Chapter 6.58
CANNABIS CAMPUS PILOT PROGRAM
Sections:
6.58.030 Cannabis campus requirements.
6.58.040 Cannabis campus suboperators.
6.58.060 Enforcement and penalties.
6.58.010 Purpose.
A. The purpose and intent of this chapter are to establish a cannabis campus pilot program containing a comprehensive set of regulations with regulatory permits applicable to the operation of cannabis campuses and to protect the health, safety, and welfare of the residents of the city of Patterson. It is the intent of the city to encourage responsible cannabis campus operations and to discourage violations of related state laws, especially those that prohibit the sale, use, or distribution of cannabis and cannabis products to minors. It is not the intent of the city to expand, reduce, or alter the penalties for violations of state cannabis laws.
B. This chapter is not intended to conflict with federal or state law, nor is this chapter intended to answer or invite litigation over the unresolved legal questions posed by the existing conflict between state and federal law regarding the legality of cannabis. It is the intention of the city council that this chapter be interpreted to be compatible with existing federal and state enactments and in furtherance of the public purposes that those enactments encompass. (Ord. 857 § 1, 2021).
6.58.020 Definitions.
A. “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. “Cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.
B. “Cannabis business” means any business engaged in commercial cannabis activity. “Cannabis business” does not include any of the following:
1. A clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety Code.
2. A residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the Health and Safety Code.
3. A residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code.
4. A residential hospice or a home health agency licensed pursuant to Chapter 8 and Chapter 8.5 of Division 2 of the Health and Safety Code.
5. The cultivation, delivery, gift, or furnishing of cannabis by a qualified patient, a primary caregiver, or other person with an identification card as defined by Section 11362.7 of the Health and Safety Code, provided such activity complies strictly with all applicable state laws, including, but not limited to, Sections 11362.5 and 11362.765 of the Health and Safety Code.
C. “Cannabis campus” means a commercial facility in which an authorized or licensed owner, operator or suboperator uses space for commercial cannabis activity.
D. “Cannabis cultivation business” means any cannabis business that, pursuant to a Type 1, Type 1A, Type 1B, Type 1C, Type 2, Type 2A, Type 2B, Type 3, Type 3A, Type 3B, Type 4, Type 5, Type 5A, Type 5B, or Type 12 state cannabis license, cultivates cannabis or cannabis products.
E. “Cannabis delivery business” means any cannabis business that, pursuant to a Type 10 state cannabis license, delivers, makes available, or distributes cannabis and cannabis products to a consumer.
F. “Cannabis manufacturing business” means any cannabis business that, pursuant to a Type 6, Type 7, or Type 12 state cannabis license, manufactures cannabis or cannabis products.
G. “Cannabis distribution business” means a business that, pursuant to a state approved Type 11 or Type 13 license, distributes cannabis or cannabis products.
H. “Cannabis product” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
I. “Cannabis testing laboratory” means a cannabis business that tests cannabis or cannabis products pursuant to a Type 8 state cannabis license.
J. “City manager” means the city manager, or his or her designee.
K. “Commercial cannabis activity” includes the cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis or cannabis products that requires a state license.
L. “Commercial cannabis waste” means cannabis plants and plant materials that are discarded by a cannabis business, including but not limited to extra vegetative plants, failed clones, and harvest waste.
M. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
N. “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
O. “Operator” means the person, firm, corporation or entity that operates the cannabis campus.
P. “Primary caregiver” has the same meaning as that term is defined by Section 11362.7 of the Health and Safety Code.
Q. “Qualified patient” has the same meaning as that term is defined by Section 11362.7 of the Health and Safety Code.
R. “Suboperator” means the person, firm, corporation or entity that leases, uses, owns, acquires, or receives space or real property from the operator for commercial cannabis activity. (Ord. 857 § 1, 2021).
6.58.030 Cannabis campus requirements.
A. Any cannabis campus allowed in the city shall obtain a development agreement, a city business license and a conditional use permit as set forth in this chapter. A cannabis campus shall apply for all of these requirements with the community development department.
B. No more than one cannabis campus may be permitted within city limits.
C. Any cannabis campus allowed in the city shall maintain strict compliance with applicable cannabis state and local laws or regulations, all applicable laws, regulations, the Patterson Municipal Code and any city rules and administrative guidelines adopted by resolution of the city council as they might be amended from time to time. Further, any cannabis operator shall ensure that all suboperators maintain strict compliance with applicable cannabis state and local laws and regulations, as they might be amended from time to time.
D. A cannabis campus shall only be allowed in a light industrial (LI), heavy industrial (HI), West Patterson industrial business park (IBP), or West Patterson light industrial (IL) district, or in other districts as specified in a development agreement, conditional use permit and Section 18.46.030.
E. Operators shall limit commercial cannabis activity to cannabis manufacturing, cultivation or cannabis distribution businesses.
F. Operators may engage in any noncommercial cannabis activity consistent with federal, state and local laws.
G. An operator engaging in a cannabis cultivation business shall not cultivate outdoors anywhere within the city.
H. All cannabis campuses shall maintain any applicable state permit, city business license, conditional use permit, and comply with all of the following:
1. Secure Building. All commercial cannabis activity shall occur entirely inside of a building that is secure, locked, and fully enclosed, with a ceiling, roof, or other enclosure. The building, including all walls, doors, and the roof, shall be of solid construction meeting the minimum building code requirements for industrial structures (commercial greenhouse structures are not allowed), and include material strong enough to prevent entry except through an open door. Notwithstanding the foregoing, the roof may be of solid material provided other security measures exist to ensure that the commercial cannabis activity cannot be seen, heard, or smelled beyond the property line.
2. Security. Cannabis campuses shall comply with security requirements acceptable to the police chief on an individual project basis. At a minimum, the cultivation security system shall consist of:
a. Security Surveillance Cameras. Security surveillance cameras and a video recording system shall be installed to monitor all doors into the buildings on the business site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system shall be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the cultivation site. The recording system shall be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive.
b. Security Video Retention. Video from the security surveillance cameras shall be recording at all times (twenty-four hours a day, seven days a week) and the recording shall be maintained for at least thirty days. The video recordings shall be made available to the city upon request.
c. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems shall be installed and maintained in good working condition. The alarm system shall include a private security company that is required to respond to every alarm.
d. Law Enforcement. Any security plan shall comply with the applicable regulations required by law enforcement at the time of operation.
3. Odor Control. A detailed plan shall be submitted describing the air treatment system, or other methods that will be implemented to prevent cannabis odors from being detected outside the cannabis campus.
4. Insurance. A cannabis campus shall maintain insurance in the amounts and of the types that are acceptable to the city manager or his or her designee. The city shall be named as additional insured on all city-required insurance policies.
5. Waste Management Plan. A cannabis campus shall submit a cannabis waste management plan to, and have that plan approved by, the public works department describing how commercial cannabis waste will be disposed. A cannabis campus shall comply with its cannabis waste management plan at all times. If applicable, the plan shall include a description of measures to be taken relating to light bulb recycling.
I. Leasing Only to Licensed Commercial Cannabis Businesses. The operator of a cannabis campus shall ensure that all suboperators have applied and obtained applicable licenses from the state of California for the suboperator’s commercial cannabis activity. The operator of a cannabis campus shall also ensure that all suboperators maintain applicable licenses from the state of California for the suboperator’s commercial cannabis activity. If the state licensing authority does not grant the suboperator any applicable licenses, or if the state licensing authority revokes any applicable licenses, the operator of a cannabis campus shall ensure that such suboperator immediately ceases commercial cannabis activity on site.
J. Required Notice to the City. An operator of a cannabis campus shall notify the city whenever a lease with a suboperator commences or terminates within thirty days of the lease commencing or terminating. The notification shall include the identity of the person, firm, corporation or entity with whom the lease commenced or terminated, and the terms of the lease. An operator of a cannabis campus shall also notify the city of any suboperator licenses granted, denied, or revoked by the state licensing authority within thirty days of the suboperator’s receipt of the notice of granting, denying or revoking a license. (Ord. 857 § 1, 2021).
6.58.040 Cannabis campus suboperators.
A. Suboperators shall limit commercial cannabis activity to cannabis manufacturing, cultivation or cannabis distribution businesses.
B. A suboperator engaging in a cannabis cultivation business shall not cultivate outdoors anywhere within the city.
C. Suboperators may engage in any noncommercial cannabis activity consistent with federal, state and local laws.
D. Suboperators shall obtain and maintain all applicable state and local licenses or permits required for operation. Suboperators shall comply with all applicable laws, regulations, the Patterson Municipal Code and any city rules and administrative guidelines adopted by resolution of the city council.
E. Suboperators at a cannabis campus shall be subject to the terms of the development agreement and conditional use permit of the cannabis campus.
F. Suboperators shall issue to the city all payments required of the suboperator under the development agreement associated with the cannabis campus. (Ord. 857 § 1, 2021).
6.58.050 Suboperator permit.
A. Suboperators shall comply with the requirements of this section and shall obtain a suboperator permit from the city prior to operating commercial cannabis activity at a cannabis campus.
B. All persons, firms, corporations or entities seeking to be a suboperator shall submit an application for a suboperator permit to the city. An application fee, set by resolution of the city council, shall be paid at the time the application is submitted and no application processing shall commence until the fee is paid in full. The permit application shall be on a form approved by the city manager and shall include any information or documentation required by the city manager consistent with the provisions of this code and state law, including the following:
1. Applicant.
a. The printed full name, signature, date of birth, social security number, and present address and telephone number of all business owners and principals.
b. A description of the statutory entity or business form that will serve as the legal structure for the applicant and a copy of its 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.
c. The phone number and address to which notice of action on the application and correspondence is to be mailed.
2. Background Checks. For each business owner and principal:
a. A legible copy of one valid government-issued form of photo identification, such as a state driver’s license, a passport issued by the United States, or a permanent resident card.
b. A list of their misdemeanor and felony convictions, if any. For each conviction, the list must set forth the date of arrest, the offense charged, the offense convicted, the jurisdiction of the court, and whether the conviction was by verdict, plea of guilty, or plea of nolo contendere.
c. Consent to fingerprinting and a criminal background investigation.
3. Business Site. A general description of the proposed business site, including the street address, parcel number, the total square footage of the site, and the characteristics of the surrounding area.
4. Business Operations. A plan for handling cash and transporting cannabis and cannabis products to and from the site.
5. State Licenses. Copies of the state licenses relating to cannabis that the applicant holds.
6. Tax Compliance. A copy of the city business license; a copy of the applicant’s most recent financial statements; a copy of the applicant’s most recent state and federal signed tax returns; and proof of filing the tax returns with the applicable government agency.
7. City Authorization. Authorization and consent for the city to seek verification of information contained within the permit application.
8. Applicant’s Certification. A statement dated and signed by the applicant, under penalty of perjury, that the applicant has personal knowledge of the information contained in the application, that the information contained therein is true and correct, and that the permit application has been completed under the applicant’s supervision.
C. The city manager shall review permit applications from suboperator applicants and shall approve or deny an application. The city manager may deny an application for a suboperator permit if the city manager determines that one or more of the following circumstances exist:
1. The application is incomplete.
2. The application contains false or misleading statements or omissions of material fact.
3. The suboperator’s operation fails to comply with any of the requirements in this code, state law, or any other regulation.
4. The applicant or any of its managers has any unpaid and overdue penalties imposed for violations of this chapter.
5. The applicant has not paid any applicable taxes, assessments or similar charges or fees.
6. Within the previous twelve months of the filing date of the application, either the applicant has had its cannabis business permit or approval revoked; or any of its owners, officers, directors, partners, agents, or any persons vested with the authority to manage or direct the affairs of the business were associated with another business that had its cannabis business permit, license or approval revoked.
7. The applicant or any of its managers has violated a provision of this code.
8. The operation of the cannabis business is a threat to public health, safety or welfare.
D. When the city manager denies an application for a suboperator permit, the city manager shall prepare and send a notice of denial, including the reasons for denial, to the applicant. Any applicant denied a suboperator permit has the right to appeal such denial in accordance with this chapter.
E. When approving an application for a suboperator permit, the city manager may place any additional limitations and conditions on the operation of the business as deemed necessary, consistent with the public interest and with this chapter.
F. A suboperator permit shall be valid for one year from the date of approval, unless suspended or revoked sooner. To renew suboperator permit, the suboperator shall submit a permit renewal application on a form approved by the city manager and shall include any information or documentation required by the city manager consistent with the provisions of this code and state law. The suboperator shall submit the permit application no later than thirty days prior to the expiration date of the permit. The city manager may deny an application for renewal if the application is late, or if any of the grounds specified in subsection C of this section exists. The city manager shall prepare and send a notice to the suboperator if the renewal is approved or denied.
G. The city manager may suspend, modify, or revoke a suboperator permit. The city manager shall prepare and send a notice to the suboperator if the suboperator permit is suspended, modified, or revoked, including the reasons for the suspension, modification, or revocation. The city manager may suspend, modify, or revoke a suboperator permit for any of the following reasons:
1. Any ground for which a suboperator permit may be denied, as described in subsection C of this section, exists or has occurred;
2. One or more conditions of the suboperator permit has been violated; or
3. The suboperator, officers, directors, partners, agents, or other persons vested with the authority to manage or direct the affairs of the business have violated any provision of this chapter.
H. Suboperator permits are not property and have no value. Suboperator permits cannot be transferred, sold, assigned or bequeathed expressly or by operation by law. Any attempt to directly or indirectly transfer a suboperator permit shall be unlawful and void, and shall automatically revoke the suboperator permit. (Ord. 857 § 1, 2021).
6.58.060 Enforcement and penalties.
A. Any use or condition caused, or permitted to exist, in violation of any provision of this chapter shall be, and hereby is declared to be, a public nuisance and may be administratively or summarily abated by the city pursuant to Section 731 of the Code of Civil Procedure, Chapter 1.32 or 1.52, or any other remedy available to the city.
B. In addition to any other enforcement permitted by this chapter, the city attorney may bring a civil action for injunctive relief and civil penalties against any person or entity that violates this chapter. In any civil action brought pursuant to this chapter, a court of competent jurisdiction may award reasonable attorneys’ fees and costs to the prevailing party.
C. Violations of this chapter shall be subject to an administrative citation pursuant to Chapter 1.44. The amount of the administrative penalty shall be two hundred fifty dollars for the first offense, five hundred dollars for the second offense, and one thousand dollars for any subsequent offense. (Ord. 857 § 1, 2021).
6.58.070 Appeals.
Any person aggrieved by an action taken under this chapter may appeal by submitting a hearing request pursuant to Section 1.36.060(B) within ten calendar days of notice of the adverse action. An appeal of the adverse action shall follow the procedures set forth in Chapter 1.36. (Ord. 857 § 1, 2021).
6.58.080 Cost recovery.
A. The city shall be entitled to recover its abatement and enforcement costs incurred in obtaining compliance with this chapter. Costs incurred by the city are recoverable even if a public nuisance, municipal code, or other violation of law is corrected by the property owner or other responsible party.
B. The cost of abating a public nuisance or enforcing this chapter shall either be a special assessment and lien on the subject property or the personal obligation of the owner of the subject property or the responsible party. If there is more than one responsible party, each party shall be jointly and severally liable for the costs.
C. For purposes of this section, the following additional definitions shall apply:
1. “Abatement costs” include the actual and reasonable costs incurred by the city to abate a public nuisance. These costs include all direct and indirect costs to the city that result from the total abatement action, including, but not limited to, investigation costs, costs to enforce the municipal code and any applicable state or county law, clerical and administrative costs to process paperwork, costs incurred to provide notices and prepare for and conduct administrative appeal hearings, and costs to conduct actual abatement of the nuisance. Costs include personnel costs, administrative overhead, costs for equipment such as cameras and vehicles, staff time to hire a contractor, and reasonable attorneys’ fees incurred by city.
2. “Enforcement costs” include all actual and reasonable costs incurred by the city to enforce compliance with the municipal code and any applicable state, county, or city public health and safety law that are not included within abatement costs. Enforcement costs shall also include, but are not limited to, costs of fringe benefits for personnel, administrative overhead, costs of equipment, costs of materials, costs related to investigations, costs related to issuing and defending administrative or court citations, costs incurred investigating and abating violations of the municipal code or state or county law violations, and reasonable attorneys’ fees related to these activities.
3. “Responsible party” means a person or entity responsible for creating, causing, committing, or maintaining the violation of this chapter or state or county law.
4. “Subject property” means the real property that is the subject of any abatement or enforcement action by the city for which the city incurred costs and seeks recovery under this chapter. (Ord. 857 § 1, 2021).
6.58.090 Severability.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this chapter, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this chapter or any part thereof. The city council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. (Ord. 857 § 1, 2021).