SR-24-108
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: May 7, 2024
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance to Adopt a Cannabis Consumption Space Use Type
RECOMMENDATION:
Approve Second Reading, read by title only and adopt: “An Ordinance of the City Council of the City of Desert Hot Springs, Amending Title 17 and Title 5 of the Desert Hot Springs Municipal Code Concerning Cannabis Consumption Space Facilities and the Regulations, Zoning and Requirements Thereof”
BACKGROUND:
The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on April 16, 2024.
The Ordinance shall take effect thirty (30) days after its second reading.
FISCAL IMPACT:
None.
ENVIRONMENTAL ANALYSIS:
In accordance with the provisions of the California Environmental Quality Act (“CEQA”), this project is Categorically Exempt from environmental review pursuant to Section No. 15061(b)(3) of the California Environmental Quality Act because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment.
ATTACHMENTS:
1) Staff Report from April 16, 2024
2) Consumption Space Ordinance
Item Number: 11.
SR-24-094
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: April 16, 2024
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: An Ordinance to Adopt a Cannabis Consumption Space Use Type RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony for those opposed;
6) Take public testimony for those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: “An Ordinance of the City Council of the City of Desert Hot Springs, Amending Title 17 and Title 5 of the Desert Hot Springs Municipal Code Concerning Cannabis Consumption Space Facilities and the Regulations, Zoning and Requirements Thereof”
BACKGROUND:
Chapter 17.180 of the Desert Hot Springs Municipal Code (“DHSMC”) provides the zoning framework for the operation of Cannabis Facilities. Sections 17.180.048 and 17.180.040 regulate the zoning and conditions related to Cannabis Consumption Space Facilities.
The City currently utilizes the Cannabis Compliance Team and Code Compliance Division (collectively, the “Cannabis Team”) to enforce Chapter 17.180 and to inspect all cannabis facilities.
Based on their experience and expertise, the Cannabis Compliance Division and Code Compliance Division recommend an amendment of Chapter 17.180 to address deficiencies in the zoning and approval of cannabis consumption spaces.
DISCUSSION:
The proposed ordinance seeks to amend Chapter 17.180 to update zoning and authorization for specific Cannabis Facilities use types. Cannabis Facility owners and operators have approached the City seeking a review of the approval of cannabis consumption spaces as a use type by repealing and replacing the cannabis entertainment facility use type, as well as amending the cannabis consumption space operating conditions to allow consumption spaces. In particular the following are the logistical issues facing the Cannabis Entertainment Facilities:
Item Number: 11.
SR-24-094
1. Cannabis lounges currently require some form of entertainment as the main attraction to the facility, or they are required to be a part of a cannabis hotel.
2. There has been no demonstrated interest in cannabis entertainment or hotel facilities.
3. Cannabis consumption spaces should be viewed as ancillary facilities within storefront retail facilities or adjacent to other cannabis use types.
4. For consistency within the DHSMC, operating requirements will be located within Chapter
5.50. These realities reflect a need for cannabis consumption space to be viewed as optional facilities within storefront retail facilities or adjacent to other cannabis use type. Although an entertainment component would no longer be required, different types of entertainment would be allowed. For cannabis consumption spaces that are not a component of an existing storefront cannabis retailer, a storefront cannabis facility would be required. As this would attract new cannabis retailers to the city, existing storefront facilities would be allowed to add a cannabis consumption space, if existing space allowed for it. In order to balance these realities with the needs of the public, the proposed Ordinance would amend current regulations within 17.180 and 5.50 to allow cannabis lounges as a facility within a storefront retail facility.
FISCAL IMPACT:
No fiscal impact.
ENVIRONMENTAL ANALYSIS:
In accordance with the provisions of the California Environmental Quality Act (“CEQA”), this project is Categorically Exempt from environmental review pursuant to Section No. 15061(b)(3) of the California Environmental Quality Act because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment.
ATTACHMENTS:
1) Consumption Space Ordinance
Item Number: 11.
ORDINANCE NO. ___
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS, AMENDING TITLE 17 AND TITLE 5 OF THE DESERT HOT
SPRINGS MUNICIPAL CODE CONCERNING CANNABIS CONSUMPTION
SPACE FACILITIES AND THE REGULATIONS, ZONING AND
REQUIREMENTS THEREOF
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, Chapter 5.50 “Marijuana Facilities Regulatory Permit,” of the Desert Hot Springs Municipal Code (“DHSMC”) establishes standards for granting permits to Marijuana Facilities within the City; and
WHEREAS, Chapter 17.180, of the DHSMC establishes zoning regulations and development standards for Marijuana Facilities, as that term is defined, within the City; and
WHEREAS, currently, section 17.180.048 of the DHSMC establishes development standards and other regulations for Marijuana Entertainment Facilities; and
WHEREAS, the City Council desires to amend Title 17 of the DHSMC with development standards for Cannabis Consumption Spaces; and WHEREAS, the City Council desires to amend Title 5 of the DHSMC with regulations and requirements for Cannabis Consumption Spaces; and WHEREAS, the City Council finds that Cannabis Consumption Space Facilities uses as beneficial to the City as the City will realize tax benefits, and it will also benefit the businesses to allow for such augmentation to their business models; and WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment; and WHEREAS, the Planning Commission held a duly noticed hearing on this Ordinance and recommended that the City Council adopt same; and Item Number: 11.
WHEREAS, this Ordinance is compatible with the general objectives of the General Plan and any applicable specific plan; and
WHEREAS, this Ordinance protects the public health, safety and welfare.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES ORDAIN AS FOLLOWS:
Section 1. RECITALS.
The Recitals are hereby incorporated by this reference.
Section 2. AMENDING SECTION 17.180.030 “DEFINITIONS” OF CHAPTER 17.180 “MARIJUANA FACILITIES OPERATION
AND LOCATION” OF TITLE 17 “ZONING” OF THE
DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.030 (“Definitions”) of Chapter 17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read in its entirety as follows:
17.180.030 Definitions.
Words and phrases not specifically defined in this chapter shall have the meanings ascribed to them as follows.
When used in this chapter, the following words shall have the meanings ascribed to them in this section. Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision. Words and phrases not specifically defined in this chapter shall have the meanings ascribed to them by the following sources:
A. The CUA of 1996 (California Health and Safety Code Section 11362.5), and as may be amended from time to time;
B. The MMPA (California Health and Safety Code Sections 11362.7 through 11362.83);
C. The MAUCRSA (Medicinal and Adult Use Cannabis Regulation and Safety Act), enacted on June 27, 2017, as may be amended from time to time. “Cannabis” or “marijuana” shall have the same meaning as provided in Health and Safety Code Section 11018, as amended (which code section used to define Item Number: 11.
“marijuana”). The terms “cannabis” and “marijuana” shall be used interchangeably in this chapter.
“Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter.
A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
“Cannabis consumption space facility” means a licensed cannabis retail premises where cannabis and cannabis products may be purchased (for on-site consumption) and consumed (smoked or ingested) by persons 21 years of age and over within the confines of the facility.
“Consuming” or “Consumption” means smoking, eating, drinking, chewing, applying topically, or otherwise ingesting.
“Consumption area” means designated areas within a cannabis consumption space facility where patrons are allowed to consume cannabis and cannabis products.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Cultivator” means marijuana facilities licensed as a cultivation site or as a cultivator pursuant to California Business and Professions Code Section 19300 et seq., or pursuant to California Business and Professions Code Section 26000 et seq. “Delivery” means the commercial transfer of cannabis or cannabis products from a State licensed distributor or retailer wherever located, to an adult 21 years of age or older, qualified patient, or primary caregiver located in the City of Desert Hot Springs, and shall include the use of any technology platform that enables adults 21 years of age or older, qualified patients, or primary caregivers located in Desert Hot Springs to arrange for or facilitate the commercial transfer of marijuana or marijuana products. “Distribution” means the procurement, sale, or transport of cannabis or cannabis products either within the City limits, or to and from the City from a place outside the City limits, from a permitted business location of a licensed entity to a permitted business location of another licensed entity subject to State laws and regulations and subject to the provisions of this chapter and the City’s Municipal Code. “Legal parcel” means a parcel of land for which 1 legal title exists. Where contiguous legal parcels are under common ownership or control, such legal parcels may at the option of the property owner be counted as a single parcel for purposes of this chapter.
Item Number: 11.
“Light manufacturer” means a person or entity that conducts the production, preparation, or compounding of cannabis or cannabis products either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. “Light manufacturing facility” means a facility that conducts the production, preparation, or compounding of cannabis or cannabis products either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
“Manufacturer” means a person or entity that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. “Marijuana cultivation facility” means a facility wherein marijuana is propagated, planted, grown, harvested, dried, cured, graded, labeled, tagged for tracking, or trimmed, or wherein all or any combination of those activities takes place. “Marijuana distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of marijuana and/or marijuana products between entities operating in strict accordance with State law, as may be amended from time to time, and subject to the provisions of this chapter and the City’s Municipal Code. “Marijuana entertainment facility” means any facility or location, the primary function of which is an entertainment use, and which must contain an entertainment use (such as a movie, theater, bowling alley, concert venue) or as that use may be defined in DHMC Section 17.04.050, and at least 1 other of the following uses: (1) marijuana storefront retail facility, as defined; and/or (2) onsite marijuana consumption area. “Marijuana facility” means collectively any marijuana storefront retail facility, nonstorefront retail facility, marijuana cultivation facility, marijuana distribution facility, marijuana testing facility, marijuana hotel facility, or marijuana manufacturing facility, as those terms are defined in this chapter.
“Marijuana hotel facility” means a hotel, motel, or other transient lodging facility as defined by Chapter 3.20 of this code that possesses a permit issued pursuant to this chapter.
“Marijuana manufacturing facility” means a facility where the production of marijuana concentrate, and/or the preparation, propagation, or compounding of manufactured marijuana, either directly or indirectly or by extraction methods or independently by Item Number: 11.
means of chemical synthesis, or the packaging or repackaging of marijuana or marijuana products, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid marijuana manufacturing facility license, a Marijuana Regulatory Permit, and a Conditional Use Permit all issued in accordance with this chapter and the City’s Municipal Code, and provided that the facility will qualify for a valid State license when the State of California begins issuing State licenses to marijuana manufacturers. “Marijuana testing facility” shall have the same definition as in the Business and Professions Code Section 26001, as may be amended, which currently means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; (2) licensed by the Bureau of Cannabis Control, and regulated by Section 5700 et seq., as may be amended of Title 16 of the California Code of Regulations.
Notwithstanding, a “marijuana testing facility” shall also mean any of the following: (1) a testing facility that is contracted with the State of California or any lawful department thereof, to provide testing or research and development on behalf of or to benefit the State; (2) a testing facility that is contracted with the United States of America, or any lawful department thereof to provide testing or research and development on behalf of or to benefit the United States.
“Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation.
“Non-storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5414 to 5427 et seq., in the California Code of Regulations, as may be amended. Currently, this is a delivery only retail facility which sells marijuana to a customer solely and exclusively by delivery.
“Off-site sales” means the sale of marijuana for consumption off the premises. “On-site sales” means the sale of marijuana for consumption on the premises. “Patron” means a registered guest of a hotel or motel or other transient lodging facility as defined by Chapter 3.20 of this code. Patrons shall not include any visitors or customers who do not register as guests.
“Storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5400 to 5413 et seq., in the California Code of Regulations, as may be amended. Currently, this is a retail facility which sells and/or delivers marijuana or marijuana products to Item Number: 11.
customers. A storefront retail facility shall have a licensed premises which is a physical location from which commercial cannabis activities are conducted.
Section 3. REPLACING SUBSECTION 17.180.048(a) TO THE
DESERT HOT SPRINGS MUNICIPAL CODE
Subsection 17.180.048(a) of Chapter 17.180 of the Desert Hot Springs Municipal Code shall be replaced and shall read as follows:
17.180.48 Cannabis Consumption Space facilities
A. Permitted Locations. Cannabis consumption space facilities shall only be located in any commercial district, any industrial district or the Mixed-Use Corridor District in the City.
B. A cannabis consumption space facility must include a storefront retail use that complies with all terms and conditions in this chapter, including all State and local laws. The cannabis consumption space facility shall enjoy all uses as provided in Section 17.180.040.
C. Conditional Use Permit/Regulatory Permit Required. Prior to beginning operations, cannabis consumption space facilities shall obtain both a City-issued Conditional Use Permit and a Regulatory Permit, except as otherwise herein allowed in subsection D.
D. If or when State laws and/or regulations allow for more uses for on-site marijuana consumption venues (such as allowance of infused products, or alcohol sales on the same premises as marijuana sales), such allowed uses may be allowed as follows:
1. Administrative Approval. A duly approved cannabis consumption space facility with a duly approved Conditional Use Permit and Regulatory Permit, and in good standing with the City, may request a modification of the already approved Conditional Use Permit to operate a cannabis consumption space facility provided the Director of Community Development, or designee, finds all of the following:
a. There is a 10% or less than deviation to each of the following:
1. On-site circulation and parking, loading and landscaping;
2. Placement and/or height of walls and fences;
Item Number: 11.
3. Exterior architectural features, including colors, and/or modification of finished materials that do not alter or compromise the previously approved theme;
4. The density or intensity of a development project;
5. Paving; and
6. Hours of operation.
2. The cannabis consumption space facility use is consistent with the goals, objectives, policies and programs of the General Plan.
3. The cannabis consumption space facility use complies with applicable zoning and other regulations.
4. The cannabis consumption space facility use will not be detrimental to the public health, safety or welfare or materially injurious to properties or improvements in the vicinity.
5. The location, design and operation of the cannabis consumption space facility use will be compatible with existing and planned land uses in the vicinity.
6. Any project contemplating this Administrative Approval must comply with the California Environmental Quality Act (“CEQA”), and any and all applicable State and local laws and regulations. If CEQA is in fact implicated, as so determined by the Director of Community Development, CEQA must be adhered to, as so required by law.
Applications for a modification of a Conditional Use Permit under this section shall be on a form prescribed by the Director and shall be filed with the Department, pursuant to Chapter 17.68 (Applications and Fees) and must be approved by the Director, or designee, who may establish additional conditions to further the intent of this section.
E. Hours of Operation. Cannabis consumption space facilities operating in any permissible district may operate the consumption space between the hours of 6:00 a.m. and 2:00 a.m. and may operate up to seven days per week.
1. Cannabis retail sales must cease at 10:00 p.m.
2. Cannabis retail sales must comply with State and local law.
F. Cannabis consumption space facilities must comply with all local and State laws as it pertains to such use at all times, which certain applicable laws are Item Number: 11.
currently set forth in Title 16 Code of Regulations, Sections 5414 through 5427, as may be amended.
Section 4. AMENDING SECTION 17.180.040 TO THE DESERT HOT
SPRINGS MUNICIPAL CODE
17.180.040 Marijuana storefront retail facilities
A. Permitted Locations. Marijuana storefront retail facilities shall only be located in any Commercial District in the City.
B. Number of Plants. Storefront retail facilities shall not cultivate more than 99 mature flowering marijuana plants on site at any one time.
C. Conditional Use Permit/Regulatory Permit Required. Storefront retail facilities shall obtain both a City-issued Conditional Use Permit and Regulatory Permit.
D. Approved storefront retail facilities operating with a City-approved Conditional Use Permit and in compliance with all local and State laws may, at their discretion, add a light manufacturing use and also become a light manufacturing facility to their current storefront retail facility.
E. Approved storefront retail facilities operating with a City-approved Conditional Use Permit and in compliance with all local and State laws may, at their discretion, add cannabis consumption space facility use.
FE. Approved storefront retail facilities operating with a City-approved Conditional Use Permit and in compliance with all local and State laws may, at their discretion, add a light distribution use to their current storefront retail facility. Any and all light distribution uses must comply with all of the following:
1. Facility must have separate employee only loading door towards the rear of the building. Loading door shall not be located on the same building frontage as the public access door.
2. A maximum number of one unmarked vehicle shall be used to distribute products.
3. The vehicle mentioned above must have a designated and marked parking space, which space must be in close proximity to the required loading door.
4. All State and local laws and regulations must be complied with at all times.
Item Number: 11.
GF. Hours of Operation. All marijuana storefront retail facilities operating in any district may only operate between the hours of 6:00 a.m. and 10:00 p.m. and may operate up to seven days per week.
HG. Notwithstanding subsection C above, any and all light manufacturing facilities must comply with applicable State law and regulations, including the California Environmental Quality Act (“CEQA”).
IH. Storefront retail facilities must comply with all local and State laws as it pertains to such use at all times, which certain applicable laws are currently set forth in Title 16 Code of Regulations, Sections 5400 through 5413, as may be amended.
Section 5. AMENDING SECTION 5.50.080 TO THE DESERT HOT
SPRINGS MUNICIPAL CODE
5.50.080 General operating requirements.
All cannabis facilities must comply with the requirements set forth in this section.
A. Every cannabis facility shall operate in compliance with all applicable State and local laws and regulations governing cannabis facilities.
B. Every cannabis facility shall maintain and update on a monthly basis a roster of current owners, employees, temporary employees, independent contractors, and any other person engaged in the operation of the cannabis facility. The roster must include names, each individual cannabis identification number (CID) and date of hire. The roster shall be made available for inspection or copying by the City Manager or designee upon written or oral request. Notwithstanding anything to the contrary in this section, the cannabis facility shall immediately notify the City of any new or different employees, independent contractors, and any other person engaged in the operation of the cannabis facility in order to conduct a background check under Section 5.50.050.
C. No person who is less than 21 years of age may be employed or otherwise engaged in the operation of a cannabis facility.
D. Cannabis and cannabis goods possessed by a cannabis facility shall be kept and stored in a secured manner at all times.
E. On-site smoking, ingestion, or consumption of cannabis shall be prohibited on the premises of all cannabis facilities. “Premises,” for purposes of this section, includes the actual building as well as any accessory structures, common areas and parking areas.
1. Cannabis consumption space facilities are exempt from this requirement within designated cannabis consumption areas.
Item Number: 11.
F. Cannabis facilities shall not sell, provide, store, or distribute any alcoholic beverages or tobacco products, or allow such products to be consumed on the premises.
G. Cannabis facilities shall not advertise in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis goods.
H. Each cannabis facility shall display a copy of its cannabis facilities regulatory permit issued pursuant to this chapter in a conspicuous place at or near the entrance to the premises.
I. Cannabis facilities shall not permit a physician to evaluate potential medicinal cannabis patients or to provide a physician’s recommendation for medicinal cannabis within its premises. Cannabis facilities shall not offer or provide any form of remuneration to a physician who provides physician’s recommendations for medicinal cannabis.
J. Waste Disposal. 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.
K. Each cannabis facility must ensure that its licensed premises are maintained in a sanitary manner and activities on its licensed premises are conducted in a sanitary manner.
L. Cannabis facilities are not authorized to sublet any portion of their premises for any purpose, unless all necessary applications to modify the existing premises to accomplish any subletting have been approved by the City.
M. Hours of Operation. Except as otherwise provided in Chapter 17.180 of this Code, cannabis facilities may operate only between the hours of 6:00 a.m. and 10:00 p.m. and up to seven days per week.
N. If consumable cannabis goods (including, but not limited to, lollipops, brownies, cookies, ice cream, etc.) are present on-site or offered for distribution, then the cannabis facility shall secure any approval from the County of Riverside Department of Health Services required for handling food products.
O. Cannabis facilities shall have an electronic point of sale system that produces historical transactional data for review by the City Manager or designee for auditing purposes.
P. Odor Control. Cannabis facilities shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis facility that is Item Number: 11.
distinctive to its operation is not detected outside the cannabis facility, anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the cannabis facility. As such, cannabis facilities must install and maintain the following equipment or any other equipment which the City Manager or designee determines has the same or better effectiveness:
1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or
2. An air system that creates negative air pressure between the cannabis facility’s interior and exterior so that the odors generated inside the cannabis facility are not detectable outside the cannabis facility.
A violation of this subsection by any cannabis facility located within an Industrial District shall be excused so long as the odor is not detectable more than 150 feet beyond the cannabis facility’s property line.
Q. Each cannabis facility shall provide the City Manager or designee with the name, phone number, facsimile number, and email address of an on-site community relations or staff person or other representative to whom the City can provide notice if there are operating problems associated with the cannabis facility or refer members of the public who may have any concerns or complaints regarding the operation of the cannabis facility. Each cannabis facility shall also provide the above information to its business neighbors located within 100 feet of the cannabis facility as measured in a straight line without regard to intervening structures, between the front doors of each establishment.
R. Create and maintain an active account within the state’s track and trace system required by Business and Professions Code Section 26067 prior to commencing any commercial cannabis activity. In the event of system failure, the cannabis facility shall keep a hard copy record and transfer the information to the track and trace system within 24 hours of the system being available.
S. Cannabis facilities must pay all applicable taxes pursuant to Federal, State, and local law, including, but not limited to, the cannabis tax required by Title 3, State and local sales and use taxes, and State excise taxes.
T. Cannabis facilities shall fully comply with all applicable provisions of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (California Business and Professions Code Sections 26000 through 26211), Compassionate Use Act of 1996, the Medical Marijuana Program Act, the 2008 Attorney General Guidelines, all applicable provisions of this Code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval of the regulatory permit.
Item Number: 11.
U. Cannabis facilities shall create and maintain records of daily sign-in logs for all owners, employees, independent contractors, or any other person who will be engaged in the operation of the cannabis facility. A minimum of 30 days of daily sign-in logs shall be provided to the City Manager or designee upon a verbal or written request.
V. The City Manager or designee may impose reasonable terms and conditions on the proposed operations of the cannabis facility in addition to those specified in this chapter.
Section 6. AMENDING SECTION 5.50.020 TO THE DESERT HOT
SPRINGS MUNICIPAL CODE
5.50.020 Definitions.
Words and phrases not specifically defined in this Code shall have the meaning ascribed to them as defined in the following sources:
A. The Compassionate Use Act of 1996 (California Health and Safety Code Section 11362.5).
B. The Medical Cannabis Program Act (California Health and Safety Code Sections 11362.7 through 11362.83).
C. Medicinal and Adult-Use Cannabis Regulation and Safety Act (California Business and Professions Code Sections 26000 through 26211).
D. When used in this chapter, the defined terms in Chapter 17.180 of the municipal code shall have the same meanings for this chapter. “Cannabis” and “cannabis” have the same meaning and are used interchangeably.
E. When used in this chapter, references to State law include the laws as may be amended.
“Applicant” means any person applying for a permit or a renewal of a permit pursuant to this chapter.
“Cannabis” or “cannabis” shall have the same meaning as provided in Health and Safety Code Section 11018, as amended (which code section used to define cannabis).
The terms cannabis and cannabis shall be used interchangeably in this chapter. “Cannabis accessories” means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, Item Number: 11.
vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis goods into the human body.
“Cannabis business park” means a property owned by a private party or entity located in a commercial or industrial district that leases or sells or otherwise uses structures, parcels, or lots therein to two or more cannabis facilities engaged in commercial cannabis activity and which provides for the park security, amenities, improvements, and landscaping for the cannabis facilities therein. “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency.
Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
“Cannabis consumption space facility” means a licensed cannabis retail premises where cannabis and cannabis products may be purchased (for on-site consumption) and consumed (smoked or ingested) by persons 21 years of age and over within the confines of the facility.
“Cannabis cultivation facility” means a facility wherein cannabis is propagated, planted, grown, harvested, dried, cured, graded, labeled, tagged for tracking, or trimmed, or wherein all or any combination of those activities takes place. “Cannabis distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of cannabis and/or cannabis goods between entities operating in strict accordance with State law, as may be amended from time to time, and subject to the provisions of this chapter and the City’s Municipal Code. “Cannabis facility” means any business or operation that engages in commercial cannabis activity or medicinal cannabis, and includes every cannabis facility type defined in this chapter and in Chapter 17.180 of this Code. “Cannabis goods” means cannabis, including dried flower, and products containing cannabis.
“Cannabis manufacturing facility” means a facility where the production of cannabis concentrate, and/or the preparation, propagation, or compounding of manufactured cannabis, either directly or indirectly or by extraction methods or independently by means of chemical synthesis, or the packaging or repackaging of cannabis or cannabis goods, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid cannabis manufacturing facility license, a cannabis regulatory permit, and a conditional use permit all issued in accordance with this chapter and the City’s Municipal Code, and provided that the facility will qualify for a valid State license when the State of California begins issuing State licenses to cannabis manufacturers.
Item Number: 11.
“Cannabis testing facility” shall have the same definition as in the Business and Professions Code Section 26001, as may be amended, which currently means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis goods and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; (2) licensed by the Bureau of Cannabis Control, and regulated by Section 5700 et seq., as may be amended of Title 16 of the California Code of Regulations. “City” means the City of Desert Hot Springs.
“Consuming” or “Consumption” means smoking, eating, drinking, chewing, applying topically, or otherwise ingesting.
“Consumption area” means designated areas within a cannabis consumption space facility where patrons are allowed to consume cannabis and cannabis products.
“Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, dispensing, or sale of cannabis and cannabis goods, or any other cannabis activity allowed in this Code.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Cultivator” means cannabis facilities licensed as a cultivation site or as a cultivator pursuant to California Business and Professions Code Section 19300 et seq., or pursuant to California Business and Professions Code Section 26000 et seq. “Delivery” means the commercial transfer of cannabis or cannabis goods from a State licensed distributor or retailer wherever located, to an adult 21 years of age or older, qualified patient, or primary caregiver located in the City of Desert Hot Springs, and shall include the use of any technology platform that enables adults 21 years of age or older, qualified patients, or primary caregivers located in Desert Hot Springs to arrange for or facilitate the commercial transfer of cannabis or cannabis products. “Distribution” means the procurement, sale, or transport of cannabis or cannabis goods either within the City limits, or to and from the City from a place outside the City limits, from a permitted business location of a licensed entity to a permitted business location of another licensed entity subject to State laws and regulations and subject to the provisions of this chapter and the City’s Municipal Code. “Legal parcel” means a parcel of land for which one legal title exists. Where contiguous legal parcels are under common ownership or control, such legal parcels may at the option of the property owner be counted as a single parcel for purposes of this chapter.
Item Number: 11.
“Light manufacturer” means a person or entity that conducts the production, preparation, or compounding of cannabis or cannabis goods either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container. “Light manufacturing facility” means a facility that conducts the production, preparation, or compounding of cannabis or cannabis goods either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container. “Limited-access area” means an area within a cannabis facility in which cannabis goods are stored or held and is only accessible to a permittee, owner, employees or authorized individuals.
“Manufacturer” means a person or entity that conducts the production, preparation, propagation, or compounding of cannabis or cannabis goods either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container. “Medicinal cannabis” or “medicinal cannabis good” means cannabis or a cannabis good, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation.
“Nonstorefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5414 to 5427 et seq., in the California Code of Regulations, as may be amended. Currently, this is a delivery only retail facility which sells cannabis to a customer solely and exclusively by delivery.
“Off-site sales” means the sale of cannabis for consumption off the premises. “On-site sales” means the sale of cannabis for consumption on the premises. “Owner” or “owners” means any of the following:
1. A person with an aggregate ownership interest of 20% or more in a cannabis facility, or in the person applying for a cannabis facilities regulatory permit.
2. The manager of a nonprofit or other entity.
3. A member of the board of directors of a non-profit or for-profit entity.
Item Number: 11.
4. All persons with an aggregate ownership interest of 20% or more in a cannabis facility, including, but not limited to:
a. A general partner of a cannabis facility that is organized as a partnership. b. A non-member manager or managing member of a cannabis facility that is organized as a limited liability company.
c. Any person holding a voting interest in a partnership, association, or limited liability company.
d. All officers or directors of a cannabis facility that is organized as a corporation and all shareholders who individually own more than 20% of the issued and outstanding stock of the corporation.
5. A person who will be participating in the direction, control, or management of a cannabis facility.
“Permittee” means any business entity possessing a cannabis facilities regulatory permit pursuant to this chapter.
“Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. “Retail area” means a building, room, or other area that is open to the public, upon the licensed retailer or licensed microbusiness premises authorized to engage in retail sales in which cannabis goods are sold or displayed.
“Storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5400 to 5413 et seq., in the California Code of Regulations, as may be amended. Currently, this is a retail facility which sells and/or delivers cannabis or cannabis goods to customers. A storefront retail facility shall have a licensed premises which is a physical location from which commercial cannabis activities are conducted.
Section 7. AMENDING TO SECTION 5.50.040 TO THE
DESERT HOT SPRINGS MUNICIPAL CODE
5.50.040 Cannabis facilities regulatory permit application process.
Item Number: 11.
A. Every owner must complete each of the following steps prior to submitting an application for a cannabis facilities regulatory permit:
1. Secure all necessary land use entitlements as required by the City of Desert Hot Springs Zoning Code for the premises of the cannabis facility.
2. Obtain a valid State license pursuant to California Business and Professions Code Section 26000 et seq.
3. Secure building permits.
B. Upon the completion of all tasks under subsection A, the owner shall file an application to the City Manager or designee upon a form provided by the City and shall pay a nonrefundable application fee as established by resolution of the City Council as amended from time to time.
C. The application for a cannabis facilities regulatory permit shall include, but not be limited to, the following:
1. An operating plan that complies with the requirements of this chapter. The operating plan includes a general description of the proposed types of products and activities at the cannabis facility.
2. The address of the location of the cannabis facility and the names, dates of birth, phone numbers, email addresses, and mailing addresses of owners.
3. Information regarding the cannabis facility, including, without limitation, the name and address of the cannabis facility, and evidence that the cannabis facility is duly organized under the applicable laws of the State of California.
4. A floor plan designating all interior dimensions of the premises and the layout of the cannabis facility, 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. For cannabis consumption space facilities, such floor plans shall designate all cannabis consumption areas.
5. A list of each current and prospective owner, employee, independent contractor, and any other persons engaged in the operation of the cannabis facility.
Such persons must be 21 years of age or older.
6. For each current and prospective owner, employee, independent contractor, and any other persons engaged in the operation of the cannabis facility, a list of their criminal convictions in the State of California and in states other than California, if any, and any civil, administrative or legal judgment or other activities of a fraudulent nature.
Item Number: 11.
7. All owners, employees, and independent contractors, and any other persons engaged in the operation of the cannabis facility must submit fingerprints and other information for a background check, including a criminal history records check, as required by this chapter.
8. The name and address of the owner and lessor of the real property upon which the cannabis facility is to be operated. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a cannabis facility will be operated on his or her property.
9. A security plan that addresses the measures required by this chapter.
10. An odor control plan that complies with the requirements of this chapter.
11. The name and address of the cannabis facility’s current agent for service of process or other authorized agent.
12. The names and addresses of any other cannabis facility currently being operated by the applicant or owner, or that had previously been operated by the applicant or owner, and a statement of whether the authorization for any such operation had been revoked or suspended and, if so, the reason therefor.
13. Authorization for the City Manager or designee to seek verification of the information contained within the application.
14. A statement in writing by the applicant that it certifies under penalty of perjury that all the information contained in the application is true and correct.
15. Payment of a nonrefundable application fee. The fee shall be established by resolution of the City Council from time to time.
16. Any such additional information as deemed necessary by the City Manager or designee to administer this chapter.
D. If the application is incomplete, the applicant shall have an opportunity to cure the incompleteness within 30 days’ written notice by the City Manager or designee.
E. An applicant may withdraw its application any time prior to the issuance or denial of a permit by submitting a form for withdrawal provided by the City. Submission of a withdrawal form does not deprive the City of its authority to institute or continue any proceeding against the applicant for the denial of an application for a permit upon any ground provided by law or to enter an order denying an application for a permit upon any such ground.
Item Number: 11.
F. Following the issuance of a cannabis facilities regulatory permit, the cannabis facility may not commence or resume operations until it has secured a business license.
Section 8. ADDING TO RESERVED SECTION 5.50.130 TO
THE DESERT HOT SPRINGS MUNICIPAL CODE
5.50.130 Cannabis Consumption Space Facility Operating Requirements In addition to the operation requirements of Section 5.50.080, cannabis consumption space facilities shall comply with the requirements of this section.
All cannabis consumption facilities shall comply with all of the following:
A. In addition to off-site sales, a cannabis consumption space facility may sell cannabis products for on-site consumption only to be consumed within the cannabis consumption areas. Such on-site sales must be done and consummated by an employee of the consumption facility via menu only.
B. Any cannabis-containing product not fully consumed on site, shall be properly packaged for the patron to take it off site.
C. The sale or consumption of alcohol or tobacco products is not allowed on the premises, and other consistent with State law.
D. The smoking, inhalation, consumption or ingestion of cannabis or cannabis products shall not be visible from any public place or any area where minors may be present.
F. Existing Storefront Retailers that add a cannabis consumption space facility use must comply with all of the following:
1. Limit patron access to the display of cannabis and cannabis goods and all retail areas and otherwise comply with all of State and local laws.
1. Have a designated entrance from the street or public sidewalk for patrons.
2. Have an internal connection or passage to the retail areas to facilitate the dispensing of cannabis product.
3. Secure the entrance at the point of entry from the cannabis consumption space into internal connection or passage.
Item Number: 11.
G. Cannabis consumption space facilities may be located on an adjacent parcel or within a tenant space that is segregated and apart from any other cannabis facility provided it complies with all of the following:
1. Have a designated entrance from the street or public sidewalk for patrons
2. Have an internal connection or passage to the adjacent cannabis facility to facilitate the distribution of cannabis product.
3. Secure the entrance at the point of entry from the cannabis consumption space into the other cannabis facility.
H. The cannabis consumption space facility shall:
1. Create and maintain an active account within the State’s track and trace system required by Business and Professions Code Section 26067 prior to commencing any commercial cannabis activity.
2. Ensure that the consumption of cannabis or cannabis products is not visible from the outside of the business.
3. Comply with any other conditions specified in their cannabis facility Conditional Use Permit and Regulatory Permit.
4. Ensure that cannabis consumption space facility shall have adequate security and lighting for the safety of patrons and to protect the premises from theft at all times.
5. Comply with all State law and local requirements, including alcohol requirements.
6. Notify patrons verbally and through posting of a sign in a conspicuous location that entry into the premises by persons under the age of 21 is prohibited.
7. Employ a person to be on the premises to supervise employees and patrons at all times during business hours.
8. Provide the Desert Hot Springs Police Department and all neighbors within 100 ft of the business with the name and phone number of a designated owner or agent to notify if there are operational problems with the establishment.
9. Install an odor-absorbing ventilation and exhaust system so that odor generated inside the premises is not detected outside the premises.
10.Ensure within twenty-four (24) hours of any complaint concerning odor emanating from or originating within the facility, the owner or agent shall respond to the complaint in question and may be requested to file timely a written disclosure to the City documenting any and all actions taken and planned to address the odor complaints.
11.Ensure consumption areas shall be well-ventilated private areas that are partitioned off from access to all other areas of the retail establishment and are designed to prevent the flow of smoke to any other area of the establishment.
Item Number: 11.
12. Properly designate any and all smoking areas, if applicable, and in compliance with all local and State laws.
13.Ensure all designated smoking areas shall be 50 feet from any residential property line.
14.Place and properly maintain solid waste receptacles and recycling bins, in sufficient numbers and locations to service the needs of the proposed use at peak business periods.
15.Properly repackage any and all cannabis or cannabis products that are partially consumed to be taken off-site.
16.Ensure that all non-cannabis-infused food and drink must be prepared, sold, and served in accordance with State and local laws, regulations, and health standards.
1. Food prepared off-site may be delivered to cannabis consumption facility patrons.
2. If or when State laws and/or regulations allow for on-site food or drink preparation at consumption space facilities such uses may be allowed in accordance with State and County laws and regulations.
17.Ensure all food products, food storage facilities, food-related utensils, equipment, and materials shall be approved, used, managed, and handled in accordance with sections 113700-11437 of the California Health and Safety Code, and California Retail Food Code. All food products shall be protected from contamination at all times, and all food handlers must be clean, in good health, and free from communicable diseases.
I. The cannabis consumption space facility shall not:
1. Allow any on-duty employee to consume any cannabis or cannabis products on the premises.
2. Distribute any free samples of cannabis or cannabis products on the premises.
3. Sell, serve, or permit the sale or serving of cannabis or cannabis products to patrons who are visibly intoxicated.
4. Permit any public nuisances, including any noise violations or other offenses to the public peace and safety.
5. Allow smoking or vaping of any product outside of designated and marked smoking areas, consistent with all local and State law.
J. Conditional Use Permit/Regulatory Permit Required. Storefront retailer facilities with a consumption space shall obtain both a City-issued Conditional Use Permit and Regulatory Permit for that consumption space. The number of Item Number: 11.
Conditional Use Permits issued for cannabis facilities with a consumption space shall be above and beyond the limited number of conditional use permits allowed for storefront retail facilities.
K. Cannabis facilities with a consumption space must comply with all provisions of this code and State law at all times.
L. The storefront retail facility and/or the on-site cannabis consumption space, or any other cannabis component of the consumption space permit shall be subject to all applicable local taxes, including, but not limited to, those in Chapter
3.34. Section 6. SEVERABILITY
That the City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.
Section 7. AMENDING OF BAIL SCHEDULE
That the City Attorney's Office is hereby directed to determine whether this ordinance necessitates amendment of the City's Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.
Section 8. EXECUTION AND CERTIFICATION
That the City Clerk is directed to do all things necessary to cause the execution of this ordinance immediately upon its adoption and shall thereafter certify to the passage of this ordinance and cause the same to be published according to law.
Section 9. EFFECTIVE DATE
That this ordinance shall take effect thirty (30) days after its second reading by the City Council.
Item Number: 11.
That the foregoing Ordinance was approved and adopted at a meeting of the City Council held on ________________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
_______________________________
Scott Matas, Mayor
ATTEST:
____________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
Tuan-Anh Vu, City Attorney
____________________________________
By:
Item Number: 11.
SR-24-109
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: May 7, 2024
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance to Amend Cannabis Storefront Retailer's Ancillary Uses
RECOMMENDATION:
Approve Second Reading, read by title only and adopt: "An Ordinance of the City Council of the City of Desert Hot Springs, amending Title 17 Regarding Storefront Retail Zoning of the Desert Hot Springs Municipal Code."
BACKGROUND:
The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on April 16, 2024.
The Ordinance shall take effect thirty (30) days after its second reading.
FISCAL IMPACT:
None.
ENVIRONMENTAL ANALYSIS:
In accordance with the provisions of the California Environmental Quality Act (“CEQA”), this project is Categorically Exempt from environmental review pursuant to Section No. 15061(b)(3) of the California Environmental Quality Act because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment.
ATTACHMENTS:
1) Staff Report from April 16, 2024
2) Storefront Retail Ancillary Use Ordinance
Item Number: 12.
SR-24-095
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: April 16, 2024
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: An Ordinance to Amend Cannabis Storefront Retailer's Ancillary Uses RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony for those opposed;
6) Take public testimony for those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, amending Title 17 Regarding Storefront Retail Zoning of the Desert Hot Springs Municipal Code."
BACKGROUND:
Section 17.180 of the Zoning Code, provides zoning regulations and operating requirements of cannabis facilities, including section 17.180.040 for storefront retail facilities.
On February 6, 2024, the City Council approved a recommendation from staff to amend zoning and operational requirements for storefront retailers. This comes as a series of recommendations of amendments of cannabis regulations. These amendments are aimed at stabilizing the cannabis industry amid recent hardships felt throughout the state.
DISCUSSION:
The proposed ordinance seeks to amend Chapter 17.180.040 to update cultivation limitations for storefront retail Cannabis Facilities. Cannabis Facility owners and operators have approached the City seeking review of the 99 flowering plant limitation for storefront retail Cannabis Facilities. In particular, the following are the logistical issues facing the retail Cannabis Facilities:
1. Storefront Retail Facilities:
a. Storefront retail facilities are limited to 99 flowering cannabis plants.
Item Number: 12.
SR-24-095
b. All other provisions for cultivators in Desert Hot Springs are based on square footage, not plant count.
c. The City Council approved a new definition of cultivation space in July, 2023, which removed taxation of vertical growth.
These realities reflect the intent for cultivators to utilize their space more efficiently, which would seem to include storefront retail facilities. In order to allow storefront retail facilities who also cultivate cannabis plants to maximize their space, the proposed Ordinance would amend current regulations to place a limitation of 500 square footage as opposed to 99 flowering plant count. The proposed Ordinance would amend the space for flowering cannabis plants as there is no current limitation on non-flowering cannabis plants.
FISCAL IMPACT:
No fiscal impact.
ENVIRONMENTAL ANALYSIS:
In accordance with the provisions of the California Environmental Quality Act (“CEQA”), this project is Categorically Exempt from environmental review pursuant to Section No. 15061(b)(3) of the California Environmental Quality Act because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment.
ATTACHMENTS:
1) Storefront Retail Ancillary Use Ordinance
Item Number: 12.
C2014/000 - 1116578.1
ORDINANCE NO. ______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS, AMENDING TITLE 17 REGARDING STOREFRONT
RETAIL ZONING OF THE DESERT HOT SPRINGS MUNICIPAL CODE.
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, Chapter 17.180 of the Desert Hot Springs Municipal Code sets forth zoning regulations and operating requirements of cannabis facilities, including section
17.180.040 for storefront retail facilities; and
WHEREAS, the City Council desires to amend Chapters 17.180 of the Desert Hot Springs Municipal Code to update regulations related to limitations on the number of plants for cannabis storefront; and
WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and
WHEREAS, the City Council finds that this Ordinance is consistent with the General Plan; and
WHEREAS, the City Council finds that the passage of this Ordinance is in the best interest of the public interest, health, safety, convenience, and welfare.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES ORDAIN AS FOLLOWS:
Section 1. RECITALS.
The Recitals are hereby incorporated by this reference.
Section 2. AMENDING SECTION 17.180.040 (“MARIJUANA STOREFRONT RETAIL FACILITIES”) OF CHAPTER 17.180 (“MARIJUANA
FACILITIES OPERATION AND LOCATION”) OF TITLE 17
“ZONING” OF THE DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.040 (“Marijuana Storefront Retail Facilities”) of Chapter 17.180 (“Marijuana Facilities Operation And Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:
17.180.040 Marijuana storefront retail facilities.
Item Number: 12.
C2014/000 - 1116578.1
A. Permitted Locations. Marijuana storefront retail facilities shall only be located in any Commercial District (excluding Downtown Commercial Districts and Visitor-Serving Commercial Districts) in the City.
B. Number of Plants. Storefront retail facilities shall not cultivate in more than 99 500 square feet of space for mature flowering marijuana cannabis plants on site at any one time.
C. Conditional Use Permit/Regulatory Permit Required. Storefront retail facilities shall obtain both a City-issued Conditional Use Permit and Regulatory Permit.
D. Approved storefront retail facilities operating with a City-approved Conditional Use Permit and in compliance with all local and State laws may, at their discretion, add a light manufacturing use to their current storefront retail facility and, also, become a light manufacturing facility.
E. Approved storefront retail facilities operating with a City-approved Conditional Use Permit and in compliance with all local and State laws may, at their discretion, add a light distribution use to their current storefront retail facility. Any and all light distribution uses must comply with all of the following:
1. Facility must have separate employee only loading door towards the rear of the building. Loading door shall not be located on the same building frontage as the public access door.
2. A maximum number of 1 unmarked vehicle shall be used to distribute products.
3. The vehicle mentioned above must have a designated and marked parking space, which space must be in close proximity to the required loading door.
4. All State and local laws and regulations must be complied with at all times.
F. Hours of Operation. All marijuana storefront retail facilities operating in any district may only operate between the hours of 6:00 a.m. and 10:00 p.m. and may operate up to seven days per week.
G. Notwithstanding subsection C above, any and all light manufacturing facilities must comply with applicable State law and regulations, including the California Environmental Quality Act (“CEQA”).
H. Storefront retail facilities must comply with all local and State laws as it pertains to such use at all times, which certain applicable laws are currently set forth in in Title 16 Code of Regulations, Sections 5400 through 5413, as may be amended.
Section 3. SEVERABILITY
That the City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court Item Number: 12.
C2014/000 - 1116578.1
action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.
Section 4. AMENDING OF BAIL SCHEDULE
That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.
Section 5. EFFECTIVE DATE
That this ordinance shall be effective thirty days after the second reading of the ordinance.
Section 6. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.
PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of __________ by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
Scott Matas, Mayor
ATTEST:
_______________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
_______________________________
Tuan-Anh Vu, City Attorney
Item Number: 12.