ACTION:
____________________________
Clerk/Secretary
Department: City Clerk Item No: C4
Prepared by: Kathy Valdez, City Clerk Meeting Date: August 9, 2022 Approved by: Patrick Johnson Agenda Location: Consent Calendar SUBJECT: SECOND READING OF CITY COUNCIL ORDINANCES APPROVING AMENDMENTS TO TITLE 5 OF THE VISTA MUNICIPAL CODE AND TO THE VISTA BUSINESS PARK
SPECIFIC PLAN RELATING TO COMMERCIAL CANNABIS CULTIVATION RECOMMENDATION:
1.Adopt City Council Ordinance No. 2022- , amending the Vista Business Park Specific Plan regarding commercial cannabis cultivation.
2.Adopt City Council Ordinance No. 2022- , adding Chapter 5.97, Commercial Cannabis Cultivation, to the Vista Municipal Code.
CORRELATION TO CITY COUNCIL GOALS: Routine operational item not directly corresponding to a specific City Council goal.
PRIOR ACTION: On June 28, 2022, introduced City Council Ordinance No. 2022- , amending the Vista Business Park Specific Plan regarding commercial cannabis cultivation and City Council Ordinance No. 2022- , adding Chapter 5.97, Commercial Cannabis Cultivation, to the Vista Municipal Code (Vote: 3-2, Ritter, Franklin opposed).
On February 22, 2022, the City Council discussed commercial cannabis cultivation and, by consensus, directed staff to bring back for consideration an ordinance for commercial cannabis cultivation (Vote: 4-1, Ritter opposed).
STATEMENT ON THE SUBJECT: In accordance with Vista Municipal Code Section 2.12.240.D, the ordinances are being presented to the City Council for a second reading and adoption since it did not receive the required four-fifths vote for adoption without a second reading. No amendments have been made to this ordinance since its introduction.
FISCAL IMPACT: There is no direct fiscal impact associated with the staff recommendation.
EXHIBITS:
1.City Council Ordinance No. 2022- , amending the Vista Business Park Specific Plan regarding commercial cannabis cultivation.
2.City Council Ordinance No. 2022- , adding Chapter 5.97, Commercial Cannabis Cultivation, to the Vista Municipal Code.
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
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This item was removed from the agenda.
ORDINANCE NO. 2022-
AN ORDINANCE OF THE CITY COUNCIL OF THE CHARTERED CITY OF VISTA, CALIFORNIA, AMENDING THE USES PERMITTED WITHIN "USE AREA `B"' OF THE VISTA BUSINESS PARK SPECIFIC PLAN
The City Council of the City of Vista does ordain as follows:
1. Findings. The City Council hereby finds and declares the following:
A. This ordinance is enacted by the City Council pursuant to the authority under the Charter of the City of Vista and Article 11, Section 7 of the California Constitution.
B. The City Council: (1) finds and determines that adoption of this ordinance qualifies for an exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because the ordinance would establish a discretionary permit process wherein subsequent environmental review would occur; and (2) that implementation of this ordinance would not result in a significant impact to the environment.
2. Code Amendment.
Use Area B (Research Light Industrial and Business Support Group) of the Vista Business Park Specific Plan is amended as follows:
A. The list of"Uses permitted subject to granting of a Special Use Permit" is amended to add item (11) as follows, with the understanding that compliance with CEQA shall occur at the time that action on the Special Use Permit occurs:
"(11) Commercial cannabis cultivation businesses licensed pursuant to Chapter 5.97 of the Vista Municipal Code."
3. Definitions. Terms used in this ordinance shall have the meanings assigned to those terms pursuant to Chapter 5.97 or if not defined therein, as provided in the Vista Municipal Code or state law.
4. Regulations; Interpretation. The City Manager is hereby authorized to adopt rules or regulations to govern the acceptance and prioritization of special use permit applications authorized pursuant to this Ordinance. Further, the City Manager shall be authorized to adopt final and binding interpretations regarding this Ordinance and any regulations or rules adopted thereunder.
5. Condition Precedent to Effectiveness of Ordinance. This ordinance shall not take effect unless the City Council has adopted an ordinance adding Chapter 5.97 to the Vista Municipal Code, relating to Commercial Cannabis Cultivation, and that ordinance has taken effect.
6. Severability. If any word, sentence, paragraph, or other portion of this ordinance is deemed to be invalid or unenforceable for any reason by a court of competent jurisdiction, the City Council declares its intent that all remaining words, sentences, paragraphs or portions of the ordinance not held to be invalid or unenforceable shall remain in full force and effect, and 00108061 1 EXHIBIT 1
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shall be so construed, as if the original ordinance did not contain the invalid or unenforceable language.
7. Effective Date. Subject to satisfaction of the condition precedent described in Section 5, this Ordinance shall be in full force and effect on the thirty-first day following the date of its adoption.
8. Adoption. INTRODUCED at a meeting of the City Council of the City of Vista held on June 28, 2022, and ADOPTED at a meeting held on August 9, 2022 by the following vote:
AYES:
NOES:
ABSTAIN:
JUDY RITTER, MAYOR
APPROVED AS TO FORM: ATTEST:
WALTER CHUNG, ACTING CITY ATTORNEY KATHY VALDEZ, CITY CLERK By: By:
APPROVED
Walter C.Chung
20220613170147
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ORDINANCE NO. 2022-
AN ORDINANCE OF THE CITY COUNCIL OF THE CHARTERED CITY OF VISTA, CALIFORNIA, ADDING CHAPTER 5.97, COMMERCIAL
CANNABIS CULTIVATION, TO THE VISTA MUNICIPAL CODE
The City Council of the City of Vista does ordain as follows:
1. Findings. The City Council hereby finds and declares the following:
A. The Adult Use of Marijuana Act, adopted by the voters of the State of California in November 2016, decriminalized non-medicinal cannabis and established a regulatory system for non-medical cannabis businesses in California.
B. The Medicinal and Adult-Use Cannabis Regulation and Safety Act, enacted by the California State Legislature in June 2017, established a comprehensive set of laws regulating both individual and commercial medicinal and non-medical cannabis activity throughout the State of California.
C. Under California Business and Professions Code sections 26200 and 26201, the City is authorized to either permit, regulate and/or prohibit the operation of cannabis businesses within its jurisdiction.
D. The City has a substantial interest in promoting compliance with state and local laws intended that regulate cannabis sales and use and in discouraging the illegal purchase of cannabis products within its jurisdiction.
E. It is the intent of the City Council to adopt a comprehensive set of requirements, restrictions, and enforcement procedures with regard to cannabis activity within the City of Vista in order to protect public safety, health, and other law enforcement interests.
F. In 2018, the voters of the City authorized the establishment of commercial cannabis cultivation businesses by the City when it approved Measure AA which enacted Vista Municipal Code section 7.10.025(G). That section allows the City Council to set a tax rate for commercial cannabis cultivation.
G. This Ordinance is enacted pursuant to the powers vested in the City pursuant to Article XI, Sections 5 and 7, of the California Constitution.
2. Code Amendment.
Chapter 5.97 is added to the Vista Municipal Code to read as follows:
"CHAPTER 5.97
COMMERCIAL CANNABIS CULTIVATION
Table of Contents
5.97.010 Authority; Purpose; Conflicts of Law
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5.97.020 Definitions
5.97.030 Operation Prohibited Without a Valid License
5.97.040 Compliance with the Law
5.97.050 Prohibited and Authorized Commercial Cannabis Cultivation Activity
5.97.060 Numerical limits
5.97.070 Location of Commercial Cannabis Cultivation
5.97.080 License Application; Contents; Process
5.97.090 License Term; Expiration; Renewal
5.97.100 Transfer of Ownership Interest, Modification or Other Material Changes
5.97.110 Employee Permits; Revocation
5.97.120 Suspension and Revocation of Commercial Cannabis Cultivation Licenses
5.97.130 Appeals and Reconsideration
5.97.140 Operating Requirements for Commercial Cannabis Cultivation
5.97.150 Obligations of Members of the Management and Ownership Team
5.97.160 Inspection of Premises and Records
5.97.170 Taxes
5.97.180 Regulations
5.97.190 Violations
5.97.010 Authority; Purpose; Conflicts of Law
A. This chapter is adopted pursuant to sections 5 and 7 of Article XI of the California Constitution and the authority reserved to cities pursuant to state law, including without limitation, Government Code § 11362.83 and Business and Professions Code § 26200.
B. This chapter, consistent with state law, creates regulations to govern commercial cannabis cultivation and persons engaged in commercial cannabis cultivation activities.
C. This chapter only authorizes commercial cannabis cultivation activities licensed and conducted in accordance with this chapter, and no other form of commercial cannabis activity whatsoever.
D. In the event of a conflict between the provisions of this chapter and the provisions of any applicable state or local law or regulation, the more restrictive provision shall control. To the extent allowed by state law, the City shall have the right, but not the obligation, to enforce all applicable state laws.
5.97.020 Definitions
The following definitions shall apply to this chapter unless the context clearly denotes otherwise.
"Applicant" means a person or legal entity who is required to file an application for a license under this chapter.
"Business" means all activities engaged in, or caused to be engaged 001079892 2
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in within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to that employee's employer.
"Business Licensing Division" as used in this chapter is defined to mean the department within the City that reviews, issues, and manages business licenses.
"Cannabis" means, except as specified herein, all parts of the cannabis sativa linnaeus, cannabis indica, or cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Chapter, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "Canopy" means the designated area(s) at a City licensed premises, except nurseries, that contain or will contain growing or mature Cannabis plants at any point in time. The canopy for each premises shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain growing or mature plants at any point in time, including any and all space(s) within such boundaries. The canopy for any premises may be noncontiguous; provided, that each unique area included in the total canopy calculation for any premises shall be separated by an identifiable boundary. Identifiable boundaries may include, but are not limited to, interior walls or shelves. If plants are being cultivated using a shelving system, the surface of each level shall be included in the total canopy calculation.
"City" means the City of Vista.
"City Manager" means the City Manager of the City or the City Manager's designee. Unless explicitly specified otherwise, the City acts through the City Manager and/or his/her designee.
"Commercial Cannabis Activity" shall have the meaning set forth in California Business and Professions Code Section 26001(k), which includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis or cannabis products as provided in the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA," California Business and Professions Code Sections 26000 et seq.) and for which a state license or nonprofit license is 001079892 3
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required.
"Commercial Cannabis Business" includes any persons engaged in commercial cannabis activity.
"Commercial cannabis cultivation business license" means a regulatory license issued by the City pursuant to Chapter 5.97 to a commercial cannabis cultivation business and is required before any commercial cannabis cultivation business may be conducted in the City.
"Cultivation" shall have the meaning set forth in California Business and Professions Code section 26001(1), which includes any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
"Cultivator" means a person engaged in cultivation.
"Day Care Center" has the same meaning as in California Health and Safety Code Section 1596.76.
"Employee" includes any person who renders any service, with or without compensation, to a commercial cannabis cultivation business or any person performing some or all of the functions of an employee of a commercial cannabis cultivation business. The term "employee" shall include volunteers, part-time, full-time, contract, temporary, and permanent employees. "Existing Residential Use" means a residential Pipeline Project or lawfully constructed structure or project intended for residential use within a Residential Zone.
"Licensee" means any person holding a license under this chapter. "Live Plants" means living Cannabis flowers and plants including seeds, immature plants, and vegetative stage plants.
"Location" means any parcel of land, whether vacant or occupied by a building, group of buildings, or accessory buildings, and includes the buildings, structures, yards, open spaces, lot width, and lotarea. "Live Scan" means a system for inkless electronic fingerprinting and the automated background check developed by the California Department of Justice ("DOX) which involves digitizing fingerprints and electronically transmitting the fingerprint image data along with personal descriptor information to computers at the DOJ for completion of a criminal record check; or such other comparable inkless electronic fingerprinting and automated background check process as determined by the City Council. "Marijuana" has the same definition as set forth in Health and Safety Code section 11018 and includes cannabis.
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"Manager" means any individual person(s) designated by a commercial cannabis business to manage day-to-day operations of the commercial cannabis business or any person acting with apparent management authority. Evidence of management authority includes, but is not limited to, evidence that the person has the power to direct, supervise, or hire and dismiss employees or volunteers, control hours of operation, create policy rules, or purchase supplies. "Owner" means any of the following:
1. In the context of a commercial cannabis business, a person with any ownership interest, direct or indirect, in a commercial cannabis business, whether a partner, shareholder, member, or the like, including any security, lien, or encumbrance in an ownership interest that, upon default, could become an ownership interest in a commercial cannabis business.
2. In the context of a Premises, a Person with any Ownership or long- term lease interest, direct or indirect, in the Premises, whether as a partner, shareholder, member, joint tenant or the like.
"Person" means any individual, entity, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination of Persons acting as a unit.
"Pipeline Project" means an inventory of development projects that have been approved but not yet built.
"Premises" for commercial cannabis cultivation means the designated structure or structures and land, or portions thereof, specified in an application for a City license or, if a City license is issued, that is owned, leased, or otherwise held under the control of the City licensee, and is designated as the structure or structures and land, or portions thereof, where the commercial cannabis cultivation will be or is conducted.
"Public Parks" means outdoor premises containing existing or proposed parks, including community parks, neighborhood parks, mini-parks, and urban parks that are currently or proposed to be owned or operated by the City or other governmental agency.
"Public Street" is any public right-of-way designated for vehicular use. "RLI zone" means the area designated in the Vista Business Park Specific Plan as the "Research Light Industrial and Business Support Group (Use Area `B')." "State" means the state of California.
"State Laws" means the laws of the state of California, which include, but are not limited to, California Health and Safety Code Section 11000 et seq.; 001079892 5
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California Health and Safety Sections 11362.1 through 11362.45; California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996 ("CUA")); California Health and Safety Code Section 11362.7 et seq. (Medical Marijuana Program Act ("MMPA")); California Health and Safety Code Section 26000 et seq. (Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA")); the California Attorney General's Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August 2008, as such guidelines may be revised from time to time by action of the Attorney General; California Labor Code Section 147.5; California Revenue and Taxation Code Sections 31020 and 34010 through 34021.5; California Fish and Game Code Section 12029; California Water Code Section 13276; all state regulations adopted pursuant to MAUCRSA; and all other applicable laws of the state of California.
"Transport" means transfer of cannabis or cannabis products from the premises of one licensee to the premises of another licensee, for the purposes of conducting commercial cannabis activity authorized by state laws and this Chapter.
"Youth" means an individual under 21 years of age.
"Youth Center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. "Youth-Oriented Business" means any for-profit or nonprofit business where the majority of individuals who patronize, congregate, or assemble at the business location are less than 21 years old.
5.97.030 Operation Prohibited Without a Valid License This chapter requires all commercial cannabis cultivation operators to obtain and hold a valid commercial cannabis cultivation license to operate within the City. The provisions of this chapter are in addition to any other licenses, licenses and approvals which may be required, now or in the future, to conduct business in the City and the State of California.
5.97.040 Compliance with the Law
It shall be unlawful to own, establish, operate, use, or permit the establishment or operation of a commercial cannabis cultivation business, or to participate as an employee, contractor, agent, volunteer, or in any manner or capacity other than as provided in this chapter. The general prohibition contained in this section shall include renting, leasing, or otherwise permitting a commercial cannabis cultivation business to occupy or use a location, vehicle, or other mode of transportation.
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commercial cannabis cultivation businesses to ensure that the commercial cannabis cultivation business they own and/or operate is, at all times, operating in a manner compliant with all current and future applicable federal, state and local laws, regulations, licensing requirements, certification requirements, and/or any additional operating procedures and/or requirements which may be imposed as conditions of approval of the commercial cannabis cultivation license.
Every commercial cannabis cultivation business shall submit to periodic compliance checks by the City in order for the City to ensure all commercial cannabis cultivation businesses have complied and are complying with all applicable federal, state and local laws, regulations, licensing requirements and certification requirements. The City's compliance checks will be conducted during the normal business hours of a commercial cannabis cultivation business. The City's compliance checks may be conducted with or without advance notice to a commercial cannabis cultivation business.
5.97.050 Prohibited and Authorized Commercial Cannabis Cultivation Activity
A. Outdoor Cultivation Prohibited. All commercial cannabis cultivation activities must always occur indoors. Outdoor cultivation is strictly prohibited.
B. Cannabis cultivation shall always be conducted within a fully enclosed building or buildings setback from the lot lines and public right-of-way in accordance with the development standards for the zone classification in which it is located.
C. Authorized cultivation license types are limited to: Specialty Cottage Indoor, Specialty Indoor, Small Indoor, and Medium Indoor.
5.98.060 Numerical Limits
At any given time, the number of commercial cannabis cultivation licenses issued by the City shall not exceed three (3) licenses. No person shall be issued more than one commercial cannabis cultivation license. No individual or entity shall own any amount of ownership interest in more than one City commercial cannabis cultivation license or commercial cannabis cultivation business operating in the City at any time.
5.97.070 Location of Commercial Cannabis Cultivation Businesses A. The commercial cannabis cultivation business facility location identified in an application must satisfy all of the following: (1) be within the RLI zone; (2) be authorized pursuant to a City issued special use permit, as further specified in paragraph D; (3) be outside a 600 hundred foot radius surrounding any day care center, youth center, youth-oriented business, public park, or school providing instruction in kindergarten or any grades 1 through 12; and (4) be outside a 600 hundred foot radius of any residentially-zoned property. 001079892 7
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B. The distances in paragraph A shall be considered at the time the license is approved and shall be measured as provided in Health and Safety Code section 11362.768 or as otherwise provided by law.
C. Interpretations and determinations regarding distances and separations shall be made by the licensing officer.
D. The special use permit described in paragraph A shall be permitted in accordance with section 18.74.120 of the Vista Development Code, except that the requirements of 18.74.120(A)(2) shall be replaced with the determination that the proposed use, in the manner to be conducted, is permitted in the applicable zone and will conform to applicable state and local laws and regulations.
E. Multiple indoor cannabis cultivations may operate on a single lot provided all the following are met: (1) A City special use permit has been granted for cannabis cultivation and specifies the number and size of each proposed licensed premises; (2) each licensed premises is separately licensed by the City and the State for cannabis cultivation; (3) the individual canopy size of each cannabis cultivator complies with State law, and (4) the cumulative canopy area for all cannabis cultivation operators on one lot does not exceed a total amount of forty-four thousand (44,000) square feet.
5.97.080 License Application; Contents; Process
A. An application for a commercial cannabis cultivation license shall be made on a form prescribed by the City. The application shall be accompanied by an application fee in an amount established by resolution of the City Council and the fee for a Special Use Permit. The application shall include a statement, made under penalty of perjury, certifying that all of the information contained in the application is true and correct.
B. The City Manager shall establish the schedule, rules, and procedures for the submittal of applications. A lottery system will be used to select the initial three commercial cannabis cultivation businesses allowed to apply for a commercial cannabis cultivation license under this chapter, as well as to establish a waiting list. No license will be issued until the prospective applicant obtains a special use permit from the City for its proposed commercial cannabis cultivation business location. If a selected business fails to obtain a special use permit in the time allotted under the rules and procedures established by the City Manager, that business will forfeit its right to apply for a license, and the applicant numerically next on the waiting list will be given the opportunity to apply for the license. The waiting list, if any, shall expire when all three initial commercial cannabis cultivation business licenses have been issued.
C. If a commercial cultivation license becomes available any time after the initial three commercial cannabis cultivation licenses have been issued, the City shall use a lottery system to select an applicant who will be given the opportunity to obtain an available commercial cultivation license, as well as to 001079892 8
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establish a waiting list. If a selected business fails to obtain a special use permit in the time allotted under the rules and procedures established by the City Manager, that applicant will forfeit the spot and the spot will be offered to the applicant numerically next on the waiting list. The waiting list, if any, shall expire when a successful applicant obtains a commercial cannabis cultivation business license.
D. An application for a cannabis cultivation license shall, at a minimum, include the following:
1. The name, mailing address, and telephone number of the applicant.
2. The address from which the commercial cannabis
cultivation business will operate.
3. Proof of organizational status, such as articles of
incorporation, partnership agreements, or other
documentation as may be required by the City.
4. The name of each member of the management and
ownership team, with such other identifying information as the City may require.
5. A completed criminal background check, inclusive of Live Scan results, for each member of the management and
ownership team to determine if any member has a
precluding conviction. The application should include a copy of the Live Scan application form for each member of the management and ownership team. The results of the
Live Scan are delivered to the City independently.
6. Documentation establishing that the applicant is, or will be, entitled to possession of the premises for use as a
commercial cannabis cultivation business for which the
application is made. Evidence of lawful possession
consists of a properly recorded deed, lease, evidence of ownership of the premises, or other written documents
acceptable to the City. The licensed premises shall only be the geographical area that is specifically and accurately described in executed documents verifying lawful
possession. Licensees are not authorized to relocate to other areas or units within a building structure without first filing an application for a modification of the local license, obtaining a special use permit for the new premises, and obtaining approval from the City.
7. An operating plan for the proposed commercial cannabis cultivation business including, at a minimum, the following 001079892 9
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information:
a. A general description of the cannabis cultivation activities and steps to be taken to prevent diversion
of cannabis.
b. A floor plan designating all interior dimensions and the layout of the cannabis cultivation business,
including canopy area(s), areas designated for
immature plants, designated processing area(s) (if
applicable), designated pesticide and agricultural
chemical storage, lighting, and security camera
locations.
8. A security plan for the proposed commercial cannabis cultivation business including, at a minimum, the following security requirements:
a. Video surveillance. The commercial cannabis
cultivation facility must be equipped with a video
surveillance system that meets all of the
requirements of Cal. Code Regs., Title 16, section
15044 as well as those set forth in this subsection.
b. Security cameras and digital storage of recordings
shall be maintained in good condition and used in
an on-going manner, twenty-four (24) hours per
day, and seven (7) days per week.
C. The security system must maintain at least ninety
(90) calendar days of digitally recorded video for
each security camera in the licensed premises.
Security footage should be stored in an MPEG4,
MJPEG, H. 264, or another format approved by the
City in writing and the recorded video shall be
made available to the Sheriff Department or the
City immediately upon request.
d. Security cameras must provide adequate and
sufficient coverage for the entire facility such that
the entire facility is under security camera
surveillance at all times. Security cameras must
also provide adequate and sufficient coverage for
all areas of ingress and egress to the facility at all
times.
e. The video surveillance system must be equipped
with a failure notification system that provides
prompt notification to a security company licensed
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by the Department of Consumer Affairs, Bureau of
Security and Investigative Services, of any
surveillance interruption or complete failure of the
surveillance system that lasts longer than fifteen
(15) minutes. The licensed alarm company must
promptly report any such notification to the Sheriff
Department.
f. The video surveillance system shall have sufficient
battery backup to support a minimum of twelve (12)
hours of recording in the event of a power outage.
g. Unless waived by the City in writing, the video
surveillance system shall stream a live feed
accessible to the Sheriff Department via a secure
internet portal, virtual private network or other form
of secure remote access.
h. Alarm system. The commercial cannabis cultivation facility shall have an audible interior and exterior
security alarm system installed on all perimeter
entry points and perimeter windows, operated, and
monitored by a security company licensed by the
Department of Consumer Affairs, Bureau of
Security and Investigative Services, and approved
by the City. "Perimeter entry points" includes,
regardless of size, all doors, windows, hatches
and/or points at which persons or systems (such as
HVAC systems) enter a structure.
i. Signage requirement. The commercial cannabis
cultivation facility must comply with the following
signage requirements: a sign shall be posted in a
conspicuous place near each point of access to the
facility which shall be not less than twelve (12)
inches wide and twelve (12) inches long, composed
of letters not less than one (1) inch in height, stating " All Activities Monitored by Video Camera."
j. Lighting. The commercial cannabis cultivation
facility's points of access and all window areas shall
be sufficiently illuminated during evening hours
such that security cameras can record clear video
of any activity at or around the facility's points of
access and window areas. The applicant shall
comply with the City's lighting standards regarding
fixture type, wattage, illumination levels, shielding,
and other restrictions, and secure the necessary
approvals and permits as needed.
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k. Commercial-grade locks. All points of ingress and
egress to a commercial cannabis cultivation facility
shall ensure the use of commercial- grade (i.e. non-
residential) door locks and window locks.
9. Written authorization for the City to seek verification of the information contained within the application and
authorization for the City or its agents to conduct
background check(s).
10. A capital investment and business plan demonstrating that sufficient investment for the business has been obtained, and that the business can maintain its operations for a period of at least five (5) years. To the maximum extent permitted by law, the capital investment and business plan shall be kept confidential.
11. A complete management and ownership team report, inclusive of all required information, demonstrating that the management and ownership team have the skills,
experience and track record to assure that the commercial cannabis cultivation business will continuously operate in manner that will satisfy all state and local laws.
12. A copy of the commercial cannabis cultivation business's commercial general liability insurance policy and all
other insurance policies related to the operation of the commercial cannabis cultivation business.
13. A signed defense and indemnity agreement by which the applicant agrees to defend and indemnify the City, its
officers, employees, and agents for any legal challenge to the issuance of a license to the applicant pursuant to this chapter, including any decisions to renew or extend that license.
14. Any additional information that the City may request, at any time, to process and fully investigate the application. The additional information must be provided to the City no later than thirty (30) days after the date of the request unless otherwise specified by the City. Failure to provide such additional information by the requested deadline may
result in denial of the application
Section 5.97.090 License Term; Expiration; Renewal A. A commercial cannabis cultivation license shall have an initial term which begins on the date the license is issued and ends on the first June 30 001079892 12
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which is at least ninety (90) days following the date the license is issued.
Thereafter, each commercial cannabis cultivation license shall be in force for a one (1) year term which runs from July 1 through June 30, provided that the license is timely and successfully renewed as provided in sub-sections B through D, below.
B. A licensed commercial cannabis cultivation business may apply for the renewal of its license no less than thirty (30) days prior to the license's expiration date. If the licensed commercial cannabis cultivation business files a renewal application within thirty (30) days prior to expiration, the licensee shall provide a written explanation detailing the circumstances surrounding the late filing. The City may accept or reject such late filing in its discretion. The City may elect to administratively continue a local license past its expiration date, provided that the licensee has submitted a renewal application that is complete and pending final action by the City.
C. An application for renewal will only be accepted by the City if it is accompanied by the requisite renewal licensing fee.
D. Each application for renewal shall include updated information for any part of the application that has undergone a change in circumstance since the original application or last renewal filing and shall recertify all information submitted in prior application(s).
E. Unless the City has expressly authorized in writing the renewal of the commercial cannabis cultivation license, a license is immediately invalid upon its expiration date and the commercial cannabis cultivation business shall cease operations immediately upon the expiration of its license.
Section 5.97.100 Transfer of Ownership Interest, Modification or Other Material Changes
A. A licensed commercial cannabis cultivation business must obtain prior approval for any transfer of ownership interest, modification of a cannabis cultivation facility, modification in the nature and operation of the cannabis cultivation business, or any change in its management and/or ownership team.
B. An application seeking approval for any change described in paragraph A shall be made using forms prescribed by the City and shall be accompanied by an application fee in an amount set by the City.
C. For a transfer of ownership interest or a change of location, a new local license must be obtained, and if applicable, a new special use permit.
D. No licensee may assign and/or sublet any portion of a licensed premises.
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Section 5.97.110 Employee Work Permits; Revocation A. Prior to a commercial cannabis cultivation business opening for business, it shall provide the City with the name of each person who intends to work at the facility on the day the facility opens. The list of workers shall include full-time employees, part-time employees, contractors, interns, volunteers, etc.
The commercial cannabis cultivation business shall continuously update the list of persons working at the facility within ten (10) days of any change in a previously provided list.
B. No person shall work at a commercial cannabis cultivation facility unless the person holds a valid work permit issued by the City pursuant to this section.
C. The work permit application shall be made on a form provided by the City. The completed application shall contain, at a minimum, the following information and be accompanied by the following documents:
1. The applicant's legal name and any other names used by the employee.
2. The applicant's age, date and place of birth.
3. The applicant's present residence address and telephone number.
4. A statement that the applicant has not been convicted of a felony within the four (4) years preceding the date of the application.
5. Unless the applicant has already performed a Live Scan for the City as part of a prior application and the City is currently receiving updates of any subsequent convictions, a receipt indicating that a Live Scan has been performed with respect to the applicant and that its results will be delivered to the City so the City can confirm if the applicant has or has not been convicted of any felony within the last four years.
6. Satisfactory written proof that the employee is at least twenty-one (21) years of age.
D. The completed application shall be accompanied by a non- refundable application fee set by the City.
E. Within five (5) City business days after receipt of the properly completed application and Live Scan results, the City shall endeavor to grant or deny the application and so notify the applicant. The City shall grant the application and issue the permit unless the application is denied for one or more of the following reasons:
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1. The employee has made any false, misleading, or
fraudulent statement in the application;
2. The employee is under twenty-one (21) years of age;
and/or
3. The employee has been convicted of a felony within the four (4) years preceding the date application was
submitted.
F. At any time, the City may revoke an employee work permit for any of the reasons which would allow the City to deny an initial application for an employee work permit, sub-section E, above.
G. At any time, a holder of a work permit may relinquish his or her employee work permit by providing the City with a signed written direction to that effect.
Section 5.97.120 Suspension and Revocation of Cannabis Cultivation Licenses
A. It is unlawful for any person to operate a commercial cannabis cultivation business or engage in cannabis cultivation activity in a manner that violates any provision of this chapter, and any such violation shall be enforced as provided in this chapter.
B. The City may summarily suspend or revoke a commercial cannabis cultivation business license if any of the following, singularly or in combination, occur:
1. The City determines that the licensee has failed to comply with this chapter or any condition of approval or a circumstance or situation has been created that would have permitted the licensing officer to deny the commercial cannabis cultivation license or employee permit during the application phase.
2. The California Department of Cannabis Control or any other governmental regulator imposes any type of discipline on a commercial cannabis cultivation business.
3. Unless due to force majeure events, operations at the commercial cannabis cultivation facility cease for more than sixty (60) calendar days during any one (1) year licensing period.
4. Any portion of the ownership of the commercial cannabis cultivation business changes without securing the necessary City or other required approvals.
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5. The licensee fails to allow inspection of the commercial cannabis cultivation facility or books or records of the commercial cannabis cultivation business, including security footage, as required by this chapter.
6. The licensee fails to possess and/or maintain, in good standing, any required state license or special use permit.
C. The City may (but has no obligation to) defer the effective date for a license suspension or revocation to permit a licensee sufficient time to file an administrative appeal before any suspension or revocation takes effect.
Section 5.97.130 Appeals and Reconsideration
A. An applicant or a commercial cannabis cultivation business may file an appeal if a license application or a license renewal application for a commercial cannabis cultivation business is denied, or if a commercial cannabis cultivation business license is revoked or suspended. Any person or party who has not provided an application for a license authorized by this chapter and suffered an adverse licensing decision on said application by the City shall not be able to file an appeal pursuant to this section. A timely and complete appeal must be filed with the City Clerk no later than ten (10) City business days from the earlier of the date on which the City notifies the applicant of the license denial, revocation, or suspension. The date of notice for purposes of this section shall be the earlier of the date the action is communicated by email or the date on which the City deposits a mailed notice into the United States mail. A complete appeal must include an appeal fee in an amount set by the City, and the following: (i) the name of the party filing the appeal, which must be either the applicant or commercial cannabis cultivation business which experienced the adverse licensing decision; (ii) an email address and street address to which correspondence may be communicated, (iii) the licensing action which is being appealed; and (iv) all evidence, facts, and reasons to be considered and which the appellant believes support its appeal. The submitted appeal will be presented to the City Manager for action based on the materials in the record developed by the City prior to taking its action, and the materials submitted by the appellant.
Before taking action, the City Manager may provide the appellant with additional evidence used or which may be used to justify the City's action of denial and offer the appellant an opportunity to respond. Within ten (10) City business days of receiving the appeal, providing additional evidence to the appellant (if any), and obtaining a response from appellant (if any), the City Manager shall: (1) deny the appeal if the City Manager determines that the denial was permitted under the terms of this chapter; (2) reverse the denial if the City Manager determines that the denial was not permitted under the chapter and an approval should have been given; or (3) direct that a remand occur or such other actions be taken as may be needed to achieve better compliance with the terms of this chapter. The decision of the City Manager shall be made in writing. Rather than processing the appeal himself or herself, the City Manager may delegate his or her responsibilities to the Assistant City Manager. The decision of the City Manager, or the Assistant City Manager in the event of a delegation, shall be final, 001079892 16
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conclusive and without further administrative appeal.
B. For an action not covered by paragraph A, an aggrieved party may make a written request to the City to reconsider or cause an action to be reconsidered. Such a request must be filed with the City Clerk within ten (10) City business days of the earlier of the date the City notifies the aggrieved party of the action (for which reconsideration is sought) by email or the date on which the City deposits a mailed notice of the action into the United States mail. The request must provide: (i) the name of the party seeking reconsideration; (ii) an email address and street address to which correspondence may be communicated; (iii) the action for which reconsideration is sought; (iv) the result sought following reconsideration; and (v) all evidence, facts, and reasons that support the request for reconsideration. If a complete request for reconsideration is not filed within the time required by this paragraph, the action shall become final and conclusive.
If a timely and complete request for reconsideration is filed, the City Clerk will provide the request to the City Manager. Within ten (10) City business days, the City Manager shall advise the aggrieved party in writing that the City Manager has decided to not adjust the action, to adjust or reverse the action, or advise the party that further evidence, information or explanation is required before a determination can be made. If the City Manager instructs the aggrieved party that additional evidence, information or explanation is required, the party shall provide it to the City Manager within ten (10) City business days of the request, or the request for consideration shall be deemed to be finally abandoned. A written determination by the City Manager shall be sent to the party seeking reconsideration within ten (10) City business days of: (1) the date on which the request for reconsideration is filed with the City Clerk; or (2) if applicable, the date on which supplemental evidence, information or explanation is provided to the City Manager in response to the request of the City Manager, provided that the supplemental evidence, information or explanation is provided before the request for reconsideration is deemed to be abandoned. Rather than processing the appeal himself or herself, the City Manager may delegate his or her responsibilities to the Assistant City Manager. The decision of the City Manager, or the Assistant City Manager in the event of a delegation, shall be final, conclusive and without further administrative appeal.
Section 5.97.140 Operating Requirements for Commercial Cannabis Cultivation Business
All commercial cannabis cultivation businesses shall comply with the requirements set forth in this chapter. Failure to comply with any of these requirements shall be a violation of this chapter and constitute grounds for immediate suspension and/or revocation of the violator's commercial cannabis cultivation business license.
A. A cultivator shall always operate in compliance with all current and future State and local laws and regulations. Such laws and regulations shall include, but are not limited to:
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1. State and local laws related to electricity, water usage, water quality, irrigation, discharges, and similar matters.
2. Applicable federal, state and local laws and regulations regarding use, storage, and disposal of pesticides and
fertilizers.
3. The State's track-and-trace system for cannabis.
4. The California Environmental Quality Act (CEQA).
B. All operations of a commercial cannabis cultivation business shall comply with all of the applicable restrictions and mandates in this chapter, its security plan, and the terms of any special use permit issued for its operations, if any.
C. A commercial cannabis cultivation business shall pay any applicable taxes pursuant to federal, state, and local laws, including without limitation the taxes required by both chapter 5.04 and chapter 7.10 of the Vista Municipal Code.
D. All operations of the commercial cannabis cultivation business shall occur exclusively on and completely within its approved commercial cannabis cultivation facility, and no other land or premises within the City may be used for any functions or operations of the cannabis business, except for parking of vehicles.
E. From a public right-of-way, there should be no visible exterior evidence of cultivation.
F. No external signage shall be allowed on or around the commercial cannabis cultivation facility, other than the address of the premise.
G. The general public is not permitted on or in the premises of a commercial cannabis cultivation facility except for the agents, applicants, managers, and employees of the actual business and any agents or employees of the City of Vista.
H. A cultivator shall only be allowed to cultivate upon the square feet of canopy authorized by the cultivator's State License and City cultivation license issued for the premises.
I. A commercial cannabis cultivation business shall have an air treatment system or other controls to ensure that detectable cannabis odors do not escape beyond the interior of the facility through ventilation or exhaust systems.
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J. Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.
K. Cultivation shall, at all times, be operated in such a way as to ensure the health, safety, and welfare of the public, the people working at the commercial cannabis cultivation business, neighboring properties, and the end users of the cannabis being cultivated; to protect the environment from harm to waterways, fish, and wildlife; to ensure the security of the cannabis being cultivated; and, to safeguard against the diversion of cannabis.
L. A commercial cannabis cultivation business licensee shall not engage in any form of transport of cannabis or cannabis products.
M. Cannabis waste, which is limited to any material intended for disposal, shall be transported pursuant to any relevant local and state laws and regulations.
N. On-site smoking, ingestion, or consumption of cannabis shall be prohibited on the premises of all commercial cannabis cultivation businesses.
The term "premises" as used in this subsection includes the actual building, as well as any accessory structures, common areas and parking areas. A sign shall be posted at each entrance of a commercial cannabis cultivation facility that clearly and legibly states, "Smoking, ingestion, or consumption of cannabis on these licensed premises or in their vicinity is prohibited and a violation of the Vista Municipal Code."
O. A commercial cannabis cultivation business shall not sell, provide, store, or distribute any product that would require that the seller possess a license issued by the California Department of Alcoholic Beverage Control.
P. A commercial cannabis cultivation business shall display a copy of its commercial cannabis cultivation license issued pursuant to this chapter in a conspicuous place at the entrance to the licensed premises.
Q. A commercial cannabis cultivation business shall utilize onsite armed and state licensed security staff twenty-four (24) hours a day, seven (7) days a week, three hundred sixty-five (365) days a year, unless otherwise approved in writing by the Sheriff Department.
R. A commercial cannabis cultivation business shall within one (1) day provide written notice to the City of the loss or suspension of any state license issued by the Department of Cannabis Control, or other State agency that the commercial cannabis cultivation facility requires to hold for any commercial cannabis activity it conducts.
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cannabis business for any purpose) protecting the commercial cannabis cultivation business in an amount of not less than two million dollars ($2,000,000.00) per occurrence, combined single limit, including bodily injury and property damage and not less than two million dollars ($2,000,000.00) aggregate for each personal injury liability, products liability and each accident.
Section 5.97.150 Obligations of Members of the Management and Ownership Team
It is the obligation of each owner, individually, as well as any onsite manager, to assure that the commercial cannabis cultivation business, at all times, is operating in a manner which complies with all applicable federal, state, and local laws and regulations, including any subsequently enacted state or local law or regulatory, licensing, or certification standards or requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of a state license or a City license. It is the obligation of each person employed at a commercial cannabis cultivation business to individually act in a manner that satisfies, and avoids violations, of this chapter or any other state or local law or regulatory, licensing, or certification standards or requirements.
Section 5.97.160 Inspection of Premises and Records A. At all times, City officials, employees, and their designees authorized to enforce the provisions of this chapter shall have full access to the entirety of a commercial cannabis cultivation business, security camera footage of the cannabis enterprise facility, and records of every cannabis enterprise for the following purposes:
1. To inspect the premises, land, improvements comprising the commercial cannabis cultivation business for
compliance with this chapter and state Laws, including
Building Code and Fire Code compliance.
2. To review or copy any materials, books, records or security camera footage of the commercial cannabis cultivation
business or commercial cannabis cultivation facility.
3. To test any equipment possessed by, in control of, or used by a commercial cannabis cultivation business.
4. To test any cannabis or cannabis product possessed by, in control of, or used by a commercial cannabis cultivation business.
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B. Failure by any commercial cannabis cultivation business or any person associated with a commercial cannabis cultivation business to comply with this section shall itself be a violation of this chapter.
C. The access rights, audit rights, and inspection rights afforded to the City by this section may be fully utilized and exercised by any contractor or agent engaged or authorized to represent the City.
D. Prior notice of an inspection, investigation, review, or audit is not required.
E. Any inspection, investigation, review, or audit of a commercial cannabis cultivation business shall be conducted anytime the commercial cannabis cultivation business is open for business.
F. This section shall not be construed or applied in a manner to deprive a commercial cannabis cultivation business or its employees of any privilege which is guaranteed by the Constitutions of the United States and/or the State of California, or any other applicable law.
Section 5.97.170 Taxes
A. Each commercial cannabis cultivation business is obligated to make a timely payment of the taxes which it owes to the City from time to time as required by City ordinance or other law. These taxes, at minimum, include both:
(1) the gross receipts taxes due pursuant to chapter 7.10, inclusive of any applicable late payments, interest, and penalties; and (2) the taxes owing pursuant to chapter 5.04, inclusive of any late payments, interest, and penalties.
Failure to make full and timely payment is a violation of this chapter.
B. Each commercial cannabis cultivation business shall immediately and fully participate in any tax audit or review as allowed by chapter 7.10, or as allowed by section 5.97.160, and make all records available for inspection by the City or its agent in connection with such an audit or review.
Section 5.97.180 Regulations
The City Manager is authorized to promulgate such regulations, rules and procedures as may be necessary or convenient to implement this chapter.
Section 5.97.190 Violations
A. Any violation of this chapter is unlawful and a public nuisance. A nuisance under this chapter may be abated by the City, or by the City Attorney on behalf of the people of the State of California, as a nuisance by means of a restraining order, injunction, abatement warrant, or any other order or judgment in law or equity issued by a court of competent jurisdiction. The City, or the City Attorney on behalf of the people of the State of California, may seek injunctive relief to enjoin violations of, or to compel compliance with this chapter or seek 001079892 21
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any other relief or remedy available at law or equity, including the imposition of monetary civil penalties.
B. Any violation of any of the provisions of this chapter shall constitute a misdemeanor violation and upon conviction thereof any violation shall be punishable by a fine not to exceed one thousand dollars ($1,000.00), or by imprisonment for a period of not more than six (6) months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense. No proof of knowledge, intent, or other mental state is required to establish a violation.
C. In the event of a violation of this chapter, the City may notify a commercial cannabis cultivation business and any other responsible party that the City intends to impose a daily civil penalty for the violation. Civil penalties imposed on a daily basis shall not exceed two thousand dollars ($2,000) for each day or portion of a day that the violation occurs. The amount of civil penalties imposed shall be determined by taking into account the severity of the violation, the occurrence of prior violations, the degree of culpability, the economic benefit accruing to the commercial cannabis cultivation business due to the violation (or cost savings enabled by the violation), and whether the violation can be attributed to deliberate misconduct, negligence, inadequate supervision, or error.
Penalties may be set so they begin to accrue if a cure is not accomplished by a set date, or in a manner where the penalties escalate over time. Penalties may be recovered as part of any civil action, or as part of a negotiated agreement between the City and the commercial cannabis cultivation business which fixes the amount of the civil penalties and the terms by which the violation will be cured if it has yet to be corrected.
D. The City may issue an administrative citation for each violation of this chapter pursuant to the procedures set forth in chapter 1.13.
E. Whenever in this chapter any act or omission is made unlawful, it shall include causing, aiding, abetting, suffering, or concealing the fact of such act or omission.
F. The remedies specified in this section are cumulative and in addition to any other remedies available under state or local law for a violation of this Code.
G. The procedures contained in section 5.97.130 shall not apply to and may not be utilized in connection with any enforcement actions, penalties or proceedings taken pursuant to this section."
3. Interpretation. In interpreting this Ordinance or resolving any ambiguity, this Ordinance shall be interpreted in a manner that effectively accomplishes its stated purposes.
4. Severability. If any word, sentence, paragraph, or other portion of this Ordinance is deemed to be invalid or unenforceable for any reason by a court of competent jurisdiction, the City Council declares that it is its intent that all remaining words, sentences, paragraphs or 001079892 22
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portions of this Ordinance not held to be invalid or unenforceable shall remain in full force and effect and shall be so construed as if the original Ordinance did not contain the invalid or unenforceable language.
5. Effective Date. This Ordinance shall be in full force and effect on the 31st day following the date of adoption.
6. Adoption. INTRODUCED at a meeting of the City Council of the City of Vista held on June 28, 2022, and ADOPTED at a meeting held on August 9, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
JUDY RITTER, MAYOR
APPROVED AS TO FORM: ATTEST:
WALTER C. CHUNG, ACTING CITY ATTORNEY KATHY VALDEZ, CITY CLERK By: By:
APPROVED
Walter C.Chung
20220613170912
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