Att 3 - Draft Neg Dec Initial Study with ATT and Pub Comm — Fort Bragg City Council, March 28, 2022 (part 1 of 2)

CITY OF FORT BRAGG
Incorporated August 5, 1889
Initial Study/Negative Declaration
Amendments to the City of Fort Bragg Municipal Code
Chapter 9.30 Cannabis Businesses and Title 18 Inland
Land Use Development Code to Regulate Cannabis
Businesses
February 16, 2022
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 2 Project title: Amendments to the City of Fort Bragg Municipal Code Chapter 9.30 Cannabis Businesses and Title 18 Inland Land Use Development Code to Regulate Cannabis Businesses.

Lead Agency Name and Address:

City of Fort Bragg
416 N. Franklin St.

Fort Bragg, CA 95437
Contact Person and Phone Number:

Heather Gurewitz, MCRP, AICP
Associate Planner
(707) 961-2827
Project Location: Inland Industrial (Light and Heavy) Zones and Inland Central Business District, General Commercial, and Highway Visitor Commercial Zones Project Sponsor’s Name and Address:

City of Fort Bragg
416 N. Franklin St. Fort Bragg, CA 95437
General Plan Designation: Industrial (Light and Heavy), Commercial (Central Business District, General and Highway Visitor Commercial)
Zoning: Industrial (Light and Heavy), Commercial (Central Business District, General and Highway Visitor Commercial)
Surrounding land uses and setting: The industrial and Commercial inland zones are surrounded by other zones including coastal and non-coastal zoning (See Figure 1).

Other public agencies whose approval is required: None
Have California Native American tribes traditionally and culturally affiliated with the project area requested consultation pursuant to Public Resources Code section 21080.3.1?
No, because this is a policy decision that does not affect a specific site.

This document was prepared by the City of Fort Bragg Community Development Department in consultation with Metropolitan Planning Group.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 3 Figure 1: City of Fort Bragg Zoning Map
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 4 PROJECT DESCRIPTION:

The existing regulations for a CBP are established by Municipal Code Chapter 9.30.

The proposed project establishes land use regulations pertaining to commercial cannabis cultivation (cannabis cultivation) in the industrial zones and makes minor modifications to existing regulations for commercial cannabis activity in commercial zones. These proposed changes only apply to the Inland Land Use and Development Code which regulates the inland area of Fort Bragg (see Figure 1). It also provides minor modifications to the City of Fort Bragg Municipal Code Chapter 9.30 Cannabis Businesses.

All commercial cannabis activity requires a discretionary Cannabis Business Permit (CBP) and will continue to be discretionary under the proposed municipal code changes. CBP applications are and will continue to be subject to review under the California Environmental Quality Act (CEQA). At the time an application is received and deemed complete, the City will conduct an Initial Study to determine the appropriate level of CEQA review. Some future Cannabis projects may qualify for one or more CEQA exemption pursuant to CEQA Guidelines Section 15300 provided that none of the exceptions set forth in 15300.2 apply.

The proposed project will amend four sections of the Inland Land Use and Development Code (ILUDC) to provide land use regulations for commercial cannabis cultivation and existing regulations for cannabis business activities in commercial zones. See the following attachments for the draft proposed amendments:

Attachment A Proposed Amendments to City of Fort Bragg Municipal Code Chapter 9.30 Cannabis Businesses
Attachment B Proposed Amendments to ILUDC Chapter 2 Including Revised Section 18.22.030 Commercial District Land Uses and Permit Requirements and Revised Section 18.42.030 Industrial Land Uses and Permit Requirements
Attachment C Proposed Amendments to ILUDC Chapter 4 Including New §18.42.055 Cannabis Cultivation, Revised §18.42.057 Cannabis Retail, and New §18.42.058 Cannabis Microbusiness
Attachment D Proposed Amendment to ILUDC Chapter 10 Definitions Including New and Revised Definitions in §18.100.020
The proposed changes to the Municipal Code Chapter 9.30 will:
 Add §9.30.130(H) which establishes a 100 foot buffer between schools and youth centers and cannabis dispensaries.
 Add §9.30.150 Retail Cannabis Retail Requirements which will:
o Reduce allowable operating hours for cannabis retail to 7:00 am – 7:00 pm
o Relocates existing regulations regarding employee, record keeping, photo identification, on-site consumption, and drive through operations from Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 5 ILUDC §18.42.057 to the Municipal Code Chapter 9.30 Cannabis Businesses.

The proposed changes to the ILUDC Chapter 2 §18.22.030 Commercial Districts include:
 The addition of Cannabis – Indoor Nursery Cultivation is added to Table 2-6 Allowed Land Uses and Permit Requirements for Commercial Zoning Districts (Table 2-6) in the Central Business District, General Commercial, and Highway/Visitor Commercial. The permit requirements are set by specific use regulations in §18.42.055, §18.42.057, and §18.42.058.
 The addition of Cannabis Microbusiness as a new use to Table 2-6 and is allowed with a Minor Use Permit in the Central Business District, the General Commercial, and Highway Visitor Commercial zones in accordance with Chapter

9.30 of the Municipal Code and the standards for specific land uses in §18.42.058.
 Cannabis Retail is changed from Conditional Minor Use Permit to “Permit requirement set by Specific Use Regulations” for the Central Business District, General Commercial Zone, and Highway Visitor Commercial. The specific land use standards in §18.42.057 allow cannabis retail as a permitted use with an approved CBP.
 Foot note (3) is added to Table 2-6 Cannabis Retail in the Central Business District which limits the total number of cannabis dispensaries to three in the zone. There are no limitations to the number of dispensaries in other zones.

The proposed changes to the ILUDC Chapter 2 §18.24.030 includes the following changes to Table 2-10 Allowable Land Uses and Permit Requirements for Industrial Zoning Districts:
 Addition of Cannabis - Indoor Nursery Cultivation, Cannabis – Indoor Cultivation of Mature Plants, and Cannabis Microbusiness with a conditional Minor Use Permit in the Light Industrial and Heavy Industrial Zones.  Cannabis Retail is added as an allowable accessory use in the Light and Heavy Industrial Zones.

The proposed changes to the ILUDC Chapter 4 includes:
 The addition of §18.42.055 which provides specific Land Use Standards for Cannabis Cultivation.
 Revisions to §18.42.057 Cannabis Retail:

Relocation of existing operating standards and requirements to the Municipal Code Chapter 9.30;
o Cannabis retail is allowed as a permitted/allowable use (with a discretionary Cannabis Business Permit) in the Central Business District, General Commercial Zone, and Highway Visitor Commercial Zone; o Accessory use section is revised to provide necessary clarification on what accessory uses are allowed and how a retail business with an accessory use is distinguished from a microbusiness.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 6  The addition of §18.42.058 Cannabis Microbusinesses which provides specific land use standards for cannabis microbusinesses.

The proposed changes to ILUDC §18.100.020 adds definitions for cannabis cultivation, cannabis microbusiness, and other definitions necessary to support regulations of these activities.

The proposed project will amend Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to add regulations for a new conditionally allowable use in industrial zones (cannabis cultivation), and will make minor modifications to the existing regulations for cannabis business activities in commercial zones.

Setting
The City of Fort Bragg is located on California’s North Coast in Mendocino County. The proposed project is for the non-coastal zoned areas of the City, referred to as “inland.” The City lies within the Coastal Franciscan Ecological Subsection of California (Miles and Goudey, 1997). This subsection is a steep, mountainous area of the northern California Coast Ranges, near the coast, south from Humboldt Bay to the Russian River. There is substantial oceanic influence on climate, including summer fog. The subsection is particularly mountainous, with rounded ridges, steep and moderately steep sides, and narrow canyons. The mean annual precipitation in this subsection is about 40 to 110 inches, with mostly rain at lower elevations. Runoff is rapid and many of the smaller streams are dry by the end of summer. Natural lakes are absent from the Coastal Franciscan Ecological Subsection (Miles and Goudey, 1997).

Located in the far west of the Noyo River Basin, the inland area of the City is mostly north of the Noyo River and south of Pudding Creek, with a small portion of the inland zone extending north on the east side of Highway 1. (See Figure 1) The City is approximately 2.85 square miles, 1/3 of which is the former Georgia Pacific Mill site in the coastal zone.

The City sits atop the coastal bluffs and the vegetation is characterized by Redwood forests, riparian stream habitat, and coastal/dune grasslands. The City has a diversity of wildlife which may include deer, mountain lions, bear, coyotes, bats, frogs, newts, and several species of shore birds. The US Fish and Wildlife Service notes the potential presence of several endangered or threatened species including the Pacific Marten, the Marbled Murrelet, the Northern Spotted Owl, Western Snowy Plover, Yellow-Billed Cuckoo, California Red-legged Frog, the Tidewater Goby, Behren’s Silverspot Butterfly, Lotis Blue Butterfly, and the Monarch Butterfly. There is one critical habitat identified in the City limits for the Tidewater Goby in the estuary of Pudding Creek. (USFW, 2022) The population of Fort Bragg is approximately 7,000 people. While it is small, it is the largest city on the coast between San Francisco and Eureka and is a popular tourist and recreational destination. The City is considered an Urban Cluster by the US Census.

The City’s population density is 2,586 people per square mile.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 7 Most areas in the inland industrial and commercial zones in the City limits, east of Highway 1, south of Pudding Creek and north of the Noyo River are developed.

However, there are some ruderal vacant lots and some open space. The City’s development is typically either redevelopment of existing lots or infill development on lots surrounded by urban uses. The exception is to the north of Pudding Creek and south of the Noyo River. The City purchased 90 acres on the former Georgia Pacific Mill site and converted the area to public access trails and open space in perpetuity.

Commercial land uses in the City are located along the State Highway 1 and Franklin Street corridors. The Central Business District, located between Oak Street and Pine Street, is the historic, civic and cultural core of the community. Industrial lands are located on the Georgia-Pacific mill property located west of State Highway 1, on North Franklin Street, north of the General Commercial, and on State Highway 1 north of Pudding Creek. Residential neighborhoods are located east of the commercial core and in the west Fort Bragg area. See Figure 1 for the City’s Zoning Map.

Land Use Setting
Approximately 47% of the City’s land is outside of the coastal zone and under the jurisdiction of the Inland General Plan and the Inland Land Use Development Code.

The Inland zone of the City has a full range of land uses including low to high density residential, retail and service commercial, manufacturing, public facilities, recreation, and open space. The Inland General Plan Land Use Element establishes policies and programs to maintain the existing pattern of land uses within the City while anticipating and providing for future growth and development.

The 2012 Inland General Plan Land Use Element includes the following land use designations for the Inland area of the City:
4  Large Lot Rural Residential (RR5)
 Medium Lot Rural Residential (RR2)
 Rural Residential (RR1)
 Suburban Residential (RS)
 Low Density Residential (RL)
 Medium Density Residential (RM)
 High Density Residential (RH)
 Very High Density Residential (RVH)
 Central Business District (CBD)
 Neighborhood Commercial (CN)
 General Commercial (CG)
 Highway Visitor Commercial (CH)
 Office Commercial (CO)
 Heavy Industrial (IH)
 Light Industrial (IL)
 Parks and Recreation (PR)
 Agriculture (A)
 Open Space (OS)
 Public Facilities and Services (PF)
These land use designations are implemented by the City’s zoning regulations established by the Inland Land Use and Development Code provided in Chapter 18 of the Fort Bragg Municipal Code and Zoning Map.

The City’s current zoning designations including both coastal and inland include the following general categorizations of zones:

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 8 Zone Type
Geographic
Coverage
Commercial 16%
Industrial 28%
Residential 35%
Open Space, parks,
rec 11%
Public Facilities 9%
The following table shows the total square footage of each zone and the percentage of that zone located in the coastal zone versus the inland zone:

Zone Total Area
(sq ft) Inland % Coastal %
Central Business District 2,212,699 70% 30%
General Commercial 4,091,909 47% 53%
Highway Visitor
Commercial 4,550,241 24% 76%
Neighborhood
Commercial 293,009 100% 0%
Office Commercial 1,525,708 0% 100%
Light Industrial 2,069,224 90% 10%
Heavy Industrial 2,433,546 40% 60%
Timber Resources
Industrial 18,210,066 0% 100%
Very High Density
Residential 5,669,689 66% 34%
High Density Residential 2,718,734 25% 75%
Medium Density
Residential 2,951,830 85% 15%
Low Density Residential 16,473,745 83% 17%
Suburban Residential 478,664 59% 41%
Open Space 5,186,303 59% 41%
Parks and Recreation 3,938,721 11% 89%
Public Facilities and
Services 6,923,696 80% 20%
Harbor District 179,265 0% 100%
Regulatory Setting for Commercial Cannabis Cultivation
The regulatory environment for cannabis is complex. In 1937, the federal government enacted the Marihuana Tax Act which did not prohibit cannabis, but instead instituted a heavy tax. With the onset of the “war on drugs, Congress enacted the Comprehensive Drug Abuse Prevention and Control Act of 1970 which included Title II, the Controlled Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 9 Substances Act (CSA). This legislation established five schedules for controlled substances. It was under this act that cannabis was listed as a Schedule I Narcotic. (League of California Cities, 2021)
Cannabis is still considered a Schedule 1 Narcotic at the Federal Level, which limits the industry’s ability to bank and participate in certain aspects of the financial system.

Despite legalization, the CSA is still enforceable in California. Enforcement of the CSA has been dependent on the leadership of the executive administration. For example, the Cole Memo was issued by the Department of Justice in 2013. It provided policy guidance on where to focus federal enforcement and directed enforcement away from operations legalized by states. However, in 2018, a memo issued by a new administration under then Attorney General Jeff Sessions rescinded the Cole Memo and removed any “deprioritization” of operations legalized by states. (League of Cities, 2021)
Shortly after the Federal adoption of the CSA, the State of California passed the California Uniform Controlled Substances Act (USCA) in 1972. Article 2 of this legislation set criminal prohibitions and penalties for the possession, cultivation, transportation, and distribution of cannabis. (League of Cities, 2021) In 1996, the voters of California passed the Compassionate Use Act, also known as Proposition 215, which allowed qualified patients and or caregivers to cultivate and or possess cannabis with a written or oral recommendation or approval from a physician.

This act did not decriminalize cannabis. In 2003, the state passed the Medical Marijuana Program Act (MMPA) to provide for the safe and affordable distribution of medical marijuana. (League of Cities, 2021)
In 2015, AB 243, AB 266,and SB 643, cumulatively known as Medical Marijuana Regulation and Safety Act (MMRSA), was passed. The legislation was intended to provide a regulatory framework for the medicinal cannabis industry that would begin in 2018.

In 2016, the Adult-Use Marijuana Act (AUMA) was passed in a general election. AUMA created a regulatory framework for commercial cannabis activities and most notably decriminalized medicinal and recreational use.

In order to harmonize the two codes, the State adopted SB 94, the Medicinal and AdultUse Cannabis Regulation and Safety Act (MACURSA). The act also amended other state codes to include provisions for cannabis, including the Food and Agriculture Code and the Health and Safety Code. (League of Cities, 2021) Commercial Cannabis Cultivation is regulated by the State of California Business and Professions Code Division 10. Cannabis [26000-26260] which is implemented and enforced by the Department of Cannabis Control (DCC). In September of 2021, the DCC adopted updates to the Medical and Adult-Use Commercial Cannabis Regulations California Code of Regulations Title 4 Division 19. Department of Cannabis Control. In order for any business to be able to conduct any type of legal cannabis activity in the City of Fort Bragg, they must get a license from the State of California through the DCC Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 10 and comply with State law and regulations. (DCC, 2022) This includes §16304. General Environmental Protection Measures which says:
(a) All licensed cultivators shall comply with all of the following environmental protection measures:
(1) Principles, guidelines, and requirements adopted pursuant to section 13149 of the Water Code and implemented by the State Water Resources Control Board, Regional Water Quality Control Boards, or California Department of Fish and Wildlife;
(2) Any conditions of licensure included pursuant to section 26060.1(b)(1) of the Business and Professions Code;
(3) Requirements of section 7050.5(b) of the Health and Safety Code if human remains are discovered during cultivation activities;
(4) Requirements for generators pursuant to section 16306; (5) Requirements for pesticides pursuant to section 16307; (6) Outdoor lights used for safety or security purposes are shielded and downward facing; and
(7) Lights used for indoor or mixed-light cultivation are shielded from sunset to sunrise to reduce nighttime glare.

Authority: Section 26013, Business and Professions Code. Reference:

Sections 26013, 26060, 26066 and 26201, Business and Professions Code.

The City of Fort Bragg Municipal Code regulates Cannabis Businesses in Chapter 9.30.

The Code allows for cultivation, processing, manufacturing, distribution, and retail cannabis activity with a discretionary Cannabis Business Permit. Currently, the Coastal Land Use Development Code does not allow cannabis cultivation in the coastal zone, and the proposed changes only apply to the inland zones in Fort Bragg. Commercial cannabis manufacturing is currently allowed in the industrial zones, as is wholesaling and distribution. The proposed amendments to the code will only allow for indoor commercial cannabis cultivation, outdoor commercial cultivation will not be allowed.

The City of Fort Bragg Inland General Plan describes the following Industrial Zones:

Heavy Industrial (IH) -This designation is intended for a range of heavy industrial uses including manufacturing, assembly and processing, and the storage and distribution of raw materials, aggregate plants, and related heavy industrial uses which are generally incompatible with and require locations removed from residential and visitor serving uses.

Light Industrial (IL) - This designation is intended for a variety of commercial, manufacturing, wholesale and distribution, and industrial uses which do not generate a significant amount of on-site customer traffic or high levels of noise, dust, odors, or other potential off-site nuisance characteristics. Manufacturing uses are permitted provided they occur Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 11 within an enclosed structure. Other uses permitted in this designation include offices ancillary to permitted uses, agricultural product sales and services, construction yards, and automobile repair shops.

Furthermore, the Inland General Plan provides the following description of Industrial Land:

The lumber and fishing industries have played an important role in the formation and growth of Fort Bragg. Both of these industries are in transition, and the local economy is evolving from a natural resourcebased economy to a more service-oriented economy. Fort Bragg is the commercial, educational, medical, and professional service center for a large portion of the Mendocino coast. Future growth in the local economy is projected to occur in the retail, tourism, and service sectors.

The Inland General Plan is intended to support the growth and vitality of existing industries while ensuring that the community is prepared to actively participate in the decision-making process as new industries develop in Fort Bragg and as current industrial lands transition to other uses.

The Inland Land Use and Development Code §18.24.010 provides the following purposes for IL and IH which are consistent with the Inland General Plan:

A. IL (Light Industrial) zoning district. The IL zoning district is applied to areas of the City that are appropriate for a variety of commercial, manufacturing, wholesale and distribution, and industrial uses that do not generate significant customer traffic or high levels of noise, dust, odors, or other potential off-site nuisance characteristics. Allowable manufacturing uses and activities must be entirely within enclosed structures. The maximum floor area ratio (FAR) is 0.40. The IL zoning district implements and is consistent with the IL land use designation of the General Plan.

B. IH (Heavy Industrial) zoning district. The IH zoning district is applied to areas of the City that are appropriate for a range of heavy industrial including manufacturing, assembly and processing, the storage and distribution of raw materials, aggregate plants, and related industrial uses that are generally compatible with and require locations removed from residential and visitor serving uses. The maximum floor area ratio (FAR) is

0.40. The IH zoning district implements and is consistent with the IH land use designation of the General Plan.

As stated in §9.30.140(A) of the City’s Municipal Code, Commercial cannabis shall be cultivated only in a fully enclosed and secured structure (FESS). Commercial cannabis cultivation that occurs within a greenhouse that meets the criteria for a FESS shall not be visible from any public right-of-way.

Commercial indoor cultivation of cannabis shall be fully contained in indoor sites. This type of cultivation is consistent with the purpose and currently allowable activities in industrial zones. It is comparable with other permissible uses (no conditional permit Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 12 required) for which industrial zoned land could be developed. For example, both fish processing is permitted by right in both Industrial Light and Industrial Heavy Zones as is light manufacturing (defined in the Inland Land Use and Development Code Chapter 10):

Manufacturing/Processing - Light. A facility accommodating manufacturing processes involving and/or producing: apparel; food and beverage products; electronic, optical, and instrumentation products; ice; jewelry; and musical instruments. Light manufacturing also includes other establishments engaged in the assembly, fabrication, and conversion of already processed raw materials into products, where the operational characteristics of the manufacturing processes and the materials used are unlikely to cause significant impacts on surrounding land uses or the community. Also includes cannabis manufacturing and processing facilities with similar operational characteristics to the examples below... (see ATTACHMENT D ILUDC §18.100.020 Definition for Manufacturing for complete definition.) ILUDC Chapter 18.72 Environmental Impact Assessment and Mitigation Monitoring implements the requirement to CEQA by providing the City with criteria, objectives, principles, and procedures for applying the requirements of CEQA to proposed projects. §18.72.040 notes that the chapter is not intended to replace CEQA, and full compliance with CEQA is required regardless of the provisions of the chapter.

This confirms that any project involving cannabis, which requires a cannabis business permit, is a discretionary action and subject to CEQA §21080(a) which states that:
“Except as otherwise provided in this division, this division shall apply to discretionary projects proposed to be carried out or approved by public agencies, including, but not limited to, the enactment and amendment of zoning ordinances, the issuance of zoning variances, the issuance of conditional use permits, and the approval of tentative subdivision maps unless the project is exempt from this division.”
Local Regulatory Setting for Retail and Microbusiness
The proposed amendments to cannabis retail do not change what activities are allowable, but rather makes minor modifications to existing regulations for cannabis business activities in commercial zones. While the proposed changes create a definition for a cannabis microbusiness, the original intention of the existing code was to allow this activity. The current Accessory Use description in the ILUDC §18.42.057(E) states:

Accessory uses. As defined in Article 10, accessory uses are customarily incidental to, related and clearly subordinate to a primary use on the same parcel, which does not alter the primary use. Uses accessory to cannabis retail facilities may be allowable pursuant to the permitting requirements in Article 2. Accessory uses may include activities that require multiple State cannabis licenses, including, but not limited to, manufacturing, distribution, cultivation and/or processing. In no instance shall cannabis manufacturing using volatile solvents be allowable as uses accessory to cannabis retail uses.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 13 The proposed modification to accessory uses does not change which uses are allowed but clarify the regulation of these uses. The proposed revisions to the accessory use definition as forth in §18.42.057(C) (formerly (E)) states:

Accessory uses. As defined in Article 10, an accessory use is customarily incidental to, related and clearly subordinate to a primary use, on the same parcel, which does not alter the primary use as defined in Article 10. A cannabis business with more than one accessory use, or with another use that does not qualify as accessory, shall be considered a microbusiness and subject to section 18.42.058. A retail business may still be considered retail with two accessory uses only if one of the uses is “onsite distribution” as defined in Article 10. Accessory uses are determined by the definitions in Article 10.

1. The following uses are allowable as accessory uses to cannabis retail:

Zone Allowable Accessory Uses
Central Business District Nursery (non-flowering) cultivation; Artisan/craft manufacturing of cannabis
products;
Retail Delivery;
On-Site Distribution;
Highway Visitor
Commercial
Nursery (non-flowering) cultivation;
Processing;
Manufacturing (non-volatile);
Distribution and Wholesale;
Retail Delivery;
On-Site Distribution;
General Commercial Nursery (non-flowering) cultivation; Processing;
Distribution and Wholesale;
Manufacturing (non-volatile);
Retail Delivery;
On-Site Distribution;

2. In no instance shall cannabis manufacturing using volatile solvents be allowable as an accessory use to cannabis retail.

The definition for “on-site distribution” is proposed for Article 10 as:

On-Site Distribution. The movement of cannabis products from either nursery cultivation, processing, or manufacturing conducted on-site to a licensed retail-cannabis operation at the same site. Cannabis sold wholesale or distributed to offsite retail is classified under wholesale and distribution.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 14 The uses are the same, so there are no new uses, the change in the section provides clarifications. The allowable accessory uses remain unchanged, rather the language is more detailed to provide necessary clarification.

In addition to clarifying the difference between a retail business with accessory uses and a cannabis microbusiness, the conditional use permit requirements originally established in §18.42.057 Cannabis Retail would be relocated to Municipal Code Chapter 9.30 Cannabis Businesses. The change reflects the fact that Cannabis Business Permits (CBP) have to be renewed annually, whereas a land use permit runs with the land in perpetuity. The relocation of this criteria does not change the existing regulations, but instead changes where they are applied and further protects the public by including these requirements in the annual inspection. By moving the regulations to Chapter 9.30, the City is better able to monitor and enforce operating standards and ensure that projects are following the rules established to protect the health and safety of the public.

Additionally, there have been two retail cannabis dispensaries approved in the City of Fort Bragg. Neither of the existing dispensaries have had impacts on the surrounding area. As reported to Community Development staff by the staff of the Police Department, there have been no elevated reported complaints, calls for service, or otherwise increased demands for city services relative to other types of businesses. The presence of the existing cannabis dispensaries demonstrate compatibility with the general plan designation and zoning for commercial activity.

The addition of §18.42.058 Cannabis Microbusinesses creates regulations for cannabis businesses in commercial and industrial zones. While this is a new classification, all uses are already in the code under Section 18.42.057(E) for retail, with the exception of the classification for industrial zones where mature cannabis cultivation is allowed. The difference, as mentioned above, is the distinction between retail with an accessory use and a microbusiness. A microbusiness may allow for a greater portion of a commercial building to be used for non-retail cannabis activity, but it also requires that there is a primary retail frontage and that the microbusiness shall not create significant noise, odor, traffic, or any other kind of public nuisance. These regulations ensure that the non-retail components of a retail cannabis business or microbusiness will not have impacts on the zone or create compatibility issues.

The proposed project will amend the City of Fort Bragg’s Municipal Code Chapter 9.30 Cannabis Businesses, and Chapter 2, Chapter 4, and Chapter 10 of the Inland Land Use and Development Code to regulate commercial cannabis cultivation in the City of Fort Bragg and to make minor modifications to existing regulations for cannabis business activities in commercial zones. It will not change the physical nature (size or location) of the zones where the uses are currently or would be allowed under the proposed municipal code amendment. This project does not propose any changes to the standards established to protect the health and safety of the public, or the environment, and it does not propose any physical development.

References
Association of Environmental Professionals. (2021). 2021 California Environmental Quality Act Statute & Guidelines. AEP.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 15 California Department of Cannabis Control. Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19.

September, 2021.

City of Fort Bragg Title 18 Inland Land Use and Development Code. March, 2014.

City of Fort Bragg, Inland General Plan. 2013
City of Fort Bragg. (2021, December). Municipal Code. City of Fort Bragg. Retrieved from https://www.codepublishing.com/CA/FortBragg/#!/FortBraggNT.html City of Fort Bragg. Zoning Map. 2016
League of California Cities. (2021, September). Seed to Sale: A Guide to Regulating Cannabis in California Cities. Sacramento, CA.

US Fish and Wildlife Service (2022, January 7). IPaC Resource List. Retrieved from:
https://ecos.fws.gov/ipac/location/PUQUU2RY6VBSHEYTA7KLYSNVQM/resources Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 16 ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED:

The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a “Potentially Significant Impact” as indicated by the checklist on the following pages.
☐ Aesthetics ☐ Agriculture and Forestry
Resources
☐ Air Quality
☐ Biological Resources ☐ Cultural Resources ☐ Energy
☐ Geology /Soils ☐ Greenhouse Gas
Emissions
☐ Hazards & Hazardous
Materials
☐ Hydrology / Water
Quality
☐ Land Use / Planning ☐ Mineral Resources
☐ Noise ☐ Population/Housing ☐ Public Services
☐ Recreation ☐ Transportation ☐ Tribal Cultural
Resources
☐ Utilities Service
Systems
☐ Wildfire ☐ Mandatory Findings of
Significance
DISCUSSION:
(See following document)
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 17 DETERMINATION:

On the basis of this initial evaluation:
☒ I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. ☐ I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared.
☐ I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required.
☐ I find that the proposed project MAY have a “potentially significant impact” or “potentially significant unless mitigated” impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. ☐ I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required.

February 17, 2022
Signature Date
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 18

TABLE OF CONTENTS
Aesthetics...................................................................................................................... 20 Agricultural and Forestry Resources ............................................................................. 23 Air Quality...................................................................................................................... 29 Biological Resources..................................................................................................... 34 Cultural Resources........................................................................................................ 43 Energy........................................................................................................................... 50 Geology and Soils ......................................................................................................... 54 Greenhouse Gases ....................................................................................................... 64 Hazards and Hazardous Materials ................................................................................ 68 Hydrology and Water Quality ........................................................................................ 74 Land Use and Planning................................................................................................. 85 Mineral Resources ........................................................................................................ 93 Noise............................................................................................................................. 95 Population and Housing ................................................................................................ 98 Public Services............................................................................................................ 101 Recreation................................................................................................................... 105 Transportation ............................................................................................................. 107 Tribal Cultural Resources............................................................................................ 113 Utilities and Service Systems ...................................................................................... 116 Wildfire ........................................................................................................................ 121 Mandatory Findings of Significance............................................................................. 128 Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 19 List of Figures
Figure 1: City of Fort Bragg Zoning Map ......................................................................... 3 Figure 2: Inland Industrial and Commercial Zones in the City of Fort Bragg ................. 26 Figure 3: Industrial Zones and Important Farmland ...................................................... 27 Figure 4: Inland General Plan Map OS-2 ...................................................................... 39 Figure 5: Critical Habitat In the City of Fort Bragg......................................................... 42 Figure 6: Geologic Map of the City of Fort Bragg .......................................................... 56 Figure 7: Earthquake Shaking Potential Map ................................................................ 57 Figure 8: California Landslide Inventory Map in Fort Bragg .......................................... 58 Figure 9: Inland General Plan Map SF-1 Geologic Hazards ......................................... 62 Figure 10: 303d Listed Waterways in the City of Fort Bragg ......................................... 76 Figure 11: Flood Risk Map of the City of Fort Bragg ..................................................... 77 Figure 12: Inland General Plan Map SF-3 Tsunami Inundation Map ............................ 78 Figure 13: Inland General Plan Map LU-1 Land Use Designations............................... 87 Figure 14: City of Fort Bragg Land Use Zoning Map..................................................... 88 Figure 15: Map of Public Facilities in the City of Fort Bragg........................................ 104 Figure 16: Inalnd General Plan Map C-1 Existing Roadway System .......................... 109 Figure 17: High Risk Fire Zones in the City of Fort Bragg ........................................... 123 Figure 18: California Public Utilities Commission High Fire Threat Map ..................... 124 Figure 19: City of Fort Bragg Evacuation Map ............................................................ 125 Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 20 Aesthetics
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
I. AESTHETICS. Except as provided in
Public Resources Code Section 21099,
would the project:
a) Have a substantial adverse effect on a
scenic vista?
☐ ☐ ☐ ☒
b) Substantially damage scenic
resources, including, but not limited to,
trees, rock outcroppings, and historic
buildings within a state scenic highway?
☐ ☐ ☐ ☒
c) In non-urbanized areas, substantially
degrade the existing visual character or
quality of public views of the site and its
surroundings? (Public views are those
that are experienced from publicly
accessible vantage point). If the project is
in an urbanized area, would the project
conflict with applicable zoning and other
regulations governing scenic quality?
☐ ☐ ☐ ☒
d) Create a new source of substantial
light or glare which would adversely affect
day or nighttime views in the area?
☐ ☐ ☒ ☐
Regulatory Setting
Visual character is a description (not evaluation) of a site, and includes attributes such as form, line, color, and texture. Visual quality is the intrinsic appeal of a landscape or scene due to the combination of natural and built features in the landscape. Visual sensitivity is the level of interest or concern that the public has for maintaining the visual quality of a particular aesthetic resource and is a measure of how noticeable proposed changes might be in a particular scene and is based on the overall clarity, distance, and relative dominance of the proposed changes in the view, as well as the duration that a particular view could be seen.

The State of California’s Public Resources Code §21081.3 (CEQA Statute) provides regulatory authority for the aesthetic impacts of a proposed project. (AEP, 2021) Additionally, for cannabis businesses the Department of Cannabis Control Medicinal and Adult Use Commercial Cannabis Regulations §16304(a)(6,7) require that outdoor Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 21 lights used for safety or security purposes are shielded and downward facing; and lights used for indoor or mixed-light cultivation are shielded from sunset to sunrise to reduce nighttime glare. (DCC, 2021)
The City’s Inland General Plan, Inland Land Use Development Code, and Citywide Design Guidelines provide the regulatory framework for aesthetics. Specifically, the City of Fort Bragg Inland Land Use and Development Code §18.71.050 Design Review provides the regulatory framework for reviewing the visual aspects of a project. The purpose of design review is to ensure that the design of proposed development and new land uses assist in maintaining and enhancing the small-town, coastal, historic, and rural character of the community.

Applications for Design Review must meet the following criteria:

1. Complies with the purpose and requirements of this Section;

2. Provides architectural design, building massing, and scale appropriate to and compatible with the site surroundings and the community;

3. Provides attractive and desirable site layout and design, including building arrangement, exterior appearance and setbacks, drainage, fences and walls, grading, landscaping, lighting, signs, etc.;

4. Provides efficient and safe public access, circulation, and parking;

5. Provides appropriate open space and landscaping, including the use of water efficient landscaping;

6. Is consistent with the General Plan, any applicable specific plan; and

7. Complies and is consistent with the City’s Design Guidelines.

The Citywide Design Guidelines complement the standards contained in the City of Fort Bragg Inland Land Use and Development Code by providing good examples of appropriate design solutions, and by providing design interpretations of the various regulations. The guidelines are less quantitative and rigid than the mandatory development standards of the Development Code, and may be interpreted with some flexibility in the application to specific projects.

Additional regulations for historic features noted in the Cultural Resources section of this document also provide additional regulations that may also regulate aesthetics.

Discussion
The adoption of the proposed ordinances would not change the design guidelines or design review process outlined in the City’s Inland Land Use and Development Code

18.71.050, which is intended to ensure that the design of proposed development and redevelopment maintain and compliment the small-town, coastal, historic, and rural character of the community. Under the proposed code amendments, a new cannabis business that proposes to construct a new structure will be subject to design review and the design guidelines. If a cannabis business proposes substantial changes to the exterior of an existing building it will also be subject to design review. The proposed code specifies that the cultivation of cannabis must take place in a fully enclosed and secure structure and cannabis shall not be visible from a public right of way, and the Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 22 cultivation should not appear any different from other buildings in the same district as it will have to conform to the design guidelines or be an already existing structure.

The City’s design review process requires adherence to established design guidelines and provides that the review authority can support findings demonstrating conformance with identified project review criteria. Therefore, the proposed changes to the Inland Land Use and Development Code, establishing regulation for Cannabis Cultivation, will not have a significant impact on the aesthetics of the City of Fort Bragg.

In order to reduce energy uses, some future CBP applications may propose to do a mixed-light cultivation allowing natural light to enter via a greenhouse style ceiling, clearstory, or skylights. This type of architectural design allows for indoor spaces to be readily viewable from outside, and could potentially result in “light pollution” at night if indoor lighting is used past sunset. CBP applications proposing a mixed light cultivation, will be required to address lighting through the plan review process to ensure that the project does not result in light or glare that will impact nighttime views resulting in significant environmental impacts per the CEQA Statute §21081.3(a)(5).

Each cannabis business application will be reviewed under the City’s Design Review process which includes regulations on “outdoor lighting” in ILUDC §18.30.070. Further, all future proposed cannabis cultivations are subject to a conditional use permit, which is a fully discretionary process and will be subject to CEQA including an analysis of the individual project to determine whether it will adversely affect day or nighttime views in the area. Of consideration will be the proposed lighting plan including the use of artificial lights in operations, the type of lighting, and the extent of lighting. If a future Cannabis Cultivation application has the potential to conflict with the City’s outdoor lighting regulation, it would be considered a potentially significantly impact due to excessive light pollution, and the project application would be required to be revised and mitigation imposed. The effectiveness of the mitigation addressing light pollution on a future CBP application would be assessed at that time. Applications that comply with the City’s outdoor lighting standards would result in less than significant impacts due to light pollution.

The proposed change in the Inland Land Use and Development Code establishes regulation for commercial cannabis cultivation uses in the industrial zones and makes minor modifications to the existing regulations for cannabis business activity in the commercial zones. The new language does not alter or otherwise change the City’s policies regarding lighting and screening of new development including cannabis cultivation projects. Therefore, adoption of the proposed ordinances will have a less than significant impact on the aesthetics of the City of Fort Bragg.

References
Association of Environmental Professionals (AEP). (2021). 2021 California Environmental Quality Act Statute & Guidelines.

California Department of Cannabis Control. Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19.

September, 2021.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 23 City of Fort Bragg “Title 18 Inland Land Use and Development Code.” March, 2014.

City of Fort Bragg, “Citywide Design Guidelines.” July, 2004.

City of Fort Bragg, “Inland General Plan: Element 6 – Community Design.” 2013 City of Fort Bragg, (2021, November). Municipal Code Chapter 9.30 Cannabis Businesses. Retrieved from:
https://www.codepublishing.com/CA/FortBragg/#!/FortBragg09/FortBragg0930.ht ml#9.30
California Department of Cannabis Control. Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19.

September, 2021.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 24 Agricultural and Forestry Resources
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
II. AGRICULTURE AND FORESTRY
RESOURCES. In determining whether
impacts to agricultural resources are
significant environmental effects, lead
agencies may refer to the California
Agricultural Land Evaluation and Site
Assessment Model (1997) prepared by
the California Dept. of Conservation as an
optional model to use in assessing
impacts on agriculture and farmland. In
determining whether impacts to forest
resources, including timberland, are
significant environmental effects, lead
agencies may refer to information
compiled by the California Department of
Forestry and Fire Protection regarding the
state’s inventory of forest land, including
the Forest and Range Assessment
Project and the Forest Legacy
assessment project; and forest carbon
measurement methodology provided in
Forest Protocols adopted by the
California Air Resources Board. Would
the project:
a) Convert Prime Farmland, Unique
Farmland, or Farmland of Statewide
Importance (Farmland), as shown on the
maps prepared pursuant to the Farmland
Mapping and Monitoring Program of the
California Resources Agency, to nonagricultural use?
☐ ☐ ☐ ☒
b) Conflict with existing zoning for
agricultural use, or a Williamson Act
contract?
☐ ☐ ☐ ☒
c) Conflict with existing zoning for, or
cause rezoning of, forest land (as defined
in Public Resources Code section
12220(g)), timberland (as defined by
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 25 Public Resources Code section 4526), or
timberland zoned Timberland Production
(as defined by Government Code section
51104(g))?
d) Result in the loss of forest land or
conversion of forest land to non-forest
use?
☐ ☐ ☐ ☒
e) Involve other changes in the existing
environment which, due to their location
or nature, could result in conversion of
Farmland, to non-agricultural use or
conversion of forest land to non-forest
use?
☐ ☐ ☐ ☒
Regulatory Setting
The cultivation of cannabis was originally regulated by the California Department of Food and Agriculture (CDFA). In 2021, CDFA’s CalCannabis program merged with the Bureau of Cannabis Control to form the Department of Cannabis Control. In September of 2021, updates to the California Code of Regulations for Medicinal and Adult-Use Commercial Cannabis (CCR Title 4 Division 19) were published. The statutory authority for the regulation of cannabis cultivation is under the California Business and Professions Code Division 10 [26000-26260], which is implemented under CCR Title 4, Division 19. (DCC, 2021)
Discussion
The inland industrial and commercial zones of Fort Bragg are presented in Figure 2 below. There are no forest lands nor timberland production zones in the Inland Zone.

While agriculture is allowed in all zones of the City, none of the industrial lands are designated as “Prime Farmland” and none are currently under agricultural uses. There are no sites in the City of Fort Bragg that are covered under the Williamson Act.

In the event that a cannabis business is proposed for development on a vacant parcel, it would be subject to all application regulations and review under CEQA, which would include an assessment of potential impacts on farmland and forestland. The City relies on the State of California Department of Land Conservation Mapping tool to determine if a site contains important farmland and/or forestland.

Figure 3 shows the City of Fort Bragg industrial zones in the Inland Zone of Fort Bragg with the California Department of Conservation’s Important Farmland Layer from 2018. (Department of Conservation, 2022) There are two classifications in these areas; urban/built up land and land on which the existing vegetation is suited to the grazing of livestock. While there are some portions of the industrial zone which the State indicates as suitable livestock cultivation, this is not an allowable use in the industrial zone so there is no conflict. The commercially zoned parcels in the Inland Zone are considered urban/built up.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 26 Figure 2: Inland Industrial and Commercial Zones in the City of Fort Bragg Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 27 Figure 3: Industrial Zones and Important Farmland
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 28 The proposed change in the Inland Land Use and Development Code establishes regulation for cannabis cultivation uses in the industrial zones and makes minor modifications to uses that are currently allowable in commercial zones. The proposed change in code does not in and of itself impact agricultural or forestland and because new cannabis cultivation projects are limited to industrially zoned properties, which do not have prime agricultural or forestlands and the proposed changes do not change the size or location of industrial or commercial zones nor propose any physical development. Therefore, the proposed amendments to the Inland Land Use and Development Code will have no impact on agricultural or forestlands.

References
California Department of Conservation - CA Farmland Conservancy.(2021, August 30) California Important Farmland Finder. Retrieved from:
https://maps.conservation.ca.gov/DLRP/CIFF/
California Department of Cannabis Control. Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19.

September, 2021.

City of Fort Bragg Zoning Map, 2016.

City of Fort Bragg “Title 18 Inland Land Use and Development Code.” March, 2014.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 29 Air Quality
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
III. AIR QUALITY. Where available, the
significance criteria established by the
applicable air quality management district
or air pollution control district may be
relied upon to make the following
determinations. Would the project:
a) Conflict with or obstruct
implementation of the applicable air
quality plan?
☐ ☐ ☐ ☒
b) Result in a cumulatively considerable
net increase of any criteria pollutant for
which the project region is non-attainment
under an applicable federal or state
ambient air quality standard?
☐ ☐ ☐ ☒
c) Expose sensitive receptors to
substantial pollutant concentrations?
☐ ☐ ☐ ☒
d) Result in other emissions (such as
those leading to odors) adversely
affecting a substantial number of people?
☐ ☐ ☐ ☒
Regulatory Setting
On the federal level, the Clean Air Act (CAA) and the 1990 CAA Amendments govern air quality in the United States and are administered by the Environmental Protection Agency (EPA). The EPA sets limits on concentrations of certain air pollutants and places limits on emission sources. Additionally, the EPA has established National Ambient Air Quality Standards (NAAQS) for six major air pollutants, known as criteria air pollutants including Ozone, Particulate Matter (PM10 and PM 2.5), carbon monoxide, nitrogen dioxide, sulfur dioxide, and lead.

The federal government also sets national emission standards for hazardous air pollutants in Title 40 of the Code of Federal Regulations Part 61 and Part 63. These standards regulate 194 hazardous air pollutants.

Corporate Average Fuel Economy Standards regulate car manufacturers and require that they meet established gas mileage and fuel economy standards that are set by the National Highway Traffic Safety Administration.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 30 The California Ambient Air Quality Standards (CAAQS) are the California state equivalent of the NAAQS. An air basin is in “attainment” (compliance) when the levels of the pollutant in that air basin are below NAAQS and CAAQS thresholds shown in the table below.

Table 0-1. NAAQS and CAAQS
Pollutant

NAAQS CAAQS
Averaging time Concentration
Threshold Averaging time Concentration Threshold
Carbon monoxide
(CO)
8 hours 9 ppm 8 hours 0.09 ppm
1 hour 35 ppm 1 hour 0.070 ppm
Lead (Pb) Rolling 3-month
average

0.15 μg/m3 1.5 hour 0.15 μg/m3
Nitrogen dioxide
(NO2)
1 hour 100 ppb 1 hour 0.18 ppm
1 year 53 ppb Annual mean 0.030 ppm
Ozone (O3) 8 hours 0.070 ppm 8 hours 0.09 ppm
1 hour 0.070 ppm
Particulate
matter
(PM)
PM2.5
1 year 12.0 μg/m3 Annual mean 12.0 μg/m3
24 hours 35 μg/m3 n/a n/a
PM10 24 hours 150 μg/m3
24 hours 50 μg/m3
Annual mean 20 µg/m3
Sulfur dioxide (SO2)
1 hour 75 ppb 1 hour 0.25 ppm
3 hours 0.5 ppm 24 hours 0.04 ppm
Visibility reducing
particles n/a n/a 9 hours Extinction of 0.23 per kilometer Sulfates n/a n/a 24 hours 25 µg/m3
Hydrogen sulfide n/a n/a 1 hour 0.03 ppm
Vinyl chloride n/a n/a 24 hours 0.01 ppm
Source:USEPA, 2016; CARB, 2020
ppm = parts per million, ppb = parts per billion, µg/m3 = micrograms per cubic meter, n/a = not applicable Additionally, at the State level, the California Air Resource Board is responsible for implementing the CCAA and other air quality regulations which include:
 Truck and Bus Regulation
 Commercial Vehicle Idling Regulation
 Heavy-Duty On-Board Diagnostic System Regulations
 Heavy-Duty Vehicle Inspection Program
 California Standards for Diesel Fuel Regulations
 In-Use Off-Road Diesel Vehicle Regulation
 Assembly Bill 1803 which establishes a two-step process of risk identification and risk management to address the potential health effects from airborne toxic substances.
 Portable Engine Airborne Toxic Control Measure
 Portable Equipment Registration Program
 California Toxic Air Containment Act
 California Department of Pesticide Regulation Air Program Activities The City of Fort Bragg is located within the North Coast Air Basin (NCAB) and is under the jurisdiction of the Mendocino County Air Quality Management District (MCAQMD).The MCAQMD is responsible for enforcing federal and state air quality Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 31 standards and establishes CEQA thresholds for Mendocino County and local jurisdictions within the County, including the City of Fort Bragg.

Mendocino County is currently in non-attainment for the State PM10 standard (particulate matter less than 10 microns in size) (CARB, 2019). The primary manmade sources of PM10 pollution in the County are from wood combustion (woodstoves, fireplaces and outdoor burning), fugitive dust, automobile traffic and industry (Mendocino County, 2021). Both the NCAB and Mendocino County are in attainment for all other State and Federal criteria air pollutants (US EPA 2016; CARB, 2020).

In addition to the Federal, State, and County regulations, air quality is also addressed in the City’s Open Space Element of the Inland General Plan which includes the following policy and associated programs:

Open Space Goal OS-7 Policy OS-7.2 Air Quality Standards: Seek to comply with State and Federal standards for air quality
Open Space Goal OS-7 Policy OS-7.2 Program OS-7.2.1 Review new project proposals for consistency with MCAQMD regulations and guidelines
Open Space Goal OS-7 Policy OS-7.2 Program OS-7.2.2 Work with the Mendocino County Air Quality Management District to ensure that all new industrial projects include Best Available Control Technologies (BACTs) to control emissions of air pollutants to the maximum extent permitted by law.

Open Space Goal OS-7 Policy OS-7.2 Program OS-7.2.4 Prohibit unpaved driveways of more than 50 feet and unpaved roads in all new development.

Furthermore, odors are regulated in the City by ILUDC §18.30.080(J) which says: No obnoxious odor or fumes shall be emitted that are perceptible without instruments by a reasonable person at the property line of the site. The existing Municipal Code §9.30.050(N)(8) requires that applicants for a CBP submit an odor prevention plan, illustrating how the cannabis business will be consistent with § 17.30.080(J) and/or §

18.30.080(J). The odor prevention plan may include an odor absorbing ventilation and exhaust system or other measures to ensure the use does not produce odors which are disturbing to people of normal sensitivity residing or present on adjacent or nearby property or areas open to the public.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 32 All future proposed cannabis cultivation projects would require a Cannabis Business Permit and be subject to discretionary review to determine if it would conflict with or obstruct the implementation of an applicable air quality plan or result in cumulatively considerable net increase of any criteria air pollutant for which the project region is nonattainment under an applicable federal or state ambient air quality standard.

When the City receives a discretionary project application, the project is sent for review to the MCAQMD for comments. Additionally, if an initial study is required and an air quality analysis warranted, construction and operational emissions are estimated using an acceptable modeling program, such as the California Emissions Estimator Model (CalEEMod). The results of the air quality modeling is used to determine if a proposed project would result in air quality impacts. The MCAQMD published “Adopted Air Quality CEQA Thresholds of Significance” on June 2, 2010 (see Attachment E). The City uses these thresholds to determine if discretionary projects would have an impact on air quality and would apply this same review process to discretionary actions under the proposed ordinances including all CBP applications.

Furthermore, if a proposed CBP application was found to have the potential to create substantial concentrations of either criteria air pollutants or Hazardous Air Pollutants, the project would be assessed to determine if it would expose sensitive receptors to substantial pollutant concentrations.

The City of Fort Bragg’s Inland General Plan defines Sensitive Receptors as:
“Members of the population who are most sensitive to air quality include children, the elderly, the acutely ill, and the chronically ill. The term "sensitive receptors" can also refer to the land use categories where these people live or spend a significant amount of time. Such areas include residences, schools, playgrounds, child care centers, hospitals, retirement homes, and convalescent homes.” The existing Municipal Code Section 9.30.050(N)(8) requires that applicants for Cannabis Business Permits provide an odor prevention plan that shows how the project will comply with Chapter 18.30.080(J) which states “No obnoxious odor or fumes shall be emitted that are perceptible without instruments by a reasonable person at the property line of the site.” Any project that does not comply would be subject to the City’s Municipal Code for Nuisances, Chapter 6.12. Additionally, the proposed changes to Section 18.42.055(B)(4) includes the following language:

Cannabis cultivations shall use the best available technology to ensure odors are not detected on adjacent or nearby property or areas open to the public.

The introduction of a new conditionally allowable use for cannabis cultivation in the industrial zone, in and of itself will not result in new or more severe impacts to the air quality of the area because it does not include any physical development and the conditional uses would be subject to all federal, state, and local air quality regulations.

Therefore, the proposed amendments to the municipal code including the addition of commercial cannabis cultivation as a conditionally allowable use to the industrial zones and minor modifications to the existing regulations for cannabis activity in the commercial zones will have no impact to air quality.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 33 References
California Air Resources Board, (2022, January). The California Air Resources Board.

Retrieved from: https://ww2.arb.ca.gov/homepage
City of Fort Bragg, Inland General Plan. 2013.

City of Fort Bragg, Inland Land Use and Development Code. 2013.

Environmental Protection Agency. (2022, January) Laws and Regulations. Retrieved from: https://www.epa.gov/laws-regulations
Mendocino County Air Quality Management District. Particulate Matter Attainment Plan.

January, 2005.
http://www.co.mendocino.ca.us/aqmd/pdf_files/Attainment%20Plan_DRAFT.pdf Mendocino County Air Quality Management District. (2021, November 30) Air Quality Setting for Environmental Documents. Retrieved from:
http://www.co.mendocino.ca.us/aqmd/pdf_files/AQSetting.pdf Mendocino County Air Quality Management District. Adopted Air Quality Thresholds of Significance. June 2, 2010.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 34 Biological Resources
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
IV. BIOLOGICAL RESOURCES:

Would the project:
a) Have a substantial adverse effect,
either directly or through habitat
modifications, on any species identified
as a candidate, sensitive, or special
status species in local or regional plans,
policies, or regulations, or by the
California Department of Fish and Game
or U.S. Fish and Wildlife Service?
☐ ☐ ☐ ☒
b) Have a substantial adverse effect on
any riparian habitat or other sensitive
natural community identified in local or
regional plans, policies, regulations or by
the California Department of Fish and
Game or US Fish and Wildlife Service?
☐ ☐ ☐ ☒
c) Have a substantial adverse effect on
state or federally protected wetlands
(including, but not limited to, marsh,
vernal pool, coastal, etc.) through direct
removal, filling, hydrological interruption,
or other means?
☐ ☐ ☐ ☒
d) Interfere substantially with the
movement of any native resident or
migratory fish or wildlife species or with
established native resident or migratory
wildlife corridors, or impede the use of
native wildlife nursery sites?
☐ ☐ ☐ ☒
e) Conflict with any local policies or
ordinances protecting biological
resources, such as a tree preservation
policy or ordinance?
☐ ☐ ☐ ☒
f) Conflict with the provisions of an
adopted Habitat Conservation Plan,
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 35 Natural Community Conservation Plan, or
other approved local, regional, or state
habitat conservation plan?
Regulatory Setting
At the federal level, the Endangered Species Act of 1973 provides regulations for the conservation of species that are endangered or threatened throughout all or a significant portion of their range. It also protects the habitat of threatened or endangered species. The Migratory Bird Treaty Act (MBTA) provides additional protections for migratory birds. (USFW, 2022)
At the state level, the California Endangered Species Act (CESA) created the policy that State agencies should not approve projects that would jeopardize the continued existence of a species listed under CESA as endangered or threatened or result in the destruction or adverse modification of habitat essential to the continued existence of those species, if reasonable and prudent alternatives are available consistent with conserving the species or its habitat that would prevent jeopardy. (CDFW, 2022) Sensitive biological communities include habitats that fulfill special functions or have special values, such as wetlands, streams, or riparian habitat. These habitats may be protected under federal regulations such as the Clean Water Act; state regulations such as the Porter-Cologne Act, and the California Department of Fish and Wildlife (CDFW) Streambed Alteration Program. Other sensitive biological communities include habitats that fulfill special functions or have special values. Natural communities considered sensitive are those identified by CDFW. CDFW ranks sensitive communities as “threatened” or “very threatened” and keeps records of their occurrences in its California Natural Diversity Database (CNDDB). Sensitive plant communities are also provided in list format by CDFW. CNDDB vegetation alliances are ranked 1 through 5 based on NatureServe’s methodology, which those alliances ranked globally (G) or statewide (S) with status of 1 through 3 considered to be of special concern as well as imperiled.

On the local level, the City of Fort Bragg Inland General Plan has the following policies that address biotic resources:

Land Use Goal LU-5 Support industrial development which is consistent with the protection, enhancement, and restoration of natural and scenic resources.

Land Use Goal LU-5 Policy LU-5.1 Siting New Industrial Development: Site new industrial development so that it is contiguous with, or in close proximity to, existing developed areas able to accommodate it, or where such areas are not able to accommodate it, in other areas with adequate public services and where it will not have significant adverse effects on natural and scenic resources, either individually or cumulatively.

Land Use Goal LU-5 Policy LU-5.2 Industrial Land Use Standards: Require that industrial development avoid or minimize creating substantial pollution, noise, glare, dust, odor, or other significant adverse impacts.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 36 Land Use Goal LU-5 Policy LU-5.2 Program LU-5.2.1: Continue to enforce, and revise as needed, Inland Land Use and Development Code standards with regard to noise, glare, dust, odor, and other potentially adverse impacts of industrial activity.

Open Space Goal OS-1 Policy OS-1.2 Preserve Natural Resources: Require that sensitive natural resources in Special Review Areas be preserved and protected to the maximum degree feasible.

Open Space Goal OS-1 Policy OS-1.2 Program OS-1.2.1: Review projects requesting discretionary approvals to determine whether the project is located in an area with potentially sensitive natural resources.

Open Space Goal OS-1 Policy OS-1.3 Biological Report Required for Special Review Areas:

Permit applications for development within or adjacent to Special Review Areas which have the possibility of containing sensitive habitat shall include a biological report prepared by a qualified biologist which identifies the resources and provides recommended measures to ensure that the requirements of CEQA, the Department of Fish and Wildlife, and the City of Fort Bragg’s Inland General Plan are fully met. The required content of the biological report is specified in the Inland Land Use and Development Code.

Open Space Goal OS-1 Policy OS-1.4 Maintain Open Space: Require site planning and construction to maintain adequate open space to permit effective wildlife corridors for animal movement between open spaces.

Open Space Goal OS-2: Program OS-2.4.1 Establish a tree planting and replacement program to assure continuing stands of trees throughout the City.

Open Space Goal OS-2: Policy OS-2.1 Native Landscaping: All development shall be conditioned to require that 50% of all plantings are native plants and shall prohibit the planting of any plant species that is (a) listed as problematic and/or invasive by the California Invasive Plant Council, and/or by the State of California, or (b) listed as a ‘noxious weed’ by the State of California or the U.S. Federal Government
Open Space Goal OS-2: Policy OS-2.2 Prohibit Invasive Species: Condition development projects requiring discretionary approval to prohibit the planting of any species of broom, pampas grass, gorse, or other species of invasive non-native plants deemed undesirable by the City
Open Space Goal OS-2: Policy OS-2.3 Preserve Native Vegetation and Trees: To the maximum extent feasible and balanced with permitted use, require that site planning, construction, and maintenance of development preserve existing healthy trees and native vegetation on the site.

Open Space Goal OS-2: Policy OS-2.4 Forested Areas: Maintain existing forested areas and reforest parks and streetscapes with new trees as needed. Projects proposed in forested areas are required to meet the requirements of the Special Review Areas.

Open Space Goal OS-5 Policy OS-5.1 Streams and Creeks: To the maximum extent feasible, preserve, protect, and restore streams and creeks to their natural state.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 37 Open Space Goal OS-5 Policy OS-5.2 Riparian Habitat: Prevent development from destroying riparian habitat to the maximum feasible extent. Preserve, enhance, and restore existing riparian habitat in new development unless the preservation will prevent the establishment of all permitted uses on the property.

Open Space Goal OS-5 Policy OS-5.3 No Net Loss of Wetlands: Ensure no net loss of wetlands, as defined by the U.S. Army Corps of Engineers.

Open Space Goal OS-6 Policy OS-6.4 Maintain and Restore Biological Productivity and Water Quality: Development shall maintain and, where feasible, restore the biological productivity and the quality of streams and wetlands to maintain optimum populations of aquatic organisms and for the protection of human health.

General Plan Map OS-2 (see Figure 4) identifies wetlands, open space, and areas for water recharge in the City of Fort Bragg. There are some industrial sites along Highway 1 north of Pudding Creek that may have wetland/riparian habitat, but the inland industrial and commercial zoned sites south of Pudding Creek are mostly developed or ruderal.

Additionally, the City’s ILUDC §18.50.050 regulates Special Review Areas: Biologically Sensitive Areas and provides the following General Development Standards:

C. General development standards.

1. Performance standards. All development adjacent to or within Biologically Sensitive Areas shall comply with the following requirements, to the maximum extent feasible.
a. New development shall be designed, sited, constructed, and maintained so as to not significantly disrupt the resource. b. Where feasible, damaged habitats shall be restored as a condition of development approval.
c. Development shall be consistent with the biological continuance of the habitat.

2. Vegetation removal. Existing native vegetation shall not be removed within a Biologically Sensitive Area, as part of a development project, unless authorized through Section 7, 404 permit or CEQA (California Environmental Quality Act) approval to accommodate proposed construction.

3. Landscaping. A landscaping plan shall be submitted to the City for approval prior to construction for any site where development will disturb existing or potential native plant habitat. The plan shall provide for vegetation restoration in compliance with Subsection C.2 above.

Landscaping with exotic plants shall be limited to outdoor living space immediately adjacent to the proposed development. Invasive non-native plants including Pampas grass, Acacia, Genista, and non-native iceplant Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 38 pose a threat to indigenous plant communities and shall not be approved as part of any proposed landscaping.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 39 Figure 4: Inland General Plan Map OS-2
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 40

4. Resource protection during construction. Habitat areas containing vegetation that is essential to the maintenance of the habitat and/or rare or endangered plant or animal species shall be protected from disturbance by construction activities. Temporary wire mesh fencing shall be placed around habitat prior to construction, and protected areas shall not be used by workers or for the storage of machinery or materials. Inspections for compliance shall occur during construction.

5. Resource protection after construction. After construction, unpaved areas shall be replanted to provide for the reestablishment of a 100 percent vegetation cover within two years. At five years, the site should support the same habitat removed. Remedial actions (e.g., planting of native species and removal of invasive horticultural species) shall be implemented as necessary to ensure that the site will consist of at least 75 percent native species at the end of five years.

6. Herbicide use. The use and disposal of any herbicides for invasive species removal shall follow the written directions of the manufacturer, shall comply with all conditions imposed by the City, and shall be accomplished in a manner that will fully protect adjacent native vegetation.

Discussion
The proposed ordinances will establish regulations for commercial cannabis cultivation in inland industrial zones and make minor modifications to existing regulations for cannabis business activity in commercial zones. Indoor cannabis cultivation as a land use is comparable in intensity to other allowable and conditionally allowed uses in the industrial zone, namely light, medium, and heavy manufacturing, fish processing, or agricultural product processing. Outdoor cultivation is not allowed, and only indoor cultivation is conditionally allowed, which will have no more significant impacts than other industrial uses that are currently allowable. The proposed amendment to the code in and of itself will not have significant impacts on biotic resources as it does not involve any physical development, changes in allowable lot coverage, or other regulations that protect biological resources, such as creek setbacks, tree replacement requirements, and construction controls. Furthermore, all CBP applications are fully discretionary and subject to CEQA review, including an evaluation of potential impacts to biological resources from the specific application.

There is one Critical Habitat area identified by the US Fish and Wildlife IPaC website.

As seen in the map below the red area is critical habitat identified for the Tidewater Goby (see Figure 5). In the event that a future CBP application is located within close proximity and may impact this habitat area, the project would be subject to review and compliance with both the federal and state Endangered Species Act (ESA) and the City’s Environmentally Sensitive Habitat Area (ESHA) regulations.

Discretionary projects in the inland zone are evaluated using Map OS-2 to determine if the project is in a special review area and needs to comply with Policy OS-1.3 Biological Report Required for Special Review Areas. See Figure 2 above. CBP applications that are located in a Special Review Area are required to provide a Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 41 biological Report. Biological reports for discretionary projects including CBP applications are either reviewed by staff or by an independent biologist, as warranted. If future CBP applications are determined to result in potentially significant impacts to biotic resources, redesign and mitigation will be considered to avoid or minimize impacts. The efficacy of redesign and mitigation will be assessed on the project level once a complete CBP application is received and is in process by the City.

In the case of a proposed nursery cultivations as an accessory use to a retail cannabis business in the commercial zone, even though permitted by right for land use purposes, the project would still require a discretionary Cannabis Business Permit which requires that a project comply with the Inland Land Use and Development Code and is subject to CEQA review. If the project is proposed on a site with important biotic resources, it would be subject to ILUDC §18.50.050.

The regulatory environment for biotic resources will not be changed by the proposed project. The proposed project will add a new conditionally allowable use to industrial zones and make minor modifications to existing regulations for commercial cannabis activity in commercial zones. There will be no change in the designation of industrial or commercial lands and there is no physical development proposed for this project.

Therefore, the project will have no impacts on biological resources.

References
Department of the Interior, US Fish and Wildlife Service, Endangered Species Act of 1973 as amended by the 108th Congress. Washington D.C.
https://www.fws.gov/endangered/esa-library/pdf/ESAall.pdf US Department of Fish and Wildlife Service. (2022, January 10). Migratory Bird Treaty Act. Retrieved from US Fish and WIldlife Service:
https://www.fws.gov/laws/lawsdigest/migtrea.html
California Code of Regulations Fish and Game Code Division 3 Fish and Game Generally Chapter 1.5 Endangered Species [2050-2089.25] https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=FGC&divi sion=3.&title=&part=&chapter=1.5.&article=1.

City of Fort Bragg. Inland General Plan Element 4 – Open Space Energy, and Parks. 2013.

City of Fort Bragg. Inland Land Use and Development Code. March, 2014.

US Fish and Wildlife Service, (2022, January 7). “IPaC Resource List.” Retrieved from:
https://ecos.fws.gov/ipac/location/PUQUU2RY6VBSHEYTA7KLYSNVQM/resource s
US Department of Agriculture. (2022, January 10). Web Soil Survey. Retrieved from:
https://websoilsurvey.sc.egov.usda.gov/App/HomePage.htm Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 42 Figure 5: Critical Habitat of the Tidewater Goby
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 43 Cultural Resources
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
V. CULTURAL RESOURCES. Would the
project:
a) Cause a substantial adverse change in
the significance of a historical resource
pursuant to § 15064.5?
☐ ☐ ☐ ☒
b) Cause a substantial adverse change in
the significance of an archaeological
resource pursuant to § 15064.5?
☐ ☐ ☐ ☒
c) Disturb any human remains, including
those interred outside of formal
cemeteries?
☐ ☐ ☐ ☒
Historical Setting
Native Americans have inhabited the North Coast of Mendocino County for at least 10,000 years. The Pomo people were hunter‐gatherers with a close relationship to the land and the sea. Seasonal Native American villages were located along the coast with permanent villages located north of Ten Mile River.(City of Fort Bragg, 2022) In 1857, the Fort Bragg military post was established on the Mendocino Indian Reservation approximately 1.5 miles north of the Noyo River. Its purpose was to maintain order on the reservation. Also in 1857, a lumber mill was established on the Noyo River starting what would become the major industry of the region. The military post was short‐lived. In 1865, after 300 Native Americans were marched forcibly from the Reservation to a reservation in Round Valley, and Fort Bragg as a military post was abandoned. (City of Fort Bragg Website)
On August 5, 1889, Fort Bragg was incorporated as a city. C.R. Johnson, president of the Fort Bragg Redwood Company, was the first mayor. His company laid out the town much as it exists today; with a uniform street grid and mid-block alleys. In 1893, the Union Lumber Company was created by absorbing some of the smaller lumber companies in the area.

The Great 1906 Earthquake resulted in a fire at the lumber mill that threatened the entire city. Brick buildings throughout the city were damaged, if not destroyed completely, and many frame homes were knocked off their piers. The fire burned the entire downtown area bordered by Franklin Street, Redwood Avenue, and McPherson Street. Within 12 months following the earthquake, all downtown reconstruction was Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 44 completed. The earthquake brought prosperity to Fort Bragg as the mills furnished lumber for the rebuilding of San Francisco.

By 1916, Fort Bragg had become a popular place to visit and settle. Commercial fishing also played an important role in the formation of the economic base of Fort Bragg. Noyo Harbor was once a major commercial fishing port well‐known for producing quality fish products that were distributed to major metropolitan markets. (City of Fort Bragg Website)
Fort Bragg prospered in the post-World War II era as a hub for logging and fishing through the heavy extraction of natural resources. With the exhaustion of these resources and necessary environmental protections in the later years of the 20th Century, the traditional economic activity in Fort Bragg fell into a steady decline. In recent history, the City has transitioned to a service industry mainly generated by tourism.

Cannabis was officially banned by the Federal Government in 1937. Locally, the 1960’s and 1970’s marked a significant “Back to Land Movement” in Mendocino County.

Cannabis was very much a part of the culture of the community that developed as part of the movement. Since that time, cannabis has had a complicated history in Mendocino County, characterized by the war on drugs, criminalization, and enforcement at the local, state, and federal level. While there was limited cannabis activity inside the City limits, cannabis significantly impacted the cultural development of Fort Bragg in the later 20th Century. The shift to legalized cannabis began with the adoption of the Compassionate Use Act (Proposition 215) in 1996. The City had no dispensaries during this period, and it was not until the passage of the Adult Use of Marijuana Act that the City instituted regulations allowing cannabis businesses. In 2019 regulations were adopted to allow retail cannabis and it was not until 2020 that the first commercial cannabis dispensaries were established within the City limits. For 50 years cannabis has had a presence in the City.

Regulatory Setting
Cultural Resources are archaeological and historic sites, architectural resources, and traditional cultural properties, as well as the physical evidence of past human activity on the landscape. Cultural resources, along with Native American and historic human remains and associated grave goods, must be considered under various federal, state, and local regulations, including CEQA and the National Historic Preservation Act of 1966. In general, any trace of human activity more than 50 years in age is required to be treated as a potential cultural resource.

The National Historic Preservation Act (NHPA) is the primary regulatory framework for the protection of cultural resources. The NHPA created the authority for the creation of the State Historic Preservation Office, National Register of Historic Places, and for the Secretary of the Interior Standards for Historic Preservation.

At the state level, the California Register of Historical Resources in PRC Section 5020.1(j) includes “any object, building, structure, site, area, place, record, or manuscript which is historically or archaeologically significant, or is significant in the Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 45 architectural, engineering, scientific, economic, agricultural, educational, social, political, military, or cultural annals of California.” The regulations state the criteria for eligibility and guidelines for determining historical integrity and resources of special consideration.

A cultural resource that is listed in, or eligible for inclusion in, the California Register of Historical Resources (CRHR) is referred to as an Historical Resource. A resource may be eligible for inclusion in the CRHR if it is:
1) associated with events that have made a significant contribution to the broad patterns of California’s history and cultural heritage; 2) associated with the lives of persons important in our past; 3) embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of an important creative individual, or possesses high artistic values; or
4) has yielded, or may be likely to yield, information important in prehistory or history. (CRHR, 2022)
On September 25, 2014, then Governor Brown signed Assembly Bill 52 (AB 52), which created a new category of environmental resources, tribal cultural resources, to be evaluated as part of the CEQA review process. Tribal cultural resources are defined as follows:
(1) sites, features, places cultural landscapes, sacred places and objects with cultural value to a California Native American tribe” that are included in the state register of historical resources or a local register of historical resources, or that are determined to be eligible for inclusion in the state register; or
(2) resources determined by the lead agency, in its discretion, to be significant based on the criteria for listing in the state register. (AEP, 2021) AB 52 requires lead agencies to provide notice to tribes that are traditionally and culturally affiliated with the geographic area of a proposed project if tribal entities, organizations or individuals have requested to be notified. The City of Fort Bragg routinely issues AB 52 notifications to the following local tribes as part of the CEQA review process:
 Sherwood Valley Rancheria of Pomo Indians of California  Coyote Valley Band of Pomo Indians of California
 Manchester Band of Pomo Indians
 Cahto Tribe of the Laytonville Rancheria
 Hopland Band of Pomo Indians
 Guidiville Rancheria
 Pinoleville Pomo Nation
 Potter Valley Tribe
At the local level, the City of Fort Bragg addresses historic resources in the General Plan, ILUDC, and in Citywide Design Guidelines. In the General Plan, the Central Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 46 Business District is identified as the civic, cultural, and commercial center of the community and the following apply:Land Use Goal LU-3 Ensure that the Central Business District remains the historic, civic, cultural, and commercial core of the community.

Land Use Goal LU-3 Policy LU-3.1 Central Business District: Retain and enhance the smallscale, pedestrian friendly, and historic character of the Central Business District (CBD).

Land Use Goal LU-3 Policy LU-3.1 Program LU-3.1.1: Utilize City-owned land at City Hall and Bainbridge Park for historic and cultural uses, public assembly, and entertainment.

Land Use Goal LU-3 Policy LU-3.3 Historic Buildings and Mixed Uses: In the Central Business District and in other commercial areas with historic residential structures, encourage residential uses, mixed residential, and commercial uses, and the preservation of historic structures
Land Use Goal LU-3 Policy LU-3.6 Program LU-3.6.1: Consider establishing incentives such as low-interest loans for rehabilitation and installation of fire sprinklers in buildings to encourage the reuse of upper floors of existing buildings in the Central Business District for housing, offices, and other uses.

Land Use Goal LU-4 Policy LU-4.2 Large-Scale Commercial Development: To maintain scenic views along Main Street and to ensure that building sizes at the City’s gateways are in scale with the community, no commercial building shall exceed the following limitations on the gross floor area: a) between the Noyo River and Pudding Creek Bridges - maximum 50,000 square feet b) east of Highway One and north of Pudding Creek Bridge - maximum 30,000 square feet
The City maintains a list of potentially significant historic structures in the City limits.

Most of the non-residential structures are concentrated in the Central Business District and ILUDC Chapter 18.74 regulates Cultural Resource Protection in the City of Fort Bragg.

Projects that will change the outward appearance of an existing non-residential building are required to undergo design review in compliance with Chapter 18.71.050.

Design Review is intended to ensure that the design of proposed development and new land uses assists in maintaining and enhancing the small-town, coastal, historic, and rural character of the community. This is applied to all new structures, any relocation, exterior addition(s), or changes of or to existing structures, and any other physical improvements shall be subject to Design Review, whether or not a Building Permit is required, unless exempt in compliance with Subsection (B)(3) of this Section (Improvements exempt from Design Review). Design Review shall be required in addition to all other planning permit or approval requirements of this Development Code and the Municipal Code. (City of Fort Bragg, 2022)
The Citywide Design Guidelines complement the standards contained in the City of Fort Bragg Inland Land Use and Development Code by providing good examples of appropriate design solutions, and by providing design interpretations of the various regulations. The guidelines are less quantitative and rigid than the mandatory Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 47 development standards of the Development Code, and may be interpreted with some flexibility in the application to specific projects.

The City’s ILUDC §18.50.030 provides regulations for Archaeological Resource Preservation. The requirements of this Section are intended to ensure that appropriate safeguards are established and followed in order to protect archaeological and paleontological resources, as well as sacred sites and/or traditional cultural properties (TCPs) whose potential location is identified, or which are discovered as a result of development activity within the City.

ILUDC Section 18.50.030 states that before commencing any digging, grading, or any other ground disturbing activity in advance of construction of an approved development project within the following areas:

1. Noyo River. All of the areas located adjacent to the Noyo River;

2. Special review Areas. Identified on map LC-2; and/or

3. Other areas identified by the Director. Other areas identified by the environmental review process (Chapter 18.72), or brought to the attention of the City through special studies performed after the enactment of this Section, as having the potential for containing archaeological or paleontological resources.

Additionally, the following procedures are outlined for reporting and mitigation:

1. Report required. Where development proposals are for an area in which there are known archaeological or paleontological resources or sacred sites or TCPs on the site or in the vicinity, or where there is a moderate to high probability for previously unidentified archaeological, paleontological, and/or TCP resources to be encountered during the development activity, and where it is determined by the Director that no adequate prior assessment of on-site resources has been completed, a report shall be prepared by a qualified archaeologist before the issuance of other discretionary permit approvals.
a. At a minimum, the report shall identify and evaluate all archaeological and paleontological resources, including sacred sites and TCPs, in the areas of the site proposed to be disturbed by the project, assess the effects of the proposed development on those resources, and recommend appropriate resource preservation and/or mitigation measures to adequately address the identified effects. b. If cultural resources are identified, a copy of the report shall also be transmitted to the State Historical Preservation Officer, and any federally-recognized Native American tribes who have expressed interest in the project for review and comment.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 48 The Director may waive the requirement for a report if the Director determines that an existing report satisfies this requirement.

2. Mitigation measures required. Under both CEQA and NHPA, avoidance of historic resources is the preferred course of action. When avoidance of the resources is not feasible, mitigation measures shall be adopted under CEQA.
a. Where proposed development activity will adversely affect archaeological or paleontological resources, including sacred sites and/or TCPs, the City shall require reasonable and necessary mitigation measures.
b. Mitigation shall be designed in compliance with CEQA Guidelines and the guidance of the State Office of Historic Preservation, and the State Native American Heritage Commission.

ILUDC §18.50.030(D) provides requirements regarding discovery or archaeological resources. All permits issued are conditions with the following from this section:

1. When, in the course of digging, grading, or any other activity in advance of construction of an approved development project, evidence of archaeological, paleontological, or other potentially significant historic resources is discovered, all work which could potentially damage or destroy the resources shall cease immediately.

2. The Director shall be notified immediately of the discovery and engage an archaeologist to determine if the discovery is significant and the correct course of action to avoid, minimize and/or mitigate damage to the resource

3. The Director shall notify the State Historic Preservation Officer and federally-recognized Native American tribes who have expressed an interest in the project of the discovery.

4. All work which could potentially damage or destroy the resources shall be halted until appropriate avoidance, minimization, and/or mitigation measures can be developed and implemented.

Discussion
The proposed ordinances would establish regulation for cannabis cultivation in industrial zones and make minor modifications to the existing regulations for cannabis business activities in commercial zones. The proposed regulation for cannabis cultivation would not impact known or undiscovered cultural resources since no physical development is proposed.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 49 In the future, at the time that a cannabis cultivation project is proposed, City staff would review whether it is on a developed or undeveloped site. The discretionary nature of future cannabis cultivation projects requires a review of potential impacts to cultural resources under CEQA. If a future project is proposed for an existing structure, it would be determined whether the structure is potentially a historic resource as defined in the CEQA Guidelines Section 15064.5 and identified in the City’s list of historic structures. If the future project involves a historic structure, it will have to comply with CEQA Guidelines and with the City’s ILUDC Chapter 18.74.

Additionally, if a future project involves new construction, the application is referred, through the AB 52 notification process, to the Tribal Historic Preservation Officer for the Sherwood Valley Band of Pomo Indians and other tribes. A tribe may request consultation, an archaeological review, site visit, and/or tribal monitor on site during excavation and construction. In the event that a future cultivation project site has the potential for cultural resources, a cultural resources report would be required by ILUDC §18.50.030, or if requested by the tribe. As part of the discretionary review process, the City will review individual cultivation projects, as is done for all development applications, to determine if there’s a potential to have significant impacts on cultural resources and to inform the environmental review process.

As noted above, the subject project is limited to revisions in the municipal code including the addition of a conditionally allowable use in the industrial zones and minor modifications to existing regulations for cannabis business activities in the commercial zones. All future cannabis cultivation applications require a discretionary permit (CBP) and future cultivation applications would be reviewed accordingly. The subject amendments to the codes do not include any physical development and do not modify, alter, or otherwise change existing regulation governing the protection and preservation of historical and cultural resources. Therefore, the project will have no impact on historic and cultural resources.

References
Association of Environmental Professionals. (2021). 2021 California Environmental Quality Act Statute & Guidelines. AEP.

State of California. California Code of Regulations, Title 14, Division 6, Chapter 3, Sections 15000–15387, CEQA Guidelines. Updated January 1, 2021.

City of Fort Bragg. Inland Land Use Development Code. March, 2014.

City of Fort Bragg. (2022, January 10). Citywide Design Guidelines. Retrieved from:
https://city.fortbragg.com/154/Citywide-Design-Guidelines National Historic Preservation Act as Amended through December 16, 2016. 54 USC. https://www.achp.gov/sites/default/files/2018-06/nhpa.pdf California State Office of Historic Preservation. (2022, January). California Register of Historic Resources. Retrieved from: https://ohp.parks.ca.gov/?page_id=21238 Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 50 Energy
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
VI. ENERGY. Would the project:
a) Result in potentially significant
environmental impact due to wasteful,
inefficient, or unnecessary consumption
of energy resources, during project
construction or operation?
☐ ☐ ☐ ☒
b) Conflict with or obstruct a state or local
plan for renewable energy or energy
efficiency?
☐ ☐ ☐ ☒
Regulatory Setting
The California Energy Commission (CEC) is the agency responsible for regulating energy usage and developing the Title 24, Parts 6 and 11 also known as the Building Energy Efficiency Standards in the California Code of Regulations. On August 11, 2021, the CEC adopted the 2022 Energy Code which was presented to the California Building Standards Commission (CBSC) for approval into the California Building Standards Code in December 2021. The 2022 Energy Code will go into effect on January 1, 2023.

Among the recommended amendments to the code were energy efficiency standards for controlled environment horticulture which includes indoor cannabis cultivation. (CEC, 2022)
The DCC has renewable energy requirements for commercial cannabis cultivations including the State of California Department of Cannabis Control Regulations §16305.

Renewable Energy Requirements (See Attachment F):
(a) Beginning January 1, 2023, all holders of indoor, tier 2 mixed-light license types of any size, and all holders of nursery licenses using indoor or tier 2 mixed-light techniques shall ensure that electrical power used for commercial cannabis activity meets the average electricity greenhouse gas emissions intensity required by their local utility provider pursuant to the California Renewables Portfolio Standard Program in division 1, part 1, chapter 2.3, article 16 (commencing with section 399.11) of the Public Utilities Code.
(b) If a licensed cultivator’s average weighted greenhouse gas emission intensity, as calculated and reported upon license renewal pursuant to section 15020, is greater than the local utility provider’s greenhouse gas emission intensity, the licensee shall obtain carbon offsets to cover the Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 51 excess in carbon emissions from the previous annual licensed period. The carbon offsets shall be purchased from one or more of the following recognized voluntary carbon registries:
(1) American Carbon Registry;
(2) Climate Action Reserve; or
(3) Verified Carbon Standard. (DCC, 2021)
Additionally, the DCC’s existing Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19 §15020 provides the following requirements for license renewals:
(f) Beginning January 1, 2022, an application for renewal of a license to engage in commercial cannabis cultivation shall include the following records, for each power source indicated on the application for licensure for the previous annual licensed period:
(1) Total electricity supplied by local utility provider, name of local utility provider, and greenhouse gas emission intensity per kilowatt hour reported by the utility provider under section 398.4(c) of the Public Utilities Code for the most recent calendar year available at time of submission;
(2) Total electricity supplied by a zero net energy renewable source, as set forth in section 398.4(h)(5) of the Public Utilities Code, that is not part of a net metering or other utility benefit;
(3) Total electricity supplied from other unspecified sources, as defined in section 398.2(e) of the Public Utilities Code, and other onsite sources of generation not reported to the local utility provider (e.g., generators, fuel cells) and the greenhouse gas emission intensity from these sources; and (4) Average weighted greenhouse gas emission intensity considering all electricity use in subsections (f)(1)-(f)(3).

The City’s Inland General Plan has the following Goals, Policies, and Programs to address energy usage:

Sustainability Goal S-1 Policy S-1.2 Program S-1.2.3 Promote the use of building materials that maintain healthy indoor air quality in an effort to reduce irritation and exposure to toxins and allergens for building occupants. Promote the use of building materials, furniture and paint that maintain healthy indoor air quality, and discourage the use of materials that degrade indoor air quality.

Sustainability Goal S-2 Encourage development that minimizes the demand for nonrenewable energy and reduces Green House Gas (GHG) emissions.

Sustainability Goal S-2 Policy S-2.1 Passive Solar Design Strategies: All building and site design shall use passive solar design strategies for space heating and lighting to reduce energy demand to the extent feasible.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 52 Sustainability Goal S-2 Policy S-2.3 Reduce Energy Demand with a goal of Net Zero Energy in New Construction. All new construction shall minimize energy use. Net zero buildings and homes are encouraged. These homes produce as much energy (through conservation, photovoltaic panels, solar hot water, wind, and geothermal) as they consume and have a net zero impact on greenhouse gas production.

Sustainability Goal S-2 Policy S-2.4 Require passive solar design in new construction, where feasible, as part of Design Review.

Sustainability Goal S-2 Policy S-2.4 Program S-2.4.1: Modify the Citywide Design Guidelines to include guidelines that require passive solar design for residential and commercial new construction projects.

Sustainability Goal S-2 Policy S-2.5 Use of Local and Renewable Energy: Buildings and infrastructure that create and/or use locally and renewably generated energy are encouraged.

Photovoltaic and wind energy systems are encouraged. The installation of solar panels or other clean energy power generation sources over parking areas is preferred Additionally, the City’s current Municipal Code Chapter 9.30 Cannabis Businesses §9.30.140(D) requires that commercial cannabis cultivation shall either enroll in a community choice aggregate energy provider or install solar panels.

Discussion
As previously noted, the proposed project will establish regulation for cannabis cultivation in industrial zones and make minor modifications to the existing regulations for currently allowable cannabis business activities in commercial zones. The subject amendments to the code in and of itself precludes physical development and would not result in the use of energy. Therefore, there would no impacts associated with wasteful, inefficient, or unnecessary consumption of energy resources.

Any future application received for a proposed commercial cultivation project would be subject to a CBP and reviewed to determine if the project would have significant impacts on energy. While indoor cannabis cultivation typically uses significantly more energy than other commercial and industrial activities, the State’s updates to Title 24 California Energy Code provide ministerial guidelines for indoor cultivation. A building permit would be required to construct the Fully Enclosed and Secure Structure as imposed by the City of Fort Bragg Municipal Code §9.30.140(A) and any equipment would be required to meet the guidelines in Title 24. Furthermore, cannabis cultivators, are required to secure state licenses which includes review for compliance with energy regulation.

Additionally, the City’s Municipal Code §9.30.140(D) currently requires that Commercial cannabis cultivation shall either enroll in a community choice aggregate energy provider or install solar panels. This regulation remains applicable under the proposed updates.

Furthermore, the proposed amendments for ILUDC §18.42.055 Commercial Cannabis Cultivation subsection (B)(3)(b) states the following: Commercial cannabis cultivations Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 53 shall use the energy efficient lighting and equipment. A cannabis cultivator shall provide proof of the utility provider’s ability to provide reliable power to the cultivation site.

There are currently two energy providers for the City of Fort Bragg, Sonoma Clean Power and Pacific Gas and Electric. Under the proposed ordinances, indoor commercial cultivation projects require a discretionary permit and must obtain proof and furnish documentation to the City demonstrating that one of the local electrical utility companies can adequately serve their business.

The proposed project creates regulations for a new use in the industrial zones and makes minor modifications to existing regulations for cannabis business activities in commercial zones. It does not propose any physical development, nor does it result in the use of consumption of energy. Future projects would be reviewed in compliance with CEQA and the Department of Cannabis Control’s Licensing Requirements, California Building Codes, the City’s Municipal Code Chapter 9.30, the Inland General Plan, and the Inland Land Use and Development Code. Therefore, the proposed amendments to the code would have no impact on energy.

References
California Energy Commission,(2022, January 5) “2022 Building Energy Efficiency Standards.” Retrieved from: https://www.energy.ca.gov/programs-andtopics/programs/building-energy-efficiency-standards/2022-building-energyefficiency City of Fort Bragg. (2022, January 10). Municipal Code. City of Fort Bragg. Retrieved from https://www.codepublishing.com/CA/FortBragg/#!/FortBraggNT.html City of Fort Bragg, “Inland General Plan Element 9 - Sustainability.” 2013. https://city.fortbragg.com/156/Inland-General-Plan
City of Fort Bragg. (2022, January 10). Inland Land Use and Development Code.

Retrieved from
https://www.codepublishing.com/CA/FortBragg/#!/LUC18/FortBraggNT.html Department of Cannabis Control. Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19. September, 2021.

Energy Solutions and Cultivate Energy and Optimization. “Codes and Standards Enhancement (CASE) Initiative 2022 Energy Code: Controlled Environment Horticulture.” 2022-NR-COV-PROC4-F, Covered Processes, March 2021 Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 54 Geology and Soils
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
VII. GEOLOGY AND SOILS. Would the
project:
a) Directly or indirectly cause potential
substantial adverse effects, including the
risk of loss, injury, or death involving:
☐ ☐ ☐ ☒
i) Rupture of a known earthquake fault, as
delineated on the most recent AlquistPriolo Earthquake Fault Zoning Map issued by the State Geologist for the area
or based on other substantial evidence of
a known fault? Refer to Division of Mines
and Geology Special Publication 42.
☐ ☐ ☐ ☒
ii) Strong seismic ground shaking? ☐ ☐ ☐ ☒
iii) Seismic-related ground failure,
including liquefaction?
☐ ☐ ☐ ☒
iv) Landslides? ☐ ☐ ☐ ☒
b) Result in substantial soil erosion or the
loss of topsoil?
☐ ☐ ☐ ☒
c) Be located on a geologic unit or soil
that is unstable, or that would become
unstable as a result of the project, and
potentially result in on or off-site
landslide, lateral spreading, subsidence,
liquefaction or collapse?
☐ ☐ ☐ ☒
d) Be located on expansive soil, as
defined in Table 18-1-B of the Uniform
Building Code (1994), creating substantial
direct or indirect risks to life or property?
☐ ☐ ☐ ☒
e) Have soils incapable of adequately
supporting the use of septic tanks or
alternative waste water disposal systems
where sewers are not available for the
disposal of waste water?
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 55 f) Directly or indirectly destroy a unique
paleontological resource or site or unique
geologic feature?
☐ ☐ ☐ ☒
Setting
The City of Fort Bragg is located in the Coastal Range geomorphic province of California in an area of relatively steep and mountainous topography. The City itself is built on uplifted marine terrace deposits. Soils in the City of Fort Bragg are variations of sand dune, sandy loams, and the like. (See Figure 6)
There are no mines nor identified mineral resources in the City limits.

Regionally, the University of California Museum of Paleontology (UCMP) database lists 513 fossil localities within Mendocino County (UCMP, 2020). Of the known fossil localities, 63 are from the Cretaceous period and 2 are from the Jurassic Period. A review of the Mendocino County fossil record indicates that 10 early Cretaceous fossils have been discovered within the County and no late Jurassic fossils have been discovered. (UCMP, 2020)
Seismically, the City is located between two major fault systems, the Mayacamas Fault is 20 miles east of the City and runs north-south roughly along Highway 101. The San Andreas Fault network runs is approximately 5 miles offshore from the City as seen in Figure 6.

According to the Department of Conservation’s Earthquake Zones of Required Investigation (EZRI), the City of Fort Bragg does not contain any EZRIs nor any Alquist Priolo fault traces or zones. The Department of Conservation’s “Earthquake Shaking Potential for California” shows the relative intensity of ground shaking anticipated from future earthquakes. The City of Fort Bragg is shown as moderate level of intensity for

1.0 second earthquake shaking as seen in Figure 7.

The City also has some areas that have potential for landslides. There are areas along the Noyo River and Pudding Creek that may present a higher risk for landslide due to steep slopes. The landslide inventory map in Figure 8 shows the locations with solid lines and points to indicate historic slide activity. (DOC, 2022) Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 56 Figure 6: Geology of the City of Fort Bragg
Source: https://maps.conservation.ca.gov/cgs/gmc/
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 57 Figure 7: Earthquake Shaking Potential Map
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 58 Figure 8: Map of Historic Landslides and Potential Landslide Areas in Fort Bragg Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 59 Regulatory Setting
Regulations at the federal and state level require planning and development standards for seismic, geologic, and soil activity.

At the federal level, the Robert T. Stafford Disaster Relief and Emergency Assistance Act constitutes the statutory authority for most federal disaster response activities and established the presidential disaster declaration process. The Disaster Mitigation Act amended the Stafford Act and requires hazard mitigation plans as a pre-requisite for certain kinds of non-emergency disaster assistance. The Disaster Mitigation Act of 2000 also created the Pre-Disaster Mitigation Program and added incentives for states deemed “enhanced” who demonstrate increased coordination and integration of mitigation activities. In accordance with the Disaster Mitigation Act of 2000, the State of California has a Hazard Mitigation Plan that addresses earthquakes and geologic hazards. The City of Fort Bragg has a Hazard Mitigation Plan in conjunction with the County of Mendocino that addresses potential hazards related to seismic activities, landslides, and other geologic hazards.

The State of California has a long history of seismic activity. In 1972, the Alquist-Priolo Earthquake Fault Zoning Act was signed into law. The purpose of the act was to address the hazards posed by seismic activity. Amended in 1993, the Alquist Priolo Earthquake Fault Zoning Act provides for the adoption and administration of zoning laws, ordinances, rules, and regulations by cities and counties in implementation of the general plan that is in effect in any city or county. The Legislature declares that this chapter is intended to provide policies and criteria to assist cities, counties, and state agencies in the exercise of their responsibility to prohibit the location of developments and structures for human occupancy across the trace of active faults. Further, it is the intent of this chapter to provide the citizens of the state with increased safety and to minimize the loss of life during and immediately following earthquakes by facilitating seismic retrofitting to strengthen buildings, including historical buildings, against ground shaking.” (PRC 2621.5)
“Alquist-Priolo earthquake fault zones are regulatory zones surrounding the surface traces of active faults in California. (A trace is a line on the earth's surface defining a fault.) Wherever an active fault exists, if it has the potential for surface rupture, a structure for human occupancy cannot be placed over the fault and must be a minimum distance from the fault (generally fifty feet).

Earthquake fault zones were conceived in the Alquist-Priolo Earthquake Fault Zoning Act (Alquist-Priolo Act). The intent of the Alquist-Priolo Act is to reduce losses from surface fault rupture.

California created this law following the destructive 1971 San Fernando earthquake (magnitude 6.6), which was associated with extensive surface fault ruptures that damaged numerous structures.

An active fault, for the purposes of the Alquist-Priolo Act, is one that has ruptured in the last 11,000 years.” (DOC, 2022) Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 60 Additionally, “The 2019 California Building Standards Code (CBC) (Cal. Code Regs., Title 24) was published July 1, 2019, with an effective date of January 1, 2020. Information Bulletin 19-04 and Information Bulletin 19-05 provide detailed information concerning the 2019 publication.” (Building Standards Commission, 2021) The CBC regulates the construction of buildings to ensure public safety in the event of seismic activity.

At the local level, the Inland General Plan policies and programs that address geology and soils include:

Safety Goal SF-1 Policy SF-1.1 Minimize Hazards: New development shall: (a) Minimize risks to life and property in areas of high geologic, flood, and fire hazard; and (b) Assure stability and structural integrity, and neither create nor contribute significantly to erosion, geologic instability, or destruction of the site or surrounding area or in any way require the construction of protective devices that would substantially alter natural landforms along bluffs and cliffs
Safety Goal SF-1 Policy SF-1.1 Program SF-1.1.1 Continue to comply with the provisions of the State Alquist-Priolo Act.

Safety Goal SF-1 Policy SF-1.1 Program SF-1.1.2 Require professional inspection of foundations and excavations, earthwork, and other geotechnical aspects of site development during construction on those sites specified in soils, geologic, and geotechnical studies as being prone to moderate or high levels of seismic hazard.

Safety Goal SF-1 Policy SF-1.1 Program SF-1.1.3 Monitor and review existing critical, high priority buildings to ensure structural compliance with seismic safety standards.

Safety Goal SF-1 Policy SF-1.1 Program SF-1.1.7 Continue to comply with State law regarding reinforcement of unreinforced masonry structures.

Safety Goal SF-1 Policy SF-1.2 Geotechnical report required: Applications for development located in or near an area subject to geologic hazards, including but not limited to areas of geologic hazard shown on Map SF-1, shall be required to submit a geologic/soils/geotechnical study that identifies all potential geologic hazards affecting the proposed project site, all necessary mitigation measures, and demonstrates that the project site is suitable for the proposed development and that the development will be safe from geologic hazard. Such study shall be conducted by a licensed Certified Engineering Geologist (CEG) or Geotechnical Engineer (GE). Refer to Map SF-1:

Geologic Hazards. Refer to the General Plan Glossary for definitions of these terms.

Safety Goal SF-1 Policy SF-1.4 Identify Potential Hazards: Identify potential hazards relating to geologic and soils conditions during review of development applications.

Safety Goal SF-1 Policy SF-1.4 Program SF-1.4.1 Evaluate slopes over 15 percent, unstable land, and areas susceptible to liquefaction, settlement, and/or soil expansion for safety hazards prior to issuance of any discretionary approvals and require appropriate measures to reduce any identified hazards.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 61 Safety Goal SF-1 Policy SF-1.4 Program SF-1.4.2 Require that development in areas with identified slope stability constraints as shown on Map SF-1 or other areas where City staff determines there is potential slope stability issues be supervised and certified by a geologist, geotechnical engineer, or engineering geologist.

Safety Goal SF-1 Policy SF-1.4 Program SF-1.4.3 Require repair, stabilization, or avoidance of active or potentially active landslides, areas of soil creep, or areas with possible debris flow as a condition of project approval.

As referenced in Map SF-1 in the Inland General Plan shows the known Geologic Hazards in the City of Fort Bragg. (See Figure 9)
The ILUDC Chapter 18.62 provides standards for grading, erosion, and sediment control. A proposed project that creates ground disturbance would have to be in compliance with any applicable section of this chapter including §18.62.030 Erosion and Sediment Control, §18.62.070 Revegetation and Slope Surface Stabilization, §18.62.090 Setbacks for Cut and Fill Slopes, and any other section that regulates erosion.

Also of relevance to this section, paleontological resources are the fossilized evidence of organisms preserved in the geologic (rocks) record. Fossils are considered nonrenewable resources that are protected by federal, state, and local environmental laws and regulations.

Discussion
As previously noted, the proposed amendments to the Municipal Code and the Inland Land Use and Development Code will not change the general requirements for development in the City. The project would establish regulations for a new use, commercial cannabis cultivation in the industrial zone and make minor modifications to existing regulations for cannabis business activities in the commercial zone. All existing and future CBP applications are subject to discretionary review and must comply with CEQA.

The construction of any new facilities and any structural changes to existing commercial or industrial buildings received under as part of a CBP application under the proposed ordinances, would require a building permit and demonstrate compliance with the Title 24 Building Code and meet current seismic standards, and the City’s regulations for grading, erosion, and sediment control.

The proposed the project, changes to the City’s codes regulating cannabis cultivation, would not result in any new buildings or structures and does not involve any physical development. Further, there are no changes proposed that would alter the City’s established regulation governing the protection of public health and safety related to geology and soils. Therefore, the proposed project will have no impact on geologic and soil resources in the City of Fort Bragg.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 62 Figure 9: General Plan Map SF-1 Geologic Hazards in the City of Fort Bragg Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 63 References
Branum, D., Chen, R., Petersen, and C. Wills, “Earthquake Shaking Potential for California.” State of California Department of Conservation and California Geological Survey. Map Sheet 489, Revised 2016.
https://www.conservation.ca.gov/cgs/Documents/Publications/MapSheets/MS_048.pdf California Building Standards Commission. (2022, January 7) California Building Standards Code Title 24. Retrieved from: https://www.dgs.ca.gov/BSC/Codes California Department of Conservation (DOC). (2022, January 21). Alquist-Priolo Earthquake Fault Zones. Retrieved from:
https://www.conservation.ca.gov/cgs/alquist-priolo
City of Fort Bragg, “Inland General Plan Element 7 - Safety.” 2013. https://city.fortbragg.com/156/Inland-General-Plan
City of Fort Bragg. (2022, January 10). Inland Land Use and Development Code.

Retrieved from
https://www.codepublishing.com/CA/FortBragg/#!/LUC18/FortBraggNT.html Federal Emergency Management Administration. (2022, January 7) Disaster Authorities. Retrieved from: https://www.fema.gov/disaster/authorities State of California Public Resources Code, Division 2, Chapter 7.5 Earthquake Fault Zoning [2621-2630]
https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PRC&divi sion=2.&title=&part=&chapter=7.5.&article=
State of California, Governor’s Office of Planning and Research. (2022, January 5) OPR General Plan Guidelines Tool. Retrieved from:
http://maps.gis.ca.gov/cageneralplan/map.aspx
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 64 Greenhouse Gases
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
VIII. GREENHOUSE GAS EMISSIONS.

Would the project:
a) Generate greenhouse gas emissions,
either directly or indirectly, that may have
a significant impact on the environment?
☐ ☐ ☐ ☒
b) Conflict with an applicable plan, policy
or regulation adopted for the purpose of
reducing the emissions of greenhouse
gases?
☐ ☐ ☐ ☒
Regulatory Setting
Greenhouse Gas (GHG) is used to describe atmospheric gases naturally contained within the earth’s atmosphere that absorb solar radiation and subsequently emit radiation in the thermal infrared region of the energy spectrum, trapping heat in the Earth’s atmosphere. These gases include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and water vapor, among others. A growing body of research attributes long-term changes in temperature, precipitation, and other elements of the earth’s climate to large increases in GHG emissions since the mid-nineteenth century, particularly from human activity related to fossil fuel combustion. Anthropogenic GHG emissions of particular interest include CO2, CH4, N2O, and fluorinated gases. CO2e represents CO2 plus the additional warming potential from CH4 and N2O. The common unit of measurement for CO2e is metric tons (MTCO2e).

In 2007, the United States Supreme Court ruled that Greenhouse Gas Emissions (GHGs) are air pollutants under the Clean Air Act. In 2009, the National Highway Traffic Safety Administration and US EPA issued the first Corporate Fuel Economy (CAFE) Standards to improve fuel economy and reduce GHGs. These standards were updated in 2021 and expected to be updated again in the coming year(s).

The State of California regulates GHGs through the California Air Resources Board (CARB) and has permitting and reporting requirements for large stationary producers of GHGs. However, emissions related to cultivation are typically below the level that requires mandatory reporting.

California Assembly Bill 1493 was passed in 2002 which required CARB to develop and implement regulations to reduce automobile and light truck GHG emissions. Also, the Governor’s Executive Order S-03-05 in 2005 called for reductions of GHGs to 2000 levels by 2010 and 1990 levels by 2020, and 80% of 1990 levels by 2050. These goals Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 65 were affirmed by Executive Order B-16-2012 in 2012 and an additional target was established for 40% below 1990 levels by 2030 via Executive Order B-30-15.

Additionally, the State of California passed AB 32, the Global Warming Solutions Act in 2006 to set a statewide target to reduce emissions to 1990 levels by 2020. An update to the plan to achieve the reductions was updated by CARB in 2017 which aims at achieving goals by 2030. Currently, CARB is developing a 2022 Scoping Plan Update which aims at achieving Carbon Neutrality by 2045.

The State of California has continued to develop rules and regulations on GHGs including:
 Senate Bill 32 and Assembly Bill 197 – follow ups to the California Global Warming Solutions Act.
 Executive Order S-1-07 - Low Carbon Fuel Standard
 Senate Bill 375 – Sustainable Communities and Climate Protection Act of 2008  Renewable Portfolio Standards established by SB 1078, Executive Order S-14- 08, SB X1-2 and SB 350.

Specifically for cannabis cultivation, the Department of Cannabis Control’s Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19 §15020 provides the following requirements for cannabis businesses:
(f) Beginning January 1, 2022, an application for renewal of a license to engage in commercial cannabis cultivation shall include the following records, for each power source indicated on the application for licensure for the previous annual licensed period:
(1) Total electricity supplied by local utility provider, name of local utility provider, and greenhouse gas emission intensity per kilowatt hour reported by the utility provider under section 398.4(c) of the Public Utilities Code for the most recent calendar year available at time of submission;
(2) Total electricity supplied by a zero net energy renewable source, as set forth in section 398.4(h)(5) of the Public Utilities Code, that is not part of a net metering or other utility benefit;
(3) Total electricity supplied from other unspecified sources, as defined in section 398.2(e) of the Public Utilities Code, and other onsite sources of generation not reported to the local utility provider (e.g., generators, fuel cells) and the greenhouse gas emission intensity from these sources; and (4) Average weighted greenhouse gas emission intensity considering all electricity use in subsections (f)(1)-(f)(3).

Also, the State of California Department of Cannabis Control Regulations §16305.

Locally, the City of Fort Bragg’s Inland General Plan Element 9 - Sustainability provides goals and policies on GHG reductions. These include:

Sustainability Goal S-2 Encourage development that minimizes the demand for nonrenewable energy and reduces Green House Gas (GHG) emissions.

Sustainability Goal S-2 Policy S-2.3 Reduce Energy Demand with a goal of Net Zero Energy in New Construction. All new construction shall minimize energy use. Net zero buildings and homes are encouraged. These homes produce as much energy (through conservation, photovoltaic panels, solar hot water, wind, and geothermal) as they consume and have a net zero impact on greenhouse gas production.

Sustainability Goal S-2 Policy S-2.4 Require passive solar design in new construction, where feasible, as part of Design Review.

Sustainability Goal S-2 Policy S-2.5 Use of Local and Renewable Energy: Buildings and infrastructure that create and/or use locally and renewably generated energy are encouraged. Photovoltaic and wind energy systems are encouraged. The installation of solar panels or other clean energy power generation sources over parking areas is preferred Furthermore, in the City’s Municipal Code, Chapter 9.30 Cannabis Business §9.30.140(D) currently says that “the Commercial cannabis cultivation shall either enroll in a community choice aggregate energy provider or install solar panels.” Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 67 Discussion
As previously noted, the proposed ordinances would establish regulations for commercial cannabis cultivation in industrial zones and make minor modifications to the existing regulations for cannabis business activities in commercial zones. This project in and of itself does not propose any physical development and any future proposed cultivation application would be subject to discretionary review, at which time it would be determined if the project would have significant impacts on Greenhouse Gas Emissions.

The proposed amendments do not change the land use designations for any properties and conditionally allows the introduction of cannabis cultivation in industrial zones and makes minor modifications to existing regulations for commercial zones. It does not change any of the plans or regulations for reducing greenhouse gas emissions.

Therefore, the proposed project, limited to the proposed amendments to the Municipal Code and Inland Land Use and Development Code, will have no impacts on Greenhouse Gas Emissions.

References
Department of Justice. Massachusetts v. EPA, 549 US 497 (2007) https://www.justice.gov/enrd/massachusetts-v-epa
State of California, “Assembly Bill 1493, Chapter 200, An act to amend Section 42823 of, and to add Section 43018.5 to, the Health and Safety Code, relating to air quality.” July 22, 2002
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=200120020AB1493 State of California, “Assembly Bill 32 Chapter 488, An act to add Division 25.5 (commencing with Section 38500) to the Health and Safety Code, relating to air pollution.” September 27, 2006.
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=200520060AB32 California Air Resources Board (2022, January 7) “AB 32 Climate Change Scoping Plan.” 2022, Retrieved from: https://ww2.arb.ca.gov/our-work/programs/ab-32- climate-change-scoping-plan
Department of Cannabis Control, “Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19.” Department of Cannabis Control, 2021. https://cannabis.ca.gov/wpcontent/uploads/sites/2/2021/10/DCC-Cannabis-Regulations-Sept.-2021.pdf City of Fort Bragg, “Inland General Plan Element 9 - Sustainability.” 2013. https://city.fortbragg.com/156/Inland-General-Plan
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 68 Hazards and Hazardous Materials
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
IX. HAZARDS AND HAZARDOUS
MATERIALS. Would the project:
a) Create a significant hazard to the
public or the environment through the
routine transport, use, or disposal of
hazardous materials?
☐ ☐ ☐ ☒
b) Create a significant hazard to the
public or the environment through
reasonably foreseeable upset and
accident conditions involving the release
of hazardous materials into the
environment?
☐ ☐ ☐ ☒
c) Emit hazardous emissions or handle
hazardous or acutely hazardous
materials, substances, or waste within
one-quarter mile of an existing or
proposed school?
☐ ☐ ☐ ☒
d) Be located on a site which is included
on a list of hazardous materials sites
compiled pursuant to Government Code
Section 65962.5 and, as a result, would it
create a significant hazard to the public or
the environment?
☐ ☐ ☐ ☒
e) For a project located within an airport
land use plan or, where such a plan has
not been adopted, within two miles of a
public airport or public use airport, would
the project result in a safety hazard or
excessive noise for people residing or
working in the project area?
☐ ☐ ☐ ☒
f) Impair implementation of or physically
interfere with an adopted emergency
response plan or emergency evacuation
plan?
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 69 g) Expose people or structures, either
directly or indirectly, to a significant risk of
loss, injury or death involving wildland
fires?
☐ ☐ ☐ ☒
Regulatory Setting
Hazardous materials, including hazardous substances and wastes are regulated by state and federal laws. Statutes govern the generation, treatment, storage and disposal of hazardous materials, substances, and waste, and also the investigation and mitigation of waste releases, air and water quality, human health and land use.

Federally, the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) regulates the effects of past hazardous waste disposal activities and new hazardous spills. It created a tax on chemical and petroleum industries to support funding for clean-up of abandoned or uncontrolled hazardous waste sites with no responsible party. This was amended in 1986 by Superfund Amendments and Reauthorization Act to increase the focus on human health problems posed by hazardous waste.

The Resource Conservation and Recovery Act (RCRA) was adopted in 1976. This provided national goals for protecting human health and the environment from the potential hazards related to waste disposal. It also provided for conservation of energy and natural resources, reductions in the amount of waste generated, and ensured that waste is managed in an environmentally sound manner.

Additionally, the Emergency Planning and Community Right-to-Know Act included Section 313, the Toxic Release Inventory (TRI). This is a publicly available database that contains information on disposal and other releases of toxic chemicals from industrial facilities. Facilities that release toxic chemicals above a certain threshold are required to submit information through the TRI database.

The Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) was adopted in 1947 and amended in 1972 and 1996. It mandates that the EPA regulate the use and sale of pesticides.

To create workplace safety and protect the health of workers, the Occupational Safety and Health Act was adopted in1970. It created the Occupational Safety and Health Administration (OSHA) which creates and enforces regulations on worker safety.

Other federal laws regulating hazardous materials include:
 Community Environmental Response Facilitation Act (CERFA) of 1992 • Clean Water Act
• Clean Air Act
• Safe Drinking Water Act
• Atomic Energy Act
• Toxic Substances Control Act (TSCA)
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 70 In addition to the acts listed above, Executive Order (EO) 12088, Federal Compliance with Pollution Control Standards, mandates that necessary actions be taken to prevent and control environmental pollution when federal activities or federal facilities are involved.

At the state level, California regulates hazardous materials, waste, and substances under the authority of the California Health and Safety Code and is also authorized by the federal government to implement RCRA. California law also addresses specific handling, storage, transportation, disposal, treatment, reduction, cleanup and emergency planning of hazardous waste. The Porter-Cologne Water Quality Control Act also restricts disposal of wastes and requires clean-up of wastes that are below hazardous waste concentrations but could impact ground and surface water quality.

California regulations that address waste management and prevention and clean up contamination include Title 22 Division 4.5 Environmental Health Standards for the Management of Hazardous Waste, Title 23 Waters, and Title 27 Environmental Protection.

The California Department of Toxic Control Substances regulates toxic substances in California. Additionally, the North Coast Regional Water Quality Control Board regulates the cleanup of contaminated sites.

Under 3 CCR Division 6, the California Department of Pesticide Regulation (CDPR) oversees state and federal laws for regulating pesticides. Under MACURSA, CDPR is responsible for:

1. Providing statewide guidance on the use of pesticides in the cultivation of cannabis

2. Providing guidance to the Bureau of Cannabis Control on testing for pesticides

3. Requiring that pesticides being applied to cannabis comply with food and agriculture standards (California Department of Pesticide Regulation, 2022) Additionally, the following state laws regulate hazards and hazardous waste:
 California Accidental Release Prevention Program (CalARP) (CCR Title 19, Division 2, Chapter 4.5) provides requirements for businesses that handle more than a threshold quantity of regulated substances.
 California Fire Code—Hazardous Materials Management Plans and Hazardous Materials Inventory Statements – California Fire Code (29 CCR Part 9) provides requirements and regulations for businesses that handle more than a threshold quantity of hazardous material(s).
 California Emergency Services Act – requires the state to develop a statewide toxic disaster contingency plan that can facilitate an effective, multi-agency response to a situation in which toxic substances are dispersed.  Pesticide Contamination Prevention Act (Sections 13145-13152 of the Food and Agricultural Code)
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 71  Safe Drinking Water and Toxic Enforcement Act (Proposition 65)  The California Fire Code (24 CCR Part 9) – minimum requirements to safeguard the public health, safety, and general welfare from the hazards of fire, explosion, or dangerous conditions in new and existing buildings.

The State of California Department of Cannabis Control (DCC) has specific waste management regulations for cannabis businesses in §17223 of the Medicinal and AdultUse Commercial Cannabis Regulations, California Code of Regulations. §15011. Additional Information. (a) A commercial cannabis business applying for a license to cultivate cannabis shall provide the following information:… (12) For all cultivator license types except processor, a signed attestation that states the commercial cannabis business shall contact the appropriate County Agricultural Commissioner regarding requirements for legal use of pesticides on cannabis prior to using any of the active ingredients or products included in the pest management plan and shall comply with all pesticide laws.
§15408. Sale of Live Plants and Seeds… (b) A licensed retailer shall not apply or use any pesticide on live plants. A licensed retailer shall not cause any pesticide to be applied or used on live plants. §16307. Pesticide Use Requirements
§17209. Grounds, Building, and Manufacturing Premises. (C) Poisonous or toxic materials such as cleaning compounds, sanitizing agents, and pesticide chemicals that are necessary for premises and equipment maintenance and operation shall be handled and stored in a manner that meets the requirements of Health and Safety Code sections 114254.1, 114254.2 and 114254.3
At the local level, the following policies and programs from the Inland General Plan address hazards and hazardous waste:

Safety Goal SF-4 Policy SF-4.1 Minimize Fire Risk in New Development: Review all development proposals for fire risk and require mitigation measures to reduce the probability of fire.

Safety Goal SF-4 Policy SF-4.1 Program SF-4.1.1: Continue to consult the Fort Bragg Fire Protection Authority in the review of development proposals to identify the projected demand for fire protection services and implement measures to maintain adequate fire protection services. Mitigation measures may include levying fire protection impact fees for capital facilities, if warranted.

Safety Goal SF-7 Policy SF-7.1 Protection from Hazardous Waste and Materials: Provide measures to protect the public health from the hazards associated with the transportation, storage, and disposal of hazardous wastes (TSD Facilities).

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 72 Safety Goal SF-7 Policy SF-7.1 Program SF-7.1.1 Continue to ensure that use, transportation, and disposal of hazardous materials are in accordance with the local, State, and Federal safety standards.

Safety Goal SF-7 Policy SF-7.1 Program SF-7.1.2 Continue to support and participate in Mendocino County’s Hazardous Materials Business Plan which requires all businesses using hazardous materials to list the types, quantities, and locations of hazardous materials with the County’s Department of Environmental Health.

Safety Goal SF-7 Policy SF-7.1 Program SF-7.1.3 Require, as a condition of City approvals of non-residential projects, that the Fire Protection Authority be notified of all hazardous substances that are transported, stored, treated, or could be released accidentally into the environment.

Safety Goal SF-7 Policy SF-7.1 Program SF-7.1.4 Require that applications for discretionary development projects that will generate hazardous waste or utilize hazardous materials include detailed information on hazardous waste reduction, recycling, transportation, and storage, and prepare a plan for emergency response to a release or threatened release of a hazardous material.

Safety Goal SF-7 Policy SF-7.1 Program SF-7.1.5 Revise the Zoning Ordinance to require secondary containment facilities and a buffer zone adequate to protect public health and safety on properties with hazardous materials storage and/or processing activities.

Safety Goal SF-7 Policy SF-7.2 Support Environmental Review of Hazardous Waste Transportation, Storage and Disposal Facilities: Support a thorough environmental review for Hazardous Waste Transportation, Storage and Disposal (TSD) Facilities, including waste to energy projects, proposed in the Fort Bragg area Safety Goal SF-7 Policy SF-7.2 Program SF-7.2.1 Require that the environmental review of proposed Hazardous Waste TSD facilities shall, at a minimum, contain the following analysis and information:

The City’s Municipal Code Title 6 Health and Sanitation Chapter 6.24 regulates hazardous materials in the City Limits and Municipal Code Chapter 14.16 Sanitary Code, regulates potential introduction of pollutants into the sanitary sewer network and storm drains. §14.16.090 prohibits pollutants and provides a list. §14.16.090(A)(21) lists a table of toxicants and the maximum allowable concentration in milligrams/liter.

Discussion
The proposed ordinances would establish regulation for cannabis cultivation in industrial zones and make minor modifications to the existing regulations for cannabis business activities in commercial zones. Indoor cannabis cultivation as a land use is comparable in intensity to other allowable/conditionally allowed uses in the industrial zone, namely manufacturing, fish processing, or agricultural product processing. The proposed ordinances do not change the regulatory environment for hazardous materials, nor does it expand the size or locations of zones for industrial or commercial land uses.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 73 All future cultivation applications would be subject to discretionary review and subject to CEQA, including an evaluation of potential hazards and hazardous waste. The current Municipal Code §9.30.050(N) requires detailed operating procedures for:
o How the business will comply with applicable state regulations; o Product safety and quality assurances;
If a future application is received for a proposed commercial cannabis cultivation it would be reviewed to determine if the project would be 1) located on an existing site requiring remediation and/or 2) using substances or materials that may be hazardous. If a proposed application were to have either of these situations potential impacts would be evaluated through the CEQA review process.

The proposed code amendments do not change the regulatory framework or procedures for conducting development review and ensure that future cultivation application are discretionary and subject to CEQA. As an amendment to the existing codes, the project does not propose any physical development and would not result in environmental impact. Therefore, the proposed project will have no impact on hazards and hazardous materials.

References
California Department of Pesticide Regulation. (2022, January 20). Cannabis, Hemp, and Pesticides. Retrieved from:
https://www.cdpr.ca.gov/docs/cannabis/index.htm
California Department of Cannabis Control, “Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19.” Department of Cannabis Control, 2021. https://cannabis.ca.gov/wpcontent/uploads/sites/2/2021/10/DCC-Cannabis-Regulations-Sept.-2021.pdf City of Fort Bragg. (January, 2022). Municipal Code. City of Fort Bragg. Retrieved from https://www.codepublishing.com/CA/FortBragg/#!/FortBraggNT.html City of Fort Bragg. (January, 2022). “Inland General Plan.” Retrieved from:
https://www.city.fortbragg.com/departments/community-development/generalplan-zoning-information/inland-land-use-development-and-general-plan/-folder117 Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 74 Hydrology and Water Quality
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
X. HYDROLOGY AND WATER
QUALITY. Would the project:
a) Violate any water quality standards or
waste discharge requirements or
otherwise substantially degrade surface
or groundwater quality?
☐ ☐ ☐ ☒
b) Substantially decrease groundwater
supplies or interfere substantially with
groundwater recharge such that the
project may impede sustainable
groundwater management of the basin?
☐ ☐ ☐ ☒
c) Substantially alter the existing drainage
pattern of the site or area, including
through the alteration of the course of a
stream or river or through the addition of
impervious surfaces, in a manner which
would:
☐ ☐ ☐ ☒
i) result in substantial erosion or siltation
on- or off-site;
☐ ☐ ☐ ☒
ii) substantially increase the rate or
amount of surface runoff in a manner
which would result in flooding on- or
offsite;
☐ ☐ ☐ ☒
iii) create or contribute runoff water which
would exceed the capacity of existing or
planned stormwater drainage systems or
provide substantial additional sources of
polluted runoff; or
☐ ☐ ☐ ☒
iv) impede or redirect flood flows? ☐ ☐ ☐ ☒
d) In flood hazard, tsunami, or seiche
zones, risk release of pollutants due to
project inundation?
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 75 e) Conflict with or obstruct
implementation of a water quality control
plan or sustainable groundwater
management plan?
☐ ☐ ☐ ☒
Setting
The City of Fort Bragg is located along the Pacific Ocean, in the Mendocino Coast Hydrologic Unit in the Noyo River Hydrologic Area (NCRWQCB, 2022). The City of Fort Bragg spans three watersheds, including the Pudding Creek Watershed, and the Hare Creek Watershed.

The City of Fort Bragg’s water supply comes from three main sources including Waterfall Gulch, Newman Gulch, and the Noyo River. Raw water from the Noyo River is conveyed from the Madsen Hole intake structure, located to the east of the water treatment plant (WTP), and is pumped via 10-inch and 14-inch diameter pipelines directly to the WTP.

According to OPR’s General Plan Guideline Tools, both Pudding Creek, the Noyo River, and the river mouth at Hare Creek are all listed as 303d Waters (see Figure 10). These waters on the list do not meet water quality standards, even after point sources of pollution have installed the minimum required levels of pollution control technology. (OPR, 2022)
Flood Zones
Figure 11 shows the areas of the City at risk for flooding. There are no inland industrial or commercial lands in these areas.

Tsunami Zones
There are areas of the City of Fort Bragg that are potentially within a Tsunami Hazard Zone as seen in Figure 12. However, as seen in this map, the areas subject to Tsunami Hazard are not in the inland zones of the City of Fort Bragg.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 76 Figure 10: 303d Listed Waterways in the City of Fort Bragg Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 77 Figure 11: Flood Risk Map of the City of Fort Bragg
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 78 Figure 12: General Plan Map SF-3 Tsunami Inundation Map for Emergency Planning Source: City of Fort Bragg Inland General Plan
Regulatory Setting
In 1972 Congress amended the Federal Water Pollution Control Act, making the addition of pollutants to the waters of the United States (U.S.) from any point source unlawful unless the discharge is in compliance with a NPDES permit. Known today as the Clean Water Act (CWA), Congress has amended it several times. In the 1987 amendments, Congress directed dischargers of stormwater from municipal and industrial/construction point sources to comply with the NPDES permit program.

Important CWA sections are:

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 79  Sections 303 and 304 require states to promulgate water quality standards, criteria, and guidelines.
 Section 401 requires an applicant for a federal license or permit to conduct any activity, which may result in a discharge to waters of the U.S., to obtain certification from the State that the discharge will comply with other provisions of the act. (Most frequently required in tandem with a Section 404 permit request. See below).
 Section 402 establishes the NPDES, a permitting system for the discharges (except for dredge or fill material) of any pollutant into waters of the U.S. The Federal Environmental Protection Agency delegated to the California State Water Resources Control Board (SWRCB) the implementation and administration of the NPDES program in California. The SWRCB established nine RWQCBs. The SWRCB enacts and enforces the Federal NPDES program and all water quality programs and regulations that cross Regional boundaries. The nine RWQCBs enact, administer and enforce all programs, including NPDES permitting, within their jurisdictional boundaries. Section 402(p) requires permits for discharges of stormwater from industrial, construction, and Municipal Separate Storm Sewer Systems (MS4s).
 Section 404 establishes a permit program for the discharge of dredge or fill material into waters of the U.S, including wetlands. This permit program is administered by the U.S. Army Corps of Engineers (Corps).

The objective of the CWA is “to restore and maintain the chemical, physical, and biological integrity of the Nation’s waters.”
At the State level, the California’s Porter-Cologne Water Quality Control Act, enacted in 1969, provides the legal basis for water quality regulation within California. This Act requires a “Report of Waste Discharge” for any discharge of waste (liquid, solid, or gaseous) to land or surface waters that may impair beneficial uses for surface and/or groundwater of the State. It predates the CWA and regulates discharges to waters of the State. Waters of the State include more than just waters of the U.S., such as groundwater and surface waters not considered waters of the U.S. Additionally, it prohibits discharges of “waste” as defined and this definition is broader than the CWA definition of “pollutant”. Discharges under the Porter-Cologne Act are permitted by WDRs and may be required even when the discharge is already permitted or exempt under the CWA.

The State Water Resources Control Board (SWRCB) adjudicates water rights, sets water pollution control policy, and issues water board orders on matters of statewide application, and oversees water quality functions throughout the state by approving Basin Plans, TMDLs, and NPDES permits. RWCQBs are responsible for protecting beneficial uses of water resources within their regional jurisdiction using planning, permitting, and enforcement authorities to meet this responsibility. (SWRCB, 2022) The SWRCB and for Fort Bragg, the North Coast Regional Water Quality Control Board (NCRWQCB) are responsible for establishing the water quality standards (objectives and beneficial uses) as required by the CWA and regulating discharges to protect beneficial uses of water bodies. Details regarding water quality standards in a project Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 80 area are contained in the applicable NCRWQCB Basin Plan. The NCRWQCB designates beneficial uses for all water body segments in the North Coast Region, and then set standards necessary to protect these uses. Consequently, the water quality standards developed for particular water body segments are based on the designated use and vary depending on such use. Water body segments that fail to meet standards for specific pollutants are included in a Statewide List in accordance with CWA Section 303(d). In the case of the Noyo River, the listing is because of sediment and temperature. Hare Creek is listed due to the presence of indicator bacteria, and Pudding creek is listed because of indicator bacteria and temperature. (NCRWQCB, 2018) Under the National Pollutant Discharge Elimination System (NPDES) Program is the Municipal Separate Storm Sewer Systems (MS4). Section 402(p) of the CWA requires the issuance of NPDES permits for five categories of stormwater dischargers, including MS4s. The U.S. EPA defines an MS4 as “any conveyance or system of conveyances (roads with drainage systems, municipal streets, catch basins, curbs, gutters, ditches, human-made channels, and storm drains) owned or operated by a state, city, town, county, or other public body having jurisdiction over storm water, that are designed or used for collecting or conveying stormwater.”
Construction General Permit (CGP) (NPDES No. CAS000002, SWRCB Order No. 2009-0009-DWQ, adopted on November 16, 2010) became effective on February 14, 2011 and was amended by Order No. 2010-0014-DWQ and Order No. 2012-0006- DWQ. The permit regulates stormwater discharges from construction sites which result in a disturbed soil area of one acre or greater, and/or are smaller sites that are part of a larger common plan of development.

For all projects subject to the CGP, the applicant is required to hire a Qualified Storm Water Pollution Prevention Plan (SWPPP) Developer (QSD) to develop and implement an effective SWPPP. All Project Registration Documents, including the SWPPP, are required to be uploaded into the SWRCB’s on-line Stormwater Multiple Application and Report Tracking System (SMARTS), at least 30 days prior to construction.

Projects that disturb over 1.0 acre but less than 5 acres of soil, may qualify for waiver of CGP coverage. This occurs whenever the R factor of the Watershed Erosion Estimate (=RxKxLS) in tons/acre is less than 5. Within this CGP formula, there is a factor related to when and where the construction will take place. This factor, the ‘R’ factor, may be low, medium or high. When the R factor is below the numeric value of 5, projects can be waived from coverage under the CGP, and are instead covered by the Caltrans Statewide MS4.

Construction activity that results in soil disturbances of less than one acre is subject to this CGP if there is potential for significant water quality impairment resulting from the activity as determined by the NCRWQCB. Operators of regulated construction sites are required to develop a SWPPP, to implement soil erosion and pollution prevention control measures, and to obtain coverage under the CGP. (SWRCB, 2022) In some cases, the NCRWQCB may have specific concerns with discharges associated with a project. As a result, the NCRWQCB may prescribe a set of requirements known Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 81 as WDRs under the State Water Code (Porter-Cologne Act). WDRs may specify the inclusion of additional project features, effluent limitations, monitoring, and plan submittals that are to be implemented for protecting or benefiting water quality. WDRs can be issued to address both permanent and temporary discharges of a project. The project would need CWA Section 404 permit for construction of various Segments of the project.

Also at the state level, CDFW Lake and Streambed Alteration Program or Fish and Game Code section 1602 requires an entity to notify CDFW prior to commencing any activity that may do one or more of the following:
 Substantially divert or obstruct the natural flow of any river, stream or lake.  Substantially change or use any material from the bed, channel or bank of any river, stream, or lake; or
 Deposit debris, waste or other materials that could pass into any river, stream or lake. (CDFW, 2022)
According to CDFW, "any river, stream or lake" includes those that are episodic (they are dry for periods of time) as well as those that are perennial (they flow year-round).

This includes ephemeral streams, desert washes, and watercourses with a subsurface flow. It may also apply to work undertaken within the flood plain of a body of water.

CDFW requires a Lake or Streambed Alteration (LSA) Agreement when it determines that the activity, as described in a complete LSA Notification, may substantially adversely affect existing fish or wildlife resources. An LSA Agreement includes measures necessary to protect existing fish and wildlife resources. CDFW may suggest ways to modify your project that would eliminate or reduce harmful impacts to fish and wildlife resources. Before issuing an LSA Agreement, CDFW must comply with the CEQA. (CDFW, 2022)
The City’s Inland General Plan Open Space Element contains the following relevant policies:

Open Space Goal OS-6 Policy OS-6.3 Minimize Increases in Stormwater Runoff:

Development shall be designed and managed to minimize post project increases in stormwater runoff volume and peak runoff rate, to the extent feasible.

Open Space Goal OS-6 Policy OS-6.3 Program OS-6.3.1: Develop and implement Low Impact Development requirements in the Inland Land Use and Development Code.

Remove regulatory barriers to Low Impact Development from the Inland LUDC where feasible.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 82 Open Space Goal OS-6 Policy OS-6.5 Municipal Activities to Protect and Restore Water Quality: The City shall promote both the protection and restoration of water quality. Water quality degradation can result from a variety of factors, including but not limited to the introduction of pollutants, increases in runoff volume and rate, generation of nonstormwater runoff, and alteration of physical, chemical, or biological features of the landscape.

Open Space Goal OS-6 Policy OS-6.5 Program OS-6.5.2 BMPS for Municipal Maintenance Activities. The City shall ensure that municipal maintenance activities and other public projects integrate appropriate BMPs to protect water quality.

Safety Goal SF-2 Policy SF-2.1 Flood Hazards: Ensure adequate standards for development in the 100-year floodplain.

Safety Goal SF-2 Policy SF-2.1 Program SF-2.1.1 Maintain and update as necessary the zoning and building code standards and restrictions for development in identified floodplains and areas subject to inundation by a 100-year flood. Use the Federal Emergency Management Agency's Flood Insurance Rate Map (FIRM) in the review of development proposals
Safety Goal SF-2 Policy SF-2.1 Program SF-2.1.2: Ensure all development in flood prone areas meet Federal, State, and local requirements.

Safety Goal SF-2 Policy SF-2.2 Storm Drainage: Continue to maintain effective flood drainage systems and regulate construction to minimize flood hazards.

Safety Goal SF-2 Policy SF-2.2 Program SF-2.2.1: Continue to update the City’s Storm Drain Master Plan.

Safety Goal SF-2 Policy SF-2.3 Require development to pay for the costs of drainage facilities needed to drain project-generated runoff.

Safety Goal SF-2 Policy SF-2.3 Program SF-2.3.1 Update and utilize the City’s Drainage Development Impact Fees to ensure that development pays for its proportional share of drainage facilities.

Safety Goal SF-2 Policy SF-2.4 Require, where necessary, the construction of siltation/detention basins to be incorporated into the design of development projects.

Safety Goal SF-2 Policy SF-2.5 Require, as determined by City staff, analysis of the cumulative effects of development upon runoff, discharge into natural watercourses, and increased volumes and velocities in watercourses and their impacts on downstream properties. Include clear and comprehensive mitigation measures as part of project approvals to ensure that new development does not cause downstream flooding of other properties.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 83 Safety Goal SF-2 Policy SF-2.6 Analyze the impacts of and potential flooding issues resulting from Climate Change and rising sea levels on proposed projects located within the 100-year Sea-Level Rise Inundation Area (see Map SF-4).

Additionally, Article 5 Resource Protection of the ILUDC contains Chapter 18.52 which provides standards for the protection of watercourse and riparian resources within the City and Chapter 18.58 Wetland Protection and Restoration.

Discussion
There are numerous laws in place at the federal, state, and local level that regulate and protect hydrology and water quality from construction, development, and ongoing municipal and private operating activities. The proposed ordinances would establish regulation for commercial cannabis cultivation in industrial zones and make minor modifications to the existing regulations for cannabis business activities in commercial zones. The proposed ordinances would not change regulatory setting for hydrology or water quality and no physical development is proposed.

Any future CBP applications proposed in compliance with the proposed amended codes would require a discretionary permit subject to review under CEQA. When a proposed project application is received, it would be reviewed for compliance with all state, regional, and local regulations regarding hydrology and water quality. Activities that involve actions that could potentially affect Waters of the State are subject to discretionary review by the NCRWQCB and compliance with the National Pollution Discharge Elimination System (NPDES) provisions. At the time future cannabis cultivation applications are received, the City’s Public Works/Engineering Department will review proposals and impose conditions or refinements to demonstrate compliance with hydrology and water quality regulation, as warranted.

The project at hand is limited to updating the City’s Municipal Code and Inland Land Use and Development Code to include regulation for commercial cannabis cultivation use in areas of the City where similar types of industrial and commercial uses are conditionally allowed. All existing development standards for industrial and commercial uses established to protect the environment including hydrology and water quality will remain applicable. There is no physical development or other physical changes to the environment that would occur under the proposed code amendments. Therefore, the proposed project will have no impacts on water quality or hydrology.

References
California Department of Conservation. 2009. Mendocino County Tsunami Inundation Maps. Accessed at https://www.conservation.ca.gov/cgs/tsunami/maps/mendocino.

California Department of Fish and Wildlife. (2022, January) Lake and Streambed Alteration Program. Retrieved from:
https://wildlife.ca.gov/Conservation/Environmental-Review/LSA California Department of Transportation (Caltrans). 2020. Caltrans Water Quality Planning Tool. Accessed at http://svctenvims.dot.ca.gov/wqpt/wqpt.aspx.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 84 California Department of Water Resources (DWR). 1982. Mendocino County Coastal Ground Water Study. Northern District.

California State Water Resources Control Board. (2022, January 25). California Waterboards. Retrieved from:
https://www.waterboards.ca.gov/water_issues/programs/
City of Fort Bragg, “Inland General Plan.” 2013.

City of Fort Bragg. 2006. Tsunami Contingency Plan. Retrieved from:
https://city.fortbragg.com/DocumentCenter/View/2362/Tsunami-Contingency-Plan-- Final-PDF.

Cowardin et al. 1979. US Fish and Wildlife Service. Classification of Wetlands and Deepwater Habitats of the United States.

DWR. 1982. Geologic Map of California. Geologic Map Data Series Map No. 2. Sale 1:750,000. California Department of Conservation, Division of Mines and Geology.

DWR. 2004. Fort Bragg Terrace Area Groundwater Basin. California’s Groundwater Bulletin. Bulletin 118. North Coast Hydrologic Region.

Miles and Goudey. 1997. Ecological Subregions of California.

North Coast Regional Water Quality Control Board (NCRWQCB). “2018 303(d) List For the North Coast Region: Impaired Water Bodies (Categories 4a, 4b2, and 5).” 2018.

North Coast Regional Water Quality Control Board (MCRWQCB), (2022. January).

North Coast Regional Water Quality Control Board. Retrieved from:
https://www.waterboards.ca.gov/northcoast/water_issues/programs/ Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 85 Land Use and Planning
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
XI. LAND USE AND PLANNING. Would
the project:
a) Physically divide an established
community?
☐ ☐ ☐ ☒
b) Cause a significant environmental
impact due to a conflict with any land use
plan, policy, or regulation adopted for the
purpose of avoiding or mitigating an
environmental effect?
☐ ☐ ☐ ☒
Regulatory Setting
Land use planning is the long-range planning for the desirable use of land in a City (or other jurisdiction) for the purpose of guiding the development and changes in the use of lands to protect the community health, well-being, and enjoyment of private property.

Early land-use planning authority came from a local government’s ability to enforce nuisance laws until the US Department of Commerce published the States Zoning Enabling Act published in 1924 and the Standard City Planning Enabling Act (SCPEA) published in 1928.

The SZEA had nine sections. It included a grant of power, a provision that the legislative body could divide the local government's territory into districts, a statement of purpose for the zoning regulations, and procedures for establishing and amending the zoning regulations. A legislative body was required to establish a zoning commission to advise it on the initial development of zoning regulations…
The SCPEA covered six subjects:

1. the organization and power of the planning commission, which was directed to prepare and adopt a "master plan"

2. the content of the master plan for the physical development of the territory

3. provision for adoption of a master street plan by the governing body

4. provision for approval of all public improvements by the planning commission

5. control of private subdivision of land

6. provision for the establishment of a regional planning commission and a regional plan (APA, 2022)
In addition to Land Use Planning, there are other types of planning enabled through federal legislation mentioned in the appropriate corresponding sections of this report such as hazard mitigation planning and the housing element of the general plan.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 86 At the State level, Planning and Land Use authorities and regulations are detailed in the California Government Code Title 7 Planning and Land Use [65000 - 66499.58] (Heading of Title 7 amended by Stats. 1974, Ch. 1536.) The Governor’s Office of Planning and Research is the responsible state agency for regulating and enforcing this code. (OPR, 2022)
California state regulation SB 94 allows for local jurisdiction in California to regulate land use and zoning in relation to cannabis. The Medicinal and Adult-Use Cannabis Regulation and Safety Act provides the authority to control and regulate cultivation, distribution, transport, storage, manufacturing, and processing of cannabis. (CCR, 2022) The Department of Cannabis Control (DCC) is responsible for regulating cannabis businesses to ensure that operations are safe, products are contaminant free and labeled appropriately. (DCC, 2021)
The City of Fort Bragg’s inland zones are under the jurisdiction of the City’s Inland General Plan and Title 18 Inland Land Use and Development Code(ILUDC). The inland zones consist of areas outside of the City’s coastal zone and are not under the jurisdiction of the California Coastal Commission.

Element 2 of the Inland General Plan (IGP) is the Land Use Element. The IGP establishes goals, policies and programs to maintain the existing pattern of land uses within the City’s Inland Area while anticipating and providing for future growth and development. (IGP, 2013) The IGP identifies the physical locations of the zones on Map LU-1 (see Figure 13).

The City’s goals, policies, and programs are implemented through the standards and regulations established in the ILUDC. The city’s commercial, industrial, residential, and other zones are established in Article 2 which also provides the land use tables that describe allowable uses, conditionally allowable uses, and uses that are not allowed.

Standards for specific land uses are regulated by Article 4 and Article 10 provides definitions and terminology necessary for interpreting the code.

The City’s Municipal Code and ILUDC currently provide regulation for cannabis retail uses in §18.22.030 and §18.42.057 of the ILUDC which allows for retail cannabis with accessory uses. While the City’s Municipal Code Chapter 9.30 allows for cannabis cultivation, it is not currently defined in the ILUDC or listed as a use in Article 2. Retail cannabis activity currently requires a Cannabis Business Permit and a conditional Minor Use or Use Permit.

Site planning, design standards, and development, resource protection, and the planning permit process are all regulated by the ILUDC. The City’s Zoning Map designates the zoning of all parcels located within the inland zone of the City (See Figure 14).

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 87 Figure 13: General Plan Map LU-1 Land Use Designations
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 88 Figure 14: City of Fort Bragg Land Use Zoning Map
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 89 Cannabis Retail is currently allowed with a Minor Use Permit only in the Central Business District, General Commercial, and the Visitor Highway Commercial in the inland zones and Cannabis Retail – Delivery Only is allowed with a minor use permit as an accessory use in the Light and Heavy Industrial Zones. Currently, §18.42.057(E) says that cannabis retail accessory uses may include manufacturing, distribution, cultivation, and/or processing. While the existing code does not specifically state whether a microbusiness is allowed or not, it states that: accessory uses may include activities that require multiple State cannabis licenses. While this is not well defined, the only way that a cannabis business can have more than one license for the same site is if they have a State cannabis microbusiness license, which is defined by the state as: a licensee that is authorized to engage in cultivation of cannabis on an area less than 10,000 square feet and to act as a licensed distributor, Level 1 manufacturer, and retailer under this division, provided such licensee can demonstrate compliance with all requirements imposed by this division on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the licensee engages in such activities. (DCC, 2022)
Discussion
The proposed ordinances would establish regulation for cannabis cultivation in industrial zones and makes minor modifications to the existing regulations for cannabis business activities in commercial zones, pursuant to SB 94. As noted in the project description commercial indoor cannabis cultivation is comparable to other allowable uses in the industrial zone and will be consistent with the intention, purpose, and activities that are currently allowable.

Cannabis Cultivation
The majority of the City’s industrial land is located in the coastal zone and is currently zoned Timber Industrial (TI), a zoning designation which is only in the Coastal Zone and zoned for the processing of lumber and timber products manufacturing. There are 65 acres zoned either light or heavy industrial in the inland zone. All of the industrial parcels south of Pudding Creek are developed and in use. There are approximately four parcels totaling 18 acres located north of Pudding Creek in the industrial zone that are currently undeveloped.

The proposed amendments to the code would not change the size or location of the parcels that are zoned industrial, and the area available for new development that would be impacted by the proposed amendments is extremely limited. Furthermore, cannabis cultivation is consistent with the uses currently allowed in Table 2-10 Allowed Land Uses and Permit Requirements for Industrial Zoning. The following table shows the current permit requirements for some of the uses in the inland industrial zones:

Table 1: Allowed Land Uses and Permit Requirements for Industrial Zoning Land Use Light Industrial Permit
Requirements
Heavy Industrial Permit
Requirements
Agricultural Product
Processing
Conditional - Use Permit Permitted Use
Brewery/Restaurant Conditional - Use Permit Conditional - Use Permit Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 90 Fish Processing Permitted Use Permitted Use
Manufacturing/Processing
Light
Permitted Use Permitted Use
Manufacturing/Processing
Medium intensity
Conditional - Use Permit Permitted Use
Manufacturing/Processing
– Heavy
Not allowed Conditional – Use Permit
Manufacturing intensity is determined based on characteristics. The following explains the classifications as currently stated in Article 10 of the ILUDC Definitions:

Light Manufacturing Medium
Manufacturing
Heavy Manufacturing
Description Processes involving
and/or producing:
apparel; food and
beverage products;
electronic, optical, and
instrumentation
products; ice; jewelry;
and musical
instruments. Light
manufacturing also
includes other
establishments
engaged in the
assembly, fabrication,
and conversion of
already processed raw
materials into products,
where the operational
characteristics of the
manufacturing
processes and the
materials used are
unlikely to cause
significant impacts on
surrounding land uses
or the community.

Processes that involve
and/or produce
building materials,
fabricated metal
products, machinery,
and/or transportation
equipment, where the
intensity and/or scale
of operations is greater
than those classified
under
“Manufacturing/Proces
sing - Light,” but where
impacts on
surrounding land uses
or the community can
typically be mitigated
to acceptable levels.
processes that involve
and/or produce basic
metals, building
materials, chemicals,
fabricated metals,
paper products,
machinery, textiles,
and/or transportation
equipment, where the
intensity and/or scale of
operations may cause
significant impacts on
surrounding land uses
or the community.

Examples  Clothing/Fabric
 Electronics,
equipment, and
appliances
 Food and beverage
(including breweries
and bottling plants)
 Lumber/wood
product
 Machinery
 Motor
vehicle/transport
 Stone and cut
stone
 Chemical Product
 Glass Product
 Concrete/plaster
 Petroleum
 Paving/roofing
 Plastics
 Primary metal
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 91  Furniture
 Small-scale
manufacturing
 Metal
fabrication/machine
shops
 Paper products
 Structural clay and
pottery
 Pulp (Product)
 textile
Based on the above, indoor commercial cannabis cultivation is similar to other already allowed uses in the industrial zone. With the existing and proposed requirements for water, energy, and odor control in the Municipal Code and the Inland Land Use and Development Code, commercial cannabis cultivation, which requires a discretionary CBP, would be comparable to other allowable uses that do not require a discretionary permit.

The proposed ordinances would only allow for indoor cultivation of cannabis in a fully enclosed and secured structure. Based on the local, regional, and state cannabis cultivation regulations, future CBP projects would not generate significant noise or air quality impacts, and water usage may be comparable to a brewery or bottling plant which is a permitted use. Cannabis cultivation activities would also be similar to fish processing, which is a permitted use, whereas cannabis cultivation will require a minor use permit. Additionally, because cannabis cultivation requires a discretionary permit, any CBP application would undergo review to determine if the project would conflict with surrounding land uses.

Retail and Microbusiness
The proposed changes to the code will change retail cannabis from a Minor Use Permit to a permitted use. However, retail cannabis projects would still be required to obtain a Cannabis Business Permit which is a discretionary permit. The current specific land use standards that apply to a Minor Use Permit in §18.42.057 with the exception of A and E, are now applied under the cannabis business permit. These changes are noted in the Project Description in this document.

When the City developed regulations for cannabis dispensaries in 2019, to ensure land use compatibility, the City Council determined that a minor use permit was required.

Since that time, two dispensaries have been approved and are in operation. There has been no increase in law enforcement calls and no code enforcement complaints related to either of these existing dispensaries, which provides information about compatibility of fully licensed dispensaries in commercial zones. The current existing and operating fully licensed dispensaries have not altered the character of the neighborhood, physically divided the community, or presented other conflicts with the land use plan and policies. Under the proposed ordinances, retail cannabis dispensaries would still need a cannabis business license from the State and a Cannabis Business Permit from the City which is discretionary, but a Minor Use Permit would not be required.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 92 Currently, §18.42.057(E) regulates accessory uses. The proposed amendments to the code will clarify allowable accessory uses with a table and specify the difference between a microbusiness and a retail business with an accessory use. (see ATTACHMENT C).

Many communities experienced an initial “flood” of applications when cannabis was legalized. However, in outreach to other communities, such as Santa Rosa and Ukiah, this initial rush has subsided and is comparable with the application patterns of other retail businesses. In the City of Fort Bragg, there were four initial proposals for cannabis businesses. Two of these have completed their permits and are operating. Two applications are still in process and one additional business has since applied for a permit. The City has not received new applications or inquiries for retail cannabis permits since July 2021. As a precaution to ensure that the number of dispensaries does not become excessive, the proposed changes to the ILUDC 18.22.030 Table 2-6 Allowed Land Uses and Permit Requirements for Commercial Zoning Districts limits the total number of retail cannabis businesses in the Central Business District to no more than three. This ensures that the proposed code amendment will not change the nature of the downtown or conflict with general plan policies intended to retain downtown as the cultural, commercial, and historic center of the City.

The proposed project adds a new conditionally allowable use, indoor commercial cannabis cultivation to the industrial zone and makes minor modifications to the existing regulations for cannabis business activity in commercial zones. It will not modify the size or location of the zoning districts and does not involve any physical changes to the environment. The proposed changes to the municipal code and Inland Land Use and Development Code regulating cannabis are consistent with the goals, policies, and programs in the Inland General Plan. The proposed municipal code and Inland Land Use and Development Code amendments would not conflict with any land use plans, policies, or regulations adopted for the purpose of avoiding or mitigating an environmental effect. Therefore, the proposed project will have no impact on land use planning.

References
American Planning Association. (2022, January 21). Standard State Zoning Enabling Act and Standard City Planning Enabling Act. Retrieved from:
https://planning.org/growingsmart/enablingacts/
State of California, California Code of Regulations Business and Professions Code - BPC. (2021, December) Retrieved from:
https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=BPC&di vision=10.&title=&part=&chapter=1.&article=
City of Fort Bragg, “Inland General Plan.” 2013.

City of Fort Bragg. (2022, January 10). Inland Land Use and Development Code.

Retrieved from
https://www.codepublishing.com/CA/FortBragg/#!/LUC18/FortBraggNT.html Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 93 City of Fort Bragg. (2022, January 10) Zoning Map. Retrieved from:
https://www.city.fortbragg.com/home/showpublisheddocument/734/637710006092 570000
California Department of Cannabis Control. Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19.

September, 2021.

Governor's Office of Planning and Research (OPR). (2022, January 10) About Us:

Responsibilities. Retrieved from: http://opr.ca.gov/about/responsibilities.html State of California (2022, February 2). California Business and Professions Code (BPC) Division 10 Cannabis [26000-26260]. Retrieved from:
https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=BPC& division=10.&title=&part=&chapter=1.&article=
Mineral Resources
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
XII. MINERAL RESOURCES. Would the
project:
a) Result in the loss of availability of a
known mineral resource that would be of
value to the region and the residents of
the state?
☐ ☐ ☐ ☒
b) Result in the loss of availability of a
locally important mineral resource
recovery site delineated on a local
general plan, specific plan or other land
use plan?
☐ ☐ ☐ ☒
Setting
The state of California hosts a rich variety of minerals and rocks. The California Geological Survey provides objective geologic expertise and information about California’s diverse non-fuel mineral resources, producing maps, reports, and other data products to assist governmental agencies. (DOC, 2022) However, as noted in the Geology and Soils Section, the City of Fort Bragg does not have any of these mineral resources that are of either state, regional, or local importance.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 94 Discussion
The proposed ordinances would establish regulation for cannabis cultivation in industrial zones and make minor modifications to the existing regulations for cannabis business activities in commercial zones. Because there are no mineral resources of state, regional, or local importance, the proposed project will have no impact on mineral resources.

References
California Department of Conservation (DOC). (2022, January 21). California's Mineral Resources. Retrieved from California Department of Conservation:
https://www.conservation.ca.gov/cgs/minerals
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 95 Noise
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
XIII. NOISE. Would the project result in:
a) Generation of a substantial temporary
or permanent increase in ambient noise
levels in the vicinity of the project in
excess of standards established in the
local general plan or noise ordinance, or
applicable standards of other agencies?
☐ ☐ ☐ ☒
b) Generation of excessive groundborne
vibration or groundborne noise levels?
☐ ☐ ☐ ☒
c) For a project located within the vicinity
of a private airstrip or an airport land use
plan or, where such a plan has not been
adopted, within two miles of a public
airport or public use airport, would the
project expose people residing or working
in the project area to excessive noise
levels?
☐ ☐ ☐ ☒
Regulatory Setting
Noise is defined as unwanted sound, and thus is a subjective reaction to characteristics of a physical phenomenon. A frequency weighting measure that simulates human perception is commonly used to describe noise environments and to assess impacts on noise-sensitive areas. It has been found that A-weighting of sound levels best reflects the human ear's reduced sensitivity to low frequencies, and correlates well with human perceptions of the annoying aspects of noise. The A-weighted decibel scale (dBA) is cited in most noise criteria. The decibel notation used for sound levels describes a logarithmic relationship of acoustical energy, for example, a doubling of acoustical energy results in an increase of three dB, which is considered barely perceptible. A tenfold increase in acoustical energy equals a ten dB change, which is subjectively like a doubling of loudness.

Several time-averaged scales represent noise environments and consequences of human activities. The most commonly used noise descriptors are equivalent Aweighted sound level over a given time period (Leq); average day-night 24-hour average sound level with a nighttime increase of ten dBA to account for sensitivity to noise during the nighttime; and community noise equivalent level (CNEL), also a 24- Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 96 hour average that includes both an evening and a nighttime weighting. Noise levels are generally considered low when ambient levels are below 45 dBA, moderate in the 45 to 60 dBA range, and high above 60 dBA. Although people often accept the higher levels associated with very noisy urban residential and residential-commercial zones, they nevertheless are considered to be adverse levels of noise with respect to public health because of sleep interference.

The City is the primary agency responsible for regulating noise. The City’s Noise Element in the Inland General Plan includes maximum allowable noise level thresholds for non-transportation projects in Table N-5 from the General plan as shown below:

Table N-5 .Noise Level Performance Standards for New Projects Affected by or Including Non-Transportation Noise Sources
Noise Level Descriptor Daytime
(7 A.M. to 10 P.M.)
Nighttime
(10 P.M. to 7 A.M.)
Hourly Leq dB 55 45
Maximum level, dB 75 65
Note: These noise levels apply to the residential property line nearest the project. Each of the noise levels shall be lowered by five dB for simple tone noises, noises consisting primarily of speech or music, or for recurring impulsive noises. These noise level standards do not apply to residential units established in conjunction with industrial or commercial uses (e.g., caretaker dwellings).

The City’s Municipal Code Chapter 9.44 regulates noise in the City. And, the ILUDC §18.30.050(F)(2) provides screening requirements for mechanical equipment loading docks, and refuse areas. ILUDC §18.30.050(F)(1) provides additional criteria for screening between nonresidential and residential land uses.

Discussion
The proposed ordinances would establish regulation for cannabis cultivation in industrial zones and make minor modifications to the regulations for cannabis business activities in commercial zones. No changes are proposed to Chapter 9.44, which regulates noise, nor screening regulations in 18.30.050.

Commercial cannabis cultivation may utilize equipment that generates exterior noise, such as fans and HVAC systems but these are not expected to be any noisier than other equipment that would ventilate other industrial uses that are allowable or conditionally allowable in both light and heavy industrial. All cannabis related applications would continue to be subject to discretionary review.

All uses within City limits are subject to Chapter 9.44 including new cannabis businesses. At the time a cannabis business permit application is received, it would be reviewed for consistency with the General Plan, zoning, and municipal code, including Chapter 9.44.

Furthermore, CBPs are fully discretionary and all future applications related to cannabis would be subject to review in accordance with CEQA including consideration of changes to the noise environment from construction and operations. With full discretion, the City may impose conditions to regulate noise levels or require refinements of a Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 97 project’s design to comply with the City noise standards, similar to other commercial and industrial activities within city limits.

The proposed ordinances do not change the location or size of the industrial or commercial zones, does not change the noise requirements for discretionary projects, and precludes physical development. Therefore, the project would have no impacts on noise.

References
City of Fort Bragg, “Inland General Plan.” 2013.

City of Fort Bragg. (2022, January). Municipal Code. City of Fort Bragg. Retrieved from https://www.codepublishing.com/CA/FortBragg/#!/FortBraggNT.html Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 98 Population and Housing
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
XIV. POPULATION AND HOUSING.

Would the project:
a) Induce substantial unplanned
population growth in an area, either
directly (for example, by proposing new
homes and businesses) or indirectly (for
example, through extension of roads or
other infrastructure)?
☐ ☐ ☐ ☒
b) Displace substantial numbers of
existing people or housing, necessitating
the construction of replacement housing
elsewhere?
☐ ☐ ☐ ☒
Setting
According to the 2019 American Community Survey (ACS) Demographic and Housing Estimates, the City of Fort Bragg has a total population of 7,302 individuals and a total of 3,148 housing units (US Census Bureau, 2019). As of 2019, the City supported approximately 2.56 people per household (US Census Bureau, 2020). The median household income in 2019 dollars was $44,276 and approximately 59.2% of the population ages 16 and older were in the civilian labor force.

In 2019, the City updated the Housing Element (2019 HE) of the General Plan. The primary goals of the 2019 Fort Bragg Housing Element are to encourage, facilitate, support and help fund:

1. New market rate and affordable housing that serves our residents and businesses in Fort Bragg;

2. New affordable housing that serves our community’s special needs populations;

3. Preservation of our existing housing stock; and

4. New housing that meets our Regional Housing Needs Allocation. (City of Fort Bragg, 2019)
The 2019 HE sets quantified objectives for housing development in the City as required by State law as shown in Table 1.1 from the Housing Element:

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 99 As noted in the table above, the 2019 HE also sets a goal of developing 200 new housing units within 8 years. Like many places in California, there is a shortage of housing. According to Healthy Mendocino, the home ownership rate in Fort Bragg is

32.8% which is low in comparison to the County (56.2%), the State of California (50.5%) and the United States (56.2%).

Discussion
The proposed ordinances would establish regulation for cannabis cultivation in industrial zones and make minor modifications to the existing regulations for cannabis business activities in commercial zones. The proposed ordinances will not change any land that is currently zoned residential to commercial or industrial. It does not include any proposed physical development and would induce substantial unplanned population growth in the City nor displace substantial numbers of existing people or housing.

Housing (with the exception of caretaker quarters and live/work units) is not a permitted use in industrial zones. Adding commercial cannabis cultivation as a conditionally allowable use in the industrial zone would not displace housing.

While the proposed amendment adds a new conditionally allowable use to the ILUDC, it is important to recognize that cannabis cultivation has been occurring in the region for over 50 years. While it is possible that new businesses may be interested in relocating to Fort Bragg, the use is already allowable and well established in the unincorporated areas of the County and many other places in California. Given the remote nature of Fort Bragg, and the number of states and localities that allow commercial cannabis cultivation, it is highly unlikely that there would be enough industry generated to indirectly induce substantial unplanned growth. Further, under the proposed regulation commercial cannabis cultivation proposals require a discretionary permit and would be evaluated at the time an application is received to determine the potential to have either direct or indirect impacts on growth and housing.

The proposed changes to the ordinances will not change the size or location of existing zones and it will not result in physical development. Proposed regulations apply exclusively to commercial and industrial zones and would not change zoning regulation Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 100 for residential uses. Therefore, the proposed project will have no impact on population and housing.

References
City of Fort Bragg, Inland General Plan Element 10 - Housing Element. 2019 US Census Bureau. (2022, January) QuickFacts Fort Bragg City, California. Retrieved from: https://www.census.gov/quickfacts/fortbraggcitycalifornia US Census Bureau. (2022, January) American Community Survey, Fort Bragg city.

Retrieved from: https://data.census.gov/cedsci/all?q=Fort%20Bragg,%20CA Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 101 Public Services
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
XV. PUBLIC SERVICES.
a) Would the project result in substantial
adverse physical impacts associated with
the provision of new or physically altered
governmental facilities, need for new or
physically altered governmental facilities,
the construction of which could cause
significant environmental impacts, in
order to maintain acceptable service
ratios, response times or other
performance objectives for any of the
public services:
☐ ☐ ☐ ☒
Fire protection? ☐ ☐ ☐ ☒
Police protection? ☐ ☐ ☐ ☒
Schools? ☐ ☐ ☐ ☒
Parks? ☐ ☐ ☐ ☒
Other public facilities? ☐ ☐ ☐ ☒
Setting
The Fort Bragg Fire Department (FBFD) provides fire services within the City of Fort Bragg and outlying rural areas. The FBFD responds to approximately 500 to 600 calls per year, varying from structure fires to public assists. The Fort Bragg Fire Protection Authority is responsible for funding, directing, and overseeing the fire department. The FBFD consists of 36 volunteer fire fighters and four auxiliary members. There are three fires stations, located at:
• Main Street Fire Station, 141 N. Main Street
• Highway 20 Substation, 32270 Highway 20 (outside City limits) • Little Valley Fire Company, 33680 Little Valley Road (outside City limits) The Fort Bragg Police Department (FBPD) serves the City of Fort Bragg and outlying rural areas. In 2021, FBPD responded to a total of 15,448 calls for service and wrote 991 Crime Reports associated with those calls for service, resulting in 432 arrests (City of Fort Bragg, 2022). The FBPD headquarters is located at 250 Cypress Street.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 102 The City is served by the Fort Bragg Unified School District (FBUSD) which includes Redwood Elementary School, Dana Gray Elementary School, Fort Bragg Middle School, Fort Bragg High School, Coastal Adult School, and the Alternative Education program. It is also served by Mendocino Community College District.

Additional (non-recreational) public facilities in the inland zone of the City of Fort Bragg relevant to this section includes:
• Fort Bragg Public Library - a branch of the Mendocino County library • Cemetery – there are two cemeteries in the City of Fort Bragg, one north of Pudding Creek and one to the south
• Mendocino Coast District Hospital
Discussion
The proposed ordinances would establish regulation for cannabis cultivation in industrial zones and make minor modifications to the existing regulations for cannabis business activities in commercial zones. All future cannabis application received under the proposed ordinances would be subject to discretionary review, including an evaluation for impacts to public services. In addition, all cannabis business permits undergo a public safety review in which the police department reviews the security plan for the premise.

All new construction or commercial remodel require a building permit. Any future application received for a commercial cannabis business would have to either construct a new building or change an existing commercial or industrial building. Both of which would require a building permit and would have to comply with California Building Codes and the City’s Municipal Code Title 15 Buildings and Construction. (City of Fort Bragg, 2022) The location of future cannabis businesses under the proposed ordinances would be in areas that are already planned for either commercial or industrial development and would similarly be subject to review of capacity for public services to maintain acceptable service ratios, response times or other performance objectives consistent with the City’s General Plan.

The proposed ordinances would establish regulations for a new use in an industrial zone and make minor modifications to existing regulations for cannabis business activity in commercial zones. It would not change the regulatory environment in a manner that would affect policies established for the protection of public health and safety and no physical development is proposed. Therefore, the proposed project will have no impact on public services.

References
Association of Environmental Professionals. (2021). 2021 California Environmental Quality Act Statute & Guidelines. AEP.

Fort Bragg Police Department, (2022). “Fort Bragg Police Department Biennial Report 2020-2021.” City of Fort Bragg Police Department.

California Department of Cannabis Control, “Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19.” Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 103 Department of Cannabis Control, 2021. https://cannabis.ca.gov/wpcontent/uploads/sites/2/2021/10/DCC-Cannabis-Regulations-Sept.-2021.pdf City of Fort Bragg Municipal Code. (2022, January) Title 15. Retrieved from:
https://www.codepublishing.com/CA/FortBragg/#!/FortBragg15/FortBragg15.html Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 104 Figure 15: Map of Public Facilities in the City of Fort Bragg Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 105 Recreation
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
XVI. RECREATION.
a) Would the project increase the use of
existing neighborhood and regional parks
or other recreational facilities such that
substantial physical deterioration of the
facility would occur or be accelerated?
☐ ☐ ☐ ☒
b) Does the project include recreational
facilities or require the construction or
expansion of recreational facilities which
might have an adverse physical effect on
the environment?
☐ ☐ ☐ ☒
Setting
The City of Fort Bragg has two public parks in the inland zone; Otis Johnson Park, a 6- acre riparian zone park with hiking trails and Bainbridge Park, a 2-acre park in the City with an 11,000 square foot playground, basketball court, and tennis court.

Additionally, the City owns the CV Starr Center, an aquatic facility with a leisure pool and competition lap pool and fitness rooms (operated by the Mendocino Parks and Recreation District) and the City Hall Gym, a historic gym located behind city hall.

In the City’s Coastal Zone, the 3.5 mile Coastal Trail stretches from Glass Beach to the Noyo Harbor on 104 acres of land. The City’s coastal parks also include Noyo Beach and Pomo Bluffs Park on the southern bluffs overlooking Noyo Harbor.

Discussion
The proposed ordinances would establish regulation for commercial cannabis cultivation in industrial zones and make minor modifications to the existing regulations for cannabis business activities in commercial zones. The proposed ordinances will not change size or zoning of commercial or industrial land and does not propose any physical development. Any future applications received for proposed cannabis related activities would be conditionally allowable under the proposed code amendments and would require a discretionary permit. Discretionary review would include an assessment of potential impacts to recreation and conditioned accordingly. The proposed ordinances do not alter any established goal, policy, program relating to recreation. Therefore, the proposed changes to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code, will have no impact on recreation.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 106 References
City of Fort Bragg, (2022, January). Local Parks and Aquatic Center. Retrieved from:
https://www.city.fortbragg.com/services/local-parks-aquatic-center Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 107 Transportation
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
XVII. TRANSPORTATION. Would the
project:
a) Conflict with a program, plan,
ordinance or policy addressing the
circulation system, including transit,
roadway, bicycle and pedestrian
facilities?
☐ ☐ ☐ ☒
b) Would the project conflict or be
inconsistent with CEQA Guidelines
section 15064.3, subdivision (b)?
☐ ☐ ☐ ☒
c) Substantially increase hazards due to a
geometric design feature (e.g., sharp
curves or dangerous intersections) or
incompatible uses (e.g., farm
equipment)?
☐ ☐ ☐ ☒
d) Result in inadequate emergency
access?
☐ ☐ ☐ ☒
Setting
The City of Fort Bragg has two state highways, Highway 20 which connects the City to Willits, and Highway 1 which connects the City to southern and northern coastal areas.

All other roads in the City are local or private roads.

The Mendocino Transit Authority (MTA) is responsible for public transportation in and out of Fort Bragg. MTA provides daily service (one bus each direction) from Fort Bragg to inland Mendocino County and Santa Rosa Airport where passengers can transfer to various services that go to the Bay Area and beyond. The MTA’s Coaster also provides service from Fort Bragg south on Highway 1 to Navarro Junction. There are five bus stops in the City limits located for convenience of access to Highway 1, downtown, and Highway 20. Additionally, on-demand, door-to-door service is available in Fort Bragg and Ukiah on MTA buses specially outfitted to meet the transportation needs of paratransit customers. In Fort Bragg, Dial-A-Ride is open to the general public and discounted fares are provided for seniors (62+) and persons with disabilities. MTA customers in Fort Bragg can reserve a Dial-A-Ride bus up to two weeks in advance and at least 24 hours in advance for a guaranteed scheduled ride. (MTA, 2022) Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 108 The City is also home to the Mendocino Railway dba Skunk Train. Historically, the Skunk Train provided rail service from Fort Bragg to Willits carrying passengers and lumber. With the introduction of the modern vehicle, the development of Highway 20, and the abandonment of connecting rail lines from Willits to Eureka, the Skunk Train transitioned from a functional transportation route to a novelty/tourist attraction. In 2013, a tunnel collapse just a few miles east of Fort Bragg eliminated the possibility of the route being used as a means to transporting goods and passengers to and from the Coast. Currently, Mendocino Railway operates a train that travels between Fort Bragg to the tunnel collapse where it turns around and returns to Fort Bragg.

In addition to land transportation, the Noyo Harbor is an all-weather port located mostly outside the City limits in unincorporated Mendocino County. It is the busiest Harbor between Bodega Bay and Humboldt Bay. (Noyo Harbor District, 2019) There is no airport inside the City limits, but the Fort Bragg Airport is a private airport located 2 miles north of the City center and less than a half mile from the most northern boundary of the City limits on North Highway 1. The airport is private use only and requires permission prior to landing. The airport is locally owned with an average of 68 aircraft operating per month made up of 98% local general aviation. The Fort Bragg Airport is regulated by the Federal Aviation Administration. (FAA, 2022) Regulatory Setting
The Federal Government regulates and supports the development of transportation through the Department of Transportation. The State regulates and manages transportation through the California Department of Transportation and the State of California Transportation Commission.

At the state level, a significant change took place on the evaluation of transportation impacts with the passage of SB 743 in 2013. The law required a change from using Level of Service (LOS) as the metric to determine if a project would have significant impacts to the Vehicle Miles Traveled (VMT). (OPR, 2022) Transportation planning is coordinated at the regional level by the Mendocino Council of Governments (MCOG) who prepares the Regional Transportation Plan (RTP) which includes projects in the City of Fort Bragg. The MCOG's Board of Directors also adopt an Overall Work Program (OWP) which typically comprises of 14 work elements including transportation planning projects in the City of Fort Bragg. (MCOG, 2022) The City also sets standards for transportation in the Inland General Plan Element 5 – Circulation. While the State now requires that the metric for transportation related impacts be based on VMT, the City uses Level of Service to determine consistency with the Inland General Plan. This means that projects must meet both criteria when undergoing discretionary review to ensure compliance with the state CEQA process and to be consistent with the City’s General Plan.

Figure 16 shows the Inland General Plan Map of the City Roadway System.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 109 Figure 16: General Plan Map C-1 Existing Roadway System The roads in the City follow a standard system of determining Level of Serve (LOS) on a scale of A (free flowing) to F (excessive delays) as noted in Table C-2 of the Inland General Plan:

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 110 Some of the applicable goals, policies, and programs in the Circulation element might include:

Circulation Goal C-1 Policy C-1.3 Complete Streets: New development, that includes new streets or street segments, shall build multi-modal “complete streets” that are designed for the safety and comfort of cyclists and pedestrians, including children, the elderly, and people with disabilities, consistent with US Department of Transportation complete streets guidelines
Circulation Goal C-1 Policy C-1.3 Program C1.3.2 Through the Capital Improvement Plan and related impact fees, the City shall ensure that adequate funds are provided to maintain the existing circulation network, and where feasible upgrade it to “complete street” design.

Circulation Goal C-2 Policy C-2.2 Coordinate Land Use and Transportation: Ensure that the amount and phasing of development can be adequately served by transportation facilities.

Circulation Goal C-2 Policy C-2.3 Do not permit new development that would result in the exceedance of roadway and intersection Levels of Service standards unless one of the following conditions is met:
a) Revisions are incorporated in the proposed development project which prevent the Level of Service from deteriorating below the adopted Level of Service standards; or b) Funding of pro rata share of the cost of circulation improvements and/or the construction of roadway improvements needed to maintain the established Level of Service is included as a condition or development standard of project approval.

Circulation Goal C-3 Policy C-3.3 High Trip Generating Uses: Traffic studies shall be required for all major development proposals that require a conditional approval, including but not limited to, drive-through facilities, fast food outlets, convenience markets, major tourist accommodations, shopping centers, commercial development, residential subdivisions, and other generators of high traffic volumes that would affect a Level of Service. Traffic studies shall identify, at a minimum:
a) The amount of traffic to be added to the street system by the proposed development; b) Other known and foreseeable projects and their effects on the street system; Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 111 c) The direct, indirect, and cumulative adverse impacts of project traffic on street system operations, safety, and public access to the coast; d) Mitigation measures necessary to provide for project traffic while maintaining City Level of Service standards;
e) The responsibility of the developer to provide improvements; and f) The timing of all improvements.

Circulation Goal C-3 Policy C-3.4 Program C-3.4.1 Review site plans for new development to facilitate the continuation of streets to improve local circulation. Where streets are not feasible, priority shall be given to providing pedestrian and bicycle trails that establish bicycle and pedestrian connections to streets wherever possible.

Circulation Goal C-3 Policy C-3.5 Right-of-Way Acquisition: Require right-of-way dedications for new development to meet the City’s roadway width standards Circulation Goal C-4 Policy C-4.1 Reduce Through-Traffic on Local Streets: Reduce through-traffic on local streets to preserve the peace and quiet of residential areas.

Additionally, ILUDC §18.36.090 and §18.36.100 provide standards for parking design and development and driveways. These standards are intended to ensure safety of the ingress/egress for traffic and sufficient parking to avert traffic hazards or the creation of hazards due to geometric design features.

Discussion
The proposed ordinances would establish regulation for cannabis cultivation in industrial zones and make minor modifications to the existing regulations for cannabis business activities in commercial zones and does not include any physical development. All cannabis related proposals that would be conditionally allowable under the new regulations would be discretionary. While some projects may qualify for a CEQA exemption, such as a fully conforming dispensary in an existing commercial building, all cannabis related projects would be reviewed at the time they are proposed to determine if they would have transportation impacts. All future applications involving cannabis would be evaluated for consistency with the City’s Inland General Plan and the above noted regulations and requirements for transportation. The subject zoning code amendment makes minor modifications to cannabis activities in commercial zones and establishes regulation for commercial cannabis cultivation in industrial zones. There is no physical development under the proposed project and no changes to transportation or circulation. Therefore, the proposed project will have no impact on transportation.

References
City of Fort Bragg, “Inland General Plan.” 2013.

Federal Aviation Administration. (2022, February 8) (82CL) Fort Bragg. Retrieved from:
https://adip.faa.gov/agis/public/#/airportData/82CL
Governor's Office of Planning and Research (OPR). (2022, January 24). Background and Purpose What is SB 743? Retrieved from: https://opr.ca.gov/ceqa/sb743/faq.html#:~:text=Background%20and%20Purpose- ,What%20is%20SB%20743%3F,significant%20impact%20on%20the%20environ ment.&text=VMT%20measures%20how%20much%20actual,would%20create%2 0on%20California%20roads.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 112 Mendocino Council of Governments. 2020 Regional Transportation Improvement Program. Adopted December 2, 2019.

Mendocino Transit Authority (MTA). (2022, January 24). Mendocino Transit Authority.

Retrieved from: https://mendocinotransit.org/
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 113 Tribal Cultural Resources
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
XVIII. TRIBAL CULTURAL
RESOURCES. Would the project cause a
substantial adverse change in the
significance of a tribal cultural resource,
defined in Public Resources Code section
21074 as either a site, feature, place,
cultural landscape that is geographically
defined in terms of the size and scope of
the landscape, sacred place, or object
with cultural value to a California Native
American tribe, and that is:
a) Listed or eligible for listing in the
California Register of Historical
Resources, or in a local register of
historical resources as defined in Public
Resources Code section 5020.1(k), or
☐ ☐ ☐ ☒
b) A resource determined by the lead
agency, in its discretion and supported by
substantial evidence, to be significant
pursuant to criteria set forth in subdivision
(c) of Public Resources Code Section
5024.1. In applying the criteria set forth in
subdivision (c) of Public Resources Code
Section 5024.1, the lead agency shall
consider the significance of the resource
to a California Native American tribe.
☐ ☐ ☐ ☒
Setting
The area in and around the City was traditionally inhabited by the Mato Pomo, a division of the Hokan language-speaking Northern Pomo (Kroeber 1976:222). What anthropologists know of Northern Pomo ethno-geography comes from interviews recorded from Native descendants fifty to one hundred years or more after the contact period with the colonizing Euro-Americans, and the subsequent displacement of these Pomo people from their homelands. Barrett (1908), Kroeber (1925), Heizer (1978), Stewart (1943), Harrington (1942-3), and others provide published anthropological reference sources for the Mato Pomo.

The contact period with the Euro-Americans in northern California was violent and oppressive, as it was for many Native people in California. In 1855, an exploration party Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 114 from the Bureau of Indian Affairs visited the area in search of a site on which to establish a reservation and, the following year, the Mendocino Indian Reservation was established. It spanned an area from the south side of the Noyo River to north of the Ten Mile River, and east to Little Valley and Glen Blair.

In 1857, the Fort Bragg military post was established on the Mendocino Indian Reservation approximately 1.5 miles north of the Noyo River, its purpose was to maintain order on the reservation. Also in 1857, a lumber mill was established on the Noyo River starting what would become the major industry of the region. In 1865, after 300 Native Americans were marched forcibly from the Mendocino Indian Reservation to a reservation in Round Valley, Fort Bragg as a military post was abandoned. (City of Fort Bragg, 2022)
In Sherwood Valley, about thirty miles to the east of the City, the modern day Sherwood Valley Band of Pomo Rancheria includes descendants from the Mato and Little Lake (Willits) Mitom tribelets and villages. Other descendants may also be part of other tribes identified in the Cultural Resources Section of this document.

Regulatory Setting
A tribal cultural resource (TCR) is defined as a site, feature, place, cultural landscape, or sacred place or object that has cultural value to California Native American tribes. In order to be considered a TCR, the resource must be included in or determined eligible for inclusion in the CRHR or is in included in a local register of historical resources.

Pursuant to Public Resource Code [PRC] §2107, a TCR is defined as either:

1. A site, feature, place, cultural landscape, sacred place, or object that has cultural value to California Native American Tribes that is included or determined to be eligible for inclusion in the California Register of Historical Resources (California Register) or a local register of historical resources.

2. A resources determined by the lead agency to be significant and is supported by substantial evidence.

3. A geographically defined cultural landscape that meets the criteria set forth in PRC §21074.

4. A historical resource described in PRC §21084.1, a unique archeological resource or “nonunique archaeological resource” described in PRC §21083.2 (g) and (h).

The CEQA Guidelines state that California Native American tribes traditionally and culturally affiliated with a geographic area may have expertise concerning their TCRs.

Lead agencies shall consult with these tribes who respond in writing and requests the consultation within 30 days of receipt of the formal notification of the project (PRC §21080.3.1). Traditionally and culturally affiliated tribes of a project area may suggest mitigation measures, including, but not limited to, those recommended in §21084.3.

Additionally, the City regulates the discovery, treatment, and preservation of archaeological resources in ILUDC §18.50.030 as detailed in the Cultural Resources discussion of this document.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 115 Discussion
The proposed ordinances would establish regulation for cannabis cultivation in industrial zones and make minor modifications to the existing regulations for cannabis business activities in commercial zones and does not propose any physical development. All future cannabis related proposals would continue be conditionally allowable under the new regulations and subject to review under CEQA. While some future CBP applications may be exempt, all CBP applications would be reviewed at the time they are proposed to determine if they would have a significant impact on Tribal Cultural Resources.

When an application for a discretionary permit is received, it is evaluated to determine if the project is located in an area with the potential for archaeological resources as noted in the above cultural resources section. Discretionary projects are referred to local tribal governments, individuals, and entities, and are invited to comment. A tribe may request an archaeological review, site visit, and/or that a tribal monitor be present on site during ground disturbance, excavation, and construction. The City of Fort Bragg is committed to working with tribes through the AB 52 notice and consultation process to ensure that known and undiscovered tribal cultural resources are protected and any concerns raised through the AB 52 process are adequately addressed.

The proposed code amendments do not change any goals, policies or programs established for the protection of tribal cultural resources, and the proposed amendments do not include any physical development, ground disturbance or other activities that could directly or indirectly affect tribal cultural resources. Therefore, the proposed ordinances will have no impacts on Tribal Cultural Resources.

References
City of Fort Bragg, “Inland Land Use Development Code.” March, 2014.

City of Fort Bragg. (2022, January) City History. Retrieved from:
https://www.city.fortbragg.com/departments/city-clerk/city-history#ad-image-11 State of California, “California Code of Regulations, Title 14, Division 6, Chapter 3, Sections 15000–15387, CEQA Guidelines.” Updated January 1, 2021. http://leginfo.legislature.ca.gov/faces/home.xhtml
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 116 Utilities and Service Systems
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
XIX. UTILITIES AND SERVICE
SYSTEMS. Would the project:
a) Require or result in the relocation or
construction of new or expanded water,
wastewater treatment or storm water
drainage, electric power, natural gas, or
telecommunications facilities, the
construction or relocation of which could
cause significant environmental effects?
☐ ☐ ☐ ☒
b) Have sufficient water supplies
available to serve the project and
reasonably foreseeable future
development during normal, dry and
multiple dry years?
☐ ☐ ☐ ☒
c) Result in a determination by the
wastewater treatment provider which
serves or may serve the project that it has
adequate capacity to serve the project’s
projected demand in addition to the
provider’s existing commitments?
☐ ☐ ☐ ☒
d) Generate solid waste in excess of
State or local standards, or in excess of
the capacity of local infrastructure, or
otherwise impair the attainment of solid
waste reduction goals?
☐ ☐ ☐ ☒
e) Comply with federal, state, and local
management and reduction statutes and
regulations related to solid waste?
☐ ☐ ☐ ☒
Setting
Water
The City’s water system is comprised of three surface water sources; two raw water transmission mains, totaling about 6 miles in length; two raw water storage ponds located at the Water Treatment Plant (WTP); three 1.5 million gallon (MG) steel storage Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 117 tanks, and one 300,000 gallon storage tank; over 30 miles of distribution lines that deliver water throughout Fort Bragg; and one booster pump station for the East Fort Bragg pressure zone. The WTP was originally constructed in the 1950’s, and upgraded in the 1980’s, and has a capacity of 2.2 million gallons per day (MGD).

The City’s water supply system draws raw water primarily from the Noyo River, which has a limitation that pumping does not exceed 3.0 cubic feet per second (cfs). The Noyo River direct diversion flows by gravity into a 5,000 gallon wet well, and is then pumped via pipeline to the WTP from a pump station located on the river bank. The Newman Reservoir is an on-stream reservoir located on a 54-acre parcel owned by the City of Fort Bragg, and impounds water from Newman Gulch. Summers Lane Reservoir (SLR) was constructed in 2016 and has a capacity of 45 acre-feet (AF). It is located on the same property as Newman Reservoir, and draws its water from Waterfall Gulch.

Approximately 20% of the City’s water supply during the summer months is stored water drawn from the Newman and Summers Lane Reservoirs. Water from Newman and Waterfall Gulch is gravity fed through a single six- to ten-inch pipeline to the raw water storage ponds at the WTP.

SLR provides an additional 15 million gallons MG of raw water storage to help ensure a reliable water supply during the late summer months when flows are low at the City’s three water sources (Fort Bragg, December 2019). This additional storage assists in ensuring an adequate water supply during severe drought years. Additionally, in 2021, the City purchased a mobile desalination unit to ensure adequate water supply in severe drought years. (City of Fort Bragg, 2021)
Wastewater System
Sewage treatment and disposal are provided by the Fort Bragg Municipal Improvement District No. 1 (MID). The MID is somewhat larger than the City; it includes some of the Local Agency Formation Commission (LaFCO) proposed Sphere of Influence. The MID accepts wastewater from residences and businesses outside the City boundaries but within the MID boundaries.

The MID wastewater system is comprised of over 25 miles of gravity-fed pipelines and pressure force mains, six sewage lift stations, the Wastewater Treatment Plant (WWTP), and an ocean outfall pipeline that extends 690 feet into the Pacific Ocean.

The WWTP was constructed in 1971 and recently underwent a substantial upgrade which was completed in 2020. It has a secondary treatment level capacity of 0.8 million gallons per day (MGD) for average dry weather flow (ADWF) and 4.9 MGD Peak Hydraulic Flow. The MID completed upgrades to the pump stations in 2020. The City ensures functionality of sewer piping through Cure in Place Projects every other year as part of the Capital Improvement Program.

Storm Drain System
While some of the priority storm drain improvements in the 2004 Storm Drain Master Plan have been implemented, there are additional problems identified in that report that still need to be addressed. In addition, many of the areas north of Pudding Creek and south of the Noyo River generally do not have improved drainage systems in place.

Drainage in these areas is generally provided by natural channels. New development in Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 118 the City is required to either make or pay for improvements necessary to ensure adequate capacity within the storm drain system.

Solid Waste
The City of Fort Bragg has a franchise agreement with a private service provider for the residential and commercial collection, transportation, and disposal of solid waste. This includes recycling and green waste services. Historically, the services have been provided to the City by Waste Management Inc. However, the City put the service out to bid in 2021 and a new provider was selected. Beginning on July 1, 2022, C&S Waste Solutions, which is a subsidiary of Waste Connections will provide the service.

Energy
There are currently two energy providers in the City of Fort Bragg, Pacific Gas and Electric and Sonoma Clean Power (SCP) which is the community choice aggregate energy provider. Both companies offer 100% renewable energy packages in addition to their standard energy portfolios. The City does not have a natural gas pipeline. Propane is available through several independent companies that provide propane tanks and propane gas delivery.

Regulatory Setting
Water
In California, water rights law is administered by the State Water Resources Control Board (SWRCB), it is the only agency with authority to administer water rights in California, but shares the authority to enforce water right laws with the state courts. The SWRCB defines a water right as legal permission to use a reasonable amount of water for a beneficial purpose such as swimming, fishing, farming or industry. The North Coast Regional Water Quality Control Board (NCRWQCB) is the regional agency that regulates water quality for drinking water, ocean discharge, and stormwater. Applicable laws are mentioned in the discussion of hydrology and water quality. (SWRCB, 2022) Waste
In 1989, the State of California passed the Integrated Waste Management Act which is in statute as Division 30 of the Public Resources Code [40000-49654]. The State Agency responsible for regulating and permitting waste management is Cal Recycle which operates under Title 14 and Title 27 of the California Code of Regulations. (CalRecycle, 2022)
The California Department of Cannabis Control (DCC) also regulates waste management specific to cannabis businesses under California Code of Regulations Title 4, Division 19, Chapter 9 [§17223].

At the local level, the City’s Municipal Code regulates solid waste under Chapter 6.08 Refuse and Recyclable Collection. Specific regulations in the current Chapter 9.30 ((§9.30.050(N)(6)) require that cannabis businesses provide a solid waste disposal plan wither certification that waste transport entities and disposal facilities have agreed to haul and receive solid waste produced by the cannabis business.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 119 Energy
Public Utilities, including electrical service providers fall under the authority of the California Public Utilities Commission. The CPUC investigates alleged violations of the Public Utilities Code, CPUC regulations, and other California statutes involving stationary utilities, including telephone (both wireline and wireless), electric, gas and water companies. These investigations generally involve consumer fraud, marketing abuse and other utility misconduct. (CPUC, 2022)
Local Regulations
The Public Facilities Element of the Inland General Plan has goals, policies and programs to manage the impacts of growth on the City’s infrastructure. These can be found in Page 3-3 through 3-6 of the City’s General Plan. Included in these policies are:

Public Facilities Goal PF-1 Ensure that new development is served by adequate public services and infrastructure.

Public Facilities Goal PF-1 Policy PF-1.1 Ensure Adequate Services and Infrastructure for New Development: Review new development proposals to ensure that the development can be served with adequate potable water; wastewater collection, treatment, and disposal; storm drainage; fire and emergency medical response; police protection; transportation; schools; and solid waste collection and disposal.

Public Facilities Goal PF-1 Policy PF-1.2 All new development proposals shall be reviewed and conditioned to ensure that adequate public services and infrastructure can be provided to the development without substantially reducing the services provided to existing residents and businesses.

Public Facilities Goal PF-1 Policy PF-1.2 Program PF-1.2.1: New development shall be responsible for any improvements or extensions of infrastructure or the service capacity necessary to serve the development.

Discussion
The proposed ordinances would establish regulation for commercial cannabis cultivation in industrial zones and make minor modifications to the existing regulations for allowable cannabis business activities in commercial zones. As an amendment to the zoning code, the subject project does not include any physical development. There would be no substantial changes to demands on utilities and services systems relative to the existing code, which currently allows for industrial and commercial business that would generate demand for services and no change in the size or location of where commercial and industrial activities are allowed.

All future cannabis related applications received under the proposed code amendments would be conditionally allowable and subject to discretionary review. Depending on the methods employed, indoor commercial cannabis cultivation can be resource intensive in terms of water and power. A small efficient cultivation may have negligible resource demands whereas a very large inefficient cultivation may result in significant demands for utilities and services. In order to determine whether a project would have an impact Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 120 on water and energy usage, cannabis applicants are currently required under Municipal Code to include the following:
§9.30.050(O)(2) A water usage plan that indicates the planned source of water, month by month annual usage in gallons, and any plans for water conservation which may include water recycling, on-site water storage, development of a well, or use of reclaimed City water;
§9.30.050(O)(3) An energy plan that indicates the estimated monthly energy usage in kilowatt-hours, the source(s) of energy, and any planned energy conservation practices including plans that utilize natural sunlight, solar panels, LED lighting, a community choice aggregate energy provider, or other methods to reduce energy consumption;
The proposed changes to the ILUDC, §18.42.055(B)(3)(b) will require that an applicant provide proof of the utility provider’s ability to provide reliable power to the cultivation.

This will be similar to the current requirement in Municipal Code 9.30.050(N)(6) for waste disposal and is typically received in the form of a letter from the utility provider.

The City’s Public Works/Engineering Department would review the operating plans including an evaluation of both potable and wastewater capacity. The City’s Municipal Code establishes regulation for the efficient use of utilities and service systems including Chapter 14.06 Water Conservation, Chapter 14.17 Wastewater, and Chapter

12.14 Drainage Facility Improvements. As part of the cannabis business permit review process, the City would review applications for consistency with the General Plan and Municipal Code including the capacity of utility and services systems to serve the proposed project. Furthermore, in addition to design standard for new construction, as required in the General Plan, development impacts fees are collected to fund the maintenance of the water and wastewater systems as it is built out.

As stated previously, the proposed code amendment adds cannabis cultivation as a conditionally allowable use to the industrial zones and make minor modifications to existing regulations for cannabis business activities in commercial zones. There is no change to the location or size of the zones and there is no proposed physical development. Therefore, the project will have no impacts on utilities and service systems.

References
California Public Utilities Commission (CPUC). (2022, January 26). Utility Enforcement Branch. Retrieved from California Public Utilities Commission (CPUC):
https://www.cpuc.ca.gov/regulatory-services/enforcement-and-citations/utilityenforcement-branch CalRecycle. (2022, January 25). CalRecycle Legislation and Regulations. Retrieved from CalRecycle: https://calrecycle.ca.gov/Laws/
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 121 California State Water Resources Control Board. (2022, January 25). California Waterboards. Retrieved from California Waterboards:
https://www.waterboards.ca.gov/water_issues/programs/
City of Fort Bragg. (2022, January 24). Municipal Code. City of Fort Bragg:
https://www.codepublishing.com/CA/FortBragg/#!/FortBraggNT.html City of Fort Bragg (2013). Inland General Plan. City of Fort Bragg.

City of Fort Bragg. “News Release: Water Desalination System Ribbon Cutting Ceremony.” October 6, 2021.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 122 Wildfire
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
XX. WILDFIRE. If located in or near state
responsibility areas or lands classified as
very high fire hazard severity zones,
would the project:
a) Substantially impair an adopted
emergency response plan or emergency
evacuation plan?
☐ ☐ ☐ ☒
b) Due to slope, prevailing winds, and
other factors, exacerbate wildfire risks,
and thereby expose project occupants to,
pollutant concentrations from a wildfire or
the uncontrolled spread of a wildfire?
☐ ☐ ☐ ☒
c) Require the installation or maintenance
of associated infrastructure (such as
roads, fuel breaks, emergency water
sources, power lines or other utilities) that
may exacerbate fire risk or that may
result in temporary or ongoing impacts to
the environment?
☐ ☐ ☐ ☒
d) Expose people or structures to
significant risks, including downslope or
downstream flooding or landslides, as a
result of runoff, post-fire slope instability,
or drainage changes?
☐ ☐ ☐ ☒
Wildfire Setting
Most of the City of Fort Brag is located outside of high fire risk zones but there are some areas showing high risk in Figure 17 and in Figure 18.

The City of Fort Bragg has an evacuation map (see Figure 19) which would be used in the event of a wildfire or other emergency to evacuate the City.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 123 Figure 17: CalFire Fire Threat in the City of Fort Bragg Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 124 Figure 18: California Public Utilities Commission High Fire Threat Map Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 125 Figure 19: City of Fort Bragg Evacuation Map
Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 126 Regulatory Setting
Wildfires are a hazard and fall under the same authority at the federal level as other hazards (see above Hazards and Hazardous Materials section).

Since 1995, the Office of the State Fire Marshal (OSFM) supports the CAL FIRE mission to protect life and property through fire prevention engineering programs, law and code enforcement and education. The OSFM provides for fire prevention by enforcing fire-related laws in state-owned or operated buildings, investigating arson fires in California, licensing those who inspect and service fire protection systems, approving fireworks as safe and sane for use in California, regulating the use of chemical flame retardants, evaluating building materials against fire safety standards, regulating hazardous liquid pipelines, and tracking incident statistics for local and state government emergency response agencies. (Cal Fire, 2022) Cal Fire has a local station at 802 N Main St. in the City limits.

The City is also part of the Fort Bragg Fire Protection Authority. Goal SF-4 - Reduce fire hazards of the Inland General Plan Element 7- Safety has specific policies and programs to reduce fire hazards:

Safety Goal SF-4 Policy SF-4.1 Minimize Fire Risk in New Development: Review all development proposals for fire risk and require mitigation measures to reduce the probability of fire.

Safety Goal SF-4 Policy SF-4.2 Maintain a High Level of Fire Protection: Work with the Fire Protection Authority to ensure a continued high level of fire protection.

Safety Goal SF-4 Policy SF-4.2 Program SF-4.2.1: Increase water main sizes or loop existing water mains where necessary to provide adequate flows for fire protection. The standard for water flow for fire protection purposes in commercial uses should be a minimum of 1,000 gallons per minute for 2 hours with 20 pounds per square inch residual pressure.

Safety Goal SF-4 Policy SF-4.2 Program SF-4.2.2 Develop a plan to provide sprinklers for commercial structures in the Central Business District. The plan shall include consideration of City funding to construct risers for this area.

Safety Goal SF-4 Policy SF-4.2 Program SF-4.2.3 Work with the Fort Bragg Fire Protection Authority to establish a regular schedule for periodic inspections of commercial and industrial premises by the Fire Prevention Officer.

The City regulates fire safety through the Municipal Code Title 15 Building and Construction Chapter 15.05 California Fire Code, Chapter 15.06 Fire Sprinklers, as well as Chapter 6.20 Burning Regulations and Restrictions of the Health and Sanitation Code. Additionally, §6.12.040(E)(3) of the Municipal Code delares that overgrown Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 127 vegetation causing a fire hazard is subject to abatement requirements and violation penalties in Chapter 6.12 Nuisances.

All future CBP applications would be conditionally allowable under the new regulations and would be subject to discretionary review, including an assessment of wildfire risk.

All commercial/industrial remodel or new construction projects require a building permit, all of which are reviewed by the Fire Marshall at the Fort Bragg Fire Department. The Fire Marshall is responsible for placing conditions on projects to ensure that it meets the City’s Fire Code, California Fire Code, and does not increase the risk of fire in the City.

All new and remodeled construction are further subject to review by the building official including compliance with the California Building Code.

The proposed ordinances will not change the rules or regulations that protect the community from wildfire. The proposed ordinances do not propose any physical development and applies exclusively to properties that are already zoned to allow for commercial or industrial uses. All future development projects would be subject to the existing regulations, compliance with the California Building Code and the Fire Code.

Therefore, the proposed project would have no impact on wildfire hazards.

References
CA Governor's Office of Planning and Research. (2022, January 21). OPR General Plan Guidelines Tool. Retrieved from: http://maps.gis.ca.gov/cageneralplan/map.aspx California Public Utilities Commission (CPUC). (2022, January 26). Fire Threat Map.

Retrieved from California Public Utilities Commission (CPUC):
https://capuc.maps.arcgis.com/apps/webappviewer/index.html?id=5bdb921d747 a46929d9f00dbdb6d0fa2
Cal Fire. (2022, January 25). Cal Fire - About Us. Retrieved from Cal Fire:
https://www.fire.ca.gov/about-us/
City of Fort Bragg. (2022, January 24). Municipal Code. City of Fort Bragg:
https://www.codepublishing.com/CA/FortBragg/#!/FortBraggNT.html City of Fort Bragg (2013). Inland General Plan. City of Fort Bragg.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 128 Mandatory Findings of Significance
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
XXI. MANDATORY FINDINGS OF
SIGNIFICANCE.
a) Does the project have the potential to
substantially degrade the quality of the
environment, substantially reduce the
habitat of a fish or wildlife species, cause
a fish or wildlife population to drop below
self-sustaining levels, threaten to
eliminate a plant or animal community,
substantially reduce the number or
restrict the range of a rare or endangered
plant or animal or eliminate important
examples of the major periods of
California history or prehistory?
☐ ☐ ☐ ☒
b) Does the project have impacts that are
individually limited, but cumulatively
considerable? (“Cumulatively
considerable” means that the incremental
effects of a project are considerable when
viewed in connection with the effects of
past projects, the effects of other current
projects, and the effects of probable
future projects)?
☐ ☐ ☐ ☒
c) Does the project have environmental
effects which will cause substantial
adverse effects on human beings, either
directly or indirectly?
☐ ☐ ☐ ☒
Regulatory Setting
The federal, state, and City governments have existing laws and regulations in place that regulate and manage development to define, prevent, and/or mitigate environmental impacts. Cannabis business activity is heavily regulated by the State of California Department of Cannabis Control (DCC). As discretionary projects, all projects proposed in the City limits are subject to review under CEQA, though some projects (such as a cannabis dispensary in an existing retail building) may be found to Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 129 be exempt. Any proposed project is subject to the City’s regulations in the Municipal Code and Inland Land Use Development Code.

And, as previously noted, the Department of Cannabis Control Regulations include §16304. General Environmental Protection Measures which says:
(a) All licensed cultivators shall comply with all of the following environmental protection measures:
(1) Principles, guidelines, and requirements adopted pursuant to section 13149 of the Water Code and implemented by the State Water Resources Control Board, Regional Water Quality Control Boards, or California Department of Fish and Wildlife;
(2) Any conditions of licensure included pursuant to section 26060.1(b)(1) of the Business and Professions Code;
(3) Requirements of section 7050.5(b) of the Health and Safety Code if human remains are discovered during cultivation activities; (4) Requirements for generators pursuant to section 16306; (5) Requirements for pesticides pursuant to section 16307; (6) Outdoor lights used for safety or security purposes are shielded and downward facing; and
(7) Lights used for indoor or mixed-light cultivation are shielded from sunset to sunrise to reduce nighttime glare.

Authority: Section 26013, Business and Professions Code. Reference:

Sections 26013, 26060, 26066 and 26201, Business and Professions Code.

Discussion
The proposed code amendments do not change the environmental protections established in the City’s codes for the protection of habitat, cultural resources, and public health and safety. There is no proposed change to the size or location of the industrial or commercial zones and as a zoning text amendment, the project does not include any physical development. The proposed code amendments will add regulations for a conditionally allowable use to the industrial zones and make minor modifications to existing regulations for cannabis businesses in the commercial zones. All proposed cannabis business activity is subject to a cannabis business permit, which is fully discretionary. Because these regulations are in place and will apply to future projects, the addition of a new conditional use and the minor modifications to existing regulations for cannabis business activity in commercial zones will not have cumulative impacts on the environment, directly or indirectly. Therefore, there would be no impacts under the proposed zoning text amendment relative to the existing zoning code.

Negative Declaration & Initial Study for Amendments to the Municipal Code Chapter 9.30 and the Inland Land Use and Development Code to Regulate Cannabis Businesses P a g e | 130 Attachments
Attachment A Proposed Amendments to City of Fort Bragg Municipal Code Chapter 9.30 Cannabis Businesses
Attachment B Proposed Amendments to ILUDC Chapter 2 Including Revised Section §18.22.030 Commercial District Land Uses and Permit Requirements and Revised Section §18.42.030 Industrial Land Uses and Permit Requirements
Attachment C Proposed Amendments to ILUDC Chapter 4 Including New §18.42.055 Cannabis Cultivation, Revised §18.42.057 Cannabis Retail, and New §18.42.058 Cannabis Microbusiness
Attachment D Proposed Amendment to ILUDC Chapter 10 Definitions Including New and Revised Definitions in §18.100.020
Attachment E MCAQMD Adopted Air Quality CEQA Thresholds of Significance Attachment F State of California Department of Cannabis Control Regulations DRAFT CHAPTER 9.30

CANNABIS BUSINESSES
Section

9.30.010 Purpose and intent

9.30.020 Definitions

9.30.030 Limitations on use

9.30.040 Cannabis businesses permit

9.30.050 Applications

9.30.060 Time limit for filing application for permit

9.30.070 Term of permits and renewals

9.30.080 Fees

9.30.090 Public safety review and action on application

9.30.100 Grounds for denial of application

9.30.110 Appeal from Community Development Department decision to deny application

9.30.120 Processing of cannabis business permit

9.30.130 Operating requirements

9.30.140 Commercial cannabis cultivation

9.30.150 Minors

9.30.160 Display of permit

9.30.170 Registration of new employees

9.30.180 Transfer of permits

9.30.190 Suspension and revocation – notice

9.30.200 Suspension and revocation – grounds

9.30.210 Suspension and revocation – appeals

9.30.220 Suspension or revocation without hearing

9.30.230 Separate offense for each day

9.30.240 Public nuisance

9.30.250 Criminal penalties

9.30.260 Civil injunction

9.30.270 Administrative remedies

9.30.280 Severability

9.30.010 PURPOSE AND INTENT.

It is the purpose and intent of this chapter to regulate cannabis businesses in order to promote the health, safety, morals, and general welfare of the residents and businesses within the City.

9.30.020 DEFINITIONS.

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning:

APPLICANT. A person who is required to file an application for a permit under this chapter, including an individual owner, managing partner, officer of a corporation, or any other agent of a cannabis business.

ATTACHMENT A
CANNABIS. 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 hereafter be discovered or developed that has psychoactive or medicinal properties, whether growing or not, including the seeds thereof. “Cannabis” also means cannabis as defined by § 11018 of the Health and Safety Code and by other state law. “Cannabis” does not mean “industrial hemp” as defined by § 11018.5 of the Health and Safety Code.

CANNABIS BUSINESS. An entity engaged in the cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products for commercial purposes.

CANNABIS MANUFACTURING. 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.

CANNABIS OPERATOR or OPERATOR. The person or entity that is engaged in the conduct of any commercial cannabis business.

CANNABIS PRODUCT. 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 RETAIL. A cannabis business where cannabis or cannabis products are offered, either individually or in any combination, for retail sale directly to customers. The primary use of a cannabis retail business is to sell products directly to on-site customers. Sales may also be conducted by delivery. Also known as a cannabis “dispensary.”
CANNABIS RETAIL – DELIVERY ONLY. A cannabis business that is closed to the public and conducts sales exclusively by delivery.

CHIEF OF POLICE. The Chief of Police of the City of Fort Bragg or the authorized representatives thereof.

CLONE. A portion of a stem that is cut from a parent plant and induced to form roots by chemical, mechanical, or environmental manipulations.

COMMERCIAL CANNABIS CULTIVATION. The planting, growing, and harvesting of cannabis plants that are intended to be transported, processed, distributed, dispensed, delivered or sold.

COMMUNITY DEVELOPMENT DIRECTOR. The Director of the Community Development Department of the City of Fort Bragg or the authorized representatives thereof.

EDIBLE CANNABIS PRODUCT. A cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with § 32501) of the Food and Agricultural Code.

FULLY ENCLOSED AND SECURE STRUCTURE (FESS). A building or a space within a building that complies with the California Building Code, that has a complete roof enclosure supported by connecting walls extending from the ground to the roof, a foundation, slab or equivalent base to which the floor is secured by bolts or similar attachments, is secure against unauthorized entry, and is accessible only through 1 or more lockable doors. Walls and roofs must be constructed of solid materials that cannot be easily broken through. Plastic sheeting, regardless of gauge, or similar products do not satisfy this requirement. If indoor grow lights or air filtration systems are used, they must comply with all applicable building, electrical, and fire codes.

GREENHOUSE. A completely enclosed structure whose structure members are made of preformed, rigid construction materials. The walls, roof, and ends are typically covered using a transparent material, often glass, that is fixed in place and which allows solar radiation to penetrate the surface and affect the growing environment of the plants inside.

HOOP HOUSE. A structure with structure members made of flexible and somewhat rigid construction materials, typically PVC pipe or similar material. The ends may be covered or left open and the material covering the structural members is readily removable and is typically removed and re-affixed frequently.

IMMATURE PLANT or IMMATURE. A cannabis plant that has a first true leaf measuring greater than one-half (0.5) inch long from base to tip (if started from seed) or a mass of roots measuring greater than one-half (0.5) inch wide at its widest point (if vegetatively propagated), but which is not flowering.

INDOORS or INDOOR CULTIVATION. The cultivation of cannabis within a fully enclosed and secure structure. This includes mixed-light or greenhouse cultivation within a fully enclosed and secure structure.

MATURE PLANT or MATURE. A cannabis plant that is flowering.

MULTI-TIER CULTIVATION. A cultivation that uses interior fixtures or shelving to cultivate multiple levels of plants within a FESS.

NURSERY. All activities associated with producing clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.

OUTDOOR or OUTDOOR CULTIVATION. Any cultivation that is not within a fully enclosed and secure structure. This includes hoop houses, and other structures that do not meet the definition of a fully enclosed and secure structure.

PERMITTEE. A person who holds an effective and current permit under this chapter.

PROCESS and PROCESSING. All activities associated with the drying, curing, grading, trimming, rolling, storing, packaging, and labeling of cannabis or non-manufactured cannabis products.

RETAIL CANNABIS – DELIVERY ONLY. The commercial transfer of cannabis or cannabis products to a consumer. “Delivery” also includes the use of any technology platform owned and controlled by a cannabis business operator that enables customers to arrange for or facilitate the commercial transfer by a permitted cannabis retail facility.

VOLATILE SOLVENT. Any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.

9.30.030 LIMITATIONS ON USE.

A. Compliance with City Code. Cannabis businesses shall only be allowed in compliance with this chapter and all applicable regulations promulgated by the City of Fort Bragg, including but not limited to all regulations governing building, grading, plumbing, septic, electrical, fire, hazardous materials, nuisance, and public health and safety.

B. Compliance with State Laws and Regulations. Cannabis businesses shall comply with all applicable state laws and regulations, as may be amended, including all permit, approval, inspection, reporting and operational requirements, imposed by the state and its regulatory agencies having jurisdiction over cannabis and/or cannabis businesses. All cannabis businesses shall comply with the rules and regulations for cannabis as may be adopted and as amended by any state agency or department including, but not limited to, the Bureau of Cannabis Control, the Department of Food and Agriculture, the Department of Public Health, the Department of Pesticide Regulation, and the Board of Equalization.

C. Cannabis businesses shall provide copies of state, regional and local agency permits, approvals or certificates upon request by the City to serve as verification for such compliance.

D. Cannabis business permits are only valid for 1 year from date of issue but may be renewed as set forth in this chapter.

E. Cannabis business permits are discretionary and valid only for the cannabis business activities specified on the approved permit.

9.30.040 CANNABIS BUSINESSES PERMIT.

A. It shall be unlawful for any person to engage in, conduct or carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the City the commercial cultivation, processing, manufacture, distribution or retail sale of cannabis without a valid cannabis business permit from the City and a license from the State of California as herein required.

B. Cannabis businesses shall not be established or maintained except as authorized by the Inland Land Use and Development Code and/or the Coastal Land Use and Development Code, as applicable.

C. Dual Licensing. State law requires dual licensing at the state and local level for cannabis businesses. All cannabis operators shall therefore be required to obtain a cannabis license from the State of California, and shall comply at all times with all applicable state licensing requirements and conditions. Cannabis businesses shall not be allowed to commence operations until the cannabis business can demonstrate that all necessary state licenses and agency permits have been obtained.

D. Failure to demonstrate dual licensing in accordance with this chapter shall be grounds for revocation of City approval. Revocation of a local permit and/or a state license shall terminate the ability of the cannabis business to operate until a new permit and/or state license is obtained.

9.30.050 APPLICATIONS.

Any application for a cannabis business permit shall be filed with the Community Development Department and may be filed concurrently with an application for a conditional use permit or a business license application. The application shall be made under penalty of perjury. Any application for a cannabis business permit shall include the following information:

A. The full name, present address, and telephone number of the applicant; B. The address to which notice of action on the application and all other notices are to be mailed; C. Previous addresses for the past 5 years immediately prior to the present address of the applicant;
D. Written proof that the applicant is over 21 years of age; E. Photographs for identification purposes (photographs shall be taken by the Police Department); F. A copy of all the applicant’s valid state cannabis license(s) or copy of the complete pending cannabis application(s) related to the permit;
G. The cannabis business history of the applicant, including whether the applicant, in previously operating in any city, county, or state under permit, has had a permit revoked or suspended and, if so, the reason therefor;
H. The name or names of the person or persons having the management or supervision of the cannabis business;
I. Whether the person or persons having the management or supervision of the cannabis business have been convicted of a crime(s), the nature of the offense(s), and the sentence(s) received therefor;
J. A security plan ensuring the safety of employees and visitors from criminal activity, including theft and unauthorized entry;
K. A sketch or diagram showing the interior configuration of the premises, including a statement of the total floor area occupied by the cannabis business and the purpose and security of each room or area of operation;
L. A diagram illustrating the use and coverage of security cameras, security lighting, and necessary access restrictions;
M. A notarized statement by the property owner certifying under penalty of perjury that he or she has given consent to the applicant to operate a cannabis business at the location, or providing proof that the applicant owns the property;
N. Detailed operating procedures, which shall include the following:

1. Proposed hours of operation;

2. How the business will comply with applicable state regulations;

3. Product safety and quality assurances;

4. Record keeping procedures;

5. Product recall procedures;

6. A solid waste disposal plan, with certification that waste transport entities and disposal facilities have agreed to haul and receive solid waste produced by the cannabis business;

7. Product supply chain information (cultivation, testing, transportation, manufacturing, packaging and labeling, etc.);

8. An odor prevention plan, illustrating how the cannabis business will be consistent with § 17.30.080(J) and/or § 18.30.080(J). The odor prevention plan may include an odor absorbing ventilation and exhaust system or other measures to ensure the use does not produce odors which are disturbing to people of normal sensitivity residing or present on adjacent or nearby property or areas open to the public; and

9. Other information as required by the Community Development Director or the Chief of Police as necessary to ensure the project’s compliance with local, state and federal regulations;
O. Applications for a permit to conduct commercial cannabis cultivation shall include the following additional elements:

1. Drawings and plan specifications for the exact location and exact size of the fully enclosed and secure structure where any cannabis will be cultivated including seeds, clones, immature, and mature plants. Specifications shall include any plans for multi-tier cultivation;

2. A water usage plan that indicates the planned source of water, month by month annual usage in gallons, and any plans for water conservation which may include water recycling, onsite water storage, development of a well, or use of reclaimed City water;

3. An energy plan that indicates the estimated monthly energy usage in kilowatt-hours, the source(s) of energy, and any planned energy conservation practices including plans that utilize natural sunlight, solar panels, LED lighting, a community choice aggregate energy provider, or other methods to reduce energy consumption; and

4. Any other information required by the Community Development Department; P. Authorization for the City, its agents and employees to seek verification of the information contained within the application; and
Q. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct.

9.30.060 TIME LIMIT FOR FILING APPLICATION FOR PERMIT.

If the applicant has completed the application improperly, or if the application is incomplete, the Community Development Director shall, within 30 days of receipt of the original application, notify the applicant of the fact and, on request of the applicant, grant the applicant an extension of time of 30 days or more to submit a complete application.

9.30.070 TERM OF PERMITS AND RENEWALS.

Cannabis business permits issued under this chapter shall expire 1 year following their issuance.

Cannabis business permits may be renewed by the Community Development Director for additional 1-year periods upon application by the permittee, unless the permit is suspended or revoked subject to § 9.30.200. Applications for renewal shall be made at least 45 days before the expiration date of the permit and shall be accompanied by the nonrefundable fee referenced in § 9.30.080. When made less than 45 days before the expiration date, the expiration of the permit will not be stayed.

Applications for renewal shall be acted on as provided herein for action upon applications for permits. The Chief of Police may recommend to deny an application for renewal based on any of the grounds referenced in §§ 9.30.100 and 9.30.200. An applicant aggrieved by the Community Development Director’s decision to deny a renewal of a cannabis business permit may appeal pursuant to § 9.30.110.

9.30.080 FEES.

Every application for a cannabis business permit or renewal shall be accompanied by a nonrefundable fee, as established by resolution adopted by the City Council from time to time. This application or renewal fee is in addition to fingerprinting, photographing, and background check costs and shall be in addition to any other permit fee imposed by this code or other governmental agencies. Fingerprinting, photographing, and background check fees will be as established by resolution adopted by the City Council from time to time.

A. The fee schedule is intended to allow recovery of all costs incurred by the City in processing permit applications to the maximum extent allowed by the law.

B. Timing of Payment. No application shall be deemed complete, and processing shall not commence on any application until all required fees or deposits have been paid. Failure to timely pay supplemental requests for payment of required fees and/or deposits shall be a basis for denial or revocation of any permit.

C. Refunds and Withdrawals. Application fees cover City costs for public hearings, mailings, staff time, and the other activities involved in processing applications. Therefore, no refund due to a disapproval shall be allowed. In the case of a withdrawal, the Director shall have the discretion to authorize a partial refund based upon the prorated costs to date and the status of the application at the time of withdrawal.

9.30.090 PUBLIC SAFETY REVIEW AND ACTION ON
APPLICATION.

After the application is deemed complete and the fees or deposits have been collected, the Community Development Director will send the completed application to the Chief of Police for public safety review. The Chief of Police or his designee shall conduct a background check of the applicant and conduct a public safety review of the proposed project. After the background checks and public safety review are complete, the Chief of Police or his designee shall formally recommend either approval or denial of the application.

If an application is recommended for denial by the Chief of Police or his designee, the Community Development Director shall not approve the application. The applicant will be notified by a letter sent by certified mail and will have 30 days to modify the existing application. If the application is not modified within 30 days and the applicant has not requested more time, it will be denied by the Community Development Director.

The Chief of Police or his designee may recommend conditional approval of an application with specific requirements that the applicant shall meet. The Community Development Director will require the fulfillment of the conditions prior to final issuance of the permit.

9.30.100 GROUNDS FOR DENIAL OF APPLICATION.

The grounds for a denial of a cannabis business permit application shall be 1 or more of the following:

A. The business or conduct of the business at a particular location is prohibited by any local or state law, statute, rule, or regulation;
B. The applicant has violated any local or state law, statute, rule, or regulation respecting a cannabis business;
C. The applicant has knowingly made a false statement of material fact or has knowingly omitted to state a material fact in the application for a permit; D. The applicant, owner, or permittee has a criminal history that falls under the Business and Professions Code § 26057(b)(4), (5), (6) or (7) with the exception of criminal activity that falls under Business and Professions Code § 26059;
E. The applicant has engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices;
F. The applicant is under 21 years of age;
G. The cannabis business does not comply with Title 17, Coastal Land Use Development Code, or Title 18, Inland Land Use and Development Code;
H. The required application or renewal fees have not been paid; or I. The applicant’s plan fails to comply with § 9.30.130 and, if applicable, § 9.30.140 or § 9.30.150.

9.30.110 APPEAL FROM COMMUNITY DEVELOPMENT
DEPARTMENT DECISION TO DENY APPLICATION.

The Community Development Director shall cause a written notice of decision to deny a cannabis business permit application to be mailed to the applicant by certified U.S. mail, postage prepaid, return receipt requested, to the address provided by the applicant for sending of notices. An applicant aggrieved by the decision to deny an application may appeal the decision in accordance with the procedures described in Chapter 1.08. If an appeal is not taken within such time (15 days), the Community Development Director’s decision shall be final.

9.30.120 PROCESSING OF CANNABIS BUSINESS PERMIT.

If an application is recommended for approval by the Chief of Police, it shall be reviewed by the Community Development Director for:

A. Compliance with other required permits or licenses necessary prior to operation; B. Compliance with all rules, regulations, ordinances and requirements of the City, including but not limited to § 9.30.130 and, if applicable, § 9.30.140; and C. Compliance with the California Environmental Quality Act.

9.30.130 OPERATING REQUIREMENTS.

A cannabis business shall meet the following operating requirements for the duration of the use:

A. The design, location, size and operating characteristics of the cannabis business shall comply with the findings and conditions of any applicable discretionary permit obtained for its operation; B. A cannabis business use shall maintain a current register of the names of all current owners and all current employees who will be on the premises;
C. Individuals not listed as employees, owners, or managers of the business shall not be permitted in nonpublic areas of the business;
D. The building entrance to a cannabis business shall be clearly and legibly posted with a notice indicating that persons under the age of 21 are precluded from entering the premises unless they are a qualified patient or a primary caregiver and they are in the presence of their parent or legal guardian;
E. No cannabis business shall hold or maintain a license from the State Department of Alcoholic Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages.

In addition, alcohol shall not be provided, stored, kept, located, sold, dispensed, or used on the premises of the cannabis business use;
F. A cannabis business shall provide adequate security on the premises, including lighting and alarms, to ensure the safety of employees and visitors from criminal activity, including theft and unauthorized entry; and
G. A cannabis business shall provide the Chief of Police and Fire Chief with the name, phone number, and facsimile number of an on-site community relations staff person to whom one can provide notice if there is an emergency or there are operating problems associated with the cannabis business. The cannabis business management shall make every good faith effort to encourage residents to call this person to try to solve operating problems, if any, before any calls or complaints are made to the Police or Community Development Department.

H. Any cannabis business shall not be located within 100 feet of a school providing instruction in kindergarten or any grades 1 through 12, a child day care center or facility as defined in Article 10, or a youth center as defined in the State of California Health and Safety Code Section 11353.1(e)(2). The distance specified in this section shall be the horizontal distance measured in a straight line from the property line of the school/youth center to the closest property line of the lot on which the cannabis business is located.

9.30.140 COMMERCIAL CANNABIS CULTIVATION.

A. Commercial cannabis shall be cultivated only in a fully enclosed and secured structure (FESS).

Commercial cannabis cultivation that occurs within a greenhouse that meets the criteria for a FESS shall not be visible from any public right-of-way.

B. Commercial cannabis cultivation shall be reviewed for compliance with the California Environmental Quality Act.

C. Commercial cannabis cultivation shall utilize on-site water recycling practices.

D. Commercial cannabis cultivation shall either enroll in a community choice aggregate energy provider or install solar panels.

9.30.150 Retail Cannabis Requirements.

A. Employees. The cannabis operator shall maintain a current register of the names of all employees employed by the cannabis retailer, and shall disclose such register for inspection by any City officer or official for purposes of determining compliance with the requirements of this Section and/or any project specific conditions of approval prescribed in the Minor Use Permit.

B. Recordkeeping. The cannabis operator shall maintain patient and sales records in accordance with State law.

C. Photo identification. No person shall be permitted to enter a cannabis retail facility without government issued photo identification. Cannabis businesses shall not provide cannabis or cannabis products to any person, whether by purchase, trade, gift or otherwise, who does not possess a valid government issued photo identification card.

D. Hours of operation. Cannabis retail may operate between the hours of 9:00 a.m. to 7:00 p.m. up to 7 days per week unless the review authority imposes more restrictive hours due to the particular circumstances of the application. The basis for any restriction on hours shall be specified in the permit. Cannabis retail uses shall only be permitted to engage in delivery services during hours that the storefront is open to the public, unless the review authority permits delivery outside these hours.

E. On-Site consumption not allowed. The consumption of cannabis at a retail cannabis dispensary or within the parking lot or public right-of-way is not allowed.

F. Drive-through services. Drive-through or walk-up window services in conjunction with cannabis retail are prohibited.

G. Delivery services. The primary use as defined in 18.100.020 of a cannabis retail use shall be to sell products directly to on-site customers. Sales may also be conducted by delivery. Cannabis retail uses engaging in delivery in addition to on-site sales shall be subject to the following requirements:

1. Delivery to locations outside a permitted cannabis retail facility shall only be permitted in conjunction with a permitted cannabis facility. Delivery of cannabis without a storefront component shall be considered cannabis retail - delivery only, and subject to the requirements of § 18.42.059.

2. If delivery services will be provided, the application shall incorporate security protocols in compliance with State law.

9.30.160 MINORS.

A. It shall be unlawful for any permittee, operator, or other person in charge of any cannabis business to employ any person who is not at least 21 years of age.

B. Persons under the age of 21 shall not be allowed on the premises of a cannabis business unless they are a qualified patient or a primary caregiver and they are in the presence of their parent or legal guardian.

9.30.170 DISPLAY OF PERMIT.

Every cannabis business shall display at all times during business hours the permit issued pursuant to the provisions of this chapter for cannabis businesses in a conspicuous place so that the same may be readily seen by all persons entering the cannabis business.

9.30.180 REGISTRATION OF NEW EMPLOYEES.

A. As a further condition of approval of every cannabis business permit issued pursuant to this chapter, every owner or operator shall register every employee with the Police Department within 10 business days of the commencement of the employee’s period of employment at the cannabis business.

B. The owner or operator will submit a color copy of the new employee’s photo identification card as part of the registration process. Upon request from the Police Department, the employee shall provide their original photo identification card for review.

C. The Police Department shall be notified within 10 business days of any employee no longer employed by the business and the owner shall provide an updated roster of all current employees.

The roster shall be dated and signed by the owner or operator declaring that it is complete.

D. Failure to register each new employee within 10 days of the commencement of employment or to maintain a current register of the names of all employees shall be deemed a violation of the conditions of the permit and may be considered grounds for suspension or revocation of the permit.

9.30.190 TRANSFER OF PERMITS.

A. A permittee shall not operate a cannabis business under the authority of a cannabis business permit at any place other than the address or parcel of the cannabis business stated in the application for the permit.

B. A permittee shall not transfer ownership or control of a cannabis business or transfer a cannabis business permit to another person unless and until the transferee obtains an amendment to the permit from the Community Development Director or Chief of Police stating that the transferee is now the permittee. The amendment may be obtained only if the transferee files an application with the Community Development Director in accordance with § 9.30.050, accompanies the application with a transfer fee in an amount set by resolution of the City Council, and the Chief of Police determines in accordance with § 9.30.090 that the transferee would be entitled to the issuance of an original permit.

C. No permit may be transferred when the Community Development Director has notified the permittee that the permit has been or may be suspended or revoked.

D. Any attempt to transfer a permit either directly or indirectly in violation of this section is hereby declared void, and the permit shall be deemed revoked.

9.30.200 SUSPENSION AND REVOCATION – NOTICE.

A. Any permit issued under the terms of this chapter may be suspended or revoked by the Chief of Police or the Community Development Director when it appears to them that the permittee has committed any 1 or more of the acts or omissions constituting the grounds for suspension or revocation under this chapter.

B. No permit shall be revoked or suspended by virtue of this section until a hearing has been held by the City. Written notice of the time and place of the hearing shall be served upon the person to whom the permit was granted at least 5 days prior to the date set for the hearing. The notice shall contain a brief statement of the grounds to be relied upon for revoking or suspending the permit.

Notice may be given either by personal delivery to the permittee or by depositing it in the U.S. mail in a sealed envelope, postage prepaid, addressed to the permittee at the address provided by the permittee for sending of notices.

9.30.210 SUSPENSION AND REVOCATION – GROUNDS.

It shall be a ground for suspension or revocation of a permit if any permittee or person, his or her agent, or employee:

A. Does any act which violates any of the grounds set forth in § 9.30.100, which sets forth the grounds for denial of an application for a permit for the cannabis business; B. Violates any other provision of this chapter or any local or state law, statute, rule, or regulation relating to his or her permitted activity;
C. Conducts the permitted business in a manner contrary to the peace, health, or safety of the public;
D. Fails to take reasonable measures to control the establishment’s patrons’ conduct resulting in disturbances, vandalism, or crowd control problems occurring inside of or outside the premises, traffic control problems, or creation of a public or private nuisance, or obstruction of the business operation of another business;
E. Violates any provision of Title 15; or
F. Violates or fails to comply with the terms and conditions of any required discretionary permit.

9.30.220 SUSPENSION AND REVOCATION – APPEALS.

Any permittee aggrieved by the decision of the City in suspending or revoking a permit may, within 15 calendar days, appeal the decision in accordance with the procedures described in Chapter 1.08.

If a decision of the City to suspend or revoke a permit is not appealed within 15 calendar days, the decision of the City shall be final.

9.30.230 SUSPENSION OR REVOCATION WITHOUT HEARING.

If any person holding a permit or acting under the authority of the permit under this chapter is convicted of a misdemeanor in any court for the violation of any law which relates to his or her permit, the Chief of Police shall revoke the permit forthwith without any further action thereof, other than giving notice of revocation to the permittee. If a permit is summarily revoked pursuant to the provisions of this section, a permittee may, within 15 calendar days, appeal the revocation in accordance with the procedures described in Chapter 1.08. During the pendency of the appeal, the permit shall be deemed suspended. If the appeal is not taken within 15 days, the decision of the Chief of Police shall be final.

9.30.240 SEPARATE OFFENSE FOR EACH DAY.

Any person that violates any provision of this chapter shall be guilty of a separate offense for each and every day during any portion of which any such person commits, continues, permits, or causes a violation thereof, and shall be penalized accordingly.

9.30.250 PUBLIC NUISANCE.

Any use or condition caused or permitted to exist in violation of any of the provisions of this chapter shall be and is hereby declared a public nuisance and may be abated by the City pursuant to Chapter 6.12.

9.30.260 CRIMINAL PENALTIES.

Any person who violates, causes, or permits another person to violate any provision of this chapter commits a misdemeanor.

9.30.270 CIVIL INJUNCTION.

The violation of any provision of this chapter shall be and is hereby declared to be a public nuisance and contrary to the public interest and shall, at the discretion of the City, create a cause of action for injunctive relief.

9.30.280 ADMINISTRATIVE REMEDIES.

In addition to the civil remedies and criminal penalties set forth above, any person that violates the provisions of this chapter may be subject to administrative remedies, as set forth by City ordinance.

9.30.290 SEVERABILITY.

If any section, subsection, sentence, clause, or phrase of this chapter is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, the decision shall not affect the validity of the remaining portions of this chapter. The City Council of the City hereby declares that it would have passed the ordinance codified in this chapter and each section, subsection, sentence, clause, and phrase thereof irrespective of the fact that 1 or more sections, subsections, sentences, clauses, or phrases may be held invalid or unconstitutional.

DRAFT Amendments to Title 18 Chapter 2 Land Use Tables

18.22.030 Commercial District Land Uses and Permit Requirements TABLE 2-6
Allowed Land Uses and Permit
Requirements
for Commercial Zoning Districts
P Permitted use, Zoning Clearance required
MUP Minor Use Permit required (see § 18.71.060)
UP Use Permit required (see § 18.71.060)
S
Permit requirement set by Specific Use
Regulations
— Use not allowed
LAND USE (1)
PERMIT REQUIRED BY DISTRICT Specific Use
CN CO CBD CG CH Regulations

AGRICULTURAL, RESOURCE AND OPEN SPACE USES
Cannabis – Indoor Nursery Cultivation — — S S S Chapter 9.30

18.42.055,

18.42.057,

18.42.058
Crop production, horticulture, orchard,
vineyard

P P P P P

INDUSTRY, MANUFACTURING AND PROCESSING, WHOLESALING
Laboratory - Analytical and testing — P — P —
Artisan/craft product manufacturing with
retail sales
— P(2) P(2) P(2) P(2)
Brewery/restaurant — — UP — —
Printing and publishing — — P P —
Research and development (R&D) — — — UP —
Recycling - Small facility P P P P P 18.42.150
Recycling - Large facility — — — UP — 18.42.150
Cannabis Microbusiness — — MUP MUP MUP Chapter 9.30

18.42.058
Key to Zoning District Symbols
CN Neighborhood
Commercial
CG General Commercial
CO Office Commercial CH Highway and Visitor
Commercial
CBD Central Business District
Notes:
(1) See Article 10 for land use definitions.
(2) Use shall be entirely enclosed within a building, unless outdoor activities and/or storage are authorized by Use Permit.

ATTACHMENT B
TABLE 2-6
Allowed Land Uses and Permit Requirements
for Commercial Zoning Districts
P Permitted use, Zoning Clearance required
MUP
Minor Use Permit required (see
§ 18.71.060)
UP Use Permit required (see § 18.71.060)
S
Permit requirement set by Specific Use
Regulations
— Use not allowed
LAND USE (1)
PERMIT REQUIRED BY DISTRICT Specific Use
CN CO CBD CG CH Regulations

RETAIL TRADE
Artisan shop UP UP P P P
Auto and vehicle sales and rental — — — P P
Auto parts sales with no installation services — — — P P Bar/tavern — — UP MUP MUP
Big box retail — — — UP UP
Building and landscape materials sales - Indoor — — — P UP Building and landscape materials sales -
Outdoor
— — — UP UP 18.42.130
Cannabis Retail — — S(3) S S 18.42.057
Chapter 9.30
Cannabis retail - Delivery only — — S S S 18.42.059
Chapter 9.30
(3) No more than three total retail cannabis businesses shall be allowed in the Central Business District.

18.42.030 – Industrial Land Uses and Permit Requirements TABLE 2-10
Allowed Land Uses and Permit Requirements
for Industrial Zoning Districts
P
Permitted use, Zoning Clearance
required
MUP
Minor Use Permit required (see
§ 18.71.060)
UP
Use Permit required (see
§ 18.71.060)
S
Permit requirement set by Specific
Use Regulations
— Use not allowed
LAND USE (1)

PERMIT REQUIRED BY
DISTRICT Specific Use
IL IH Regulations

AGRICULTURAL, RESOURCE AND OPEN SPACE USES
Crop production, horticulture, orchard, vineyard P P
Cannabis – Indoor Nursery Cultivation MUP MUP Chapter 9.30

18.42.055
Cannabis - Indoor Cultivation of Mature Plants MUP MUP Chapter 9.30

18.42.055

INDUSTRY, MANUFACTURING AND PROCESSING, WHOLESALING
Agricultural product processing UP P
Artisan/craft product manufacturing P(2) UP
Brewery/restaurant UP UP
Boat and ship construction, repair, maintenance UP P
Cannabis Microbusiness MUP MUP Chapter 9.30

18.42.058
Construction contractor base P(2) P(2)
Fish processing P(2) P
Lumber and wood product manufacturing UP UP
Manufacturing/processing - Heavy — UP
Manufacturing/processing - Light P P
Manufacturing/processing - Medium intensity UP P(2)
Media production P P
Petroleum product storage and distribution UP P
Printing and publishing P P
Research and development (R&D) P P
Recycling - Large facility UP UP 18.42.150
Recycling - Small facility P P 18.42.150
Storage - Outdoor UP UP 18.42.140
Storage - Personal storage facility (ministorage)UP P
Storage - Warehouse, indoor storage P P
TABLE 2-10
Allowed Land Uses and Permit Requirements
for Industrial Zoning Districts
P
Permitted use, Zoning Clearance
required
MUP
Minor Use Permit required (see
§ 18.71.060)
UP
Use Permit required (see
§ 18.71.060)
S
Permit requirement set by Specific
Use Regulations
— Use not allowed
LAND USE (1)

PERMIT REQUIRED BY
DISTRICT Specific Use
IL IH Regulations
Wholesaling and distribution P P
TABLE 2-10
Allowed Land Uses and Permit
Requirements
for Industrial Zoning Districts
P
Permitted use, Zoning Clearance
required
MUP
Minor Use Permit required (see
§ 18.71.060)
UP Use Permit required (see § 18.71.060)
S
Permit requirement set by Specific Use
Regulations
— Use not allowed
LAND USE (1)

PERMIT REQUIRED BY
DISTRICT Specific Use
IL IH Regulations

RETAIL TRADE
Accessory retail or services MUP MUP 18.42.020
Building and landscape materials sales -
Indoor
P P
Building and landscape materials sales -
Outdoor
UP P 18.42.130
Cannabis retail MUP(2) MUP(2) 18.42.057
Chapter 9.30
Cannabis retail - Delivery only MUP (2) MUP (2) 18.42.057 Chapter 9.30
(2) Use shall only be allowable as an accessory use to a cannabis business engaged in manufacturing and/or distribution.

PROPOSED DRAFT Title 18 Chapter 4

18.42.055 Commercial Cannabis Cultivation
In addition to the operating requirements set forth in Chapter 9.30 of the Municipal Code, this Section provides location and operating requirements for commercial cannabis cultivation. Chapter 9.30 and Section 18.100.020 contains definitions of terms used herein.

A. Conditional use. A Minor Use Permit shall be required to commercially cultivate mature or flowering cannabis plants in accordance with Table 2-10 of Section

18.24.030.

B. Operational requirements. In addition to project specific conditions of approval and the requirements set forth in Chapter 9.30, commercial cannabis cultivation shall comply with the following operational requirements:

1. Employees. The cannabis operator shall maintain a current register of the names of all employees and shall disclose such register for inspection by any City officer or official for purposes of determining compliance with the requirements of this Section and/or any project specific conditions of approval prescribed in the Minor Use Permit.

2. Visitors. Only employees, managers, owners, and government agency representatives are allowed in non-public areas of the business. Any other visitors to non-public areas must be documented in a log.

3. Utilities.
a. Commercial cannabis cultivation shall use the best available technologies for water systems and water recycling and are encouraged to use an alternate source of water from the City’s potable water system.
b. Commercial cannabis cultivators shall use energy efficient lighting and equipment. A cannabis cultivator shall provide proof of the utility provider’s ability to provide reliable power to the cultivation site. c. Electricity must be exclusively provided by a renewable energy source, including but not limited to:

1. Grid power supplied from a 100% renewable source, or

2. An on-site renewable energy system
d. Cultivation projects shall use environmentally friendly practices including integrative pest management and waste reduction.

4. Odor. Cannabis cultivations shall use the best available technology to ensure odors are not detected on adjacent or nearby property or areas open to the public.

C. Accessory uses to commercial cultivation. As defined in Article 10, accessory uses are customarily incidental to, related and clearly subordinate to a primary use on the same parcel, which does not alter the primary use. Accessory uses may include activities that require additional State cannabis licenses including

ATTACHMENT C
processing, manufacturing, distribution and retail. The following activities are authorized as accessory uses to commercial cannabis cultivation:

Industrial Zones Storefront cannabis retail
Delivery cannabis retail
Processing
Distribution and Wholesale
Manufacturing

18.42.057 Cannabis Storefront Retail
A. Cannabis Business Permit Required. A cannabis storefront retail business shall obtain a cannabis business permit subject to Chapter 9.30 of the Municipal Code and any required state licenses prior to operation.

B. Permitted Use. A cannabis storefront retail business is a permitted use in the Central Business District, General Commercial, and Highway Visitor Commercial Zones subject to the limitations imposed in Table 2-6, the requirements of this section, and the requirements of Chapter 9.30 of the Municipal Code. A cannabis retail – delivery only is a permitted use in Commercial General and Highway Visitor Commercial.

C. Accessory uses. As defined in Article 10, an accessory use is customarily incidental to, related and clearly subordinate to a primary use, on the same parcel, which does not alter the primary use as defined in Article 10. A cannabis business with more than one accessory use, or with another use that does not qualify as accessory, shall be considered a microbusiness and subject to section

18.42.058. A retail business may still be considered retail with two accessory uses only if one of the uses is “onsite distribution” as defined in Article 10.

Accessory uses are determined by the definitions in Article 10.

1. The following uses are allowable as accessory uses to cannabis storefront retail:

Zone Allowable Accessory Uses
Central Business District Nursery (non-flowering) cultivation; Artisan/craft manufacturing of cannabis
products;
Retail Delivery;
On-Site Distribution
Highway Visitor Commercial Nursery (non-flowering) cultivation; Processing;
Manufacturing (non-volatile);
Distribution and Wholesale;
Retail Delivery;
On-Site Distribution
General Commercial Nursery (non-flowering) cultivation; Processing;
Distribution and Wholesale;
Manufacturing (non-volatile);
Retail Delivery;
On-Site Distribution

2. In no instance shall cannabis manufacturing using volatile solvents be allowable as an accessory use to cannabis retail.

3. A commercial cannabis nursery may be allowable as an accessory use to a cannabis retail business or as part of a microbusiness with a licensed and permitted retail cannabis business provided that the following criteria are met:
i. Nursery plants cultivated on sites are only sold as retail on-site. ii. No flowering or mature plants are cultivated on-site. iii. The nursery is clearly accessory to the retail business. iv. The nursery cultivation takes place in a fully enclosed and secure structure as defined in Chapter 9.30.020.

18.42.058 Cannabis Microbusiness
A cannabis microbusiness, as defined in Article 10 is a cannabis business that conducts either two commercial cannabis activities on one parcel where neither can be determined to be accessory to the other, or a cannabis business that conducts more than two commercial cannabis activities on one parcel. In addition to the operating requirements set forth in Chapter 9.30, this Section provides location and operating requirements for cannabis microbusinesses.

A. General Commercial Zone (CG) and Visitor Highway Commercial Zone (CH) requirement for a cannabis microbusiness:

1. A cannabis microbusiness in the CH or CG zones shall include a retail business with a storefront facing the street.

2. A cannabis microbusiness in the CH or CG zones shall meet the operating requirements for Cannabis Storefront Retail Section

18.42.057(B)

3. A microbusiness that includes nursery cultivation shall meet the requirements of Section 18.42.055 Cannabis Cultivation.

4. Allowable microbusiness activities in the CH or CG zones may include Storefront Retail Cannabis, Retail Delivery, cannabis processing, nonvolatile manufacturing, wholesale and distribution of cannabis, and nursery cannabis cultivation.

5. The cultivation of mature or flowering cannabis plants is not allowed in commercial zones.

6. Manufacturing of cannabis using volatile chemicals is prohibited in commercial zones.

7. Non-retail cannabis activities in commercial zones shall not be visible from the public right of way.

8. A cannabis microbusiness shall not create noise above the noise level performance standards set in the Inland General Plan Noise Element Table N-5 (55 db) as registered at the nearest residential property line,

9. A cannabis microbusiness shall not create a public nuisance as defined in Municipal Code Chapter 6.12.

B. A cannabis microbusiness in the industrial zone shall meet the following requirements:

1. Conditional use. A Minor Use Permit shall be required to operate a cannabis microbusiness in accordance with Table 2-10 of Article 2.

2. A microbusiness that includes cultivation shall meet the requirements set forth in Section 18.42.055.

3. A microbusiness that includes storefront retail component shall meet the operating requirements in 9.30.150.

4. A microbusiness that includes volatile manufacturing shall require a Use Permit.

18.42.059 - Cannabis Retail - Delivery Only
In addition to the operating requirements set forth in Chapter 9.30, this Section provides location and operating requirements for cannabis retail - delivery only.

Chapter 9.30 contains definitions of terms used herein.

A. Conditional use. A Minor Use Permit shall be required to operate cannabis retail - delivery only in accordance with Table 2-6 of Article 2.

B. Operational requirements. In addition to project specific conditions of approval and the requirements set forth in Chapter 9.30, cannabis retail - delivery only uses shall comply with the following operational requirements:

1. Cannabis retail - delivery only uses shall comply with the same operational requirements applicable to cannabis retail uses, as described in § 18.42.057.

2. The application shall describe the operational plan and specific extent of such service, security protocols, and how the delivery services will comply with the requirements set forth in Chapter 9.30, this Section, and State law.

18.100.020 - Definitions of Specialized Terms and Phrases As used in this Inland Land Use and Development Code, the following terms and phrases shall have the meaning ascribed to them in this Section, unless the context in which they are used clearly requires otherwise:

A. Definitions, “A.”
Accessory Use. A use that is customarily incidental related and clearly subordinate in area, extent, and purpose to a primary use on the same parcel and which does not alter the primary use. nor serve property other than the parcel where the primary use is located..

Agricultural Accessory Structure. A structure for sheltering animals, or agricultural equipment, hay, feed, etc. Examples of these structures include barns, noncommercial greenhouses, coops, corrals, and pens. May also include the storage of petroleum products for an on-site agricultural use allowed by the applicable zoning district. Does not include pasture fencing, which requires no City approval when in compliance with §

18.30.050 (Fences, Walls, and Screening). Agricultural Accessory Structures shall not be used for commercial cannabis cultivation.

Agricultural Product Processing. The processing of harvested crops to prepare them for on-site marketing or processing and packaging elsewhere. Examples of this land use include the following:
 custom milling of flour, feed and
grain
 pre-cooling and packaging of
fresh or farm-dried fruits and
vegetables
 dairies (but not feedlots, see
instead “Livestock Operations,
Sales Yards, Feedlots,
Stockyards”)
 sorting, grading and packing of
fruits and vegetables
 drying of corn, rice, hay, fruits
and vegetables
 tree nut hulling and shelling
 grain cleaning and custom
grinding
 wineries
 hay baling and cubing
 cannabis processing
Artisan Shop. A retail store selling art glass, ceramics, jewelry, paintings, sculpture, and other handcrafted items, where the store includes an area for the crafting of the items being sold.

B. Definitions, “B.” – No changes to definitions in section B.

C. Definitions, “C.”
Cannabis. The following terms and phrases are defined for the purposes of Chapters

18.2 and Chapter 18.4

ATTACHMENT D

1. Cannabis. As defined in Municipal Code 9.30.

2. Cannabis Cultivation. The planting, growing, harvesting, or drying of cannabis. a. Indoor Cultivation. The cultivation of cannabis within a fully enclosed and secure permanent structure using exclusively artificial light or within any type of structure using artificial light at a rate above twenty-five watts per square foot.
b. Nursery. All activities associated with producing clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis. Nursery size is based on actual square footage, not on canopy size. A nursery shall not have mature plants. A nursery selling plants directly to consumers shall have a cultivation and retail license from the state.
c. Outdoor Cultivation. The cultivation of cannabis that is not within a fully enclosed and secure structure. Outdoor cultivation is unlawful in the city of Fort Bragg per Municipal Code 9.32.

3. Cannabis Microbusiness. A cannabis business that conducts either two commercial cannabis activities on one parcel where neither can be determined to be accessory, or a cannabis business that conducts more than two commercial cannabis activities on one parcel.

4. Cannabis Retail. A cannabis business where cannabis or cannabis products are offered, either individually or in any combination, for retail sale directly to customers. The primary use of a cannabis retail business is to sell products directly to on-site customers. Sales may also be conducted by delivery. Also known as a cannabis “dispensary.” See also Chapter 9.30.

5. Cannabis Retail - Delivery Only. A cannabis business that is closed to the public and conducts sales exclusively by delivery.

6. Cultivation Site. A location where commercial cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

7. Fully enclosed and secure structure. A building or a space within a building that complies with the California Building Code, that has a complete roof enclosure supported by connecting walls extending from the ground to the roof, a foundation, slab or equivalent base to which the floor is secured by bolts or similar attachments, is secure against unauthorized entry, and is accessible only through one or more lockable doors. Walls and roofs must be constructed of solid materials that cannot be easily broken through. If indoor grow lights or air filtration systems are used, they must comply with all applicable Building, Electrical, and Fire Codes.

8. Greenhouse. A completely enclosed structure whose structure members are made of pre-formed, rigid construction materials. The walls, roof, and ends are typically covered using a transparent material, often glass, that is fixed in place and which allows solar radiation to penetrate the surface and affect the growing environment of the plants inside.

9. Hoop House. A structure with structure members made of flexible and somewhat rigid construction materials, typically pvc pipe or similar material. The ends may be covered or left open and the material covering the structural members is readily removable and is typically removed and re-affixed frequently.

Hoop houses are considered outdoor cultivation.

10.Immature plant or immature. A cannabis plant that has a first true leaf measuring greater than one half inch long from base to tip (if started from seed) or a mass of roots measuring greater than one half inch wide at its widest point (if vegetatively propagated), but which is not flowering.

11.Mature Plant or Mature. A cannabis plant that is flowering.

12.On-Site Distribution. The movement of cannabis products from either nursery cultivation, processing, or manufacturing conducted on-site to a licensed retailcannabis operation at the same site. Cannabis sold wholesale or distributed to offsite retail is classified under wholesale and distribution

13.Process or processing. All post-harvest activities associated with the drying, curing, grading, rolling, storing, packaging, and labeling of cannabis or nonmanufactured cannabis products.

14.Volatile solvent. Any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.

Crop Production, Horticulture, Orchard, Vineyard. Commercial agricultural production field and orchard uses, including the production of the following, primarily in the soil on the site and not in containers, other than for initial propagation prior to planting in the soil on the site:
 field crops
 ornamental crops
 flowers and seeds
 tree nuts
 fruits
 trees and sod
 grains
 vegetables
 melons
 wine and table grapes
Also includes associated crop preparation services and harvesting activities, such as mechanical soil preparation, irrigation system construction, spraying, crop processing and retail sales in the field, not including sales sheds, which are instead defined under “Produce Stand.” Does not include greenhouses which are instead defined under “Plant Nursery,” and “Residential Accessory Use or Structure,” or containerized crop production, which is instead defined under “Plant Nursery.” Does not include noncommercial home gardening, which is allowed as an accessory use in all zoning districts without City approval. Does not include cannabis cultivation or processing which is covered under the definition for Cannabis and regulated under Municipal Code

9.30, and for which specific land use regulations are provided in Chapter 18.42.055.

D. Definitions, “D.” – No change
E. Definitions, “E.” – No change.

F. Definitions, “F.” – No change.

G. Definitions, “G.” – No change.

General Retail. Stores and shops selling many lines of merchandise. Examples of these stores and lines of merchandise include:
 antique stores
 art galleries
 art supplies
 bicycles
 books, magazines, and
newspapers
 clothing, shoes, and accessories
 collectibles (cards, coins, comics,
stamps, etc.)
 consignment stores
 department stores
 dry goods
 fabrics and sewing supplies
 florists and houseplant stores
(indoor sales only; outdoor sales
are “Building and Landscape
Materials Sales”)
 hardware (not including building
or landscape materials)
 health care supplies
 hobby materials
 jewelry
 luggage and leather goods
 musical instruments, parts and
accessories
 religious goods
 small wares
 specialty shops
 sporting goods and equipment
 stationery
 toys and games
 variety stores
Does not include adult-oriented businesses, second hand stores, or cannabis retail which are separately defined.

Groceries, Specialty Foods. A retail business where the majority of the floor area, open to the public, is occupied by food products for preparation and consumption away from the store. Includes retail bakeries, where any on-site baking is only for on-site sales.

H. Definitions, “H.” – No changes
I. Definitions, “I.”
Incidental Agriculture. Noncommercial crop production, horticulture, and orchard uses; and private, noncommercial stables and corrals.

L. Definitions, “L.”
Laboratory - Analytical, Testing. A facility for testing and analysis, and/or research.

Examples of this use include soils and materials testing labs, medical service labs and forensic labs, and cannabis testing labs. See also “Research and Development (R&D).” M. Definitions, “M.”
Manufacturing - Cannabis. A process where cannabis is transformed into a product (such as food, medicine, oil, clothing, textile, etc.), and the production, preparation, propagation, or compounding of cannabis or cannabis products, directly or indirectly.

Manufacturing/Processing - Heavy. A facility accommodating manufacturing processes that involve and/or produce basic metals, building materials, chemicals, fabricated metals, paper products, machinery, textiles, and/or transportation equipment, where the intensity and/or scale of operations may cause significant impacts on surrounding land uses or the community. Also includes cannabis manufacturing and processing facilities with similar operational characteristics to the examples below. Examples of heavy manufacturing uses include the following:

1. Chemical Product Manufacturing. An establishment that produces or uses basic chemicals, and other establishments creating products predominantly by chemical processes. Examples of these products include: basic chemicals, including acids, alkalis, salts, and organic chemicals; chemical products to be used in further manufacture, including synthetic fibers, plastic materials, dry colors, and pigments; and finished chemical products to be used for ultimate consumption, including drugs/pharmaceuticals, cosmetics, and soaps; or to be used as materials or supplies in other industries including paints, fertilizers, and explosives. Also includes sales and transportation establishments handling the chemicals described above, except as part of retail trade.

2. Concrete, Gypsum, and Plaster Product Manufacturing. An establishment that produces bulk concrete, concrete building block, brick, and/or other types of precast and prefabricated concrete products. Also includes ready-mix concrete batch plants, lime manufacturing, and the manufacture of gypsum products, including plasterboard. A retail ready-mix concrete operation as an incidental use in conjunction with a building materials outlet is defined under “Building and Landscape Materials Sales.”

3. Glass Product Manufacturing. An establishment that manufactures glass and/or glass products by melting silica sand or cullet, including the production of flat glass and other glass products that are pressed, blown, or shaped from glass produced in the same establishment. Artisan and craftsman type operations of a larger scale than home occupations are instead included under “Manufacturing/Processing - Light - Small-Scale Manufacturing.”

4. Paving and Roofing Materials Manufacturing. The manufacture of various common paving and petroleum-based roofing materials, including bulk asphalt, paving blocks made of asphalt, creosote wood, and various compositions of asphalt and tar. Does not include the manufacture of wood roofing materials (shingles, shakes, etc.; see “Manufacturing/Processing - Medium Intensity - Lumber and Wood Product Manufacturing”).

5. Petroleum Refining and Related Industries. Industrial plants for purifying petroleum, and the compounding of lubricating oils and greases from purchased materials. Also includes oil or gas processing facilities, liquefied natural gas (LNG) facilities, the manufacture of petroleum coke and fuel briquettes, tank farms, and terminal facilities for pipelines. Does not include petroleum pipeline surge tanks and pump stations (“Public Facility”), or petroleum product distributors (“Petroleum Product Storage and Distribution”).

6. Plastics, Other Synthetics, and Rubber Product Manufacturing. The manufacture of rubber products including: tires, rubber footwear, mechanical rubber goods, heels and soles, flooring, and other rubber products from natural, synthetic, or reclaimed rubber.

Also includes establishments engaged primarily in manufacturing tires; products from recycled or reclaimed plastics or Styrofoam; molding primary plastics for other manufacturers, manufacturing miscellaneous finished plastics products, fiberglass manufacturing, and fiberglass application services. Does not include establishments engaged primarily in recapping and retreading automobile tires (“Vehicle Services - Major Repair/Body Work”).

7. Primary Metal Industries. An establishment engaged in: the smelting and refining of ferrous and nonferrous metals from ore, pig, or scrap; the rolling, drawing, and alloying of metals; the manufacture of castings, forgings, stampings, extrusions, and other basic metal products; and the manufacturing of nails, spikes, and insulated wire and cable.

Also includes merchant blast furnaces and by-product or beehive coke ovens.

8. Pulp and Pulp Product Manufacturing. An establishment that manufactures pulp, paper, or paperboard. Includes pulp, paper, and paperboard mills. Does not include establishments primarily engaged in converting paper or paperboard without manufacturing the paper or paperboard, including envelope manufacturing, converted paper products, paper coating and glazing, paper bags, assembly of paperboard boxes, wallpaper (“Manufacturing/Processing - Light - Paper Product Manufacturing”).

9. Textile and Leather Product Manufacturing. An establishment that converts basic fibers (natural or synthetic) into a product, including yarn or fabric, that can be further manufactured into usable items (“Manufacturing/Processing - Light - Clothing and Fabric Product Manufacturing”), and industries that transform hides into leather by tanning or curing. Includes:
 coating, waterproofing, or
otherwise treating fabric
 manufacturing of woven fabric,
carpets, and rugs from yarn
 dressed and dyed furs
 preparation of fiber and
subsequent manufacturing of
yarn, threads, braids, twine
cordage
 dyeing and finishing fiber, yarn,
fabric, and knit apparel
 leather - tanned, curried, and
finished
 scouring and combing plants
 manufacture of knit apparel and
other finished products from yarn
 upholstery manufacturing
 manufacture of felt goods, lace
goods, nonwoven fabrics and
miscellaneous textiles
 yarn and thread mills
Manufacturing/Processing - Light. A facility accommodating manufacturing processes involving and/or producing: apparel; food and beverage products; electronic, optical, and instrumentation products; ice; jewelry; and musical instruments. Light manufacturing also includes other establishments engaged in the assembly, fabrication, and conversion of already processed raw materials into products, where the operational characteristics of the manufacturing processes and the materials used are unlikely to cause significant impacts on surrounding land uses or the community. Also includes non-volatile cannabis manufacturing and processing and processing facilities with similar operational characteristics to the examples below. Examples of light manufacturing uses include the following:

1. Clothing and Fabric Product Manufacturing. An establishment that assembles clothing, draperies, and/or other products by cutting and sewing purchased textile fabrics, and related materials including leather, rubberized fabrics, plastics and furs.

Does not include custom tailors and dressmakers not operating as a factory and not located on the site of a clothing store (see “Personal Services”). See also “Manufacturing/Processing - Heavy - Textile and Leather Product Manufacturing.”

2. Electronics, Equipment, and Appliance Manufacturing. An establishment that manufactures equipment, apparatus, and/or supplies for the generation, storage, transmission, transformation and use of electrical energy, including:
 appliances including
stoves/ovens, refrigerators,
freezers, laundry equipment,
fans, vacuum cleaners, sewing
machines
 motors and generators
 optical instruments and lenses
 photographic equipment and
supplies
 aviation instruments
 radio and television receiving
equipment
 computers, computer
components, peripherals
 surgical, medical and dental
instruments, equipment, and
supplies
 electrical transmission and
distribution equipment
 storage media, blank and prerecorded, including magnetic, magneto-optical, and optical
products such as compact disks
(CDs), computer diskettes and
hard drives, digital versatile disks
(DVDs), magnetic tape products,
phonograph records, etc.
 electronic components and
accessories
 semiconductors, integrated
circuits, related devices
 electrical welding apparatus
 lighting and wiring equipment
such as lamps and fixtures,
wiring devices, vehicle lighting
 surveying and drafting
instruments
 telephone and telegraph
apparatus
 transformers, switch gear and
switchboards
 industrial controls
 instruments for measurement,
testing, analysis and control,
associated sensors and
accessories
 watches and clocks
 miscellaneous electrical
machinery, equipment and
supplies such as batteries, X-ray
apparatus and tubes,
electromedical and
electrotherapeutic apparatus,
electrical equipment for internal
combustion engines
Does not include testing laboratories (soils, materials testing, etc.) (see “Business Support Service”), or research and development facilities separate from manufacturing (see “Research and Development”).

3. Food and Beverage Product Manufacturing. Manufacturing establishments producing or processing foods and beverages for human consumption, and certain related products. Examples of these uses include:
 bottling plants
 fruit and vegetable canning,
preserving, related processing
 breweries
 grain mill products and byproducts
 candy, sugar, confectionery
products manufacturing
 meat, poultry, and seafood
canning, curing, byproduct
processing
 catering services separate from
stores or restaurants
 soft drink production
 miscellaneous food item
preparation from raw products
 coffee roasting
 dairy products manufacturing
 fat and oil product manufacturing
 wholesale edible cannabis
products
Does not include: bakeries, which are separately defined.

4. Furniture and Fixtures Manufacturing. Manufacturers producing: wood and metal household furniture and appliances; bedsprings and mattresses; all types of office furniture and public building furniture and partitions, shelving, lockers and store furniture; and miscellaneous drapery hardware, window blinds and shades. Does not include wood workers and custom cabinet shops, which are separately regulated under “Artisan/Craft Product Manufacturing.” Does not include sawmills or planing mills, which are instead included under “Manufacturing/Processing - Heavy.”

5. Small-Scale Manufacturing. Includes manufacturing establishments producing small products not classified in another major manufacturing group, including: brooms and brushes; buttons, costume novelties; pens, pencils, and other office and artists’ materials; sporting and athletic goods; toys; etc.

6. Metal Products Fabrication, Machine and Welding Shops. An establishment engaged in the production and/or assembly of metal parts, including the production of metal cabinets and enclosures, cans and shipping containers, doors and gates, duct work, forgings and stampings, hardware and tools, plumbing fixtures and products, tanks, towers, and similar products. Examples of these uses include:
 blacksmith and welding shops
 plating, stripping, and coating
shops
 sheet metal shops
 machine shops and boiler shops

7. Paper Product Manufacturing. An establishment that converts pre-manufactured paper or paperboard into boxes, envelopes, paper bags, wallpaper, etc., and/or that coats or glazes pre-manufactured paper. Does not include the manufacturing of pulp, paper, or paperboard (see “Manufacturing/Processing - Heavy - Pulp and Pulp Product Manufacturing”).

Manufacturing/Processing - Medium Intensity. A facility accommodating manufacturing processes that involve and/or produce building materials, fabricated metal products, machinery, and/or transportation equipment, where the intensity and/or scale of operations is greater than those classified under “Manufacturing/Processing - Light,” but where impacts on surrounding land uses or the community can typically be mitigated to acceptable levels. Also includes cannabis manufacturing and processing facilities with similar operational characteristics to the examples below. Examples of intensive manufacturing uses include the following:

1. Lumber and Wood Product Manufacturing. Manufacturing, processing, and sales involving the milling of forest products to produce rough and finished lumber and other wood materials for use in other manufacturing, craft, or construction processes. Includes the following processes and products:
 containers, pallets and skids
 manufactured and modular homes
 milling operations
 trusses and structural beams
 wholesaling of basic wood products
 wood product assembly

2. Machinery Manufacturing. An establishment that makes or processes raw materials into finished machines or parts for machines. Does not include the manufacture of electronics, equipment, or appliances (“Electronics, Equipment, and Appliance Manufacturing”).

3. Motor Vehicles and Transportation Equipment. Manufacturers of equipment for transporting passengers and cargo by land, air and water, including motor vehicles, aircraft, spacecraft, ships, boats, railroad and other vehicles such as motorcycles, bicycles and snowmobiles. Includes manufacture of motor vehicle parts and accessories; trailers and campers for attachment to other vehicles; self-contained motor homes; and van conversions. Does not include mobile home and modular home assembly (listed under “Lumber and Wood Product Manufacturing”).

4. Stone and Cut Stone Product Manufacturing. An establishment that cuts, shapes, and/or finishes marble, granite, slate, and/or other stone for construction and miscellaneous uses. Does not include establishments engaged primarily in buying or selling partly finished monuments and tombstones (“Artisan/Craft Product Manufacturing”).

5. Structural Clay and Pottery Product Manufacturing. An establishment that produces brick and structural clay products, including pipe, china plumbing fixtures, vitreous china articles, and/or fine earthenware and porcelain products.

Does not include artist/craftsman uses (see “Artisan/Craft Product Manufacturing,” “Home Occupation”).

N. Definitions, “N.” – No changes recommended
O. Definitions, “O.” –
On-Site Distribution. The movement of cannabis products from either nursery cultivation, processing, or manufacturing conducted on-site to a licensed retail-cannabis operation at the same site. Cannabis sold wholesale or distributed to offsite retail is classified under wholesale and distribution.

P. Definitions, “P.”
Plant Nursery. A commercial agricultural establishment engaged in the production of ornamental plants and other nursery products, grown under cover either in containers or in the soil on the site, or outdoors in containers. The outdoor production of ornamental plants in the soil on the site is instead included under “Crop Production, Horticulture, Orchard, Vineyard.” Also includes establishments engaged in the sale of these products (e.g., wholesale and retail nurseries) and commercial-scale greenhouses (home greenhouses are included under “Residential Accessory Use or Structure”). The sale of house plants or other nursery products entirely within a building is also included under “General Retail.” Does not include cannabis nurseries which are defined separately under cannabis cultivation - nursery.

Primary Use. The main purpose for which a site is developed and occupied, including the activities that are conducted on the site a majority of the hours during which activities occur.

Q. Definitions, “Q.” – No changes recommended
R. Definitions, “R.” – No changes recommended
S. Definitions, “S.” – No changes recommended
T. Definitions, “T.” – No changes recommended
U. Definitions, “U.” – No changes recommended
V. Definitions, “V.” – No changes recommended
W. Definitions, “W.”
Wholesaling and Distribution. An establishment engaged in selling merchandise to retailers; to contractors, industrial, commercial, institutional, farm, or professional business users; to other wholesalers; or acting as agents or brokers in buying merchandise for or selling merchandise, including cannabis products, to such persons or companies. Examples of these establishments include:
 agents, merchandise or commodity brokers, and commission merchants  assemblers, buyers and associations engaged in the cooperative marketing of farm products
 merchant wholesalers
 stores primarily selling electrical, plumbing, heating and air conditioning supplies and equipment
Also includes storage, processing, packaging, and shipping facilities for mail order and electronic-commerce retail establishments.

X. Definitions, “X.” – No changes recommended
Y. Definitions, “Y.” – No changes recommended
Z. Definitions, “Z.” – No changes
CO= carbon monoxide; CO2e= carbon dioxide equivalent; GHGs= greenhouse gases; lb/day= pounds per day; MT= metric tons; NOx= oxides of nitrogen; PM2.5= fine particulate matter with aerodynamic resistance diameter of 2.5 microns or less; PM10= respirable particulate matter with aerodynamic resistance diameter of 10 microns or less; PPM= parts per million; ROG= reactive organic gases; SP= service population; tpy= Tons per year; yr= year Adopted Air Quality CEQA thresholds of Significance – June 2, 2010

POLLUTANT CONSTRUCTION

RELATED OPERATIONAL RELATED
Criteria Polutants and
Precursors (Regional)
Average Daily
Emissions (lb/day)
Indirect Average
Daily Emissions
(lb/day)
Stationary
Maximum Annual
Emissions (tpy)
ROG
NOx
PM10
PM2.5
54 (Bay Area AQMD)
54 (Bay Area AQMD)
82 54
180
42 82
54 40
40 15
10 Fugitive Dust - PM10/PM2.5
Best Management
Practices Same as Above
Local CO None 125 tpy
GHG’s
Projects other than Stationary Sources
None
1,100 Metric Tons of CO2e/yr
OR

4.6 Metric Tons CO2e/SP/yr (residents +
employees)
GHG’s
Stationary Sources
None 10,000 MT/yr
Risk & Hazards – New Source Same as Operational
Thresholds
Increased cancer risk >10 in a million
Increased non-cancer risk >1.0 Hazard
Index (Chronic or Acute)
Ambient PM2.5 increase >3.0 g/m3
annual
average
Zone of Influence: 1,000-foot radius from fence
line of source or receptor
Risk & Hazards – New Receptor
(Individual Project)
Same as Operational
Thresholds
Increased cancer risk >10 in a million
Increased non-cancer risk >1.0 Hazard
Index (Chronic or Acute)
Ambient PM2.5 increase >3.0 g/m3
annual
average
Zone of Influence: 1,000-foot radius from fence
line of source or receptor
Air District policy is that adopted thresholds apply to projects for which a Notice of Preparation Is published, or environmental analysis begins, on or after the applicable effective date. The adopted CEQA thresholds – except for the risk and hazards thresholds for new receptors – are effective June 2, 2010. The risk and hazards threshold for new receptors are effective January 1, 2011.

The District recommends that for construction projects that are less than one year duration, Lead Agencies should annualize impacts over the scope of actual days that peak impacts are to occur, rather than the full year.

ATTACHMENT E
CO= carbon monoxide; CO2e= carbon dioxide equivalent; GHGs= greenhouse gases; lb/day= pounds per day; MT= metric tons; NOx= oxides of nitrogen; PM2.5= fine particulate matter with aerodynamic resistance diameter of 2.5 microns or less; PM10= respirable particulate matter with aerodynamic resistance diameter of 10 microns or less; PPM= parts per million; ROG= reactive organic gases; SP= service population; tpy= Tons per year; yr= year Adopted Air Quality CEQA thresholds of Significance – June 2, 2010

POLLUTANT CONSTRUCTION

RELATED OPERATIONAL RELATED
Risk & Hazards – New Source (Cumulative Thresholds)
Same as Operational
Thresholds
Cancer > 100 in million (from all local sources)
Non-Cancer >10.0 Hazard Index (cronic)
(from all local sources)
PM2.5 >0.8 µg/m3 annual average (from all
sources)
Zone of Influence: 1,000-foot radius from fence
line of source or receptor
Risk & Hazards – New Receptor
(Cumulative Thresholds)
Same as Operational
Thresholds
Cancer > 100 in million (from all local sources)
Non-Cancer >10.0 Hazard Index (cronic)
(from all local sources)
PM2.5 >0.8 µg/m3 annual average (from all
sources)
Zone of Influence: 1,000-foot radius from fence
line of source or receptor
Accidental Release of Acutely
Hazardous Air Pollutants None
Storage or use of acutely hazardous materials
located near receptors or receptors located near
stored or used acutely hazardous materials
considered significant
Odors None District determination
Plan Level
Criteria Pollutants & precursors None

1. Consistency with current Air Quality Plan
control measures

2. Projected VMT or vehicle Trip increase is 
projected population increase
GHG’s None
Compliance with Qualified Greenhouse Gas Reduction
Strategy (or similar criteria included in General Plan) OR

6.6 MT Co2e/SP/yr (Residents + employees)
Risks & Hazards None Overlay zones around existing and planned sources of TACs
Odors None Identify locations of odor sources in general plan Accidental Release of Acutely
Hazardous Air Pollutants None None
Regional Plans (Transportation & Air Quality Plans)
GHG’s, Criteria Air Pollutants
and Precursors, and Toxic Air
Contaminants
None No net increase in emissions
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 1 of 216 Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations California Code of Regulations Title 4
Division 19. Department of Cannabis Control
Table of Contents
Chapter 1. All Licensees................................................................................................. 10 Article 1. Division Definitions and General Requirements ........................................... 10 §15000. Definitions.................................................................................................. 10 §15000.1. General Requirements............................................................................ 16 §15000.2. A- and M-Designations. .......................................................................... 17 §15000.3. Premises Location. ................................................................................. 17 §15000.4. Subletting of Premises............................................................................ 18 §15000.5. Licensee’s Responsibility for Acts of Employees and Agents................. 18 §15000.6. Age Restriction. ...................................................................................... 18 §15000.7. Storage of Inventory. .............................................................................. 18 Article 2. Applications .................................................................................................. 19 §15001. Provisional Licenses.................................................................................. 19 §15001.1. Issuance of Provisional License.............................................................. 19 §15001.2. Renewal of Provisional License.............................................................. 21 §15001.3. Notice of Provisional License Review. .................................................... 24 §15001.4. Immediate Suspension of Provisional License........................................ 25 §15002. Annual License Application Requirements. ............................................... 25 §15003. Owners of Commercial Cannabis Businesses........................................... 30 §15004. Financial Interest in a Commercial Cannabis Business............................. 31 §15005. Personnel Prohibited from Holding Licenses. ............................................ 32 §15006. Premises Diagram. .................................................................................... 32 §15007. Landowner Approval.................................................................................. 35 §15007.1. Electronic Signature................................................................................ 35 §15009. Limited Waiver of Sovereign Immunity. ..................................................... 35 §15010. Compliance with the California Environmental Quality Act (CEQA)........... 37 §15011. Additional Information................................................................................ 39 §15012. Incomplete and Abandoned Applications................................................... 43 §15013. Withdrawal of Application. ......................................................................... 43 Article 3. Licensing ...................................................................................................... 44

ATTACHMENT F
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 2 of 216 §15014. Fees........................................................................................................... 44 §15015. Payment of Fees........................................................................................ 49 §15017. Substantially Related Offenses and Criteria for Rehabilitation. ................. 49 §15018. Additional Grounds for Denial of a License................................................ 51 §15019. Excessive Concentration. .......................................................................... 52 §15020. Renewal of License. .................................................................................. 53 §15021. Denial of License. ...................................................................................... 55 §15023. Business Modifications. ............................................................................. 55 §15024. Death, Incapacity, or Insolvency of a Licensee.......................................... 57 §15024.1. Cannabis and Cannabis Products After Termination of License............. 58 §15025. Additional Premises Requirements for Retailers and Microbusinesses Authorized to Engage in Retail. ............................................................................... 59 §15027. Physical Modification of Premises. ............................................................ 60 §15034. Significant Discrepancy in Inventory.......................................................... 61 §15035. Notification of Criminal Acts, Civil Judgments, Violations of Labor Standards, and Revocation of a Local License, Permit, or Other Authorization After Licensure................................................................................................................. 61 §15036. Notification of Theft, Loss, and Criminal Activity........................................ 62 §15037. General Record Retention Requirements.................................................. 63 §15038. Disaster Relief. .......................................................................................... 65 Article 4. Posting and Advertising................................................................................ 67 §15039. License Posting Requirement.................................................................... 67 §15040. Advertising Placement............................................................................... 67 §15040.1. Marketing Cannabis Goods as Alcoholic Products. ................................ 68 §15041.1. Branded Merchandise............................................................................. 69 §15041.2. Trade Samples. ...................................................................................... 69 §15041.3. Designating Trade Samples. .................................................................. 70 §15041.4. Providing Trade Samples. ...................................................................... 70 §15041.5. Requirements for Trade Samples........................................................... 71 §15041.6. Consumption of Trade Samples. ............................................................ 72 §15041.7. Trade Sample Limits............................................................................... 72 Article 5. Security Measures........................................................................................ 72 §15042. Premises Access Requirements................................................................ 72 §15042.1. Security Plan for Licensed Manufacturers. ............................................. 73 §15043. Licensee Employee Badge Requirement................................................... 74 Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 3 of 216 §15044. Video Surveillance System. ....................................................................... 74 §15045. Security Personnel..................................................................................... 76 §15046. Locks. ........................................................................................................ 76 §15047. Alarm System. ........................................................................................... 76 Article 6. Track and Trace Requirements .................................................................... 77 §15047.1. Definitions............................................................................................... 77 §15047.2. General Requirements............................................................................ 77 §15048. Training and Credentialing......................................................................... 78 §15048.1. Responsibilities of the Designated Account Manager............................. 78 §15048.2. General Tag Requirements. ................................................................... 79 §15048.3. Ordering Tags......................................................................................... 79 §15048.4. Tagging of Cannabis Plants.................................................................... 79 §15048.5. Use of Harvest Batch Name and Package Tags..................................... 80 §15049. Track and Trace Reporting. ....................................................................... 80 §15049.1. Additional Requirements for Recording Cultivation Activities. ................ 81 §15049.2. Recording Transfers of Cannabis and Cannabis Products. .................... 82 §15050. Loss of Access........................................................................................... 83 §15051. Track and Trace System Reconciliation. ................................................... 83 Article 7. Acceptance or Rejection of Shipments......................................................... 84 §15052.1. Acceptance or Rejection of Shipments................................................... 84 Chapter 2. Distributors.................................................................................................... 84 §15300. Distribution Activities. .................................................................................... 84 §15301. Storage Services. .......................................................................................... 84 §15302. Storage of Batches for Testing. ..................................................................... 85 §15303. Packaging, Labeling, and Rolling. ................................................................. 85 §15303.1. Net Weight of Dried Flower......................................................................... 86 §15304. Testing Arrangements. .................................................................................. 86 §15305. Testing Sample.............................................................................................. 86 §15305.1. Re-sampling. .............................................................................................. 87 §15306. Laboratory Testing Results............................................................................ 87 §15307. Quality-Assurance Review............................................................................. 88 §15307.1. Quality-Assurance Review for Labeling Cannabinoids and Terpenoids. .... 89 §15307.2. Licensed Distributor to Licensed Distributor Transfers. .............................. 89 §15308. Insurance Requirements. .............................................................................. 89 Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 4 of 216 §15309. Inventory Accounting. .................................................................................... 90 § 15311. Requirements for the Transportation of Cannabis Goods. ........................... 90 §15312. Required Transport Vehicle Information. ....................................................... 92 §15313. Transport Personnel Requirements............................................................... 92 §15314. Shipping Manifest.......................................................................................... 92 §15315. Distributor Transport Only License. ............................................................... 93 Chapter 3. Retailers........................................................................................................ 94 §15402. Customer Access to the Retail Area.............................................................. 94 §15403. Hours of Operation. ....................................................................................... 95 §15403.1. Requirements While Not Open for Business. ............................................. 95 §15404. Retail Customers. .......................................................................................... 95 §15405. Cannabis Goods Display. .............................................................................. 96 §15406. Cannabis Goods for Sale............................................................................... 96 §15407. Sale of Non-Cannabis Goods........................................................................ 97 §15408. Sale of Live Plants and Seeds....................................................................... 97 §15409. Daily Limits. ................................................................................................... 97 §15410. Customer Return of Cannabis Goods............................................................ 98 §15411. Free Cannabis Goods. .................................................................................. 98 §15413. Cannabis Goods Packaging and Exit Packaging........................................... 99 §15414. Non-Storefront Retailer................................................................................ 100 §15415. Delivery Employees..................................................................................... 100 §15415.1. Deliveries Facilitated by Technology Platforms. ....................................... 101 §15416. Delivery to a Physical Address. ................................................................... 102 §15418. Cannabis Goods Carried During Delivery.................................................... 103 §15420. Delivery Request Receipt. ........................................................................... 105 §15427. Retailer Premises-to-Retailer Premises Transfer. ....................................... 107 Chapter 4. Microbusiness ............................................................................................. 108 §15500. Microbusiness.............................................................................................. 108 Chapter 5. Cannabis Events......................................................................................... 109 §15600. Cannabis Event Organizer License. ............................................................ 109 §15601. Temporary Cannabis Event Requirements.................................................. 109 §15602. Temporary Cannabis Event Sales............................................................... 111 §15603. Temporary Cannabis Event Consumption................................................... 112 §15604. Informational or Educational Cannabis Events............................................ 113 Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 5 of 216 Chapter 6. Testing Laboratories ................................................................................... 113 Article 1. Chapter Definitions ..................................................................................... 113 §15700. Definitions................................................................................................ 113 Article 2. Laboratory License..................................................................................... 118 §15701. General Laboratory License Requirements. ............................................ 118 §15702. Laboratory License Application................................................................ 118 §15703. Interim Testing Laboratory License.......................................................... 119 Article 3. Sampling Cannabis and Cannabis Products .............................................. 121 §15704. Sampling Standard Operating Procedures. ............................................. 121 §15705. General Sampling Requirements............................................................. 121 §15706. Chain of Custody (COC).......................................................................... 122 §15707. Harvest Batch Sampling. ......................................................................... 123 §15708. Cannabis Product Batch and Pre-Roll Sampling. .................................... 124 §15709. Laboratory Transportation of Cannabis and Cannabis Product Samples. 125 §15710. Laboratory Receipt of Samples Obtained from a Distributor or Microbusiness........................................................................................................ 126 Article 4. Standard Operating Procedures................................................................. 126 §15711. Laboratory Analyses Standard Operating Procedures............................. 126 §15712. Test Methods........................................................................................... 127 §15713. Validation of Test Methods. ..................................................................... 127 Article 5. Laboratory Testing and Reporting .............................................................. 129 §15714. Required Testing. .................................................................................... 129 §15717. Moisture Content and Water Activity Testing........................................... 130 §15718. Residual Solvents and Processing Chemicals Testing............................ 130 §15719. Residual Pesticides Testing..................................................................... 132 §15720. Microbial Impurities Testing. .................................................................... 135 §15721. Mycotoxin Testing.................................................................................... 135 §15722. Foreign Material Testing. ......................................................................... 136 §15723. Heavy Metals Testing. ............................................................................. 136 §15724. Cannabinoid Testing................................................................................ 137 §15725. Terpenoid Testing.................................................................................... 138 §15726. Certificate of Analysis (COA). .................................................................. 139 Article 6. Post Testing Procedures ............................................................................ 140 §15727. Remediation and Retesting. .................................................................... 140 §15728. Post Testing Sample Retention. .............................................................. 141 Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 6 of 216 Article 7. Laboratory Quality Assurance and Quality Control..................................... 141 §15729. Laboratory Quality Assurance (LQA) Program. ....................................... 141 §15730. Laboratory Quality Control (LQC) Samples. ............................................ 142 §15731. Limits of Detection (LOD) and Limits of Quantitation (LOQ) for Quantitative Analyses................................................................................................................ 144 §15732. Data Package. ......................................................................................... 144 §15733. Required Proficiency Testing................................................................... 145 §15734. Satisfactory and Unsatisfactory Proficiency Test Performance................ 146 §15735. Laboratory Audits..................................................................................... 146 Article 8. Laboratory Employee Qualifications ........................................................... 147 §15736. General Laboratory Employee Qualifications. ......................................... 147 §15737. Supervisor or Management Responsibilities and Qualifications. ............. 147 §15738. Analyst and Sampler Qualifications. ........................................................ 147 Chapter 7. Cultivators ................................................................................................... 148 Article 1. General Cultivation Requirements.............................................................. 148 §16201. Cultivation License Types........................................................................ 148 §16202. General Cultivation Requirements........................................................... 149 §16209. Medium Cultivation License Limits........................................................... 149 Article 2. Cultivation Site Requirements .................................................................... 149 §16300. Cultivation Requirements for Specialty Cottage, Specialty, Small, and Medium Licenses................................................................................................... 149 §16301. Seed Production Requirements for Nursery Licensees. .......................... 150 §16302. Research and Development Requirements for Nursery Licensees. ........ 150 §16303. Cultivation Requirements for Processor Licensees. ................................ 150 §16304. General Environmental Protection Measures. ......................................... 150 §16305. Renewable Energy Requirements. .......................................................... 151 §16306. Generator Requirements. ........................................................................ 151 §16307. Pesticide Use Requirements. .................................................................. 152 §16308. Canopy Requirements............................................................................. 153 §16309. Cultivation Plan Requirements................................................................. 153 §16310. Pest Management Plan. .......................................................................... 153 §16311. Supplemental Water Source Information................................................. 154 Article 3. Release of Information to Financial Institutions .......................................... 156 §16410. Cultivation Licensee Authorization to Release Data to Financial Institutions. .............................................................................................................................. 156 Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 7 of 216 §16411. Financial Institution Request for Cultivation Licensee Information........... 157 Chapter 8. Manufacturers ............................................................................................. 157 Article 1. Manufacturing Licenses.............................................................................. 157 §17006. Manufacturing License Types.................................................................. 157 §17009. Additional Activities.................................................................................. 158 §17117. License Constraints. ................................................................................ 158 §17123.1. Manufacturing Licensee Authorization to Release Data to Financial Institutions. ............................................................................................................ 159 §17123.2. Financial Institution Request for Manufacturing Licensee Information.. 160 Article 2. Shared-Use Facilities ................................................................................. 161 §17124. Definitions................................................................................................ 161 §17126. Registration to Operate a Shared-Use Facility......................................... 161 §17127. Shared-Use Facility Conditions for Operation.......................................... 162 §17128. Shared-Use Facility Compliance Requirements. ..................................... 163 Article 3. Solvent Use and Safety .............................................................................. 163 §17202.1. General Requirements for Extraction and Post-Extraction Processing. 163 §17203. Permissible Extractions. .......................................................................... 164 §17204. Solvent Requirements. ............................................................................ 164 §17205. Additional Requirements for Ethanol Operations..................................... 165 §17206. Closed-Loop Extraction System Requirements. ...................................... 165 Article 4. Good Manufacturing Practices ................................................................... 166 §17207. Manufacturing Practices Definitions......................................................... 166 §17208. Quality Control Program. ......................................................................... 168 §17209. Grounds, Building, and Manufacturing Premises..................................... 169 §17210. Equipment and Utensils........................................................................... 171 §17211. Manufacturing Personnel......................................................................... 171 §17211.1. Training Program.................................................................................. 173 §17212. Cannabis Product Components............................................................... 174 §17213. Manufacturing Processes and Procedures. ............................................. 175 §17214. Product Quality Plan................................................................................ 175 §17215. Master Manufacturing Protocol................................................................ 177 §17216. Batch Production Record......................................................................... 178 §17217. Standard Operating Procedures. ............................................................. 180 §17218. Inventory Control – Cannabis and Cannabis Products. ........................... 180 Article 5. Special Requirements ................................................................................ 181 Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 8 of 216 §17219. Juice Manufacturing................................................................................. 181 §17220. Dried Meat Manufacturing. ...................................................................... 181 Chapter 9. Other Responsibilities ................................................................................. 181 §17221. Weighing Devices and Weighmasters. ........................................................ 181 §17223. Waste Management. ................................................................................... 182 §17225. Product Complaints. .................................................................................... 184 §17226. Voluntary Recalls......................................................................................... 185 §17227. Mandatory Recalls....................................................................................... 186 Chapter 10. Cannabis and Cannabis Products............................................................. 186 Article 1. Standards for Manufactured Cannabis Products........................................ 186 §17300. Prohibited Products. ................................................................................ 186 §17301. Requirements for Edible Cannabis Products. .......................................... 187 §17302. Additional Requirements for Topical Cannabis Products......................... 188 §17303. Orally Consumed Products Containing Alcohol. ...................................... 188 Article 2. Cannabinoid Concentration Limits.............................................................. 188 §17304. THC Concentration Limits........................................................................ 188 Article 3. Failed Product Batches .............................................................................. 189 §17305. Failed Product Batches............................................................................ 189 Chapter 11. Labeling and Packaging Requirements..................................................... 190 Article 1. Bulk Cannabis or Cannabis Products, Immature Plants, and Seeds .......... 190 Article 2. Cannabis Products Released from Manufacturing ..................................... 191 §17401. Release to Distributor as Finished Product.............................................. 191 Article 3. Labeling Requirements............................................................................... 191 §17402. General Provisions. ................................................................................. 191 §17403. Primary Panel Labeling Requirements: Nonmanufactured Cannabis Goods. .............................................................................................................................. 192 §17404. Primary Panel Labeling Requirements: Manufactured Cannabis Products. .............................................................................................................................. 193 §17405. Additional Primary Panel Labeling Requirements: Edible Products......... 193 §17406. Informational Panel Labeling Requirements. ........................................... 193 §17407. Cannabinoid Content Labeling. ............................................................... 195 §17408. Labeling Restrictions. .............................................................................. 196 §17409. Statement of Characteristic Anticipated Effects....................................... 197 §17410. Universal Symbol..................................................................................... 197 Article 4. Packaging................................................................................................... 198 Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 9 of 216 §17411. Packaging................................................................................................ 198 §17412. Child-Resistant Packaging Requirements. .............................................. 198 Chapter 12. Enforcement.............................................................................................. 199 Article 1. Authority ..................................................................................................... 199 §17800. Right of Access........................................................................................ 199 Article 2. Compliance and Enforcement Actions........................................................ 200 §17801. Notice to Comply. .................................................................................... 200 §17801.1 Notice of Violation.................................................................................. 200 §17801.5. Embargo of Cannabis or Cannabis Products........................................ 201 §17802. Citations; Orders of Abatement; Administrative Fines. ............................ 202 §17803. Contesting Citations................................................................................. 203 §17804. Citation Compliance................................................................................. 204 §17805. Minor Decoys........................................................................................... 204 §17806. Attire and Conduct................................................................................... 205 §17807. Entertainers and Conduct. ....................................................................... 205 Article 3. Disciplinary Actions .................................................................................... 206 §17808. Additional Grounds for Discipline............................................................. 206 §17809. Disciplinary Actions.................................................................................. 207 §17810. Interim Suspension.................................................................................. 208 §17813. Enforcement Costs. ................................................................................. 208 §17814. Disciplinary Guidelines. ........................................................................... 209 Article 4. Emergency Decision and Orders................................................................ 210 §17815. Emergency Decision and Order............................................................... 210 Article 5. Posting Notices of Suspension and Revocation ......................................... 212 §17816. Posting of Notice of Suspension.............................................................. 212 §17817. Posting of Notice of Revocation............................................................... 213 Chapter 13. Other Provisions........................................................................................ 213 Article 1. Research Funding ...................................................................................... 213 §17900. Eligibility................................................................................................... 213 §17901. Request for Proposals. ............................................................................ 213 §17902. Selection Process and Criteria................................................................. 214 §17903. Release of Funds..................................................................................... 215 §17904. Reports to the Department. ..................................................................... 215 §17905. Research Records................................................................................... 216 Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 10 of 216 Chapter 1. All Licensees
Article 1. Division Definitions and General Requirements §15000. Definitions.
(a) “Act” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act, codified in Business and Professions Code section 26000, et seq. (b) “Adulterated” or “adulteration” has the meaning stated in section 26039.6(a) of the Act.
(c) “Allergen” means a major food allergen as defined in 21 U.S.C § 321(qq). (d) “Appellation of Origin” means a designation to indicate that the cannabis meets the requirements developed by the program established pursuant to section 26063 of the Act.
(e) “Applicant” means an owner that is applying for a Department-issued license. (f) “Batch” means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:
(1) “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals. (2) “Manufactured cannabis batch” or “production batch” means either:
(A) An amount of cannabis concentrate or extract produced in one production cycle using the same extraction methods and standard operating procedures; or (B) An amount of a type of cannabis product produced in one production cycle using the same formulation and standard operating procedures.
(g) “Cannabis accessories” has the meaning stated in Health and Safety Code section 11018.2.
(h) “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency.

For purposes of this division, “cannabis concentrate” includes, but is not limited to, the separated resinous trichomes of cannabis, tinctures, capsules, suppositories, extracts, vape cartridges, inhaled products (e.g., dab, shatter, and wax), and tablets as defined in subsection (nnn).
(i) “Cannabis goods” means cannabis and cannabis products in final form. For the purposes of section 15311, “cannabis goods” includes all cannabis and cannabis products in any form.
(j) “Cannabis product” 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.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 11 of 216 (k) “Cannabis product quality,” “quality cannabis product,” or “quality” means that the cannabis product consistently meets the established specifications for identity, cannabinoid concentration, homogeneity, composition, and testing standards pursuant to sections 15718 through 15724, and has been manufactured, packaged, labeled, and held under conditions to prevent adulteration and misbranding. (l) “Cannabis waste” means any material intended for disposal that contains cannabis but is not otherwise considered a hazardous waste. Cannabis waste consisting solely of plant material shall be considered an organic waste as defined in Public Resources Code section 42649.8(d).
(m) “Canopy” means the designated area(s) at a licensed premises that will contain mature plants at any point in time.
(n) “CBD” means the compound cannabidiol, CAS number 13956-29-1. “Total CBD” is defined in section 15700(qqq).
(o) “Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis or cannabis products as provided for in this division, or acting as a cannabis event organizer for temporary cannabis events. (p) “Commercial-grade, non-residential door lock” means a lock manufactured for commercial use.
(q) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
(r) “Cultivation site” means a location where commercial cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.
(s) “Delivery employee” means an individual employed by a licensed retailer or licensed microbusiness authorized to engage in retail sales who delivers cannabis goods from the licensed retailer or licensed microbusiness premises to a customer at a physical address. (t) "Designated responsible party" means the individual identified by the commercial cannabis business who has legal authority to bind the commercial cannabis business and who is the primary contact for the application and license-related issues. (u) “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensees.
(v) “Dried flower” means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.
(w) “Edible cannabis product” means a cannabis product intended to be used orally, in whole or in part, for human consumption. For purposes of this division, “edible cannabis product” includes cannabis products that dissolve or disintegrate in the mouth, but does not include any product otherwise defined as “cannabis concentrate.” (x) “Extraction” means a process by which cannabinoids are separated from cannabis plant material through chemical or physical means.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 12 of 216 (y) “Final form” refers to cannabis and cannabis products that are packaged and labeled as they will be sold at retail to a consumer.
(z) “Flowering” means that a cannabis plant has formed a mass of pistils measuring greater than one-half inch wide at its widest point.
(aa) “Free cannabis goods” means any amount of cannabis goods provided to any person without cost or payment or exchange of any other thing of value. (bb) “Immature plant” or “immature” means a cannabis plant that has a first true leaf measuring greater than one-half inch long from base to tip (if started from seed) or a mass of roots measuring greater than one-half inch wide at its widest point (if vegetatively propagated), but that is not flowering. For retail purposes, “immature plant” or “immature” means a cannabis plant that is nonflowering and shorter and narrower than 18 inches.
(cc) “Indoor cultivation” means the cultivation of cannabis within a permanent structure using exclusively artificial light or within any type of structure using artificial light at a rate above twenty-five watts per square foot.
(dd) “Informational panel” means any part of the cannabis product label that is not the primary panel and that contains required labeling information. (ee) “Infusion” means a process by which cannabis, cannabinoids, or cannabis concentrates are directly incorporated into a product formulation to produce a cannabis product.
(ff) “Infused pre-roll” means a pre-roll into which cannabis concentrate (other than kief) or other ingredients have been incorporated.
(gg) “Ingredient” means any substance that is used in the manufacture of a cannabis product and that is intended to be present in the finished cannabis product. (hh) “Kief” means the resinous trichomes of cannabis that have been separated from the cannabis plant.
(ii) “Labeling” means any label or other written, printed, or graphic matter upon cannabis or a cannabis product, upon its container or wrapper, or that accompanies any cannabis or cannabis product.
(jj) “Licensee” means any person holding a license issued under the Act. (kk) “Light deprivation” means the use of any technique to eliminate natural light in order to induce flowering.
(ll) “Limited-access area” means an area in which cannabis or cannabis products are stored or held and is only accessible to a licensee and authorized persons. (mm) “Lot” means a batch, or specifically identified portion of a batch. (nn) “Lot number” or “batch number” means a distinctive group of numbers, letters, or symbols or any combination of these that is unique to a group of cannabis or cannabis products.
(oo) “Manufacture” means to compound, blend, extract, infuse, or otherwise make or Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 13 of 216 prepare a cannabis product.
(1) The term “manufacture” includes the following processes:
(A) Extraction;
(B) Infusion;
(C) Packaging or repackaging of cannabis products;
(D) Labeling or relabeling the packages of cannabis products; (E) Post-processing refinement of cannabis extract (“post-processing”); and (F) Remediation of failed harvest batches or cannabis product batches, other than relabeling to correct cannabinoid content.
(2) The term “manufacture” does not include the following:
(A) The repacking of cannabis products from a bulk shipping container by a distributor or retailer where the product’s original packaging and labeling is not otherwise altered; (B) The preparation of pre-rolls by a licensed distributor in accordance with the requirements of section 15303;
(C) The collection of the resinous trichomes that are dislodged or sifted from the cannabis plant incidental to cultivation activities by a licensed cultivator; (D) The processing of nonmanufactured cannabis products, as defined in subsection (eee) of this section; or
(E) The addition of cannabinoid content on the label of a package of cannabis or cannabis product by a distributor in accordance with section 17407. (pp) “Manufacturing” or “manufacturing operation” means all aspects of the extraction process, infusion process, post-processing, remediation, and packaging and labeling processes, including processing, preparing, holding, and storing of cannabis products.

Manufacturing also includes any processing, preparing, holding, or storing of components and ingredients.
(qq) “Mature plant” or “mature” means a cannabis plant that is flowering. (rr) “Medicinal cannabis patient” includes both a qualified patient as defined in Health and Safety Code section 11362.7 and a person in possession of a valid identification card issued under Health and Safety Code section 11362.71.
(ss) “Mixed-light cultivation” means the cultivation of mature cannabis in a greenhouse, hoop-house, glasshouse, conservatory, hothouse, or other similar structure using a combination of:
(1) Natural light and light deprivation, and either of the models listed below:
(A) “Mixed-light Tier 1,” without the use of artificial light or the use of artificial light at a rate above zero, but no more than six watts per square foot; (B) “Mixed-light Tier 2,” the use of artificial light at a rate above six and below or equal to twenty-five watts per square foot; or
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 14 of 216 (2) Natural light and either of the models listed below:
(A) “Mixed-light Tier 1,” the use of artificial light at a rate above zero, but no more than six watts per square foot;
(B) “Mixed-light Tier 2,” the use of artificial light at a rate above six and below or equal to twenty-five watts per square foot.
(tt) “Nonmanufactured cannabis goods” means final form items that contain only cannabis.
(uu) “Nonvolatile solvent” means any solvent used in the extraction process that is not a volatile solvent. “Nonvolatile solvent” includes carbon dioxide, ethanol, and nonhydrocarbon-based or other solvents such as water, vegetable glycerin, vegetable oil, animal fat, and glycerin.
(vv) “Nursery” means all activities associated with producing clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.
(ww) “Orally consumed concentrate” means a cannabis concentrate that is intended to be consumed by mouth and is not otherwise an edible cannabis product. “Orally consumed concentrate” includes tinctures, capsules, and tablets as defined in subsection (nnn).
(xx) “Outdoor cultivation” means the cultivation of mature cannabis without the use of artificial lighting or light deprivation in the canopy area at any point in time. (yy) “Package” or “packaging” means any container or wrapper that may be used for enclosing or containing any cannabis or cannabis product. “Package” does not include a shipping container or outer wrapping used solely for the transport of cannabis or cannabis products in bulk quantity to a licensed premises. (zz) “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. (aaa) “Pest” means an undesired insect, rodent, nematode, fungus, bird, vertebrate, invertebrate, weed, virus, bacteria, or other microorganism (except microorganisms on or in living humans or other living animals) that is, or is liable to become, injurious, dangerous, or detrimental to health, the environment, or the agricultural environment of the state.
(bbb) “Pre-roll” means any combination of the following rolled in paper: flower, shake, leaf, or kief that is obtained from accumulation in containers or sifted from loose, dry cannabis flower or leaf with a mesh screen or sieve.
(ccc) “Premises” means the designated structure(s) and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee. (ddd) “Primary panel” means the part of a cannabis goods label that is most likely to be Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 15 of 216 displayed, presented, shown, or examined under customary conditions of display for retail sale.
(eee) “Processing” means all activities associated with the drying, curing, grading, trimming, rolling, storing, packaging, and labeling of cannabis or nonmanufactured cannabis products.
(fff) “Product Identity” or “identity of the product” means the generic, common, or usual name of a product by which it is most commonly known.
(ggg) “Promotional materials” means any form, letter, circular, pamphlet, publication, or other written material directed to a customer or prospective customer to induce retail sales. Promotional material does not include permitted signs, displays, decorations, cannabis accessories, or cannabis or cannabis products furnished by a licensed cultivator, licensed manufacturer, licensed distributor, licensed microbusiness, or licensed cannabis event organizer to a retail licensee for advertising purposes.

Promotional materials shall have no intrinsic or secondary value. (hhh) “Publicly owned land” means any building or real property that is owned, leased, or occupied by a city, county, state, federal, or other government entity. (iii) "Quarantine" means the storage or identification of cannabis or cannabis product to prevent use, movement or transfer of the cannabis or cannabis product. (jjj) “Residential area” is an area that is within 600 feet of any single-family or multifamily residence, other than commercial hotels, motels, and similar establishments for temporary lodging.
(kkk) “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.
(lll) “Serving” means the designated amount of cannabis product established by the manufacturer to constitute a single unit.
(mmm) “Sublet” means to lease or rent all or part of a leased or rented property. (nnn) “Tablet” means a solid preparation containing a single serving of THC or other cannabinoid that is intended to be swallowed whole, not formulated to be chewable, dispersible, effervescent, orally disintegrating, used as a suspension, or consumed in a manner other than swallowed whole, and does not contain any added natural or artificial flavor or sweetener.
(ooo) “Tamper-evident” means that the cannabis goods packaging is sealed in a manner that prevents the packaging from being opened without obvious destruction of the seal. (ppp) “THC” or “delta-9 THC” means the compound tetrahydrocannabinol, CAS number 1972-08-3. “Total THC” is defined in section 15700(rrr). (qqq) “Tincture” means a solution of cannabis extract, derived either directly from the cannabis plant or from a manufactured cannabis extract, dissolved in alcohol, glycerin, or vegetable oils.
(rrr) “Topical cannabis product” means a cannabis product intended to be applied to the Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 16 of 216 skin rather than ingested or inhaled.
(sss) “Track and trace system” means the program for reporting the movement of cannabis and cannabis products through the distribution chain established by the Department in accordance with section 26067 of the Act. (ttt) “Transport” means the physical movement of cannabis or cannabis products from one licensed premises to another licensed premises.
(uuu) “Unique identifier” or “UID” means an alphanumeric code or designation used for reference to a specific plant and any cannabis or cannabis product derived or manufactured from that plant.
(vvv) “Universal symbol” means the symbol developed by the Department pursuant to section 26130(c)(7) of the Act to indicate that a product contains cannabinoids. (www) “Vehicle alarm system” is a device or series of devices installed to discourage theft of the vehicle or its contents and is intended to summon general attention or to summon law enforcement as a result of an indication of an attempted breach of the vehicle.
(xxx) “Volatile solvent” means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.
(yyy) "Watts per square foot” means the sum of the maximum wattage of all lights identified in the designated canopy area(s) in the premises diagram divided by the sum of the dimensions in square feet of the same designated canopy area(s). (zzz) “Wholesale cost” has the meaning stated in title 18, California Code of Regulations, section 3700.

Authority: Section 26013, Business and Professions Code. Reference: Section 26013, Business and Professions Code.
§15000.1. General Requirements.
(a) Every person who conducts commercial cannabis activity shall obtain and maintain a valid license from the Department for each separate premises at which commercial cannabis activity is conducted.
(b) Commercial cannabis activity shall only be conducted between licensees. Licensed retailers and licensed microbusinesses authorized to engage in retail sales may conduct commercial cannabis activity with customers or nonprofits in accordance with this division.
(c) The licensee shall only conduct commercial cannabis activities authorized by the license and on the premises licensed for the activity.
(d) All transfers of cannabis and cannabis product shall be conducted by a licensed distributor.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 17 of 216 (e) Licenses shall not be transferrable or assignable to another person or premises, except as provided in section 26050.2 of the Business and Professions Code. In the event of the sale or other transfer of the commercial cannabis business, changes in ownership shall be made in accordance with section 15023. (f) Applicants and licensees shall use their legal business name on all documents related to commercial cannabis activity.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26053, 26057 and 26070, Business and Professions Code.
§15000.2. A- and M-Designations.
(a) Licensees may conduct business with other licensees irrespective of the Adesignation or M-designation on their licenses. (b) Licensees authorized to engage in distribution shall only transport and sell cannabis goods designated as “For Medical Use Only” to M-designated retailers or M-designated microbusinesses authorized to engage in retail sales.
(c) Licensees authorized to engage in retail sales shall only sell cannabis goods designated as “For Medical Use Only” to medicinal customers.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26001, 26013, 26050 and 26053, Business and Professions Code.
§15000.3. Premises Location.
(a) A licensed premises shall not be in a location that requires persons to pass through a business that sells alcohol or tobacco or a private residence to access the licensed premises.
(b) A licensed premises shall not be in a location that requires persons to pass through the licensed premises to access a business that sells alcohol or tobacco or a private residence.
(c) A licensed premises shall not be located within a private residence. This subsection does not apply to cultivation licensees.
(d) Licensees shall ensure that the Department has immediate access to their licensed premises. If the Department is denied access to a licensee’s premises for any reason, the licensee shall be held responsible and subject to discipline. If the Department is denied access to one licensee’s premises because of another licensee’s refusal to grant access when the only access to one licensed premises is through another licensed premises, all licensees shall be held responsible and subject to discipline. (e) Nothing in this section shall be interpreted to prohibit two or more licensed premises from occupying separate portions of the same parcel of land or sharing common use areas, such as a bathroom, breakroom, hallway, or building entrance. (f) All structures included as part of the licensed premises shall be permanently affixed to Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 18 of 216 the land by a method that would cause the structure to ordinarily remain affixed for an indefinite period of time. Structures that are not considered to be permanent structures include, but are not limited to, shipping containers that are not affixed to the land, modular buildings that are not affixed to the land, structures that rest on wheels, or any structure that can be readily moved. This provision is not applicable to licensees engaging in cultivation for cultivation related activities.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050, 26051.5, 26054, 26055 and 26160, Business and Professions Code. §15000.4. Subletting of Premises.

Except as allowed pursuant to article 2 of chapter 8, a licensee shall not sublet any area designated as the licensed premises for the licensee’s commercial cannabis activity.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26070, Business and Professions Code.
§15000.5. Licensee’s Responsibility for Acts of Employees and Agents.

In construing and enforcing the provisions of the Act and the regulations in this division, the act, omission, or failure of an agent, officer, representative, or other person acting for or employed by a licensee, within the scope of his or her employment or office, shall in every case be deemed the act, omission, or failure of the licensee.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26031 and 26110, Business and Professions Code.
§15000.6. Age Restriction.

Employees or persons retained by a licensee to work within or on a licensed premises or to handle cannabis or cannabis products shall be at least 21 years of age.

Authority: Section 26013, Business and Professions Code. Reference: Section 26140, Business and Professions Code.
§15000.7. Storage of Inventory.
(a) All inventory stored on the licensed premises shall be secured in a limited-access area.
(b) A licensee shall not store cannabis goods outdoors. (c) Employee break rooms, changing facilities, and bathrooms shall be separated from all storage areas.
(d) All cannabis and cannabis products must be stored on the licensed premises.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26053 and 26070, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 19 of 216 Article 2. Applications
§15001. Provisional Licenses.
(a) A provisional licensee shall comply with all laws applicable to a licensee holding an annual license of the same type.
(b) A provisional license does not create a vested right in the holder to renewal of the provisional license or issuance of an annual license.
(c) A provisional license shall no longer be valid upon issuance of an annual license, denial of an annual license, abandonment of an application for licensure, withdrawal of an application for licensure, or surrender of the provisional license. (d) A provisional licensee must actively and diligently pursue requirements for an annual license to continue to hold a provisional license, which includes meeting all the following requirements:
(1) Paying the license fee within 60 calendar days of the date the Department sends a notification that the license fee is due.
(2) Providing all information requested by the Department or otherwise elaborating upon information previously provided to the Department, or providing a statement demonstrating that the information cannot be provided due to circumstances beyond the provisional licensee’s control. The information or statement shall be provided by the response date specified by the Department, or within 30 calendar days of the date the Department sends the information request to the provisional licensee if the Department does not specify a response date.
(e) Refusal by the Department to issue or renew a provisional license pursuant to section 15001.1 or section 15001.2 shall not entitle the applicant to a hearing or an appeal of the decision. Chapter 2 (commencing with section 480) of division 1.5, chapter 4 (commencing with section 26040), and sections 26031 and 26058 of the Business and Professions Code shall not apply to licenses issued pursuant to this section. (f) No provisional license issued by the Department shall be effective after January 1, 2026.

Authority: Section 26013, Business and Professions Code. Reference: Section 26050.2, Business and Professions Code.
§15001.1. Issuance of Provisional License.
(a) Until June 30, 2022, the Department may, in its sole discretion, issue a provisional license to a commercial cannabis business if:
(1) The applicant submits a complete application, in accordance with section 15002, and the required application fee to the Department on or before March 31, 2022. (2) For an application for a license that includes cultivation activities, the applicant provides any of the following documents:
(A) A final streambed alteration agreement;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 20 of 216 (B) A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife; (C) Written verification by the Department of Fish and Wildlife that a streambed alteration agreement is not needed; or
(D) Written verification by the Department of Fish and Wildlife that the applicant submitted a notification described in section 1602 of the Fish and Game Code, submitted payment of applicable fees pursuant to section 1609 of the Fish and Game Code, and is responsive to the Department of Fish and Wildlife as prescribed in section 26050.2 of the Business and Professions Code.
(3) Issuance of the license would not cause the commercial cannabis business to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed-light or indoor cultivation, if the application is received on or after January 1, 2022. For purposes of this subsection, premises will be considered contiguous if they are connected, touching, or adjoining. (b) After June 30, 2022, and until September 30, 2022, the Department may, in its sole discretion, issue a provisional license for cultivation to a commercial cannabis business if:
(1) The applicant submits a complete application, in accordance with section 15002, and the required application fee to the Department on or before June 30, 2022. (2) The commercial cannabis business is not applying for a cultivation license for a premises that exceeds 20,000 square feet of total canopy for outdoor cultivation. (3) The commercial cannabis business provides any of the following documents:
(A) A final streambed alteration agreement;
(B) A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife; (C) Written verification by the Department of Fish and Wildlife that a streambed alteration agreement is not needed; or
(D) Written verification by the Department of Fish and Wildlife that the applicant has submitted a notification described in section 1602 of the Fish and Game Code, submitted payment of applicable fees pursuant to section 1609 of the Fish and Game Code, and is responsive to the Department of Fish and Wildlife as prescribed in section 26050.2 of the Business and Professions Code.
(4) Issuance of the license would not cause the commercial cannabis business to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed-light or indoor cultivation, if the application is received on or after January 1, 2022. For the purposes of this subsection, premises will be considered contiguous if they are connected, touching, or adjoining. (c) After June 30, 2022, and until June 30, 2023, the Department may, in its sole discretion, issue a provisional license to a local equity license applicant, as defined in section 26240(c) of the Business and Professions Code, if:

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 21 of 216 (1) The applicant submits a complete application, in accordance with section 15002, and the required application fee to the Department on or before March 31, 2023. (2) For an application for a license that includes cultivation activities, the following conditions are met:
(A) The local equity license applicant provides any of the following documents:
(i) A final streambed alteration agreement;
(ii) A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife; (iii) Written verification by the Department of Fish and Wildlife that a streambed alteration agreement is not needed; or
(iv) Written verification by the Department of Fish and Wildlife that the applicant has submitted a notification described in section 1602 of the Fish and Game Code, submitted payment of applicable fees pursuant to section 1609 of the Fish and Game Code, and is responsive to the Department of Fish and Wildlife as prescribed in section 26050.2 of the Business and Professions Code.
(B) The local equity applicant is not applying for a cultivation license for a premises that exceeds one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixedlight or indoor cultivation. (C) Issuance of the license would not cause the local equity applicant to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed-light or indoor cultivation. For the purposes of this subsection, premises will be considered contiguous if they are connected, touching, or adjoining.

Authority: Section 26013, Business and Professions Code. Reference: Section 26050.2, Business and Professions Code.
§15001.2. Renewal of Provisional License.
(a) To timely renew a provisional license, the provisional licensee shall comply with the requirements of section 15020.
(b) For provisional license renewals from July 1, 2022, through June 30, 2023, in addition to the requirements of section 15020, a provisional licensee must also provide to the Department:
(1) Evidence that one of the following California Environmental Quality Act (CEQA) (Division 13 (commencing with section 21000) of the Public Resources Code) requirements has been met:
(A) Documentation, such as a letter, report, notice or other type of written communication from the local jurisdiction, demonstrating that the local jurisdiction is in the process of preparing a site-specific initial study, addendum, or checklist pursuant to title 14, California Code of Regulations, section 15063, 15164, 15168, or 15183 to demonstrate Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 22 of 216 whether it is consistent with a previously circulated and adopted negative declaration, mitigated negative declaration, or environmental impact report; (B) Documentation, such as a letter, report, notice or other type of written communication from the local jurisdiction, demonstrating that the local jurisdiction has made substantial progress during the previous 12-month licensure term toward completing project specific environmental review by drafting, preparing, or circulating for public review an environmental document pursuant to CEQA;
(C) Documentation requested by the Department of the provisional licensee that demonstrates the furtherance of environmental review during the previous 12-month licensure term;
(D) Other information requested by the Department from the provisional licensee that demonstrates evidence of substantial progress toward compliance with CEQA during the previous 12-month licensure term; or
(E) Documentation that demonstrates compliance with CEQA is complete. (2) For cultivation licenses, a provisional licensee must also provide one of the following forms of documentation demonstrating progress with compliance with chapter 6 (commencing with section 1600) of division 2 of the Fish and Game Code:
(A) A final streambed alteration agreement issued by the Department of Fish and Wildlife;
(B) A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife by the provisional licensee;
(C) Written verification by the Department of Fish and Wildlife that the provisional licensee has submitted a complete notification described in section 1602 of the Fish and Game Code; or
(D) Written verification by the Department of Fish and Wildlife that a streambed alteration agreement is not needed.
(c) For provisional license renewals on or after July 1, 2023, in addition to the information required in section 15020, a provisional licensee must also provide to the Department:
(1) Documentation, such as a full or partial copy of the administrative record, demonstrating that one of the following CEQA requirements has been met:
(A) The local jurisdiction has prepared and circulated for public review a negative declaration or a mitigated negative declaration;
(B) The local jurisdiction has determined that an environmental impact report is required pursuant to section 21157 of the Public Resources Code and has either made substantial progress in preparing that environmental impact report or has a contract or contracts with consultants in place for the preparation of that environmental impact report; (C) The local jurisdiction has certified that it has conducted a reasonably comprehensive site-specific review and has reviewed, prepared, and deemed complete an initial study, addendum, or checklist pursuant to title 14, California Code of Regulations, section Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 23 of 216 15063, 15164, 15168, or 15183 demonstrating consistency with a previously circulated and adopted negative declaration, mitigated negative declaration, or environmental impact report, in preparation for approval of an annual license; or (D) The local jurisdiction has reviewed, prepared, and deemed complete a notice of exemption pursuant to section 21108 or 21152 of the Public Resources Code, except for ministerial projects not subject to the California Environmental Quality Act pursuant to section 21080(b)(1) of the Public Resources Code.
(E) Documentation submitted pursuant to subsection (c)(1) may include, but is not limited to:
(i) Any environmental documentation, including, but not limited to, an exemption, initial study, negative declaration, mitigated negative declaration, and/or environmental impact report;
(ii) Any staff reports and related documents prepared by the local jurisdiction; (iii) Any written transcript or minutes of the proceedings of the local jurisdiction; (iv) Any notice(s) issued by the local jurisdiction to comply with CEQA and the CEQA Guidelines;
(v) Any proposed decisions or findings considered by the local jurisdiction by its staff or the applicant; and
(vi) Any documentation of the local jurisdiction’s final decision. (2) For cultivation licensees, one of the following forms of documentation demonstrating progress with compliance with chapter 6 (commencing with section 1600) of division 2 of the Fish and Game Code:
(A) A final streambed alteration agreement issued by the Department of Fish and Wildlife;
(B) A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife by the provisional licensee; or
(C) Written verification from the Department of Fish and Wildlife that a streambed alteration agreement is not needed.
(d) The Department will not renew a provisional license authorizing cultivation if:
(1) The State Water Resources Control Board has notified the Department that the provisional licensee is not in compliance with section 26060.1(a) or (b) of the Business and Professions Code or the principles, guidelines, and requirements established pursuant to section 13149 of the Water Code.
(2) The Department of Fish and Wildlife has notified the Department that the provisional licensee is not in compliance with any final streambed alteration agreement, any conditions set forth in a signed draft streambed alteration agreement, or a condition established pursuant to section 26060.1(a) or (b)(1) and (2) of the Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 24 of 216 (3) After January 1, 2023, if renewing the license would cause a licensee to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation or 22,000 square feet for mixed-light or indoor cultivation. For the purposes of this section, premises will be considered contiguous if they are connected, touching, or adjoining.

Authority: Section 26013, Business and Professions Code. Reference: Section 26050.2, Business and Professions Code.
§15001.3. Notice of Provisional License Review.
(a) When the Department is considering the suspension, revocation, or denial of renewal of a provisional license pursuant to Business and Professions Code section 26050.2, the Department shall issue a Notice of Provisional License Review to a provisional licensee for failure to comply with the Act or its implementing regulations. (b) The Notice of Provisional License Review shall be in writing and state the following:
(1) The nature and facts of each violation, including a reference to the statutory and/or regulatory section(s) violated;
(2) The manner in which the provisional licensee must correct the violation(s) to achieve compliance;
(3) That the Department is considering suspending, revoking, or denying the renewal of the provisional license.
(4) That the provisional licensee may provide the Department with information related to the observed violation(s) and potential license action for the Department’s consideration during its provisional license review. The information may include statements, including a statement that the Department should not take the action under consideration, and any relevant documentation, including evidence that the violation(s) did not occur, of correction of the violation(s), or of mitigation. The provisional licensee may also request an informal meeting with the Department to discuss the matter and may be accompanied by an attorney or other representative.
(c) The Department shall serve the Notice of Provisional License Review by mail or electronic mail to the provisional licensee’s designated responsible party, or in person to the licensee or an employee or agent of the provisional licensee.

Authority: Section 26013, Business and Professions Code. Reference: Section 26050.2, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 25 of 216 §15001.4. Immediate Suspension of Provisional License.
(a) The Department may immediately suspend any provisional license, or immediately impose licensing restrictions or other conditions upon any provisional licensee, if necessary to protect public health, safety, or welfare. (b) An order issued pursuant to subsection (a) shall be in writing and describe the following:
(1) The nature and facts of each violation, including a reference to the statutory and/or regulatory section(s) violated; and
(2) Whether the provisional license is suspended or the provisional licensee may continue to operate subject to restrictions or other conditions. (c) Following the issuance of an order pursuant to subsection (a), the Department shall serve the provisional licensee with a Notice of Provisional License Review pursuant to section 15001.3.

Authority: Section 26013, Business and Professions Code. Reference: Section 26050.2, Business and Professions Code.
§15002. Annual License Application Requirements.
(a) Applications may be completed and submitted online at www. cannabis.ca.gov. (b) Applicants who submit their applications online shall first register for a user account if required by the licensing system. To register for a user account, the applicant shall do all of the following as requested by the licensing system:
(1) Create a username, password, and security question and answer; (2) Provide an email address; and
(3) Provide the owner’s first and last name, primary phone number, Social Security number or individual taxpayer identification number, date of birth, and mailingaddress. (c) An application must be completed by an owner as defined by section 15003 of this division. An application for an annual cannabis license includes the following:
(1) The legal first and last name of the applicant and the legal business name of the commercial cannabis business.
(2) Every business trade name, fictitious business name, and doing business as (“DBA”) under which the commercial cannabis business will operate. (3) The commercial cannabis license for which the applicant is applying, and whether the applicant is requesting that the license be designated as medicinal, adult-use, or both, if applicable.
(4) Payment of an application fee pursuant to section 15014 of this division. (5) The physical address of the premises. If the Department is unable to confirm that the address provided is valid, then the applicant shall provide a document that confirms the physical address of the premises. Such a document may include a utility bill, printed information from the county assessor, deed, or title.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 26 of 216 (6) The mailing address for the commercial cannabis business, if different from the premises address.
(7) The telephone number for the commercial cannabis business. (8) The website address of the commercial cannabis business, if any. (9) The number under which the commercial cannabis business files federal taxes, such as a federal employer identification number, federal taxpayer identification number, individual taxpayer identification number, Social Security number, or national identification number.
(10) Contact information for the owner of the commercial cannabis business who will serve as the designated primary contact person or designated responsible party for the business, including the name, title, phone number, and email address of the individual. (11) The full legal name, mailing address, primary contact phone number, email address, and preferred method of written communication (e.g., standard mail or email) of each individual or entity serving as agent for service of process for the commercial cannabis business, if any.
(12) A description of the business organizational structure of the commercial cannabis business, such as partnership, joint venture, limited liability company, sole proprietorship, trust, or corporation.
(13) Upon request, business formation documents that are not available online through the California Secretary of State, which may include, but are not limited to operating agreements, bylaws, and other documents that establish ownership or control over the commercial cannabis business. If the commercial cannabis business is held in trust, the applicant shall provide a copy of the certificate of trust establishing trustee authority. (14) A commercial cannabis business that is a foreign corporation or foreign limited liability company shall include in its application a certificate of qualification, certificate of registration, or certificate of status issued by the California Secretary of State. (15) A complete list of every financial interest holder of the commercial cannabis business as defined in section 15004 of this division, who is not an owner as defined in section 15003 of this division. The list of financial interest holders shall include:
(A) For financial interest holders that are individuals, the first and last name of the individual, a contact phone number and email address, and the type and number of the individual’s government-issued identification, such as a driver’s license. (B) For financial interest holders that are entities, the legal business name, the name and phone number and email address of the entity’s primary contact, and federal taxpayer identification number of the entity.
(16) A complete list of every owner of the commercial cannabis business, as defined in section 15003 of this division. Each individual named on this list shall submit the following information:
(A) The full name of the owner.
(B) The owner’s title within the commercial cannabis business.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 27 of 216 (C) The owner’s date of birth and place of birth.
(D) The owner’s Social Security number or individual taxpayer identification number. (E) The owner’s mailing address.
(F) The owner’s telephone number. This may include a number for the owner’s home, business, or mobile telephone.
(G) The owner’s email address.
(H) The owner’s current employer.
(I) The percentage of the ownership interest held in the commercial cannabis business by the owner.
(J) The number of the owner’s government-issued identification. Acceptable forms of identification are a document issued by a federal, state, county, or municipal government that includes the name, date of birth, height, gender, and photo of the person, such as a driver license.
(K) A copy of the owner’s completed application for electronic fingerprint images submitted to the Department of Justice.
(L) A statement of rehabilitation may be submitted by the owner for any conviction, but is not required. The statement of rehabilitation is to be written by the owner and may contain evidence that the owner would like the Department to consider that demonstrates the owner’s fitness for licensure. Supporting evidence may be attached to the statement of rehabilitation and may include, but is not limited to, a certificate of rehabilitation under Penal Code section 4852.01, and dated letters of reference from employers, instructors, or professional counselors that contain valid contact information for the individual providing the reference.
(M) If applicable, a detailed description of any administrative orders or civil judgments for violations of labor standards, any suspension of a commercial cannabis license, revocation of a commercial cannabis license, or sanctions for unlicensed commercial cannabis activity by a licensing authority, local agency, or state agency against the owner in their individual capacity or a business entity in which the owner was an owner or officer within the three years immediately preceding the date of the application. The owner may provide mitigating information including, but not limited to, a statement of rehabilitation, to the Department for consideration if any prior discipline disclosed pursuant to this section may result in denial of the application.
(N) Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with this application is complete, true, and accurate. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued. (17) Evidence that the commercial cannabis business has the legal right to occupy and use the proposed location that complies with section 15007 of this division. (18) An attestation that the proposed premises is in compliance with Business and Professions Code section 26054(b) and, if requested, evidence of compliance. For Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 28 of 216 purposes of this section, evidence of compliance with Business and Professions Code section 26054(b) may be a copy of a valid license, permit, or other authorization issued by the applicable local jurisdiction or a notification from the applicable local jurisdiction stating that the commercial cannabis business is in compliance with local ordinances and regulations.
(19) For a commercial cannabis business with 20 or more employees, the applicant shall either provide a notarized statement that the commercial cannabis business will enter into, or demonstrate that it has already entered into, and abide by the terms of a labor peace agreement. For a commercial cannabis business with less than 20 employees that has not yet entered into a labor peace agreement, provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 20th employee. (20) The applicant shall provide a valid seller’s permit number issued by the California Department of Tax and Fee Administration, if applicable. If the commercial cannabis business has not yet received a seller’s permit, the commercial cannabis business shall attest that the commercial cannabis business is currently applying for a seller’s permit. (21) A diagram of the premises as required by section 15006 of this division. (22) Proof of a surety bond of at least $5,000 payable to the State of California for each licensed premises. All bonds required under this section shall be issued by a corporate surety licensed to transact surety business in the State of California. An aggregated bond may be used when multiple licenses are held by the same commercial cannabis business.
(23) Additional information as required by section 15011. (24) When an applicant provides a license, permit, or other authorization from the local jurisdiction where the licensed premises will be or is located, the Department will notify the applicable local jurisdiction to confirm the validity of the authorization. If the local jurisdiction does not respond within 10 calendar days, the Department shall consider the authorization valid.
(25) The limited waiver of sovereign immunity required by section 15009 of this division, if applicable.
(26) Evidence of exemption from, or compliance with, the California Environmental Quality Act as required by section 15010 of this division. (27) The commercial cannabis business’ State Employer Identification Number (SEIN) issued by the California Employment Development Department, if applicable. (28) For a commercial cannabis business with more than one employee, the applicant shall attest that the commercial cannabis business employs, or will employ within one year of receiving a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course.
(29) An applicant shall disclose whether they have been denied a license or had a Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 29 of 216 license suspended or revoked by the Department or any other state cannabis licensing authority. The applicant shall provide the type of license denied, suspended, or revoked, the name of the licensing authority, and the date of the denial, suspension, or revocation. (d) An applicant for a cannabis event organizer license shall not be required to comply with subsections (c)(5), (c)(17), (c)(20), (c)(21), (c)(22), (c)(24), (c)(25), and (c)(26).

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050, 26051.5 and 26055, Business and Professions Code. §15002.1. Temporary Cannabis Event Application.
(a) A temporary cannabis event license shall only be issued to a person who holds a cannabis event organizer license issued by the Department. (b) An application for a temporary cannabis event license shall include the following:
(1) The name of the applicant. For applicants who are individuals, the applicant shall provide both the first and last name of the individual. For applicants who are business entities, the applicant shall provide the legal business name of the entity. (2) The license number for each state cannabis license held by the applicant. (3) The address of the location where the temporary cannabis event will be held. (4) The name of the temporary cannabis event.
(5) A diagram of the physical layout of the temporary cannabis event. The diagram shall clearly indicate where the temporary cannabis event will be taking place on the location grounds, all entrances and exits that will be used by participants during the event, all cannabis goods consumption areas, and all retail areas where cannabis goods will be sold. The hours during which cannabis goods will be sold shall be noted on the diagram.

The diagram shall also clearly indicate the area where cannabis waste will be stored, all areas where cannabis goods will be stored, and the specific location of each cannabis licensee who will be participating in the event. Each cannabis licensee participating in the event shall be identified with an assigned temporary cannabis event location number.

The diagram shall not contain highlighting and the markings on the diagram shall be in black-and-white print.
(6) The dates and hours of operation for which the temporary cannabis event license is being sought. A temporary event license is required for any date in which the applicant engages in onsite cannabis goods sales or allows onsite cannabis goods consumption. (7) Contact information for the applicant’s designated primary contact person regarding the temporary event license, including the name, title, address, phone number, and email address of the individual.
(8) Contact information for a designated contact person(s) who shall be onsite at the event and reachable by telephone at all times during the event. (9) Written approval from the local jurisdiction authorizing the applicant to engage in onsite cannabis goods sales to, and onsite consumption by, persons 21 years of age or Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 30 of 216 older at the temporary cannabis event at the proposed location. (10) A list of all licensees and employees who will be providing onsite sales of cannabis goods at the temporary cannabis event.
(11) Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with this application is complete, true, and accurate. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26200, Business and Professions Code.
§15003. Owners of Commercial Cannabis Businesses.
(a) An applicant for a commercial cannabis license or a licensee shall disclose all owners of the commercial cannabis business. An owner of the commercial cannabis business includes all of the following:
(1) A person with an aggregate ownership interest of 20 percent or more in the commercial cannabis business, unless the interest is solely a security, lien, or encumbrance. For purposes of this section, “aggregate” means the total ownership interest held by a single person through any combination of individually held ownership interests in a commercial cannabis business and ownership interests in an entity that has an ownership interest in the same commercial cannabis business. For example, a person who owns 10 percent of the stock in a commercial cannabis business as an individual shareholder and 100 percent of the stock in an entity that owns 10 percent of the stock in the same commercial cannabis business has a 20 percent aggregate ownership interest in the commercial cannabis business.
(2) An individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to:
(A) A member of the board of directors of a nonprofit.
(B) A general partner of a commercial cannabis business that is organized as a partnership.
(C) A non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company.
(D) The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.
(E) The chief executive officer, president or their equivalent, or an officer, director, vice president, general manger or their equivalent.
(b) If the commercial cannabis business is owned in whole or in part by an entity and the entity includes individuals who manage, direct, or control the operations of the commercial cannabis business, as described in subsection (a)(2)(E), those individuals shall also be disclosed as owners.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 31 of 216 (c) If available evidence indicates that an individual qualifies as an owner, the Department may notify the applicant or licensee that they must either disclose the individual as an owner and submit the information required by section 15002 or demonstrate that the individual does not qualify as an owner.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26001 and 26012, Business and Professions Code.
§15004. Financial Interest in a Commercial Cannabis Business. (a) An applicant for a commercial cannabis license or a licensee shall disclose all financial interest holders. A financial interest holder of the commercial cannabis business includes all of the following, except as provided in subsection (b):
(1) A person with an aggregate ownership interest of less than 20 percent. (2) A person providing a loan to the commercial cannabis business. (3) A person entitled to receive 10 percent or more of the profits of the commercial cannabis business, including:
(A) An employee who has entered into a profit share plan with the commercial cannabis business.
(B) A landlord who has entered into a lease agreement with the commercial cannabis business for a share of the profits.
(C) A consultant who is providing services to the commercial cannabis business for a share of the profits.
(D) A person acting as an agent, such as an accountant or attorney, for the commercial cannabis business for a share of the profits.
(E) A broker who is engaging in activities for the commercial cannabis business for a share of the profits.
(F) A salesperson who earns a commission.
(b) Financial interest holders do not include any of the following:
(1) A bank or financial institution whose interest constitutes a loan; (2) Persons whose only financial interest in the commercial cannabis business is through an interest in a diversified mutual fund, blind trust, or similar instrument; (3) Persons whose only financial interest is a security interest, lien, or encumbrance on property that will be used by the commercial cannabis business; and (4) Persons who hold a share of stock that is less than 10 percent of the total shares in a publicly traded or privately held company.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26051.5, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 32 of 216 §15005. Personnel Prohibited from Holding Licenses.
(a) A license authorized by the Act and issued by the Department may not be held by, or issued to, any person holding office in, or employed by, any agency of the State of California or any of its political subdivisions when the duties of such person have to do with the enforcement of the Act or any other penal provisions of law of this State prohibiting or regulating the sale, use, possession, transportation, distribution, testing, manufacturing, or cultivation of cannabis or cannabis products. (b) This section applies to, but is not limited to, any person employed in the State of California Department of Justice as a peace officer, in any district attorney’s office, in any city attorney’s office, in any sheriff's office, or in any local police department. (c) No person listed in subsection (a) or (b) of this section may have any ownership interest, directly or indirectly, in any business to be operated or conducted under a cannabis license.
(d) This section does not apply to any person who holds a license in the capacity of executor, administrator, or guardian.

Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code.
§15006. Premises Diagram.
(a) An applicant shall submit to the Department, with the application, a complete and detailed diagram of the proposed premises. The diagram shall be used by the Department to determine whether the premises meets the requirements under this division and the Act. The Department shall deny an application if the premises does not qualify for licensure pursuant to Business and Professions Code section 26057. (b) The diagram shall show the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, and doorways, and shall include a brief statement or description of the principal activity to be conducted therein.
(c) The diagram shall show and identify commercial cannabis activities that will take place in each area of the premises, and identify limited-access areas. Commercial cannabis activities that shall be identified on the diagram include the following, if applicable to the business operations: storage, batch sampling, loading or unloading of shipments, packaging and labeling, customer sales, loading for deliveries, extraction, infusion, cultivation, and processing.
(d) The diagram shall show where all cameras are located and assign a number to each camera for identification purposes unless the premises is exempt from the video surveillance requirement pursuant to section 15315 or section 15044 of this division. (e) The diagram shall be to scale.
(f) The diagram shall not contain any highlighting and the markings on the diagram shall be in black-and-white print.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 33 of 216 (g) If the proposed premises consists of only a portion of a property, the diagram must be labeled indicating which part of the property is the proposed premises and for what purpose(s) the remaining property is used.
(h) If the proposed premises consists of only a portion of a property that will contain two or more licensed premises, the diagram shall clearly show the designated entrances and walls under the exclusive control of the commercial cannabis business for the premises, as well as the designated entrances and walls for each additional premises. The diagram shall also show all proposed common or shared areas of the property. Such areas may include lobbies, bathrooms, hallways, and breakrooms.
(i) If the commercial cannabis business is seeking a license to conduct cultivation activities on the proposed premises, the following must be clearly identified on the premises diagram:
(1) All roads and water crossings on the property.
(2) All water sources identified and labeled for beneficial use type, including but not limited to, irrigation, domestic, fire protection, power, fish and wildlife preservation and enhancement, and recreation.
(3) If the commercial cannabis business is proposing to use a diversion from a waterbody or an underground stream flowing in a known and definite channel, groundwater well, or rain catchment system as a water source for cultivation, include the following locations on the premises diagram with locations also provided as coordinates in either latitude and longitude or the California Coordinate System:
(A) Sources of water used, including the location of waterbody diversions(s), pump locations(s), and distribution system; and
(B) Location, type, and capacity of each water storage unit to be used for cultivation. (4) The assessor’s parcel number(s).
(5) For applicants for a Specialty Cottage, Specialty, Small, and Medium license:
(A) Canopy area(s), including aggregate square footage if the canopy areas are noncontiguous. All unique areas separated by identifiable boundaries pursuant to section 15000(m) shall be clearly described and labeled in the premises diagram. If mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation;
(B) Area(s) outside of the canopy where only immature plants shall be maintained, if applicable. This area may not be shared among multiple licenses held by one licensee; (C) Designated pesticide and other agricultural chemical storage area(s); (D) Designated processing area(s) if the licensee will process onsite. This area may not be shared among multiple licenses held by one licensee; (E) Designated packaging area(s) if the licensee will package products onsite. This area may not be shared among multiple licenses held by one licensee; (F) Designated composting area(s) if the licensee will compost cannabis waste onsite; Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 34 of 216 (G) Designated secured area(s) for cannabis waste if different from subsection (F) above;
(H) Designated area(s) for harvested cannabis storage;
(I) Designated area(s) for physically segregating cannabis or nonmanufactured cannabis products subject to an administrative hold pursuant to section 17815. This area may not be shared among multiple licenses held by one licensee; (J) Designated area(s) that are shared between licenses held by one licensee. The shared area(s) must be contiguous, be indicated on the premises diagram for each application, and be one or more of the following designated area(s) shared between licenses held by one licensee: pesticide and other agricultural chemical storage area(s), composting area(s), and secured area(s) for cannabis waste; and (K) Common use area(s), such as hallways, bathrooms, and breakrooms. This area may be shared by multiple licensees.
(6) For indoor and mixed-light license type applications, a lighting diagram with the following information must be included:
(A) Location of all lights in the canopy area(s); and
(B) Maximum wattage, or wattage equivalent, of each light. (7) For applicants for a nursery license:
(A) Designated pesticide and other agricultural chemical storage area(s); (B) Designated composting area(s) if the licensee will compost cannabis waste onsite; (C) Designated secured area(s) for cannabis waste if different from subsection (B) above;
(D) At least one of the following areas:
(i) Area(s) that shall contain only immature plants; or (ii) Designated seed production area(s) that may contain mature plants; and (E) Designated research and development area(s) that may contain mature plants, if the licensee will be conducting research and development activities that require a plant to flower.
(8) For applicants for a processor license:
(A) Designated processing area(s);
(B) Designated packaging area(s), if the licensee will package and label products onsite; (C) Designated composting area(s) if the licensee will compost cannabis waste onsite; (D) Designated secured area(s) for cannabis waste if different from subsection (C) above; and
(E) Designated area(s) for harvested cannabis storage.
(j) If the commercial cannabis business is seeking a Type S license to manufacture cannabis products or registering as a manufacturing Shared-Use Facility, the premises Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 35 of 216 diagram must also comply with all applicable requirements in sections 15011(b)(13)(D) and 17124-17128.
(k) If a proposed premises is located on only a portion of a property that also includes a residence, the diagram shall clearly show the designated buildings for the premises and the residence.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26051.5, Business and Professions Code.
§15007. Landowner Approval.
(a) If the commercial cannabis business is not the landowner of the real property upon which the premises is located, the commercial cannabis business shall provide to the Department a document from the landowner or the landowner’s agent that states that the commercial cannabis business has the right to occupy the property and acknowledges that the commercial cannabis business may use the property for the commercial cannabis activity for which the commercial cannabis business is applying for licensure.

An applicant shall also provide a copy of the rental agreement, as applicable. (b) If the commercial cannabis business is the landowner of the real property upon which the premises is located, the commercial cannabis business shall provide to the Department a copy of the title or deed to the property. (c) If the landowner is a trust, the landowner approval shall come from the person who holds equitable title in the real property.

Authority: Section 26013, Business and Professions Code. Reference: Section 26051.5, Business and Professions Code.
§15007.1. Electronic Signature.

The Department will accept an electronic signature that complies with Civil Code section 1633.2(h) on any documents required to be submitted to the Department and that are submitted electronically, except documents that are required to be notarized.

Authority: Section 26013, Business and Professions Code. Reference: Section 26013, Business and Professions Code.
§15009. Limited Waiver of Sovereign Immunity.
(a) Any applicant or licensee that may fall within the scope of sovereign immunity that may be asserted by a federally recognized tribe or other sovereign entity must waive any sovereign immunity defense that the applicant or licensee may have, may be asserted on its behalf, or may otherwise be asserted in any state administrative or judicial enforcement actions against the applicant or licensee, regardless of the form of relief sought, whether monetary or otherwise, under the state laws and regulations governing commercial cannabis activity. The applicant or licensee must submit a written waiver of sovereign immunity to the Department with any license application or renewal, which is Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 36 of 216 valid for the period of the license. The written waiver shall include that the applicant or licensee has the lawful authority to enter into the waiver required by this section, the applicant or licensee hereby waives sovereign immunity, and the applicant or licensee agrees to do all of the following:
(1) Provide documentation to the Department that establishes that the applicant or licensee has the lawful authority to enter into the waiver required by this section; (2) Conduct all commercial cannabis activity in full compliance with the state laws and regulations governing commercial cannabis activity, including submission to all enforcement provisions thereof;
(3) Allow access as required by state statute or regulation by persons or entities charged with duties under the state laws and regulations governing commercial cannabis activity to any licensed premises or property at which the applicant conducts any commercial cannabis activity, including licensed premises or property where records of commercial cannabis activity are maintained by or for the applicant or licensee; (4) Provide any and all records, reports, and other documents as may be required under the state laws and regulations governing commercial cannabis activity; (5) Conduct commercial cannabis activity with other state commercial cannabis licensees only, unless otherwise specified by state law;
(6) Meet all of the requirements for licensure under the state laws and regulations governing the conduct of commercial cannabis activity, and provide truthful and accurate documentation and other information of the applicant’s qualifications and suitability for licensure as may be requested; and
(7) Submit to the personal and subject matter jurisdiction of the California courts to address any matter related to the waiver or the commercial cannabis application, license, or activity, and that all such matters and proceedings shall be governed, construed and enforced in accordance with California substantive and procedural law, including but not limited to the Medicinal and Adult- Use Regulation and Safety Act and the Administrative Procedure Act.
(b) The Department shall not approve an application for a state license if approval of the license would violate the provisions of any local ordinance or regulation adopted in accordance with Business and Professions Code section 26200 that is issued by the county or, if within a city, the city, within which the licensed premises is to be located. (c) Any applicant or licensee must immediately notify the Department of any changes that may materially affect the applicant or licensee’s compliance with subsection (a) of this section.
(d) Any failure by an applicant or licensee to comply with the requirements of subsections (b) or (c) of this section shall be a basis for denial of an application or renewal or discipline of a licensee.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050 and 26051.5, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 37 of 216 §15010. Compliance with the California Environmental Quality Act (CEQA). (a) CEQA Guidelines” means the Guidelines for Implementation of the California Environmental Quality Act codified at title 14, California Code of Regulations, section 15000 et seq.
(b) An applicant shall provide evidence of compliance with, or exemption from, CEQA (division 13 (commencing with section 21000) of the Public Resources Code). The evidence provided may be any one of the following:
(1) A signed copy of a project-specific Notice of Determination or Notice of Exemption and a copy of the associated CEQA document, or reference to where it may be located electronically, a project description, and any accompanying permitting documentation from the local jurisdiction used for review in determining site-specific environmental compliance. Documentation may include a copy of the administrative record previously certified or adopted by the local jurisdiction that has already reviewed the commercial cannabis business’ proposed commercial cannabis activities. For purposes of this section, the administrative record may include, but is not limited to:
(A) Environmental documentation, including, but not limited to, exemptions, initial studies, negative declarations, mitigated negative declarations, and environmental impact reports; (B) Staff reports and related documents prepared by the local jurisdiction; (C) Transcripts or minutes of the proceedings of the local jurisdiction; (D) Notice(s) issued by the local jurisdiction to comply with CEQA and the CEQA Guidelines;
(E) Proposed decisions or findings considered by the local jurisdiction by its staff or the commercial cannabis business; and
(F) Documentation of the local jurisdiction’s final decision. (2) If the applicant does not have the evidence specified in subsection (b)(1), or if the Department determines that the evidence submitted is not sufficient to determine compliance or exemption from CEQA, then the applicant shall submit the information on a form to be prescribed by the Department. Such information shall include at least the following:
(A) The project location and surrounding land use, which shall:
(i) Describe the project location, including street address, city, county, Assessor’s Parcel Number, major cross streets, general plan designation, zoning designation, and any other physical description that clearly indicates the project site location. (ii) Describe the surrounding land uses and zoning designations within a one-half mile radius of the project and list all abutting land uses.
(iii) Include a vicinity map and aerial image to show the project location. (iv) Include photographs, not larger than 8.5 by 11 inches, of existing visual conditions as observed from publicly accessible vantage point(s).
(B) A project description, which shall:

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 38 of 216 (i) Describe the activities included in the project application and identify any other commercial cannabis activity or activities occurring at the proposed premises. (ii) Quantify the project size (total floor area of the project), and the lot size on which the project is located, in square feet.
(iii) List and describe any other related public agency permits and approvals, including any entitlements, required for this project, including those required by a planning commission, local air district, or regional water board. (iv) Identify whether the commercial cannabis business is licensed by, or has applied for licensure from, the Department or one of the prior state cannabis licensing authorities (the Bureau of Cannabis Control, the California Department of Food and Agriculture, and the California Department of Public Health) to engage in commercial cannabis activity at the proposed premises.
(v) Estimate the number of anticipated employees onsite, occupancy during operating hours, and frequency of deliveries or shipments originating from and/or arriving to the project site.
(C) The environmental setting, which shall:
(i) Describe natural characteristics (e.g., topography, vegetation, drainage, soil stability, habitat, etc.) on the project site.
(ii) Identify whether there are any watercourses or riparian habitats (e.g., drainage swales, stream courses, springs, ponds, lakes, creeks, tributary of creeks, wetlands) within 150 feet of the proposed premises.
(iii) Identify the approximate number of vehicle trips per day to be generated by the project and information regarding the days and times most trips are expected to occur. (iv) Identify whether the property contains natural features of scenic value or rare or unique characteristics (e.g., rock outcroppings, mature trees). (v) Identify whether the property has any historic designations or archeological remains onsite.
(vi) Identify whether the property contains habitat(s) for special status species. (vii) Identify the location, type, and quantity of hazardous materials, as defined by Health and Safety Code section 25260, that are stored, used, or disposed of at the project site and a copy of the Hazardous Material Business Plan (HMBP) prepared for the proposed premises, if any.
(viii) Discuss whether the project will increase the quantity and type of solid waste, as defined by Public Resources Code section 40191, or hazardous waste, as defined by Health and Safety Code section 25117, that is generated or stored onsite. (ix) Describe the project’s anticipated operational energy needs, identify the source of energy supplied for the project and the anticipated amount of energy per day, and explain whether the project will require an increase in energy demand and the need for additional energy resources.
(c) If the Department determines that a project does not qualify for an exemption and Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 39 of 216 further environmental review is required pursuant to the CEQA Guidelines, the Department may charge the applicant for the costs of preparation of any supplemental environmental document as well as the Department’s costs for procedures to comply with CEQA.

Authority: Section 26013, Business and Professions Code. Reference: Section 26055, Business and Professions Code.
§15011. Additional Information.
(a) A commercial cannabis business applying for a license to cultivate cannabis shall provide the following information:
(1) The hours of operation for each day of the week the commercial cannabis business will have staff on the licensed premises. The applicant must provide a minimum of two (2) hours of operation that are between 8:00am and 5:00pm (Pacific Time) on each day, Monday through Friday.
(2) For commercial cannabis businesses that are a cannabis cooperative as defined by division 10, chapter 22 (commencing with section 26220) of the Business and Professions Code, identification of all members. Identifying information shall include each member's license number for commercial cannabis activity, the licensing authority that issued the license, and the name of the licensed business. (3) For all cultivator license types except processor, evidence of enrollment in an order or waiver of waste discharge requirements with the State Water Resources Control Board or the appropriate Regional Water Quality Control Board. Acceptable documentation for evidence of enrollment may be a Notice of Applicability letter. Acceptable documentation that enrollment is not necessary may be a Notice of Non-Applicability. (4) Evidence that the commercial cannabis business has conducted a hazardous materials record search of the EnviroStor database for the proposed premises. If hazardous sites were encountered, the applicant shall provide documentation of protocols implemented to protect employee health and safety. (5) For indoor and mixed-light license types, identification of all power sources for cultivation activities, including, but not limited to, illumination, heating, cooling, and ventilation.
(6) A proposed cultivation plan that complies with the requirements in section 16309. (7) Identification of all water sources used for cultivation activities as required in section 16311.
(8) A copy of any final lake or streambed alteration agreement issued by the California Department of Fish and Wildlife, pursuant to sections 1602 or 1617 of the Fish and Game Code, or written verification from the California Department of Fish and Wildlife that a lake and streambed alteration agreement is not required. (9) An attestation that the applicant entity is an “agricultural employer” as defined by the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975; division 2, part 3.5 (commencing with section 1140) of the Labor Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 40 of 216 (10) An attestation that the local fire department has been notified of the cultivation site if the application is for an indoor license type.
(11) If applicable, the applicant shall provide evidence that the proposed premises is not located in whole or in part in a watershed or other geographic area that the State Water Resources Control Board or the Department of Fish and Wildlife has determined to be significantly adversely impacted by cannabis cultivation pursuant to section 26060(a)(2) of the Business and Professions Code.
(12) For all cultivator license types except processor, a signed attestation that states the commercial cannabis business shall contact the appropriate County Agricultural Commissioner regarding requirements for legal use of pesticides on cannabis prior to using any of the active ingredients or products included in the pest management plan and shall comply with all pesticide laws.
(b) A commercial cannabis business applying for a license to manufacture cannabis products shall provide the following information:
(1) The type(s) of activity that will be conducted at the proposed licensed premises (extraction, infusion, packaging, or labeling).
(2) The types of products that will be manufactured, packaged, or labeled at the premises, including a product list.
(3) The name, title, email address, and phone number of the onsite individual who manages the operation of the premises.
(4) The name, title, email address, and phone number of an alternate contact person for the premises, if applicable.
(5) The number of employees at the premises.
(6) Upon request by the Department, a description of inventory control procedures sufficient to demonstrate how the commercial cannabis business will comply with the requirements of section 17218, or a copy of the standard operating procedure addressing inventory control.
(7) Upon request by the Department, a description of quality control procedures sufficient to demonstrate how the commercial cannabis business will comply with all of the applicable requirements specified in sections 17208 through 17216, or a copy of the standard operating procedure addressing quality control. (8) Upon request by the Department, a description of the transportation process describing how cannabis or cannabis products will be transported into and out of the premises, or a copy of the standard operating procedure addressing transportation. (9) Upon request by the Department, a description of security procedures sufficient to demonstrate how the commercial cannabis business will comply with the applicable security requirements of sections 15042 through 15047, or a copy of the standard operating procedure addressing security procedures.
(10) Upon request by the Department, a description of the cannabis waste management procedures sufficient to demonstrate how the commercial cannabis business will comply Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 41 of 216 with the requirements of section 17223, or a copy of the standard operating procedure addressing cannabis waste management.
(11) A copy of the signed closed-loop system certification and a document evidencing approval of the extraction operation by the local fire code official required pursuant to section 17205 or 17206, if applicable.
(12) Any manufacturer submitting operating procedures and protocols to the Department pursuant to the Act and this division may claim such information as a trade secret or confidential by clearly identifying such information as “confidential” on the document at the time of submission. Any claim of confidentiality by a manufacturer must be based on the manufacturer’s good faith belief that the information marked as confidential constitutes a trade secret as defined in Civil Code section 3426.1(d), or is otherwise exempt from public disclosure under the California Public Records Act, Government Code section 6250 et seq.
(13) Applications for a Type S manufacturing license shall:
(A) Be submitted in accordance with section 15002;
(B) Include the license number and address of the registered shared-use facility at which the commercial cannabis business will conduct manufacturing operations; (C) Include a copy of the use agreement signed by both the Type S applicant and the primary licensee; and
(D) On the premises diagram submitted pursuant to section 15002(c)(21), indicate the designated area to be used by the Type S commercial cannabis business and detail where the commercial cannabis business will store its cannabis, cannabis concentrates, and cannabis products.
(E) A Type S license shall only be available to commercial cannabis businesses with a gross annual revenue of less than $1,000,000 as calculated pursuant to section 15014. (F) A Type S licensee may conduct the following operational activities:
(i) Infusions, as defined in section 15000(ee);
(ii) Packaging and labeling of cannabis products; and
(iii) Extractions with butter or food-grade oils, provided that the resulting extract or concentrate shall be used solely in the manufacture of the Type S licensee’s infused product and shall not be sold to any other licensee.
(c) A commercial cannabis business applying for a license to distribute cannabis and cannabis products shall provide the following information, upon the request of the Department:
(1) The following standard operating procedures:
(A) Transportation Procedures, Form DCC-LIC-015 (Amended 9/21); (B) Inventory Procedures, Form DCC-LIC-016 (Amended 9/21); (C) Non-Laboratory Quality Control Procedures, Form DCC-LIC-017 (Amended 9/21); and
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 42 of 216 (D) Security Procedures, Form DCC-LIC-018 (Amended 9/21). (2) Proof of compliance with the insurance requirements in section 15308. (3) Transport vehicle information required by section 15312. (d) A commercial cannabis business applying for a license to sell cannabis and cannabis products at retail shall provide the following information, upon request by the Department:
(1) The following standard operating procedures:
(A) Inventory Procedures, Form DCC-LIC-016 (Amended 9/21); (B) Non-Laboratory Quality Control Procedures, Form DCC-LIC-017 (Amended 9/21); (C) Security Procedures, Form DCC-LIC-018 (Amended 9/21); and (D) Delivery Procedures, Form DCC-LIC-020 (Amended 9/21). (2) Delivery employee information required by section 15415. (3) Delivery vehicle information required by section 15417. (e) A commercial cannabis business applying for a license to operate as a microbusiness shall provide the information required in subsections (a) through (d) as applicable for the activities they will be conducting under the license.
(f) Applicants for a cannabis event organizer license shall indicate whether the cannabis event organizer plans to hold 0-5 events, 6-10 events, 11-20 events, or more than 20 events during the license period.
(g) Applicants for a testing laboratory license shall provide the following information:
(1) The certificate(s) of accreditation required by sections 15701 and 15702, or the information required for an interim license required by section 15703. (2) Upon the request by the Department, the following standard operating procedures:
(A) Transportation Procedures, Form DCC-LIC-015 (Amended 9/21); (B) Inventory Procedures, Form DCC-LIC-016 (Amended 9/21); (C) Non-Laboratory Quality Control Procedures, Form DCC-LIC-017 (Amended 9/21); and
(D) Security Procedures, Form DCC-LIC-018 (Amended 9/21). (3) The operating procedures required by chapter 6 of this division. (h) The Department may request additional information and documents from the applicant. The Department will provide the applicant with a deadline for submittal of additional information. The Department will consider the complexity of the information requested and the ease with which the information can be obtained and transmitted to the Department by the applicant in determining the deadline. (i) Items required by this section may also be requested by the Department at any time following the issuance of a license. Licensees shall maintain the information required by this section and provide it to the Department upon request.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 43 of 216 Authority: Sections 26013 and 26130, Business and Professions Code. Reference:

Sections 26031, 26050, 26051.5 and 26130, Business and Professions Code. §15012. Incomplete and Abandoned Applications.
(a) Incomplete applications will not be processed. Applications will only be considered complete if all of the information required under sections 15002 and 15011 is included.

The Department shall issue a written notice to the applicant, by mail or through Department’s licensing system, informing them that the application is incomplete and identifying the information missing from the application. (b) If the applicant fails to submit all required information within 180 days from the date of the initial written notice, the application shall be deemed abandoned. (c) If the applicant fails to submit payment of the license fee within 60 calendar days from the date of the request for payment of the license fee, the application shall be deemed abandoned.
(d) The Department will not refund application fees for an incomplete or abandoned application.
(e) An applicant may reapply at any time following an abandoned application and will be required to submit a new application and application fee.

Authority: Section 26013 and 26130, Business and Professions Code. Reference:

Sections 26012, 26050 and 26051.5, Business and Professions Code. §15013. Withdrawal of Application.
(a) An applicant may withdraw an application at any time prior to the Department issuance of a license or denial of a license.
(b) Requests to withdraw an application must be submitted to the Department by mail in writing, dated, and signed by the applicant, or in writing by electronic mail to [email protected].
(c) In accordance with Business and Professions Code section 26057, withdrawal of an application shall not, unless the Department has consented in writing to such withdrawal, deprive the Department of its authority to institute or continue a proceeding against the commercial cannabis business for the denial of the license upon any ground provided by law or to enter an order denying the license upon any such ground. (d) The Department will not refund application fees for a withdrawn application. (e) An applicant may reapply at any time following the withdrawal of an application and will be required to submit a new application and application fee.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26050 and 26057, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 44 of 216 Article 3. Licensing
§15014. Fees.
(a) The application fee for an annual license under section 15002 of this division, a cannabis event organizer license under section 15600 of this division, a temporary cannabis event license under section 15601 of this division for each event, and physical modification of the premises under section 15027 of this division shall be paid by an applicant or licensee as provided by this division. Applicants and licensees shall pay the appropriate fee as outlined in this section.

Application Fee Schedule
License Type Fee Per
Application
Testing Laboratory, Distributor, Retailer, Microbusiness Annual Licenses $1,000
Cannabis Event Organizer License $1,000
Temporary Cannabis Event License $1,000
Physical Modification of Premises for Testing Laboratory, Distributor, Retailer, Microbusiness, and Manufacturing Licenses $500 Type 6, 7, N, or P Annual Manufacturing Licenses $1,000 Type S Annual Manufacturing License $500
Cultivation Annual Licenses See (f)
(b) The annual licensing fee for each license shall be paid by an applicant after the Department has approved the application. The renewal license fee shall be paid by the licensee as required by section 15020. The Department shall not issue the license until the annual licensing fee has been paid.
(c) To determine the appropriate annual license fee due for testing laboratory, distributor, retailer, and microbusiness license types, the applicant or licensee shall first estimate the gross revenue for the 12-month license period. Based on the license type sought, the applicant or licensee shall identify the appropriate tier category in which their expected gross revenue belongs, as identified in the Annual License Fee Schedule charts found in this section. The license fee associated with the licensing tier category the applicant or licensee has identified using their expected gross revenue shall be the license fee due for the original license or renewal. The following are the annual license fees due for these license types to be paid prior to issuance of a license or renewed license:

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 45 of 216 Annual License Fee Schedule for Testing Laboratory (Type 8) Annual License Fee Schedule for Distributor (Type 11 or 13), unless only engaging in transport only self-distribution
Annual License Fee Schedule for Distributor Transport Only Self-Distribution (Type 13)
Gross Revenue ($ Max. Per License) Fee Per License
Less than or equal to $160,000 $3,000
More than $160,000 and less or equal to $320,000 $6,000 More than $320,000 and less or equal to $480,000 $8,000 More than $480,000 and less or equal to $800,000 $13,000 More than $800,000 and less or equal to $1.2 million $20,000 More than $1.2 million and less or equal to $2.0 million $32,000 More than $2.0 million and less or equal to $2.8 million $48,000 More than $2.8 million and less or equal to $4.4 million $72,000 More than $4.4 million $112,000
Gross Revenue ($ Max. Per License) Fee Per License
Less than or equal to $1.0 million $1,500
More than $1.0 million and less or equal to $2.5 million $6,000 More than $2.5 million and less or equal to $5.0 million $11,250 More than $5.0 million and less or equal to $10.0 million $22,500 More than $10.0 million and less or equal to $20.0 million $45,000 More than $20.0 million and less or equal to $30.0 million $75,000 More than $30.0 million and less or equal to $50.0 million $120,000 More than $50.0 million and less or equal to $70.0 million $180,000 More than $70.0 million $240,000
Gross Revenue ($ Max. Per License) Fee Per License
Less than or equal to $1,000 $200
More than $1,000 and less or equal to $3,000 $500
More than $3,000 $1,000
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 46 of 216 Annual License Fee Schedule for Retailer (Type 9 or 10) Annual License Fee Schedule for Microbusiness (Type 12) Gross Revenue ($ Max. Per License) Fee Per License
Less than or equal to $1.0 million $5,000
More than $1.0 and less or equal to $2.0 million $12,000 More than $2.0 and less or equal to $3.0 million $20,000 More than $3.0 and less or equal to $4.0 million $32,000 More than $4.0 and less or equal to $6.0 million $45,000 More than $6.0 and less or equal to $7.0 million $60,000 More than $7.0 and less or equal to $10.0 million $80,000 More than $10.0 and less or equal to $20.0 million $100,000 More than $20.0 and less or equal to $30.0 million $120,000 More than $30.0 and less or equal to $40.0 million $140,000 More than $40.0 and less or equal to $50.0 million $160,000 More than $50.0 and less or equal to $60.0 million $180,000 More than $60.0 and less than or equal to $80.0 million $220,000 More than $80 million $300,000
(d) The annual license fee for a cannabis event organizer license shall be based on the number of planned operations during the license period as indicated in the chart below.

Gross Revenue ($ Max. Per License) Fee Per License
Less than or equal to $500,000 $2,500
More than $500,000 and less or equal to $750,000 $5,500 More than $750,000 and less or equal to $1.0 million $7,500 More than $1.0 million and less or equal to $1.5 million $11,000 More than $1.5 million and less or equal to $2.0 million $14,500 More than $2.0 million and less or equal to $3.0 million $22,500 More than $3.0 million and less or equal to $4.0 million $30,500 More than $4.0 million and less or equal to $5.0 million $38,500 More than $5.0 million and less or equal to $6.0 million $46,500 More than $6.0 million and less or equal to $7.5 million $57,000 More than $7.5 million $96,000
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 47 of 216 Annual License Fee Schedule for Cannabis Event Organizers Planned Operations (Number of Operations) Fee Per License 0-5 events annually $3,000
6-10 events annually $5,000
11-20 events annually $9,000
Greater than 20 events annually $20,000
(e) The annual license fee for a manufacturer license shall be based on gross revenue as indicated in the chart below.
(1) The applicant shall calculate the gross annual revenue for the licensed premises based on the annual gross sales of cannabis products and, if applicable, the annual revenue received from manufacturing, packaging, labeling or otherwise handling cannabis or cannabis products for other licensees, in the 12 months preceding the date of application.
(2) For a new license applicant, the gross annual revenue shall be based on the gross sales and revenue expected during the first 12 months following licensure. (3) For a manufacturer licensee that is also licensed as a distributor or retailer, and that sells or transfers cannabis products manufactured on the licensed premises in a nonarm’s length transaction, the annual gross sales or revenue for such transactions shall be based on the product’s fair market value if it were to be sold in an arm’s length transaction at wholesale.
(4) For purposes of this section, an “arm’s length transaction” means a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.

Annual License Fee Schedule for Manufacturing (Type 6, 7, N, P, or S) (f) The following are the application fees due for the specified annual cultivation license types to be paid at the time the complete application is submitted to the Department:

Gross Revenue ($ Max. Per License) Fee Per License
Less than or equal to $100,000 $2,000
More than $100,000 and less or equal to $500,000 $7,500 More than $500,000 and less or equal to $1.5 million $15,000 More than $1.5 million and less or equal to $3.0 million $25,000 More than $3.0 million and less or equal to $5.0 million $35,000 More than $5.0 million and less or equal to $10 million $50,000 More than $10 million $75,000
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 48 of 216 Application Fee Schedule for Cultivation
License Type Fee Per License
Specialty Cottage Outdoor $135
Specialty Cottage Indoor $205
Specialty Cottage Mixed-Light Tier 1 $340
Specialty Cottage Mixed-Light Tier 2 $580
Specialty Outdoor $270
Specialty Indoor $2,170
Specialty Mixed Light-Tier 1 $655
Specialty Mixed Light-Tier 2 $1,125
Small Outdoor $535
Small Indoor $3,935
Small Mixed-Light Tier 1 $1,310
Small Mixed-Light Tier 2 $2,250
Medium Outdoor $1,555
Medium Indoor $8,655
Medium Mixed-Light Tier 1 $2,885
Medium Mixed-Light Tier 2 $4,945
Nursery $520
Processor $1,040
(g) The following are the annual license fees due for the specified annual cultivation license types to be paid prior to issuance of a license or renewal of a license:

Annual License Fee Schedule for Cultivation
License Type Fee Per License
Specialty Cottage Outdoor $1,205
Specialty Cottage Indoor $1,830
Specialty Cottage Mixed-Light Tier 1 $3,035
Specialty Cottage Mixed-Light Tier 2 $5,200
Specialty Outdoor $2,410
Specialty Indoor $19,540
Specialty Mixed-Light Tier 1 $5,900
Specialty Mixed-Light Tier 2 $10,120
Small Outdoor $4,820
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 49 of 216 License Type Fee Per License
Small Indoor $35,410
Small Mixed-Light Tier 1 $11,800
Small Mixed-Light Tier 2 $20,235
Medium Outdoor $13,990
Medium Indoor $77,905
Medium Mixed-Light Tier 1 $25,970
Medium Mixed-Light Tier 2 $44,517
Nursery $4,685
Processor $9,370
(i) All fees are nonrefundable.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26051.5 and 26180, Business and Professions Code.
§15015. Payment of Fees.
(a) Any fee specified in this division shall be paid to the Department of Cannabis Control by cash, check, money order, debit card, or credit card. Check and money order payments may be made out to the Department of Cannabis Control.
(b) If the fee is paid by debit or credit card:
(1) The payment shall be made through the Department’s online licensing system; and (2) The applicant or licensee may be required to pay any associated processing or convenience fees to the third-party vendor processing the payment on behalf of the Department.
(c) Failure to pay the appropriate licensing fee is grounds for discipline. If the Department determines that the licensee paid an amount less than the appropriate licensing fee under section 15014 of this division, the licensee will be required to pay the balance of the appropriate fee and a penalty fee of 50 percent of the appropriate licensing fee. The Department in its discretion may waive the penalty fee.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26051.5 and 26180, Business and Professions Code.
§15017. Substantially Related Offenses and Criteria for Rehabilitation. (a) When evaluating whether an applicant or licensee has been convicted of a criminal offense, act, or professional misconduct that is substantially related to the qualifications, functions, or duties of the business for which the application is made, the Department shall consider all of the following criteria:
(1) The nature and gravity of the offense;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 50 of 216 (2) The number of years that have elapsed since the date of the offense; and (3) The nature and duties of the particular license in which the applicant seeks licensure or in which the licensee is licensed.
(b) For the purpose of denial, suspension, or revocation of a license, convictions that are substantially related to the qualifications, functions, or duties of the business for which the application is made include, but are not limited to:
(1) A violent felony conviction, as specified in Penal Code section 667.5(c). (2) A serious felony conviction, as specified in Penal Code section 1192.7(c). (3) A felony conviction involving fraud, deceit, or embezzlement. (4) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.
(5) A felony conviction for drug trafficking with enhancements pursuant to Health and Safety Code section 11370.4 or 11379.8.
(c) For the purpose of denial of a license to engage in commercial cannabis manufacturing, a conviction or violation from any jurisdiction that is substantially related to the qualifications, functions, or duties of the business for which the application is made include:
(1) A violation of section 110620, 110625, 110630, 110760, 110765, 110770, 110775, 111295, 111300, 111305, 111440, 111445, 111450, or 111455 of the Health and Safety Code that resulted in suspension or revocation of a license, administrative penalty, civil proceeding, or criminal conviction;
(2) A violation of Chapter 4 (sections 111950 through 112130) of Part 6 of Division 104 of the Health and Safety Code that resulted in suspension or revocation of a license, administrative penalty, civil proceeding, or criminal conviction; (3) A conviction under section 382 or 383 of the Penal Code; and (4) A violation identified in subsections (c)(1) or (c)(2) committed by a business entity in which an owner was an officer or had an ownership interest. (d) Except as provided in subsections (b)(4) and (b)(5) of this section and notwithstanding Chapter 2 (commencing with Section 480) of Division 1.5 of the Business and Professions Code, a prior conviction, where the sentence, including any term of probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is not considered substantially related, and shall not be the sole ground for denial of a license. Conviction for any controlled substance felony, subsequent to licensure, shall be grounds for revocation of a license or denial of the renewal of a license.
(e) When evaluating whether an applicant who has been convicted of a criminal offense, act, or professional misconduct that is substantially related to the qualifications, Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 51 of 216 functions, or duties of the business for which the application is made should be issued a license, the Department shall consider the following criteria of rehabilitation:
(1) The nature and gravity of the act, professional misconduct, or offense; (2) Whether the person has a felony conviction based on possession or use of cannabis or cannabis products that would not be a felony if the person was convicted of the offense on the date of the person's application;
(3) The applicant's criminal record as a whole;
(4) Evidence of any act, professional misconduct, or offense committed subsequent to the act, professional misconduct, or offense under consideration that could be considered grounds for denial, suspension, or revocation of a commercial cannabis activity license;
(5) The time that has elapsed since commission of the act, professional misconduct, or offense;
(6) The extent to which the applicant has complied with any terms of parole, probation, restitution, or any other sanctions lawfully imposed against the applicant; (7) If applicable, evidence of dismissal under Penal Code sections 1203.4, 1203.4a, 1203.41, 1203.42, or pursuant to another state's similar law; (8) If applicable, evidence the applicant has been granted clemency or a pardon by a state or federal executive;
(9) If applicable, a certificate of rehabilitation obtained under Penal Code section 4852.01 or another state's similar law; and
(10) Other evidence of rehabilitation submitted by the applicant. (f) If an applicant has been denied a license based on a conviction, the applicant may request a hearing pursuant to Business and Professions Code section 26058 to determine if the applicant should be issued a license.
(g) For the purpose of this section, conviction means a plea or verdict of guilty or a conviction following a plea of nolo contendere.

Authority cited: Section 26013, Business and Professions Code. Reference: Sections 480, 481, 482, 26012 and 26057, Business and Professions Code. §15018. Additional Grounds for Denial of a License.

In addition to the reasons for denial in Business and Professions Code section 26057, a license may be denied for the following reasons:
(a) The applicant’s proposed premises does not fully comply with standards set in regulation.
(b) The applicant’s proposed or licensed premises is substantially different from the diagram of the proposed premises submitted by the applicant, in that the size, layout, location of common entryways, doorways, or passage ways means of public entry or exit, Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 52 of 216 or identification of limited- access areas within the licensed premises is not the same. (c) The applicant denied the Department access to the licensed premises or the property identified in the application as the premises.
(d) The applicant made a material misrepresentation on the application. (e) The applicant did not correct the deficiencies within the application in accordance with sections 15002 and 15012 of this division.
(f) The applicant has been denied a license, permit, or other authorization to engage in commercial cannabis activity by a state or local licensing authority. (g) The applicant’s proposed premises is not in compliance with Division 13 (commencing with Section 21000) of the Public Resources Code. (h) The applicant has failed to remit taxes as required under the Revenue and Taxation Code.
(i) The applicant may be denied a license for any violations of law related to the operations of the commercial cannabis business or for any violations of law related to licensure.
(j) The applicant has engaged in conduct that is grounds for disciplinary action specified in section 26030 of the Act.

Authority: Section 26013, Business and Professions Code. Reference: Sections 480, 490, 26012, 26030 and 26050, Business and Professions Code. §15019. Excessive Concentration.
(a) In determining whether to grant, deny, or renew a license for a retail premises or microbusiness premises authorized to engage in retail sales, the Department shall consider if an excessive concentration exists in the area where the licensee will operate.

For the purposes of this section “excessive concentration” applies when either of the following conditions exist:
(1) The ratio of licensees to population within the census tract or census division in which the applicant premises is located exceeds the ratio of licensees to population in the county in which the applicant premises is located, unless denial of the application would unduly limit the development of the legal market so as to perpetuate the illegal market for cannabis goods.
(2) The ratio of retail licenses or microbusiness licenses to the population within the census tract, census division, or jurisdiction exceeds that allowable by local ordinance adopted under Business and Professions Code section 26200. (b) “Population Within the Census Tract or Census Division” as used in this section means the population as determined by the most recent United States decennial or special census. Such population determination shall not operate to prevent an applicant from establishing that an increase of resident population has occurred within the census tract or census division.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 53 of 216 (c) “Population in the County” as used in this section shall be determined by the most recent annual population estimate for California counties published by the Demographic Research Unit, State Department of Finance.
(d) Beginning July 1, 2018, the Department shall calculate the ratios described in subsection (a) of this section once every six months using the most current available data. The Department’s consideration of whether to grant, deny, or renew a license shall be based upon the most recent ratio calculated by the Department on the date of the Department’s decision.
(e) The existence of an excessive concentration shall not be considered in determining whether to grant, deny, or extend a temporary license under Business and Professions Code section 26050.1.
(f) The applicant may provide reliable evidence establishing, to the satisfaction of the Department, that a denial of a license would unduly limit the development of the legal market so as to perpetuate the illegal market for cannabis goods.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26051, Business and Professions Code.
§15020. Renewal of License.
(a) To timely renew a license, a completed license renewal form and annual license fee pursuant to section 15014 of this division shall be received by the Department from the licensee no earlier than 60 calendar days before the expiration of the license and no later than 5:00 p.m. Pacific Time on the last business day before the expiration of the license if the renewal form is submitted to the Department at its office(s), or no later than 11:59 p.m. on the last business day before the expiration of the license if the renewal form is submitted to the Department through its electronic licensing system. Failure to receive a notice for license renewal does not relieve a licensee of the obligation to renew all licenses as required.
(b) In the event the license is not submitted for renewal prior to the expiration date, the licensee must not sell, transfer, transport, manufacture, test, or distribute any commercial cannabis or cannabis products until the license is renewed. (c) A licensee may submit a license renewal form up to 30 calendar days after the license expires. Any late renewal form will be subject to a late fee equal to 50 percent of the applicable licensing fee required by subsection (a) of this section. A licensee who does not submit a complete license renewal application, including the late fee, to the Department within 30 calendar days after the expiration of the license shall forfeit their eligibility for a license renewal and be required to submit a new license application. (d) The license renewal form shall contain the following:
(1) The name of the licensee. For licensees who are individuals, the applicant shall provide both the first and last name of the individual. For licensees who are business entities, the licensee shall provide the legal business name of the commercial cannabis business.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 54 of 216 (2) The license number and expiration date.
(3) The licensee’s address of record and licensed premises address. (4) Documentation demonstrating the licensee’s gross revenue for the current licensed period, such as a copy of the licensee’s state tax return filed with the California Department of Tax and Fee Administration. This subsection does not apply to the renewal of cultivation licenses.
(5) Documentation of any change to any item listed in the original application under section 15002 of this division that has not been reported to the Department through another process pursuant to the Act or this division.
(6) An attestation that all information provided to the Department in the license renewal form and the original application under section 15002 of this division or subsequent notification under sections 15023 and 15024 of this division is accurate and current. (7) If applicable, a limited waiver of sovereign immunity pursuant to section 15009 of this division.
(8) For a licensee with more than one employee, the licensee shall attest that it employs, or will employ within one year of renewing the license, one supervisor and one employee who has successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course.
(e) A cultivation licensee may request a license designation change from an A-License to an M-License or an M-License to an A-License during the annual license renewal timeframes outlined in subsections (a)-(c) of this section for the annual license for which the license designation change is being requested. License designation changes will be considered only if the annual licensed cultivation premises for which the change is being requested contains only one A-License or only one M-License designation pursuant to section 15002(c)(3).
(f) Beginning January 1, 2022, an application for renewal of a license to engage in commercial cannabis cultivation shall include the following records, for each power source indicated on the application for licensure for the previous annual licensed period:
(1) Total electricity supplied by local utility provider, name of local utility provider, and greenhouse gas emission intensity per kilowatt hour reported by the utility provider under section 398.4(c) of the Public Utilities Code for the most recent calendar year available at time of submission;
(2) Total electricity supplied by a zero net energy renewable source, as set forth in section 398.4(h)(5) of the Public Utilities Code, that is not part of a net metering or other utility benefit;
(3) Total electricity supplied from other unspecified sources, as defined in section 398.2(e) of the Public Utilities Code, and other onsite sources of generation not reported to the local utility provider (e.g., generators, fuel cells) and the greenhouse gas emission intensity from these sources; and
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 55 of 216 (4) Average weighted greenhouse gas emission intensity considering all electricity use in subsections (f)(1)-(f)(3).

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26050, Business and Professions Code.
§15021. Denial of License.
(a) The Department may deny an application for a new license or a renewal of a license for any reason specified in Business and Professions Code section 26057, and on any additional grounds including grounds for denial under section 15018 of this division, and grounds for discipline under the Act or this division.
(b) Upon denial of an application for a license or renewal of a license, the Department shall notify the applicant in writing of the reasons for denial, and the right to a hearing to contest the denial.
(c) The applicant may request a hearing to contest the denial by submitting a written request to the Department.
(1) The written request for a hearing must be postmarked within 30 calendar days of service of the notification of denial.
(2) If the written request for a hearing is not received within the required timeframe, the applicant’s right to a hearing is waived.
(3) Upon timely receipt of the written request for hearing, the Department shall set a date for hearing to be conducted in accordance with chapter 5 (commencing with section 11500) of part 1 of division 3 of title 2 of the Government Code. (d) If a license application is denied due to an owner’s conviction history, the Department shall notify the applicant of the process for the owner to request a copy of their complete conviction history and question the accuracy or completeness of the record pursuant to Penal Code sections 11122 through 11127.

Authority: Section 26013, Business and Professions Code; Reference: Sections 26012, 26057 and 26058, Business and Professions Code.
§15023. Business Modifications.

Business modifications shall be made in accordance with the following:
(a) Changes to standard operating procedures may be made without providing notification to the Department, except as required by the Act or this division. Licensees shall maintain a copy of all current and prior operating procedures as required by section 15037 of this division.
(b) If at the time of licensure, a licensee employed less than 20 employees and later employs 20 or more employees, within 60 days of employing 20 or more employees, the licensee shall provide to the Department a notarized statement that the licensee will enter into a labor peace agreement and will abide by the terms of the agreement.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 56 of 216 (c) Licenses are not transferrable or assignable to another person or owner. In the event of the sale or other transfer of the business or operations covered by the licensee, changes in ownership shall be made in accordance with the following:
(1) If one or more of the owners change, the new owners shall submit the information required under section 15002(c)(16) for each new owner to the Department within 14 calendar days of the effective date of the ownership change. The business may continue to operate under the active license while the Department reviews the qualifications of the new owner(s) in accordance with the Act and these regulations to determine whether the change would constitute grounds for denial of the license, if at least one existing owner is not transferring his or her ownership interest and will remain as an owner under the new ownership structure. If all owners will be transferring their ownership interest, the business shall not operate under the new ownership structure until a new license application has been submitted to and approved by the Department, and all application and license fees for the new application have been paid. (A) A change in ownership occurs when a new person meets the definition of owner in section 15003 of this division.
(B) A change in ownership does not occur when one or more owners leave the business by transferring their ownership interest to the other existing owner(s). (2) In cases where one or more owners leave the business by transferring their ownership interest to the other existing owner(s), the owner or owners that are transferring their interest shall provide a signed statement to the Department confirming that they have transferred their interest within 14 calendar days of the change. (d) When there is a change in financial interest holder(s) in the commercial cannabis business who do not meet the requirements for a new license application under this section, the licensee shall submit the information required by section 15002(c)(15) of this division to the Department within 14 calendar days of the change. (e) When any of the following changes occur, the licensee shall notify the Department within 14 calendar days of the change:
(1) Any change to contact information from the information provided to the Department in the original application.
(2) Any change in name if the licensee is an individual, or any change in legal business name if the licensee is a business entity.
(3) Any change in business trade names, fictitious business names, or doing business as (“DBA”).
(4) Any change in the bond required under section 15002(c)(22) of this division. (f) Licensees for all activities except cultivation may request to add an A-designation or M-designation to their license by sending a notification to the Department signed by at least one owner as defined in section 15003 of this division. A licensee shall not operate under the requested designation until they have received approval from the Department. (g) Microbusiness licensees may add a commercial cannabis activity to their license or remove a commercial cannabis activity from their license if doing so is consistent with the Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 57 of 216 requirement set forth in section 15500(a) of this division that licensees engage in at least three (3) commercial cannabis activities. Licensees shall request the modification by completing a request to modify the licensed premises pursuant to section 15027 of this division. A licensee shall not engage in a new commercial cannabis activity until they have paid for the modification and received approval from the Department. (h) Except as permitted under Business and Professions Code section 26050.2(h), licensees may not be transferred from one premises to another. Licensees shall not operate out of a new premises until they have been issued a new license. (i) For any business modification or notification under this section, licensees shall use and submit to the Department the Licensee Notification and Request Form, Notifications and Requests to Modify a License, DCC-LIC-027 (Amended 9/21), which is incorporated herein by reference, unless the change relates to contact information and can be made through the Department’s online system.

Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code.
§15024. Death, Incapacity, or Insolvency of a Licensee. (a) In the event of the death, incapacity, receivership, assignment for the benefit of creditors or other event rendering one or more owners incapable of performing the duties associated with the license, the owner or owners’ successor in interest (e.g., appointed guardian, executor, administrator, receiver, trustee, or assignee) shall notify the Department in writing, within 14 calendar days, by submitting the Licensee Notification and Request Form, Notifications and Requests to Modify a License, DCC-LIC-027 (Amended 9/21), which is incorporated herein by reference. (b) To continue operations or surrender the existing license, the successor in interest shall submit to the Department the following:
(1) The name of the successor in interest.
(2) The name of the owner(s) for which the successor in interest is succeeding and the license number;
(3) The phone number, mailing address, and email address of the successor in interest; and
(4) Documentation demonstrating that the owner(s) is incapable of performing the duties associated with the license such as a death certificate or a court order, and documentation demonstrating that the person making the request is the owner or owners’ successor in interest such as a court order appointing guardianship, receivership, or a will or trust agreement.
(c) The Department may give the successor in interest written approval to continue operations on the licensed business premises for a period of time specified by the Department:
(1) If the successor in interest or another person has applied for a license from the Department for the licensed premises and that application is under review; Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 58 of 216 (2) If the successor in interest needs additional time to destroy or sell cannabis or cannabis products; or
(3) At the discretion of the Department.
(d) The successor in interest is held subject to all terms and conditions under which a state cannabis license is held pursuant to the Act.
(e) The approval creates no vested right to the issuance of a state cannabis license.

Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code.
§15024.1. Cannabis and Cannabis Products After Termination of License.

In the event a license is terminated for any reason while cannabis or cannabis products remain on the premises, the following actions may be taken:
(a) The cannabis or cannabis products may be destroyed by the former licensee; or (b) A licensed distributor or licensed microbusiness authorized to engage in distribution may be authorized by the Department to procure and distribute the former licensee’s entire inventory stock in accordance with the following;
(1) A licensed distributor or licensed microbusiness authorized to engage in distribution shall, within 14 calendar days of the termination of the former licensee’s license, submit a written request to the Department, on the Licensee Notification and Request Form, Notifications and Requests Regarding Regulatory Compliance, DCC-LIC-028 (New 9/21), which is incorporated by reference, for authorization to procure the cannabis or cannabis products from the former licensee; and
(2) Upon approval from the Department, the licensed distributor or licensed microbusiness authorized to engage in distribution shall transport the cannabis or cannabis products as follows:
(A) Cannabis goods shall be transported to a licensed distribution premises where the distributor shall arrange for laboratory testing and perform quality assurance in accordance with chapter 2 of this division. If the cannabis goods have already been tested in accordance with chapter 6 of this division and have a valid certificate of analysis for regulatory compliance testing that is less than 12 months old, the cannabis goods are not required to undergo additional testing.
(B) Cannabis that requires further processing as defined in section 15000(e), or further manufacturing as defined in section 15000(pp), shall be transported to a licensee licensed to conduct the additional processing or manufacturing. (C) Cannabis or cannabis products that require packaging and labeling shall be transported to a licensee licensed to conduct packaging and labeling of the cannabis or cannabis products.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 59 of 216 (D) Cannabis products that require further manufacturing as defined in section 15000(pp) shall be transported to a licensed manufacturer.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5 and 26013, Business and Professions Code.
§15025. Additional Premises Requirements for Retailers and Microbusinesses Authorized to Engage in Retail.
(a) Licensed retailers and licensed microbusinesses authorized to engage in retail sales shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of this division.
(1) The sale and delivery of cannabis goods shall not occur through a pass-out window or a slide-out tray to the exterior of the licensed premises. (2) Licensed retailers or licensed microbusinesses authorized to engage in retail sales shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle.
(3) No cannabis goods shall be sold and/or delivered by any means or method to any person within a motor vehicle.
(b) Alcoholic beverages as defined in Business and Professions Code section 23004 shall not be stored or consumed on a licensed premises. (c) Any licensed retailer or microbusiness authorized to conduct retail sales that is adjacent to another premises engaging in manufacturing, cultivation, or distribution shall be separated from those premises by walls, and any doors leading to the cultivation, distribution, or manufacturing premises shall remain closed. (d) Cannabis goods shall not be dispersed in the air throughout the premises or throughout a portion of the premises by an oil diffuser or any other vaporizing device that is intended to disperse the vapor throughout the premises or throughout a portion of the premises. This section shall not be interpreted to prohibit cannabis goods consumption on the premises of a licensed retailer or licensed microbusiness authorized to engage in retail sales that is conducted in accordance with Business and Professions Code section 26200(g).
(e) Notwithstanding subsection (a), a commercial cannabis business may have a drive-in or drive-through window only if, prior to June 1, 2018:
(1) The commercial cannabis business received a license or permit from the local jurisdiction for a premises including a drive-in or drive-through window which was disclosed on the local application; or
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 60 of 216 (2) The commercial cannabis business has submitted an application to the local jurisdiction for a license or permit which, at the time of submission of the application, included information that a drive-in or drive-through window was already part of, or proposed to be part of, the premises, and after June 1, 2018, the local jurisdiction approves the premises with a drive-in or drive-through window.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26001, 26012 and 26053, Business and Professions Code.
§15027. Physical Modification of Premises.
(a) A licensee shall not, without the prior written approval of the Department, make a physical change, alteration, or modification of the licensed premises that materially or substantially alters the licensed premises or the use of the licensed premises from the premises diagram originally filed with the license application. A licensee whose licensed premises is to be materially or substantially changed, modified, or altered is responsible for filing a request for premises modification with the Department. (b) Material or substantial changes, alterations, or modifications requiring approval include, but are not limited to:
(1) The removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway, or passage alters or changes limited-access areas within the licensed premises; (2) The removal, creation, or relocation of a wall or barrier; and (3) Changing the activities conducted in or the use of an area identified in the last premises diagram provided to the Department.
(c) Licensees who are engaging in the cultivation of cannabis must obtain approval under this section for the following modifications:
(1) Modification to any area described in the licensee’s cultivation plan including, but not limited to, the removal, creation, or relocation of canopy, processing, packaging, composting, harvest storage, and chemical storage areas; (2) Change in water or power source(s); and
(3) Modifications or upgrades to electrical systems at a licensed premises shall be performed by a licensed electrician. A copy of the electrician’s license shall be submitted with any premises modification requests for electrical systems. (d) Licensees who are engaging in commercial cannabis manufacturing must obtain approval under this section for the following modifications:
(1) The addition of any extraction method subject to the requirements of section 17206; (2) The addition of any other extraction method that necessitates a substantial or material alteration of the premises;
(3) The addition of infusion operations if no infusion activity is listed in the current license application on file with the Department; and
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 61 of 216 (4) A substantial or material alteration of the licensed premises from the current premises diagram on file with the Department.
(e) Licensed cultivators shall request approval of a physical change, alteration, or modification through the online licensing system. All other licensees shall request approval of a physical change, alteration, or modification in writing, by submitting the Licensee Notification and Request Form, Notifications and Requests to Modify a License, DCC-LIC-027 (Amended 9/21), which is incorporated herein by reference, and the request shall include:
(1) A new premises diagram that conforms to requirements in section 15006 of this division; and
(2) A fee pursuant to section 15014 of this division for all licensees except licensed cultivators.
(f) A licensee shall provide additional documentation requested by the Department to evaluate the licensee’s request to modify the licensed premises.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26055, Business and Professions Code.
§15034. Significant Discrepancy in Inventory.

A determination by a licensed retailer, licensed distributor, or microbusiness authorized to engage in retail or distribution on whether a discrepancy in inventory is significant shall be made in accordance with the following:
(a) A significant discrepancy in inventory means a difference in actual inventory compared to records pertaining to inventory of at least 3 percent of the average monthly sales of the licensee.
(b) For the purposes of this section, average monthly sales shall be calculated by taking a per month average of the total sales for the previous 6 months. If the licensee has not been in operation for at least 6 months, only the months in which the licensee was operating shall be used in determining average monthly sales. (c) For the purposes of this section, the licensee’s acquisition price shall be used to determine the value of cannabis or cannabis products in a licensee’s inventory.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15035. Notification of Criminal Acts, Civil Judgments, Violations of Labor Standards, and Revocation of a Local License, Permit, or Other Authorization After Licensure.
(a) A licensee shall ensure that the Department is notified in writing of a criminal conviction of any owner, either by mail or electronic mail, within 48 hours of the conviction. The written notification to the Department shall include the date of conviction, the court docket number, the name of the court in which the licensee was convicted, and Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 62 of 216 the specific offense(s) for which the licensee was convicted. (b) A licensee shall ensure that the Department is notified in writing of a civil penalty or judgment rendered against the licensee or any owner in their individual capacity, either by mail or electronic mail, within 48 hours of delivery of the verdict or entry of judgment, whichever is sooner. The written notification shall include the date of verdict or entry of judgment, the court docket number, the name of the court in which the matter was adjudicated, and a description of the civil penalty or judgment rendered against the licensee.
(c) A licensee shall ensure that the Department is notified in writing of an administrative order or civil judgment for violations of labor standards against the licensee or any owner in their individual capacity, either by mail or electronic mail, within 48 hours of delivery of the order. The written notification shall include the date of the order, the name of the agency issuing the order, and a description of the administrative penalty or judgment rendered against the licensee.
(d) A licensee shall ensure that the Department is notified in writing of the revocation of a local license, permit, or other authorization, either by mail or electronic mail, within 48 hours of receiving notice of the revocation. The written notification shall include the name of the local agency involved, a written explanation of the proceeding or enforcement action, and the specific violation(s) that led to revocation. (e) For any notification required under this section, licensees shall use and submit to the Department the Licensee Notification and Request Form, Notifications and Requests to Modify a License, DCC-LIC-027 (Amended 9/21), which is incorporated herein by reference.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26030 and 26031, Business and Professions Code.
§15036. Notification of Theft, Loss, and Criminal Activity. (a) A licensee shall notify the Department and local law enforcement within 24 hours of discovery of any of the following situations:
(1) The licensee discovers a significant discrepancy, as defined in section 15034 of this division, in its inventory.
(2) The licensee discovers diversion, theft, loss, or any other criminal activity pertaining to the operations of the licensee.
(3) The licensee discovers diversion, theft, loss, or any other criminal activity by an agent or employee of the licensee pertaining to the operations of the licensee. (4) The licensee discovers loss or unauthorized alteration of records related to cannabis or cannabis products, customers, or the licensee’s employees or agents. (5) The licensee discovers any other breach of security. (b) The notification to the Department pursuant to subsection (a) of this section shall be submitted on the Licensee Notification and Request Form, Notifications and Requests Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 63 of 216 Regarding Regulatory Compliance, DCC-LIC-028 (New 9/21), which is incorporated herein by reference, and shall include the date and time of occurrence of the theft, loss, or criminal activity, the name of the local law enforcement agency that was notified, and a description of the incident including, where applicable, the item(s) that were taken or lost.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15037. General Record Retention Requirements.
(a) Licensees must keep and maintain records in connection with the licensed commercial cannabis business. Records must be kept for at least seven years from the date of creation, unless a shorter time is specified. Records include, but are not limited to:
(1) Financial records including, but not limited to, bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration (formerly Board of Equalization) under title 18, California Code of Regulations, sections 1698 and 4901.
(2) Personnel records, including each employee’s full name, Social Security number or individual taxpayer identification number, date employment begins, and date of termination of employment, if applicable.
(3) Training records including, but not limited to, the content of the training provided and the names of the employees who received the training.
(4) Contracts regarding commercial cannabis activity.
(5) Permits, licenses, and other local authorizations to conduct the licensee’s commercial cannabis activity.
(6) All other documents prepared or executed by an owner or their employees or assignees in connection with the licensed commercial cannabis business. (7) Records required by the Act or this division.
(b) Records must be kept in a manner that allows the records to be produced for the Department in either hard-copy or electronic form.
(c) Records must be legible and accurate. No person may intentionally misrepresent or falsify records.
(d) Records must be stored in a secured area where the records are protected from debris, moisture, contamination, hazardous waste, and theft.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26160 and 26161, Business and Professions Code.
§ 15037.1. Licensee Authorization to Release Data to Financial Institutions. (a) A licensee may authorize the Department to provide information to a financial institution for purposes of facilitating the provision of financial services. The authorization Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 64 of 216 shall be made in writing, through a form prescribed by the Department, which shall include the following information:
(1) The name of the licensed business for which the licensee is authorizing the release of information;
(2) The business’ license number(s);
(3) The financial institution authorized to receive information; (4) The name, phone number, email address, and signature of the owner submitting the authorization;
(5) The categories of information specified in subsection (b) that are authorized for release; and
(6) An acknowledgement that the authorization to release information includes information that is otherwise protected from disclosure, that the licensee is waiving privilege and confidentiality, and that the scope of the release is strictly limited to the purposes of disclosure to the financial institution.
(b) After receipt of the authorization, the Department shall release the following information, as designated by the licensee, when requested by an authorized financial institution pursuant to section 15037.2 of this division:
(1) The license application(s), including renewal applications, excluding information required to be kept confidential pursuant to Penal Code section 11105 and confidential personal information of individual owners of the licensed business; (2) Information captured in the track-and-trace system established pursuant to Business and Professions Code section 26067, including, but not limited to, aggregated sales or transfer information, as applicable; and
(3) Documents issued to the licensee pursuant to disciplinary or enforcement proceedings.
(c) A licensee may withdraw the authorization to provide information to a financial institution at any time. The withdrawal shall be made in writing, through a form prescribed by the Department, and shall include the following information:
(1) The name of the licensed business for which the licensee is withdrawing the authorization of the release of information;
(2) The business’ license number(s);
(3) The financial institution from which authorization to receive information is withdrawn; and
(4) The name, phone number, email address, and signature of the owner submitting the withdrawal.

Authority: Section 26013, Business and Professions Code. Reference: Section 26260, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 65 of 216 § 15037.2. Financial Institution Request for Licensee Information.

A financial institution, as defined in Business and Professions Code section 26260(c)(3), may request information related to a licensee for purposes of facilitating the provision of financial services for that licensee. The request shall be made in writing, through a form prescribed by the Department, which shall include the following information:
(a) The name of the financial institution;
(b) The name, phone number, email, and signature of the representative of the financial institution requesting information;
(c) The business name and license number of the licensee for which the financial institution is requesting information;
(d) The type of financial services for which the information is requested (including, but not limited to, establishment or maintenance of bank accounts, extending loans, and providing insurance) and whether the request is for consideration of a new service or maintenance of an existing service;
(e) The specific information requested as described in section 15037.1(b), if authorized by the licensee; and
(f) An acknowledgment that use of the information is limited to that information which is necessary for the provision of financial services.

Authority: Section 26013, Business and Professions Code. Reference: Section 26260, Business and Professions Code.
§15038. Disaster Relief.
(a) If a licensee is unable to comply with any licensing requirements due to a disaster, the licensee may notify the Department of this inability to comply and request relief from the specific licensing requirement.
(b) The Department may exercise its discretion to provide temporary relief from specific regulatory requirements in this division and from other licensing requirements when allowed by law.
(c) Temporary relief from specific licensing requirements shall be issued for a reasonable amount of time in order to allow the licensee to recover from the disaster. (d) The Department may require that certain conditions be followed in order for a licensee to receive temporary relief from specific licensing requirements. (e) A licensee shall not be subject to an enforcement action for a violation of a licensing requirement in which the licensee has received temporary relief. (f) For the purposes of this section, “disaster” means condition of extreme peril to the safety of persons and property within the state or a county, city and county, or city caused by such conditions as air pollution, fire, flood, storm, tidal wave, epidemic, riot, drought, terrorism, sudden and severe energy shortage, plant or animal infestation or Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 66 of 216 disease, Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or similar public calamity, other than conditions resulting from a labor controversy, for which the Governor has proclaimed a state of emergency in accordance with Government Code sections 8558 and 8625, or for which a local governing body has proclaimed a local emergency in accordance with Government Code sections 8558 and 8630.
(g) A licensed premises that has been vacated by a licensee due to a disaster shall not be deemed to have been abandoned.
(h) Notwithstanding subsection (a), if a licensee needs to move cannabis or cannabis products stored on the licensed premises to another location immediately to prevent loss, theft, or degradation of the cannabis or cannabis products from the disaster, the licensee may move the cannabis or cannabis products without obtaining prior approval from the Department if the following conditions are met:
(1) The cannabis or cannabis products are moved to a secure location where access to the cannabis or cannabis products can be restricted to the licensee, its employees, and contractors;
(2) The licensee notifies the Department in writing that the cannabis or cannabis products have been moved and that the licensee is requesting relief from complying with specific licensing requirements pursuant to subsection (a) within 24 hours of moving the cannabis or cannabis products;
(3) The licensee agrees to grant the Department access to the location where the cannabis or cannabis products have been moved for inspection; and (4) The licensee submits a request for temporary relief as described in subsection (i) in writing to the Department within 14 calendar days of moving the cannabis or cannabis products.
(i) Requests for temporary disaster relief shall include the following:
(1) Name of the licensed commercial cannabis business requesting relief. (2) License number issued by the Department.
(3) Premises address.
(4) Contact information for the owner submitting the request, including name, phone number, and email address.
(5) Date of request.
(6) Specific statutes and regulations from which relief is requested. (7) Time period for which the relief is requested.
(8) Reason(s) for the request, including a clear explanation of how the relief requested is tied to the specific circumstances of the declared disaster.

Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 67 of 216 Article 4. Posting and Advertising
§15039. License Posting Requirement.
(a) Upon issuance of any license, the licensee shall prominently display the license on the licensed premises where it can be viewed by state and local agencies. If the licensed premises is open to the public, the license shall be displayed in an area that is within plain sight of the public.
(b) Upon issuance of any license, a retailer, whose licensed premises is open to the public, shall prominently display the Quick Response Code (QR Code) Certificate issued by the Department so that it can be viewed and scanned from outside of the licensed premises.
(c) The QR Code Certificate displayed by a licensee, as required by subsection (b), shall be posted in the front window of the licensed premises within three (3) feet of any public entrance to the licensed premises, or in a locked display case mounted on the outside wall of the licensed premises within three (3) feet of any public entrance to the licensed premises. The QR Code Certificate shall be posted in a manner that is clearly visible from outside of the licensed premises to the public and all persons entering the premises. (d) The QR Code Certificate displayed by the licensee as required by subsection (b) shall comply with the following requirements:
(1) The QR Code Certificate shall be printed on paper, glass, metal, or other material not less than 8 ½ inches by 11 inches.
(2) The QR Code on the Certificate posted, as required by this section, shall not be less than 3.75 inches by 3.75 inches.
(3) The QR Code on the Certificate shall be of sufficient clarity that the code can be read by a smartphone or device capable of reading QR Codes from a distance of at least three (3) feet.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26053, Business and Professions Code.
§15040. Advertising Placement.
(a) Any advertising or marketing, as defined in Business and Professions Code section 26150, that is placed in broadcast, cable, radio, print, and digital communications:
(1) Shall only be displayed after a licensee has obtained reliable up-to-date audience composition data demonstrating that at least 71.6 percent of the audience viewing the advertising or marketing is reasonably expected to be 21 years of age or older; (2) Shall not use any depictions or images of minors or anyone under 21 years of age; (3) Shall not use any images that are attractive to children, including, but not limited to:
(A) Cartoons;
(B) Any likeness to images, characters, or phrases that are popularly used to advertise to children;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 68 of 216 (C) Any imitation of candy packaging or labeling; or
(D) The terms “candy” or “candies” or variants in spelling such as “kandy” or “kandeez.” (4) Shall not advertise free cannabis goods or cannabis accessories. This includes promotions such as:
(A) Buy one product, get one product free;
(B) Free product with any donation; and
(C) Contests, sweepstakes, or raffles.
(b) In addition to the requirements for advertising and marketing in subsection (a), all outdoor signs, including billboards, shall:
(1) Be affixed to a building or permanent structure; and (2) Comply with the provisions of the Outdoor Advertising Act, commencing with section 5200 of the Business and Professions Code, if applicable. (c) For the purposes of this section, “reliable up-to-date audience composition data” means data regarding the age and location demographics of the audience viewing a particular advertising or marketing medium. “Reliable up-to-date audience composition data” does not include data from the most recent United States decennial or special census, or the annual population estimate for California counties published by the Demographic Research Unit, State Department of Finance. (d) Immediately upon request, a licensee shall provide to the Department audience composition data as required in subsection (a) for advertising or marketing placed by the licensee.
(e) If the Department determines that audience composition data for advertising or marketing provided by a licensee does not comply with the requirements of subsection (a) of this section, or the licensee fails to provide audience composition data to the Department upon request, the licensee shall remove the advertising or marketing placement in question.
(f) In construing and enforcing the advertising provisions of the Act and this division, any action, omission, or failure of an advertising agent, representative, or contractor retained by the licensee shall in every case be deemed the act, omission, or failure of the licensee.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26151 and 26152, Business and Professions Code.
§15040.1. Marketing Cannabis Goods as Alcoholic Products.

Distributor and retailer licensees shall not sell or transport cannabis goods that are labeled as beer, wine, liquor, spirits, or any other term that may create a misleading impression that the product is an alcoholic beverage as defined in division 9 of the Business and Professions Code.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26054, 26151 and 26152, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 69 of 216 §15041. Age Confirmation in Advertising.
(a) Prior to any advertising or marketing from the licensee involving direct, individualized communication or dialogue, the licensee shall use age affirmation to verify that the recipient is 21 years of age or older.
(b) For the purposes of this section, direct, individualized communication or dialogue may occur through any form of communication, including in-person, telephone, physical mail, or electronic.
(c) A method of age verification is not necessary for a communication if the licensee can verify that the licensee has previously had the intended recipient undergo a method of age affirmation and the licensee is reasonably certain that the communication will only be received by the intended recipient.
(d) A licensee shall use a method of age affirmation before having a potential customer added to a mailing list, subscribe, or otherwise consent to receiving direct, individualized communication or dialogue controlled by a licensee.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26151 and 26152, Business and Professions Code.
§15041.1. Branded Merchandise.
(a) “Branded merchandise” means non-consumable consumer goods utilized by a licensee for advertising and marketing purposes. Examples of branded merchandise include clothing, bags, pens, keychains, mugs, water bottles, lanyards, stickers, pins, and posters. “Branded merchandise” does not include items containing cannabis or any items that are considered food as defined by Health and Safety Code section 109935. (b) After December 31, 2021, branded merchandise shall identify the licensee responsible for its content by displaying the licensee’s license number in a manner that is permanently affixed to the merchandise, legible, and clearly visible from the outside of the merchandise.
(c) Branded merchandise shall not be designed in any manner that is attractive to children as specified in section 15040(a)(3).

Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26152, Business and Professions Code.
§15041.2. Trade Samples.
(a) For the purposes of this division, “trade sample” means a limited amount of cannabis goods that has been designated by a licensee to be provided to other licensees for the purposes of targeted advertising.
(b) Cannabis goods that have been designated as trade samples may be provided from one licensee to another licensee for the purpose of providing the recipient licensee with product information to aid in making purchasing decisions about new or existing cannabis goods.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 70 of 216 (c) Live plants and seeds cannot be designated or provided to licensees as trade samples.

Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:

Section 26153.1 Business and Professions Code.
§15041.3. Designating Trade Samples.
(a) Licensees shall designate cannabis goods as trade samples through the track and trace system.
(b) At the time of designation as a trade sample, cannabis goods must be in the possession of the licensee making the designation.
(c) Once cannabis goods have been designated as a trade sample, the designation cannot be changed.
(d) After laboratory testing, cannabis goods that have been designated as trade samples may be transferred to licensees in accordance with section 15041.4.

Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:

Section 26153.1 Business and Professions Code.
§15041.4. Providing Trade Samples.
(a) Cannabis goods that have been designated as trade samples may be provided to any licensee except licensed cannabis event organizers, distributor transport only licensees, and testing laboratory licensees.
(b) The following licensees may designate and provide trade samples to other licensees:
(1) Cultivators;
(2) Manufacturers;
(3) Distributors; and
(4) Microbusinesses authorized to engage in cultivation, manufacturing, or distribution. (c) The following licenses shall not designate or provide trade samples to other licensees:
(1) Retailers;
(2) Cannabis event organizers;
(3) Distributor transport only licensees; and
(4) Testing laboratories.
(d) Cannabis goods designated as trade samples may not be provided:
(1) For any payment or consideration;
(2) Without adhering to sales and excise tax requirements, if any; (3) To employees as compensation;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 71 of 216 (4) To an unlicensed person, including retail customers; or (5) For a cost.
(e) The transfer from one licensee to another of cannabis goods designated as a trade sample must be recorded in the track and trace system.
(f) A licensee may provide cannabis goods that have been received from another licensee as a trade sample to an employee for that employee’s inspection or consumption.
(g) Cannabis goods provided to employees as trade samples must be properly recorded in the track and trace system. The transaction shall be recorded as a package adjustment when provided to the employee. The adjustment note must include the name or licensee-assigned employee number of the employee and the date and time the cannabis goods were provided to the employee.
(h) Cannabis goods provided to employees as trade samples shall not be sold, given away, or otherwise transferred by the employee to any person.

Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:

Section 26153.1 Business and Professions Code.
§15041.5. Requirements for Trade Samples.
(a) In addition to the requirements of section 15041.3(d), cannabis goods provided to another licensee as a trade sample must be packaged and labeled in accordance with the packaging and labeling requirements found in the Act and this division for cannabis goods sold at retail.
(b) Cannabis goods provided to another licensee as a trade sample must comply with all laboratory testing requirements applicable to cannabis goods sold at retail. (c) Cannabis goods must be labeled with the following: “TRADE SAMPLE. NOT FOR RESALE OR DONATION.”
(d) After laboratory testing, cannabis goods designated as trade samples must remain in the packaging until provided to a licensee’s employee for inspection or consumption and must not be opened, resealed, or repackaged in any way. (e) Transportation of cannabis goods designated as trade samples must be conducted in accordance with the transportation requirements in the Act and this division. Any licensee authorized to engage in distribution activities may transport trade samples. (f) Notwithstanding subsection (e), an employee of a licensee authorized to engage in transportation may transport cannabis goods designated as trade samples in a vehicle that is not registered to the licensee and shall not be required to comply with the requirements of section 15311(g). Employees transporting cannabis goods under this subsection shall not transport an amount of cannabis goods that exceeds the possession limits established in section 11357 of the Health and Safety Code.

Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:

Section 26153.1 Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 72 of 216 §15041.6. Consumption of Trade Samples.
(a) All consumption of cannabis goods provided as a trade sample must comply with all laws regarding the consumption of cannabis goods.
(b) Cannabis goods provided to employees as trade samples shall not be consumed by employees who are engaging in the transportation of cannabis goods, delivery of cannabis goods, or any activity that requires the operation of a motor vehicle. (c) Cannabis trade samples provided to licensee employees that are not consumed by the employee must be destroyed in accordance with the requirements of the Act and this division.

Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:

Section 26153.1 Business and Professions Code.
§15041.7. Trade Sample Limits.
(a) A licensee is limited to designating the following aggregate amounts of cannabis goods as trade samples in a calendar month period:
(1) For cannabis in the form of dried flower, a total of two pounds; and (2) For manufactured and nonmanufactured cannabis products, a total of 900 individual units.
(b) Licensees authorized to provide trade samples may provide trade samples to multiple recipient licensees.
(c) A licensee is limited to providing the following aggregate amounts of cannabis goods as trade samples to each recipient licensee in a calendar month period:
(1) For cannabis in the form of dried flower, five (5) grams per strain and no more than six (6) strains to each recipient licensee; and
(2) For manufactured and nonmanufactured cannabis products, five (5) individual units, as packaged for retail sale, per cannabis product line and no more than six (6) individual cannabis product lines to each recipient licensee.
(d) The limits provided in subsection (c) apply to the transfer of cannabis trade samples from one licensee to each recipient licensee and do not limit the total amount of cannabis trade samples that a licensed distributor may transport.

Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:

Section 26153.1 Business and Professions Code.

Article 5. Security Measures
§15042. Premises Access Requirements.
(a) For a premises that is not open to the public, the licensee shall establish and implement an identification and sign-in/sign-out procedure for all persons accessing the premises, including authorized individuals, suppliers, and visitors. (b) Licensees shall ensure that only employees of the licensee and other authorized Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 73 of 216 individuals access the limited-access areas of the licensed premises. (c) For the purpose of this section, authorized individuals include outside vendors, contractors, or other individuals conducting business that requires access to the limited-access areas.
(d) An individual who enters the limited-access area and is not employed by the licensee shall be escorted by an employee of the licensee at all times while within the limited-access area.
(e) A licensee shall maintain a record of all authorized individuals who are not employees of the licensee who enter the limited-access areas. The record shall include the name of the individual, the company the individual works for, the reason the individual entered the limited-access area, the date, and the times the individual entered and exited the limited-access area. These records shall be made available to the Department immediately upon request.
(f) A licensee shall not receive consideration or compensation for permitting an individual to enter the limited-access areas.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26160, Business and Professions Code.
§15042.1. Security Plan for Licensed Manufacturers.

A licensed manufacturer shall develop and implement a written security plan. At a minimum, the security plan shall include a description of the security measures to:
(a) Prevent access to the manufacturing premises by unauthorized persons and protect the physical safety of employees. This includes, but is not limited to:
(1) Establishing physical barriers to secure perimeter access and all points of entry into a manufacturing premises (such as locking primary entrances with commercial-grade, nonresidential door locks, providing fencing around the grounds and driveway, and securing any secondary entrances including windows, roofs, and ventilation systems); (2) Installing a security alarm system to notify and record incident(s) where physical barriers have been breached;
(3) Establishing an identification and sign-in/sign-out procedure for authorized personnel, individuals, suppliers, and visitors;
(4) Maintaining the premises such that visibility and security monitoring of the premises is possible; and
(5) Establishing procedures for the investigation of suspicious activities. (b) Deterring theft or loss of cannabis and cannabis products. This includes, but is not limited to:
(1) Establishing an inventory system to track cannabis and cannabis products and the personnel responsible for processing it throughout the manufacturing process; (2) Limiting access of personnel within the premises to those areas necessary to Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 74 of 216 complete job duties, and to those timeframes specifically scheduled for completion of job duties, including access by outside vendors, suppliers, contractors or other individuals conducting business with the licensee that requires access to the premises; (3) Supervising tasks or processes with high potential for diversion, including the loading and unloading of cannabis and cannabis products from transportation vehicles; and (4) Providing areas in which personnel may store and access personal items that are separate from the manufacturing areas.
(c) Securing and backing up electronic records in a manner that prevents unauthorized access and ensures that the integrity of the records is maintained.

Authority: Sections 26013 and 26130, Business and Professions Code. Reference:

Sections 26011.5 and 26051.5, Business and Professions Code. §15043. Licensee Employee Badge Requirement.

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

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15044. Video Surveillance System.
(a) Each licensed premises shall have a digital video surveillance system with a minimum camera resolution of 1280 × 720 pixels on the licensed premises. This requirement does not apply to a licensed premises authorized exclusively for cultivation activities or the cultivation area of a licensed microbusiness premises.
(b)The video surveillance system shall at all times be able to effectively and clearly record images of the area under surveillance.
(c) Each camera shall be permanently mounted and in a fixed location. Each camera shall be placed in a location that allows the camera to clearly record activity occurring within 20 feet of all points of entry and exit on the licensed premises, and allows for the clear and certain identification of any person and activities in all areas required to be filmed under subsection (d) of this section.
(d) Areas that shall be recorded on the video surveillance system include the following:
(1) Areas where cannabis or cannabis products are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the licensed premises; (2) Limited-access areas;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 75 of 216 (3) Security rooms;
(4) Areas storing a surveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; and (5) Entrances and exits to the licensed premises, which shall be recorded from both indoor and outdoor vantage points.
(e) Licensed retailers and licensed microbusinesses authorized to engage in retail sales shall also record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.
(f) Cameras shall record continuously 24 hours per day and at a minimum of 15 frames per second (FPS).
(g) The physical media or storage device on which surveillance recordings are stored shall be secured in a manner to protect the recording from tampering or theft. (h) Surveillance recordings shall be kept for a minimum of 90 calendar days. (i) Surveillance recordings are subject to inspection by the Department and shall be kept in a manner that allows the Department to view and obtain copies of the recordings at the licensed premises immediately upon request. The licensee shall also send or otherwise provide copies of the recordings to the Department upon request within the time specified by the Department.
(j) Recorded images shall clearly and accurately display the time and date. Time is to be measured in accordance with the standards issued by the United States National Institute of Standards and Technology. The displayed date and time shall not significantly obstruct the view of recorded images.
(k) The video surveillance system shall be equipped with a failure notification system that provides notification to the licensee of any interruption or failure of the video surveillance system or video surveillance-system storage device.
(l) If multiple licensed premises are contained within the same building, a single video surveillance system covering the entire building may be used by all of the licensees under the following conditions:
(1) All licensees shall have immediate access to the surveillance recordings to produce them pursuant to subsection (i).
(2) All licensees shall be held responsible and subject to discipline for any violations of the video surveillance requirements.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 76 of 216 (m) Notwithstanding subsection (a), a licensed distributor transport only licensee engaged in self-distribution whose premises is on the same parcel of land as their licensed cultivation premises shall not be required to comply with the provisions of this section.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15045. Security Personnel.
(a) A licensed retailer or licensed microbusiness authorized to engage in retail sales shall hire or contract for security personnel who are at least 21 years of age to provide onsite security services for the licensed retail premises during the hours of operation. All security personnel hired or contracted for by the licensee shall be licensed by the Bureau of Security and Investigative Services and shall comply with chapters 11.4 and 11.5 of division 3 of the Business and Professions Code.
(b) Notwithstanding subsection (a), a licensed non-storefront retailer or licensed microbusiness who is not engaged in storefront retail sale is not required to hire or contract for security personnel.
(c) If multiple licensed premises are contained within the same building, security personnel may be shared by all of the licensees to cover the entire building. However, all licensees shall be held responsible and subject to discipline for any violations of the security personnel requirements.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15046. Locks.

A licensee shall ensure that all limited-access areas can be securely locked using commercial-grade, nonresidential door locks. A licensee shall also use commercialgrade, nonresidential door locks on all points of entry and exit to the licensed premises.

This requirement does not apply to a licensed premises authorized exclusively for cultivation activities or the cultivation area of a licensed microbusiness premises.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15047. Alarm System.
(a) A licensee shall maintain an alarm system as defined in Business and Professions Code section 7590.1(c) at the licensed premises. This requirement does not apply to a licensed premises authorized exclusively for cultivation activities or the cultivation area of a licensed microbusiness premises.
(b) A licensee shall ensure a licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 77 of 216 (c) Upon request, a licensee shall make available to the Department all information related to the alarm system, monitoring, and alarm activity. (d) If multiple licensed premises are contained within the same building, a single alarm system covering the entire building may be used by all of the licensees under the following conditions:
(1) All licensees shall have access to and be able to provide the information under subsection (c).
(2) All licensees shall be held responsible and subject to discipline for any violations of the alarm system requirements.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.

Article 6. Track and Trace Requirements
§15047.1. Definitions.
(a) “Plant tag” means the RFID-enabled tag that is labeled with a UID number and provided by the Department or the Department’s designee for attaching to a cannabis plant.
(b) “Package tag” means the RFID-enabled tag that is labeled with a UID number and provided by the Department or the Department’s designee for attaching to batches of cannabis or cannabis products.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070, 26160 and 26161, Business and Professions Code.
§15047.2. General Requirements.
(a) A licensee shall create and maintain an account within the track and trace system prior to engaging in any commercial cannabis activity.
(b) All commercial cannabis activity shall be accurately recorded in the track and trace system.
(c) A licensee is responsible for the accuracy and completeness of all data and information entered into the track and trace system. The licensee is responsible for all actions taken by the designated account manager or other account users while performing track and trace activities.
(d) A person shall not intentionally misrepresent or falsify information entered into the track and trace system.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070, 26160, and 26161, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 78 of 216 §15048. Training and Credentialing.
(a) Each applicant or licensee shall identify an owner of the commercial cannabis business as the track and trace system account manager. A licensee may change the account manager by submitting a written request to the Department. (b) No later than 10 calendar days after license issuance, the designated account manager shall:
(1) Complete new user system training provided by the Department. (2) Email [email protected] from the designated account manager’s email address to request access to the track and trace system.
(3) Complete the credentialing process to establish a login. (c) The account manager and each user shall utilize a unique login, consisting of a username and password. The account manager and each user shall only access the track and trace system under their assigned login. No account manager or user shall share their login, username, or password, with any other individual for any reason.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070, 26160 and 26161, Business and Professions Code.
§15048.1. Responsibilities of the Designated Account Manager. (a) A licensee and their designated account manager(s) shall:
(1) Designate track and trace system users, as needed, and require the system users to be trained in the proper and lawful use of the track and trace system before the users are permitted to access the track and trace system;
(2) Maintain an accurate and complete list of all of the licensee’s track and trace system users, including full names and usernames, and update the list immediately when changes occur;
(3) Remove a user from the licensee’s track and trace system account when that individual is no longer authorized to represent the licensee; (4) Correct any data entry errors within three (3) calendar days of discovery of the error; (5) Tag and enter all inventory in the track and trace system as required by section 15049;
(6) Monitor all system notifications and resolve all issues identified. The notification shall not be dismissed by an account manager before resolution of the issue(s) identified in the notification;
(7) Notify the Department of any loss of access to the track and trace system that exceeds 72 hours; and
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 79 of 216 (8) Reconcile the inventory of cannabis and cannabis products on the licensed premises with the track and trace system database at least once every thirty (30) calendar days.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070 and 26160, Business and Professions Code.
§15048.2. General Tag Requirements.
(a) A licensee shall only use plant and package tags provided and distributed by the Department or the Department’s designee.
(b) A licensee shall only use plant and package tags assigned in the track and trace system to that licensee and shall not transfer unused tags to any other licensee. (c) A licensee shall maintain a sufficient supply of tags to support tagging in accordance with this chapter.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26050.1, 26067, 26070, 26160 and 26161, Business and Professions Code. §15048.3. Ordering Tags.
(a) For licensees conducting cultivation, manufacturing, distribution, or testing:
(1) A licensee’s account manager shall place the initial order of plant or package tags within ten (10) calendar days of initial credentialing into the track and trace system and shall reorder plant or package tags as needed.
(2) The receipt of plant or package tags shall be recorded in the track and trace system within three (3) calendar days of receipt. If ordered plant or package tags are not received by the licensee, the licensee shall notify the Department. (3) For cultivation licensees, if the Department approves a request for a license designation change pursuant to section 15020(e), the licensee is required to order, apply, and report applicable plant and package tags in accordance with this article.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26067, 26069 and 26160, Business and Professions Code.
§15048.4. Tagging of Cannabis Plants.
(a) Immature cannabis plants shall be tagged as follows:
(1) Each established lot of immature plants shall be assigned a plant tag. Each lot of immature plants under a single plant tag shall be uniform in strain or cultivar and contain no more than 100 individual immature plants at any one time. The lot plant tag shall be visible and within clear view of an individual standing next to the immature lot and kept free from dirt and debris. Each lot shall either:
(A) Have each immature plant in the lot labeled with the UID number and placed contiguous to one another to facilitate identification by the Department; or Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 80 of 216 (B) Be fully separated from other lots of immature or mature plants by a physical barrier.

In such cases, each individual plant does not need to be labeled with the corresponding UID number.
(2) Immature plants transferred from a licensed nursery for retail sale shall each be labeled with the UID number that corresponds to the UID number of the immature lot.

The receiving licensee shall remove the licensed nursery’s package tag and assign a plant or package tag, as applicable, belonging to the receiving licensee within three (3) calendar days of receiving the immature plants.
(3) A plant tag shall be applied to each individual plant in accordance with subsection (b) at the time the plant is moved to the designated canopy area or begins flowering. (b) Mature cannabis plants shall be tagged as follows:
(1) Each mature plant shall be tagged with a plant tag. A plant tag shall be attached to the main stem at the base of each plant, placed in a position so it is visible and within clear view of an individual standing next to the mature plant, and kept free from dirt and debris.
(2) Licensees are prohibited from removing the plant tag from the mature plant to which it was attached and assigned until the plant is harvested, destroyed, or disposed of.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26067 and 26069, Business and Professions Code.
§15048.5. Use of Harvest Batch Name and Package Tags.
(a) Harvested plants that are hanging, drying, or curing shall be assigned a unique harvest batch name, which shall be recorded in the track and trace system and placed within clear view of an individual standing next to the batch. The assigned harvest batch name shall match what is in the track and trace system and the harvest batch name next to the batch shall be the same.
(b) Each harvest batch and manufactured cannabis batch shall be assigned a package tag and recorded in the track and trace system. For batches held in containers, the package tag shall be affixed to the container holding the batch. If a batch of cannabis or cannabis products is held in multiple containers, the package tag shall be affixed to one of the containers and the other containers shall be labeled with the applicable UID number. Each unit within the container shall be labeled with the applicable UID number.

All containers with the same UID number shall be placed contiguous to one another to facilitate identification by the Department.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070, 26160 and 26161, Business and Professions Code.
§15049. Track and Trace Reporting.
(a) All cannabis and cannabis products on the licensed premises shall be assigned a plant or package tag, except for harvested plants that are being dried, cured, graded, or trimmed, as specified in this division, and recorded in the track and trace system.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 81 of 216 (b) Each of the following activities shall be recorded in the track and trace system within 24 hours of occurrence:
(1) Receipt of cannabis or cannabis products.
(2) Rejection of transferred cannabis or cannabis products. (3) Manufacturing of cannabis or cannabis products.
(4) Use of cannabis or cannabis product for internal quality control testing or product research and development.
(5) Destruction or disposal of cannabis or cannabis products. (6) Packaging or repackaging of cannabisor cannabis products, except that cultivation licensees shall comply with section 15049.1(b)(5).
(7) Laboratory testing, including testing results.
(8) Sale or donation of cannabis or cannabis products.
(c) The following information shall be recorded in the track and trace system for each activity entered pursuant to subsection (b):
(1) The type of cannabis or cannabis products.
(2) The weight, volume, or count of the cannabis or cannabis products. (3) The date of activity.
(4) The UID assigned to the cannabis or cannabis products. (5) If cannabis or cannabis products are being destroyed or disposed of, the licensee shall record the following information in the notes section:
(A) The name of the employee performing the destruction or disposal; (B) The reason for destruction or disposal; and
(C) The method of disposal.
(d) If a package adjustment is used to adjust the quantity of cannabis or cannabis products in the track and trace system, the licensee shall include a description explaining the reason for adjustment.
(e) If a licensee rejects a partial shipment of cannabis goods pursuant to section 15052.1(b), the licensee shall record the partial rejection in the track and trace system.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26067 and 26169, Business and Professions Code.
§15049.1. Additional Requirements for Recording Cultivation Activities. (a) The licensee shall record the following cultivation activities in the track and trace system within three (3) calendar days of occurrence:
(1) Planting of an immature lot;
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 82 of 216 (2) Moving immature plants to a designated canopy area, flowering of an individual plant, or application of a plant tag to an immature plant, in accordance with section 15048.4; (3) Destruction or disposal of an immature or mature plant; and (4) Harvesting of a mature plant, or portion thereof.
(b) The following information shall be reported in the track and trace system for each harvested plant or portion thereof, or harvest batch:
(1) The wet weight of each harvested plant or portion thereof, which shall be obtained by the licensee immediately after harvest;
(2) The weight of cannabis waste associated with each harvest batch; (3) The unique name of the harvest batch;
(4) The initiating date of the harvest. For purposes of this section, the initiating date of the harvest is the month, day, and year the first mature cannabis plants in the harvest batch were cut, picked, or removed from the soil or other growing media; and (5) Packaging and repackaging of cannabis or nonmanufactured cannabis. (c) After the entire harvest batch has been dried, trimmed, cured, and packaged, the licensee shall indicate in the track and trace system that the harvest is finished.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26067 and 26069, Business and Professions Code.
§15049.2. Recording Transfers of Cannabis and Cannabis Products. (a) A licensee shall prepare a shipping manifest through the track and trace system prior to transferring cannabis and cannabis products off of a licensed premises. The following information shall be recorded on the shipping manifest by the licensee initiating the transfer:
(1) The name, license number, and premises address of the originating licensee; (2) The name and license number of the distributor transporting the cannabis and cannabis products;
(3) The name, license number, and premises address of the licensee receiving the cannabis or cannabis products into inventory or storage; (4) The UID numbers for all items being transferred;
(5) The item name, item category and weight or count of cannabis or cannabis products associated with each package tag;
(6) The estimated date and time of departure from the licensed premises; (7) The estimated date and time of arrival at each licensed premises; and (8) The driver’s license number of the personnel transporting the cannabis and cannabis products, and the make, model, and license plate number of the vehicle used for transport.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 83 of 216 (b) The distributor who transports the cannabis or cannabis product shall record the following additional information on the shipping manifest:
(1) The actual date and time of departure from the licensed premises; and (2) The actual date and time of arrival at each licensed premises. (c) Upon pick-up or receipt of cannabis and cannabis products for transport, storage, or inventory, a licensee shall ensure that the cannabis or cannabis products received are as described in the shipping manifest. The licensee shall record acceptance or receipt, and acknowledgment of the cannabis or cannabis products in the track and trace system. (d) If there are any discrepancies between type or quantity of cannabis or cannabis products specified in the shipping manifest and the type or quantity received by the licensee, the licensee shall reject the shipment.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070, 26160 and 26161, Business and Professions Code.
§15050. Loss of Access.
(a) If at any point a licensee loses access to the track and trace system for any reason, the licensee shall prepare and maintain comprehensive records detailing all commercial cannabis activities that were conducted during the loss of access. (b) The licensee shall not initiate transport for, receive, or deliver any cannabis or cannabis products until such time as access is restored. (c) Once access has been restored, the licensee shall:
(1) Within three calendar days, enter all commercial cannabis activity that occurred during the loss of access into the track and trace system. (2) Document the cause for loss of access, and the dates and times for when access to the track and trace system was lost and when it was restored.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070 and 26160, Business and Professions Code.
§15051. Track and Trace System Reconciliation.
(a) The license shall review the information recorded in the track and trace system at least once every 30 calendar days to ensure its accuracy, including, at a minimum:
(1) Reconciling on-hand inventory of cannabis and cannabis product with the records in the track and trace system; and
(2) Reviewing the licensee’s authorized users and removing any users who are no longer authorized to enter information into the track and trace system.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 84 of 216 (b) If a licensee finds a discrepancy between the on-hand inventory and the track and trace system, the licensee shall conduct an audit.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070 and 26160, Business and Professions Code.

Article 7. Acceptance or Rejection of Shipments
§15052.1. Acceptance or Rejection of Shipments.
(a) Licensees shall accept or reject, in whole, shipments of cannabis or cannabis products.
(b) Notwithstanding subsection (a), partial shipments of cannabis or cannabis products shall be rejected in the following circumstances:
(1) If a licensee receives a shipment containing cannabis or cannabis products that differ from those listed on the sales invoice or receipt, the licensee shall reject the portion of the shipment that is not accurately reflected on the sales invoice or receipt. (2) If a licensee receives a shipment containing any cannabis or cannabis products that were damaged during transportation, the licensee shall reject that portion of the shipment that was damaged.
(3) If a licensee receives a shipment containing cannabis or cannabis products that is non-compliant with labeling requirements or exceeds its provided expiration date, the licensee shall reject the portion of the shipment that is non-compliant with labeling requirements or expired.
(c) The licensee rejecting a shipment of cannabis or cannabis products, whether in whole or in part, shall record in the track and trace system and indicate on any relevant manifest, invoice, or sales receipt the specific reason for rejection.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26067, 26070 and 26161, Business and Professions Code.

Chapter 2. Distributors
§15300. Distribution Activities.

A licensed distributor shall distribute only cannabis and cannabis products, cannabis accessories, and licensees’ branded merchandise or promotional materials.

Authority: Sections 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15301. Storage Services.
(a) A licensed distributor may provide storage services, including storage-only services that are unrelated to the quality assurance and laboratory testing processes, to a licensed cultivator, licensed manufacturer, licensed microbusiness, licensed retailer, or another licensed distributor.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 85 of 216 (b) A licensed distributor may provide storage services to other licensees for cannabis goods packaged as they will be sold at retail, cannabis accessories, and licensees’ branded merchandise or promotional materials only.
(c) A licensed distributor shall ensure that each batch of cannabis goods that are stored for another licensee are stored in accordance with section 15302 of this division. (d) Notwithstanding subsection (b) of this section, a licensed distributor shall not store live plants, except for seeds, on the licensed premises.

Fort Bragg City CouncilMarch 28, 2022

Fort Bragg City Council
March 28, 2022