Att 4 - Initial Study - Negative Declaration — Fort Bragg City Council, May 23, 2022 (part 1 of 2)

CITY OF FORT BRAGG
Incorporated August 5, 1889
Initial Study/Negative Declaration
An Ordinance Amending Title 18 of the Inland Land Use and Development Code Regulating Cannabis Cultivation and Retail Business (Sections 18.22.030, 18.24.030,

18.42.055, 18.42.057, 18.42.059 and 18.100.020)
April 20, 2022
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 2 Project title: Various amendments to Title 18 Inland Land Use Development Code of the City of Fort Bragg Municipal 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) Zoning Districts and Inland Central Business District, General Commercial, and Highway Commercial Zoning Districts.

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? Yes
This document was prepared for the City of Fort Bragg by Marie Jones, Marie Jones Consulting.

Negative Declaration & Initial Study for Amendments to the ILUDC 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 ILUDC to Regulate Cannabis Businesses P a g e | 4 PROJECT DESCRIPTION:

The existing regulations for cannabis businesses are established by Municipal Code Chapter 9.30 Cannabis Businesses and by the Inland Land Use and Development Code (ILUDC). The proposed project establishes new land use standards for commercial cannabis cultivation (cannabis cultivation) in industrial zoning districts and makes modifications to existing regulations for commercial cannabis activity in three commercial zoning districts. These proposed changes only apply to the Inland Land Use and Development Code which regulates the inland area of Fort Bragg (see Figure 1).

The proposed project will amend the Inland Land Use and Development Code (ILUDC) to establish new land use regulations for commercial cannabis cultivation in Industrial Light and Heavy Zoning Districts and cannabis accessory uses in Industrial zoning districts and three commercial zoning districts. The description below provides a brief summary of proposed amendments, see Attachment A for the detailed proposed amendments in ordinance form.

In analyzing the Ordinance, it is important to note that while multiple uses are listed, some of these uses are already allowed by the Development Code and need not be analyzed under CEQA. This Negative Declaration only examines the impacts created by new uses.

Specifically, the Ordinance provides for the following changes in uses:
 Allows accessory cannabis uses with a MUP in the CBD, CG, and CH zones in conjunction with retail cannabis sales which are already permitted. Accessory cannabis uses are defined as: office, retail delivery, on-site distribution, craft cannabis manufacturing, and nursery cultivation. Accessory office uses and retail cannabis delivery as an accessory use is already allowed in these zones and do not need to be analyzed in this document. On-site distribution relates to the activities that are already being permitted on-site and therefore in and of itself does not create any additional environmental impacts. Therefore, the only new uses in these zones which will need to be analyzed include the accessory uses of craft cannabis manufacturing and nursery cultivation.
 Allows indoor cultivation of cannabis with a MUP in the IL and IH zones. This is a new use and will be analyzed in the ND.
 Allows retail and retail delivery as an accessory use to a cannabis business engaged in manufacturing, cultivation and/or distribution with a MUP in the IL and IH zones. Retail delivery is already an allowed use in these zones. Therefore, the only new use to be analyzed is retail sales as an accessory use to cannabis business.

The Ordinance also creates additional rules relating to permits, licenses and operational requirements as well as makes changes to certain definitions. These changes do not create any environmental impacts, but in some cases, the requirements become selfmitigating as discussed in the applicable sections below.

Cannabis activities regulated by the proposed ordinance will be subject to either a minor use permit (MUP) or a use permit (UP).

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 5  A Use Permit is required if the project is appealed to the Planning Commission  A Use Permit is required if the project is not exempt from CEQA.  A Minor Use Permit is a discretionary permit and is therefore subject to a CEQA determination. As such any Project that has the potential to have a significant impact on the environment would be upgraded to a Use Permit and require CEQA review. See section 15300.2 Exceptions of the California Environmental Quality Act.

Regardless of the type of permit that is needed, the permit may only be approved if the findings set forth in Section 18.71.060 can be made. One of the required findings is that the proposed use is consistent with the General Plan (FBMC § 18.71.060F.1). Another finding is that the type, density, and intensity of use being proposed would not endanger, jeopardize, or otherwise constitute a hazard to the public interest, health, safety, convenience, or welfare, or be materially injurious to the improvements, persons, property, or uses in the vicinity. .(FBMC § 18.71.060F.4).

The following processes are regularly undertaken to review a project for permit consideration, and many of these processes will help to protect the environment.

1. In order to determine consistency with the General Plan, staff looks at the goals and policies set forth in the various elements. The applicable goals and policies are discussed within the relevant topic matters below.

2. After an application is complete, the City sends the application to City Departments as well as state and local agencies for comment. All cannabis related applications go to the Public Works Department, Police Department, Fire Marshall, and County Planning and Building.

3. Projects involving new development are additionally sent to Mendocino Air Quality Management District, Department of Fish and Wildlife, and the North Coast Regional Water Quality Control Board, and as appropriate, projects are also sent to Mendocino County Environmental Health, CalTrans, the State Historic Preservation Office, local tribes, and others. The City makes a final determination as to what type of CEQA review would be required, or if a project would qualify for an exemption, after all responses are provided and reviewed.

4. All cannabis licensees are further required to provide a copy of the City’s CEQA document (or reference to where it may be located) to the Department of Cannabis Control (DCC). DCC then evaluates the project as a Responsible Agency under CEQA. When the City prepares a Notice of Exemption for a categorical exemption, DCC then acts as the lead agency and conducts an independent verification as to whether the exemption is appropriate for DCC’s purposes.

The proposed changes to the ILUDC §18.22.030 Commercial Districts include the following changes to Table 2-6 Allowable Land Uses and Permit Requirements for Commercial Zoning Districts:
 Cannabis Retail which requires a minor use permit has been modified to “Cannabis Retail & Accessory Cannabis Uses” and will continue to require a Minor Use Permit in the Central Business District, General Commercial, and Highway Commercial zoning districts.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 6  Footnote (3) has been added to Table 2-6 Cannabis Retail in the Central Business District to limit the total number of cannabis retail businesses to a maximum of three and will be set by City Council resolution.

The proposed changes to the ILUDC §18.24.030 include the following changes to Table 2-10 Allowable Land Uses and Permit Requirements for Industrial Zoning Districts:
 Addition of Cannabis – Indoor Cannabis Cultivation with a Minor Use Permit in the Light Industrial and Heavy Industrial zoning districts.  Addition of Cannabis Retail which is only allowable as an accessory to an approved primary Cannabis use with a Minor Use Permit.

The proposed changes to the ILUDC Article 4 include:
 The addition of §18.42.055, which provides Specific Land Use Standards for Cannabis Cultivation, including: standards regarding permits and licensing, operations requirements (employee register, visitor control, utility requirements, odor control, lighting, and waste practices) and permissible accessory uses.  Revisions to §18.42.057 Cannabis Retail
o Adds applicability, Definitions and Standards headings and requirements. o Adds standards for additional permits and licensing, operation requirements (odor, hours, lighting, screening, drive through services), location requirements (prohibits a business within 150 feet of a school, childcare facility, or park), defines allowable accessory cannabis uses and sets standards for those uses. This section also requires a MUP to add or change an accessory use.
 Revisions to §18.42.059 “Cannabis Retail- Delivery Only” to include applicability, definitions, and standards headings.

The proposed changes to ILUDC §18.100.020 will add definitions for terms and activities specific to cannabis activity.

The existing code allows for cannabis retail uses and manufacturing and processing, all of which have been established in the City. The changes proposed could result in new development of commercial cannabis cultivation as a primary use in industrial zoning districts and as an accessory use in three commercial zoning districts. While it is not possible to accurately predict future development, it is possible to provide a wellreasoned estimate that the City could see the following potential development:
 2,000 square feet of accessory non-flowering accessory cultivations to current or future retail cannabis. This estimate is based on one disapproved project that proposed a ~1,000 square foot cultivation of non-flowering plant cultivation for sale on site. Given the small population and the remote location of the City of Fort Bragg, it is unlikely that it would be financially feasible for more than three dispensaries to cultivate and sell non-flowering plants for personal cultivation. Therefore, assuming a maximum of 2,000 square feet of total cultivation as an accessory use is a reasonable assumption.  10,000 square feet of primary use commercial cultivation in industrial zones – Fort Bragg is not ideally situated for large scale industrial use. Parcels with Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 7 industrial zoning are largely developed with active businesses. 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 were a cannabis cultivation could be proposed. However, these vacant parcels are all located north of Fort Bragg and are not served by City water and so have no access to water for agricultural, domestic or firefighting flows. Therefore, there are only one or two sites where cannabis cultivation is likely to occur.

Setting
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.” Fort Bragg lies on the coast of a steep, mountainous area of the northern California Coast Ranges. There is substantial oceanic influence on climate, including summer fog.

The mean annual precipitation is about 60 inches. Runoff is rapid and many of the smaller streams are dry by the end of summer (Miles and Goudey, 1997).

Located in the far west of the Noyo River Basin, the inland area is mostly north of the Noyo River and south of Pudding Creek, with a small portion extending north of Pudding Creek on the east side of Highway 1. (See Figure 1) The City is approximately 2.85 square miles, 1/4 of which is the former Georgia Pacific Mill Site in the coastal zone.

Fort Bragg sits atop the coastal bluffs and the vegetation is characterized by urban ruderal and non-native vegetation and limited areas of riparian stream habitat, and coastal/dune grasslands. The US Fish and Wildlife Service notes the potential for the 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. Critical habitat is identified within 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 small, it is the largest city on the coast between San Francisco and Eureka and is a popular tourist and recreational destination. Fort Bragg is considered an Urban Cluster by the US Census and has a population density of 2,586 people per square mile.

Most areas in the inland industrial and commercial zones within the City limits are already developed, with the exception of parcels north of Pudding Creek. There are also some vacant lots within town. Most new development is typically redevelopment of existing lots and infill on lots surrounded by urban uses. The proposed amendments to the Land Use and Development Code would apply primarily to areas that are already developed (Central Business District (CBD), Highway Commercial (CH), and General Commercial (CG) and to some areas which are primarily undeveloped in Light and Heavy Industrial (IH, IL).

Commercial land uses in the inland areas are located along the State Highway 1 and Franklin Street corridors. The Central Business District, located between Oak Street and Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 8 Pine Street, is the historic, civic and cultural core of the community. Industrial lands are located 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 area 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 Title18 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:

Zone Type
Geographic
Coverage
Commercial 16%
Industrial 28%
Residential 35%
Open Space, parks, rec 11%
Public Facilities 9%
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 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
The regulatory environment for cannabis is complex. 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 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 subsequent legalization in California, 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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 10 removed any “deprioritization” of operations legalized by states. (League of Cities, 2021)
In 2016, In California the Adult-Use Marijuana Act (AUMA) was passed by referendum in a general election. AUMA created a regulatory framework for commercial cannabis activities and 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 and comply with State law and regulations. (DCC, 2022) This includes §16304 of the Cannabis Regulations, 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.

Local Regulatory Environment
The City of Fort Bragg Municipal Code currently regulates Cannabis Businesses in Chapter 9.30. The Code allows for cultivation, processing, manufacturing, distribution, Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 11 and retail cannabis activity with a discretionary Cannabis Business Permit. Currently, the ILUDC does not allow cannabis cultivation. Commercial cannabis manufacturing is currently allowed in the industrial zones with a Minor Use Permit (MUP), as is wholesaling and distribution. The proposed amendments to the code will add indoor commercial cannabis cultivation as an allowable use.

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 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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 12 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 required) for which industrial zoned land could be developed. For example, 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 A §18.100.020 Definition for Manufacturing/Processing - Light for complete definition.) The proposed amendments to cannabis retail include revising the name “Cannabis Retail” to “Cannabis Retail and Accessory Uses” and the addition of new specific land use standards around odor, hours, lighting, screening, allowable locations and accessory uses. The proposed revision clarifies the current code language which states:

E. 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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 13 manufacturing using volatile solvents be allowable as uses accessory to cannabis retail uses.

Other Relevant Regulations
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 Minor Use 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.”
Minor Use Permit Process and Required Findings
The ILUDC requires projects that are reviewed via a MUP to be upgraded to a Use Permit if the project is not exempt from CEQA via a categorical exemption as noted below per 18.71.060C2b:
b. A Minor Use Permit application shall only be issued if there is evidence that the project is eligible for a California Environmental Quality Act (CEQA) exemption in compliance with State law and Chapter 18.72 (Environmental Impact Assessment and Mitigation Monitoring). Projects that are otherwise eligible for a Minor Use Permit, but are not eligible for a CEQA exemption, shall be processed as a Use Permit.

Further, whether a project is reviewed under a UP or a MUP, the decision-making body must make the following findings per section 18.71.060F Findings and decision. An application for a Use Permit or Minor Use Permit may be approved subject to conditions, or disapproved by the review authority. The review authority shall approve a Use Permit or Minor Use Permit only after first finding all of the following:

1. The proposed use is consistent with the General Plan and any applicable specific plan;

2. The proposed use is allowed within the applicable zoning district and complies with all other applicable provisions of this Development Code and the Municipal Code;

3. The design, location, size, and operating characteristics of the proposed activity are compatible with the existing and future land uses in the vicinity;

4. The site is physically suitable in terms of design, location, shape, size, operating characteristics, and the provision of public and emergency Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 14 vehicle (e.g., fire and medical) access and public services and utilities (e.g., fire protection, police protection, potable water, schools, solid waste collection and disposal, storm drainage, wastewater collection, treatment, and disposal, etc.), to ensure that the type, density, and intensity of use being proposed would not endanger, jeopardize, or otherwise constitute a hazard to the public interest, health, safety, convenience, or welfare, or be materially injurious to the improvements, persons, property, or uses in the vicinity and zoning district in which the property is located.

5. The proposed use complies with any findings required by § 18.22.030 (Commercial District Land Uses and Permit Requirements).

G. Conditions of approval. In approving a Use Permit or Minor Use Permit, the review authority may impose any conditions deemed reasonable and necessary to ensure that the approval will comply with the findings required by Subsection (F) of this Section (Findings and decision). The violation of any required condition shall constitute a violation of this Section and may constitute grounds for revocation of the permit.

Design Review
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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 15 Regulatory Conclusion
The proposed project will amend the Inland Land Use and Development Code to regulate commercial cannabis cultivation and modify existing regulations for cannabis retail in the inland area of Fort Bragg. 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.

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 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 □ Air Quality
Resources
□ Biological Resources □ Cultural Resources □ Energy
□ Geology /Soils □ Greenhouse Gas □ Hazards & Hazardous Emissions 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)
DETERMINATION:

On the basis of this initial evaluation:
x 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.

April 20, 2022
Date
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e I 16 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 17

TABLE OF CONTENTS
Aesthetics...................................................................................................................... 18 Agricultural and Forestry Resources ............................................................................. 22 Air Quality...................................................................................................................... 26 Biological Resources..................................................................................................... 31 Cultural Resources........................................................................................................ 38 Energy........................................................................................................................... 43 Geology and Soils ......................................................................................................... 45 Greenhouse Gases ....................................................................................................... 53 Hazards and Hazardous Materials ................................................................................ 57 Hydrology and Water Quality ........................................................................................ 63 Land Use and Planning................................................................................................. 67 Mineral Resources ........................................................................................................ 70 Noise............................................................................................................................. 71 Population and Housing ................................................................................................ 73 Public Services.............................................................................................................. 74 Recreation..................................................................................................................... 78 Transportation ............................................................................................................... 79 Tribal Cultural Resources.............................................................................................. 83 Utilities and Service Systems ........................................................................................ 86 Wildfire .......................................................................................................................... 92 Mandatory Findings of Significance............................................................................... 96 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 18 Aesthetics
Potentially
Significant
Impact
Less Than
Significant
with
Mitigation
Incorporat
ed
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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 19 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 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.

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

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 20 Discussion
The proposed ILUDC amendments will not result in any direct physical development.

All future development that could occur as a result of adoption of the ILUDC amendments would require a discretionary Minor Use Permit approval, which requires that the proposed project “complies with all other applicable provisions of this Development Code and the Municipal Code”. The following discussion highlights the regulations in the Development Code, the municipal code and state and federal regulations that are relevant to the environmental issues of this section. a & b) The proposed change to the ILUDC could affect development patterns in commercial and industrial zoning districts located east of Highway 1. These areas do not qualify as scenic vistas, further this part of Highway 1 is not considered a scenic highway. The proposed project would have no impact on scenic vistas or Scenic highways.
c) The proposed new regulations would apply to an urbanized area. The adoption of the proposed amendments to the ILUDC would require projects to comply with the full array of relevant regulatory requirements including Minor Use Permit, Use Permit, and Design Review (if new construction or an interior remodel is involved). Thus, all proposed projects that might be approved as a consequence to the ILUDC amendment, would have to conform with 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. All new physical development, including new cannabis business, are subject to Design Review and the design guidelines. Additionally, any business that proposes substantial changes to the exterior of an existing building is also subject to design review. The proposed code amendments require all cannabis cultivation to take place within a fully enclosed and secure structure, that cannabis not be visible from a public right of way, and that cultivation should not appear any different from other buildings in the same district.

The City’s design review process requires adherence to established design guidelines and requires the review authority to support findings that demonstrate conformance with 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.
d) the Department of Cannabis Control Medicinal and Adult Use Commercial Cannabis Regulations §16304(a)(6,7) require that outdoor 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) In addition, the ILUDC §18.30.070 Outdoor Lighting has the following provisions:

A. An outdoor light fixture shall be limited to a maximum height of 18 feet.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 21 B. Outdoor lighting shall utilize energy-efficient (high pressure sodium, low pressure sodium, hard-wired compact florescent, or other lighting technology that is of equal or greater energy efficiency) fixtures and lamps.

C. Lighting fixtures shall be shielded or recessed to minimize light bleed to adjoining properties, by:

1. Directing each light fixture downward and away from adjoining properties and public rights-of-way, so that no on-site light fixture directly illuminates an area off the site;

2. Ensuring that the light source (e.g., bulb, etc.) is not visible from off the site;

3. Confining glare and reflections within the boundaries of the site to the maximum extent feasible; and

4. Incorporating a cut-off shield to prevent light spill for any light sources over 10 feet high.

D. No lighting on private property shall produce an illumination level greater than 1 foot candle on any property within a residential zoning district except on the site of the light source.

E. No lighting or lighted signs shall blink, flash, or be of unusually high intensity or brightness, as determined by the Director.

F. Up lighting shall not be used to illuminate a building’s architectural features. However, lighting may be used to keynote special features such as towers and decorative cornices as determined by the review authority.

Even if a proposed project were exempt from CEQA (see above discussion in Project Description), applications that comply with the City’s outdoor lighting standards would result in less than significant impacts due to light pollution.

Applicants may propose mixed-light cultivation which uses a greenhouse style ceiling, clearstory, or skylights to bring natural light into the cultivation area during the day. This type of fenestration could also potentially result in “light pollution” at night if indoor lighting is used past sunset. However, all such applications, will be required to address lighting through the Use Permit and Design Review process and during this review the applicant could be required to install automatic shades that prohibit light from leaving the facility. To ensure that the project does not result in light or glare that will impact nighttime views, section §18.42.055(C)(2)(f) of the ordinance was revised to incorporate the following language:

Lighting and Glare. All cultivation projects shall use automatic shades or another equivalent measure to prevent light, from the cultivation area, from escaping the building.

Additionally, all future proposed cannabis cultivations are subject to a conditional use permit, which is a fully discretionary process. 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 reviewed under CEQA and mitigation measures could be imposed to address any potentially significant impacts. Applications that comply with the City’s outdoor lighting standards would result in less than significant impacts due to light pollution.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 22 The proposed change in the Inland Land Use and Development Code establishes regulation for commercial cannabis cultivation and cannabis retail; it does not alter or conflict with the City’s policies regarding lighting and screening of new development as mitigated. Therefore, adoption of the ILUDC amendments 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.

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.html#9.30 California Department of Cannabis Control. Medicinal and Adult-Use Commercial Cannabis Regulations, California Code of Regulations Title 4 Division 19. September, 2021.

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
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 23 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
non-agricultural 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 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 nonforest use?
☐ ☐ ☐ ☒
e) Involve other changes in the
existing environment which, due to
their location or nature, could result
in conversion of Farmland, to non-
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 24 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
a- e) 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.

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
Figure 2: Inland Industrial and Commercial Zones in
the City of Fort Bragg
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 25 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, livestock grazing 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. Figure 3:

Industrial Zones and Important Farmland
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 26 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.

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
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 27 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
The following discussion highlights the regulations in the Development Code and the municipal code and other state and federal regulations that are relevant to the environmental issues of this section.

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.

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
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 28 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: US EPA, 2016; CARB, 2020
ppm = parts per million, ppb = parts per billion, µg/m3 = micrograms per cubic meter, n/a = not applicable
Discussion
a & b) 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 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).

The cultivation of commercial cannabis does not result in the release of PM10 and therefore the project will have less no impact and will not conflict with an applicable air quality plan.

Additionally, air quality is also addressed in the Inland General Plan which includes the following policy and associated programs:

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 29 Policy OS-7.2 Air Quality Standards: Seek to comply with State and Federal standards for air quality
Policy OS-7.2 Program OS-7.2.1 Review new project proposals for consistency with MCAQMD regulations and guidelines
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.

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

When the City receives a discretionary project application, the project is sent for review to the MCAQMD for comments prior to the review for exemption under CEQA Guidelines 15061 as noted in the Project Description Section above. 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 are used to determine if a proposed project would result in air quality impacts.

This would also be done prior to using a 15332 Infill Exemption to confirm no potential impacts on air quality. The MCAQMD published “Adopted Air Quality CEQA Thresholds of Significance” on June 2, 2010 (see Attachment B). 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 ILUDC amendments.

Furthermore, if a proposed MUP 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 proposed project will have no impact on implementation of an air quality plan nor will it have any impact on the regional non-attainment of a criteria pollution. c & d) 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. Section §9.30.050(N)(8) of the Municipal code requires that applicants for a MUP submit an odor prevention plan, illustrating how the cannabis business will be consistent with § 18.30.080(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.

The City of Fort Bragg’s Inland General Plan defines Sensitive Receptors as:

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 30 “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 ordinance (Section 18.42.055(C)(2)(e) relating to the operational requirements for commercial cultivation) includes the following requirement self-mitigating requirement:
a. Odor. Cannabis cultivation businesses shall use the best available technology to ensure odors are not detected on adjacent or nearby property or areas open to the public.

Finally, the proposed changes to ordinance, Section 18.42.055(C)(2)(a) relating to cannabis retail facilities, includes the following language:
a. Odor. Cannabis retail businesses shall use the best available technology to ensure odors are not detected on adjacent or nearby property or areas open to the public.

As proposed, the ILUDC amendment is self-mitigating and will ensure that new cannabis cultivation will not result in new or more severe impacts to sensitive receptors as the use permit findings will ensure that the public will not be able to detect odors from the operations. Therefore, the proposed amendments to the ILUDC will have no impact to air quality.

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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 31 Mendocino County Air Quality Management District. Adopted Air Quality Thresholds of Significance. June 2, 2010.

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
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 32 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, Natural Community
Conservation Plan, or other
approved local, regional, or state
habitat conservation plan?
☐ ☐ ☐ ☒
The proposed ILUDC amendments will not result in any direct development. All future development that could occur as a result of adoption of the ILUDC amendments would require a discretionary Minor Use Permit approval, which requires that the proposed project “complies with all other applicable provisions of this Development Code and the Municipal Code” and if not categorically exempt, would also require a CEQA review. All proposed projects that have the potential to impact biological resources through new development or expansion of an existing project, would require further CEQA review.

The following discussion highlights the regulations in the Development Code and the municipal code and other state and federal regulations that are relevant to the environmental issues of this section.
a) 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)
There is one Critical Habitat area identified by the US Fish and Wildlife IPaC website.

As seen in the map, the red area is critical habitat identified for the Tidewater Goby (see Figure 5). At this point it would be entirely speculative to try and determine where a cannabis business may locate. However, any potential project located within 100 feet of this habitat area 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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 33 b, c) At the state level, the California
Endangered Species Act (CESA)
prohibits approval of 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 PorterCologne 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 protect biological resources:

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

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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 34 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.

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.

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. 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.

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.

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 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 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.

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

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.

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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 35 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.
(b, c) Additionally, the City’s ILUDC §18.50.050 regulates Special Review Areas:

Biologically Sensitive Areas and provides the following General Development Standards. Projects with potential impacts to wetlands and sensitive communities, in the inland area, are identified in Map OS-2 which maps locations in the special review area and such projects must comply with Policy OS-1.3 Biological Report Required for Special Review Areas. Projects that are proposed for location in a Special Review Area are required to provide a biological Report. Biological reports for discretionary projects are reviewed by staff and by Department of Fish and Wildlife staff if warranted. If a proposed project included new construction, prior to evaluating a project under CEQA Guidelines 15061, the applicant would have to provide a biological survey to assess whether the site contained biotic resource. All projects which have the potential to have a significant impact on the environment require a Use Permit and full CEQA review, in other words, per section 15300.2of CEQA, even a project that qualifies for a Categorical Exemption from CEQA must comply with CEQA if it has the potential to have significant impacts on the environment.

If the construction project were found to be exempt from CEQA, it would also be subject to ILUDC Article 5 and the regulations of the Inland General Plan that would require conditions on the Minor Use or Use Permit to ensure that the project does not have impacts on the biological resources on site. Any project that has potentially significant impacts to biotic resources, would be reviewed under CEQA and include mitigation measures to reduce impacts to a less than significant impact.

C. General development standards (18.50.050(c)).

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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 36

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 pose a threat to indigenous plant communities and shall not be approved as part of any proposed landscaping.

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.
(d, e) If the ILUDC amendment is adopted, all proposed cannabis projects will require a discretionary Minor Use Permit approval which requires that a project comply with all requirements of the Inland General Plan and the Inland Land Use and Development Code and may be subject to CEQA review depending on the scope of the project. If the project is proposed on a site with important biotic resources, it would be subject to ILUDC §18.50.050. These measures taken together ensure that the project would have no conflict with local policies and ordinances protecting biological resources. These policies and regulations together protect native and migratory fish and wildlife species, corridors and nursery sites and so the proposed ILUDC amendment would have no impact on these biological resources.
(f) There is no habitat conservation plan within the Inland Zoning area.

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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 37 Figure 4: Inland General Plan Map OS-2
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/esalibrary/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&division=3. &title=&part=&chapter=1.5.&article=1.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 38 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/resources US Department of Agriculture. (2022, January 10). Web Soil Survey. Retrieved from:
https://websoilsurvey.sc.egov.usda.gov/App/HomePage.htm 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?
☐ ☐ ☐ ☒
The proposed ILUDC amendments will not result in any direct development. All future development that could occur as a result of adoption of the ILUDC amendments would require a discretionary Minor Use Permit approval, which requires that the proposed project “complies with all other applicable provisions of this Development Code and the Municipal Code” and if not categorically exempt would also require a CEQA review.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 39 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 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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 40 routinely issues AB 52 notifications to Sherwood Valley Rancheria of Pomo Indians of California, who has officially requested to be notified of projects. Other tribes in the area that may be consulted include:
 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 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.

Policy LU-3.1 Central Business District: Retain and enhance the small-scale, pedestrian friendly, and historic character of the Central Business District (CBD).

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 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
a) The City maintains a list of potentially significant historic structures within the City limits. Most of the non-residential structures are concentrated in the Central Business District and ILUDC Chapter 18.74.040 regulates Protection of historic structures.

18.74.040 - Certificate of Appropriateness – Requirements Share A. Purpose. A certificate of appropriateness (COA) is intended to protect structures, improvements, natural features, objects, and areas of architectural, cultural, economic, historic, political, and social importance from unnecessary and/or inappropriate alteration, demolition, or removal.

Further the ILUDC requires that the following findings are made with regard to alterations or changes to a historic structure.

Findings for certificate of appropriateness.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 41

1. Alterations, generally. A COA shall be issued for a proposed alteration only if the review authority first finds that:
a. The proposed work will neither adversely affect the significant architectural features of the historic resource nor adversely affect the character or historic, architectural, aesthetic interest, or value of the historic resource and its site;
b. The proposed work conforms to any prescriptive standards and design guidelines adopted by the City for the particular resource, and to the Secretary of the Interior’s Standards for Rehabilitation, and does not adversely affect the character of the historic resource; and c. In the case of construction of a new improvement upon a historic resource property, the use and design of the improvement shall not adversely affect, and shall be compatible with, the use and design of existing historic resources within the same historic district.

As all projects located within historic buildings would have to comply with the above regulations through the Minor Use Permit process, the proposed ILUDC would have no impact on historic buildings.
b, c) Furthermore, the City’s ILUDC §18.50.030 includes that following regulations, for Archaeological Resource Preservation, which would be applied for any proposed project that results from the adoption of the ILUDC amendments:

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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 42 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.

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 federallyrecognized 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.

As noted above, the subject project is limited to revisions in the ILUDC. All future cannabis cultivation applications require a discretionary permit (MUP) 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. All future projects would be subject to a variety of regulations enumerated above that would ensure that future projects have a less than significant impact on historic and cultural resources. Therefore, the project to adopt a new ordinance will have no impact on historic and cultural resources.

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

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 43 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 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?
☐ ☐ ☐ ☒
The proposed ILUDC amendments will not result in any direct development. All future development that could occur as a result of adoption of the ILUDC amendments would require a discretionary Minor Use Permit approval, which requires that the proposed project “complies with all other applicable provisions of this Development Code and the Municipal Code” and if not categorically exempt would also require a CEQA review.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 44 a,b) 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. Finally, the proposed ILUDC amendment §18.42.055(C)(2)(c) requires 100% renewable energy for cannabis cultivation.

A cannabis cultivator shall provide proof of the utility provider’s ability to provide reliable power to the cultivation site. Electricity must be exclusively provided by a renewable energy source(s), including but not limited to: 1) documented grid power supplied from a 100% renewable source, or 2) on-site renewable energy system.

Additionally, as proposed the ILUDC amendment would also apply these requirements to all accessory cannabis cultivation within a retail business in the commercial zoning districts. These two requirements in the proposed ILUDC amendment would ensure that the project would have no impact on energy.

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

Sustainability Goal S-2 Encourage development that minimizes the demand for non-renewable 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.

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.

References
California Energy Commission,(2022, January 5) “2022 Building Energy Efficiency Standards.” Retrieved from: https://www.energy.ca.gov/programs-and-topics/programs/building-energyefficiency-standards/2022-building-energy-efficiency Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 45 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-COVPROC4-F, Covered Processes, March 2021 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 Alquist- Priolo 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? ☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 46 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?
☐ ☐ ☐ ☒
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 within 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 approximately 5 miles offshore from the City as seen in Figure 6.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 47 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) 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 ILUDC to Regulate Cannabis Businesses P a g e | 48 Figure 7: Earthquake Shaking Potential Map
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 49 Figure 8: Map of Historic Landslides and Potential Landslide Areas in Fort Bragg Discussion
The proposed ILUDC amendments will not result in any direct development. All future development that could occur as a result of adoption of the ILUDC amendments would Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 50 require a discretionary Minor Use Permit approval, which requires that the proposed project “complies with all other applicable provisions of this Development Code and the Municipal Code” and if not categorically exempt would also require a CEQA review.

The following discussion highlights the regulations in the Development Code and the municipal code and other state and federal regulations that are relevant to the environmental issues of this section.
a-d) The 2019 California Building Standards Code (CBC) (Cal. Code Regs., Title 24) 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 also address geology and soils:

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 Program SF-1.1.1 Continue to comply with the provisions of the State Alquist-Priolo Act.

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.

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

Program SF-1.1.7 Continue to comply with State law regarding reinforcement of unreinforced masonry structures.

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.

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

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 51 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.

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.

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.
e) Septic tanks and fields are not permitted within the City of Fort Bragg. f) 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. Protection for these resources would occur through CEQA review for a specific project.

Based on the application of existing regulations to potentially proposed future projects, 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 ILUDC to Regulate Cannabis Businesses P a g e | 52 Figure 9: General Plan Map SF-1 Geologic Hazards in the City of Fort Bragg Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 53 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/Map-Sheets/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&division=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
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?
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 54 b) Conflict with an applicable plan,
policy or regulation adopted for the
purpose of reducing the emissions of
greenhouse gases?
☐ ☐ ☐ ☒
a, b) The proposed ILUDC amendments will not result in any direct development. All future development that could occur as a result of adoption of the ILUDC amendments would require a discretionary Minor Use Permit approval, which requires that the proposed project “complies with all other applicable provisions of this Development Code and the Municipal Code” and if not categorically exempt would also require a CEQA review. The following discussion highlights the regulations in the Development Code and the municipal code and other state and federal regulations that are relevant to the environmental issues of this section.

In 2007, the United States Supreme Court ruled that Greenhouse Gas Emissions (GHGs) are air pollutants under the Clean Air Act. 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 per the Association of Bay Area Governments which sets emission standards for Mendocino County.

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 regarding GHG emissions:
(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).

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 55 Also, the State of California Department of Cannabis Control Regulations §16305.

Renewable Energy Requirements (See Attachment C):
(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 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.

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 non-renewable energy and reduces Green House Gas (GHG) emissions.

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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 56 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, as noted previously, the proposed ILUDC amendments to section

18.42.055 C(2)(c) requires 100% renewable energy for cannabis cultivation.

Additionally, as proposed, the ILUDC amendment would also apply these requirements to all accessory cannabis cultivation within a retail business as well as cultivation conducted as a primary use.

These two requirements in the proposed ILUDC amendment would ensure that the project would have no impact 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-scopingplan 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/wp-content/uploads/sites/2/2021/10/DCC-Cannabis-RegulationsSept.-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 ILUDC to Regulate Cannabis Businesses P a g e | 57 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
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 58 emergency response plan or
emergency evacuation plan?
g) Expose people or structures,
either directly or indirectly, to a
significant risk of loss, injury or
death involving wildland fires?
☐ ☐ ☐ ☒
The proposed ILUDC amendments will not result in any direct physical development.

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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 59 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)
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:

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 60  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)
 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:

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 61 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.

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.

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).

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.

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.

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.

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.

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.

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
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.

The proposed ILUDC amendment includes requirements for environmentally friendly practices in section 18.42.055 C(2)(d) as follows:
d. Environmentally Friendly Practices. Cultivation projects shall use environmentally friendly practices, including integrative pest management and waste reduction.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 62 Additionally, the proposed ILUDC amendment prohibits the use of volatile solvents in any accessory use to retail cannabis in commercial districts. Volatile solvents are not used in commercial cultivation, and the code does not change the regulations for cannabis manufacturing in industrial zoning, so existing regulations would still apply.

All future cannabis business applications would be reviewed to determine if the proposed project is 1) located on an existing site requiring remediation and/or 2) using substances or materials that may be hazardous. If yes, 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. Additionally, current regulations will reduce any potential impacts of new development projects to a less than significant impact. Therefore, the proposed project will have a less than significant 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/wp-content/uploads/sites/2/2021/10/DCC-CannabisRegulations-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/general-planzoning-information/inland-land-use-development-and-general-plan/-folder-117 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 63 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? ☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 64 d) In flood hazard, tsunami, or seiche
zones, risk release of pollutants due
to project inundation?
☐ ☐ ☐ ☒
e) Conflict with or obstruct
implementation of a water quality
control plan or sustainable
groundwater management plan?
☐ ☐ ☐ ☒
The proposed ILUDC amendments will not result in any direct physical development.

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.

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.

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 non-stormwater runoff, and alteration of physical, chemical, or biological features of the landscape.

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

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 ILUDC to Regulate Cannabis Businesses P a g e | 65 Additionally, Article 6 Site Development Regulations of the ILUDC contains Chapter

18.62 which provides standards for erosion and sediment control and protection and setbacks for slopes and protection of watercourse. All proposed projects would have to comply with these regulations, which together will ensure that all future projects have a no impact on runoff, erosion, siltation and water recharge. d) There are no inland industrial or commercial lands subject to flooding. See Figure 11 which shows the areas of the City at risk for flooding. There are also no areas of the City of Fort Bragg located within areas regulated by the proposed ordinance which are potentially within a Tsunami Hazard Zone as seen in Figure 12.

Figure 11: Flood Risk Map of the City of Fort Bragg
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 66 Figure 12: General Plan Map SF-3 Tsunami Inundation Map for Emergency Planning Source: City of Fort Bragg Inland General Plan
All existing development standards for industrial and commercial uses established to protect the environment including hydrology and water quality will remain applicable.

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/EnvironmentalReview/LSA California Department of Transportation (Caltrans). 2020. Caltrans Water Quality Planning Tool.

Accessed at http://svctenvims.dot.ca.gov/wqpt/wqpt.aspx.

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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 67 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/ 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?
☐ ☐ ☐ ☒
The proposed ILUDC amendments will not result in any direct physical development.

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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 68 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)
a) The proposed ordinance would establish Cannabis cultivation as a permittable use in the industrial zoning district. Industrial zoning districts are continuous with each other north of Pudding creek and so development in these areas would not divide a community. Similarly, the industrial area along Franklin Street is one continuous zone and so development in this industrial area would not divide a community. The proposed ordinance would allow retail cannabis cultivation and accessory uses in CBD, CH and CG. These zoning districts are all contiguous and so development within them would not divide a community.
b) The proposed ILUDC amendment would establish new regulations for new uses that would be similar in size to and intensity of existing and permissible uses within the zoning district. All projects will be required to comply with the entirely of the Inland General Plan and the ILUDC and therefore could not cause a significant environmental impact by a conflict with said regulations. 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. 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, and could be potential project sites. There are approximately four parcels totaling 18 acres located north of Pudding Creek in the industrial zone that are currently undeveloped were a cannabis cultivation could be proposed.

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. Indoor commercial cannabis cultivation is similar to other uses already allowed in the industrial zone. With the proposed requirements for water, energy, and odor control in the Inland Land Use and Development Code, commercial cannabis cultivation, which requires a discretionary MUP, would be comparable to other allowable uses that do not require a discretionary permit.

The ILUDC amendments 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 MUP 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 Retail & Accessory Uses
Under the proposed ILUDC amendment retail cannabis projects and all accessory uses would be required to obtain a Minor Use Permit. All proposed projects must comply with the specific land use standards as detailed in §18.42.057. (see Attachment A).

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 69 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, because the proposed changes to the ILUDC 18.22.030 Table 2-6 limits the total number of retail cannabis businesses in the Central Business District to no more than three.

The proposed changes to Inland Land Use and Development Code regulating cannabis are consistent with the goals, policies, and programs in the Inland General Plan. The proposed 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&division=

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 City of Fort Bragg. (2022, January 10) Zoning Map. Retrieved from:
https://www.city.fortbragg.com/home/showpublisheddocument/734/637710006092570000 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
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 70 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?
☐ ☐ ☐ ☒
a, b) 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.

There are no mineral resources of state, regional, or local importance within Fort Bragg.

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 ILUDC to Regulate Cannabis Businesses P a g e | 71 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?
☐ ☐ ☐ ☒
The proposed ILUDC amendments will not result in any direct physical development.

Noise is defined as unwanted sound, and thus is a subjective reaction to characteristics of a physical phenomenon. 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. 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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 72 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. 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. a, b) Commercial cannabis cultivation may utilize equipment that generates exterior noise, such as fans and HVAC systems but these are comparable to equipment that would ventilate other industrial and commercial uses that are allowable or conditionally allowable in light and heavy industrial and commercial zoning districts. All cannabis related applications would continue to be subject to discretionary review through the MUP process and are therefore subject to conformance with Chapter 9.44, the Inland General Plan, and the ILUDC.

The City’s General Plan and Land Use Code require that all discretionary projects are reviewed for changes to the noise environment from construction and operations and must be conditioned to comply with the code. Furthermore, MUPs are fully discretionary and all future applications related to cannabis would be subject to an initial review in accordance with CEQA Guidelines 15061. The City may impose special conditions to regulate noise levels or require refinements of a project’s design to comply with the City noise standards, similar to other commercial and industrial activities within city limits. c) The City is not located within 2 miles of a private or public airstrip. The former private airstrip on the GP Mill Site was closed in 2002.

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

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

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 73 City of Fort Bragg. (2022, January). Municipal Code. City of Fort Bragg. Retrieved from https://www.codepublishing.com/CA/FortBragg/#!/FortBraggNT.html 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?
☐ ☐ ☐ ☒
a,b) The ILUDC amendments will not rezone any land that is currently zoned residential to commercial or industrial. The new Cannabis Cultivation regulations would not induce substantial unplanned population growth in the City nor displace substantial numbers of existing people or housing, because 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 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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 74 an application is received to determine the potential to have either direct or indirect impacts on growth and housing.
b) The proposed changes to Cannabis retail regulations could result in additional retail development in commercial zones. Since housing is a permitted use in commercial zoning districts, retail cannabis regulations have the potential to result in the conversion of some residential homes, located in commercial districts into retail uses. However, this would not be a substantial number of residential uses and is equivalent to the existing risk that a residential use in a commercial district can be changed to a commercial use at any time. Therefore, this would have no impact and no mitigation is required.

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 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 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
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 75 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.

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 ILUDC amendments would establish regulations for cannabis cultivation in industrial zones and modify regulations for cannabis retail activities in commercial Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 76 zones. All future cannabis application received under the ILUDC amendments would be subject to a discretionary Minor Use Permit, which requires an evaluation of impacts to public services to maintain acceptable service ratios, response times or other performance objectives consistent with the City’s General Plan. All MUP approvals must make the following findings with regard to public services:

4. The site is physically suitable in terms of design, location, shape, size, operating characteristics, and the provision of public and emergency vehicle (e.g., fire and medical) access and public services and utilities (e.g., fire protection, police protection, potable water, schools, solid waste collection and disposal, storm drainage, wastewater collection, treatment, and disposal, etc.), to ensure that the type, density, and intensity of use being proposed would not endanger, jeopardize, or otherwise constitute a hazard to the public interest, health, safety, convenience, or welfare, or be materially injurious to the improvements, persons, property, or uses in the vicinity and zoning district in which the property is located.
a) Fire protection. Cannabis cultivation has been associated with fire events due to inadequate electrical improvements and unattended lighting systems. The new ILUDC amendment requires the installation of automatic fire sprinklers in all commercial cannabis cultivation area to mitigate potential fire risks. This activity is minor in nature and will not necessitate any new fire1313 facilities.
b) Police Protection. All cannabis business permits undergo a public safety review per Municipal Code Chapter 9.30 in which the police department reviews the security plan for the premises and determines if it will be adequate. This activity is minor in nature and will not necessitate any new police facilities. The city has two permitted retail cannabis business and one cannabis manufacturing facility, and none have experienced level of calls for service that is any more than any other comparable retail or manufacturing businesses.
c,d.) Schools & parks. All new projects are required to pay a school impact fee as part of the building permit process. However, any new development authorized under proposed ILUDC regulations would not result in an increase in population that would necessitate school or park expansions.

The ILUDC amendments would establish regulations for a new use in an industrial zone and make modifications to existing regulations for cannabis retails 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.” Department of Cannabis Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 77 Control, 2021. https://cannabis.ca.gov/wp-content/uploads/sites/2/2021/10/DCC-CannabisRegulations-Sept.-2021.pdf City of Fort Bragg Municipal Code. (2022, January) Title 15. Retrieved from:
https://www.codepublishing.com/CA/FortBragg/#!/FortBragg15/FortBragg15.html Figure 15: Map of Public Facilities in the City of Fort Bragg Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 78 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?
☐ ☐ ☐ ☒
a, b) The City of Fort Bragg has two public parks in the inland zone; Otis Johnson Park, a 6- acre riparian 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 5.5 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. In total the City has 172 acres of parks and open space which is well above the threshold which is 3 acres of neighborhood and community park space per 1,000 residents. The City has seven thousand residents and has 24.4 acres of parks for every 1,000 residents. 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.

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 ILUDC to Regulate Cannabis Businesses P a g e | 79 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?
☐ ☐ ☐ ☒
a-d) The proposed ILUDC amendments will not result in any direct physical development. All future development that could occur as a result of adoption of the ILUDC amendments would require a discretionary Minor Use Permit approval, which requires that the proposed project “complies with all other applicable provisions of this Development Code and the Municipal Code” and if not categorically exempt would also require a CEQA review. The following discussion highlights the regulations in the Development Code and the municipal code and other state and federal regulations that are relevant to the environmental issues of this section.

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) The City 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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 80 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.

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 ILUDC to Regulate Cannabis Businesses P a g e | 81 Some of the applicable goals, policies, and programs in the Circulation element might include:

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.

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; 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.

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.

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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 82 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.

The ILUDC amendments 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?
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 ILUDC to Regulate Cannabis Businesses P a g e | 83 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.
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 84 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 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.

The proposed ILUDC amendments will not result in any direct physical development.

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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 85 eligible for inclusion in the California Register of Historical Resources (California Register) or a local register of historical resources.

2. A resource 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.

Discussion
The ILUDC amendments 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. All MUP applications would be reviewed at the time they are proposed to determine if they would have a significant impact on Tribal Cultural Resources per Section 18.50.020 Archaeological Resource Protection.

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. Outside of the AB 52/CEQA process, all discretionary projects involving ground disturbance of any kind are referred to Sherwood Valley Rancheria for comment. Larger projects may also be sent to all local tribes. This process is followed regardless of whether a project qualifies for a CEQA exemption. 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. A condition is included in the permit as requested by the Tribe. 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 Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 86 could directly or indirectly affect tribal cultural resources. Therefore, the ILUDC amendments 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
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
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 87 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 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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 88 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 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.

Discussion
The proposed ILUDC amendments will not result in any direct physical development.

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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 89 Public Facilities Goal PF-1 Ensure that new development is served by adequate public services and infrastructure.

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.

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.

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.

The ILUDC amendments 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.
a, b, c) Water. Depending on the size of the facility,
indoor commercial cannabis cultivation can use
water intensively. The chart and graph illustrate that
the quantity of water use is proportional to the size of the operation. The chart and table illustrate that
cannabis cultivation has a similar water use profile to other intensive water uses such as restaurants,
hotels and laundromats.

As noted in the project description, adoption of this
ordinance could result in the subsequent
applications for and approval of approximately
12,000 square feet of cannabis cultivation area,
which would result in demand for approximately
600,000 gallons per year, which is the equivalent water use of a large market or small lodging facility. As a MUP would be required by the ordinance for any new proposed projects, the actual capacity of the City water system would be analyzed at the time of application to determine if it could serve the new project. Nevertheless, this analysis is illustrates that the City has the capacity to serve future likely cannabis cultivation development.

Type of Use (&size) Gallons/year
Canabis 500 sq ft 29,200
Mixed Commercial 42,990
Restaurant/Bar… 133,609
Canabis 5,000 sq ft 292,000
Car Wash 383,003
Market/Grocery 454,649
Canabis 10,000 sq ft 584,000
Lodging 760,231
Laundromat 839,564
Brewery 1,254,483
Canabis 22,000 sq ft 1,168,000
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 90 Furthermore, all cannabis applicants are required to develop a water budget and the City water utility must confirm that there is sufficient current capacity to serve the new use through the Minor Use Permit process. The Municipal Code requires a water budget and plan, as described below:
§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; The proposed ILUDC amendment 18.42.055(C)(2)(c) requires water saving techniques for cannabis cultivation (primary or accessory):
c. Utilities. 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.

Additionally, as noted above as part of the MUP process each cultivation project will need to comply with the following policies:

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.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 91 Each project is required to get a “will serve letter” from the Municipal Services District to show that the City’s water infrastructure has stuffiest capacity to serve the new project.

Given the existing regulatory environment and potential water use the project will have a less than significant impact on water resources.

Wastewater. During cultivation, water us recycled onsite and lost through evapotranspiration so most does not enter the waste-water stream. However, contamination from fertilizers and insecticides and fungicides may be a potential problem for the Waste Water Treatment facility, therefore section18.42.055 (C)(d) of the ordinance was revised as follows (see italics):

Environmentally Friendly Practices. Cultivation projects shall use environmentally friendly practices, including integrative pest management and waste reduction. Applicants shall provide a list of all proposed fertilizers, insecticides and fungicides to the Municipal Services District and shall enter into an agreement with the Municipal Services District regarding use of fertilizers, insecticides and fungicides if required by the Director of Public Works.

As modified the ordnance will have a less than significant impact on wastewater.

Energy. The proposed changes to the ILUDC includes energy conservation and source requirements for Cannabis cultivation as primary and accessory use as follows:
c. Utilities. 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. Electricity must be exclusively provided by a renewable energy source(s), including but not limited to: 1) documented grid power supplied from a 100% renewable source, or 2) on-site renewable energy system.

Additionally, the Municipal Code 9.30.050(O)(3) requires that an applicant submit proof of the utility provider’s ability to provide reliable power to the cultivation use and is typically received in the form of a “will serve” letter from the utility provider. §9.30.050(O)(3) An energy plan that indicates the estimated monthly energy usage in kilowatthours, 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;
For all cannabis projects, the City’s Public Works/Engineering Department reviews 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 permit review process, the City would review applications for consistency with the General Plan and Municipal Code including the capacity of utility services to serve the proposed project.

As mitigated the proposed ordinance would have a less than significant impact on water, wastewater and energy use and facilities.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 92 d,e) Neither cannabis cultivation nor retail sales result in the generation of solid waste at a rate greater than that of other already allowable uses within the respective zoning districts of the Inland Area. These businesses produce typical quantities of solid waste for retail and agricultural facilities, further green waste must be handled per State regulations. Additionally, all new construction projects are required to comply with the City’s Construction waste recycling and demolition ordinance, and this is the only time that a cannabis project could result in the generation of a significant waste stream. The ordinance is intended to reduce solid waste due to demolition and construction through recycling and fee requirements.

Therefore, the project will have no impacts on solid waste generation.

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/
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.

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?
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 93 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?
☐ ☐ ☐ ☒
a) The City of Fort Bragg’s evacuation map
(see Figure) will be used in the event of a
wildfire or other emergency to evacuate the
City. The ordinance will have no impact on
or impair the City’s adopted emergency
response plan which includes an emergency
evacuation plan. The primary evacuation
routes (highway 1 and Oak Street) will not
be impacted by the adoption or the
ordinance or any subsequent associated
development.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 94 b) The inland area, which is controlled by the ILUDC and the proposed ordinance does not include slopes which would exacerbate fire risk. In addition, the City has relatively low to no fire risk as illustrated in figure 18 below. In the rare event of a fire, prevailing winds blow from the west and bring fresh air from the ocean into the City thereby minimizing the risk of smoke inhalation. Finally, the proposed project is a commercial and industrial zoning ordinance and so would not results in occupants. Therefore the project would have no impact on occupants with regard to fire risk or pollution exposure from fires.
c) The proposed project would not result in the installation of infrastructure which could increase fire risk. Highway 1 is already served with electrical powerlines and none of Figure 18: CalFire Fire Threat in the City of Fort Bragg Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 95 the other infrastructure listed would be constructed as a consequence of the adoption of the ordinance or eventual subsequent projects.
d) As noted above the City of Fort Bragg is relatively flat, has little or no wildfire risk and there only the ocean is located downstream of the City so there is no impact of threat to downstream populations due to a fire within City limits.

Based on the discussion above there will be no impact on wildfires due to the adoption of the ordinance or any subsequent projects.

The following discussion concerns fire risk more generally.

The City’s Inland General Plan Element 7- Safety has specific policies and programs to reduce fire hazards:

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.

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 identifies that overgrown vegetation causing a fire hazard is subject to abatement requirements and violation penalties in Chapter 6.12 Nuisances.

All commercial/industrial remodel or new construction projects and new occupancies (uses) 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 a specific project meets the City’s Fire Code, California Fire Code, and does not increase the risk of fire in the City.

Due to the special fire risks historically associated with cannabis cultivation the ILUDC amendment includes the fire safety requirements (§18.42.057(C)(4)(a)(ii), see below) for cannabis cultivation as an accessory use within a Cannabis Retail business. This regulation helps to reduce and minimize fire risk in the Central Business District, which includes many wooden structures which have zero lot line setbacks and therefore increased risk of fire transmission from one structure to another. ii. Nursery (non-flowering) cultivation area for on-site sales only.

Fire suppression sprinklers are required in all buildings with onsite nursery cultivation located in commercial districts. Nursery Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 96 cultivation as an accessory use shall also comply with section

18.42.055 Commercial Cannabis Cultivation.

As proposed the ordinance is self-mitigating with respect to fire risk.

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=5bdb921d747a46929 d9f00dbdb6d0fa2
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.

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?
☐ ☐ ☐ ☒
Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 97 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?
☐ ☐ ☐ ☒
a) As noted throughout this ND the proposed project will not have any impact or potential to substantially degrade the environment, reduce habitat or threaten rare and endangered species. All projects that are reviewed under the proposed ordinance would be discretionary and are subject to a subsequent CEQA review for potential impacts.

While some smaller projects may be eligible for a categorical exemption from CEQA, such exemption is only granted if the project has no potential to impact the environment per 15300.2.
b & c) The proposed code amendments make minor modification to City’s codes. All code modifications are designed to directly reduce impacts by Cannabis businesses in the following specific areas as noted in this analysis: odor, lighting, water use, power use and fire risk. These specific regulations reduce the potential impacts of any eventually approved projects on the environment to less than significant or no impact.

Additionally, any future projects must comply with the entirely of the ILUDC and the Municipal Code which together provide the regulatory framework to ensure that all potential environmental impacts are minimized and reduced to no impact or a less than significant impact. If these regulations are adopted, they will apply to all future projects and ensure that the projects are self-mitigating as described in this ND.

The adoption of the proposed ordinance will result in a relatively small amount of new development and new uses related to Cannabis. As noted in the project description.

Negative Declaration & Initial Study for Amendments to the ILUDC to Regulate Cannabis Businesses P a g e | 98  2,000 square feet of accessory non-flowering accessory cultivations to current or future retail cannabis. This estimate is based on one disapproved project that proposed a ~1,000 square foot cultivation of non-flowering plant cultivation for sale on site. Given the small population and the remote location of the City of Fort Bragg, it is unlikely that it would be financially feasible for more than three dispensaries to cultivate and sell non-flowering plants for personal cultivation. Therefore, assuming a maximum of 2,000 square feet of total cultivation as an accessory use is a reasonable assumption.  10,000 square feet of primary use commercial cultivation in industrial zones – Fort Bragg is not ideally situated for large scale industrial use.

Parcels with industrial zoning are largely developed with active businesses. 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 were a cannabis cultivation could be proposed.

However, these vacant parcels are all located north of Fort Bragg and are not served by City water and so have no access to water for agricultural, domestic or firefighting flows. Therefore, there are only one or two sites where cannabis cultivation is likely to occur.

This likely maximum level of development of 12,000 SF of cannabis business in total is not enough development to cause cumulatively significant impacts, especially given the self-mitigating qualities of the ordinance and that all future projects will be subject to discretionary review and will have to comply with the entirety of the ILUDC and the Municipal Code. Therefore, the project will have less than significant Cumulative impacts on the environment and people.

Attachments
Attachment A ORDINANCE AMENDING SECTIONS 18.22.030, 18.24.030,

18.42.055, 18.42.057, 18.42.059 AND 18.100.020 OF TITLE 18 (INLAND LAND USE AND DEVELOPMENT CODE) OF THE FORT

BRAGG MUNICIPAL CODE
Attachment B MCAQMD Adopted Air Quality CEQA Thresholds of Significance Attachment C State of California Department of Cannabis Control Regulations 1 BEFORE THE CITY COUNCIL OF THE CITY OF FORT BRAGG

AN ORDINANCE AMENDING SECTIONS

18.22.030, 18.24.030, 18.42.055,

18.42.057, 18.42.059 AND 18.100.020 OF
TITLE 18 (INLAND LAND USE AND

DEVELOPMENT CODE) OF THE FORT

BRAGG MUNICIPAL CODE
ORDINANCE NO. 979-2022
WHEREAS, the City of Fort Bragg’s (“City”) previously adopted ordinances governing cannabis businesses do not provide regulations for commercial cannabis cultivation; and
WHEREAS, in 1970, Congress enacted the Controlled Substances Act (21 U.S.C. Section 801 et seq.) which, among other things, makes it illegal to import, manufacture, distribute, possess, or use marijuana for any purpose in the United States and further provides criminal penalties for marijuana possession, cultivation and distribution; and
WHEREAS, the People of the State of California have enacted Proposition 215, the Compassionate Use Act of 1996 (codified at Health and Safety Code Section 11362.5 et seq.) (the “CUA”), which exempts qualified patients and their primary caregivers from criminal prosecution under enumerated Health and Safety Code sections for use of marijuana for medical purposes; and WHEREAS, the California Legislature enacted Senate Bill 420 in 2003, the Medical Marijuana Program Act (codified at Health and Safety Code Section 11362.7 et seq.) (the “MMPA”), as amended, which created a state-wide identification card scheme for qualified patients and primary caregivers; and WHEREAS, on October 11, 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, and Assembly Bill 243, collectively referred to as the Medical Cannabis Regulation and Safety Act (MCRSA) formerly known as (the Medical Marijuana Regulation and Safety Act or MMRSA), effective January 1, 2016, which established a state licensing system for medical marijuana cultivation, manufacturing, testing, delivery, and dispensing, regulating these activities with licensing requirements and regulations that are only applicable if cities and counties also permit marijuana cultivation, manufacturing, testing, dispensing, and delivery within their jurisdictions. Under the MCRSA, cities and counties may continue to regulate and/or prohibit medical marijuana cultivation, manufacturing, dispensing, and delivery, consistent with their respective police powers, in which case the new law would not allow or permit these activities within the cities and counties where such activities are not otherwise permitted; and

ATTACHMENT A
WHEREAS, on February 3, 2016, Assembly Bill 21 (Wood) was signed by the Governor, amending provisions of MCRSA pertaining to cultivation licenses by eliminating a March 1, 2016 deadline for local jurisdictions for the promulgation of cultivation regulations or cultivation bans, or local jurisdictions would lose the ability to regulate to the State. Assembly Bill 21 also modified language in Health & Safety Code section 11362.777(g), which pertained to exemptions from licensing requirements for qualified patients and caregivers. The prior language, which specifically stated that local governments retained the right to prohibit cultivation without exception, was revised to state: “Exemption from the requirements of this section does not limit or prevent a city, county, or city and county from exercising its police authority under Section 7 of Article XI of the California Constitution;” and WHEREAS, on November 8, 2016, the electorate of the State of California approved Proposition 64 (“Prop 64”) which enacted the Adult Use of Marijuana Act (“AUMA”), to be codified in California Health and Safety Code at various sections and in California Business and Professions Code at various sections. The AUMA allows adults 21 and over to use, possess, and cultivate limited amounts of marijuana, establishes a state licensing and regulatory scheme for marijuana businesses serving the recreational market; and expressly allows local jurisdictions to prohibit outdoor cultivation of marijuana for personal use, to regulate indoor cultivation of marijuana for personal use, and to prohibit all non-medical and recreational marijuana businesses from locating and operating within their jurisdictions; and WHEREAS, on June 27, 2017, the Governor approved Senate Bill 94 which combined the regulatory schemes for MMRSA and AUMA into a single, comprehensive regulatory scheme known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”); and
WHEREAS, notwithstanding the CUA, MMPA, MMRSA, and MAUCRSA as amended, marijuana remains a schedule I substance pursuant to California Health & Safety Code § 11054 (d) (13); and
WHEREAS, the California Supreme Court has established that neither the CUA nor the MMPA preempt local cannabis regulation in the case of City of Riverside v.

Inland Empire Patients Health and Wellness Center, Inc., 56 Cal.4th 729 (2013); and WHEREAS, on February 25, 2019, the City Council of the City of Fort Bragg (“City Council”) sought to establish rules and regulations by which cannabis businesses may be permitted by considering an ordinance regulating retail, laboratory testing, manufacturing, and distribution cannabis businesses and accessory uses; and WHEREAS, through multiple public meetings, the Public Safety Committee, Fort Bragg Police Department and City staff have received input from citizens and discussed various options for permitting cannabis businesses; and WHEREAS, on November 21, 2019, the City Council of the City of Fort Bragg (“City Council”) adopted Ordinance 953-2019 which established rules and regulations by which cannabis businesses may be permitted; and
WHEREAS, on October 13, 2020, the City Council of the City of Fort Bragg (“City Council”) directed staff to develop regulations on commercial cannabis cultivation; and WHEREAS, the Community Development Committee met on February 23, 2021 and March 23, 2021 to review recommended updates to the Municipal Code and Inland Land Use and Development Code to include cannabis cultivation and receive public input; and
WHEREAS, on May 3, 2021, the City Council of the City of Fort Bragg received public input and directed staff to update the rules and regulations to streamline permitting under the Community Development Department; and
WHEREAS, also on May 3, 2021, the City Council determined that specific regulations and requirements were necessary to allow the commercial cultivation of cannabis cultivation in the City of Fort Bragg; and
WHEREAS, on May 20, 2021, the City Council determined that additional regulations were necessary for conducting retail cannabis activities; and WHEREAS, on September 27, 2021, the City Council put a moratorium on more cannabis businesses to study whether it would be appropriate to amend how the City regulates cannabis dispensaries in the Central Business District; and WHEREAS, on October 25, 2021 and November 8, 2021, the City Council provided direction to staff on zoning and specific land use standards for retail cannabis, commercial cannabis cultivation, and cannabis microbusinesses; and WHEREAS, on December 13, 2021, the City Council provided direction to staff on comprehensive updates to the City’s cannabis regulations including Title 18 (“Inland Land Use and Development Code” of the City’s Municipal Code; and WHEREAS, a Negative Declaration and Initial Study was prepared and was circulated to the public on February 17, 2022.

WHEREAS, on February 23, 2022, and March 9, 2022 the Planning Commission held a duly noticed public hearing to review and make a recommendation on the adoption of the proposed amendments to Title 18 Inland Land Use and Development Code and continued the meeting to a date certain; and
WHEREAS, City Council has determined that Title 18 should be amended to regulate the commercial cannabis activities; and
WHEREAS, the City Council finds that the adoption of this ordinance will not have a significant impact on the environment under the California Environmental Quality Act (CEQA) as a Negative Declaration and Initial Study, that were prepared and circulated to the public on February 17, 2022, pursuant to the California Environmental Quality Act (“CEQA”), found no significant impacts.

NOW, THEREFORE, the City Council ordains as follows:

Section 1. Legislative Findings. The City Council hereby finds as follows:

1. The foregoing recitals are true and correct and are incorporated into this ordinance.

2. Amending Title 18 of the Fort Bragg Municipal Code in the manner described will ensure that cannabis businesses are effectively regulated so that they will not be detrimental to the public interest, health, safety, convenience or welfare of the City.

3. A Negative Declaration and Initial Study was prepared and circulated to the public on February 17, 2022, pursuant to the California Environmental Quality Act (“CEQA”) and the environmental review found no significant impacts.

Section 2. Section 18.22.030 and 18.24.030 (“Inland Land Use and Development Code”) of the Fort Bragg Municipal Code is hereby amended to include the following specific additions and changes:

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

RETAIL TRADE
Cannabis retail & accessory cannabis
uses
— — MUP(3) MUP MUP 18.42.057
Chapter

9.30 Cannabis retail - delivery only — — — MUP MUP 18.42.057 Chapter

9.30 Notes:
(3) The number of permissible Cannabis Retail Businesses in the Central Business District shall be set by resolution of the City Council in an amount not to exceed 3 businesses.

18.24.030 - Industrial District 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
Cannabis – Indoor Cultivation (Nurser and/or,
Mature Plants)
MUP MUP Chapter 9.30 and

18.42.055
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 Cannabis – Retail, Retail Delivery MUP (2) MUP (2) 18.42.057 Chapter 9.30
Notes:
(1) See Article 10 for land use definitions.
(2) Use shall only be allowable as an accessory use to a cannabis business engaged in manufacturing, cultivation and/or distribution.

Section 3. Sections 18.42.055, 18.42.057 and 18.42.059 of the Inland Land Use and Development Code of the Fort Bragg Municipal Code are hereby replaced in their entirety with the following as noted below:

18.42.055 Commercial Cannabis Cultivation
A. Applicability. Where allowed by Article 2 (Zoning Districts and Allowable Land Uses) Commercial Cannabis Cultivation shall comply with the standards of this Section. These standards apply in addition to the other provisions of this Development Code and requirements imposed by Chapter 9.30 of the Municipal Code and any required State licenses prior to operation.

B. Definitions. Definitions of the Commercial Cannabis Cultivation facilities regulated by this Section are in Article 10 (Definitions) under “Cannabis.”
C. Standards for Commercial Cannabis Cultivation. A Minor Use Permit for Commercial Cannabis Cultivation shall be approved, if it complies with the following standards:

1. Additional Permits and Licenses Required. A cannabis cultivation business shall obtain a cannabis business permit subject to Chapter 9.30 of the Municipal Code and any required state licenses prior to operation.

2. Operational requirements. Operational requirements may include project specific conditions of approval, the requirements set forth in Chapter 9.30, and the following operational requirements:
a. 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. b. Visitors. Only employees, managers, owners, and government agency representatives are allowed in non-retail areas of the business. c. Utilities. 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. 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. Electricity must be exclusively provided by a renewable energy source(s), including but not limited to:
1) documented grid power supplied from a 100% renewable source, or 2) on-site renewable energy system.
d. Environmentally Friendly Practices. Cultivation projects shall use environmentally friendly practices, including integrative pest management and waste reduction. e. 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. f. Lighting and Glare. Cultivation projects shall use automatic shades or another equivalent measure to prevent lighting from being visible outside the building.

3. Cannabis Accessory uses to commercial cultivation. Cannabis Retail-Delivery and Cannabis Retail and permissible as accessory uses with Minor Use Permit approval. Other accessory uses may be approved as noted in Table 2.10 of Article 2.

18.42.057 Cannabis Retail
A. Applicability. Where allowed by Article 2 (Zoning Districts and Allowable Land Uses) Cannabis Retail shall comply with the standards of this Section. These standards apply in addition to the other provisions of this Development Code and requirements imposed by Chapter 9.30 of the Municipal Code and any required State licenses prior to operation.

B. Definitions. Definitions of the Cannabis Retail facilities regulated by this Section are in Article 10 (Definitions) under “Cannabis.”
C. Standards for Cannabis Retail. A Minor Use Permit for Cannabis Retail shall be approved if it complies with the following standards:

1. Additional Permits and Licenses 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.

2. Operation Requirements.
a. 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. b. Hours of Operation. Cannabis retail may operate between the hours of 9:00 a.m. to 9:00 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. c. Lighting and Screening. Projects that are on properties adjacent to residential properties shall comply with §18.30.050(F) and §18.30.070. d. On-Site Consumption. The consumption of cannabis at a cannabis retail use or within the parking lot or public right-of-way are prohibited. e. Drive-through services. Drive-through or walk-up window services in conjunction with cannabis retail are prohibited.

3. Location Requirements. In order to avoid the concentration of Cannabis Retail land uses and maintain the downtown commercial character, and compatibility with adjacent residential uses, A cannabis retail business shall not be:
a. Located within 150 feet of a school providing instruction in kindergarten or any grades 1 through 12, a child day care center or facility, a youth center as defined in the State of California Health and Safety Code Section 11353.1(e)(2), or a park. 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,day care facility, and/or park to the closest property line of the lot on which the cannabis business is proposed.

4. Accessory Uses. The primary use of a cannabis retail use shall be to sell products directly to on-site customers.
a. Accessory Uses. The following uses are permissible as accessory uses to Cannabis Retail. More than one accessory use is permissible, however each accessory use shall not exceed the total square footage of the primary use.
i. Office, Retail Delivery, On-Site Distribution, Craft Cannabis Manufacturing – no volatile solvents permitted, Distribution, and Wholesale. ii. Nursery (non-flowering) cultivation area for on-site sales only. Fire suppression sprinklers are required in all buildings with on-site nursery cultivation located in commercial districts. Nursery cultivation as an accessory use shall also comply with section 18.42.055 Commercial Cannabis Cultivation. b. Minor Use Permit. If a permitted cannabis retail use chooses to provide an accessory use or services at a later date, a Minor Use Permit shall be required. c. Accessory Delivery. Sales may also be conducted by delivery, subject to the requirements of Section 18.42.059:

18.42.059 - Cannabis Retail - Delivery Only
A. Applicability. Where allowed by Article 2 (Zoning Districts and Allowable Land Uses) Cannabis RetailDelivery shall comply with the standards of this Section. These standards apply in addition to the other provisions of this Development Code and requirements imposed by Chapter 9.30 of the Municipal Code and any required State licenses prior to operation.

B. Definitions. Definitions of the Cannabis Retail-Delivery facilities regulated by this Section are in Article 10 (Definitions) under “Cannabis.”
C. Standards for Cannabis Retail-Delivery. A Minor Use Permit for Cannabis Retail shall be approved if it complies with the following standards:

D. 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 (section 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.

Section 4. Section 18.100 of the Inland Land Use and Development Code of the Fort Bragg Municipal Code is hereby amended to include the following additional definitions and definition revisions.

18.100.020 - Definitions of Specialized Terms and Phrases Accessory Use. A use that is customarily incidental, related and clearly subordinate 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.

Accessory Use - Cannabis. See Cannabis Accessory Use.

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). Does not include structures for commercial cannabis cultivation (see Cannabis).

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
Cannabis. The following terms and phrases are defined for the purposes of Chapters 18.2 and Chapter

18.4 1. Cannabis. As defined in Municipal Code 9.30.

2. Cannabis Cultivation. The planting, growing, harvesting, and/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 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 Cannabis Accessory uses and Chapter 9.30.

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

5. Craft Cannabis Processing & Manufacturing – small scale, small batch manufacturing by hand, with or without the aid of small tools that may typically be found in other typical commercial businesses, including washing machines, blenders, cooking equipment, nursery tools, etc. Craft Cannabis Manufacturing does not involve volatile chemicals or equipment that is only found in manufacturing companies.

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, 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 made of flexible construction materials, typically pvc pipe or similar material. The ends may be covered or left open and the material covering the structural 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 retail-cannabis 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 non-manufactured 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.

Cannabis Accessory Use. A use that is customarily incidental related and clearly subordinate to the 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. Cannabis Accessory Uses are defined in Title 18.42. More than one accessory use is permissible, however each accessory use shall not exceed the total square footage of the primary use.

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.

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.

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 pre-recorded,
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 by-products
 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
 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”).

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.

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.

Section 5. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council of the City of Fort Bragg hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional.

Section 6. Effective Date and Publication. This ordinance shall be and the same is hereby declared to be in full force and effect from and after thirty (30) days after the date of its passage. Within fifteen (15) days after the passage of this Ordinance, the City Clerk shall cause a summary of said Ordinance to be published as provided in Government Code §36933, in a newspaper of general circulation published and circulated in the City of Fort Bragg, along with the names of the City Council voting for and against its passage.

The foregoing Ordinance was introduced by at a regular meeting of the City Council of the City of Fort Bragg held on and adopted at a regular meeting of the City of Fort Bragg held on by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:
____________________________________

BERNIE NORVELL
Mayor
ATTEST:
______________________________________
June Lemos, CMC
City Clerk
PUBLISH: date XX, 2022 and date XX, 2022 (by summary).

EFFECTIVE DATE: Date XX, 2022.

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 B
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 C
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.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26110, Business and Professions Code.
§15302. Storage of Batches for Testing.
(a) A licensed distributor shall ensure that all batches of cannabis or cannabis products are stored separately and distinctly from other batches of cannabis or cannabis products on the licensed distributor’s premises.
(b) A licensed distributor shall ensure a label with the following information is physically attached to each container of each batch:
(1) The name, license number, and licensed premises address of the licensee who provided the batch;
(2) The date of entry into the licensed distributor’s storage area; (3) The unique identifiers and batch number, if any, associated with the batch; (4) A description of the cannabis or cannabis products with enough detail to easily identify the batch;
(5) The weight of or quantity of units in the batch; and (6) The best-by, sell-by, or expiration date of the batch, if any.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26110 and 26120, Business and Professions Code.
§15303. Packaging, Labeling, and Rolling.
(a) A licensed distributor may package, re-package, label, and re-label cannabis in the form of dried flower, including pre-rolls, for retail sale. All packages of cannabis in the form of dried flower, including pre-rolls, shall comply with the requirements in chapter 11 of this division.
(b) A licensed distributor shall not process cannabis, but may roll pre-rolls that consist exclusively of any combination of flower, shake, leaf, or kief. Pre-rolls shall be rolled prior to regulatory compliance testing.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 86 of 216 (c) Licensed distributors may label and re-label a package containing manufactured cannabis or cannabis products with the amount of cannabinoids and terpenoids based on regulatory compliance testing results.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26120, Business and Professions Code.
§15303.1. Net Weight of Dried Flower.

For purposes of this division, the net weight on any package of dried flower shall not be considered inaccurate if the actual weight is within plus or minus 3% of the labeled weight.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26120 and 26152, Business and Professions Code.
§15304. Testing Arrangements.

After taking physical possession of a batch of cannabis or cannabis products, the licensed distributor shall contact a licensed testing laboratory and arrange for a laboratory employee to come to the licensed distributor’s licensed premises to select a representative sample for laboratory testing.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26104 and 26110, Business and Professions Code.
§15305. Testing Sample.
(a) The licensed distributor shall ensure that the batch size from which the sample is taken meets the requirements of this division.
(b) A licensed distributor or an employee of the licensed distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis or cannabis products for testing and shall ensure that the increments are taken from throughout the batch.
(c) The sampling shall be video-recorded with the batch number stated verbally or in writing on the video at the beginning of the video and a visible time and date indication on the video recording footage. The video recordings shall be maintained for 90 calendar days by the licensed distributor.
(d) After the sample has been selected, both the licensed distributor and the laboratory employee shall sign and date the chain of custody form pursuant to section 15706, attesting to the sample selection having occurred.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 87 of 216 (e) A licensed distributor shall not assist the laboratory employee nor touch the cannabis or cannabis products or the sampling equipment while the laboratory employee is obtaining the sample.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26104 and 26110, Business and Professions Code.
§15305.1. Re-sampling.

Once a sample has been obtained from a batch for regulatory compliance testing, a licensed distributor may not arrange for or allow another licensed testing laboratory to sample or re- sample the same batch for regulatory compliance testing, unless all of the requirements of section 15705 subsection (g) of this division are met.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
§15306. Laboratory Testing Results.
(a) A sample batch “passes” a laboratory test when the sample meets specifications in chapter 6 of this division.
(b) When a batch from a manufactured or harvest batch passes, the cannabis or cannabis products may be transported to one or more licensed retailers, licensed distributors, or licensed microbusinesses. A printed copy of the certificate of analysis for regulatory compliance testing shall accompany the batch and be provided to the licensee receiving the cannabis or cannabis products.
(c) A batch “fails” a laboratory test when the sample does not meet specifications in chapter 6 of this division.
(d) If a failed batch may be remediated pursuant to section 15727, a licensed distributor may transport or arrange for the transportation of the batch to a licensed manufacturer for remediation in accordance with the following:
(1) The licensed distributor shall ensure that a corrective action plan is submitted by a licensed manufacturer to the Department, or by a licensed microbusiness authorized to engage in manufacturing to the Department, within 30 calendar days of issuance of the certificate of analysis for regulatory compliance testing by the licensed testing laboratory. (2) The licensed distributor shall ensure that the licensed manufacturer or licensed microbusiness authorized to engage in manufacturing begins remediating the cannabis or cannabis products within 30 calendar days of receiving approval from the Department to remediate the cannabis or cannabis products.
(3) If the licensed distributor is unable to arrange for a licensed manufacturer or licensed microbusiness authorized to engage in manufacturing to remediate the cannabis or cannabis products within 30 calendar days of issuance of the certificate of analysis for regulatory compliance testing by the licensed testing laboratory, the licensed distributor shall destroy the cannabis or cannabis products immediately.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 88 of 216 (e) A licensed distributor shall destroy a batch that failed laboratory testing and cannot be remediated pursuant to section 15727 within 30 calendar days of issuance of the certificate of analysis for regulatory compliance testing by the licensed testing laboratory.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26100, 26104 and 26110, Business and Professions Code.
§15307. Quality-Assurance Review.

When a licensed distributor receives a certificate of analysis for regulatory compliance testing from the licensed testing laboratory or upon transfer from another licensed distributor stating that the batch meets specifications required by law, the licensed distributor shall ensure the following before transporting the cannabis goods to one or more licensed retailers or licensed microbusinesses authorized to engage in retail sales:
(a) The certificate of analysis for regulatory compliance testing that the licensed distributor received from the licensed testing laboratory or another licensed distributor is the certificate of analysis that corresponds to the batch;
(b) The date on the certificate of analysis for the regulatory compliance testing is less than 12 months old;
(c) The label on the cannabis goods is consistent with the certificate of analysis for regulatory compliance testing regarding cannabinoid content required to be listed by law as follows:
(1) If the cannabis goods are labeled with the content for cannabinoids, terpenoids, Total THC, and/or Total CBD prior to receiving the certificate of analysis for regulatory compliance testing, the licensed distributor shall ensure that the labeled amounts are accurate in accordance with section 15307.1, and
(2) If the cannabis goods are not labeled with the content for cannabinoids, terpenoids, Total THC, and/or Total CBD prior to receiving the certificate of analysis for regulatory compliance testing, the licensed distributor shall label the cannabis goods with the amounts listed on the certificate of analysis pursuant to section 15303; (d) The packaging and labeling of the cannabis goods complies with Business and Professions Code section 26120 and this division, except cannabis goods are not required to be labeled or otherwise identified as medicinal products prior to retail sale unless the cannabis goods must be labeled as such pursuant to this division; (e) The cannabis goods have not exceeded their expiration or sell-by date if one is provided;
(f) The weight or count of the batch comports with that in the track and trace system. A licensed distributor shall use scales as required by this division; and (g) All events prior to receipt of the certificate of analysis for regulatory compliance testing have been entered into the track and trace system.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26110 and 26120, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 89 of 216 §15307.1. Quality-Assurance Review for Labeling Cannabinoids and Terpenoids. (a) For purposes of this division, any one cannabinoid, Total THC, and/or Total CBD claimed to be present on a label shall not be considered inaccurate if the difference in percentage on the certificate of analysis is plus or minus 10.0%. (b) For purposes of this division, the terpenoid testing results on the label of any one terpenoid claimed to be present shall not be considered inaccurate if the difference in percentage on the certificate of analysis is plus or minus 10.0%. (c) For purposes of this section, the difference in percent shall be calculated using the following equation:

Difference in percent = │(laboratory measurement – label claim) │/ (label claim) x 100% For purposes of this section, Total THC and Total CBD shall have the same meaning as defined in Chapter 6 of this division.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and 26110, Business and Professions Code.
§15307.2. Licensed Distributor to Licensed Distributor Transfers.

Cannabis goods, packaged as they will be sold at retail, that have undergone and passed regulatory compliance testing and have an accompanying certificate of analysis may be transferred to one or more licensed distributors. However, cannabis goods that have not been transported to retail within 12 months of the date on the certificate of analysis must be destroyed or retested by the licensed distributor in possession of the cannabis goods.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26110, Business and Professions Code.
§15308. Insurance Requirements.
(a) A distributor licensee shall at all times carry and maintain commercial general liability insurance in the aggregate in an amount no less than $2,000,000 and in an amount no less than $1,000,000 for each loss.
(b) A distributor licensee shall maintain the insurance required in subsection (a) from an insurance company that is:
(1) A non-admitted insurer that meets the requirements of Insurance Code section 1765.1 or 1765.2, and the insurance is placed pursuant to Insurance Code section 1763 and through a surplus line broker licensed under Insurance Code section 1765; (2) An insurer qualified to do business in California by the Secretary of State and authorized by the Insurance Commissioner to write the liability and property classes of insurance as defined by Insurance Code sections 102, 103, 107, 108, 114, and 120; or (3) A registered risk retention group compliant with the California Risk Retention Act of 1991. (See Insurance Code sections 125-140.)
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 90 of 216 (c) Admitted insurers and risk retention groups must show proof of capitalization in the amount of at least $10,000,000.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26051.5 and 26070, Business and Professions Code.
§15309. Inventory Accounting.
(a) A licensed distributor shall be able to account for all inventory and provide that information to the Department upon request.
(b) To account for inventory, a licensed distributor shall ensure all batches of cannabis or cannabis products are stored in accordance with section 15302 and shall be able to provide the Department with the status of the batch as follows:
(1) The batch is being held in storage for another licensee; (2) The batch is awaiting sampling for regulatory compliance testing; (3) The batch has been sampled and is awaiting testing results; (4) The batch has passed testing;
(5) The batch has failed testing and is awaiting approval for remediation; (6) The batch has failed testing and is awaiting destruction; and (7) The batch is being stored or held for any other lawful purpose under the Act or this division.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26160, Business and Professions Code.
§ 15311. Requirements for the Transportation of Cannabis Goods.

The following requirements apply when transporting cannabis goods between licensees or licensed premises:
(a) Transportation shall only be conducted by persons holding a distributor license under the Act, or employees of those persons. All vehicles and trailers used for transportation shall be owned or leased, in accordance with the Vehicle Code, by the licensee. (b) Prior to transporting any cannabis goods, the licensed distributor shall have a completed sales invoice or receipt that meets the requirements of Business and Professions Code section 26161. The licensed distributor shall only transport cannabis goods listed on the sales invoice or receipt. The sales invoice or receipt may not be altered or changed once transport begins.
(c) A licensed distributor employee shall always carry a copy of the distributor’s license and a copy of the QR Code Certificate issued by the Department while engaging in the transportation of cannabis goods. The QR Code Certificate shall comply with the requirements of section 15039, subsection (d) of this division. (d) All vehicles transporting cannabis goods for hire shall be required to have a motor Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 91 of 216 carrier permit pursuant to Chapter 2 (commencing with Section 34620) of Division 14.85 of the Vehicle Code.
(e) Transportation by means of aircraft, watercraft, drone, rail, human powered vehicle, or unmanned vehicle is prohibited.
(f) Cannabis goods shall only be transported inside of a vehicle or trailer and shall not be visible or identifiable from outside of the vehicle or trailer. (g) Cannabis goods shall be locked in a fully enclosed box, container, or cage that is secured to the inside of the vehicle or trailer. No portion of the enclosed box, container, or cage shall be comprised of any part of the body of the vehicle or trailer. For the purposes of this section, the inside of the vehicle includes the trunk. (h) While left unattended, vehicles and trailers shall be locked and secured. (i) A licensed distributor shall not leave a vehicle or trailer containing cannabis goods unattended in a residential area or parked overnight in a residential area. (j) At a minimum, a licensed distributor shall have a vehicle alarm system on all transport vehicles and trailers. Motion detectors, pressure switches, duress, panic, and hold-up alarms may also be used.
(k) Packages or containers holding cannabis goods shall not be tampered with, or opened, during transport.
(l) A licensed distributor transporting cannabis goods shall only travel between licensees shipping or receiving cannabis goods and its own licensed premises when engaged in the transportation of cannabis goods. The licensed distributor may transport multiple shipments of cannabis goods at once in accordance with applicable laws. A licensed distributor shall not deviate from the travel requirements described in this section, except for necessary rest, fuel, or vehicle repair stops.
(m) Under no circumstances may non-cannabis goods, except for cannabis accessories and licensees’ branded merchandise or promotional materials, be transported with cannabis goods.
(n) Vehicles and trailers transporting cannabis goods are subject to inspection by the Department at any licensed premises or during transport at any time. (o) Notwithstanding subsections (e) through (g) of this section, if it is not operationally feasible to transport cannabis goods inside of a vehicle or trailer because the licensed premises that the cannabis goods will be transported from and the licensed premises that will be receiving the cannabis goods are located within the same building or on the same parcel of land, the cannabis goods may be transported by foot, hand truck, fork lift, or other similar means. A shipping manifest that complies with this division is required when transporting cannabis goods pursuant to this subsection.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 92 of 216 (p) Notwithstanding subsection (e) of this section, transportation of cannabis goods may be conducted via waterway to licensees located on Catalina Island. The provisions of this section and other sections regarding vehicle requirements also apply to vessels used to transport cannabis goods via waterway pursuant to this section.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15312. Required Transport Vehicle Information.
(a) Upon request, the licensed distributor shall provide the Department with a copy of the certificate of ownership or registration card issued by the California Department of Motor Vehicles, the year, make, model, license plate number, and Vehicle Identification Number in writing, and proof of insurance for any vehicle or trailer used to transport cannabis or cannabis products.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15313. Transport Personnel Requirements.
(a) No person under the age of 21 years old shall be in a commercial vehicle or trailer transporting cannabis or cannabis products; and
(b) Only a licensee, an employee of the licensed distributor, or security personnel who meets the requirements of section 15045 of this division shall be in a vehicle while transporting cannabis or cannabis products.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15314. Shipping Manifest.
(a) Prior to transporting cannabis or cannabis products, a licensed distributor shall generate a shipping manifest through the track and trace system for the following activities:
(1) Testing and sampling;
(2) Sale of cannabis or cannabis products to a licensee; (3) Destruction or disposal of cannabis or cannabis products; and (4) Any other activity, as required pursuant to this division, or by the Department. (b) The licensed distributor shall transmit the shipping manifest to the Department and the licensee that will receive the cannabis or cannabis products prior to transporting the cannabis or cannabis products.
(c) The licensed distributor shall ensure and verify that the cannabis or cannabis products being taken into possession for transport at the originating licensed premises are as described and accurately reflected in the shipping manifest. For purposes of this Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 93 of 216 section, the licensed distributor may verify that the cannabis or cannabis products are accurately reflected in the shipping manifest by confirming that the number of boxes of cannabis or cannabis products, type of cannabis or cannabis products, weight and/or units of cannabis or cannabis products matches the label on the boxes containing the cannabis or cannabis products.
(1) The licensed distributor shall not take into possession or transport:
(A) Any cannabis or cannabis products that are not on the shipping manifest; or (B) Any cannabis or cannabis products that are less than or greater than the amount reflected on the shipping manifest.
(2) The licensed distributor is responsible for any discrepancies between the shipping manifest and the cannabis or cannabis products in its possession during transport, and subject to any enforcement or disciplinary action related to such discrepancy. (3) A licensed distributor shall not void or change a shipping manifest after departing from the originating licensed premises.
(d) A shipping manifest shall accompany every transport of cannabis or cannabis products.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26067 and 26070, Business and Professions Code.
§15315. Distributor Transport Only License.
(a) A licensed distributor transport only licensee may transport cannabis or cannabis products between licensees; however, they shall not transport any cannabis or cannabis products except for immature cannabis plants, seeds, and trade samples to a licensed retailer or licensed microbusiness authorized to engage in retail sales. (b) A complete application for a distributor transport only license shall include all the information required in an application for a distributor license. (c) The licensing fee for a distributor transport only license will be based in part upon whether the licensee intends to transport only cannabis or cannabis products that the licensee has cultivated or manufactured (self-distribution), or whether the licensee intends to transport cannabis or cannabis products cultivated or manufactured by other licensees.
(d) A distributor transport only licensee shall comply with all of the requirements for a holder of a distributor license, except for those related to quality assurance and testing. (e) A distributor transport only licensee shall not hold title to any cannabis or cannabis products unless the licensee also holds a Department-issued cultivation, manufacturing, retailer, or microbusiness license.
(f) Holding a distributor transport only license shall not authorize a licensee to:
(1) Engage in the delivery of cannabis or cannabis products as defined in Business and Professions Code section 26001(o);
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 94 of 216 (2) Engage in the wholesale, destruction, packaging, labeling, or storing of cannabis or cannabis products; or
(3) Arrange for the testing of cannabis or cannabis products by a testing laboratory. (g) A distributor transport only licensee who is licensed to engage in self-distribution and whose licensed premises will be on the same property as their licensed cultivation or licensed manufacturing premises shall comply with the security provisions contained in chapter 1, article 5 of this division that are applicable to their licensed cultivation or licensed manufacturing premises.

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

Chapter 3. Retailers
§15400. Access to Retailer Premises.
(a) Access to the licensed premises of a retailer with only an A-designation shall be limited to individuals who are at least 21 years of age. (b) Access to the licensed premises of a retailer with only an M-designation shall be limited to individuals who are at least 18 years of age and have a valid physician’s recommendation for medicinal cannabis, and individuals who are at least 21 years of age.
(c) Access to the licensed premises of a retailer with both an A- designation and an Mdesignation may include persons identified in subsections (a) and (b) of this section.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26140, Business and Professions Code.
§15402. Customer Access to the Retail Area.
(a) Individuals shall be granted access to the retail area to purchase cannabis goods only after the retailer or an employee of the retailer has confirmed the individual’s age and identity pursuant to section 15404 of this division.
(b) The licensed retailer or at least one employee shall be physically present in the retail area at all times when individuals who are not employees of the licensed retailer are in the retail area.
(c) All sales of cannabis goods must take place within the retail area of the retailer’s licensed premises, except for cannabis goods sold through delivery, or a drive-in or drive-through window as authorized by section 15025(e) of this division.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26140, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 95 of 216 §15403. Hours of Operation.

A licensed retailer shall sell and deliver cannabis goods only between the hours of 6:00 a.m. Pacific Time and 10:00 p.m. Pacific Time.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15403.1. Requirements While Not Open for Business.

At any time the licensed premises is not open for retail sales, a licensed retailer shall ensure that:
(a) The licensed premises is securely locked with commercial-grade, nonresidential door locks as required in section 15046 of this division;
(b) The licensed premises is equipped with an active alarm system pursuant to section 15047 of this division, which shall be activated when the licensed retailer or its employees are not on the licensed premises; and
(c) Only employees of the licensee and other authorized individuals are allowed access to the licensed premises. For the purposes of this section, authorized individuals include individuals employed by the licensee as well as any outside vendors, contractors, or other individuals conducting business that requires access to the licensed premises.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15404. Retail Customers.
(a) A licensed retailer shall only sell adult-use cannabis goods to individuals who are at least 21 years of age after confirming the customer’s age and identity by inspecting a valid form of identification provided by the customer as required by subsection (c) of this section.
(b) A licensed retailer shall only sell medicinal cannabis goods to individuals who are at least 18 years of age and possesses a valid physician’s recommendation after confirming the customer’s age, identity, and physician’s recommendation as required by subsection (c) of this section.
(c) Acceptable forms of identification include the following:
(1) A document issued by a federal, state, county, or municipal government, or a political subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, height, gender, and photo of the person;
(2) A valid identification card issued to a member of the Armed Forces that includes the person’s name, date of birth, and photo; or
Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 96 of 216 (3) A valid passport issued by the United States or by a foreign government.

Authority: Section 26013, Business and Professions Code. Reference: Section 26140, Business and Professions Code.
§15405. Cannabis Goods Display.
(a) Cannabis goods for inspection and sale shall only be displayed in the retail area. (b) Cannabis goods may be removed from their packaging and placed in containers to allow for customer inspection. The containers shall not be readily accessible to customers without assistance of retailer personnel. A container must be provided to the customer by the licensed retailer or its employees, who shall remain with the customer at all times that the container is being inspected by the customer. (c) Cannabis goods removed from their packaging for display shall not be sold or consumed when the cannabis goods are no longer used for display.

Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
§15406. Cannabis Goods for Sale.

A licensed retailer shall not make any cannabis goods available for sale or delivery to a customer unless:
(a) The cannabis goods were received by the licensed retailer from a licensed distributor or licensed microbusiness authorized to engage in distribution; (b) The licensed retailer has verified that the cannabis goods have not exceeded their best-by, sell-by, or expiration date if one is provided; (c) In the case of manufactured cannabis products, the product complies with all requirements of Business and Professions Code section 26130; (d) The cannabis goods have undergone laboratory testing as required by the Act and chapter 6 of this division;
(e) The batch number, if any, is labeled on the package of cannabis goods and matches the batch number on the corresponding certificate of analysis for regulatory compliance testing;
(f) The packaging and labeling of the cannabis goods complies with Business and Professions Code section 26120 and this division; and
(g) The cannabis goods comply with all applicable requirements found in the Act and this division.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26120, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 97 of 216 §15407. Sale of Non-Cannabis Goods.

In addition to cannabis goods, a licensed retailer may sell only cannabis accessories and the branded merchandise of any licensee. Licensed retailers may provide customers with promotional materials.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26151 and 26152, Business and Professions Code.
§15408. Sale of Live Plants and Seeds.
(a) A licensed retailer shall only sell live, immature cannabis plants and cannabis seeds if all of the following requirements are met:
(1) The plant is not flowering and is shorter and narrower than 18 inches; and (2) The plant or seed originated from a licensed nursery that holds a valid license from the Department or a licensed microbusiness authorized to engage in cultivation. (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.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26100, Business and Professions Code.
§15409. Daily Limits.
(a) A licensed retailer shall not sell more than the following amounts to a single adult-use cannabis customer in a single day:
(1) 28.5 grams of non-concentrated cannabis.
(2) 8 grams of cannabis concentrate as defined in Business and Professions Code section 26001, including cannabis concentrate contained in cannabis products. (3) 6 immature cannabis plants.
(b) A licensed retailer shall not sell more than the following amounts to a single medicinal cannabis patient, or to a patient’s primary caregiver purchasing medicinal cannabis on behalf of the patient, in a single day:
(1) 8 ounces of medicinal cannabis in the form of dried mature flowers or the plant conversion as provided in Health and Safety Code section 11362.77. (2) 12 immature cannabis plants.
(c) Notwithstanding subsection (b) of this section, if a medicinal cannabis patient’s valid physician’s recommendation contains a different amount than the limits listed in this section, the medicinal cannabis patient may purchase an amount of medicinal cannabis consistent with the patient’s needs as recommended by a physician and documented in the physician’s recommendation.
(d) The limits provided in subsection (a) and subsection (b) of this section shall not be combined to allow a customer to purchase cannabis goods in excess of any of the limits Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 98 of 216 provided in this section.
(e) For the purposes of this section, a licensed retailer shall be responsible for determining that the amount of cannabis concentrates found in manufactured cannabis products sold to customers comply with the requirements of this section.

Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code; and Sections 11362.1 and 11362.77, Health and Safety Code.
§15410. Customer Return of Cannabis Goods.
(a) For the purposes of this section, “customer return” means a customer’s return of cannabis goods that were purchased from a licensed retailer, back to the licensed retailer from whom the cannabis goods were purchased.
(b) A licensed retailer may accept customer returns of cannabis goods that were previously sold to a customer.
(c) A licensed retailer shall not resell cannabis goods that have been returned. (d) A licensed retailer shall treat any cannabis goods abandoned on the licensed retailer premises as a customer return.
(e) Defective manufactured cannabis products returned by customers to a licensed retailer may be destroyed or returned to the licensed distributor from whom the cannabis goods were obtained.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5, 26012 and 26070, Business and Professions Code.
§15411. Free Cannabis Goods.
(a) A licensed retailer shall not provide free cannabis goods to any person. A licensed retailer shall not allow individuals who are not employed by the licensed retailer to provide free cannabis goods to any person on the licensed premises. (b) Notwithstanding subsection (a), in order to provide access to medicinal cannabis patients who have difficulty accessing medicinal cannabis goods, a licensee who holds an M-Retailer license, an M-Retailer Non-storefront license, or an M-Microbusiness license that is authorized for retail sales may provide free medicinal cannabis goods if the following criteria are met:
(1) Free cannabis goods are provided only to a medicinal cannabis patient or primary caregiver for the patient in possession of an identification card issued under section 11362.71 of the Health and Safety Code.
(2) The cannabis goods comply with all applicable laboratory testing requirements under this division.
(3) Prior to being provided to the patient or primary caregiver, the cannabis goods have been properly recorded in the track and trace system as belonging to the licensed Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 99 of 216 retailer.
(4) The cannabis goods shall not leave the licensed premises unless placed in an opaque package as required for purchased cannabis goods under Business and Professions Code section 26070.1. The cannabis goods must comply with all packaging and labeling requirements in this division applicable to cannabis goods for sale by a licensed retailer.
(5) The cannabis goods shall be applied toward the daily purchase limit for a medicinal cannabis customer pursuant to section 15409.
(6) The event shall be properly recorded in the licensed retailer’s inventory records and the track and trace system.
(c) In addition to the provision of free cannabis goods in subsection (b), a licensee may donate cannabis goods and the use of equipment in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction. The licensee shall ensure that all cannabis goods provided pursuant to this subsection comply with subsections (b)(2) and (b)(6).

Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26153 and 26160, Business and Professions Code.
§15412. Prohibition on Packaging and Labeling by a Retailer. (a) A licensed retailer shall not accept, possess, or sell cannabis goods that are not packaged as they will be sold at final sale, in compliance with this division. (b) A licensed retailer shall not package or label cannabis goods. (c) Notwithstanding subsection (b) of this section, a licensed retailer may place a barcode or similar sticker on the packaging of cannabis goods to be used in inventory tracking. A barcode or similar sticker placed on the packaging of a cannabis goods shall not obscure any labels required by the Act or this division.

Authority: Section 26013, Business and Professions Code. Reference: Section 26120, Business and Professions Code.
§15413. Cannabis Goods Packaging and Exit Packaging.
(a) All cannabis goods sold by a licensed retailer shall be in compliance with the packaging requirements in chapter 11 of this division.
(b) A package containing cannabis goods shall be tamper-evident and child-resistant. If the package contains multiple servings, the package must also be resealable. (c) All cannabis goods purchased by a customer shall not leave the licensed retailer’s premises unless the goods are placed in an opaque exit package.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 100 of 216 (d) Immature plants and seeds sold by a licensed retailer are not required to be placed in resealable, tamper-evident, child-resistant packaging.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070.1 and 26120, Business and Professions Code.
§15414. Non-Storefront Retailer.
(a) A non-storefront retailer licensee shall be authorized to conduct retail sales exclusively by delivery as defined in Business and Professions Code section 26001(o). (b) A complete application for a non-storefront retailer license shall include all the information required in an application for a retailer license. (c) A non-storefront retailer licensee shall comply with all the requirements applicable to retailer licensees, except for those provisions related to public access to the licensed premises and the retail area.
(d) The licensed premises of a non-storefront retailer licensee shall be closed to the public.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26070, Business and Professions Code.
§ 15415. Delivery Employees.
(a) All deliveries of cannabis goods shall be performed by a delivery employee who is directly employed by a licensed retailer.
(b) Each delivery employee of a licensed retailer shall be at least 21 years of age. (c) All deliveries of cannabis goods shall be made in person. A delivery of cannabis goods shall not be made through the use of an unmanned vehicle. (d) The process of delivery begins when the delivery employee leaves the retailer’s licensed premises with the cannabis goods for delivery. The process of delivering ends when the delivery employee returns to the retailer’s licensed premises after delivering the cannabis goods, or attempting to deliver cannabis goods, to the customer(s). During the process of delivery, the licensed retailer’s delivery employee may not engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops.
(e) A delivery employee of a licensed retailer shall, during deliveries, carry a copy of the retailer’s current license, a copy of the QR Code Certificate issued by the Department, which complies with section 15039, subsection (d) of this division, the employee’s government-issued identification, and an identification badge provided by the employer pursuant to section 15043 of this division. A delivery employee shall provide a copy of the retail license, a copy of the QR Code Certificate, and their employee identification badge to a delivery customer upon request.
(f) Prior to providing cannabis goods to a delivery customer, a delivery employee shall confirm the identity and age of the delivery customer as required by section 15404 of this Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 101 of 216 division and ensure that all cannabis goods sold comply with requirements of section 15413 of this division.
(g) A licensed retailer shall maintain an accurate list of the retailer’s delivery employees and shall provide the list to the Department upon request.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15415.1. Deliveries Facilitated by Technology Platforms. (a) A licensed retailer or licensed microbusiness shall not sell or otherwise transfer any cannabis goods to a customer through the use of an unlicensed third party, intermediary business, broker, or any other business or entity.
(b) Notwithstanding subsection (a) of this section, a licensed retailer or licensed microbusiness may contract with a service that provides a technology platform to facilitate the sale and delivery of cannabis goods, in accordance with all of the following:
(1) The licensed retailer or licensed microbusiness does not allow for delivery of cannabis goods by the technology platform service provider. (2) The licensed retailer or licensed microbusiness does not share in the profits of the sale of cannabis goods with the technology platform service provider, or otherwise provide for a percentage or portion of the cannabis goods sales to the technology platform service provider.
(3) The licensed retailer or licensed microbusiness shall not advertise or market cannabis goods in conjunction with the technology platform service provider, outside of the technology platform, and shall ensure that the technology platform service provider does not use the licensed retailer’s or licensed microbusiness’s license number or legal business name on any advertisement or marketing that primarily promotes the services of the technology platform.
(4) The licensed retailer or licensed microbusiness shall ensure the following information is provided to customers:
(A) Any cannabis goods advertised or offered for sale on or through the technology platform shall disclose, at a minimum, the licensed retailer’s or licensed microbusiness’s legal business name and license number.
(B) Customers placing an order for cannabis goods through the technology platform shall be able to easily identify the licensed retailer or licensed microbusiness that each cannabis good is being ordered or purchased from. This information shall be available to the customer prior to the customer placing an order or purchasing the cannabis goods. (5) All required sales invoices and receipts, including any receipts provided to the customer, shall disclose, at a minimum, the licensed retailer’s or licensed microbusiness’s legal business name and license number.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 102 of 216 (6) All other delivery, marketing, and advertising requirements under this division are complied with.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26001, 26070, 26090, 26151 and 26152, Business and Professions Code. §15416. Delivery to a Physical Address.
(a) A delivery employee may only deliver cannabis goods to a physical address in California.
(b) A delivery employee shall not leave the State of California while possessing cannabis goods.
(c) A delivery employee shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.

This prohibition applies to land held in trust by the United States for a tribe or an individual tribal member unless the delivery is authorized by and consistent with applicable tribal law.
(d) A delivery employee may deliver to any jurisdiction within the State of California provided that such delivery is conducted in compliance with all delivery provisions of this division.
(e) A delivery employee shall not deliver cannabis goods to a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15417. Delivery Vehicle Requirements.
(a) A licensed retailer’s delivery employee, carrying cannabis goods for delivery, shall only travel in an enclosed motor vehicle. Any vehicle used in the delivery of cannabis goods shall be operated by a delivery employee of the licensee. A vehicle used in the delivery of cannabis goods shall not have any marking or other indications on the exterior of the vehicle that may indicate that the delivery employee is carrying cannabis goods for delivery. Only the licensee or an employee of the retailer licensee for whom delivery is being performed shall be in the delivery vehicle.
(b) While carrying cannabis goods for delivery, a licensed retailer’s delivery employee shall ensure the cannabis goods are not visible to the public. Cannabis goods shall be locked in a fully enclosed box, container, or cage that is secured on the inside of the vehicle. No portion of the enclosed box, container, or cage shall be comprised of any part of the body of the vehicle or trailer. For purposes of this section, the inside of the vehicle includes the trunk.
(c) A licensed retailer’s delivery employee shall not leave cannabis goods in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system. Any cannabis goods left in an unattended vehicle must be stored Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 103 of 216 in a container as required in subsection (b) of this section. (d) A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee while engaged in delivery. A dedicated GPS device must be owned by the licensee and used for delivery only. The device shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active and inside of the delivery vehicle at all times during delivery. At all times, the licensed retailer shall be able to identify the geographic location of all delivery vehicles that are making deliveries for the licensed retailer and document the history of all locations traveled to by a delivery employee while engaged in delivery. A licensed retailer shall provide this information to the Department upon request. The history of all locations traveled to by a delivery employee while engaging in delivery shall be maintained by the licensee for a minimum of 90 days.
(e) Upon request, a licensed retailer shall provide the Department with information regarding any motor vehicle used for the delivery of cannabis goods, including the vehicle’s make, model, color, Vehicle Identification Number, license plate number and Department of Motor Vehicles registration information.
(f) Any motor vehicle used by a licensed retailer to deliver cannabis goods is subject to inspection by the Department. Vehicles used to deliver cannabis goods may be stopped and inspected by the Department at any licensed premises or during delivery.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15418. Cannabis Goods Carried During Delivery.
(a) A licensed retailer’s delivery employee shall not carry cannabis goods in the delivery vehicle with a value in excess of $5,000 at any time. The value of cannabis goods carried in the delivery vehicle for which a delivery order was not received and processed by the licensed retailer prior to the delivery employee departing from the licensed premises may not exceed $3,000.
(b) For the purposes of this section, the value of cannabis goods shall be determined using the current retail price of all cannabis goods carried by, or within the delivery vehicle of, the licensed retailer’s delivery employee.
(c) A delivery employee may only carry cannabis goods, cannabis accessories, branded merchandise of any licensee, or promotional materials in the delivery vehicle and may only perform deliveries for one licensed retailer at a time. A delivery employee must depart and return to the same licensed premises before taking possession of any cannabis goods from another licensee to perform deliveries. (d) A licensed retailer’s delivery employee shall not leave the licensed premises with cannabis goods without at least one delivery order that has already been received and processed by the licensed retailer.
(e) Before leaving the licensed premises, the licensed retailer’s delivery driver must have Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 104 of 216 a delivery inventory ledger of all cannabis goods provided to the licensed retailer’s delivery driver. For each cannabis good, the delivery inventory ledger shall include the type of good, the brand, the retail value, the track and trace identifier, and the weight, volume or other accurate measure of the cannabis good. All cannabis goods prepared for an order that was received and processed by the licensed retailer prior to the delivery driver’s departure from the licensed premises must be clearly identified on the inventory ledger. After each customer delivery, the delivery inventory ledger must be updated to reflect the current inventory in possession of the licensed retailer’s delivery driver.

Delivery inventory ledgers may be maintained electronically. (f) The licensed retailer’s delivery driver shall maintain a log that includes all stops from the time the licensed retailer’s delivery driver leaves the licensed premises to the time that the licensed retailer’s delivery driver returns to the licensed premises, and the reason for each stop. The log shall be turned in to the licensed retailer when the licensed retailer’s delivery driver returns to the licensed premises. The licensed retailer must maintain the log as a commercial cannabis activity record as required by this division.

The log may be maintained electronically.
(g) Prior to arrival at any delivery location, the licensed retailer must have received a delivery request from the customer and provided the delivery request receipt to the licensed retailer’s delivery driver electronically or in hard copy. The delivery request receipt provided to the licensed retailer’s delivery driver shall contain all of the information required in section 15420, except for the date and time the delivery was made, and the signature of the customer.
(h) Immediately upon request by the Department or any law enforcement officer, the licensed retailer’s delivery driver shall provide:
(1) All delivery inventory ledgers from the time the licensed retailer’s delivery driver left the licensed premises up to the time of the request;
(2) All delivery request receipts for cannabis goods carried by the driver, in the delivery vehicle, or any deliveries that have already been made to customers; and (3) The log of all stops from the time the licensed retailer’s delivery driver left the licensed premises up to the time of the request.
(i) If a licensed retailer’s delivery driver does not have any delivery requests to be performed for a 30-minute period, the licensed retailer’s delivery driver shall not make any additional deliveries and shall return to the licensed premises. Required meal breaks shall not count toward the 30-minute period.
(j) Upon returning to the licensed premises, all undelivered cannabis goods shall be returned to inventory and all necessary inventory and track and trace records shall be updated as appropriate that same day.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26090 and 26160, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 105 of 216 §15419. Cannabis Consumption During Delivery.

A licensed retailer’s delivery employees shall not consume cannabis goods while delivering cannabis goods to customers.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15420. Delivery Request Receipt.

A licensed retailer shall prepare a hard copy or electronic delivery request receipt for each delivery of cannabis goods.
(a) The delivery request receipt shall contain the following:
(1) The legal business name and license number of the licensed retailer; (2) The first name and employee number of the licensed retailer’s delivery employee who delivered the order;
(3) The first name and employee number of the licensed retailer’s employee who prepared the order for delivery;
(4) The first name of the customer and a licensed retailer-assigned customer number for the person who requested the delivery;
(5) The date and time the delivery request was made;
(6) The delivery address;
(7) A detailed description of all cannabis goods requested for delivery. The description shall include the weight, volume, or any other accurate measure of the amount of all cannabis goods requested;
(8) The total amount paid for the delivery, including any taxes or fees, the cost of the cannabis goods, and any other charges related to the delivery; and (9) Upon delivery, the date and time the delivery was made, and the handwritten or electronic signature of the customer who received the delivery. (b) At the time of the delivery, the delivery employee of the retailer shall provide the customer who placed the order with a hard or electronic copy of the delivery request receipt. The delivery employee shall retain a hard or electronic copy of the signed delivery request receipt for the licensed retailer’s records. (c) For the purposes of this section, an employee number is a distinct number assigned by a licensed retailer to an employee that would allow the licensed retailer to identify the employee in documents or records using the employee number rather than the employee’s full name. A licensed retailer shall be able to identify the employee associated with each employee number upon request from the Department.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 106 of 216 (d) For the purposes of this section, a customer number is a distinct number assigned by a licensed retailer to a customer that would allow the licensed retailer to identify the customer in documents or records using the customer number rather than the customer’s full name. A licensed retailer shall be able to identify the customer associated with each customer number upon request from the Department.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26090 and 26160, Business and Professions Code.
§15421. Delivery Route.

While making deliveries of cannabis goods, a licensed retailer’s delivery employee shall only travel from the retailer’s licensed premises to the delivery address; from one delivery address to another delivery address; or from a delivery address back to the retailer’s licensed premises. A delivery employee of a licensed retailer shall not deviate from the delivery path described in this section, except for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of the route unsafe, impossible, or impracticable.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code.
§15422. Receiving Shipments of Inventory.
(a) A licensed retailer shall receive a shipment of cannabis goods only from a licensed distributor or licensed microbusiness authorized to engage in distribution. (b) A licensed retailer shall accept shipments of cannabis goods only between the hours of 6:00 a.m. Pacific Time and 10:00 p.m. Pacific Time.
(c) During business hours, shipments of cannabis goods shall not enter the licensed premises through an entrance or exit that is available for use by the public. (d) A licensed retailer whose licensed premises only has one entryway may be exempt from the requirements of subsection (c) of this section if the licensed retailer obtains authorization from the local jurisdiction explicitly authorizing this activity. The licensed retailer shall be required to provide this authorization to the Department upon request.

For this section to apply, the licensed premises must physically have only one entryway and cannot have any other entryways.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26070, Business and Professions Code.
§15423. Inventory Documentation.

A licensed retailer shall maintain an accurate record of its inventory. A licensed retailer shall provide the Department with the record of inventory immediately upon request. A licensed retailer shall keep a record of the following information for all cannabis goods the licensed retailer has in its inventory:

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 107 of 216 (a) A description of each item such that the cannabis goods can easily be identified; (b) An accurate measurement of the quantity of the item; (c) The date and time the cannabis goods were received by the licensed retailer; (d) The sell-by or expiration date provided on the package of cannabis goods, if any; (e) The name and license number of the licensed distributor or licensed microbusiness that transported the cannabis goods to the licensed retailer; and (f) The price the licensed retailer paid for the cannabis goods, including taxes, delivery costs, and any other costs.

Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code.
§15424. Inventory Reconciliation.
(a) A licensed retailer shall be able to account for all of its inventory. (b) In conducting an inventory reconciliation, a licensed retailer shall verify that the licensed retailer’s physical inventory is consistent with the licensed retailer’s records pertaining to inventory.
(c) The result of inventory reconciliation shall be retained in the licensed retailer’s records and shall be made available to the Department upon request. (d) If a licensed retailer identifies any evidence of theft, diversion, or loss, the licensed retailer shall notify the Department and law enforcement pursuant to section 15036 of this division.
(e) If a significant discrepancy as defined in section 15034 of this division is discovered between a licensed retailer’s physical inventory and the licensed retailer’s inventory records, the licensed retailer shall notify the Department and law enforcement pursuant to section 15036 of this division.

Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code.
§15427. Retailer Premises-to-Retailer Premises Transfer. (a) A licensee who holds multiple retail licenses may arrange for the transfer of cannabis goods from one licensed retail premises to another licensed retail premises if both retail licenses are held by the same sole proprietor or business entity. (b) Cannabis goods transferred to a licensed retail premises under subsection (a) of this section may be sold by the licensed retailer receiving the cannabis goods only if the cannabis goods comply with all requirements found in the Act and this division. (c) The transportation of cannabis goods under this section must comply with all requirements found within the Act and this division.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 108 of 216 (d) Any movement of cannabis goods under this section shall be properly entered into the track and trace system.

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

Chapter 4. Microbusiness
§15500. Microbusiness.
(a) In order to hold a microbusiness license, a licensee must engage in at least three (3) of the following commercial cannabis activities: cultivation, manufacturing, distribution, and retail sale. License types created by the Department in regulation shall not be considered qualifying commercial cannabis activities for purposes of obtaining a microbusiness license, except for the Type N manufacturing license and the distributor transport only license.
(b) An applicant for a microbusiness license shall indicate on the application for licensure all commercial cannabis activities in which the applicant intends to engage. (c) All cultivation, manufacturing, distribution, and retail activities performed by a licensee under a microbusiness license shall occur on the same licensed premises. (d) A holder of a microbusiness license engaged in cultivation shall comply with all the rules and requirements applicable to the cultivation license type suitable for the cultivation activities of the licensee.
(e) A holder of a microbusiness license engaged in manufacturing shall comply with all the rules and requirements applicable to a Manufacturer 1 license in this division. (f) A holder of a microbusiness license engaged in distribution shall comply with all the rules and requirements applicable to a distributor license in this division. (g) A holder of a microbusiness license engaged in retail sale shall comply with all the rules and requirements applicable to a retailer license, or a non-storefront retailer license if retail sales are conducted by delivery only, in this division. (h) A holder of a microbusiness license may only engage in the commercial cannabis activity requested in the license application and approved by the Department at the time the license is issued. If the holder of a microbusiness license wants to engage in an additional commercial cannabis activity after the license is issued, the licensee shall submit a request for a modification of the licensed premises pursuant to section 15027. (i) A holder of a microbusiness license shall comply with all the security rules and requirements applicable to the corresponding license type suitable for the activities of the licensee.
(j) Areas of the licensed premises for manufacturing, cultivation, and distribution shall be separated from the retail areas by a wall and all doors between the areas shall remain closed when not in use.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 109 of 216 (k) A suspension or revocation of a microbusiness licensee shall affect all commercial cannabis activities allowed pursuant to that license.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050, 26051.5 and 26070, Business and Professions Code.

Chapter 5. Cannabis Events
§15600. Cannabis Event Organizer License.
(a) To obtain a temporary cannabis event license, the event organizer must first apply for and obtain a cannabis event organizer license.
(b) A cannabis event organizer licensed under this section shall comply with chapter 1 of this division except for sections 15006, 15007, 15010, 15019, 15025, 15027, 15034, 15038, 15042, 15044, and 15046-15052.1.
(c) A cannabis event organizer licensee is not authorized or licensed to cultivate, distribute, manufacture, or retail cannabis or cannabis products without first obtaining the appropriate licenses or authorizations to engage in such commercial cannabis activities.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26200, Business and Professions Code.
§15601. Temporary Cannabis Event Requirements.
(a) A temporary cannabis event license authorizes a licensed cannabis event organizer to hold a temporary cannabis event where the onsite sale and consumption of cannabis goods is authorized at the location indicated on the license during the dates indicated on the license.
(b) Violations of the requirements applicable to temporary cannabis events may result in disciplinary action against the cannabis event organizer license or any other licenses held by a licensee participating in the temporary cannabis event and responsible for a violation under this division or the Act.
(c) A temporary cannabis event license shall only be issued for a single day or up to 4 consecutive days. No temporary cannabis event license will be issued for more than 4 days.
(d) An application for a temporary cannabis event license shall be submitted to the Department no less than 60 calendar days before the first day of the temporary cannabis event.
(e) A temporary cannabis event may only be held at a county fair event, district agricultural association event, or at another venue expressly approved by a local jurisdiction for the purpose of holding a temporary cannabis event. (f) A temporary cannabis event license shall not be issued for a premises that is licensed for the sale of alcohol or tobacco.
(g) If the list of licensees and employees participating in the temporary cannabis event changes after the application is submitted or after the license is issued, the applicant Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 110 of 216 shall submit with the Licensee Notification and Request Form, Notifications and Requests Regarding Regulatory Compliance, DCC-LIC-028 (New 9/21), incorporated herein by reference, an updated list and an updated diagram, as required in section 15002.1(b)(5), to the Department no less than 72 hours before the event. Licensees not on the list submitted to the Department shall not participate in the temporary cannabis event.
(h) The licensed cannabis event organizer shall hire or contract for security personnel to provide security services at the licensed temporary cannabis event. All security personnel hired or contracted for by the licensee shall be at least 21 years of age, licensed by the Bureau of Security and Investigative Services, and comply with chapters

11.4 and 11.5 of division 3 of the Business and Professions Code. Security personnel shall be present on the licensed premises at all times cannabis goods are available for sale and/or cannabis goods consumption is allowed on the licensed premises. (i) A licensed cannabis event organizer shall maintain a clearly legible sign not less than 7 inches by 11 inches in size, reading “No Persons Under 21 Allowed” at or near each public entrance to any area where the sale or consumption of cannabis goods is allowed.

The lettering of the sign shall be no less than 1 inch in height. (j) All cannabis waste generated at a temporary cannabis event shall be collected and disposed of in accordance with the requirements of section 17223. The licensed cannabis event organizer may contract or arrange for the collection and disposal of cannabis waste generated during the temporary cannabis event. (k) A licensed cannabis event organizer and all other licensees participating in a temporary cannabis event are required to comply with section 15037 and all other applicable requirements in the Act and this division pertaining to record keeping. (l) The Department may require the event organizer and all participants to cease operations without delay if, in the opinion of the Department or local law enforcement, it is necessary to protect the immediate public health and safety of the people of the state.

Upon notification from the Department that the event is to cease operations, the event organizer shall immediately stop the event and all participants shall be removed from the premises within the time frame provided by the Department. (m) Upon notification from the Department, the event organizer shall immediately expel from the event any person selling cannabis goods without a license from the Department that authorizes the participant to sell cannabis goods. The event organizer or their representative shall remain with the person being expelled from the premises at all times until he or she vacates the premises. If the person does not vacate the premises, the Department may inform the event organizer that the event must cease operations. Upon notification from the Department that the event is to cease operations, the event organizer shall immediately stop the event and all participants shall be removed from the premises within the time frame provided by the Department.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26200, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 111 of 216 §15602. Temporary Cannabis Event Sales.
(a) Only persons age 21 or older may purchase and consume cannabis goods at a temporary cannabis event. Prior to selling cannabis goods to a customer, the licensee making the sale shall confirm, using valid identification as specified in section 15404 of this division, the age and identity of the customer.
(b) All sales of cannabis goods at a temporary cannabis event must occur in a retail area as designated in the premises diagram pursuant to section 15002.1(b)(5) of this division. (c) Each sale at a temporary cannabis event shall be performed by a licensed retailer, a licensed non-storefront retailer, or licensed microbusiness that is authorized to engage in retail sales. The cannabis event organizer may also sell cannabis goods at the temporary cannabis event if the organizer separately holds a license authorizing the retail sale of cannabis goods.
(1) Licensed retailers or licensed microbusinesses shall only conduct sales activities within their specifically assigned area, identified in the diagram of the physical layout of the temporary cannabis event.
(2) Mobile sales activities via wagon, cart, or similar means are prohibited at the temporary cannabis event site.
(d) Licensed retailers or licensed microbusinesses must prominently display their temporary cannabis event location number and state license within plain sight of the public.
(e) All sales at a temporary cannabis event shall occur on the dates stated on the license and shall occur at the location stated on the license. All onsite sales of cannabis goods must comply with the hours of operation requirements of section 15403 of this division. (f) Sale of alcohol or tobacco shall not be allowed on the licensed temporary cannabis event premises.
(g) The cannabis goods sold onsite at a temporary cannabis event shall be transported by a licensed distributor or licensed microbusiness in compliance with the Act and this division. All shipments of cannabis goods and non-cannabis goods intended for sale at a temporary cannabis event must be checked by the temporary cannabis event organizer staff to prevent prohibited items, such as alcohol and tobacco, from entering the licensed premises.
(h) Except small amounts of cannabis goods used for display, all cannabis goods for sale at a temporary cannabis event shall be stored in a secure, locked container that is not accessible to the public. Cannabis goods being stored by a licensee at a temporary cannabis event shall not be left unattended. Licensees may share the secure, locked container; however, each licensee using the container shall be held responsible for any violations of this section and subject to disciplinary action. (i) All cannabis goods made available for sale at a cannabis event shall comply with all requirements for the retail sale of cannabis goods within the Act and section 15406 of this division.
(j) All cannabis goods made available for sale at a temporary cannabis event shall Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 112 of 216 comply with all track and trace requirements within the Act and this division. (k) All cannabis goods used for display at a temporary cannabis event shall comply with the requirements of section 15405 of this division.
(l) All cannabis goods sold at a temporary cannabis event shall comply with section 15413 of this division.
(m) All customer returns of cannabis goods at a temporary cannabis event shall comply with section 15410 of this division.
(n) The daily sales limits under section 15409 of this division apply to all sales made at a temporary cannabis event.
(o) A licensed retailer shall only provide free cannabis goods to a person at a temporary cannabis event if the licensed retailer complies with all requirements of section 15411 of this division.
(p) The licensed cannabis event organizer shall be responsible for ensuring that all rules and requirements for the onsite sale of cannabis goods are followed. (q) Any compensation paid from a licensed retailer to a licensed cannabis event organizer for participation in a temporary cannabis event shall not be determined based on, or be contingent on, the sale of cannabis goods.

Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26200, Business and Professions Code.
§15603. Temporary Cannabis Event Consumption.
(a) Access to the area where cannabis consumption is allowed shall be restricted to persons 21 years of age or older.
(b) The event organizer licensee shall ensure that cannabis consumption is not visible from any public place or non-age-restricted area.
(c) Consumption of alcohol or tobacco shall not be allowed on the licensed premises. (d) All requirements for onsite cannabis consumption imposed by the relevant local jurisdiction shall be followed and smoking of cannabis goods shall be prohibited in any areas where smoking is prohibited by law.
(e) The licensed cannabis event organizer, who holds the temporary cannabis event license, shall be responsible for ensuring that all rules and requirements for the onsite consumption of cannabis goods are followed.
(f) A licensed cannabis event organizer and all other licensees participating in a temporary cannabis event are required to follow all applicable requirements in this division pertaining to record keeping and waste management.

Authority: Section 26013, Business and Professions Code. Reference: Section 26200, Business and Professions Code.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 113 of 216 §15604. Informational or Educational Cannabis Events.
(a) Informational or educational cannabis events where no sales of cannabis goods or consumption of cannabis goods is occurring are not required to be licensed by the Department.
(b) A person may display cannabis or cannabis products for informational or educational purposes consistent with Health and Safety Code sections 11362.1 and 11362.77.

Authority: Section 26013, Business and Professions Code. Reference: Section 26013, Business and Professions Code; and Sections 11362.1 and 11362.77, Health and Safety Code.

Chapter 6. Testing Laboratories
Article 1. Chapter Definitions
§15700. Definitions.

In addition to the definitions in section 15000 of this division, the following definitions apply to this chapter.
(a) “Acceptance criteria” means the specified limits placed on the characteristics of an item or method that are used to determine data quality. (b) “Accreditation body” means an impartial non-profit organization that operates in conformance with the International Organization for Standardization (ISO) / International Electrotechnical Commission (IEC) standard 17011 and is a signatory to the International Laboratory Accreditation Cooperation (ILAC) Mutual Recognition Arrangement (MRA) for Testing.
(c) “Accredited college or university” means a college or university accredited by a regional or national accrediting agency that is an accreditor recognized by the Secretary of the US Department of Education.
(d) “Action level” means the threshold value that provides the criterion for determining whether a sample passes or fails an analytical test.
(e) “Analyte” means a chemical, compound, element, bacteria, yeast, fungus, or toxin to be identified or measured.
(f) “Analytical batch” means a set of no more than 20 samples that is prepared together for the same analysis and are prepared with laboratory quality control (LQC) samples. (g) “Analytical method” means a technique used qualitatively or quantitatively to determine the composition of a sample or a microbial contamination of a sample. (h) “Analytical sequence” means a group of samples that are analyzed sequentially using the same instrument calibration curve.
(i) “Cannabinoid” means a class of diverse chemical compounds derived from a cannabis plant.
(j) “CAS number” means the unique numerical identifier assigned to every chemical substance by Chemical Abstracts Service, a division of the American Chemical Society.

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 114 of 216 (k) “CBDA” means cannabidiolic acid, CAS number 1244-58-2. (l) “CBG” means cannabigerol, CAS number 25654-31-3.
(m) “CBN” means cannabinol, CAS number 521-35-7.
(n) “Certificate of accreditation” means a document issued by an accreditation body that attests to the laboratory’s competence to carry out specific testing analysis. (o) “Certified reference material” means a reference material prepared by a certifying body or a party independent of the laboratory with ISO/IEC 17034 accreditation. (p) “Chain of Custody” (COC) means the chronological documentation that records the sequence of custody, control, transfer, analysis, and disposal of a sample. (q) “Coefficient of Determination” (commonly denoted as “r2”) means a statistical measure that determines how well the regression approximates the actual data points in the calibration curve, with a regression of 1 being a perfect fit. (r) “Continuing calibration verification” (CCV) means a type of quality control sample that includes each of the target method analytes that is a mid-range calibration standard which checks the continued validity of the initial calibration of the instrument. (s) “Corrective action” means an action taken by the laboratory to resolve, and prevent from recurrence, a problem with the technical operations of the laboratory. (t) “Exclusivity” means the specificity of the test method for validating microbial testing methods. It evaluates the ability of the method to distinguish the target organisms from similar but genetically distinct non-target organisms.
(u) “Foreign material” means any filthy, putrid, or decomposed substance including hair, insects, excreta, or related adulterant that may be hazardous or cause illness or injury to the consumer.
(v) “Frequency” means the number of items occurring in each category. Frequency may be determined by analytical method or laboratory specific requirements for accuracy, precision of the analysis, or statistical calculation.
(w) “Good laboratory practice” (GLP) means a system of management controls for laboratories to ensure the uniformity, consistency, reliability, reproducibility, quality, and integrity of analyses performed by the testing laboratory. (x) “Inclusivity” means, related to microbiological method validation, the sensitivity of the test method. It evaluates the ability of the test method to detect a wide range of target organisms by a defined relatedness.
(y) “Inhalable” means consumable through the lungs.
(z) “Initial Calibration Verification” (ICV) means a solution of each of the target method analytes of known concentration that is obtained from a source external to the laboratory and different from the source of calibration standards. (aa) “ISO/IEC” means the joint technical committee of the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC).

Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 115 of 216 (bb) “ISO/IEC 17025” means the general requirements specified by the ISO/IEC for the competence of testing and calibration laboratories.
(cc) “ISO/IEC 17034” means the general requirements established by the ISO/IEC for the competence of reference material producers.
(dd) “ISO/IEC 17043” means the general requirements established by the ISO/IEC for proficiency testing.
(ee) “Laboratory” means “testing laboratory” as defined at Business and Professions Code section 26001(av).
(ff) “Laboratory Control Sample” (LCS) means a blank matrix to which known concentrations of each of the target method analytes are added. The spiked concentration must be at a mid-range concentration of the calibration curve for the target analytes. The LCS is analyzed in the same manner as the representative sample. (gg) “Laboratory replicate sample” means a sub-sample taken of the representative sample used for laboratory quality control purposes to demonstrate reproducibility. It is prepared and analyzed in the identical manner as the representative sample. The results from replicate analyses are used to evaluate analytical precision. (hh) “Laboratory employee” means any person directly employed by the laboratory for wages, salary, barter, or trade by the laboratory and who is not employed by any other licensee under the Act except for another testing laboratory. “Laboratory employee” does not mean an independent contractor, third party entity, or any other entity acting on behalf of the laboratory.
(ii) “Laboratory quality assurance” means the set of operating principles that enable laboratories to produce defensible data of known accuracy and precision and includes employee training, equipment preventative maintenance procedures, calibration procedures, and quality control testing, among other things. (jj) “Limit of detection” (LOD) means the lowest quantity of a substance or analyte that can be distinguished from the absence of that substance within a stated confidence limit. (kk) “Limit of quantitation” (LOQ) means the minimum concentration of an analyte in a specific matrix that can be reliably quantified while also meeting predefined goals for bias and imprecision.
(ll) “Linear regression” means the determination, in analytical chemistry, of the best linear equation for calibration data to generate a calibration curve. The concentrate of an analyte in a sample can then be determined by comparing a measurement of the unknown to the calibration curve. A linear regression uses the following equation:
y = mx + b; where m = slope, b = intercept
(mm) “Matrix” means the substances that are present in a sample except for the analyte(s) of interest.
(nn) “Matrix spike sample” means a sample prepared by adding a known quantity of each of the target analyte to a sample matrix or to a matrix that is as closely representative of the matrix being analyzed as possible. The spiked concentration must be at a mid-range Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 116 of 216 concentration of the calibration curve for the target analytes. (oo) “Method Blank” means an analyte free matrix to which all reagents are added in the same volumes or proportions as used in the sample preparation and is processed in exactly the same manner as the samples.
(pp) “Moisture content” means the percentage of water in a sample, by weight. (qq) “Non-target organism” means an organism that the test method or analytical procedure is not testing for and can be used in evaluating the specificity of a test method. (rr) “Percent recovery” means the percentage of a measured concentration relative to the added (spiked) concentration in a reference material or matrix spike sample. A laboratory shall calculate the percent recovery by dividing the sample result by the expected result then multiplying the quotient by 100.
(ss) “Practical experience” means experience performing scientific analytical tests in a laboratory setting using equipment, instruments, kits, and materials routinely found in a laboratory. “Practical experience” includes experience in any type of laboratory setting and is not limited to cannabis-specific laboratories.
(tt) “Proficiency test” means an evaluation of a laboratory’s performance against preestablished criteria by means of interlaboratory comparisons of test measurements. (uu) “Proficiency test sample” means a sample that is prepared by a party independent of the testing laboratory with the ISO/IEC 17043 accreditation, where the concentration and identity of an analyte is known to the independent party, but is unknown to the testing laboratory and testing laboratory employees.
(vv) “Quadratic regression” means the determination, in analytical chemistry, of the best parabola equation for calibration data to generate a calibration curve. The concentrate of an analyte in a sample can then be determined by comparing a measurement of the unknown to the calibration curve. A quadratic regression uses the following equation:
y = ax2 + bx + c; where a, b, and c are numerical coefficients (ww) “Quality control” means the set of measures implemented within an analytical procedure to ensure that the measurement system is operating in a state of statistical control for which errors have been reduced to acceptable levels. (xx) “Quality control sample” means a sample that is produced and used by a laboratory for the purpose of assuring the quality of the data and results. Quality control samples include blank samples, matrix spike samples, laboratory control samples, replicate samples, and reference material samples.
(yy) “Reagent” means a compound or mixture added to a system to cause a chemical reaction or test if a reaction occurs. A reagent may be used to tell whether a specific chemical substance is present by causing a reaction to occur with the chemical substance.
(zz) “Reference material” means material containing a known concentration of an analyte of interest that is in solution or in a homogeneous matrix. (aaa) “Reference method” means the method by which the performance of an alternate Department of Cannabis Control
Medicinal and Adult Use Commercial Cannabis Regulations Page 117 of 216 method is measured or evaluated.
(bbb) “Relative percent difference” (RPD) means the comparative statistic that is used to calculate precision or random error. RPD is calculated using the following equation:

Fort Bragg City CouncilMay 23, 2022

Fort Bragg City Council
May 23, 2022