Calexico Municipal Code § 17.11.1010 Purpose and intent

Footnotes:

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Editor's note— Ord. No. 1191, § 2, adopted Dec. 19, 2018, amended and restated former Art, X, §§ 17.11.1010—17.11.1090, in its entirety which pertained to the same subject matter and derived from Ord. No. 1177, § 2, adopted July 5, 2017.

It is the purpose and intent of this chapter to regulate the commercial cultivation, manufacturing, testing, distribution, and retail sale and delivery of cannabis (including cannabis products, cannabis concentrate, and edible cannabis products) in accordance with State law in order to promote the health, safety, morals, and general welfare of the residents and businesses within the city. The city is authorized to regulate this activity pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA").

Nothing in this chapter shall be construed to:

A. Allow persons to engage in conduct that endangers others or causes a public nuisance; or

B. Allow any activity relating to the cultivation, manufacturing, testing, distribution, transportation, or use of cannabis that is otherwise illegal under California state law; or

C. Interfere with the use and possession of cannabis as authorized under MAUCRSA.

(Ord. No. 1191, § 2, 12-19-2018)

For the purposes of this chapter, the following definitions shall apply, unless the context clearly indicates otherwise. If a word is not explicitly defined in this chapter, the common and ordinary meaning of the word shall apply.

"Applicant" means an owner applying for a conditional use permit, desiring to enter into a development agreement, or applying for any other applicable entitlement under this chapter.

"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. For purposes of this chapter, "cannabis" does not include industrial hemp.

"Cannabis concentrate" means cannabis that has undergone a process to concentrate one 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 division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the California Health and Safety Code.

"Cannabis overlay zone" means the approximately 354.02 acres within the area bounded by railroad tracks on the west; the Adler Canal on the north; West Van de Graff Avenue and Scaroni Avenue on the east; and Weakley Street and Camacho Road on the south. The "cannabis overlay zone" also means 120 W. Cole Boulevard, Calexico, CA 92231 Accessors Parcel Number: 058-020-019-000. The cannabis overlay zone includes industrial (IND), industrial rail served (IR) and commercial.

"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. When the term "cannabis" is used in this chapter, it shall include "cannabis products."

"City manager" means the city manager of the city of Calexico or designee.

"Commercial cannabis activity" includes the cultivation, manufacture, laboratory testing, distribution, delivery, and retail sale (including possession, processing, storing, and labeling incidental to each activity, as applicable) of cannabis, and cannabis products.

"Conditional use permit" or "CUP" means a conditional use permit issued under this chapter.

"Cultivate" or "cultivation" means any commercial activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. A cannabis nursery is considered a "cultivation" use.

"Customer" means a natural person twenty-one years of age or older or a natural person eighteen years of age or older who possesses a physician's recommendation, or a primary caregiver.

"Delivery" means the commercial transfer of cannabis or cannabis products to a customer.

"Developer" means a person who has a fully negotiated and executed development agreement with the city under this chapter. A "developer" includes all representatives, agents, parent entities, or subsidiary entities of the developer.

"Development agreement" means an agreement entered into between the city and an applicant under this chapter pursuant to Section 65865 of the California Government Code.

"Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities permitted or licensed under this chapter, another local California jurisdiction, and state law.

"Edible cannabis product" means manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 of the California Food and Agricultural Code. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code. When the term "cannabis" is used in this chapter, it shall include "edible cannabis products."

"Indoor" means within a fully enclosed and secure building.

"Legal parcel" means any parcel of real property that may be separately sold in compliance with the Subdivision Map Act (Sections 66410 et seq. of the California Government Code).

"Manufacture" means to compound, blend, extract, infuse or otherwise make or prepare a cannabis product.

"Manufacturer" means a permittee 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.

"Microbusiness" means a commercial business that engages in at least three of the following commercial cannabis activities: cultivation of cannabis on an area less than ten thousand square feet, Level 1 manufacturing, distribution, and retail sale under this chapter, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and state law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities.

"Non-storefront retailer" means a cannabis retailer that provides cannabis exclusively through delivery.

"Nursery" means a permittee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.

"Operation" means any act for which a permit is required under the provisions of this chapter, or any commercial transfer of cannabis or cannabis products.

"Owner" means any of the following:

(1) A person with an aggregate ownership interest of twenty percent (20%) or more in the applicant, unless the interest is solely a security, lien, or encumbrance;

(2) The chief executive officer of an entity or nonprofit;

(3) All members of the board of directors of a nonprofit;

(4) An individual entitled to a share of at least twenty percent of the profits of the commercial cannabis business;

(5) The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust; or

(6) An individual that will be participating in the direction, control, or management of the permitted commercial cannabis activity.

"Permittee" means the individual or applicant to whom a conditional use permit has been issued under this chapter. A permittee includes all representatives, agents, parent entities, or subsidiary entities of the permittee.

"Person" includes 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, and the plural as well as the singular.

"Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one permittee.

"Purchaser" means the customer who is engaged in a transaction with a permittee for purposes of obtaining cannabis or cannabis products.

"Retailer" means a permittee that sells and/or delivers cannabis or cannabis products to customers.

"Sell," "sale," and "to sell" include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee to the permittee from whom the cannabis or cannabis product was purchased.

"Sensitive receptors" include an institution of learning for persons under twenty-one years of age, whether public or private, offering regular course of instruction including, without limitation, a kindergarten, elementary school, middle or junior high school, or senior high school; any licensed child care center, daycare center, or any preschool; and parks and playgrounds.

"Shared-use facility" means a premises registered by a primary manufacturing permittee at which multiple cannabis manufacturers may operate at separate times.

"Testing" means subjecting cannabis to laboratory testing for active compounds and purity prior to distribution for consumption.

"Testing laboratory" means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:

(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

(2) Licensed by the Bureau of Cannabis Control within the Department of Consumer Affairs.

Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources:

A. The Compassionate Use Act of 1996 ("CUA");

B. The Medical Marijuana Program ("MMP"); and

C. The Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA").

(Ord. No. 1191, § 2, 12-19-18; Ord. No. 1205, § 2, 11-20-19; Ord. No. 1210, § 2, 2-19-20)

A. Commercial cannabis cultivation, manufacturing (including shared-use facilities), laboratory testing, distribution, retailers, non-storefront retailers, and microbusinesses may be located in the cannabis overlay district, upon either issuance of a CUP or full execution of a development agreement approved by city council and issuance of a regulatory permit, or as otherwise permitted in this code. Testing laboratories may be located in CO - Commercial Office, CH - Commercial Highway, CS - Commercial Specialty, BP - Industrial Business Park, I - Industrial, IR - Industrial Rail Served, and IL - Industrial Light Zones upon either issuance of a CUP or full execution of a development agreement approved by city council and issuance of a regulatory permit, or as otherwise permitted in this code.

B. Commercial cannabis cultivation or manufacturing facilities shall be limited to no more than seventy-five percent of the acreage of a legal parcel in the cannabis overlay zone.

C. Each commercial cannabis cultivation facility shall be at least five thousand square feet in size, except for microbusinesses, and nurseries, which may be less than five thousand square feet in size.

D. Commercial cannabis activity shall be located a minimum distance of six hundred feet away from any sensitive receptor. The distance shall be measured at the nearest point between any part of the building containing the cannabis use and any lot line of the sensitive receptor. This six hundred-foot distance limitation shall not apply to cannabis testing laboratories.

E. Cannabis cultivation, manufacturing, and laboratory testing may only occur indoors. Commercial cannabis activity shall not result in the creation of any odors detectable from anywhere off the property boundaries. The use of carbon filtration systems and other mitigation measures shall be used on all commercial cannabis activities that cause such odors. Commercial cannabis activity permittees or developers shall not allow cannabis to be visible from the public right-of-way or the unsecured areas surrounding the commercial cannabis activity's site.

F. No commercial cannabis activity shall operate unless it is in possession of all applicable state and local licenses or permits, except as otherwise permitted by state and/or local law. Every commercial cannabis activity shall submit to the city manager a copy of any and all of its state and local licenses and permits required for its operation. If any other applicable state or local license or permit for a commercial cannabis activity is denied, suspended, modified, revoked, or expired, the permittee shall notify the city manager in writing within ten calendar days.

G. Except as required in this chapter, CUPs shall be reviewed, issued, denied, suspended, revoked, and/or renewed in accordance with Chapter 17.01, Article V, Conditional Use Permit Regulations. If any provision of this chapter conflicts with any provision of Title 17, Chapter 17.01, Article V, the provision in this chapter shall control.

(Ord. No. 1191, § 2, 12-19-2018; Ord. No. 1200, § 4, 5-15-19)

The city may authorize up to ten applicants to operate the following type of facility: laboratory testing.

The city may authorize up to twenty applicants to operate the following type of facility: cultivation. Of these twenty applicants, up to ten applicants may be authorized to operate a small scale cultivation facility, which means a permittee whose gross receipts do not exceed $500,000.00 annually, and up to ten applicants may be authorized to operate an industrial scale cultivation facility, which means a permittee whose gross receipts exceed $500,000.00 annually.

The city may authorize up to twenty applicants to operate the following type of facility: distribution. Of these twenty applicants, up to ten applicants may be authorized to operate a small scale distribution facility, which means a permittee whose gross receipts do not exceed $500,000.00 annually, and up to ten applicants may be authorized to operate an industrial scale distribution facility, which means a permittee whose gross receipts exceed $500,000.00 annually.

The city may authorize up to twenty applicants to operate primary manufacturing facilities. Of these twenty applicants, up to ten applicants may be authorized to operate a small scale primary manufacturing facility, which means a permittee whose gross receipts do not exceed $500,000.00 annually, and up to ten applicants may be authorized to operate an industrial scale primary manufacturing facility, which means a permittee whose gross receipts exceed $500,000.00 annually. A primary manufacturing facility is any manufacturing facility or any shared-use facility operated for manufacturing. A person permitted to operate a shared use facility shall be known as a primary shared use manufacturing permittee or primary permittee. A person permitted to operate within a shared use facility shall be known as a secondary shared-use manufacturing permittee or secondary permittee. The city may authorize up to thirty secondary permittees to operate within a shared-use facility within the city. Of these thirty secondary permittees, fifteen will be reserved for a small scale primary manufacturing facility and fifteen will be reserved for an industrial scale primary manufacturing facility.

In addition, the city may authorize up to twelve retailer, non-storefront retailer, or microbusiness applicants to operate within the city.

Prior to initiating operations and as a continuing requisite to operating a commercial cannabis activity, the applicant shall obtain a validly issued CUP or enter into a fully executed development agreement agreed to by the city council. Each applicant may only apply for and operate up to two commercial cannabis activity facilities in the city, unless said applicant is operating a microbusiness. Each CUP or development agreement will include a condition or provision that the applicant shall also obtain and maintain a commercial cannabis activity regulatory permit required by this code.

(Ord. No. 1191, § 2, 12-19-2018; Ord. No. 1199, § 2, 5-1-19; Ord. No. 1202, § 2, 7-17-19; Ord. No. 1206, § 2, 11-20-19)

At the time an applicant submits an application under this chapter, the applicant shall also supply an application fee in an amount to be determined by resolution by the city council, an executed reimbursement agreement on a form provided by the city to fully reimburse the city for all fiscal impacts, costs, expenses, and fees, including but not limited to attorney fees and consultant fees, incurred by the city related to the commercial cannabis activity, and a deposit in an amount as provided for in the reimbursement agreement terms.

(Ord. No. 1191, § 2, 12-19-2018)

A commercial cannabis activity shall not transfer cannabis or cannabis products to or from another commercial cannabis activity, unless both activities are in possession of all required state and local licenses and permits.

(Ord. No. 1191, § 2, 12-19-2018)

CUPs may not be transferred, sold, assigned or bequeathed expressly or by operation by law. Any attempt to directly or indirectly transfer a cannabis business CUP shall be unlawful and void, and shall automatically revoke the permit.

(Ord. No. 1191, § 2, 12-19-2018)

Any commercial cannabis activity that does not have both a CUP or development agreement and a regulatory permit required under this code is expressly prohibited in all city zones and is hereby declared a public nuisance that may be abated by the city and is subject to all available legal remedies, including, but not limited to civil injunctions.

(Ord. No. 1191, § 2, 12-19-2018)

A. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, and administrative penalties.

B. Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law.

C. Violations of this chapter are hereby declared to be public nuisances.

D. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies.

E. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other remedy for the purpose of enforcing the provisions hereof.

(Ord. No. 1191, § 2, 12-19-2018)