Coachella Municipal Code Ch. 5.68 Commercial Cannabis Activity Regulatory Permit

Footnotes:

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Editor's note— Ord. No. 1109, § 2, adopted July 12, 2017, amended Ch. 5.68 in its entirety to read as herein set out. Former Ch. 5.68, §§ 5.68.010—5.68.260, pertained to medical cannabis facilities regulatory permit and derived from Ord. No. 1084, § 2, adopted Jan. 27, 2016.

It is the purpose and intent of this chapter to regulate the cultivation, manufacturing, testing, and distribution, of cannabis (including cannabis products and edible cannabis products) within the city of Coachella.

The regulations and prohibitions in this chapter are enacted to ensure the health, safety, and welfare of the residents of the city. The regulations and prohibitions herein, which are in compliance with the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program ("MMP"), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA") , (collectively, "state law"), do not interfere with the use and possession of cannabis as authorized under state law.

Nothing in this chapter shall be construed to: (1) allow persons to engage in conduct that endangers others or causes a public nuisance, or (2) allow any activity relating to the cultivation, manufacturing, testing, distribution, or use of cannabis that is otherwise illegal under California state law.

(Ord. No. 1109, § 2, 7-12-17; Ord. No. 1162, § 2, 5-27-20)

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 commercial cannabis regulatory permit under this chapter. An "applicant" includes all representatives, agents, parent entities, or subsidiary entities of the applicant.

"Business" means an entity, sole proprietorship, partnership, or corporation operating legally in the State of California, that sells, leases, distributes, creates, or otherwise offers products or services to customers.

"Cannabis" has the same definition as in Business and Professions Code Section 26001(f), as amended.

"Cannabis products" has the same definition as in Business and Professions Code Section 26001(k), as amended; however, when the term "cannabis" is used in this chapter, it shall include "cannabis products."

"City" means the city of Coachella.

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

"Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, and transportation of cannabis and cannabis products as provided in this chapter. Pursuant to this chapter, "commercial cannabis activity" includes a non-retail microbusiness.

"Commercial cannabis business" means a business that engages in one or more commercial cannabis activities.

"Commercial cannabis regulatory permit" or "regulatory permit" means a regulatory permit issued by the city pursuant to this chapter, to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the city. The initial permit and annual renewal of a permit is made expressly contingent upon the business' ongoing compliance with all of the requirements of this chapter and any regulations adopted by the city governing the commercial cannabis activity at issue.

"Corporation" has the same definition as in California Corporations Code Section 162, as amended.

"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 (21) years of age or older or a natural person eighteen (18) 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.

"Director" has the same definition as in California Corporations Code Section 164, as amended.

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

"Edible cannabis product" has the same definition as in California Business and Professions Code Section 26001(y), as amended. When the term "cannabis" is used in this chapter, it shall include "edible cannabis products."

"Entity" means any form of business organization recognized under California law, including but not limited to a corporation, limited liability company, partnership, limited partnership, limited liability partnership, joint venture, association, trust, estate, or sole proprietorship, whether formed under the laws of this state or another jurisdiction. This term includes any structure that may hold an ownership interest in a commercial cannabis business.

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

"Management" means for the process of directing, controlling, and overseeing the day-to-day operations of a commercial cannabis activity business, including making strategic decisions, managing personnel, setting policies, and allocating resources to ensure operational efficiency and compliance with legal and ethical standards.

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

"Manufacturer" means a business 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 containers.

"Non-retail microbusiness" means a commercial business that engages in indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and state law on licensed cultivators, distributors, level 1 manufacturers, to the extent the business engages in such activities.

"Non-storefront retail microbusiness" means a commercial business that engages in non-storefront retail cannabis sales (delivery only) and at least two of the following commercial cannabis activities: Indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, level 1 manufacturing, and distribution, 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 business engages in such activities.

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

"Officer" means an individual appointed or elected to perform designated duties within a corporation, as specified by the corporation's bylaws, the board of directors, or as required by law. This includes roles such as president, vice president, secretary, chief financial officer, and other positions that might be outlined in the corporations' governance documents. Officers are chosen by the board and serve at its discretion unless otherwise specified in the articles or bylaws of the corporation.

"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 (20) percent or more in the person applying for a regulatory permit or a permittee, unless the interest is solely a security, lien, or encumbrance.

(2) The chief executive officer of a nonprofit or other entity.

(3) A member of the board of directors of a nonprofit.

(4) An individual who will be participating in the direction, control, or management of the person applying for a regulatory permit.

"Ownership" means the possession of an equity interest or financial stake in an entity applying for or holding a commercial cannabis regulatory permit, including but not limited to shares of stock in a corporation, membership interests in a limited liability company, or partnership interests in a partnership, that confers rights to profits, capital, voting, or control. Ownership excludes security interests, liens, or encumbrances.

"Partner" means a person who has become a partner in a partnership.

"Partnership" has the same definition as in California Corporations Code Section 16101(9), as amended.

"Permittee" means any person holding a regulatory permit that has been issued under this chapter. A "permittee" includes all representatives, agents, parent entities, or subsidiary entities of the permittee.

"Person" means an 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, and the plural as well as the singular.

"Premises" means the designated structures and land specified in the regulatory permit 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 must be a contiguous area and may only be occupied by one licensee.

"Retail cannabis business" means a business that sells and/or delivers cannabis or cannabis products to customers, and includes the following business types: Non-storefront retail microbusiness, non-storefront retailer, storefront retailer, and storefront retail microbusiness.

"Retailer" or "storefront retailer" shall have the same definition as in California Business and Professions Code Section 26001(ay), as amended.

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

"Storefront retail microbusiness" means a commercial business that engages in retail cannabis sales and at least two of the following commercial cannabis activities: Indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, level 1 manufacturing, and distribution, 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.

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

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. 1109, § 2, 7-12-17; Ord. No. 1162, § 3, 5-27-20; Ord. No. 1226, § 2, 10-22-25)

Commercial cannabis activity permitted under this chapter includes indoor and interim outdoor cultivation, manufacture (including shared-use facilities), distribution, testing, and non-retail microbusinesses (including possession, processing, storing, and labeling incidental to such activity). Prior to initiating operations and as a continuing requisite to operating a commercial cannabis activity, the legal representative of the persons wishing to operate and/or lease out a facility for commercial cannabis activity shall obtain both a conditional use permit and a regulatory permit from the city manager and shall pay an application fee as established by resolution adopted by the city council as amended from time to time. Regulatory permit requirements for retail cannabis businesses can be found in Chapter 5.69.

(Ord. No. 1109, § 2, 7-12-17; Ord. No. 1162, § 4, 5-27-20; Ord. No. 1171, § 2, 8-25-21)

An application for a regulatory permit shall include, but shall not be limited to, the following information:

A. The name, address, and telephone number of the applicant.

B. A description of the statutory entity or business form that will serve as the legal structure for the applicant and a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement operating agreement, and fictitious business name statement.

C. The name, address, telephone number, title, and function of each of owner of the commercial cannabis business.

D. A legible copy of each applicant's photo identification, such as a state driver's license, a passport issued by the United States, or a permanent resident card.

E. A list of the license or permit types (including license or permit numbers) held by the applicant that involve the operation of a commercial cannabis activity, including the date the license or permit was issued and the jurisdiction or state license authority that issued the license or permit.

F. Whether the applicant has been denied a license or permit by the city, any other jurisdiction, and/or the state that involves the operation of a commercial cannabis activity. The applicant shall provide a description of the license or permit applied for, the name of the jurisdiction or state license authority that reviewed the license or permit application, and the date of denial.

G. The proposed commercial cannabis activity's physical address, telephone number, website address, and email address.

H. Contact information for the applicant's designated primary contact person including the name, title, address, phone number, and email address of the individual.

I. A list of every fictitious business name the applicant is operating under including the address where the business is located.

J. Financial information including the following:

1. A list of funds belonging to the commercial cannabis business held in savings, checking, or other accounts maintained by a financial institution. The applicant shall provide for each account, the financial institution's name, the financial institution's address, account type, account number, and the amount of money in the account.

2. A list of loans made to the commercial cannabis business. For each loan, the applicant shall provide the amount of the loan, the date of the loan, term(s) of the loan, security provided for the loan, and the name, address, and phone number of the lender.

3. A list of investments made into the commercial cannabis business. For each investment, the applicant shall provide the amount of the investment, the date of the investment, term(s) of the investment, and the name, address, and phone number of the investor.

4. A list of all gifts of any kind given to the applicant for its use in conducting commercial cannabis activity. For each gift the applicant shall provide the value of the gift or description of the gift, and the name, address, and phone number of the provider of the gift.

K. A copy of the applicant's completed application for electronic fingerprint images submitted to the Department of Justice and Federal Bureau of Investigation.

L. A list of each applicant's misdemeanor and felony convictions, if any. For each conviction, the list must set forth the date of arrest, the offense charged, the offense convicted, the jurisdiction of the court, and whether the conviction was by verdict, plea of guilty, or plea of nolo contendre.

M. A complete and detailed diagram of the proposed premises showing the boundaries of the property and the proposed premises to be permitted, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways, storage areas and exterior lighting. The diagram must show the areas in which all commercial cannabis activity will take place, including but not limited to, limited-access areas. All construction, including but not limited to, buildings, fences, security systems, light blocking apparatuses, signs and outdoor lighting fixtures, shall be designed to blend in with the character of the surrounding area.

N. For cultivation applicants, a detailed water management plan including the proposed water supply, proposed conservation measures, and any water offset requirements; information regarding stormwater control and wastewater discharge; a list of all pesticides, fertilizers, and any other hazardous materials that are expected to be used in the cultivation process; a storage and hazard response plan for all pesticides, fertilizers, and any other hazardous materials kept on the cultivator's site; all power sources proposed to be used.

O. A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on the premises. As part of the security plan, a lighting plan is required that shows existing and proposed exterior and interior lighting that will provide adequate security lighting for the commercial cannabis activity and premises. The security plan must be prepared by a qualified professional and include provisions in compliance with the following:

1. Security cameras shall be installed and maintained in good condition, and used in an on-going manner with at least two hundred forty (240) concurrent hours of digitally recorded documentation in a format approved by the city manager. The cameras shall be in use twenty-four (24) hours per day, seven days per week. The areas to be covered by the security cameras shall include, but are not limited to, the public areas, storage areas, employee areas, all doors and windows, and any other areas as determined to be necessary by the city manager.

2. The premises shall be alarmed with an audible interior and exterior alarm system, unless waived for extenuating circumstances by the city manager that is operated and monitored by a recognized security company, deemed acceptable by the city manager. Any change in the security company shall be subject to the approval of the city manager. All current contact information regarding the security company shall be provided to the city manager.

3. Entrance to the cultivation, manufacturing, and testing areas and any storage areas shall be locked at all times, and under the control of cannabis facility staff.

4. All cannabis shall be securely stored, and a reliable, commercial alarm system shall be installed and maintained where the cannabis is secured.

5. A licensed security guard, licensed by the California Department of Consumer Affairs, shall be present at the premises during all hours of operation. If the security guard is to be armed, then the security guard shall possess at all times a valid security guard card and firearms permit issued by the California Department of Consumer Affairs.

6. A heavy-gauge chain-link (or other material as approved by the planning commission) fence a minimum of eight (8) feet in height (or as otherwise approved by the city manager) shall be constructed around the perimeter of the premises to prevent public access and obscure the cannabis cultivation facility from public view. Screening can include landscaping or vinyl slats, as permitted by law enforcement.

P. An odor control plan that describes the air treatment system or other methods that will be implemented to prevent odors generated by the commercial cannabis activity from being detected outside the building(s) on the premises. This section is not intended to prohibit the use of polyethylene plastic film, polycarbonate sheeting, and shade cloth fabrics for use in temporary greenhouses and temporary hoop houses as part of an approved "interim outdoor cannabis cultivation uses" allowed under Title 17.

Q. A comprehensive business operations plan that includes the following:

1. Business Plan. A plan describing how the commercial cannabis activity business will operate in accordance with this code, state law, and other applicable regulations. The business plan must include plans for handling cash and transporting cannabis and cannabis products to and from the premises, if applicable.

2. Community Relations Plan. A plan describing who is designated as being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted.

3. Neighborhood Responsibility Plan. A plan addressing any adverse impacts of the proposed commercial cannabis activity on the surrounding area.

4. Insurance. The applicant's certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the commercial cannabis activity.

5. Budget. A copy of the applicant's most recent annual budget for operations.

R. For applicants or permittees that have ten (10) or more employees, the applicant for a new regulatory permit, or for a renewal, shall provide proof, satisfactory to the city manager, that the applicant or permittee has entered into and will abide by the terms of a labor peace agreement. Such proof shall be a condition to the issuance by the city of any new permit or for the renewal of any such permit. For applicants/permittees who have not yet entered into a labor peace agreement, the applicant/permittee shall provide a notarized statement indicating the applicant/permittee will enter into and abide by the terms of a labor peace agreement as soon as reasonably practicable after issuance or renewal of the regulatory permit, but in no event later than one hundred eighty (180) days following the issuance or renewal. Once the applicant has entered into the labor peace agreement, the applicant shall provide the city manager with a copy of the page of the labor peace agreement that contains the signatures of the union representative and the applicant.

S. The name and address of the owner and lessor of the real property upon which the commercial cannabis activity is to be operated. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a commercial cannabis activity will be operated on his or her property.

T. Authorization for the city manager to seek verification of the information contained within the application.

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

V. A full and complete copy of the applicant's most current application submitted to and approved by the applicable state licensing authority.

W. Any such additional and further information as is deemed necessary by the city manager to administer this chapter.

(Ord. No. 1109, § 2, 7-12-17; Ord. No. 1171, § 3, 8-25-21; Ord. No. 1185, § 2, 11-10-21; Ord. No. 1226, § 3, 10-22-25)

A. Any person who is an owner of a commercial cannabis business must be legally authorized to do so under applicable state law.

B. Commercial cannabis business owners shall be required to:

1. Submit to a criminal background check.

2. Complete a criminal background check prior to issuance or transfer of a commercial cannabis regulatory permit.

C. The city shall conduct criminal background checks which must, at a minimum, identify the following for each owner:

1. Whether the owner has ever been convicted of a violent felony as defined by California Penal Code 667.5 or equivalent offense in other states;

2. Whether the owner has ever been convicted of a serious felony, as defined by California Penal Code 1192.7 or equivalent offense in other states;

3. Whether the owner has ever been convicted of a felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor;

4. Whether the owner has ever been convicted of a felony for drug trafficking with enhancements pursuant to Sections 11370.4 or 11379.8 of the Health and Safety Code; or

5. Whether the owner has ever been convicted of a felony involving fraud, deceit, or embezzlement.

D. Evidence of a conviction of any the offenses enumerated in Section 5.68.040(D) of this chapter shall be grounds for denial or revocation of a commercial cannabis regulatory permit, and/or disqualification from serving as an owner with a commercial cannabis business permittee in the city of Coachella.

(Ord. No. 1109, § 2, 7-12-17; Ord. No. 1226, § 4, 10-22-25)

Based on the information set forth in the application, the city manager may impose reasonable terms and conditions on the proposed operations of the commercial cannabis activity in addition to those specified in this chapter.

(Ord. No. 1109, § 2, 7-12-17)

The city manager may deny an application for a regulatory permit or renewal of a regulatory permit upon making any of the following findings:

A. The applicant or the premises for which a regulatory permit is applied does not qualify for a permit under this chapter.

B. The applicant or permittee fails to comply with the provisions of this chapter.

C. The applicant or permittee has failed to provide information required by the city manager.

D. The applicant or permittee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the city manager determines that the applicant or permittee is otherwise suitable to be issued a license and granting the license would not compromise public safety, the city manager shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant or permittee to be issued a permit based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the city manager shall include, but not be limited to, the following:

1. A violent felony, as defined by California Penal Code Section 667.5 or equivalent offense in other states.

2. A serious felony, as defined by California Penal Code Section 1192.7 or equivalent offense in other states.

3. A felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.

4. A felony for drug trafficking with enhancements pursuant to California Health and Safety Code Sections 11370.4 or 11379.8.

5. A felony involving fraud, deceit, or embezzlement.

E. The applicant or permittee has been sanctioned by a state licensing authority or a city, county, or city and county for unlicensed commercial cannabis activities or unlicensed retail cannabis business or has had a state license revoked in the three years immediately preceding the date the application is filed with the city manager.

F. The applicant or permittee is not properly organized or operating in strict compliance pursuant to the Compassionate Use Act of 1996, the Medical Marijuana Program Act, the Medicinal and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA"), and any other applicable law, rules and regulations.

(Ord. No. 1109, § 2, 7-12-17; Ord. No. 1162, § 5, 5-27-20; Ord. No. 1226, § 5, 10-22-25)

A regulatory permit is valid for two years from the date that the permit is issued, unless suspended or revoked sooner.

(Ord. No. 1109, § 2, 7-12-17)

A. To renew a regulatory permit, a completed permit renewal form and renewal permit fee shall be received by the city manager from the permittee no earlier than sixty (60) calendar days before the expiration of the permit and no later than the last business day before the expiration of the permit.

B. In the event the regulatory permit is not renewed prior to the expiration date, the permittee must cease all commercial cannabis activity.

(Ord. No. 1109, § 2, 7-12-17)

Every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding thirty (30) consecutive calendar days after a certificate of occupancy is issued, shall, within thirty (30) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the permit to the city manager. The city manager may seize the permit of a permittee who fails to comply with the surrender provisions of this section and may proceed to revoke the permit.

(Ord. No. 1109, § 2, 7-12-17)

The city manager may suspend, modify, or revoke a commercial cannabis activity regulatory permit issued pursuant to the provisions of this chapter for any of the following reasons:

A. One or more of the circumstances upon which a regulatory permit could be denied exists or has occurred;

B. One or more conditions of the regulatory permit has been violated; or

C. The permittee, its owners, officers, directors, partners, agents, or other persons vested with the authority to manage or direct the affairs of the business have violated any provision of this chapter.

(Ord. No. 1109, § 2, 7-12-17; Ord. No. 1162, § 6, 5-27-20)

Any decision regarding the denial, suspension, or revocation of a commercial cannabis activity regulatory permit may be appealed to a hearing officer. Notice of and the procedures governing such hearing shall be provided pursuant to Chapter 3.28 of the code.

(Ord. No. 1109, § 2, 7-12-17; Ord. No. 1162, § 7, 5-27-20)

A. Indoor cultivation. An indoor cultivation permittee shall only cultivate cannabis in a fully enclosed and secure building. An indoor cultivation permittee shall not allow cannabis or cannabis products on the premises to be visible from the public right of way, the unsecured areas surrounding the buildings on the premises, or the premises' main entrance and lobby.

B. Interim Outdoor Cultivation. Cannabis plants shall not be easily visible from offsite. All interim outdoor commercial cultivation sites should have a minimum twenty-foot setback with an opaque fencing material to screen the outdoor cannabis grow areas from view to the public streets. All interim outdoor commercial cultivation activities shall occur within a secure fence at least six feet in height that fully encloses the cultivation area(s) and prevents access to the cultivation area(s). The fence must include a lockable gate(s) that is locked at all times, except for during times of active ingress and egress. Outdoor lighting shall be used for the purpose of illumination only. Low intensity outdoor lighting may be permitted in the canopy area, used for photosynthesis, mixed-light processes, other purposes intended to manipulate cannabis plant growth during the months of November through February for two hours before sunrise and two hours after sunset. All other temporary lighting, whether powered by a portable generator or permitted electrical service, is prohibited.

C. Odor control. A permittee shall comply with the odor control plan that is submitted during the application process and approved by the city manager. Commercial cannabis activity premises shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the building(s) that is distinctive to its operation is not detected outside the premises, anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the commercial cannabis activity. As such, applicants must install and maintain the following equipment or any other equipment which the city manager or designee determines has the same or better effectiveness:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or

2. An air system that creates negative air pressure between the cannabis facility's interior and exterior so that the odors generated inside the cannabis facility are not detectable outside the cannabis facility.

3. Should compliance with the odor control plan fail to properly control odor, the city manager may impose additional or modified plan restrictions.

D. 'Track and trace'. Commercial cannabis activity businesses shall have an electronic 'track and trace' system that produces historical transactional data for review by the city manager for auditing purposes.

E. Records. A commercial cannabis activity business shall maintain the following records in printed format for at least three years on the premises and shall produce them to the city within twenty-four (24) hours after receipt of the city's request:

1. The name, address, and telephone numbers of the owner and landlord of the property.

2. The name, date of birth, address, and telephone number of each manager and staff of the commercial cannabis activity business; the date each was hired; and the nature of each manager's and staff's participation in the business.

3. A written accounting of all income and expenditures of the commercial cannabis activity business, including, but not limited to, cash and in-kind transactions.

4. A copy of the commercial cannabis activity business' commercial general liability insurance policy and all other insurance policies related to the operation of the business.

5. A copy of the commercial cannabis activity business' most recent year's financial statement and tax return.

6. An inventory record documenting the dates and amounts of cannabis received at the premises, the daily amounts of cannabis on the premises, and the daily amounts of cannabis transported from the premises.

A commercial cannabis activity business shall report any loss, damage, or destruction of these records to the city manager within twenty-four (24) hours of the loss, damage, or destruction.

F. Security. A permittee shall comply with the security plan that is submitted during the application process as approved by the city manager. A permittee shall report to the Coachella Police Department all criminal activity occurring on the premises. Should compliance with the security plan fail to properly secure the commercial cannabis activity premises, the city manager may impose additional or modified plan restrictions.

G. Retail sales prohibited. No person shall conduct any retail sales of any good or services on or from a permitted commercial cannabis activity premises that is regulated under this chapter.

H. Cannabis consumption prohibited. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within twenty (20) feet of, a commercial cannabis activity premises regulated under this chapter.

I. Alcohol prohibited. No person shall possess, consume, or store any alcoholic beverage on any commercial cannabis activity premises.

J. Juveniles prohibited. No one under the age of eighteen (18) shall be on the commercial cannabis activity premises or operate a commercial cannabis activity in any capacity, including, but not limited to, as a manager, staff, employee, contractor, or volunteer.

(Ord. No. 1109, § 2, 7-12-17; Ord. No. 1162, § 8, 5-27-20; Ord. No. 1171, § 4, 8-25-21; Ord. No. 1188, § 4, 12-8-21)

A building that houses a commercial cannabis activity shall comply with the following requirements:

A. Entrances. All entrances into the buildings on the premises shall be locked at all times with entry controlled by the permittee's managers and staff. Codes for entry shall be provided to law enforcement and fire protection personnel to allow access to the buildings 24-hours a day, seven days a week.

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

C. Activity area. All cultivation, manufacturing, or testing areas in any building on the premises shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the permittee.

(Ord. No. 1109, § 2, 7-12-17)

Editor's note— Ord. No. 1226, § 6, adopted Oct. 22, 2025, repealed § 5.68.150, which pertained to interested parties and derived from Ord. No. 1109, § 2, adopted July 12, 2017.

A. No permittee shall open their commercial cannabis activity premises to the public.

B. No permittee shall allow anyone on the premises, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis distributors.

C. A manager must be on the premises at all times that any other person, except for security guards, is on the premises.

(Ord. No. 1109, § 2, 7-12-17; Ord. No. 1162, § 9, 5-27-20)

A commercial cannabis activity permittee shall provide the city manager with the current name and primary and secondary telephone numbers of at least one 24-hour on-call manager to address and resolve complaints and to respond to operating problems or concerns associated with the commercial cannabis activity.

(Ord. No. 1109, § 2, 7-12-17)

Each cannabis facility shall provide the city manager with the name, phone number, facsimile number, and email address of an on-site community relations or staff person or other representative to whom the city can provide notice if there are operating problems associated with the cannabis facility or refer members of the public who may have any concerns or complaints regarding the operation of the cannabis facility. Each cannabis facility shall also provide the above information to its business neighbors located within one hundred (100) feet of the cannabis facility as measured in a straight line without regard to intervening structures, between the front doors of each establishment.

(Ord. No. 1109, § 2, 7-12-17)

The permittee shall display its current valid permit issued in accordance with this chapter inside the lobby or waiting area of the main entrance to the premises. The permit shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the premises.

(Ord. No. 1109, § 2, 7-12-17)

A. Recordings made by security cameras at any commercial cannabis activity business shall be made immediately available to the city manager upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials.

B. The city manager shall have the right to enter all cannabis facilities from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter.

C. Operation of the cannabis facility in non-compliance with any conditions of approval or the provisions of this chapter shall constitute a violation of the municipal code and shall be enforced pursuant to the provisions of this code.

D. The city manager may summarily suspend or revoke a cannabis regulatory permit if any of the following, singularly or in combination, occur:

1. The city manager or designee determines that the commercial cannabis activity business has failed to comply with this chapter or any condition of approval or a circumstance or situation has been created that would have permitted the city manager or designee to deny the permit under Section 5.68.070;

2. Operations cease for more than thirty (30) calendar days, including during change of ownership proceedings;

3. Ownership is changed without securing a regulatory permit;

4. The cannabis facility fails to maintain two hundred forty (240) continuous hours of security recordings; or

5. The cannabis facility fails to allow inspection of the records, security recordings, the activity logs, or the premises by authorized city officials.

(Ord. No. 1109, § 2, 7-12-17)

Regulatory permits issued pursuant to this chapter are not transferable.

(Ord. No. 1109, § 2, 7-12-17)

To the fullest extent permitted by law, the city shall not assume any liability whatsoever, with respect to approving any regulatory permit pursuant to this chapter or the operation of any commercial cannabis activity approved pursuant to this chapter. As a condition of approval a regulatory permit as provided in this chapter, the applicant or its legal representative shall:

A. Execute an agreement indemnifying the city from any claims, damages, etc., associated with the operation of the cannabis facility;

B. Maintain insurance in the amounts and of the types that are acceptable to the city manager or designee;

C. Name the city as an additionally insured on all city required insurance policies;

D. Agree to defend, at its sole expense, any action against the city, its agents, officers, and employees related to the approval of a regulatory permit; and

E. Agree to reimburse the city for any court costs and attorney fees that the city may be required to pay as a result of any legal challenge related to the city's approval of a regulatory permit. The city may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder.

(Ord. No. 1109, § 2, 7-12-17)

All commercial cannabis activity shall comply fully with all of the applicable restrictions and mandates set forth in state law, including without limitation the Compassionate Use Act of 1996, the Medical Marijuana Program Act, and the Medicinal and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA").

(Ord. No. 1109, § 2, 7-12-17; Ord. No. 1162, § 10, 5-27-20)

A. Any violation of any of the provisions of this chapter is unlawful and a public nuisance.

B. Any violation of any of the provisions of this chapter shall constitute a misdemeanor violation and upon conviction thereof any violation shall be punishable by a fine not to exceed one thousand dollars ($1,000.00), or by imprisonment in the county jail for a period of not more than six months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense.

C. In lieu of issuing a misdemeanor citation, the city may issue an administrative citation, and/or assess an administrative fine of up to one thousand dollars ($1,000.00) for each violation of this chapter.

D. A separate offense occurs for each day any violation of this chapter is continued and/or maintained.

E. The remedies provided herein are not to be construed as exclusive remedies, and in the event of violation, the city may pursue any proceedings or remedies otherwise provided by law.

(Ord. No. 1109, § 2, 7-12-17)