Chapter 15 COMMERCIAL CANNABIS OPERATIONS REGULATORY PROGRAM

A. The purpose of this Chapter is to establish a comprehensive set of regulations with an attendant regulatory permit applicable to the operation of certain types of commercial cannabis operations, while simultaneously establishing an express prohibition on certain other types of commercial cannabis operations.

B. The regulations for, and prohibitions on, specific types of commercial cannabis operations are enacted to preserve the public health, safety, and welfare of the residents and visitors of the City of Carson, consistent with California’s Compassionate Use Act of 1996, California’s Medical Marijuana Program Act of 2003, the Adult Use of Marijuana Act of 2016 (AUMA) (Proposition 64), the Medicinal and Adult-Use Cannabis Regulation and Safety Act of 2017 (MAUCRSA) and all applicable State laws governing commercial cannabis activities.

C. The issuance of a commercial cannabis operation permit shall constitute a revocable privilege and shall not create or establish any vested rights for the development or use of a property.

D. This Chapter is not intended to permit activities that are otherwise illegal under Federal, State or local law. This Chapter is not intended to conflict with Federal or State law.

E. This Chapter and its regulations shall be known as the “Commercial Cannabis Operations Regulatory Program.” (Ord. 17-1637, § 2)

615020 Commercial Cannabis Operation Prohibited without City Permit.

It shall be unlawful to own, establish, operate, use, or permit the establishment or activity of a commercial cannabis operation, or to participate in commercial cannabis operations as an employee, contractor, agent, volunteer, or in any manner or capacity, other than as provided in this Chapter and pursuant to both a current and valid City of Carson commercial cannabis operation permit and other requirements under this Chapter, as well as the equivalent State license for such commercial cannabis operation as provided for by Business and Professions Code Section 26050, and as amended. The prohibition contained in this Section shall include renting, leasing, or otherwise permitting a commercial cannabis operation to occupy or use a location, vehicle, or other mode of transportation. (Ord. 17-1637, § 2)

615030 Definitions.

As used in this Chapter, the following words and phrases shall have the following meanings:

A. “Adult use” (i.e., “recreational” or “non-medical”) refers to activity involving cannabis or cannabis products, which is restricted to adults twenty-one (21) years of age and older and who do not possess a physician’s recommendation, in contrast to an activity involving medical cannabis or medical cannabis products.

B. “Applicant” means a person who files an application for a permit under this Chapter.

C. “Batch” means a specific quantity of homogeneous cannabis or cannabis product that is one (1) of the following types: (1) Harvest batch. “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time. (2) Manufactured cannabis batch. “Manufactured cannabis batch” means either of the following: (A) An amount of cannabis concentrate or extract that is produced in one (1) production cycle using the same extraction methods and standard operating procedures. (B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.

D. “Cannabis” means all parts of the plant 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.

E. “Cannabis concentrate” means cannabis that has undergone a process to concentrate one (1) or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this Chapter. A cannabis concentrate is not considered food, as defined by Health and Safety Code Section 109935, or a drug, as defined by Health and Safety Code Section 109925.

F. “Cannabis Permit Committee” is composed of the Director of Community Development (Director), the Police Captain, the Fire Captain, the Finance Director, the City Manager, a medical cannabis specialist, a community member, and a representative from the Los Angeles County Public Health Department (or an equivalent member if no such representative is available).

G. “Cannabis products” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including but not limited to concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

H. “City Attorney” means the City of Carson City Attorney, and includes his/her designee(s).

I. “City Manager” means the City of Carson City Manager, and includes his/her designee(s).

J. “City Prosecutor” means the City of Carson City Prosecutor, and includes his/her designee(s).

K. “Commercial cannabis operation” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale (including retail and wholesale) of cannabis and cannabis products; except, as applicable, as set forth in Chapter 17 (Personal Cultivation of Cannabis) of Article VI or as preempted by State law.

L. “Commercial cannabis operation permit” shall mean a City of Carson permit issued pursuant to the procedures provided for in this Chapter and which shall allow the permit holder to operate a specific type of commercial cannabis operation in the City of Carson subject to the requirements of this Chapter, State law, and the specific permit.

M. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

N. “Day care center” means, as the term is understood by Business and Professions Code Section 26001(o), and as may be amended, any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school-age child care centers.

O. “Delivery” means the commercial transfer of cannabis or cannabis products to a customer, and includes the use of any technology platform owned and controlled by the same person making such use.

P. “Director” means the City of Carson Community Development Director, and includes his/her designee(s).

Q. “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between entities licensed for and/or engaged in commercial cannabis activities.

R. “Distributor” means a person engaged in distribution.

S. “Edible” means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Food and Agricultural Code Division 15 (commencing with Section 32501). An edible cannabis product is not considered food, as defined by Health and Safety Code Section 109935, or a drug, as defined by Health and Safety Code Section 109925.

T. “Employee” means any person (whether paid or unpaid) who provides regular labor or regular services for a commercial cannabis operation, including, but not limited to, at the location of a commercial cannabis operation. The term “employee” includes managers and owners as used in this Chapter.

U. “Extraction” means the process of obtaining cannabis concentrates from cannabis plants, including but not limited to through the use of solvents like butane, alcohol or carbon dioxide.

V. “Finance Director” means the City of Carson Finance Director, and includes his/her designees.

W. “Fire Captain” means the individual designated by the Los Angeles County Fire Department to oversee Fire Department operations in the City of Carson, and includes his/her designee(s).

X. “Fire Department” means the Los Angeles County Fire Department which is under contract with the City of Carson for fire services, as provided for through various stations of the Los Angeles County Fire Department.

Y. “Hotel” means an establishment providing accommodations, restaurants, and other services for travelers and tourists and which has a substantial presence, capacity and service (e.g., the Carson Hilton Doubletree) so as to distinguish it from a motel which does not provide the same features.

Z. “Identification card” has the same definition as provided for in Health and Safety Code Section 11362.7(g), and as may be amended, defined as “a document issued by the [State Department of Health Services] that identifies a person authorized to engage in the medical use of cannabis and the person’s designated primary caregiver, if any.”

AA. “Indoor” in the context of commercial cultivation refers to cultivation using exclusively artificial lighting and no natural lighting.

BB. “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.

CC. “Library” means a place open to the general public in which literary, musical, artistic, or reference materials (such as books, manuscripts, recordings, or films) are kept for use by, and lending to, the general public, but not for sale to the general public.

DD. “Lighting” means the act of illuminating as well as the effect achieved by the arrangement of lights.

EE. “Live scan” means a system for inkless electronic fingerprinting and the automated background check developed by the California Department of Justice (DOJ) 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.

FF. “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 lot area.

GG. “Manager” means an employee responsible for management and/or supervision of a commercial cannabis operation.

HH. “Manufacture” or “manufacturing” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product; includes the activities of a manufacturer.

II. “Manufacturer” means a person that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container; includes the activity of manufacturing.

JJ. “Marijuana” has the same definition as provided for “cannabis” in this Chapter.

KK. “Medical” refers to activity involving medical cannabis or medical cannabis products, in contrast to an activity involving adult-use cannabis or adult-use cannabis products.

LL. “Medical cannabis” or “medical cannabis product” means cannabis or a cannabis product used in compliance with State law for medical purposes, pursuant to the Compassionate Use Act (Health and Safety Code Section 11362.5), the Medical Marijuana Program Act (Health and Safety Code Section 11362.7, et seq.), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (Business and Professions Code Section 26000, et seq.).

MM. “Merit List” shall refer to the criteria listed in CMC 615080(G).

NN. “Microbusiness” shall have the same definition as provided for in Business and Professions Code Section 26070, and as may be amended.

OO. “Minor” means a person under twenty-one (21) years of age.

PP. “Mixed-light” in the context of commercial cultivation refers to cultivation using a combination of natural and supplemental artificial lighting.

QQ. “Nursery” means a person that produces indoors or mixed-light (not outdoors) only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.

RR. “Operations Officer(s)” shall refer to the Director, the Fire Captain, the Police Captain, the Finance Director, the City Manager, the City Prosecutor and the Public Safety Manager, individually or collectively.

SS. “Outdoor” in the context of commercial cultivation refers to cultivation using exclusively natural lighting and no artificial lighting.

TT. “Owner” means the owner of a commercial cannabis operation.

UU. “Package” means any container or receptacle used for holding cannabis or cannabis products.

VV. “Packaging” or “packages” means an activity involved with placing cannabis or cannabis products in a package.

WW. “Park” means public land which has been designated for park or recreational activities by the City of Carson or the County of Los Angeles.

XX. “Permittee” means a person issued a Commercial Cannabis Operation Permit by the City of Carson.

YY. “Person” means any individual, firm, co-partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit.

ZZ. “Person with an identification card” has the same definition as provided for in Health and Safety Code Section 11362.7(c), and as may be amended, defined as “an individual who is a qualified patient who has applied for and received a valid identification card pursuant to this article.”

AAA. “Physician’s recommendation” means a determination from a physician that a patient’s medical cannabis use is deemed appropriate and is recommended by the physician on the basis of the physician has determined that the patient’s health would benefit from the use of cannabis in the treatment of cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief, in strict accordance with the Compassionate Use Act of 1996 (Proposition 215), and as understood by Health and Safety Code Section 11362.5.

BBB. “Police Captain” means the Los Angeles County Sheriff’s Department Captain in command of the Carson Station of the Los Angeles County Sheriff’s Department, and includes his/her designee(s).

CCC. “Police Department” means the Los Angeles County Sheriff’s Department which is under contract with the City of Carson for police services, as provided for through the Carson Station of the Los Angeles County Sheriff’s Department.

DDD. “Premises” means a single parcel of property. Where contiguous parcels are under common ownership or control, such contiguous parcels shall be counted as a single “premises.”

EEE. “Primary caregiver” has the same definition as provided for in Health and Safety Code Section 11362.7(d), and as may be amended, including being “the individual, designated by a qualified patient or by a person with an identification card, who has consistently assumed responsibility for the housing, health, or safety of that patient or person.” A “primary caregiver” shall also meet the requirements of Health and Safety Code Section 11362.7(e), and as may be amended, which provide that a “primary caregiver shall be at least eighteen (18) years of age, unless the primary caregiver is the parent of a minor child who is a qualified patient or a person with an identification card or the primary caregiver is a person otherwise entitled to make medical decisions under State law pursuant to Sections 6922, 7002, 7050, or 7120 of the Family Code.”

FFF. “Public Safety Manager” means the City of Carson Public Safety Manager and includes his/her designee(s).

GGG. “Qualified patient” has the same definition as provided for in Health and Safety Code Section 11362.7(f), and as may be amended, defined as “a person who is entitled to the protections of Section 11362.5, but who does not have an identification card issued pursuant to this Article.”

HHH. “Regional shopping mall” means a commercial retail center with a regional customer base in which multiple buildings form a complex of retail businesses with interconnecting pedestrian walkways, including the SouthBay Pavilion regional shopping mall.

III. “Retailer” means a person engaged in the retail sale or delivery of cannabis or cannabis products to a customer.

JJJ. “School” means, as the term is understood by Business and Professions Code Section 26054(b), and as may be amended, as a place of instruction in kindergarten or any grades one (1) through twelve (12).

KKK. “Site” means the premises and actual physical location of a commercial cannabis operation, as well as its accessory structures and parking areas.

LLL. “Testing laboratory” or “testing” refers to a laboratory, facility, or entity that offers or performs tests on cannabis or cannabis products; includes the activity of laboratory testing.

MMM. “Youth center” means, as the term is understood by Business and Professions Code Section 26001(av), and as may be amended, 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. (Ord. 17-1637, § 2)

615040 Prohibited Commercial Cannabis Operations.

A. Commercial cannabis operations (including nonprofit operations) within the City which involve the activities of outdoor cultivation, retailer, or microbusiness are prohibited, including but not limited to commercial cannabis activities licensed by the State license classifications listed below as provided in Business and Professions Code Section 26050:

1. Type 1 = Cultivation; Specialty outdoor; Small.

2. Type 1C = Cultivation; Specialty cottage; Small.

3. Type 2 = Cultivation; Outdoor; Small.

4. Type 3 = Cultivation; Outdoor; Medium.

5. Type 5 = Cultivation; Outdoor; Large.

6. Type 10 = Retailer.

7. Type 12 = Microbusiness.

B. The prohibition provided by subsection (A) of this Section includes any similar activities authorized under new or revised State licenses, or any other State authorization, to allow any type, category or classification of cannabis commercial activities which involve the aforementioned activities or similar operations (including nonprofit, collective or cooperative operations). (Ord. 17-1637, § 2)

615050 Permitted Commercial Cannabis Operations.

A. Commercial cannabis operations (including nonprofit operations) within the City, at four (4) California-licensed cannabis centers, which comprise the activities of indoor cultivation, mixed-light cultivation, manufacturer, testing or distributor, are allowed subject to issuance and maintenance of a valid and current City commercial cannabis operation permit, other requirements under this Chapter, continuing adherence to this entire Chapter and all applicable City and State regulations and laws, and issuance and maintenance of a valid and current equivalent State license type listed below, as provided for in Business and Professions Code Section 26050:

1. Type 1A = Cultivation; Specialty indoor; Small.

2. Type 1B = Cultivation; Specialty mixed-light; Small.

3. Type 2A = Cultivation; Indoor; Small.

4. Type 2B = Cultivation; Mixed-light; Small.

5. Type 3A = Cultivation; Indoor; Medium.

6. Type 3B = Cultivation; Mixed-light; Medium.

7. Type 4 = Cultivation; Nursery.

8. Type 5A = Cultivation; Indoor; Large.

9. Type 5B = Cultivation; Mixed-light; Large.

10. Type 6 = Manufacturer 1.

11. Type 7 = Manufacturer 2.

12. Type 8 = Testing.

13. Type 11 = Distributor.

B. The requirements provided by subsection (A) of this Section apply to any similar activities authorized under new or revised State licenses, or any other State authorization, to allow any type, category or classification of cannabis commercial activities which involve the aforementioned activities, or similar operations (including nonprofit, collective or cooperative operations).

C. The California-licensed cannabis centers shall be limited to four (4) in total, with two (2) centers available for entitlements under this Code immediately, and then two (2) centers available for entitlements under this Code within six (6) months thereafter. (Ord. 17-1637, § 2)

615060 Commercial Cannabis Operation Permit.

A. Prior to initiating operation as a commercial cannabis operation and as a continuing requisite to conducting operations, the owner of a commercial cannabis operation shall obtain a regulatory permit from the City under the terms and conditions set forth in this Chapter.

B. Issuance of a commercial cannabis operation permit is governed by a two (2) step procedure (as provided for in more detail in CMC 615080 and 615090).

1. The first step (as provided for in CMC 615080) is as follows:

a. Review by the Director to determine whether an applicant meets the minimum qualifications for a commercial cannabis operation permit, such minimum qualifications being the requirements of this Chapter, the Carson Municipal Code, and applicable State law.

b. If the Director makes a positive determination, then the application will be deemed compliant, and the Cannabis Permit Committee will review the thoroughness of applicant’s adherence to Merit List criteria specified in CMC 615080(G). Upon conclusion of this review, the Cannabis Permit Committee shall make a recommendation to the City Council as to whether or not a permit should be issued. The recommendation shall articulate in writing reasons for the recommendation and refer to Merit List criteria.

2. The second step (as provided for in CMC 615090) is review by the City Council of Cannabis Permit Committee recommendations at a properly noticed public meeting of the City Council, and then a decision on whether a permit will or will not be issued. The reasons for the decision shall be articulated in writing and refer to Merit List criteria specified in CMC 615080(G). The decision shall be final and nonappealable.

C. Commercial cannabis operation permits issued pursuant to this Chapter shall automatically expire one (1) year from the date of issuance, unless provided for otherwise.

D. Conditions necessary for the continuing validity of a commercial cannabis operation permit include:

1. Strict adherence to each and every requirement of this Chapter, as well as any requirements, including administrative regulations, adopted by the City pursuant to the authority of this Chapter.

2. Maintaining a current and valid State license pursuant to Business and Professions Code Division 10, and as amended. Revocation, suspension or expiration of the State license shall automatically invalidate the equivalent City commercial cannabis operation permit.

3. Allowing Operations Officers to conduct reasonable random inspections of the location of the commercial cannabis operation at the discretion of the City, including but not limited to inspection of security, inventory, and written records and files pertaining to the commercial cannabis operation, for the purposes of ensuring compliance with local and State law.

4. Maintaining with the City current and valid contact information of the owner(s) and manager(s) of the commercial cannabis operation.

5. Maintaining with the City current and valid contact information of a legal representative of the commercial cannabis operation.

6. Transferable only if transferee successfully completes all of the requirements that a new applicant for a commercial cannabis operation permit would otherwise need to meet. (Ord. 17-1637, § 2)

615070 Applications for Commercial Cannabis Operation Permit.

A. The owner of a proposed commercial cannabis operation shall file an application with the Director upon a form provided by the City and shall pay a filing fee as established by resolution adopted by the City Council, as may be amended from time to time.

B. An application for a commercial cannabis operation permit shall include, but not be limited to, the following information:

1. Business.

a. Activities. A general description of the proposed operation, including how the proposed operation will operate in compliance with this Code and State law, plans for handling cash and transporting cannabis and cannabis products to and from the premises, and the proposed use of all areas on the premises, including but not limited to specific activities, storage, lighting and signage.

b. Security. A security plan detailing measures to the satisfaction of the Director that all applicable security-related requirements under State or local law, including but not limited to the requirements of CMC 615120(B), are and will be met.

c. Odor Control. An odor control plan detailing odor control measures in accordance with CMC 615120(C), to the satisfaction of the Director.

d. Ownership. A description of the statutory entity or business form that will serve as the legal structure for the applicant, the ownership structure of the applicant as filed with the California Secretary of State (e.g., limited liability company, joint partnership, S-Corporation) (an applicant that is a foreign corporation shall include in its application the certificate of qualification issued by the Secretary of State of California), and a copy of the entity’s formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement, and fictitious business name statement.

e. Seller’s Permit. The seller’s permit number issued by the Board of Equalization or evidence that the applicant has applied for a seller’s permit from the Board of Equalization, as applicable.

f. Other Licenses and Permits. Identification of any other licenses or permits for commercial cannabis operations, whether for the City of Carson or for any other licensing or permitting authority:

i. Held currently by the applicant;

ii. Pending approval for the applicant; or

iii. Denied to, revoked from or suspended for the applicant.

g. Physical. A general description of the proposed operation, including the street address, parcel number, the total square footage of the site, and the characteristics of the surrounding area.

h. Floor Plan. A scaled floor plan for each level of each building that is part of the business site, including the entrances, exits, walls, and operating areas. The floor plan must be professionally prepared by a licensed civil engineer or architect.

i. Site Plan. A scaled site plan of the business site, that will include at a minimum all buildings, structures, driveways, parking lots, landscape areas, and boundaries. The site plan must be professionally prepared by a licensed civil engineer or architect.

j. Hours of Operation. Proposed hours and days of operation for business operations involving activity from, to or outside of the site, including but not limited to transport of items into and out of the site. Maximum allowed hours are from 9:00 a.m. through 6:00 p.m.

2. Individuals.

a. Managers. The name, address, email and phone number of any person who is managing or responsible for the commercial cannabis operation’s activities.

b. Community Outreach Manager. The name, email and phone number of an employee designated as community outreach manager, who will be responsible for outreach and communication with the surrounding community, including the neighborhood and nearby businesses.

c. Employees. A list of the names of all current and prospective employees of the commercial cannabis operation, along with any other identifying information requested by the Director.

d. Consent to Criminal Investigation. Written consent from all employees to fingerprinting and a criminal background investigation by the City, upon a form provided by the City, accompanied with payment of appropriate fees to the City to cover the costs of performing such criminal background check. At the discretion of the City and in compliance with State law, the City may use live scan to perform criminal background checks.

e. Identification. For each employee, a color photocopy of either a valid California driver’s license or equivalent identification approved by the Director.

f. Land Owner. The name, address, email and phone number of the owner and lessor of the real property upon which the commercial cannabis operation is to be conducted. In the event the applicant is not the legal owner of the property, the application must be accompanied by a notarized acknowledgement from the owner of the property that a commercial cannabis operation will be operated on his/her property.

3. Miscellaneous.

a. Any additional application requirements specific to the type of commercial cannabis operation permit being sought, including but not limited to as provided for by this Chapter.

b. Evidence satisfactory to the Director of compliance with all local and State law requirements governing the commercial cannabis operation.

c. Evidence satisfactory to the Director of compliance with all applicable insurance requirements as provided for by this Chapter, local law and State law. Minimum insurance levels shall be determined by the Director after an assessment of the risks posed by the commercial cannabis operation, including provision for meeting the requirements of CMC 615080(C)(2).

d. Authorization for the Director to seek verification of the information contained within the application.

e. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct.

f. Any such additional and further information as is deemed necessary by the Director to administer this Chapter. (Ord. 17-1637, § 2)

615080 Review of Commercial Cannabis Operation Permit Application.

A. Upon receipt of a completed application and payment of all applicable fees, the Director shall investigate the information contained in the application to determine whether the applicant meets the minimum qualifications for a commercial cannabis operation permit. These minimum qualifications are the requirements of this Chapter, the Carson Municipal Code, and applicable State law.

B. Within ninety (90) days of receipt of the completed application, the Director shall complete the investigation, approve, conditionally approve, or deny the application as being in compliance with the requirements of this Chapter, and so notify the applicant by United States mail, first class postage prepaid, addressed to the applicant at the address stated in the application. If the Director determines that the application is incomplete, the Director shall notify the applicant in writing explaining the reasons thereof within sixty (60) days of receipt of the application. Applicant shall have thirty (30) days to submit a completed application, in accordance with the Director’s notification. If the application is resubmitted as incomplete, it shall be deemed abandoned. The applicant may then resubmit a new application for a new review pursuant to the requirements of this Section.

C. An applicant shall not be deemed compliant for purposes of review by the Cannabis Permit Committee, until and unless an applicant meets all of the following requirements:

1. Provides written authorization to the Operations Officers to conduct reasonable unannounced inspections of the location of the commercial cannabis operation at the discretion of the City, including but not limited to inspection of security, inventory, and written records and files pertaining to the commercial cannabis operation, for the purposes of ensuring compliance with this Chapter and all laws of the City and the State of California.

2. Executes an agreement: to indemnify, defend and hold harmless (at the commercial cannabis operation permit holder’s sole expense, the ability to do so demonstrated through proof of sufficient insurance coverage to the satisfaction of the City) the City, its elected officials, employees, agents, officers, and representatives, and each and all of them individually, from all liability or harm arising from or in connection with all claims, damages, attorney’s fees, costs and allegations arising from or in any way related to the operation of the commercial cannabis operation; and, to reimburse the City for any costs and attorney’s fees that the City may be required to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action.

D. Upon successfully completing the review process by the Director, the permit application shall be deemed compliant and eligible for review by the Cannabis Permit Committee for preparation of a Merit List pursuant to CMC 615080(G) and (H), unless the Director finds:

1. The applicant has made one (1) or more false or misleading statements or omissions, either on the written application or during the application process; or

2. A proposed location for the commercial cannabis operation is not allowed by State or local law, statute, ordinance, or regulation (including this Code); or

3. The applicant has not satisfied each and every requirement of this Chapter and Code; or

4. The applicant is not in compliance with applicable State law, including, but not limited to, applicable requirements and minimum standards of the Adult Use of Marijuana Act of 2016 (AUMA) (Proposition 64), the Medicinal and Adult-Use Cannabis Regulation and Safety Act of 2017 (MAUCRSA) and any applicable State regulations.

E. Based on the information set forth in the application and the Director’s review, the Director may impose, as a condition of being deemed compliant and thereby eligible for review by the Cannabis Permit Committee, reasonable terms and conditions on the use of the permit, in addition to those specified in this Chapter, to ensure the safe operation of the commercial cannabis operation, and to ensure the health, safety and welfare of the residents and visitors of the City of Carson.

F. At the Director’s sole discretion, the time limits in this Section may be extended upon written notification from the Director to the applicant.

G. If the Director makes a positive determination that the application is deemed compliant, then the Cannabis Permit Committee will review the thoroughness of applicant’s adherence to the following criteria for purposes of preparing a written Merit List to be provided to the City Council. Factors to be considered shall include the Merit List, as well as all pertinent evidence timely submitted (at the determination of the Cannabis Permit Committee) by the applicant, the public, and interested parties. No predetermined weight shall be given to one (1) criterion over another. Each application shall be considered in its totality with weight given to one (1) criterion over another as determined appropriate by the Cannabis Permit Committee to further the maintenance and promotion of the health, safety and welfare of the residents and visitors of the City of Carson. A Merit List report shall detail and rank in writing the thoroughness of an applicant’s adherence to the following criteria, as they relate to the maintenance and promotion of the health, safety and welfare of the residents and visitors of the City of Carson:

1. Operation plan for the business, including attention to community concerns about the impact of the business.

2. Security plan for the business, including details for the nondiversion of cannabis or cannabis products to illegal uses.

3. Health and safety plan for the business, including enhanced product and operations health and safety (e.g., use of pesticides, sanitation, disposal of waste products).

4. Impact on the environment (e.g., refuse disposal, utility usage).

5. Neighborhood compatibility (e.g., compatibility with surrounding uses).

6. Employment opportunities for City of Carson residents.

7. Economic benefits to the City of Carson.

8. Community benefits to the City of Carson, including but not limited to plans for community engagement and programs.

9. Experience of the operators, managers and employees, including professional backgrounds (e.g., horticulture, chemistry).

10. Capitalization of the business.

11. Educational plans (e.g., youth anti-drug programs).

12. Promotion of equitable business ownership and employment opportunities which decrease disparities for marginalized communities, and address for marginalized communities the disproportionate impact of past criminalization of cannabis activities which are now lawful under State law.

13. Requirements of this Chapter, this Code and applicable State law.

14. Any additional criteria the Cannabis Permit Committee determines is of benefit to making a determination of the applicant’s commitment to the health, safety and welfare of the residents and visitors of the City of Carson.

H. Upon conclusion of this review, the Cannabis Permit Committee shall make a recommendation in writing to the City Council as to whether or not a permit should be issued. The recommendation shall articulate reasons for the recommendation and refer to Merit List criteria. (Ord. 17-1637, § 2)

615090 Issuance of Commercial Cannabis Operation Permit.

A. Issuance of a commercial cannabis operation permit constitutes a revocable privilege and shall not create or establish any vested rights for the development or use of a property. The City may determine that it is in the best interests of the health, safety and welfare of the residents and visitors of the City of Carson that no commercial cannabis operation permits are to be granted by the City.

B. Upon receipt by the City Council of a Merit List from the Cannabis Permit Committee, the City Council shall make a final written determination at a properly noticed public meeting of the City Council, within a reasonable amount of time after receipt from the Cannabis Permit Committee of a recommendation, whether the applicant shall be issued a commercial cannabis operation permit.

1. Factors to be considered shall include the written Merit List, as well as all pertinent evidence timely submitted (at the determination of the City Council) by the applicant, the public, and interested parties. No predetermined weight shall be given to one (1) criterion over another.

2. Each application shall be considered in its totality with weight given to one (1) criterion over another as determined appropriate by the City Council to further the maintenance and promotion of the health, safety and welfare of the residents and visitors of the City of Carson.

3. Notice of the written determination shall be provided promptly to the applicant upon final determination. The determination shall articulate reasons in writing for the final determination and refer to Merit List criteria. The determination shall be final and not appealable.

C. The City Council may impose reasonable terms and conditions on the use of the permit, in addition to those specified in this Chapter, to ensure the safe operation of the commercial cannabis operation, and to ensure the health, safety and welfare of the residents and visitors of the City of Carson.

D. As determined appropriate by the City, multiple qualified applications for commercial cannabis operation permits may be considered at the same time, for reasons including but not limited to comparison of applicants for limited permits using the criteria contained within CMC 615080(G). The permit process timelines provided by this Chapter may be modified by the City to facilitate such review of multiple applications. (Ord. 17-1637, § 2)

615100 Development Agreement.

Prior to operating in the City and issuance of a certificate of occupancy, in addition to the issuance of a commercial cannabis operation permit, each commercial cannabis operation shall apply for and enter into a development agreement with the City setting forth the terms and conditions under which the commercial cannabis operation will operate that are in addition to the requirements of this Chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety, and welfare. The procedures for development agreements will comply with this Chapter, the Carson Municipal Code and California Government Code Title 7, Division 1, Chapter 4, Article 2.5.

A. Filing Requirements.

1. Only a qualified applicant may file an application to enter into a development agreement. A qualified applicant is a person who has been issued a commercial cannabis operation permit, who has been issued the required equivalent State license issued under Business and Professions Code Division 10, and has a legal or equitable interest in the real property of the commercial cannabis operation site. The qualified applicant shall provide proof of a commercial cannabis operation permit, ownership interest, proof of interest in the real property, and proof of the authority of the agent or representative to act for the applicant. Said proof of interest and proof of authority shall be subject to review and approval by the City Attorney.

2. The Director shall prescribe the form for each application, notice and documents provided for or required under these regulations for the preparation and implementation of development agreements. The applicant shall complete and submit such an application form to the Director, along with a deposit for the estimated direct and indirect costs of processing the development agreement. The applicant shall deposit any additional amounts for all costs and fees to process the development agreement, including all legal fees, within fifteen (15) days of request by the Director. Upon either completion of the application process or withdrawal of the application, the City shall refund any remaining deposited amounts in excess of the costs of processing.

3. The Director shall require an applicant to submit such information and supporting data as the Director considers necessary to process the application, including but not limited to a community benefit assessment to evaluate the benefits the development agreement will provide to the community.

B. Processing and Requirements.

1. The Director shall endorse on the application the date it is received. An application or related document shall not be complete until an estimated deposit for the cost of processing has been paid to the City. If within thirty (30) days of receiving the application the Director finds that all required information has not been submitted or the application is otherwise incomplete or inaccurate, the processing of the application and the running of any limits shall be suspended upon written notice to the applicant and a new thirty (30) day period shall commence once the required material is received by the Director. If the Director finds that the application is complete it shall be accepted for filing and the applicant so notified. The Director shall review the application and determine the additional requirements necessary to complete processing of the agreement. After receiving the required information and the application is determined to be complete, the Director shall prepare a staff report and recommendation to the Planning Commission and City Council stating whether or not the agreement as proposed or in an amended form would be consistent with policies of the City, this Chapter and any applicable general or specific plan. The City Attorney shall review the proposed development agreement as to legal form.

2. Notice of a hearing regarding the development agreement shall be given by the Director and shall comply with the requirements of California Government Code Section 65867, as may be amended, as well as in the manner set forth in CMC 9173.22.

3. The Planning Commission shall review the proposed development agreement and provide a recommendation to the City Council to approve, approve with modifications or deny the proposed development agreement. If the Planning Commission fails to take action within sixty (60) days of opening the hearing on the matter, such failure shall be deemed to have made a recommendation of denial to the City Council unless the applicant has requested an extension of time, either in writing or on the record, which has been approved by the Planning Commission prior to the running of the sixtieth day.

4. The proposed development agreement shall be set for hearing and consideration before the Council within sixty (60) days of the recommendation of the Planning Commission, unless the applicant agrees in writing to an extension of time with the Director prior to the matter being heard by the Council.

5. Within ten (10) calendar days after the City enters into the development agreement, the City Clerk shall have the agreement recorded with the County Recorder. If the parties to the agreement or their successors in interest amend or cancel the agreement as provided in California Government Code Section 65868, or if the City terminates or modifies the agreement as provided in California Government Code Section 65865.1 for failure of the applicant to comply in good faith with the terms or conditions of the agreement, the City Clerk shall have notice of such action recorded with the County Recorder.

C. Findings and Development Agreement Conditions. After the City Council completes the public hearing, the Council may not approve the development agreement unless it finds that the provisions of the agreement:

1. Are consistent with the goals, objectives, and policies of the general plan and any applicable specific plan;

2. Are compatible with the uses authorized in and the regulations prescribed for the zoned district in which the real property is located;

3. Will not be detrimental to the health, safety, environmental quality, and general welfare of the community;

4. Will not adversely affect the orderly development of property or the preservation of property values; and

5. Provides for a reasonable penalty for any violation of the development agreement.

D. Modifications and Extensions.

1. The provisions of California Government Code Section 65868 shall apply for all modifications, extensions or other amendments of the terms of a development agreement subject to this Chapter.

2. Either party may propose an amendment or termination of an approved development agreement subject to the following:

a. The procedure for amending or terminating the development agreement is the same as the procedure for entering into an agreement in the first instance.

b. The development agreement may be amended or canceled only by the mutual consent of the parties, as provided in California Government Code Section 65868.

3. Nothing herein shall limit the City’s ability to terminate or modify the agreement consistent with California Government Code Section 65865.1 or 65865.3 as may be amended. (Ord. 17-1637, § 2)

615110 Renewal of Commercial Cannabis Operation Permit.

A. Issuance of a commercial cannabis operation permit constitutes a revocable privilege and shall not create or establish any vested rights for the development or use of a property. The City may determine through the procedures provided in this Chapter that for reasons of the health, safety and welfare of the residents and visitors of the City of Carson that a commercial cannabis operation permit will not be renewed.

B. Commercial cannabis operation permits issued pursuant to this Chapter shall automatically expire one (1) year from the date of issuance, unless specifically provided for otherwise by this Chapter.

C. The following procedures shall govern the process for the renewal of a commercial cannabis operation permit:

1. A holder of a commercial cannabis operation permit may apply for the renewal of an existing permit no less than sixty (60) days prior to the permit’s expiration date upon a form provided by the City and shall pay a filing fee as established by resolution adopted by the City Council as amended from time to time.

2. Renewal applications shall comply with all of the requirements and procedures provided for by this Chapter for applying for a new commercial cannabis operation permit. At the discretion of the City, renewal applications may consist of updating any changes to an original application or previous renewal application, or a similar method of streamlining the process.

3. The Director will review permit renewal applications and make a determination as to whether the commercial cannabis operation has remained in compliance with all the requirements of this Chapter and State law during the prior term of the permit. If the Director makes a contrary determination, the application for a permit renewal shall be denied.

4. If the Director determines the commercial cannabis operation has remained in compliance with all the requirements of this Chapter and State law during the prior term of the permit, the permit renewal application shall be granted.

5. If the holder of a commercial cannabis operation permit files a renewal application less than sixty (60) days prior to expiration, the holder must provide a written explanation detailing the circumstances surrounding the late filing. The Director may deny the untimely application after review of the explanation. If the Director accepts the application, then the Director may elect to administratively extend the permit beyond the expiration date while the Director completes the renewal permitting process. Untimely applications for renewal which are nevertheless accepted by the Director pursuant to this Section are subject to a late penalty.

D. A commercial cannabis operation permit is immediately invalid upon expiration if the permit holder has not filed a timely and/or accepted renewal application and remitted all of the required renewal fees. In the event the permit is not renewed prior to expiration, the affected commercial cannabis operation shall cease operation upon the expiration of the permit and is thereafter considered to be unlawful. (Ord. 17-1637, § 2)

615120 General Operating Standards and Restrictions.

A commercial cannabis operation shall operate in conformance with the following minimum standards, and such standards shall be deemed to be part of the conditions on the permit for a commercial cannabis operation to ensure that its operation is in compliance with California law and the Carson Municipal Code, and to mitigate any potential adverse impacts of the commercial cannabis operation on the public health, safety or welfare.

Additional minimum standards may be adopted from time to time either by resolution or ordinance from the City Council, or by the Director (upon authorization by resolution from the City Council).

A. State Standards. All State requirements and regulations that govern the operation of a commercial cannabis operation, including but not limited to ones related specifically to certain types of commercial cannabis operations, shall apply as minimum requirements and regulations for commercial cannabis operations within the City of Carson, in addition to the requirements and regulations of this Chapter and this Code.

B. Security.

1. General. All cannabis, cannabis products and cash present or kept at the premises shall be securely stored against both unauthorized access as well as theft.

2. Licensed Security Guard.

a. No less than two (2) armed security guards shall be present at the location of the commercial cannabis operation at all times.

b. All security guards shall be licensed by and in good standing with the Bureau of Security and Investigative Services (BSIS) of the California Department of Consumer Affairs.

c. All security guards shall be armed with a firearm and a baton, and possess at all times a valid and current firearms permit and baton permit issued by the BSIS.

d. At the determination of the Director in consultation with the Police Captain, further use of, and requirements for, security guards may be required of permittee.

3. Security Cameras.

a. Security cameras shall be installed and maintained in good condition, with at least thirty (30) days of digitally recorded documentation in a format approved by the Director and the Police Captain.

b. The camera and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present at the site of the commercial cannabis operation.

c. The cameras shall be in continuous use twenty-four (24) hours per day, seven (7) days per week.

d. The recording system must be capable of exporting the recorded video in standard MPEG formats (or formats approved or required by the Director) to another common medium approved by the Director, such as DVD and/or a USB drive.

e. The areas to be covered by the security cameras include, but are not limited to, the storage areas, operation areas, all doors and windows, the parking lot, all exterior sides of the property adjacent to the public rights of way, and any other areas as determined by the Director and Police Captain.

f. Remote log-in information will be provided to the Operations Officers to allow them to view live and recorded security camera images remotely at any time.

4. Alarm System. The location of the commercial cannabis operation shall be alarmed with a centrally monitored fire and burglar alarm system and monitored by an alarm company properly licensed by the State of California Department of Consumer Affairs Bureau of Security and Investigative Services in accordance with California Business and Professions Code Section 7590, et seq. and whose agents are properly licensed and registered under applicable law, all subject to approval by the Director.

5. Locked Entrances. All entrances into the building housing a commercial cannabis operation shall be locked from the exterior at all times with entry controlled by employees.

6. Windows. All windows on the building that houses the commercial cannabis operation shall be secured against entry from the outside.

7. No employee shall refuse, impede, obstruct or interfere with an inspection conducted pursuant to the authorizations provided by this Chapter.

C. Odors.

1. A commercial cannabis operation shall have an air treatment system that ensures off-site odors shall not result from its activities.

2. This requirement at a minimum means that the commercial cannabis operation shall be designed to provide sufficient odor-absorbing ventilation and exhaust systems so that any odor generated inside the location of the commercial cannabis operation is not detected outside the building, on adjacent properties or public rights-of-way, or within any other unit located within the same building as the commercial cannabis operation, if the use only occupies a portion of a building.

D. Authorizations.

1. The Operations Officers shall have the right to enter all areas of the commercial cannabis operation from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this Chapter and all laws of the City and State of California.

2. Recordings made by security cameras required pursuant to this Chapter shall be made immediately available to an Operations Officer within twenty-four (24) hours of verbal request; no search warrant or subpoena shall be needed to obtain and view the recorded materials.

E. Records.

1. Commercial cannabis operations shall maintain on site the following records either in paper or electronic form:

a. The full name, address, and telephone numbers of the owner and lessee of the property.

b. The name, date of birth, address, and telephone number of each employee of the commercial cannabis operation; the date each was hired; and the nature of each employee’s participation in the commercial cannabis operation.

c. Copies of all required State licenses.

d. An inventory record documenting the dates and amounts of cannabis and cannabis products received at the site, the daily amounts of cannabis and cannabis products on the site, and the daily amounts of cannabis and cannabis products leaving the site for any reason, including but not limited to being sold, delivered, or distributed.

e. A written accounting of all expenditures, costs, revenues and profits of the commercial cannabis operation, including but not limited to cash and in-kind transactions.

f. A copy of all insurance policies related to the operation of the commercial cannabis operation.

g. A copy of the commercial cannabis operation’s most recent year’s financial statement and tax return.

h. Proof of a valid and current permit issued by the City in accordance with this Chapter, and the equivalent State of California license to operate the commercial cannabis operation. Every commercial cannabis operation shall display at all times during business hours the City permit issued pursuant to the provisions of this Chapter, and the equivalent State license, in a conspicuous place so that it may be readily seen by all persons entering the location of the commercial cannabis operation.

2. All records required to be maintained by the commercial cannabis operation must be maintained for no less than three (3) years and are subject to immediate inspection (consistent with requirements pertaining to patient confidentiality pursuant to applicable State and Federal law) upon a lawful written request by an Operation Officer.

3. A commercial cannabis operation shall report any loss, damage, or destruction of these records to the Operation Officers within twenty-four (24) hours of the loss, damage, or destruction.

F. Site Management.

1. Commercial cannabis operations shall not result in a nuisance or adversely affect the health, welfare, or safety of nearby persons by creating dust, glare, heat, noise, noxious gases, odors, smoke, traffic, vibration, or other impacts, or be hazardous due to use or storage of materials, processes, products or waste. The permittee shall promptly and diligently both prevent as well as eliminate conditions on the site of the commercial cannabis operation that constitute a nuisance.

2. The commercial cannabis operation permittee shall maintain the exterior of the site, including any parking lots under the control of the permittee, free of litter, debris, and trash.

3. The commercial cannabis operation permittee shall properly store and dispose of all waste generated on the site, including chemical and organic waste, in accordance with all applicable laws and regulations.

4. Notwithstanding any provisions of this Code to the contrary, the commercial cannabis operation permittee shall remove all graffiti from the site and parking lots under the control of the commercial cannabis operation permittee within twenty-four (24) hours of its application.

G. State Board of Equalization Seller’s Permit Required.

1. Commercial cannabis operations must obtain a Seller’s Permit from the State Board of Equalization as applicable.

2. Such permit shall be displayed in a conspicuous place so that it may be readily seen by all persons entering the location of the commercial cannabis operation.

H. Employees.

1. All employees must submit to fingerprinting and criminal background checks by the City.

a. No employee convicted within the last ten (10) years of a felony substantially related to the qualifications, functions or duties of an employee of a commercial cannabis operation (such as a felony conviction for distribution of controlled substances, money laundering, racketeering, etc.) shall be employed by a commercial cannabis operation, unless such employee has obtained a certificate of rehabilitation (expungement of felony record) under California law or under a similar Federal statute or state law where the expungement was granted.

b. At the request of the commercial cannabis operation, the Director and Police Captain shall determine the applicability of a waiver of this Section to a potential employee for good cause within a reasonable period of time after a written request has been made to the Director and Police Captain for such determination.

2. All employees must possess a valid government-issued (or equivalent) form of identification containing an identifying photograph of the employee, the name of the employee, the date of birth of the employee, and the residential address of the employee. Color copies of such identification shall be maintained at the location of the commercial cannabis operation. A valid California driver’s license will satisfy this requirement.

I. Cannabis Transfer Between Permitted Operations Only. A commercial cannabis operation shall not transfer cannabis or cannabis products to or from another commercial cannabis operation, unless both operations are in possession of all required State and local licenses and permits.

J. Commercial Cannabis Operation Signage.

1. Signs on the premises shall not obstruct the entrance or the video surveillance system. The size, location, and design of any signage must conform to the sign provisions in the Carson Municipal Code.

2. Business identification signage shall be limited to that needed for identification only, consisting of a single window sign or wall sign that shall comply with the appropriate sign requirements within the applicable zoning district.

K. Prohibited Personal Activities.

1. Cannabis Use. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within twenty (20) feet of, the site of the commercial cannabis operation.

2. Alcohol Use. No person shall possess, consume, or store any alcoholic beverage on the site of the commercial cannabis operation.

L. No Minors. No minor shall be an employee of, or participate in, a commercial cannabis operation in any capacity, including, but not limited to, as a manager, employee, contractor, adviser, or volunteer.

M. Exterior Lighting. The exterior of the premises upon which the commercial cannabis operation is operated shall be equipped with and, at all times between sunset and sunrise, shall remain illuminated with fixtures of sufficient intensity and number to illuminate every portion of the property with an illumination level of not less than one (1) foot-candle as measured at the ground level, including, but not limited to, landscaped areas, parking lots, driveways, walkways, entry areas, and refuse storage areas.

N. Building Design. A commercial cannabis operation permittee must maintain the design of the buildings on the site in accordance with the plans that are approved by the City pursuant to this Chapter and otherwise approved by the City. No permittee shall modify the buildings on the site contrary to the approved plans, without the approval of the Director.

O. Nuisance. The commercial cannabis operation permittee shall take all reasonable steps to discourage and correct conditions that constitute a nuisance in parking areas, sidewalks, alleys and areas surrounding the premises and adjacent properties during business hours if related to the members of the subject commercial cannabis operation.

1. “Reasonable steps” shall include immediately calling the police upon observation of the activity, and requesting that those engaging in activities that constitute a nuisance or are otherwise illegal to cease those activities, unless personal safety would be threatened in making the request.

2. “Nuisance” includes but is not limited to disturbances of peace, open public consumption of cannabis, alcohol or controlled substances, excessive pedestrian or vehicular traffic, including the formation of any pedestrian lines outside the building, illegal drug activity, harassment of passersby, excessive littering, excessive loitering, illegal parking, excessive loud noises, especially late at night or early in the morning hours, lewd conduct or police detentions and arrests.

P. Insurance. The commercial cannabis operation permittee shall maintain insurance coverage in amounts satisfactory to the Director which evidence compliance with all applicable insurance requirements as provided for by this Chapter, local law and State law. Minimum insurance levels shall be determined by the Director after an assessment of the risks posed by the commercial cannabis operation, including provision for meeting the requirements of CMC 615080(C)(2).

Q. Upon and after receiving possession of a commercial cannabis operation permit as provided for in this Chapter, the commercial cannabis operation permit holder shall:

1. Update the Director in writing within seven (7) days upon the change in status of any of the information previously submitted to the City concerning the commercial cannabis operation, including but not limited to when there is any change in the address, email, phone number, or other identifying information, previously provided to the City in compliance with this Chapter, for any owner, manager, community outreach manager, property owner, or legal representative of the commercial cannabis operation.

2. Maintain continuing compliance with criminal background check requirements of this Chapter by ensuring that:

a. Upon the hiring, association or retention of an employee by the commercial cannabis operation, the requirements of CMC 615070(B)(2)(d) are immediately met for such employee by provision of appropriate documentation to the Director; and

b. The Director and Police Captain are immediately informed in writing of any felony conviction as described in CMC 615120(H)(1)(a) for any current employee.

3. Maintain continuing compliance with all applicable insurance requirements, including, but not limited to, those imposed by this Chapter, local law and State law.

R. Exemption. The regulations contained in this Chapter shall not apply to a commercial cannabis operation engaged in the following uses, as long as such use complies strictly with applicable law, including this Code, regulating such use and the location of such use, including, but not limited to, Health and Safety Code Section 11362.5, et seq.; a clinic licensed pursuant to Health and Safety Code Division 2, Chapter 1; a health care facility licensed pursuant to Health and Safety Code Division 2, Chapter 2; a residential care facility for persons with chronic life-threatening illness licensed pursuant to Health and Safety Code Division 2, Chapter 3.01; a residential care facility for the elderly licensed pursuant to Health and Safety Code Division 2, Chapter 3.2; and, a residential hospice or a home health agency licensed pursuant to Health and Safety Code Division 2, Chapter 8. (Ord. 17-1637, § 2)

615130 Cultivation Operating Standards and Restrictions.

A commercial cannabis operation engaged in indoor or mixed-light cultivation shall operate in conformance with both the general operating standards and restrictions provided for in CMC 615120, as well as the following minimum standards, and such standards shall be deemed to be part of the conditions of the permit for an indoor or mixed-light cultivation commercial cannabis operation to ensure that its operation is in compliance with California law and the Carson Municipal Code, and to mitigate any potential adverse impacts of the commercial cannabis operation on the public health, safety or welfare.

Additional minimum standards may be adopted from time to time either by resolution or ordinance from the City Council, or by the Director (upon authorization by resolution from the City Council).

A. City Permit and State License. No person shall engage in indoor or mixed-light cultivation without both a current and valid City commercial cannabis operation permit issued for indoor or mixed-light cultivation as well as a current and valid equivalent State license as provided for under Business and Professions Code Division 10, and as may be amended.

B. State Standards. All State requirements and regulations that govern cultivation operations, including but not limited to the regulations promulgated by the California Department of Food and Agriculture, and as may be amended, shall apply as minimum requirements and regulations for cultivation commercial cannabis operations within the City of Carson, in addition to the requirements and regulations of this Chapter and this Code.

C. Location Restrictions.

1. No cultivation operation shall locate or operate in any zone of the City of Carson, other than in industrial or commercial zones.

2. No cultivation operation shall locate within seven hundred fifty (750) feet of a school, day care center, youth center, park, library, hotel or regional shopping mall. The distance shall be measured as the shortest horizontal distance measured in a straight line from the property line of one (1) site to the property line of another site.

D. Permits. Pursuant to Business and Professions Code Section 26053(c), a cultivation permit holder may hold one (1) or more of the following State license types as provided for in Business and Professions Code Section 26050:

1. Type 1A = Cultivation; specialty indoor; small.

2. Type 1B = Cultivation; specialty mixed-light; small.

3. Type 2A = Cultivation; indoor; small.

4. Type 2B = Cultivation; mixed-light; small.

5. Type 3A = Cultivation; indoor; medium.

6. Type 3B = Cultivation; mixed-light; medium.

7. Type 4 = Cultivation; nursery.

8. Type 5A = Cultivation; indoor; large.

9. Type 5B = Cultivation; mixed-light; large.

E. Water.

1. The water supply shall be sufficient for the operations intended, shall comply with all State regulations, and shall be derived from a source that is a regulated water system. Private water supplies shall be derived from a water source that is capable of providing a safe, potable, and adequate supply of water to meet the facility’s needs.

2. Plumbing shall be of adequate size and design and adequately installed and maintained to carry sufficient quantities of water to required locations throughout the plant and that shall properly convey sewage and liquid disposable waste from the facility. There shall be no cross-connections between the potable and waste water lines.

F. Sanitation.

1. The permittee shall establish and implement written procedures that maintain the highest industry standards of sanitation and cleanliness for the operation so as to ensure at all times cannabis remains free of harmful contaminants, including but not limited to pesticides, mold and fungus.

2. Litter and waste shall be properly removed and the operating systems for waste disposal shall be maintained in an adequate manner so that they do not constitute a source of contamination in areas where cannabis is exposed.

3. Floors, walls, and ceilings shall be constructed in such a manner that they may be adequately cleaned and kept clean and kept in good repair.

G. Site Requirements. The site shall comply with the following requirements:

1. Visibility. No cannabis shall be visible from the public right-of-way, the unsecured areas surrounding the buildings on the site, or the site’s main entrance and lobby.

2. Main Entrance and Lobby. The site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the cultivation commercial cannabis operation areas. Members of the general public shall not be allowed in the cultivation commercial cannabis operation areas except for reasons of lawful business.

3. Cultivation Area. All cultivation areas in any building on the site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to employees of the permittee.

4. Storage Area. Each building with a cultivation area shall have adequate storage space for cannabis that has completed the cultivation process or is otherwise not being cultivated. The storage areas shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to employees of the permittee.

5. Secure Product. All cannabis, whether being cultivated or otherwise, at the site shall be kept in a secured manner at all times so as to deter theft and unauthorized access.

6. Transport Area. Each building with a cultivation area shall have an area designed for the secure transfer of cannabis from the cultivation area to a vehicle for transportation.

7. Lighting. Sufficient lighting must be used in all areas where cannabis is cultivated and stored, and where equipment or utensils are cleaned, so that at all times the items and activities in these areas are fully visible to both any security cameras covering the areas as well as the naked eye.

H. Training. The permittee shall establish and implement written procedures that provide for the highest industry standards of training for employees engaged in cultivation operations.

I. Signs. A permittee shall display conspicuously in the lobby of the site the following signs, so that each sign may be readily seen by persons entering the site, and each sign must be at least eight (8) inches by ten (10) inches in size:

1. “This site is not open to the public.”

2. “Retail sales of any goods and services is prohibited”

3. “Minors are prohibited from entering this site.”

4. “Smoking, ingesting, or consuming cannabis on or within 20 feet of this site is prohibited.”

J. Restricted Access.

1. The site shall be closed to the general public. No one shall be allowed on the cultivation site, except for employees, or persons with a bona fide business or regulatory purpose for being on the site, such as contractors or inspectors.

2. Minors are prohibited at all times from entering the location of the site. (Ord. 17-1637, § 2)

615140 Testing Operating Standards and Restrictions.

A commercial cannabis operation engaged in testing shall operate in conformance with both the general operating standards and restrictions provided for in CMC 615120, as well as the following minimum standards, and such standards shall be deemed to be part of the conditions of the permit for a testing commercial cannabis operation to ensure that its operation is in compliance with California law and the Carson Municipal Code, and to mitigate any potential adverse impacts of the commercial cannabis operation on the public health, safety or welfare.

Additional minimum standards may be adopted from time to time either by resolution or ordinance from the City Council, or (upon authorization by resolution from the City Council) by the Director.

A. City Permit and State License. No person shall engage in testing without both a current and valid City commercial cannabis operation permit issued for testing as well as a current and valid equivalent State license as provided for under Business and Professions Code Division 10, and as may be amended.

B. State Standards. All State requirements and regulations that govern testing operations, including but not limited to regulations promulgated by the State Department of Public Health, and as may be amended, shall apply as minimum requirements and regulations for testing commercial cannabis operations within the City of Carson, in addition to the requirements and regulations of this Chapter and this Code.

C. Location Restrictions.

1. No testing operation shall locate or operate in any zone of the City of Carson, other than in industrial or commercial zones.

2. No testing operation shall locate within seven hundred fifty (750) feet of a school, day care center, youth center, park, library, hotel or regional shopping mall. The distance shall be measured as the shortest horizontal distance measured in a straight line from the property line of one site to the property line of another site.

D. Independent. Permittees shall be independent from all other persons and entities involved in commercial cannabis operations.

E. Health and Safety; Director Approval.

1. General.

a. Testing operations before commencing operation, and as a continuing prerequisite to continuing operations, shall receive, and maintain, written approval from the Director that any closed-loop system, equipment used and the testing facilities in general, all meet or exceed appropriate health and safety standards as determined by the Director.

b. These health and safety standards include any required fire, safety and building code requirements specified in the California Fire Code, the National Fire Protection Association (NFPA) standards, the International Building Code (IBC), the International Fire Code (IFC), and any other applicable standards, including complying with all applicable fire, safety, and building codes in processing, handling, and storage of solvents or gases.

2. Fire Safety Plan.

a. Testing operations shall not commence until written approval is received from the Director for a completed fire safety plan for the operation.

b. An application for a renewal of a testing commercial cannabis operation permit shall not be approved until an inspection of the site occurs by the Director which affirms that both the operation remains in compliance with the approved fire safety plan (or an amended fire safety plan as determined by the Director) and that any further actions that need to be taken in the determination of the Director are taken to ensure that all applicable and necessary health and safety requirements are met.

3. Certified Industrial Hygienist (CIH).

a. The permittee must provide for, maintain, and follow a detailed plan prepared by a CIH, and approved by the Director, to ensure the appropriate health and safety procedures including, but not limited to, procedures necessary to control hazards, for use of proper protective equipment, product safety, compliance with Cal/OSHA limits, provide specifications for ventilation controls, and ensure environmental protections, are adopted and used by the operation on a continuing basis.

b. The Director shall establish further written requirements for the plan, including but not limited to required inspections by the CIH and a hazardous materials management plan. Upon reasonable determination by the Director the permittee shall be required to update or amend the approved plan to the satisfaction of the Director.

4. UL (Underwriters Laboratories) Listed. All testing devices and equipment used by the operation must be UL listed, or otherwise approved for the intended use by the Director.

5. Hazardous Materials. All hazardous material used, generated or associated with the operation must be disposed of in a manner which is approved by the Director before disposal occurs, and which is compliant with all local, State and Federal guidelines for the disposal of hazardous materials.

6. Waste Treatment System. The permittee must provide for and maintain a waste treatment system which is approved by the Director so as to prevent contamination in areas where cannabis or cannabis products may be exposed to such a system’s waste or waste by-products.

F. Operation Requirements. The testing operation shall be subject to all applicable regulations developed (including as modified) by the State of California for commercial cannabis testing operations, and shall comply with the following requirements:

1. Conduct all testing in a manner pursuant to Business and Professions Code Section 26100, and as amended, subject to State and local law.

2. Conduct all testing in a manner consistent with general requirements for the competence of testing and calibration activities, including sampling using verified methods.

3. Obtain and maintain ISO/IEC 17025 accreditation as required by the State.

4. Destroy the remains of the sample of cannabis or cannabis products upon the completion of analysis as determined by the State through regulations.

5. Dispose of any waste by-product resulting from testing operations in the manner required by State and local laws and regulations.

G. Site Requirements. The site shall comply with the following requirements:

1. Indoor Testing Only. All testing shall occur in a fully enclosed building.

2. Fire Sprinklers. The site shall be equipped with an automatic fire sprinkler system, in accordance with NPFA 13, California Fire Code (Section 903), and the Carson Municipal Code with zero (0) square foot requirement.

3. Visibility. Neither cannabis, cannabis products nor visible exterior evidence of any testing activity, shall be visible from the public right-of-way, the unsecured areas surrounding the buildings on the site, or the site’s main entrance and lobby.

4. Main Entrance and Lobby. The site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the testing areas.

5. Secure Product. All cannabis and cannabis products at the site shall be kept in a secured manner at all times.

6. Testing Area. All testing areas in any building on the site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to employees of the cannabis manufacturing permittee.

7. Transport Area. Each building with a testing area shall have an area designed for the secure transfer of cannabis from a vehicle to the testing area.

8. Storage Area. Each building with a testing area shall have adequate storage space for cannabis that has been tested or is waiting to be tested. The storage areas shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to employees of the permittee.

H. Sanitation. The permittee shall establish and implement written procedures that maintain the highest industry standards of sanitation and cleanliness for the operation so as to ensure the cannabis tested remains free of harmful contaminants.

I. Training. The permittee shall establish and implement written procedures that provide for the highest industry standards of training for employees engaged in testing operations.

J. Signs. A permittee shall display conspicuously in the lobby of the site the following signs, so that each sign may be readily seen by persons entering the testing site, and each sign must be at least eight (8) inches by ten (10) inches in size:

1. “This site is not open to the public.”

2. “Retail sales of any goods and services is prohibited.”

3. “Minors are prohibited from entering this site.”

4. “Smoking, ingesting, or consuming cannabis on or within 20 feet of this site is prohibited.”

K. Restricted Access.

1. The site shall be closed to the general public. No one shall be allowed on the testing site, except for employees, or persons with a bona fide business or regulatory purpose for being on the site, such as contractors or inspectors.

2. Minors are prohibited at all times from entering the location of the site. (Ord. 17-1637, § 2)

615150 Wholesale Distribution Operating Standards and Restrictions.

A commercial cannabis operation engaged in distribution shall operate in conformance with both the general operating standards and restrictions for all commercial cannabis operations provided for in CMC 615120, as well as with the following minimum standards, and such standards shall be deemed to be part of the conditions of the permit for a distribution commercial cannabis operation to ensure that its operation is in compliance with California law and the Carson Municipal Code, and to mitigate any potential adverse impacts of the commercial cannabis operation on the public health, safety or welfare.

Additional minimum standards may be adopted from time to time either by resolution or ordinance from the City Council, or by the Director (upon authorization by resolution from the City Council).

A. City Permit and State License. No person shall engage in distribution without both a current and valid City commercial cannabis operation permit issued for distribution as well as a current and valid equivalent State license as provided for under Business and Professions Code Division 10, and as may be amended.

B. State Standards. All State requirements and regulations that govern distribution operations, including but not limited to the regulations promulgated by the California Bureau of Cannabis Control within the Department of Consumer Affairs, and as may be amended, shall apply as minimum requirements and regulations for distribution commercial cannabis operations within the City of Carson, in addition to the requirements and regulations of this Chapter and this Code.

C. Location Restrictions.

1. No distribution operation shall locate or operate in any zone of the City of Carson, other than in industrial or commercial zones.

2. No distribution operation shall locate within seven hundred fifty (750) feet of a school, day care center, youth center, park, library, hotel or regional shopping mall. The distance shall be measured as the shortest horizontal distance measured in a straight line from the property line of one site to the property line of another site.

D. Distribution Restrictions.

1. Distribution operations shall distribute cannabis and cannabis products only between licensed cannabis commercial operations.

2. Distribution operations shall not conduct retail sales of cannabis or cannabis products.

3. Distribution operations shall not distribute any cannabis or cannabis products to retail operations unless such cannabis or cannabis products have been properly tested and approved for retail sale pursuant to State law.

4. Upon demand by any Operations Officer a distributor shall make immediately available copies of any required shipping manifests as understood by Business and Professions Code Section 26070(f).

E. Site Requirements. The site shall comply with the following requirements:

1. Visibility. Neither cannabis nor cannabis products shall be visible from the public right-of-way, the unsecured areas surrounding the buildings on the site, or the site’s main entrance and lobby.

2. Main Entrance and Lobby. The site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the distribution commercial cannabis operation areas. Members of the general public shall not be allowed in the distribution commercial cannabis operation areas except for reasons of lawful business.

3. Secure Product. All cannabis and cannabis products at the site shall be kept in a secured manner at all times.

4. Transport Area. Each building with a storage area shall have an area designed for the secure transfer of cannabis from vehicles to the storage area.

5. Storage Area. Each building shall have adequate storage space for cannabis. The storage areas shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to employees of the permittee.

F. Sanitation. The permittee shall establish and implement written procedures that maintain the highest industry standards of sanitation and cleanliness for the operation so as to ensure the distribution of cannabis and cannabis products free of harmful contaminants.

G. Training. The permittee shall establish and implement written procedures that provide for the highest industry standards of training for employees engaged in distribution operations.

H. Signs. A permittee shall display conspicuously in the lobby of the site the following signs, so that each sign may be readily seen by persons entering the site, and each sign must be at least eight (8) inches by ten (10) inches in size:

1. “This site is not open to the public.”

2. “Retail sales of any goods and services is prohibited.”

3. “Minors are prohibited from entering this site.”

4. “Smoking, ingesting, or consuming cannabis on or within 20 feet of this site is prohibited.”

I. Restricted Access.

1. The site shall be closed to the general public. No one shall be allowed on the distribution site, except for employees, or persons with a bona fide business or regulatory purpose for being on the site, such as contractors or inspectors.

2. Minors are prohibited at all times from entering the location of the site. (Ord. 17-1637, § 2)

615160 Manufacturing Operating Standards and Restrictions.

Manufacturing operating standards and restrictions will be developed and promulgated in guidelines to be adopted by resolution of the City Council. (Ord. 17-1637, § 2)

615170 Delivery Operating Standards and Restrictions.

A. Deliveries Allowed. Cannabis deliveries are allowed in the City subject to the requirements of this Chapter and compliance with applicable State law.

B. Licenses and Permits. Deliveries of cannabis and cannabis products shall only occur within the City by a commercial cannabis operation properly licensed or permitted to engage in cannabis deliveries by both the State of California as well as the originating jurisdiction of the delivery.

C. Business License. Commercial cannabis operations that conduct deliveries of cannabis or cannabis products to customers located in the City, regardless of the originating jurisdiction of the delivery, are required to have a valid and current City business license to engage in such commercial activity. (Ord. 17-1637, § 2)

615180 Administration.

Further rules, regulations, procedures and standards for the administration and implementation of this Chapter may be adopted from time to time either by resolution or ordinance from the City Council, by the Director (upon authorization by resolution from the City Council), or as further provided by this Chapter. (Ord. 17-1637, § 2)

615190 Fees.

An application fee set by resolution of the City Council shall be required for formal processing of every application made under this Chapter. The City Council is authorized to pass resolutions to recover any and all fees and costs incurred by the administration and implementation of this Chapter through an appropriate fee recovery mechanism to be imposed upon commercial cannabis operations. (Ord. 17-1637, § 2)

615200 Suspension and Revocation.

A. The Cannabis Permit Committee is authorized to suspend and/or revoke a commercial cannabis operation permit issued pursuant to this Chapter upon the determination through written findings of a failure to comply with any provision of this Chapter, any permit condition, or any agreement or covenant as required pursuant to this Chapter.

B. Prior to suspension or revocation of a commercial cannabis operation permit, the permittee shall be provided with a written notice which details the violation(s). The permittee shall have seven (7) days to cure the violation to the satisfaction of the Cannabis Permit Committee. The seven (7) day cure period may be extended by the Director or the City Council for reasonable cause.

C. The Cannabis Permit Committee may suspend or revoke a commercial cannabis operation permit if any of the following occur, and the suspension or revocation shall be final:

1. The Director determines that the commercial cannabis operation has failed to comply with any aspect of this Chapter, any permit condition, or any agreement or covenant as required pursuant to this Chapter; or

2. The equivalent State license has been suspended or revoked by the State of California; or

3. Operations cease for more than one hundred eighty (180) calendar days (including during any change of ownership, if applicable); or

4. Ownership is changed without securing a new commercial cannabis operation permit; or

5. The commercial cannabis operation fails to maintain required security camera recordings; or

6. The commercial cannabis operation fails to allow inspection of the security recordings, the activity logs, the records, or of the site by Operations Officers pursuant to this Chapter.

D. Conditions (if any) of suspension or revocation are at the discretion of the Director and may include, but are not limited to, a prohibition on all owners, operators, managers and employees of the suspended or revoked commercial cannabis operation from operating within the City for a period of time set forth in writing and/or a requirement (when operations may resume, if at all, pursuant to the Director’s determination) for the holder of the suspended or revoked permit to resubmit an application for a commercial cannabis operation permit pursuant to the requirements of this Chapter. (Ord. 17-1637, § 2)

615210 Violations and Penalties – Public Nuisance.

A. Any violation of the provisions of this Chapter is punishable as a misdemeanor or an infraction, at the discretion of the City Prosecutor, pursuant to Chapter 2 of Article I, except for as preempted by State law; and, any violation of the provisions of this Chapter is subject to administrative citation, at the discretion of the City, pursuant to Chapter 2.5 of Article I.

B. Public Nuisance Abatement.

1. Any commercial cannabis operation that is conducted in violation of any provision of this Chapter is hereby declared to constitute a public nuisance and, as such, may be abated or enjoined from further operation, in accordance with the procedures set forth in Chapter 7 of Article V.

2. All costs to abate such public nuisance, including attorneys’ fees and court costs, shall be paid by the person causing the nuisance, including the commercial cannabis operation permittee and the property owner where the nuisance is occurring.

C. The remedies described in this Section are not mutually exclusive. Pursuit of any one remedy shall not preclude the City from availing itself of any or all available administrative, civil, or criminal remedies, at law or equity.

D. Any violation of the provisions of this Chapter shall constitute a separate offense for each and every day during which such violation is committed or continued. (Ord. 17-1637, § 2)

615220 Service of Notices.

Any notice required by this Chapter is deemed issued and served upon the earliest date that either: the notice is deposited in the United States mail, postage prepaid, addressed to the most recent mailing address provided to the City pursuant to the requirements of this Chapter; or, the date upon which personal service of the notice is provided to a responsible party. (Ord. 17-1637, § 2)

615230 Prohibitions.

A. Any commercial cannabis operation in violation of the Adult Use of Marijuana Act, the Medicinal and Adult-Use of Cannabis Regulation and Safety Act, this Chapter, or any other applicable State law is expressly prohibited.

B. It is unlawful for any commercial cannabis operation in the City, or any agent, employee or representative of such commercial cannabis operation, to permit any breach of peace or any disturbance of public order or decorum by any tumultuous, riotous or disorderly conduct at the site of the commercial cannabis operation. (Ord. 17-1637, § 2)

615240 Nonconforming Use.

No use which purports to have engaged in a commercial cannabis activity of any nature prior to the enactment of this Chapter shall be deemed to have been a legally established use under the provisions of this Code, or any other local ordinance, rule or regulation, and such use shall not be entitled to claim legal nonconforming status. (Ord. 17-1637, § 2)

615250 Severability.

If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Chapter is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Chapter. The City Council of the City of Carson hereby declare that they would have adopted this Chapter and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional. (Ord. 17-1637, § 2)