regulation and Safety Act (“MCRSA”), the Adult Use of Marijuana Act (“AUMA”), SB 94 and the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”), the City may enact laws or regulations pertaining to cannabis cultivation, dispensing, manufacturing, distribution, transportation and testing within its jurisdiction; and
WHEREAS, the City Council has previously adopted a commercial cannabis ordinance regulating the permitting of commercial cannabis businesses within the City of Cotati; and WHEREAS, the City wishes to streamline permitting of level 2 manufacturing and microbusinesses, allow for cannabis consumption cafes/lounges associated with cannabis retail businesses, including amendments to the smoking ordinance and associated edits to clarify the commercial cannabis ordinance; and
WHEREAS, the proposed municipal code amendments contained herein are consistent with the goals and policies of all elements of the General Plan, as well as any applicable specific plan in that the amendments will continue commercial cannabis uses in appropriate commercial and industrial districts designated to support such uses and will not be detrimental to the public interest, health, safety, convenience or welfare of the City; and WHEREAS, Chapter 17-22 of the Municipal Code is a permissive ordinance and, except as otherwise expressly provided, the amendments adopted herein do not confer any additional rights or permits related to medical or adult use cannabis activities; and WHEREAS, the Planning Commission held a duly noticed public hearing on March 21, 2022 to review an ordinance to amend municipal code Title 17 by amending Chapters 17.22 and 17.90, and section 17.42.200 and Title 9, section 9.31.060; and WHEREAS, the Planning Commission reviewed all evidence submitted in connection with the amendments, including public testimony and all other documents and evidence which are part of the record of proceedings; and
WHEREAS, the City Council held a duly noticed public hearing on April 12, 2022 to introduce an ordinance to amend municipal code Title 17 by amending Chapters 17.22 and 17.90, and section 17.42.200 and Title 9, section 9.31.060; and WHEREAS, the City Council adopted an ordinance to amend municipal code Title 17 by amending Chapters 17.22 and 17.90, and section 17.42.200 and Title 9, section 9.31.060 on April ________, 2022; and

WHEREAS, the City Council reviewed all evidence submitted in connection with the amendments, including public testimony and all other documents and evidence which are part of the record of proceedings.

NOW THEREFORE BE IT RESOLVED THAT the City Council of the City of Cotati does hereby find and resolve as follows:

Section 1. Recitals
The foregoing recitals are true and correct and are incorporated into the findings herein.

Section 2. Record
The Record of Proceedings (“Record”) upon which the City Council makes its decision includes, but is not limited to: 1) the 2015 General Plan, 2) the FEIR certified for the 2015 General Plan, and 3) all staff reports, City files and records and other documents prepared for and/or submitted to the City Council related to adoption of municipal code amendments removing the requirement for use permits for level 2 commercial cannabis manufacturing, allowing cannabis consumption café/lounges, allowing for smoking at cannabis consumption café/lounges, and associated clarifications to the commercial cannabis ordinance.

Section 3. General Plan Consistency
The proposed ordinance to amend the municipal code to allow for commercial cannabis consumption café/lounges as included in this Resolution is in the best interest of the City because it furthers established goals, policies, and implementation programs of the General Plan to promote economic development.

Section 4. Environmental Determination
The City Council finds and determines that the adoption and implementation of this ordinance is exempt from further analysis under the California Environmental Quality Act in that the ordinance fulfills certain policies and objectives identified in the 2015 General Plan and Housing Element and is consistent with the program level Final Environmental Impact Report (SCH# 2013082037) for the Cotati General Plan Update (certified on March 24, 2015 (Resolution No. 2015-11)). The City Council recommends that no further environmental review is required in accordance with Section 15168 of the CEQA Guidelines.

Section 5. Amendment to the Cotati Municipal Code. Section 9.31.060 Places where smoking is optional is amended, as follows:

Notwithstanding Section 9.31.050, smoking is optional in the following enclosed and unenclosed areas within the city except in areas where smoking is prohibited by state or federal law, in which case the state or federal law shall apply:

A. Private residential property developed and occupied with detached housing units, unless said residential property is used as a child care or health care facility subject to separate registration or licensing requirements.

B. Public streets, alleys and abutting sidewalks, unless otherwise prohibited, and only when the streets, alleys or abutting sidewalks are being used in their traditional capacity as pedestrian or vehicular thoroughfares to travel from one destination to another.

C. Private automobiles.

D. In up to twenty-five percent of guest rooms in any hotel or motel, if the hotel or motel permanently designates at least seventy-five percent or more of its guest rooms as nonsmoking rooms. Smokingallowed rooms shall be segregated from nonsmoking rooms and located on separate floors, wings, or portions of the building. Smoking and nonsmoking rooms shall not be interspersed. Nothing in this chapter shall require a hotel or motel to allow smoking, and smoking may be prohibited on the entire property.

E. By performers during theatrical productions, if smoking is an integral part of the story in the theatrical production.

F. Designated smoking areas that meet the requirements set forth in Section 9.31.070.

G. Cannabis Consumption Café/Lounges, as permitted by the City in accordance with Chapter

17.42.200, provided the activity is compliant with local requirements and state law. This use shall meet the following additional requirements:

1. Enclosed smoking areas must be separately ventilated, with sufficient negative pressure, air exchange, odor control/filtration, self-closing sealed doors, and other operational and physical measures to ensure that the general public or other persons outside of the enclosed smoking area are not exposed to secondhand smoke or associated odors. Employee exposure, if any, shall be consistent with State law.

2. Outdoor smoking areas, if any, must be approved by the City on a case-by-case basis by meeting the requirements of the City through an associated cannabis permit. Additionally, these areas must be sufficiently ventilated to prevent any secondhand smoke or odors from being detectable beyond the boundaries of the permitted area.

H. Notwithstanding any other portion of this chapter, electronic smoking devices may be used within retail tobacco stores for product sampling. Retail tobacco stores shall post signs prohibiting people less than twenty-one years of age from entering the establishment.

Section 6. Amendment to the Cotati Municipal Code. Chapter 17.90 Definitions is amended, as follows:
“Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, or any other strain or varietal of the genus Cannabis that may exist or be discovered, or developed, that has psychoactive or medical properties, whether growing or not, including but not limited to the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the

plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” also means marijuana as defined by California Health and Safety Code Section 11018 and Business and Professions Code Section 26000(f), as both may be amended from time to time. Any reference to cannabis or cannabis products shall include medical and nonmedical cannabis and medical and nonmedical cannabis products unless otherwise specified. Cannabis or cannabis product does not mean industrial hemp as defined by Health and Safety Code Section 11018.5, or the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink, or other product. 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.
“Cannabis accessories” has the same meaning as in Section 11018.2 of the Health and Safety Code.
“Cannabis cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis, including nurseries.
“Cannabis cultivation area” (or “canopy”) means the total aggregate area(s) of cannabis cultivation on a single premises as measured around the outermost perimeter of each separate and discrete area of cannabis cultivation at the dripline of the canopy expected at maturity and includes, but is not limited to, the space between plants within the cultivation area, the exterior dimensions of garden beds, garden plots, hoop houses, green houses, and each room or area where cannabis plants are grown, as determined by the review authority.
“Cannabis cultivation – indoor” means the cultivation of cannabis within a permanent, lockable structure, using exclusively artificial lighting.
“Cannabis cultivation – mixed-light” means the cultivation of cannabis using any combination of natural and supplemental artificial lighting. Greenhouses, hoop houses, hot houses and similar structures, or light deprivation systems are included in this category. “Cannabis cultivation – outdoor” means the cultivation of cannabis using no artificial lighting conducted in the ground or in containers outdoors with no covering. “Cannabis cultivation site” means the location, premises, leased area(s), property, location or facility where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where all or any combination of those activities is currently occurring or proposed to occur in the future. “Cannabis license” means a state license issued pursuant to MAUCRSA. “Cannabis licensee” means a person issued a state license under MAUCRSA to engage in commercial cannabis uses or activity.
“Cannabis products” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

“Cannabis Consumption Café/Lounge”. Cannabis Consumption Café/Lounge shall mean a secure location with on-site use of Cannabis or Cannabis Products associated with a valid Cannabis Retail or Microbusiness Permit with associated Retail activity, issued by the City.

Section 7. Amendment to the Cotati Municipal Code. Chapter 17.22 Allowable Land Uses, Table 2-2 is amended, as follows:

Table 2-2: Allowed Land Uses and Permit Requirements – Cannabis Uses

RESIDENTIAL

LAND USE

MAXIMUM

CULTIVATION

AREA PER
PARCEL
(square feet
of canopy or
# of plants)

MINIMUM
PARCEL
SIZE
STATE
LICENS
E TYPE
Open Space
Conservation
Open
Space
Recreation
Rural
Residential
Residential
Very Low
Neighborhood
Low
Neighborhood
Medium
Neighborhood
Urban
Med/AU OSC OSR RR RVL NL NM NU
PERSONAL CANNABIS CULTIVATION; No
Permit Required
Personal
or
Caregiver
Cultivation
(inside
dwelling
unit or
accessory
structure
only)
6 plants/parcel None Exempt – – P P P P P

COMMERCIAL CANNABIS USES,
Commercial Cannabis Permit Required(1)
1 Commercial cannabis uses are not allowed in any residential zones.

COMMERCIAL

LAND USE

MAXIMUM

CULTIVATION

AREA PER PARCEL
(square feet of
canopy or # of
plants)

MINIMUM
PARCEL
SIZE
STATE
LICENS
E TYPE
East
Cotati
Avenue
Corridor
Gravenstein
Highway
Corridor
Downtown
Commercial
Commercial/
Industrial
General
Industrial
Public
Facility
Specific Use
Regulations
Med/AU CE CG CD CI IG PF
PERSONAL CANNABIS CULTIVATION; No Permit
Required
Personal or
Caregiver
Cultivation
(inside dwelling
unit or
accessory
structure only)
6 plants/parcel None Exempt P(12) P(2) P(2) – – –

COMMERCIAL CANNABIS USES,
Commercial Cannabis Permit Required(3)
Outdoor Cultivation
Specialty;
Small 5,000 sf or 50 plants None 1/1 – – – – – –
Outdoor; Small 5001 – 10,000 sf None 2/2 – – – – – –
Outdoor;
Medium 10,001 – 43,560 sf None 3/3 – – – – – –
Outdoor; Large 43,561 sf or larger None 5/5 – – – – – – Nursery
(indoor only) 20,000 sf None 4/4 – -P – -P -P -P
2 Allowed only in residential use portions of mixed mixed-use development. 3 Commercial cannabis uses are not allowed within the Downtown Specific Plan or Santero Way Specific Plan areas.

COMMERCIAL

LAND USE

MAXIMUM

CULTIVATION

AREA PER PARCEL
(square feet of
canopy or # of
plants)

MINIMUM
PARCEL
SIZE
STATE
LICENS
E TYPE
East
Cotati
Avenue
Corridor
Gravenstein
Highway
Corridor
Downtown
Commercial
Commercial/
Industrial
General
Industrial
Public
Facility
Specific Use
Regulations
Med/AU CE CG CD CI IG PF
Indoor Cultivation4
Specialty;
Small 501 – 5,000 sf 1A/1A – – – – – –
Small 5,001 – 10,000 sf 2A/2A – – – SP SP SP 17.42.200
Medium 10,001 – 22,000 sf 3A/3A – – – SP SP SP 17.42.200 Large 22,001 or larger 5A/5A – – – – – –
Mixed Light
Cultivation
Specialty ;
Cottage 2,500 sf 1C/1C – – – – – –
Specialty;
Small 2,501 – 5,000 sf 1B/1B – – – – – –
Small 5,001 – 10,000 sf 2B/2B – – – – – –
Medium 10,001 – 22,000 sf 3B/3B – – – – – –
Large 22,001 or larger 5B/5B – – – – – –
MANUFACTURING5
Manufacturer
1: NonVolatile/No
Solvents
N/A 6/6 – – – SP SP SP 17.42.200
4 Nursery use is allowed as part of any City issued Indoor Cultivation Cannabis Permit. ”Specialty Cottage” cultivation is not permitted. 5 Each manufacturing use type can perform related subtypes for infusion of products and/or packaging and labeling. Shared use facilities are not permitted. “Processor” activities are considered part of cultivation, manufacturing, or distribution permit approvals, and subject to the applicable cannabis business tax, as determined by the City.

COMMERCIAL

LAND USE

MAXIMUM

CULTIVATION

AREA PER PARCEL
(square feet of
canopy or # of
plants)

MINIMUM
PARCEL
SIZE
STATE
LICENS
E TYPE
East
Cotati
Avenue
Corridor
Gravenstein
Highway
Corridor
Downtown
Commercial
Commercial/
Industrial
General
Industrial
Public
Facility
Specific Use
Regulations
Med/AU CE CG CD CI IG PF
Manufacturer
2: Volatile
Solvents
N/A 7/7 – – – SUP SUP SUP 17.42.200

TESTING
Testing
Laboratories 8/8 – P – P P P
RETAIL (w/delivery)
Non-Storefront
Retailer
(delivery only)
9/9 – – – SP SP SP 17.42.200
Storefront
Retailer 10/10 – SP – – – – 17.42.200

DISTRIBUTOR
Distributor6 11/11 – SP – SP SP SP 17.42.200
MICROBUSINESS (with delivery and/or Cannabis
Consumption Café/Lounge)
Microbusiness 12/12 - SUP - - - - 17.42.200
NOTES:
“–” Use Not Allowed “P” Permitted Use
“CCP” Commercial cannabis permit required. “UP” Use permit required. “sf” means square feet. “AU” means adult or recreational use. 6 Includes Transport-Only Distributor

Section 8. Amendment to the Cotati Municipal Code. Section 17.42.200 Commercial cannabis uses and requirements is amended, as follows:

A. Standards for All Commercial Cannabis Uses.

1. Purpose. This section provides the development, operating, and permit standards for all commercial cannabis activities, including both adult (recreational) and medical cannabis uses, to ensure neighborhood compatibility, minimize potential environmental impacts, mitigate potential nuisances, and provide safe, legal access to cannabis. Additional standards may apply to particular commercial cannabis uses, as established in other sections of this chapter.

2. Applicability. Commercial cannabis uses shall be permitted only in compliance with the requirements of this chapter, state law and all other applicable requirements for the specific type of use and those of the underlying base zone. In addition to the requirements of this chapter, commercial cannabis uses shall comply with all other applicable provisions of the city of Cotati’s general plan and the municipal code. Except for hospitals and research facilities that obtain written permission for cannabis cultivation under federal law, it is unlawful to cultivate, distribute, manufacture, test or transport cannabis, in amounts that exceed personal use allowances under California law, within the city without a valid permit issued pursuant to the provisions of this chapter. Possession of other types of state or city permits or licenses does not exempt an applicant from the requirement of obtaining a permit under this chapter.

Unless specific distinctions are made in subsequent sections, requirements shall apply equally to either adult use or medical cannabis activities.

3. Limitations on Use. Commercial cannabis uses shall only be allowed in compliance with this chapter and all applicable codes set forth in the Cotati Municipal Code, including but not limited to:to building, plumbing, electrical, fire, hazardous materials, and public health and safety. The operator shall comply with all laws and regulations applicable to the type of use and shall comply with all permit, license, approval, inspection, reporting, and operational requirements of other local, state or other agencies having jurisdiction over the type of operation. The operator shall provide copies of other agency and department permits, licenses, or certificates to the review authority to serve as verification of such compliance.

4. Application Requirements. In addition to any other disclosures, data, forms, recitals, assurances, agreements, or other information required by federal, state, or local law, applicants for a cannabis permit shall provide the following information at the time of the application for a cannabis permit:
a. Property Owner Consent. Permits for commercial cannabis uses shall only be issued where written permission from the property owner and/or landlord is provided. The applicant shall provide evidence of such consent.
b. Air Quality. The applicant shall provide a calculation of the business’s anticipated emissions of air pollutants. The applicant shall also provide assurance that the business will comply with all best management practices established by the Bay Area Air Quality Management District (BAAQMD). No cannabis permit shall be issued to any business that would exceed the thresholds of significance established by the BAAQMD for evaluating air quality impacts under the California Environmental Quality Act for either operation or construction. Applicants are encouraged to design their project so as toto minimize or avoid air pollutant emissions.

c. Greenhouse Gas Emissions. The applicant shall provide calculations of the anticipated greenhouse gas emissions for the operation of the business. The applicant shall further demonstrate compliance with any applicable state, regional, or local plan for the reduction of greenhouse gas emissions. No cannabis permit shall be granted for any business that would violate any state, regional, or local plan for the reduction of greenhouse gases, nor shall any cannabis permit be issued where the construction and/or operation of the business would exceed any applicable threshold of significance for greenhouse gas emissions under the California Environmental Quality Act. d. Hazardous Materials. To the extent that the applicant intends to use any hazardous materials in its operations, the applicant shall provide a hazardous materials management plan that complies with all federal, state, and local requirements for management of such substances. “Hazardous materials” includes any hazardous substance regulated by any federal, state, or local laws or regulations intended to protect human health or the environment from exposure to such substances. e. Water Supply. If proposed use will occupy an existing building, applicant shall demonstrate to the satisfaction of the city engineer and building official that water usage will not exceed that of the building’s intended occupancy class without additional review and prior approval by the city. If proposed use will occupy a newly constructed building, the proposed use and construction design shall include all necessary devices and processes to ensure water usage will not exceed an operation typical of the zone in which it is proposed.
f. Wastewater. The applicant shall demonstrate to the satisfaction of the city engineer that sufficient wastewater capacity exists for the proposed use. To the extent the proposed use will result in agricultural or industrial discharges to the city’s wastewater system, the applicant shall provide a plan for meeting all federal, state, and local requirements for such discharges.

5. Compliance with County Health Officials. Cannabis manufacturers, dispensaries, and delivery operations shall be subject to permit requirements and regulations, including inspections, established by the Sonoma County department of health services under the direction of the county health officer, or any other individual designated by the director to act on his or her behalf. All such permit requirements and regulations shall be interpreted to implement the purpose and intent of this chapter, andchapter and shall not prohibit or unreasonably restrict any commercial cannabis use allowed under this chapter. The city manager may eliminate this requirement after the California Department of Public Health or other applicable state agency establishes regulations related to cannabis product safety.

6. Development Standards.
a. Building Requirements. All structures used in commercial cannabis operations must comply with applicable provisions of building and fire codes as determined by the city’s building official and the fire agency official, respectively. In addition, all buildings and the site must comply with all applicable sections of the Cotati Municipal Code, as determined by the community development director, prior to issuance of a cannabis permit.

Commercial cannabis uses that provide access to the public, including but not limited to employees, vendors, contractors, business partners, members, customers or patients, shall meet Cotati Municipal Codelocal, state and federal requirements for accessibility, including accessible parking, accessible paths of travel, accessible seating, restrooms,

and washing facilities. All facilities must be inspected by the city and fire agency prior to issuance of a cannabis permit.
b. Emissions Control. All commercial cannabis uses shall utilize appropriate measures in operation and, where applicable, construction, to prevent the emission of dust, smoke, noxious gases, or other substances that have the potential to impact local or regional air quality.
c. Hours of Operation. Hours of operation for commercial cannabis uses are established in sections below pertaining to each particular use category. d. Odor Control and Ventilation. Commercial cannabis uses shall comply with all current and future state laws and regulations related to odor control and ventilation, in addition to any specific requirements for the particular use established in this chapter. No commercial cannabis use may operate in a manner whereby cannabis odors are detectable from adjacent or nearby properties. All commercial cannabis uses must install a ventilation system that adequately controls for odor, humidity, and mold. e. Property Setbacks. Property setbacks for commercial cannabis uses are established in sections below pertaining to each particular use category.

7. Permit Requirements. In addition to state permitting requirements and the requirements of this chapter, certain commercial cannabis uses shall be subject to the use permitcannabis permit requirements as shown in Table 2-2 of Chapter 17.22. In addition, all commercial cannabis uses must obtain a zoning clearance and pay applicable fees and taxes.

Any violations of the Cotati Municipal Code, or any other local, statestate, or federal law, must be cured prior to issuance of a cannabis permit. The city manager, or his/her designee, may design application forms specific to each permitted category and require inspections of proposed facilities before issuing a permit under this chapter. Commercial cannabis uses shall also be subject to permit requirements and regulations established by the Cotati Municipal Code and any additional requirements established by other sections of this chapter, resolution or ordinance of the city council or vote of the citizens of Cotati. Applicants must provide notice to properties and property owners within three hundred feet of the boundaries of the property upon which the commercial cannabis business is proposed at least fifteen days prior to consideration of the permit application. A city business license is required for certain cannabis operations, pursuant to Chapter 5.04 of the Cotati Municipal Code. a. Issuance and Term of Permit. Permits for commercial cannabis uses shall be issued to the operator by the city council for a period not to exceed two years from the date of permit approval and shall be subject to biannual permit renewals, in accordance with paragraph 8 of this subsection. Approval of permit renewals may be issued by the city manager following demonstration by the operator/permittee of compliance with all requirements in effect and provided operation is in good standing with all state and local agencies. Operator must apply for permit renewal no less than sixty days prior to the expiration of their current permit. No property interest, vested right, or entitlement to receive a future permit to operate a commercial cannabis use shall ever inure to the benefit of such permit holder as such permits are revocable. Permits issued pursuant to this chapter are not transferable without prior city approval. Permits may be issued with conditions. The city has no duty or obligation to issue commercial cannabis permits. The city may elect at any time to cease issuing commercial cannabis permits, including upon receiving credible information that the federal government will commence enforcement measures against such businesses and/or local governments that permit them.

b. Operator/Permit Holder Qualifications. Commercial cannabis operators/permit holders must meet the following qualifications:
i. Commercial cannabis operators must be twenty-one years of age or older. ii. Commercial cannabis operators shall be subject to background search by the California Department of Justice and local law enforcement. Permits for commercial cannabis uses shall not be permitted for operators with any felony convictions, as specified in Sections 667.5(c) and 1192.79(c) of the Penal Code.

Permits for commercial cannabis uses shall not be permitted for operators with criminal convictions that substantially relate to the qualifications, functions, or duties of the business or profession, including a felony conviction involving fraud, deceit, or embezzlement or a criminal conviction for the sale or provision of illegal controlled substances to a minor.
iii. Applicants providing false or misleading information in the permitting process will result in rejection of the application and/or nullification or revocation of any issued permit.
c. Priority. This section applies generally to all commercial cannabis permits; however, additional requirements are set forth in later sections pertaining to particular commercial cannabis use categories. When processing permit applications for commercial cannabis uses, priority shall be given to applications that score highest on any city council-adopted applicant ranking system.
d. Issues of Significant Public Interest. In considering an application under this section for a cannabis permit, the city council’s review shall be limited to compliance with this chapter. The council may, however, determine that no applications meet the requirements for a particular license and that license may remain unissued due to a significant public interest. “Significant public interest” includes, but is not limited to, potential health or safety impacts, potential conflicts with neighboring uses, unique characteristics of the proposed site, unique characteristics of the proposed operations, and/or other factors that, in the city council’s discretion, warrant rejection of application(s). e. Revocation and Suspension. Any permit issued under this chapter for commercial cannabis uses may be immediately suspended for any of the reasons listed in subsections (
A. Standards for All Commercial Cannabis Uses.A, paragraph )(7)(e)(i) through (vii) of this section. Any permit issued under this chapter may be revoked by the city, following notice and opportunity for a hearing, upon any of the following:
i. An operator ceases to meet any of the minimum qualifications listed in subsection A. Standards for All Commercial Cannabis Uses., paragraph 7 (A)(7)(b) of this section, fails to comply with the requirements of this section or any conditions of approval of the permit.
ii. An operator’s state license for commercial cannabis operations is revoked, terminated, suspended or not renewed. In the case of a suspension, the city shall

not reinstate the permit until documentation is received showing that the state license is eligible to be reinstated or reissued. It shall be up to the city’s discretion whether the city reinstates any permit.
iii. The commercial cannabis operation has not been in regular and continuous operation for three six consecutive months.
iv. State law permitting the use for which the permit was issued is amended or repealed resulting in the prohibition of such use, or the city receives credible information that the federal government will commence enforcement measures against such businesses and/or local governments that permit them. v. Circumstances under which the permit was granted have changed and the public health, safety, and welfare require the suspension, revocation, or modification. vi. The permit was granted, in whole or in part, on the basis of a misrepresentation or omission of a material statement in the permit application. vii. The operator/permit holder/business is not current on city taxes or fees.

8. Exercise and Renewal of Permit. Commercial cannabis permits shall be exercised only by the applicant and are not transferable without prior city approval. Permits shall expire upon termination of the business for which it was issued, or upon sale or unauthorized transfer of ownership of the cannabis dispensaryoperation. Any cannabis permit that is abandoned for a period of six months shall automatically expire and shall become null and void with no further action required on the part of the city. For purposes of this section, abandonment shall mean the failure to initiate the activities described in the permit application or cessation of regular and continuous business operations. All commercial cannabis permits have a term of two years and must be renewed prior to expiration. Applicants Operator must apply for permit renewal no less than sixty days prior to the expiration of their current permit. Approval of permit renewals may be issued by the city manager following demonstration by the operator/permittee of compliance with all requirements in effect. and provided operation is in good standing with all state and local agencies. must submit for a renewal no less than thirty days and no more than ninety days prior to expiration of an existing permit. Review shall also include, but not be limited to, analyses of the following:
a. The use has been conducted in accordance with this section and any and all applicable permit conditions, state and local laws and regulations and is in good standing with all state and local agencies.
b. Any and all violations or complaints have been promptly addressed and cured to the satisfaction of the police chief and city manager.
c. The business for which the permit was approved has not been transferred without authorization to another owner or operator.
d. There are no outstanding violations of health, safety, or municipal code. e. The business for which the permit was approved is current on all city taxes and fees due.

9. Health and Safety. Commercial cannabis uses shall not create a public nuisance or adversely affect the health or safety of the nearby residents or businesses by creating dust, light, glare, heat, noise, noxious gases, odor, smoke, traffic, vibration, unsafe conditions or other impacts, or be hazardous due to the use or storage of materials, processes, products, runoff or wastes.

10. Taxes. Commercial cannabis uses shall timely remit payment of all applicable taxes that may be enacted by the voters, including Chapter 5.30, or any additional regulations that may be promulgated in addition to all current applicable state and local taxes.

11. Security. The following security measures shall be adhered to by all operators. Additional security measures may apply to particular commercial cannabis uses, as established in this section.
a. A safety and security plan shall be required at the time of permit application and shall be subject to review and approval by the Cotati police department and the city manager.

All safety and security plans shall be held in a confidential file exempt from disclosure as a public record pursuant to Government Code Section 6255(a). Such plans shall include, at a minimum, information regarding implementation of the requirements of this section.

The police chief may require additional information be included in the plan. b. Security cameras shall be required and shall be installed with capability to record activity on the property, including entry points to the property and within all buildings and structures on the property, including all entrances, exits, perimeter windows and all areas where customers and employees may have access, with the exception ofapart from any restroom area. Security cameras shall record twenty-four hours a day, seven days a week. Additionally:
i. Areas where cannabis is grown, tested, cured, manufactured, or stored shall have camera placement in the room facing the primary entry door at a height which will provide a clear unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment.
ii. Cameras shall also be placed at each location where weighing, packaging, transport preparation, processing, or labeling activities occur. iii. At least one camera must be dedicated to record the access points to the secured surveillance recording area.
iv. At each entrance and exit to the facility, camera coverage must enable recording of customer facial features with sufficient clarity to determine identity. c. Surveillance video shall be kept for a minimum of ninety days in a format that can be easily accessed for viewing. Video must use standard industry format to support criminal investigations. Permit holders shall be required to cooperate with all law enforcement investigations and provide video footage related to any such investigation upon request.

Motion-sensor lighting and alarms shall be required and shall be professionally installed and monitored to ensure the safety of persons and to protect the premises from theft.

Alarm and surveillance systems shall be equipped with a failure notification system that provides prompt notification to the operator of any prolonged surveillance interruption and/or failure of the system. All surveillance equipment, records, and recordings must be

stored in a secured area that is only accessible to management staff. Operators must keep a current list of all authorized employees who have access to the surveillance system and/or alarm system.
d. A permittee shall maintain up-to-date and current records and existing contracts on the premises that describe the location and operation of each security alarm system, a schematic of security zones, the name of the alarm installation company, and the name of any monitoring company. Off-site monitoring and video recording storage of the premises by the licensee or an independent third party is authorized as long asif standards exercised at the remote location meet or exceed all standards for on-site monitoring.
e. All security measures installed on site shall have the capability to remain fully operational during a power outage.
f. Weapons and firearms are prohibited on the property, except law enforcement. g. Security measures shall be designed to ensure emergency access in compliance with fire safety standards.
h. All structures used for commercial cannabis activities shall have locking doors, with commercial-grade nonresidential locks, to prevent free access. i. Security measures shall prevent individuals from remaining on the premises of the commercial cannabis business if they are not engaging in activities expressly related to the operations of the business.
j. Security measures shall include a transportation plan that details the procedures established for the safe and secure transport of cannabis, cannabis products, and currency to and from the business, including the transfer of currency for city tax payments.
k. Except for live growing cannabis plants and products on display for sale at retail dispensaries during hours when the business is open to the public, all cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault that meets approval of the Cotati police department. To the fullest extent possible, all cannabis and cannabis products shall be kept in a manner that prevents theft and loss, except for limited amounts used for the purposes of display or immediate sales. l. Duress alarm buttons shall be installed in all commercial cannabis facilities with easy access by employees and all employees shall be properly trained in their use. m. Any security bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building. n. Security personnel hired by the commercial cannabis business shall be subject to prior review and approval of the chief of police or his or her designee. This requirement may include Department of Justice clearance of individuals.

o. Each commercial cannabis business shall identify a liaison and their contact information to the Cotati police department who shall be reasonably available to meet with the chief of police or his or her designees regarding security measures and operational issues.

12. Employees.
a. All employees of commercial cannabis businesses must be twenty-one years of age or older.
b. All owners and employees of commercial cannabis businesses shall be subject to background search by the California Department of Justice and local law enforcement.

Permits for commercial cannabis uses shall not be permitted for operators with any felony convictions, as specified in Sections 667.5(c) and 1192.7(c) of the Penal Code. Permits for commercial cannabis uses shall not be permitted for operators with criminal convictions that substantially relate to the qualifications, functions, or duties of the business or profession, including a felony conviction involving fraud, deceit, or embezzlement, or a criminal conviction for the sale or provision of illegal controlled substances to a minor.
c. Each owner or operator of a commercial cannabis business shall maintain on site a current register of all the employees currently employed by the commercial cannabis business, and shall produce such register to the chief of police, designee, or any other city official authorized to enforce the Cotati Municipal Code for purposes of determining compliance with this chapter.
d. The police chief is authorized to implement an employee permit system, whereby any employee or volunteer of a commercial cannabis business must obtain a work permit from the city of Cotati. At a minimum, such program shall require the issuance of a permit that must be visibly displayed at all times by the employee or volunteer when he or she is working and contains a recent photograph of the individual and the name of the commercial cannabis business where he or she works or volunteers. The police chief may establish a fee for the cost of issuing such permit.

13. Weights and Measures. All scales used for commercial transactions shall be registered for commercial use and sealed by the Department of Agriculture/Weights and Measures.

14. Tracking. Commercial cannabis operators shall comply with any track and trace program established by the city, county or state agencies. Commercial cannabis operators must maintain records tracking all cannabis production and products and shall make all records related to commercial cannabis activity available to the city or county upon request. The city manager may require commercial cannabis operators to comply with a county track and trace system if appropriate.

15. Police Notification. Commercial cannabis operators shall notify the Cotati police department within twenty-four hours of discovering any of the following:
a. Significant discrepancies identified during inventory. The level of significance shall be two percent of inventory or per state regulations, whichever is stricter.

b. Diversion, theft, or loss, or any criminal activity involving the commercial cannabis business or any agent or employee of the commercial cannabis business.
c. Any other breach of security.

16. Inspections. Commercial cannabis uses and operations shall be subject to inspections by appropriate local and state agencies, including but not limited to the Departments of Health Services, Agriculture/Weights and Measures, and the city of Cotati. Cannabis operations shall be inspected at random times for conformance with the Cotati Municipal Code and permit requirements. Unless otherwise allowed under the law, the inspection shall be conducted during regular business hours, with at least twenty-four hours’ notice. If interference in the performance of the duty of the agency having jurisdiction occurs, the agency may request that the city temporarily suspend the permit and order the cannabis operation to immediately cease operations.

17. Monitoring. Administrative monitoring shall be required for each commercial cannabis use and operation to be granted a permit. An annual monitoring fee may be adopted by resolution of the city council and collected by the city.

18. Restriction on Alcohol Sales. No alcoholic beverages may be sold, dispensed, or consumed on or about the premises of any commercial cannabis use business. This section shall not apply to responsible after-hours consumption by employees which does not violate any state or local law or regulation. After-hours consumption, however, is not permitted at any cannabis retail dispensary or microbusiness.

19. Liability and Indemnification. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this chapter shall not become a personal liability of any public officer or employee of the city. To the maximum extent permitted by law, the permittees under this chapter shall defend (with counsel acceptable to the city), indemnify and hold harmless the city of Cotati, the Cotati city council, and its respective officials, officers, employees, representatives, agents and volunteers (hereafter collectively called “city”) from any liability, damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings, or judgments (including legal costs, attorneys’ fees, expert witness or consultant fees, city attorney or staff time, expenses or costs) (collectively called “action”) against the city to attack, set aside, void or annul any cannabis related approvals and actions, and strictly comply with the conditions under which such permit is granted, if any. The city may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the city for its reasonable legal costs and attorneys’ fees. Permittees shall be required to agree to the above obligations in writing.

B. Standards for Commercial Cannabis Cultivation.

1. Purpose. This subsection establishes development, operating, and permit standards for commercial cannabis cultivation activities as allowed by the base zoning district and provisions of subsection
A. Standards for All Commercial Cannabis Uses.A of this section, Standards for All Commercial Cannabis Uses.

2. Applicability. This subsection shall apply to all commercial cannabis cultivation uses and activities, including but not limited to indoor cultivation environments and associated drying,

curing, grading, and trimming facilities. Cannabis cultivation does not include operations that manufacture cannabis products such as oils, tinctures, or edibles, which are classified separately. Commercial cannabis cultivation operations shall comply with state laws and regulations, and the following standards in addition to the requirements of this section. Permits shall only be issued to commercial cannabis cultivation uses coming under state cannabis license classification Types 2A, 3A, and 4, under applicable Business and Professions Code sections.

3. Permit Requirements. In addition to the requirements of subsection A. Standards for All Commercial Cannabis Uses.A of this section, commercial cannabis cultivation shall be subject to the permit requirements as shown in Table 2-2, Allowable Land Uses and Permit Requirements, of Chapter 17.22, and under this section.

Initial permits for cultivation sites shall be issued by the city council; renewals may be approved by the city manager or his/her designee. Structures shall follow all city of Cotati zoning requirements of the underlying base zone.

4. Limitations on Use. All cultivation shall be conducted and maintained in compliance with applicable state laws and regulations, this chapter, and with any other standards and best management practices adopted by the city council through resolution or ordinance. All structures used in cultivation shall be subject to all applicable laws, including the California Building Code, California Fire Code, and all regulations of the Cotati Municipal Code.

5. Development Criteria.
a. Number of Permits. No more than five (5) commercial cultivation permits of any type shall be allowed at any time. Multiple permits may be issued for multi-tenant operations on a single parcel; provided, that the total cultivation area of all tenants does not exceed a maximum of one acre, and provided such permits are allowed under state law. Any commercial cultivator who obtains state licenses for both adult (recreational) and medical cultivation for the same cultivation premises shall only require one commercial cultivation permit from the city.
b. Square Footage Limitations. The total combined square footage of the cultivation canopy area shall not exceed the maximum size thresholds as defined in Table 2-2, Allowable Land Uses and Permit Requirements, of Chapter 17.22, and in the requirements for state cannabis license classification Types 2A, 3A, and 4. Structures and areas where cannabis is processed, dried, aged, stored, trimmed, packaged or weighed, and areas where equipment is stored and washed, shall be limited to the on-site cultivation use only.
c. Setbacks. All structures used for indoor commercial cultivation and all structures used for drying, curing, grading or trimming shall comply with the setbacks for the base zone districts. Cultivation shall be screened from public view and there. There shall be no exterior evidence of cultivation.
d. Building Requirements. All structures used in commercial cultivation, including greenhouses, require a building permit and shall comply with all applicable sections of the Cotati Municipal Code. Cultivation uses that provide access to the public, including but not limited to employees, vendors, contractors, or business partners, shall meet Cotati

Municipal Code requirements for accessibility, including accessible parking, accessible path of travel, restrooms, and washing facilities.
e. Fire Code Requirements. The operator shall prepare and implement a fire prevention plan for construction and ongoing operations and obtain all required permits from the fire agency. The fire prevention plan shall include, but not be limited to: emergency vehicle access and turn-around at the facility site(s), vegetation management and firebreak maintenance around all structures.
f. Lighting. All lighting shall be fully shielded, downward casting and not spill over onto structures, other properties or the night sky. All indoor operations shall be fully contained so that little to no light escapes. Light shall not escape at a level that is visible from neighboring properties between sunset and sunrise.
g. Runoff and Storm Water Control. Runoff containing sediment, or other waste or byproducts, shall not be allowed to drain to the storm drain system, waterways, or adjacent lands and must comply with all other applicable water quality standards of the city’s municipal code.
h. Security and Fencing. In addition to the security requirements in subsection A. Standards for All Commercial Cannabis Uses.(A)(11) of this section paragraph 11, the following security and fencing standards apply to commercial cannabis cultivation uses:
i. Security cameras shall be installed with the capability to record activity beneath the canopy but shall not be visible from surrounding parcels and shall not be pointed at or recording activity on surrounding parcels.
ii. Security measures shall be designed to ensure emergency access in compliance with fire safety standards. All structures used for cultivation or storage of cannabis shall have locking doors, using commercial-grade locks, to prevent free access.

6. Operating Standards. In addition to standards contained in Section 17.42.020, the following standards shall apply to all commercial cannabis cultivation uses:
a. Compliance Inspections. All cultivation sites shall be subject to on-site compliance inspections by the city. The inspection shall be conducted during regular business hours, with at least twenty-four hours’ notice unless public health or safety requires otherwise. b. Air Quality and Odor. All indoor cultivation operations and any drying, aging, trimming and packing facilities shall be equipped with odor control filtration and ventilation system(s) to control odors, humidity, and mold. Cultivation sites may not create odors amounting to a nuisance and must comply with Cotati Municipal Code nuisance regulations.
c. Energy Use. Use of renewable resources energy for indoor cultivation is strongly encouraged and the city’s commercial cannabis permit application procedures may award credit for use of renewable resourcesenergy. All permittees will be required to submit a

detailed energy conservation plan which includes a description of devices which will enable proposed facility and activities to operate at or below energy usage parameters of the building’s occupancy classification. Energy usage shall not exceed that of the building’s intended occupancy class without additional review and prior approval by the city.
d. Hazardous Materials. All cultivation operations that utilize hazardous materials shall comply with applicable hazardous waste generator, underground storage tank, aboveground storage tanks and AB 185 (hazardous materials handling) requirements and maintain any applicable permits for these programs from the Fire Prevention Division, Certified Unified Program Agency (CUPA) of Sonoma County Fire and Emergency Services Department or Agricultural Commissioner. e. Hours of Operation. Indoor cultivation activities may be conducted seven days a week, twenty-four hours per day as needed, unless otherwise conditioned in a use permitcannabis permit or otherwise prohibited by the base zone. Associated outdoor activities such as loading and unloading shall be limited to the hours of six a.m. to six p.m., unless a use permitcannabis permit is obtained that allows otherwise. f. Noise Limits. Cultivation operations shall not exceed the noise standards for industrial development set forth in Chapter 17.30, measured in accordance with professional standards and a properly calibrated measuring device.
g. Occupational Safety. Cultivators shall comply with all applicable federal, state, and local laws and regulations governing California agricultural employers, which may include: federal and state wage and hour laws, CAL/OSHA, OSHA and the California Agricultural Labor Relations Act.
h. Waste Management. A waste management plan addressing the storing, handling and disposing of all waste by-products of the cultivation and processing activities shall be submitted for review and approval by the city. This plan shall characterize the volumes and types of waste generated, and the operational measures that are proposed to manage and dispose of or reuse the wastes in compliance with any regulations adopted by the city council through resolution or ordinance.

All garbage and refuse on the site shall be accumulated or stored in nonabsorbent, watertight, vector-resistant, durable, easily cleanable, galvanized metal or heavy plastic containers with tight-fitting lids. No refuse container shall be filled beyond the capacity to completely close the lid. All garbage and refuse on this site shall not be accumulated or stored for more than seven calendar days, and shall be properly disposed of before the end of the seventh day in a manner prescribed by the solid waste hauler or local enforcement agency. All waste, including but not limited to refuse, garbage, green waste, and recyclables, must be disposed of in accordance with local and state codes, laws and regulations. All waste generated from cannabis operations must be properly stored and secured to prevent access by the public.
i. Waste Water Discharge. A waste water management plan shall be submitted identifying the amount of waste water, excess irrigation and domestic waste water anticipated, pretreatment method (when applicable), as well as disposal method. All cultivation operations shall comply with all state regulations, any regulations adopted by the city council through resolution or ordinance and the discharger shall submit to the city

verification of compliance with the waste discharge requirements of the applicable Regional Water Quality Control Board, or waiver thereof if needed. Excess irrigation water or effluent from cultivation activities shall be directed to a sanitary sewer, septic, irrigation, grey water or bioretention treatment system. All waste water discharged to the city sewer system shall comply with the city’s municipal code. If discharging to a septic system, a system capacity evaluation by a qualified sanitary engineer shall be included in the management plan. All domestic waste for employees shall be disposed of in a permanent sanitary sewer or on-site septic system demonstrated to have adequate capacity.
j. Water Supply. An on-site water supply source, adequate to meet all on-site uses on a sustainable basis, shall be provided. Trucked water shall not be allowed without prior authorization by the city. The on-site water supply shall be considered adequate with documentation of the following sources:
i. Recycled Water. The use of recycled process waste water from an on-site use or connection to a municipal recycled water supply for the cultivation use; provided, that an adequate on-site water supply is available for employees and other uses.

C. Standards for Storefront Commercial Cannabis Retail Salesand Microbusinesses.

1. Purpose. This subsection C provides the locational, operational, and permit standards for any cannabis dispensary within the city in order to promote the health, safety, and general welfare of its residents and businesses. The standards in this section shall be in addition to standards contained in subsection
A. Standards for All Commercial Cannabis Uses.A of this section for all commercial cannabis uses.

2. Applicability. Cannabis Storefront Rretailer facilities Dispensaries and Microbusinesses with retail activity (collectively “Retail Dispensary” or “Retail Dispensaries”) shall be permitted only in compliance with the requirements of this subsection C, and all other applicable requirements of subsection
A. Standards for All Commercial Cannabis Uses.A of this section, the underlying zoning district and all other applicable requirements of the city’s municipal code, including Chapter 5.30, Cannabis Business Tax, and state and county agencies. These regulations do not apply to license Type 9, Non-Storefront Retailers, which is addressed under subsection D. Standards for Manufacturing, Testing, Storage, Distribution and Non-Storefront Retail of Commercial Cannabis.D of this section. Permits under this section shall only be issued to commercial cannabis uses operating under state cannabis license Types 10 and 12, or subsequent retail license types established.

3. Permit Requirements and Application Procedure. A commercial cannabis permit for retail sales, issued in compliance with any applicable permit issued by the Sonoma County department of health services, shall be required to operate within the city of Cotati. Cannabis Rretail facilities Dispensaries shall also be subject to permit requirements and regulations established by the state and those established by the city council through resolution or ordinance, or by vote of the citizens of Cotati. Additionally, cannabis Rretailers Dispensaries must comply with all other applicable building codes and requirements, including accessibility requirements. Permits shall only be issued to cannabis retail dispensaries qualifying under state cannabis license Types 10 and 12. These regulations do not apply to

license Type 9, Non-Storefront Retailers, which is addressed under subsection D of this section. Type 9 licensed operations are not authorized under these regulations and are not allowed in the Commercial Gravenstein (CG) zone. Commercial cannabis permits for Rretail Ddispensaries shall be issued according to the following procedure:
a. The city council shall, following an open application period and review of applications by city staff and recommendations by the city manager or designee, consider commercial cannabis permit applications for Rretail facilities Dispensaries meeting all minimum qualifications at a properly noticed public hearing. The city council may approve up to two commercial retail cannabis permits to operate in the city at the same time, with necessary conditions. No more than one of these permits may be issued to a microbusiness with a Type 12 license.
b. If a commercial cannabis permit for a retail facility becomes available within twelve months of a previous application period, city staff may first review all minimally qualified applications from the prior application process, and consider them for submittal to the city council prior to opening a new application process. If a new application process is opened, prior applicants may inform city staff in writing that they wish to resubmit their application rather than file a new application. They shall certify that all information in the previous application is still true and accurate, or submit new information. bc. The city may adopt such forms, fees, and procedures as are necessary to implement this section with respect to the initial selection, future selection, investigation process, renewal, revocation, and suspension of cannabis retail permits. Such procedures may include a priority ranking system, and appointment of a staff review panel for cannabis retail permits.
cd. The application must include, at a minimum, the following:
i. Signed Affidavit. The property owner and applicant, if other than the property owner, shall sign the application for the cannabis Retail dDispensary permit, and shall include affidavits agreeing to abide by and conform to the conditions of the permit and all provisions of the Cotati Municipal Code pertaining to the establishment and operation of the cannabis retail use, including, but not limited to, the provisions of this section. The affidavit(s) shall acknowledge that the approval of the cannabis retail permit shall, in no way, permit any activity contrary to the Cotati Municipal Code, or any activity which is in violation of any applicable laws. ii. All necessary information related to the facility and its operators, including names, birth dates, addresses, social security numbers, relevant criminal history, relevant work history, names of businesses owned or operated by the applicant within the last ten years, investor and/or partner information, address and APN number of the parcel upon which the business will be located. Such private information will be exempt from disclosure to the public, pursuant to applicable law, to protect an individual’s privacy interests and public health and safety. iii. Operating plan as required under this subsection, paragraph (C) (7) of this section.
iv. Security plan as required under subsection

A. Standards for All Commercial Cannabis Uses., paragraph 11.(A)(11)(a) of this section.
v. Site plans pursuant to subsection C. Standards for Storefront Commercial Cannabis Retail Salesand Microbusinesses., paragraph 9(C)(11)(c) of this section.

4. Limit on Number of Dispensaries. No more than two (2) cannabis Rretail facilities Dispensaries shall be permitted within the city at any one time. All facilities authorized under this section must maintain a storefront which is open to the public. No more than one of these shall be a microbusiness with a Type 12 state license.

5. Specific to Microbusinesses. A Type 12 microbusiness license shall count as a Rretail Ddispensary under the limits on number of dispensaries ofin subsection (C)(4) of this section.

Any commercial cannabis permit issued to a microbusiness with a Type 12 state license, or a state cannabis license type subsequently established, that contains a retail operation, will be subject to use cannabis permit procedures and requirements for cannabis Rretail facilities Dispensaries under this section and Section 17.62.050. Any such permit will count toward the city’s maximum number of retail facilities. Any commercial cannabis permit issued to a microbusiness with a cultivation or manufacturing component will also be subject to the applicable requirements of subsection B. Standards for Commercial Cannabis Cultivation. or D. Standards for Manufacturing, Testing, Storage, Distribution and Non-Storefront Retail of Commercial Cannabis. B of this section for cultivation operations, as may be modified by the use permitcannabis permit process. All use permits issued for a cannabis microbusiness shall include the following provision: “This use permit shall expire upon change of tenancy or sale or transfer of the business.”

6. Limit on Size of Dispensaries. Cannabis Rretail Ddispensaries shall not exceed four thousand square feet (4,000 square feet) of public dispensing area, exclusive of area designated for administrative functions, secure or restricted access spaces, restrooms, or educational functions. for Type 10 license holders., The area is also exclusive ofor cultivation, cultivation support, packaging or manufacturing areas for Type 12 microbusiness license holders. Associated Cannabis Consumption Cafes/Lounges are not subject to this square footage limitation and will be considered on a case-by-case basis with the cannabis permit with the use permit.

7. Compliance with Operating Plan and Conditions Required. In addition to the general requirements of subsection
A. Standards for All Commercial Cannabis Uses.A of this section, a Rretail facility Dispensary shall submit, as a part of the cannabis permit application, an operating plan that specifies the manner in which operations will be handled and security provided, and which details the number of employees, hours and days of operation proposed. If permittee will hold a medical cannabis license type, the operating plan shall demonstrate methods and means of compliance with state requirements for medical dispensing, including doctor recommendations and photo identification. Any Rretail facility Dispensary approved under this section shall be operated in conformance with the approved operating plan and shall meet any specific, additional operating procedures and measures as may be imposed as conditions of approval to ensure that the operation of the facility is consistent with protection of the health, safety and welfare of the community, customers, qualified patients, and primary caregivers, and will not adversely affect surrounding uses.

8. Limited Term. Permits for cannabis retail facilities, as well as use permits for microbusinesses, shall be limited term and shall be issued for a maximum period of two years.

9. Revocation or Modification. A commercial cannabis permit for a retail facility approved under this section may be revoked, suspended, or modified at any time in accordance with subsection (A)(7)(e)I of this section.
810. Location Requirements. Unless otherwise allowed under state law and as modified by this section:
a. A rRetail facility Dispensary which is open to the public may only be located within the Commercial, Gravenstein (CG) allowed zoning district(s) under Table 2-2 (Chapter

17.22).
b. A cannabis Rretail facility Dispensary shall not be established on any parcel containing a dwelling unit, or within one hundred feet of a residential zoning district.

Residentially zoned does not include mixed-use zoning for purposes of this chapter. c. A cannabis Rretail facility Dispensary shall not be established within six hundred feet of another cannabis Rretail Ddispensary or other commercial cannabis business. This rule shall not apply to the separate activities permitted as Type 12 micro-businesses. d. A cannabis Rretail facility Dispensary shall not be established within six hundred feet from any public or private school or licensed child carechildcare facility. e. A cannabis Rretail facility Dispensary shall not be established within six hundred feet of any park, library, or youth center.
f. The distances listed above shall be measured between the nearest entrances of the Retail dDispensary or associated Cannabis Consumption Café/Lounge and the above listed use, along the shortest route intended and available for public passage. 911. Operating Standards. In addition to standards contained in subsection A. Standards for All Commercial Cannabis Uses.A of this section, the following are the minimum development criteria and operational standards applicable to any cannabis rRetail facility Dispensary use:
a. The building in which the Retail Ddispensary is located shall comply with all applicable local, state and federal rules, regulations, and laws including, but not limited to, building codes and accessibility requirements.
b. The facility Retail Dispensary shall provide adequate security on the premises pursuant to subsection
A. Standards for All Commercial Cannabis Uses., paragraph 11(A)(11) of this section, and any additional requirements in this section, including lighting and alarms, to ensure the safety of persons and to protect the premises from theft. The applicant shall submit a security plan for review and approval by the Cotati police department. The security plan will remain confidential.

c. The site plan, circulation, parking, lighting, facility exterior, and any signage shall be subject to all underlying zoning requirements, director review, and approval. The community development director may waive this requirement where the applicant can demonstrate that existing facilities, including parking, lightinglighting, and landscaping, already meet the requirements of this section.
d. No exterior signage or symbols shall be displayed which advertise the availability of cannabis using drug-related symbols which are attractive to minors or which are carried out in a manner intended to encourage persons under twenty-one years of age to consume cannabis or cannabis products, nor shall any such signage or symbols be displayed on the interior of the facility in such a way as to be visible from the exterior. e. No person shall be allowed onto the premises unless they are an employee, customer, vendor or contractor of the rRetail facilityDispensary, a primary caregiver, and/or a qualified patient or an employee of an agency having jurisdiction monitoring or investigating the terms of regulatory compliance. If the retailer denies entry for monitoring and inspection to any employee of an agency having jurisdiction, the facility may be closed. In strict accordance with California Health and Safety Code Section 11362.5 et seq., no person under the age of eighteen shall be allowed on a medical cannabis retail site unless allowed under state law, and no person under the age of twentyonetwenty one shall be allowed on a nonmedical cannabis retail site pursuant to California Business and Professions Code Section 26140. All persons entering the site, except as representing a regulatory agency, shall present a photo identification and shall establish proof of doctor’s recommendation if facility holds a medical retailer license. A doctor’s recommendation shall not be required for customers of a nonmedical cannabis retail facility. The operating plan submitted as a part of the cannabis permit application shall specify how this provision will be complied with and enforced.
f. No rRetail facility Dispensary shall also hold or maintain a license from the State Department of Alcoholic Beverage Control to sell alcoholic beverages, orbeverages or operate a business that sells alcoholic beverages. No alcoholic beverages shall be allowed or consumed on the premises.
g. Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off site. Commercial cannabis Rretail Dispensaries facilities shall provide a sufficient odor-absorbing ventilation and exhaust system so that odor generated inside the facility that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis facility. As such, commercial cannabis Rretail facilities Dispensaries must install and maintain the following equipment or any other equipment which the building official or designee determines has the same or better effectiveness:
i. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or
ii. An air system that creates negative air pressure between the commercial cannabis business’s interior and exterior so that the odors generated

inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business.
h. No cannabis Rretail facility Dispensary shall conduct or engage in the commercial sale of any product, good or service unless otherwise approved by the cannabis permit. A Rretail facility Dispensary may sell live starter (immature) plants, clones and seeds from qualified nurseries, but shall not cultivate or clone cannabis (unless the facility holds a microbusiness license from the state and such uses are allowed on the same premises under state and local laws). A Rretail facility Dispensary may sell manufactured cannabis, including edible products, and vaporizing devices if allowed by a permit issued by the Department of Health Services. Not more than five percent of the dispensary area, up to a maximum of two hundred square feet, may be devoted to the sale of incidental goods for personal cannabis cultivation and use or promotional items such as clothing, hats or posters. Cannabis Consumption Cafes/Lounges are not subject to this the five percent or two hundred square foot limitation.
i. No cannabis shall be consumed on the premises. For purposes of complying with this requirement, the term “premises” includes the physical building and leasehold space, as well as any accessory structures, parking areas, sidewalks, driveways or other immediate surroundings except for permitted Cannabis Consumption Cafes/Lounges associated with cannabis Retail Dispensary. sold associated with
j. No Rretail facility Dispensary or associated Cannabis Consumption Café/Lounge may increase in size without amending its cannabis or use cannabis permit, as applicable. The size limitation shall be included in the operational plan required by subsection C. Standards for Storefront Commercial Cannabis Retail Salesand Microbusinesses., paragraph 7(C)(7) of this section.
k. A Rretail facility Dispensary carrying a medical cannabis license type shall not have a physician on site to evaluate patients or provide recommendations for medical cannabis. l. Parking must meet the requirements of Chapter 17.36. m. Retail sales Dispensaries and on-site Cannabis Consumption Café/Lounge operating hours shall be limited to: Monday – Sunday: ten 8 a.m. to seven 10 p.m.

If the licensee holds a Type 12 microbusiness license, cultivation and manufacturing hours shall be established and approved through the use cannabis permit process. n. Delivery. Delivery of cannabis is allowed by retail facility license holdersRetail Dispensaries. Delivery functions must be included in the cannabis permit materials and approved as a discrete function. Delivery functions shall be in conformance with state law and all of the following:
i. Deliveries can only be conducted between the hours of ten 8 a.m. to seven 10 p.m.
ii. A delivery business wishing to make deliveries must obtain a state license Type 10, or a state cannabis license type subsequently established.

iii. Deliveries shall be made by an employee of the delivery businesslicensed Rretailer Dispensary and said employee shall carry with him/her at all times a physical copy of the city commercial cannabis permit and business license and state license when such a license is available. Delivery businessesLicensed Rretailers Dispensaries shall comply with all state law and regulations pertaining to cannabis delivery businesses.
o. Cannabis Consumption Café/Lounge.

Cannabis Permit applications or amendments to Retail Dispensary cannabis permits shall include a statement as to whether the use will include a Cannabis Consumption Café/Lounge.

If included, the application shall clearly indicate the proposed area for the use and a detailed operational plan that demonstrates compliance with the requirements set forth in subsection A. Standards for All Commercial Cannabis Uses. and subsection C. Standards for Storefront Commercial Cannabis Retail Salesand Microbusinesses., Chapter 9-31 (Smoking and Secondhand Smoke), and other local and state laws, permits and other applicable requirements.

Cannabis Consumption Café/Lounge shall also be subject to the following requirements to be demonstrated to the City’s satisfaction in the cannabis permit application or amendment:

1. Patients or Customers. Only patients or customers 21 years of age or older are to be permitted entry to the Cannabis Consumption Café/Lounge and shall be posted as such in accordance with state law.

2. The Cannabis Consumption Café/Lounge must be located on the same legal parcel as the associated Retail Dispensary.

3. Only Cannabis or Cannabis Products from the associated Retail Dispensary shall be brought into or delivered to the Cannabis Consumption Café/Lounge utilizing internal customer access following purchase between the retail and consumption areas or other secure internal automated means. Deliveries of Cannabis or Cannabis Products to the Cannabis Consumption Cafe/Lounge, if any, shall only be allowed in accordance with the approved Cannabis Retail permit and state law.

4. If permitted under state law and approved under the City Retail Dispensary permit, a Cannabis Consumption Cafe/Lounge preparing or selling non-cannabis foods or beverages shall comply with all applicable provisions of the California Retail Food Code (Chapter 1 (commencing with Section 113700) of Part 7 of Division 104 of the Health and Safety Code), as applicable. Cannabis Consumption Café/Lounges preparing or selling non-cannabis foods or beverages may be subject to additional cannabis permitting and inspection requirements of the Sonoma County health official, per subsection A. Standards for All Commercial Cannabis Uses., paragraph 5. Adjustments to an existing Retail Dispensary permit to allow for the preparation or selling of non-cannabis foods or beverages shall be subject to the review and approval of the City Manager or his/her designated review authority.

5. A Cannabis Consumption Café/Lounge shall not allow the sale, consumption, or use of alcohol or tobacco on the premises.

6. A Cannabis Consumption Cafe/Lounge shall only sell cannabis to a customer/patient in an amount that is reasonable and consistent with personal possession and use limits allowed by the state or is otherwise protective of customer/patient health and protects the public. Implementation of a responsible cannabis service program and safe driver program acceptable to the City is required, including means to effectively manage edible cannabis or other products with delayed onset intoxication.

7. If permitted under state law and approved under the City Retail Dispensary permit, any retail sales of Cannabis or Cannabis Products in the cannabis consumption café/lounge shall include appropriate controls and security of product inventory as well as cash handling and point of sale terminals, consistent with the requirements for Retail Dispensaries.

8. Cannabis and Cannabis Products purchased at the associated Retail Dispensary or in the Cannabis Consumption Café/Lounges may be removed from their packaging and consumed in the permitted area. Cannabis and Cannabis Products not fully consumed must be resealed in their original packaging, placed in opaque packaging, and taken off site by the customer/patient.

9. Ingestion of cannabis or cannabis products shall not be visible from any public place or non-age restricted area.

10. The space occupied by a Cannabis Consumption Cafe/Lounge shall be definite and distinct from the space where other licensed activities are exercised and shall be accessed through a separate entrance.

11. The entrance to the Cannabis Consumption Café/Lounge shall be clearly and legibly posted with a notice indicating that smoking and vaping of Cannabis is prohibited on-site or in the vicinity of the site, except in designated areas (as permitted in accordance with Chapter 9-31 (Smoking and Secondhand Smoke) and state law. po. Record Keeping. A cannabis Rretail facility Dispensary shall maintain records in accordance with the state and local requirements of its license type.

If a Rretail facility Dispensary carries asells medical cannabis license, it shall maintain records using only the State of California Medical Marijuana Identification Card numbers issued by the county or the county’s designee, pursuant to California Health and Safety Code Section 11362.7 et seq. , or a copy of a written doctor’s prescription or recommendation, as a protection for the confidentiality of the cardholders. The facility Retail Dispensary shall track when members’ medical cannabis recommendations and/or identification cards expire and enforce conditions of membership by excluding members whose identification cards or recommendations are invalid or expired. The facility shall maintain member records in a manner to protect confidential information in the records if the records contain information protected by applicable law, including but not limited to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and Public Law 104-191. A medical rRetail facility Dispensary shall exclude members who are caught diverting cannabis for nonmedical use. All membership records shall be maintained on site.

i. A Rretail facility Dispensary shall, by using the patient’s or caregiver’s identification number, keep an accurate account of the number of members who visit the dispensary each month, and also for the entire permit year. ii. The facility Retail Dispensary shall keep accurate records, follow accepted cash handling practices and maintain a general ledger of cash transactions. iii. The Rretail facility Dispensary shall allow the city to access the books, records, accounts and all data relevant to its operations for purposes of conducting an audit or examination to determine compliance with the municipal code, administrative regulations, conditions of approval, and applicable laws. Books, records, accounts and all relevant data shall be produced no later than twenty-four hours after receipt of the city’s request.
qp. Required Signage. The following signs, in measurements of not less than eight by ten inches, shall be clearly and legibly posted in a conspicuous location inside the Retail dDispensary where they will be visible to customers in the normal course of a transaction, stating:
ii. i. “The dispensing of cannabis without a state license is illegal.” ii. “Use or consumption of cannabis on this premises or property is prohibited.”.” Cannabis Consumption Café/Lounges are exempted from this requirement in the permitted consumption area.
iii. For Rretail cannabis facilitiesDispensaries: “All visitors to this premises must be at least 21 years of age, or, at least 18 years of age and able to show a government issued medical cannabis ID card in accordance with California Health and Safety Code Section 11362.7 et seq.HSC 11362.7(c) through (g).” Cannabis Consumption Café/Lounges are required to post the following in the permitted consumption area:
“All visitors to this premises must be at least 21 years of age.” D. Standards for Manufacturing, Testing, Storage, Distribution and Non-Storefront Retail of Commercial Cannabis.

1. Permits under this section shall only be issued to commercial cannabis uses operating under state cannabis license classification Types 6, 7, 8, 9 and 11.

12. Permits shall be issued by the city council according to the requirements of subsection A. Standards for All Commercial Cannabis Uses., paragraph 7 (A)(7) of this section and this subsection D and may include conditions of approval.

23. Additional Operating Standards. In addition to the requirements of subsection A of this section, any base zone requirements, and all state laws and regulations, commercial cannabis uses permitted under this section shall also comply with the following operational standards:
a. Facilities shall not be open to the general public.
b. Extraction Processes. Manufacturers shall utilize only extraction processes that are (i) solvent free or that employ only nonflammable, nontoxic solvents that are recognized as

safe pursuant to the federal Food, Drug and Cosmetic Act, and/or (ii) use solvents exclusively within a closed loop system that meets the requirements of the federal Food, Drug and Cosmetic Act, including use of authorized solvents only, the prevention of off gassing, and certification by a California licensed engineer. c. No closed loop systems shall be utilized without prior inspection and approval of the city’s building and fire code officials.
d. Standard of Equipment. Extraction equipment used by the manufacturer must be listed or otherwise certified by an approved third-party testing agency or licensed professional engineer and approved for the intended use by the city’s building and fire code officials. e. Annual Recertification Required. Extraction equipment used by the manufacturer must be recertified annually and a report by a licensed professional engineer on the inspection shall be maintained on site.
f. Food Handler Certification. All owners, employees, volunteers or other individuals who participate in the production of edible cannabis products must be state certified food handlers. The valid certificate number of each such owner, employee, volunteer or other individual must be on record at the manufacturer’s facility where that individual participates in the production of edible cannabis products. g. Edible Product Manufacturing. Cannabis businesses that sell or manufacture edible medical cannabis products shall obtain a Sonoma County health permit. Permit holders shall comply with Health and Safety Code Section 13700 et seq. and Sonoma County health permit requirements. These requirements provide a system of prevention and overlapping safeguards designed to minimize foodborne illness, ensure employee health, demonstrate industry manager knowledge, ensure safe food preparation practices and delineate acceptable levels of sanitation for preparation of edible products.

34. Permit Requirements and Restrictions. The following limits on number and location of commercial cannabis facilities apply:
a. The number of permits issued under this section shall not exceed a total of seven (7).

These limits do not apply to Type 11 distribution license types issued in conjunction with another allowable type. Only standalone Type 11 license types shall count toward the total number of allowable permits. No more than one of these permits may be issued to a Type 9 non-storefront retailer license holder. The remaining permits may be issued among the allowable types identified in Table 2-2, Allowable Land Uses and Permit Requirements, of Chapter 17.22, in subsection (D)(1) of this section in any combination.

Permittees who obtain state licenses for both adult (recreational) and medical uses for the same premises shall require one commercial permit from the city. b. Specific to Non-Storefront Retailers. Any commercial cannabis permit issued to a nonstorefront retailer with a Type 9 license, or a state cannabis license type subsequently established, will be subject to the requirements set forth in this subsection D and not those set forth in subsection C. Standards for Storefront Commercial Cannabis Retail Salesand Microbusinesses. C of this section for storefront retailers. In addition, the following specific requirements shall apply. Non-storefront retailers:
i. Are allowed only in CI, IG and PF zones.

ii. May not be located within six hundred feet of a cannabis retailer with a storefront.

There is no spacing or distance requirement to any other commercial cannabis business.
c. No facility permitted under this section shall be located on any parcel containing a dwelling unit, nor within six hundred feet of any school, or within one hundred feet of a residential zoning district.
d. The distances listed above shall be measured between the nearest entrances of the cannabis facility and the above listed use, along the shortest route intended and available for public passage.
e. All Level II manufacturing facilities require a use permitcannabis permit issued in accordance with Section 17.62.050. All use permitcannabis permits issued for a Level II manufacturing facility shall include the following provision: “This use permitcannabis permit shall expire upon change of tenancy or sale or transfer of the business.”

45. Manufacturing and delivery operations shall be subject to additional permitting and inspection requirements of the Sonoma County health official, per subsection A. Standards for All Commercial Cannabis Uses., paragraph 5(A)(5) of this section.

6. Delivery. Delivery of cannabis by Type 6, 7, 8 or 11 license holders is not allowed.

E. Grounds for Permit Revocation or Modification.

Noncompliance with any requirement of this section shall be treated as a violation of the city’s municipal code and permits issued may be revoked or modified in accordance with Section 1l7.89.070(C) and the city shall have the right to recovery of all costs to revoke or modify the permit in accordance with Section 17.89.080 and to levy fines in accordance with the city’s adopted bail schedule.

Section 9: Construction and severability.

It is the intent of the City Council of the City of Cotati to supplement applicable state and federal law and not to duplicate or contradict such law, and this ordinance shall be construed consistently with that intent. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this ordinance, or its application to any other person or circumstance. The City Council of the City of Cotati hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

Section 10: Effective date.

This ordinance shall take effect thirty (30) days after its adoption pursuant to California Government Code.

Section 11: Publication. The city clerk shall cause this ordinance to be published and/or posted as required in Section 36933 of the California Government Code.