Chapter 19.75 — CANNABIS REGULATIONS

A. The purpose of this Chapter is to regulate commercial cannabis activity in the City of Chico, whether the cannabis is for medicinal or adult-use commercial purposes by enacting a permitting and regulatory system for this action. B. The purpose of this Chapter is also to enact and enforce reasonable regulations on medicinal and adult-use purposes, by enacting a permitting and regulatory scheme for this action citywide for commercial cannabis uses, by allowing certain commercial uses in specified zones, and continuing to allow personal cannabis cultivation activities (non-commercial) in residential zoning districts.

C. Personal cultivation activities give rise to, or pose a significant risk of giving rise to, various health and safety concerns and negative impacts to residents of the City of Chico, including but not limited to burglaries and robberies, trespassing, personal and property crimes, fire and building hazards, chemical and waste disposal, mold growth, offensive odors, and possession and use by persons under the age of twenty-one (21). In light of such concerns, the City Council for the City of Chico desires to ban outdoor personal cultivation activities, and impose reasonable regulations on indoor personal cultivation activities for both medicinal and adult-use purposes.

D. The City Council finds that the regulation of commercial cannabis activity, including the prohibition of commercial cultivation and microbusiness uses, is necessary for the preservation and protection of the public health, safety and welfare for the City and its community. The City Council’s regulation of such activity is within the authority conferred upon the City Council by the City’s Charter and applicable state law, and is an exercise of its police powers to enact and enforce regulations for the public benefit, safety, and welfare of the City and its community.

(Ord. 2505; Ord. 2553; Ord. 2589 §4)

For purposes of this Chapter, the following definitions shall apply:

A. “Accessory structure” shall mean a fully enclosed, lawful structure that is physically detached from, and secondary and incidental to, the existing primary structure of a “private residence,” as that term is defined herein. B. “Adult Use” shall mean use of cannabis products by individuals 21 years of age and older and who do not possess a physician’s recommendation.

C. “Applicant” under this Chapter shall include any individual or entity applying for a Commercial Cannabis Permit, and shall include any officer, director, partner, or other duly authorized representative applying on behalf of an entity. D. “Business License” is the license issued by the City’s Finance Department after payment of the business fee as set forth in Chapter 3.32 of the City of Chico City Code.

E. “California Adult Use of Marijuana Act” shall mean and refer to the provisions of California law added by Proposition 64, approved by California voters at the election occurring on November 8, 2016.

F. “Cannabis” shall mean all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin 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 shall also have the same meaning as in Section 26001(f) of the Business and Professions Code, as may be amended from time to time. The terms “marijuana” and “cannabis” shall be synonymous and have the same meaning. It does not include:

1. Industrial hemp, as defined in Section 11018.5 of the California Health and Safety Code; or

2. The weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or other product.

3. 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.

G. “Cannabis accessories” means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body. Cannabis accessories shall also have the same meaning as in Section 11018.2 of the Health and Safety Code, as same may be amended from time to time.

g, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body. Cannabis accessories shall also have the same meaning as in Section 11018.2 of the Health and Safety Code, as same may be amended from time to time.

H. “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 Chapter. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or drug, as defined by Section 109925 of the Health and Safety Code. Cannabis concentrate shall also have the same meaning as in Section 26001(h) of the Business and Professions Code, as same may be amended from time to time.

I. “Cannabis concentrate inhaled products” means a cannabis concentrate product that is intended to be used, in whole or in part, through inhalation by the user. Cannabis concentrate inhaled products include, but are not limited to, dabs, wax, shatter, budder, and butane hash oil.

J. “Cannabis event” means a public or private event where compensation is provided or exchanged, either directly or indirectly or as part of an admission or other fee for service, for the provision, hosting, promotion or conduct of the event where consumption of cannabis is part of the activities.

K. “Cannabis products” shall mean 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. Cannabis products shall also have the same meaning as in Section 11018.1 of the Health and Safety Code, as same may be amended from time to time.

L. “Canopy” means all areas occupied by any portion of a cannabis plant, inclusive of all vertical planes, whether contiguous or noncontiguous on any one site.

M. “City” shall mean the City of Chico and have the same meaning as CMC 1.04.010.

N. “City Manager” means the City Manager of the City of Chico, including their designee.

O. “Code” shall mean the Chico Municipal Code as defined in CMC 1.04.010, including all laws, ordinances, and regulations adopted and incorporated therein.

P. “Commercial cannabis activity” shall mean, and includes, the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, whether or not the cannabis or cannabis products as provided for in MAUCRSA. “Commercial cannabis activity” shall also have the same meaning as in Section 26001(k) of the Business and Professions Code, as they may be amended from time to time.

anufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, whether or not the cannabis or cannabis products as provided for in MAUCRSA. “Commercial cannabis activity” shall also have the same meaning as in Section 26001(k) of the Business and Professions Code, as they may be amended from time to time.

Q. “Commercial cannabis business” means any business or operation, which engages in medicinal or adult-use commercial cannabis activity, as authorized by this Chapter, as may be amended from time to time by the City, including, the manufacturing, testing, distribution, and retail as explicitly allowed herein, of medicinal and adult-use cannabis and cannabis products, and the ancillary transportation and delivery of same.

R. “Commercial Cannabis Permit” means the regulatory permit issued by the City of Chico to a commercial cannabis business, which is required before any commercial cannabis activity may be conducted in the City, pursuant to this Chapter.

S. “Conditional Use Permit” means a discretionary land use approval as required and pursuant to Section 24 of Title 19 of the Chico Municipal Code.

T. “Cultivation” shall mean any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Cultivation shall also have the same meaning as in Section 26001(l) of the Business and Professions Code, as same may be amended from time to time. Whenever references to cultivation are made in this Chapter, permitted or licensed cultivation shall only be personal cultivation, as commercial cultivation is expressly prohibited.

U. “Customer” means a natural person 21 years of age or older; or, a natural person 18 years of age or older who possesses a physician’s recommendation for medicinal use, or a primary caregiver. Customer shall also have the same meaning as in Section 26001(n) of the Business and Professions Code, as same may be amended from time to time.

V. “Day care center” has the same meaning as in Section 1596.76 of the Health and Safety Code, as same may be amended from time to time, and includes 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.

W. “Delivery” shall mean the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform owned and controlled by the retailer. Delivery shall also have the same meaning as in Section 26001(p) of the Business and Professions Code, as may be amended from time to time.

X. “Development Agreement” is the agreement entered into between an applicant and the City authorizing said individual to engage in a commercial cannabis business as authorized in this Chapter, within the City’s jurisdictional boundaries.

Y. “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer. Z. “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensees. Distribution shall also have the same meaning as in Section 26001(r) of the Business and Professions Code, as same may be amended from time to time.

AA. “Distributor” means a person holding a valid Commercial Cannabis Permit for distribution issued by the City of Chico, and, a valid state license for distribution, required by state law to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis products from a licensed manufacturer, for sale to a licensed retailer.

BB. “Edible cannabis product” means a cannabis product that is intended to be used, in whole or in part, for human consumption, and is not considered food. Edible cannabis product has the same meaning as Business and Professions Code section 26001(t).

CC. “Fire Chief” shall mean the Fire Chief of the Chico Fire Department, or their designee.

DD. “Indoor” shall mean entirely within and inside a private residence, residential structure, or accessory structure. EE. “Law enforcement agency” refers to the agency charged with enforcing the pertinent laws in the City. The law enforcement agency for the City shall be the Chico Police Department. Unless the provisions of the context otherwise require, whenever any provision of this Code makes reference to the law enforcement agency of the City, such shall be construed to mean, and deemed to constitute, that person holding the office of Chief of Police for the City and their authorized deputies or officers, performing law enforcement functions for the City.

FF. “License or state license” means a license issued by the State of California, or one of its departments or divisions, under MAUCRSA, and any subsequent State of California legislation or regulations regarding the same, to lawfully engage in commercial cannabis activity.

GG. “Licensee” means any person holding a license issued by the State of California to conduct commercial cannabis business activities.

HH. “Manager” means any person(s) designated by the commercial cannabis business to act as the representative or agent of the commercial cannabis business in managing day-to-day operations with corresponding liabilities and responsibilities, and/or the person in apparent charge of the premises where the commercial cannabis business is located. Evidence of management includes, but is not limited to, evidence that the individual has the power to direct, supervise, or hire and dismiss employees, controls hours of operations, creates policy rules, or purchases supplies. II. “Manufacture” shall mean to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. Manufacture shall also have the same meaning as in Section 26001(ag) of the Business and Professions Code, as same may be amended from time to time.

power to direct, supervise, or hire and dismiss employees, controls hours of operations, creates policy rules, or purchases supplies. II. “Manufacture” shall mean to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. Manufacture shall also have the same meaning as in Section 26001(ag) of the Business and Professions Code, as same may be amended from time to time.

JJ. “Manufacturer” means a licensee 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 re-labels its container. A manufacturer may also be a person that

infuses cannabis in its products but does not perform its own extraction. A manufacturer may also be a person that only packages or repackages cannabis or cannabis products or labels or re-labels its container. Manufacturer shall also have the same meaning as in Section 26001(ah) of the Business and Professions Code, as same may be amended from time to time.

KK. “Manufacturing” means the use type that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, 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 re-labels its container, or that only packages or repackages cannabis or cannabis products or labels or re-labels its container, and is owned and operated by a person issued a valid Commercial Cannabis Permit for manufacturing from the City of Chico and a valid state license as required for manufacturing of cannabis products. LL. “Medicinal cannabis or medicinal cannabis product” means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the California Health and Safety Code, by a medical cannabis patient in California who possesses a physician’s recommendation.

MM. “Medicinal use” means the use of medicinal cannabis or medicinal cannabis product.

NN. “Microbusiness” means licensees who engage in at least three (3) of the following commercial cannabis activities: indoor cultivation (less than 10,000 square feet), manufacturing (type 6), distribution, and retailerstorefront, as defined within this Chapter.

OO. “Outdoor” shall mean any location within the City of Chico that is not within a fully lawfully existing enclosed structure.

PP. “Permittee” shall mean any person having been issued and maintaining a valid personal cultivation permit under this Chapter.

QQ. “Person” means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit or entity, and the plural as well as the singular.

RR. “Personal cultivation permit” or “permit” shall mean and refer to the permit issued by the City under this Chapter authorizing permittees to possess, plant, cultivate, harvest, dry, or process cannabis, cannabis plants, or the cannabis produced by the plants inside a private residence, or inside an accessory structure to a private residence located upon the grounds of a private residence, pursuant to AUMA, and to a qualified patient or primary caregiver, in accordance with the Compassionate Use Act of 1996 (Proposition 215).

SS. “Physician’s recommendation” means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.

TT. “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 where the commercial cannabis business will be or is being conducted. The premises shall be a contiguous area and shall only be occupied by one permittee.

UU. “Primary caregiver” means the individual designated by a qualified patient, who has consistently assumed responsibility for the housing, health, or safety of that patient, and as defined in Health and Safety Code section 11362.7.

VV. “Private residence” shall mean a legally existing house, an apartment unit, a mobile home, or other similar dwelling, and inclusive of any rooms, garages, or structures physically attached thereto, identified by a lawful street address and/or an assessor parcel number. A lawful accessory structure located on the same parcel as a private residence shall be considered a part of that private residence.

WW. “Qualified patient” means a qualified patient who is entitled to the protections of the Compassionate Use Act of 1996, and as defined in Section 11362.7 of the Health and Safety Code.

XX. “Retailer-Delivery” means a non-storefront, delivery-only retailer as a commercial cannabis business facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale to customers, where the premises are non-storefront, closed to the public, and sales are conducted exclusively by delivery, where a vehicle is used to convey the cannabis or cannabis products to the customer from a fixed location, and where the operator is authorized by the City of Chico to operate as a retailer, and holds a valid state license as required by state law to operate as a retailer.

YY. “Sell”, “sale”, and “to sell” includes any transaction whereby, for any consideration, title to cannabis or cannabis products are 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 licensee to the permittee from whom the cannabis or cannabis product was purchased.

e to cannabis or cannabis products are 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 licensee to the permittee from whom the cannabis or cannabis product was purchased.

ZZ. “State law” means all laws of the State of California, which includes, but are not limited to, all rules, regulations, and policies adopted by State of California agencies, departments, divisions, and regulatory entities, as same may be amended from time to time.

AAA. “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 State of California.

Testing laboratory shall also have the same meaning as in Section 26001(at) of the Business and Professions Code, as same may be amended from time to time.

BBB. “Transport” means the transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity authorized by law and which may be amended or repealed by any subsequent State of California legislation regarding the same.

CCC. “Youth center” means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. Youth center shall also have the same meaning as in Section 11353.1 of the Health and Safety Code and Section 26001(av) of the Business and Professions Code, as each may be amended from time to time.

(Ord. 2505; Ord. 2553; Ord. 2589 §4; Ord. 2598 § 1; Ord. 2600)

A. Commercial Cannabis Activity. No person shall establish, operate, maintain, conduct, cause, allow or engage in commercial cannabis activity anywhere within the City related to cannabis cultivation or microbusiness uses. This subsection is meant to prohibit all cannabis related activities for which a State license is required for cannabis cultivation or microbusiness uses. The City shall not issue any permit, license, variance or any other entitlement or permit, whether administrative or discretionary, for any establishment, operation or activity of any such prohibited use, business or commercial operation.

B. Medicinal Cannabis. With the exception of the indoor, personal cultivation of medicinal cannabis allowed or permitted in residential zoning districts pursuant to, and in accordance with, this chapter, the establishment or operation of any medicinal marijuana or cannabis collective, cooperative, dispensary, delivery service, operator,

establishment, or provider shall be considered an explicitly prohibited use in the City of Chico, including in all zoning districts and designated zones of the City without an appropriate Commercial Cannabis Permit issued pursuant to CMC Chapter 5.42 and in accordance with the remainder of Chapter 19.75 and Chapters 19.40 through 19.48, and Section 19.80.070, as applicable.

C. Personal Cannabis Cultivation for Medicinal or Adult-use. With the exception of Section 19.75.040 that allows the personal cannabis cultivation of no more than six (6) plants in a private residence by first securing a permit from the City, personal cannabis cultivation shall be prohibited and considered unlawful in all areas of the City to the extent it is unlawful under California law.

D. Property Owners. A property owner shall not rent, lease, or otherwise allow, cause or allow any business that engages in commercial cannabis activity to occupy real property in the City unless such business is located in a zoning district where such use is allowed, and has received a Commercial Cannabis Permit issued pursuant to Chapter 5.42. A property owner shall not allow any person or business to establish, operate, maintain, conduct, cause, allow, or engage in commercial cannabis activity on any real property owned or controlled by that property owner that is located in the City unless such business is located in a zoning district where such use is allowed, and has received a Commercial Cannabis Permit issued pursuant to Chapter 5.42. This is not intended to prohibit a property owner from providing written prior permission to lawful tenants for the personal cultivation of medicinal or adult-use cannabis in a residential zoning district, as allowed in Section 19.75.040 of this chapter.

E. Deliveries. To the extent not already prohibited herein, delivery of cannabis or cannabis products, whether the cannabis is for medicinal or adult-use purposes, to or from the City of Chico is expressly prohibited except to the extent allowed under State law. Nothing herein prevents the use and traversing of public roads within the City of Chico by a lawful business pursuant to state law.

F. Outdoor Cultivation. The outdoor cultivation of cannabis is expressly prohibited in the City of Chico, including all zoning districts and designated zones of the City of Chico. (Ord. 2505; Ord. 2553; Ord. 2589 §4)

A. Purpose and Intent. It is the purpose and intent of this section to enact and enforce reasonable regulations to reasonably regulate the ability of an individual twenty-one (21) years of age or older to possess, plant, cultivate, harvest, dry, or process, for personal, noncommercial use, whether it is for medical or recreational uses, not more than six (6) living cannabis plants indoors and to possess the cannabis produced by the plants, all in accordance with the Adult Use of Marijuana Act of 2016 and, specifically, Sections 11362.1 and 11362.2 of the Health and Safety Code, as well as the Compassionate Use Act of 1996 (Proposition 215). The cultivation of cannabis for personal, noncommercial, medical and/or recreational use may only take place in accordance with this Chapter.

B. Indoor Personal Cultivation; Permit Required. It shall be unlawful for any person to plant, cultivate, harvest, dry, or process cannabis, cannabis plants, or the cannabis produced by the plants inside a private residence, or inside an accessory structure to a private residence located upon the grounds of a private residence, without first obtaining and maintaining a valid indoor personal cultivation permit under this Chapter.

C. Indoor Personal Cultivation Permit.

1. Application. Every person required to have a personal cultivation permit under this Chapter shall make an application therefor, in a form prescribed by the Community Development Director of the City. Upon the payment of the fee established by resolution or ordinance of the City Council, and upon determination that none of the grounds for denial as specified in Section 19.75.040(G)(1) exist, the Community Development Director shall issue to such person a permit which shall contain:

a. The name of the person to whom the permit is issued.

• b. The permit number issued.

• c. The address of the private residence for which the permit has been issued.

• d. The date of expiration of such permit.

• e. Any conditions imposed by the City, if in addition to those proscribed in this Chapter.

f. If the private residence is leased or rented private residence to the permittee, the name of the property owner(s) whom gave the express, written consent for the cannabis cultivation activities pursuant to this Chapter.

g. Such other information as may be deemed necessary.

2. No more than one (1) permit per private residence shall be issued and maintained at any one time, regardless of the number of persons dwelling or residing in the private residence or upon the grounds thereof, and regardless of how many qualified patients are living in the private residence.

• D. Indoor Personal Cultivation Regulations.

1. Permittees issued a personal cultivation permit under this chapter shall, at all times, conduct the activities authorized by said permit in strict accordance with the requirements of this section, Chapter, the Medicinal and AdultUse Cannabis Regulation and Safety Act (SB 94), California Adult Use of Marijuana Act (Proposition 64), Compassionate Use Act of 1997 (Proposition 215), or whichever is more restrictive, as well as any conditions of approval imposed by the City.

a. All planting, cultivation, harvesting, drying, and processing (or similar actions) of cannabis plants, and the cannabis produced by the plants, shall be conducted entirely within the interior of a private residence or accessory structure.

b. The residential structure shall remain at all times a residence, with legal and functioning cooking, sleeping, and sanitation facilities with proper ingress and egress. Kitchens, bathrooms or primary bedrooms of a residence shall not be used for cannabis cultivation where such cultivation will prevent their primary use for cooking of meals, sleeping and bathing.

c. Cultivation of cannabis shall not displace required off-street parking.

d. No permittee shall exercise or engage in any of the activities authorized by a personal cultivation permit, or otherwise engage in the planting, cultivation, harvesting, drying, and processing of cannabis plants, and the cannabis produced by the plants, except upon the grounds of a private residence of which the permittee is owner of the private residence, or a lawful, permanent resident who entered into a written lease agreement with the owner of the premises. For purposes of this paragraph, a lawful, permanent resident shall mean any permittee who, as of a given date, obtained the lawful right to occupy the private residence for more than thirty (30) consecutive days.

e. No cannabis may be cultivated in a leased or rented private residence without the prior express, written consent of the property owner. Said permittee shall obtain the written permission, including notarized signatures, of the legal owner(s) consenting to the indoor personal cultivation of cannabis on the private residence.

f. Not more than six (6) living cannabis plants may be planted, cultivated, harvested, dried, or processed upon the grounds of any single private residence.

g. A qualified patient, or his or her primary caregiver, who is in possession of a current, and valid physician’s recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the California Business and Professions Code, may submit to the City, as part of his or her permit application, or renewal thereof, that six (6) plants does not meet the qualified patient’s needs. In this event, based on the objective, written documentation provided to the Community Development Director by the qualified patient’s physician, up to eight (8) living plants in total may be planted, cultivated, harvested, dried, or processed upon the grounds of any single private residence by a qualified patient, or his or her primary caregiver. The intent of this subsection is to provide for an exception to the maximum allowed six (6) plants to qualified patients only, in order to acknowledge a medical need, pursuant to Section 11362.77(b) of the California Health and Safety Act.

h. All living cannabis plants, and any cannabis produced by the plants in excess of 28.5 grams, shall be kept within the private residence or accessory structure in a locked and secured space.

i. No living cannabis plants, cannabis cultivation activities, or equipment, shall be visible, and no odor, light, heat, or other environmental impacts associated with personal cultivation shall be detectable, from a public place, right-of-way, neighboring public or private property, or beyond the bounds of the grounds of the private residence at any time.

j. All structures and buildings, or portions thereof, of a private residence used to cultivate cannabis pursuant to this Chapter shall, at all times, comply with all applicable laws and provisions concerning building and construction of structures, including, without limitation, the City’s Land Use and Development Regulations pursuant to Title 19, as well as Building Regulations and Standards, pursuant to Titles 16 and 16R of the Chico Municipal Code, and the adopted and incorporated California Building Standards Code, as amended from time to time.

k. The indoor use of generators and/or gas products, including, without limitation, CO2, butane, propane, and natural gas shall be prohibited for the cultivation and/or processing of cannabis.

l. Not more potable water than is reasonably necessary to sustain six (6) living plants shall be utilized.

m. The lighting used for cultivation shall not exceed 1200 watts.

n. No nuisance shall be caused or maintained on the grounds of the private residence, including but not limited to those conditions set forth in Chapter 1.14 of this Code.

2. As a condition of approval of any application for any personal cultivation permit, the Community Development Director may, in his or her discretion, impose additional requirements and restrictions in addition to those expressly set forth in this section, to the extent such additional requirements and restrictions are necessary to ensure activities authorized by a personal cultivation permit are exercised in a manner that preserves and protects the public interest. In imposing such additional requirements and restrictions, the Community Development Director may consider such factors as the proximity of the private residence to sensitive land uses, the physical characteristics of the grounds of the private residence, and other relevant matters.

• E. Enforcement and Inspection Authority.

1. Upon seventy-two (72) hour written notice, the Community Development Director, and any City police officer or code enforcement officer, shall have the right to enter into and upon the grounds of any private residence, and into or upon a private residence or accessory structure, for which a permit has been issued pursuant to this Chapter for purposes of conducting an inspection to ensure compliance with the requirements of this Chapter, and any applicable state law. A permittee’s refusal to allow said inspection shall be grounds for revocation of the permit.

2. Notwithstanding the foregoing, the City shall make reasonable efforts to schedule and conduct the inspection authorized by this section at the date and time agreeable to the permittee; provided that if the City makes reasonable efforts with a permittee to establish an agreeable date and time for an inspection, the failure or refusal of a permittee to establish an inspection date and time may be construed as a refusal to allow the inspection.

3. This section shall not limit or be interpreted as limiting the authority of the City or any representative thereof to enter upon or into the grounds of a private residence, or the private residence itself, as otherwise may be authorized by law or pursuant to a court-issued warrant.

• F. Sale or Transfer of Cannabis Prohibited.

1. It shall be unlawful for any person or permittee to sell, or otherwise transfer for any consideration whatsoever, cannabis plants or the cannabis produced by the plants, to any other person.

2. It shall be unlawful for any person or permittee to sell, transfer, give away, or provide access to cannabis plants, or the cannabis produced by the plants, to any person under the age of 21.

3. All medical cannabis cultivated pursuant to this Chapter, shall be for the personal use only of a qualified patient residing on the private residence and may not be distributed to any other person, collective, or cooperative.

• G. Grounds for Permit Denial.

1. Grounds for denial. The Community Development Director shall deny any application for a permit or for the renewal thereof if the Community Development Director makes any of the following determinations:

a. The applicant has not first obtained or has not maintained in full force and effect the permit required under this Chapter prior to engaging in the activities authorized by the permit.

b. The private residence or accessory structure used, or proposed to be used, to engage in the activities fails to comply with all applicable health, safety, zoning, fire, building and safety laws and regulations.

c. The applicant has knowingly made any false, misleading, or fraudulent statement of material fact in the application for the permit, in the application for or renewal of the permit, or submitted any false, misleading or fraudulent documentation in support of a permit or renewal permit application.

d. The applicant is in violation of a provision of the Chico Municipal Code or owes taxes, fees, or penalties pursuant to this Chapter or any other provision of the Chico Municipal Code.

e. The applicant of a new permit, or for the renewal thereof, has had a permit denied or revoked by the City within the preceding twelve (12) months.

2. Notice of Denial. Upon determination of the existence of any factors or conditions specified in Section 19.75.040(G)(1) hereinabove, the Community Development Director shall advise the applicant by serving upon the applicant a notice of denial in writing within ten (10) business days of such determination. The notice of denial shall state the Community Development Director’s findings and/or determinations that justify denial of the permit application, and shall include a summary of the evidence upon which such findings and/or determinations are based. H. Permit - Posting or Storage. Permits issued pursuant to this Chapter shall be posted, kept, stored, or maintained in the private residence or accessory structure for which the permit was issued, and shall remain so posted, kept, stored, or maintained during the period the permit remains in force.

• I. Permit - Duration and Renewal.

1. Permits issued pursuant to this Chapter shall be valid for two (2) years from the date of issuance, and shall expire immediately thereafter, unless timely renewed.

2. Permits issued pursuant to this Chapter may be renewed upon the filing of an application therefor with the

Community Development Director. The application for renewal shall be in the same form as an application for an original permit. It shall be issued or denied in a like manner as in the case of the original permit.

J. Permit Fees. A filing and processing fee, in an amount established by resolution or ordinance of the City Council, shall be submitted with each application for an original permit, or applications for permit renewals. The fee provided for in this section is imposed to cover the cost of processing and reviewing permit applications, and to cover the cost of site inspections provided for in this Chapter. The fee provided for in this section may be amended from time to time by resolution of the City Council.

ncil, shall be submitted with each application for an original permit, or applications for permit renewals. The fee provided for in this section is imposed to cover the cost of processing and reviewing permit applications, and to cover the cost of site inspections provided for in this Chapter. The fee provided for in this section may be amended from time to time by resolution of the City Council.

K. Transfer of Permit Prohibited. No permit issued pursuant to this Chapter shall be transferrable or assignable to any other person. The activities authorized by any permit issued pursuant to this Chapter shall only be conducted inside the private residence or accessory structure for which the permit was issued.

• L. Permit Revocation.

1. Grounds for Revocation. The Community Development Director shall revoke any permit issued pursuant to this Chapter, if the Community Development Director makes any of the following findings or determinations:

• a. There exists any ground for denial of the permit issued pursuant to this Chapter.

b. The permittee has knowingly made any false, misleading, or fraudulent statement of material fact in the application for a permit or in any report required to be filed by law.

c. The permittee has violated or is violating any condition of approval imposed on such permit, or upon any other entitlement granted by the City or other government agency.

d. The permittee has violated or is violating any ordinance, law, or regulation of the City, Butte County, or State of California in the course of exercising any rights under the permit.

• e. The permittee has been held liable for, or has been convicted of, any offense involving the maintenance of a nuisance resulting from any act performed in exercising any rights under the permit.

f. The continued activities under the permit would endanger, disrupt or otherwise be detrimental to the public peace, health, safety, morals or general welfare of the City or its inhabitants, or constitute a public nuisance.

2. Order of Revocation. The Community Development Director shall serve a written order of revocation upon the permittee the grounds for revocation and informing the permittee of his/her appeal rights (including method and timeline for requesting appeal). The order shall also advise the licensee/permittee of the effective date of the revocation.

3. Effectiveness of Order. Any permit revoked pursuant to the provisions of this Chapter shall become effective, and the permittee shall cease all activities authorized under such permit, no later than ten (10) calendar days from the service of the order of revocation. Where an appeal is timely filed in accordance with the provisions of this chapter, the notice of revocation shall be stayed pending the City Manager’s resolution of the appeal pursuant to the provisions of this chapter.

hall become effective, and the permittee shall cease all activities authorized under such permit, no later than ten (10) calendar days from the service of the order of revocation. Where an appeal is timely filed in accordance with the provisions of this chapter, the notice of revocation shall be stayed pending the City Manager’s resolution of the appeal pursuant to the provisions of this chapter.

M. Appeal of Permit Application Denial or Revocation of a Permit. The denial of any application for a permit, or the revocation of a City-issued permit, may be appealed to the City Manager, and such appeal shall be governed by the standards and procedures set forth in Section 19.12.040 of this Code. The applicant or permittee may seek prompt judicial review of such administrative actions or decision in a court of competent jurisdiction as provided by law, pursuant to Section 1094.6 of the California Code of Civil Procedure.

(Ord. 2505; Ord. 2553; Ord. 2589 §4)

Nothing in this Chapter shall be interpreted to the effect that the City’s permissive zoning scheme allows any other use not specifically listed herein.

(Ord. 2505; Ord. 2553; Ord. 2589 §4)

A. No person shall smoke or ingest cannabis, whether for recreational or medical use, in any public place, including, but not limited to, a public right of way, alley, street, sidewalk, park, public building, structure or parking lot, or municipal airport.

B. Smoking of cannabis, whether for medical or recreational use, shall be prohibited in any building, structure, location, area or place where the Code currently prohibits the smoking of tobacco. (Ord. 2505; Ord. 2553; Ord. 2589 §4)

A. Any violation of this Chapter is hereby declared a public nuisance and, as such, may be abated pursuant to Chapter 1.14 of this Code, or enjoined from further operation within the City of Chico.

B. All means of enforcement authorized under this Code may be used to address violations of this Chapter, including, but not limited to: civil penalties, nuisance abatement, civil actions, and/or administrative citations. The City’s

pursuance of one remedy does not preclude the City from invoking any other one or more additional remedies for such violation.

(Ord. 2505; Ord. 2553; Ord. 2589 §4)

A. No person owning, leasing, occupying or having charge, control, or possession of any premises within the City shall cause, allow, suffer, or permit such premises to be used in violation of this Chapter.

B. Except for Section 19.75.060, which shall be subject to an infraction pursuant to state law, any person violating any provision of this Chapter shall be guilty of a misdemeanor, and shall be subject to the penalty therefor, as set forth in Section 1.04.120 of this Code. Any such person shall be guilty of a separate offense for each and every day a violation of the provisions of this Chapter is committed, continued, or permitted to be continued by such person.

C. Any person violating any provision of this Chapter may also be subject to the issuance of administrative citations, pursuant to Chapter 1.15 of this Code.

(Ord. 2505; Ord. 2553; Ord. 2589 §4)

The provisions of this Chapter shall control for regulation of cannabis activities as defined herein if other provisions of the Code conflict therewith. This Chapter shall not, however, relieve any person of his or her duty to comply with such laws if additional obligations, duties, or prohibitions are imposed thereby.

(Ord. 2505; Ord. 2553; Ord. 2589 §4)

A. The provisions of this Chapter shall apply to all personal cannabis cultivation, whether maintained prior to or after the effective date of any of the provisions of this Chapter. Those cannabis plants planted, cultivated, harvested, dried, or processed prior to the effective date of any provision enacted hereunder shall be brought into compliance with such provisions within thirty (30) calendar days of the effective date thereof.

B. Any private residence not brought into compliance within the aforementioned time period shall be deemed to be in violation of this Chapter and therefore subject to enforcement or abatement proceedings as authorized in this Chapter against any and all responsible persons.

(Ord. 2505; Ord. 2553; Ord. 2589 §4)

If any section, subsection, sentence, or clause of this Chapter is held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Chapter. (Ord. 2505; Ord. 2553; Ord. 2589 §4)

A. All commercial cannabis businesses shall be located in an approved land use district pursuant to Division IV of Title 19.

• B. Distance Limitations:

1. The following distance limitations apply to commercial cannabis business types:

a. Testing laboratory: 100 feet from a school providing instruction in kindergarten or any grades 1 through 12, a day care center, or a youth center;

b. Manufacturer: 100 feet from a school providing instruction in kindergarten or any grades 1 through 12, a day care center, or a youth center;

• c. Distributor: 100 feet from a school providing instruction in kindergarten or any grades I through 12, a day care center, or a youth center;

• d. Retailer-Delivery Only: 100 feet from a school providing instruction in kindergarten or any grades 1 through

• 12, a day care center, or a youth center:

• e. Distance Limitation: Retailer-Storefront.

• a. Retailer-Storefront uses shall be located at least:

• i. 1,000 feet from a school providing instruction in any grades six (6) through twelve (12), and

ii. 600 feet from a school providing instruction in kindergarten or any grades one (1) through five (5), a day care center, or a youth center with primary youth center activities.

2. Calculation Methods.

a. A school providing instruction in kindergarten or any grades 1 through 12, a day care center, or a youth center shall for purposes of this section be known as a “

b. Distances specified in this section shall be the horizontal distance measured in a straight line from the property line of the sensitive receptor to the closest property line of the lot on which the commercial cannabis business is located, without regard to intervening structures.

c. Only sensitive receptors in existence at the time the City receives a Commercial Cannabis Permit application from the proposed Retailer-Storefront shall be considered.

d. One or more of the following factors may be considered by the City to determine if the sensitive receptor was in existence at the time of the City’s receipt of the Commercial Cannabis Permit application:

• i. The sensitive receptor is open and operating;

ii. The sensitive receptor has a Chico City Business Tax Certificate for the specific location and sensitive use; iii. The sensitive receptor has submitted a Business Tax Certification application to the City for the specific location and sensitive use and is undergoing construction or other tenant improvements at the specific location in question; and

iv. Other factors that may indicate a sensitive receptor was in existence as determined by the Community Development Director.

e. Notwithstanding the foregoing, an application for a Commercial Cannabis Permit may be deemed in compliance with this Section if evidence is submitted, to the satisfaction of the Community Development Director, that the sensitive receptor will cease operation at the location prior to the issuance of a building permit for the Retailer-Storefront location.

(Ord. 2553; Ord. 2589 §4)

A. Permit Required: All commercial cannabis businesses shall obtain and maintain a Commercial Cannabis Permit issued by the City of Chico pursuant to Title 5.42.

B. Compliance with City, Local and State Law. All commercial cannabis businesses shall comply with the standards set by State law, regulations and policies, and all city codes and resolutions, as well as any applicable requirements of the County of Butte.

C. Access Limited. For all commercial cannabis businesses, the general public is only allowed to access those areas of the premises which are identified in the site plan included with the Commercial Cannabis Permit as being open to public access. Only agents, applicants, managers, employees, and volunteers of the commercial cannabis permittee and agents or employees of the City, or other governmental agency are allowed in non-public access areas. D. Hours of Operation:

a. Retailer-Storefront and Retailer-Delivery businesses may operate no earlier than 8:00 a.m. and no later than 9:00 p.m., unless otherwise more restrictive hours are stated in a Use Permit for such location, or unless zoning regulations specify more restrictive hours.

b. Manufacturers, distributors and testing laboratories may only accept commercial traffic to and from the premises between 8:00 a.m. and 7:00 p.m., unless zoning regulations specify more restrictive hours.

E. On-site Consumption Prohibited: Cannabis shall not be consumed by anyone on the premises in any form at any commercial cannabis business, unless explicitly authorized by a City ordinance, resolution, rule, regulation and/or pursuant to explicit terms of a Commercial Cannabis Permit, or City-approved Conditional Use Permit or Development Agreement.

F. Visibility: No manufacturing process, testing methodology, storage, or loading/ unloading cannabis or cannabis products, shall be visible from the exterior of any premises issued a Commercial Cannabis Permit. No cannabis or cannabis products shall be visible on part of any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time.

G. Inventory Tracking: Each commercial cannabis business shall have in place and at all times of operation of the business operate a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the City. The commercial cannabis business shall ensure that such information is compatible with the City’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager or designee prior to being used by the permittee and be the same system as specified in their commercial cannabis business permit.

nsure that such information is compatible with the City’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager or designee prior to being used by the permittee and be the same system as specified in their commercial cannabis business permit.

H. Compliance with California Law: All cannabis and cannabis products sold, tested, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the State of California and local regulations. All activities related to the purchase, sales, delivery, distribution, cultivation, testing, and manufacture of cannabis or cannabis products shall be conducted in conformity with state law.

I. Contact Information: Each commercial cannabis business shall provide the City Manager with the name, telephone number (both landline and mobile) of an on-site manager or owner to whom emergency notice may be provided at any hour of the day.

J. Signage and Notices:

a. In addition to the requirements otherwise set forth in this section, or as a term or condition imposed in a Use Permit, business identification signage for a commercial cannabis business shall conform to the requirements of state law and the City of Chico City Code, including, but not limited to, the requirements for a City sign permit, or applicable zoning laws regulating signs.

b. Each commercial cannabis business premises shall be visibly posted with clear and legible notices indoors indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited.

• K. Age Restrictions:

a. Persons under the age of twenty-one (21) years shall not be allowed on the premises of a commercial cannabis business except as allowed under California law.

b. Persons under the age of twenty-one (21) years shall not be allowed to serve as a driver for a delivery service, except as allowed under California law pertaining to sales of cannabis for medicinal use.

c. It shall be unlawful and a violation of this Chapter for any person to employ any person at a commercial cannabis business who is not at least twenty-one (21) years of age.

L. Odor Control.

a. Odor control devices and techniques shall be incorporated as needed in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site.

b. Commercial cannabis businesses shall provide sufficient odor control devices and techniques, including but not limited to an odor absorbing ventilation and exhaust system utilizing air scrubbers or charcoal filtration systems, so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, at any adjoining use of the property not part of the commercial cannabis premises, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business.

c. Commercial cannabis businesses shall install and maintain the following equipment, or other equipment which the City Engineer or Public Works Director or Building Official determines is a more effective method or technology, to address such odor control:

i. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; ii. An air system that creates negative air pressure between the commercial cannabis business’s interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business.

d. All exhaust ventilation equipment is required to be appropriate for the use involved and must comply with the California Fire and Mechanical codes.

M. Display of Permit and City Business Tax Certificate. The original copy of the Commercial Cannabis Permit issued by the City pursuant to this Chapter, the City issued business license, and the state-issued Seller’s Permit, shall be posted inside the commercial cannabis business in a location readily-visible to any City, County or State employee, official, or agent authorized to enforce the City’s Code, or applicable cannabis-related laws.

N. Loitering Prohibited. The permittee of a commercial cannabis business shall prohibit loitering by persons outside on the premises, and is required to enforce same within its premises and adjacent public areas, including cooperating with the City’s law enforcement agency dispatched to enforce same. The placement and use of no loitering signage shall be included as part of any application submittal, and depicted on a business or operational plan.

O. Permits and other Approvals. Prior to the operation of a commercial cannabis business, the person intending to establish a commercial cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits and approvals from the relevant City or County department or division which may be applicable to the zoning district in which such commercial cannabis business intends to establish and to operate.

he operation of a commercial cannabis business, the person intending to establish a commercial cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits and approvals from the relevant City or County department or division which may be applicable to the zoning district in which such commercial cannabis business intends to establish and to operate.

P. Adherence to Operating Procedures. Permittees shall adhere to all applicable operating procedures, including those submitted as part of the initial application process, and pursuant to those established in applicable State of California laws, regulations, and policies.

Q. Compliance with Disability Regulations. This Chapter does not exempt a commercial cannabis business from complying with all applicable local, State and federal laws and regulations pertaining to persons with disabilities.

R. Non-Discrimination. No commercial cannabis business may discriminate or exclude patrons in violation of local, State and federal laws and regulations.

S. Contact Information. Each commercial cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the commercial cannabis business can be provided. Each commercial cannabis business shall also provide this information to all businesses and residences located within 300 feet of the commercial cannabis business.

T. Coordination Meetings. The owner, manager, and community relations representative from each commercial cannabis business holding a Commercial Cannabis Permit shall, if requested by the City Manager or designee, attend a quarterly meeting with the interested parties to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter.

U. Security Plan: Each business shall maintain on file with the City a security plan.

V. Restriction on Alcohol and Tobacco Sales, Dispensing or Consumption: No person shall cause, allow, or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco products on or about the premises of a commercial cannabis business, except as allowed under state law.

W. Restriction of On-site Consumption: No person shall cause, allow, or permit the consumption of cannabis on-site of any commercial cannabis business.

(Ord. 2553; Ord. 2589 §4)

19.75.140 Operational Requirements- Commercial Cannabis Retailer - Storefront.

A. On-site Supervision: All commercial cannabis storefront retailers shall have a manager on the premises at all times during hours of operation.

• B. Delivery Services. Storefront retailers also providing delivery shall comply with the operational requirements pertaining to Retailer - Delivery Only businesses in Section 19.75.150.

C. Site Access. Entrances into the retailer storefront shall be controlled at all times with either security personnel or electronic/mechanical entry system. Adult use storefront retailers without medicinal cannabis sales shall verify the age of all customers to ensure persons under the age of 21 are not permitted on the premises. Adult use medicinal sales storefront retailers shall verify the age and possession of valid doctor’s recommendation of all customers to ensure persons under the age of 18 are not permitted on the premises.

• D. Medicinal Cannabis.

a. Commercial cannabis storefront retailers selling medicinal cannabis shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of 18 years and that the potential customer has a valid doctor’s recommendation;

b. Verify the identity and age of the qualified patient, primary caregiver, or customer receiving cannabis or cannabis products from the delivery only retailer; and

• c. If a medicinal cannabis transaction,

• i. Verify the validity of the qualified patient’s recommendation from a physician to use cannabis for medicinal purposes or primary caregiver’s status as a primary caregiver for the particular qualified patient, and

ii. Maintain a copy of the physician recommendation or Identification Card, as described in Health and Safety Code Sections 11362.71 through 11362.77, as may be amended from time to time, at its permitted business location for a period of not less than seven (7) years.

E. Physician Evaluations Prohibited: No physician shall be allowed at any time to evaluate patients or customers for the issuance of a medicinal cannabis recommendation or medicinal cannabis identification card where applicable. F. Complimentary Promotions Prohibited. A non-medicinal cannabis storefront retailer may not give away, or donate specific devices, contrivances, instruments, or paraphernalia necessary for consuming cannabis products, including, but not limited to, rolling papers and related tools, pipes, water pipes, and vaporizers. A storefront retailer may not give away samples or cannabis products free of charge.

G. Required Notifications. All cannabis storefront retailers shall notify qualified patients, primary caregivers, and customers (verbally or by written agreement) and by posting of a notice or notices conspicuously in at least 15-point type within the permitted premises that state the following:

a. “The sale or diversion of cannabis or cannabis products without a permit issued by the City of Chico is a violation of State law and the Chico City Code.”

b. “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from a permittee is a crime and can lead to arrest.”

c. “Patrons must not loiter in or near these premises and may not consume cannabis or cannabis products in the vicinity of this business or in any place not lawfully permitted. These premises and vicinity are monitored to ensure compliance.”

d. “Warning: the use of cannabis or cannabis products may impair a person’s ability to drive a motor vehicle or operate heavy machinery.”

e. “CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis- derived products will expose you and those in your immediate vicinity to cannabis smoke. Cannabis smoke is known by the State of California to cause cancer.”

H. Location of Products. All cannabis concentrate inhaled products, including but not limited to, dabs, shatter, budder, wax, and butane hash oil, shall be stored behind the retail counter and out of the reach of customers at all

times except when being handled by an employee during a sales transaction.

I. Added Artificial Flavor Prohibited. Retailers shall not sell cannabis products which contain an added characterizing flavor. For purposes of this Chapter, “characterizing flavor” means a taste or aroma, other than the taste or aroma of cannabis, imparted either prior to or during consumption. This includes, but is not limited to, tastes or aromas relating to food or drink of any sort; menthol; mint; wintergreen; fruit; chocolate; vanilla; honey; candy; cocoa; dessert; alcoholic beverages; herbs; or spices. Flavor agents consisting of terpenes of cannabis shall not be considered an added characterizing flavor. Such prohibition shall not apply to cannabis products which are manufactured as edible or topical products.

J. Educational Materials. A cannabis storefront retailer shall provide written educational materials to all customers:

a. Regarding each product sold, with information regarding the name and type of product, instructions for use, and expected effects.

b. Regarding all edible cannabis products and cannabis concentrate products sold to a customer, which shall include information on safe storage and use of the product, warnings against child access and exposure to the product, and warnings of potential side effects concerning brain development of individuals under the age of twenty-five years and potential harm to pregnant women.

K. Training Required: A cannabis storefront retailer shall require all employees who interact with public customers, as well as all management staff, to complete training to ensure competency of employees for their assigned functions within the first year of the retailers’ first year of operation, and within one year of each employee’s hire date thereafter. The retailer shall maintain records showing completion of each employee’s training for a period of two years and provide such records to the City Manager or his/her designee upon request. (Ord. 2553; Ord. 2589 §4)

A. Point of Sale System. A cannabis delivery retailer shall facilitate the dispensing of cannabis or cannabis products with a technology platform owned by or licensed to the delivery retailer that uses point-of-sale technology to track and database technology to record and store the following information for each transaction involving the exchange of cannabis or cannabis products between the applicant and qualified patient, primary caregiver, or customer:

• a. The identity of the individual dispensing cannabis or cannabis products on behalf of the permittee;

b. The identity of the qualified patient, primary caregiver, or customer receiving cannabis or cannabis products from the permittee;

• c. The type and quantity of cannabis or cannabis products dispensed and received; and

d. The gross receipts charged by the licensee and received by the individual dispensing cannabis or cannabis products on behalf of the permittee for the cannabis or cannabis products dispensed and received.

B. Security Plan. Security plans developed pursuant to this Chapter shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit. (Ord. 2553; Ord. 2589 §4)

A. Visibility of Manufacturing Processes. From a public right-of-way, there shall be no exterior evidence of cannabis manufacturing allowed on the premises, except for any signage authorized by this Code.

B. Use of compressed gas. Any compressed gases used in the manufacturing process shall be approved by the Fire Chief. Any compressed gases shall not be stored on any property within the City of Chico in containers that exceed the

amount approved by the Fire Chief. Each site or parcel subject to a Commercial Cannabis Permit shall be limited to a total number of tanks as authorized by the Fire Chief on the property at any time.

C. Use of solvents. Any solvents used in the manufacturing process shall be approved by the Fire Chief. Cannabis Manufacturers using solvents or gases for extraction shall use N-butane, isobutane, propane, or heptane, or other solvents or gases exhibiting low to minimal potential human-related toxicity approved by the Fire Chief. These solvents must be of at least ninety-nine percent purity and procedures showing that any extraction process must use them in a professional grade closed loop extraction system designed to recover the solvents and work in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present.

D. Use of Gas Extraction Systems. If an extraction process uses a professional grade closed loop CO2 gas extraction system, every vessel must be certified by the manufacturer for its safe use.

a. Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number.

b. Certification from an engineer licensed by the State of California must be provided to the Fire Chief for a professional grade closed loop system used by any commercial cannabis manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to:

• i. The American Society of Mechanical Engineers (ASME);

• ii. American National Standards Institute (ANSI);

• iii. Underwriters Laboratories (UL); or

• iv. The American Society for Testing and Materials (ASTM).

• c. Certification document must contain the signature and stamp of the professional engineer and serial number of the extraction unit being certified.

E. Fire Chief Approval. Professional closed loop systems, other equipment used, the extraction operation, and all related facilities must be approved for their use by the Fire Department and meet any required fire, safety, and building code requirements specified in Building and Fire Codes, as adopted by the City.

• F. Approved Non-solvent/gas Manufacturing Methods. Cannabis Manufacturers may use:

a. Heat, screens, presses, steam distillation, ice water, and other methods without employing solvents or gases to create kief, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts.

• b. Food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts.

• G. Ethanol Recapture. Ethanol shall be removed from all extracts in a manner to recapture the solvent and ensure that it is not vented into the atmosphere.

H. Procedures and Protocols. Cannabis Manufacturers creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace. I. Training. Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully trained on how to use the system, must have direct access to applicable material safety data sheets and handle and store the solvents and gases safely. Training materials and records shall be presented to the City upon request.

J. Assurance Testing. Parts per million for one gram of finished extract cannot exceed State standards for any residual solvent or gas when quality assurance tested.

K. Added Artificial Flavor Prohibited. Cannabis manufacturers shall not manufacture cannabis products which contain an added characterizing flavor. For purposes of this Chapter, “characterizing flavor” means a taste or aroma, other than the taste or aroma of cannabis, imparted either prior to or during consumption. This includes, but is not limited to, tastes or aromas relating to food or drink of any sort; menthol; mint; wintergreen; fruit; chocolate; vanilla;

honey; candy; cocoa; dessert; alcoholic beverages; herbs; or spices. Flavor agents consisting of cannabis terpenes shall not be considered an added characterizing flavor. Such prohibition shall not apply to cannabis products which are manufactured as edible or topical products.

L. Annual California Fire Code Operational Permit. Cannabis manufacturers shall obtain annually and keep current at all times a Fire Code Operational Permit.

M. Sprinkler System. An automatic sprinkler system shall be installed throughout all buildings containing cannabis manufacturing uses, including but not limited to oil extraction operations and cannabis-infused product kitchens/bakeries.

N. Fire Alarm System. An automatic fire alarm system shall be provided through building containing cannabis manufacturing uses, including but not limited to oil extraction operations and cannabis-infused product kitchens/bakeries. The installed fire alarm system shall meet the requirements of emergency voice/alarm

communication systems required by the California Fire Code and shall be designed and installed in accordance with National Fire Protection Association standards.

O. Fire Department Access. A key box shall be installed at an approved location to allow immediate access to the premises in the event of an emergency for life-saving and fire-fighting purposes, due to the potential hazards associated with manufacturing facilities. The box shall be of an approved type listed in accordance with UL 1037 and shall contain keys to gain necessary access as required by the fire code official.

(Ord. 2553; Ord. 2589 §4)

• A. Visibility. From a public right-of-way, there shall be no exterior evidence of cannabis distribution except for any signage authorized by this Code.

• B. Tamper Resistant Packaging. A cannabis distributor shall only procure, sell, or transport cannabis or cannabis products that are packaged and sealed in tamper-evident packaging that uses a unique identifier, such as a batch and lot number or bar code, to identify and track the cannabis or cannabis products.

• C. Recyclable Materials. A cannabis distributor shall minimize materials that are non-recyclable or non-reusable.

• D. Distribution Personnel.

• a. A cannabis distributor shall maintain a database and provide a list of individuals and vehicles authorized to conduct transportation on behalf of the permittee, pursuant to the Commercial Cannabis Permit, within the City.

• b. Individuals authorized to conduct transportation on behalf of the cannabis distributor shall have a current and valid California Driver’s License.

c. During transportation, the individual conducting transportation on behalf of the cannabis distributor shall maintain a copy of the Commercial Cannabis Permit and shall make it available upon the request of agents or employees of the City requesting documentation.

• E. Distribution Vehicle. Cannabis or cannabis products shall be transported only in a vehicle that is:

• a. Insured at or above the legal requirement in California,

• b. Capable of securing (locking) the cannabis or cannabis products during transportation, and

• c. Capable of being temperature controlled if perishable cannabis products are being transported.

• (Ord. 2553; Ord. 2589 §4)

• A. Cannabis testing shall take place within an enclosed building.

• B. From a public right-of-way, there shall be no exterior evidence of cannabis testing except for any signage authorized by this Code.

• C. All cannabis testing shall be performed in accordance with State law.

• D. A cannabis testing laboratory shall adopt a standard operating procedure using methods consistent with general requirements established by the International Organization for Standardization, specifically ISO/IEC 17025, to test cannabis and cannabis products, and shall operate in compliance with the law.

• E. A cannabis testing laboratory shall be accredited by a body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Agreement.

F. A cannabis testing laboratory shall establish standard operating procedures that provide for adequate chain of custody controls for samples transferred to the testing laboratory for testing.

G. A cannabis testing laboratory shall destroy the remains of samples of any cannabis or cannabis product upon completion of analyses. Destruction shall be done in a manner compliant with State law and regulations.

H. Any testing that requires the use of solvents, compressed gas, or gas extraction systems for extraction must comply with the requirements for manufacturers in Section 19.75.160.B-I Operational Requirements-Cannabis Manufacturers.

(Ord. 2553; Ord. 2589 §4)