Contra Costa County Municipal Code Art. 88-28.4 Permit Requirements

(a) Permit Required. Except as provided in section 88-28.404, a land use permit is required for all commercial cannabis activities in the unincorporated areas of the County.

(b) Permit Term. A permit issued under this chapter shall have an initial term of five years. A permit may be renewed for additional five-year terms, one additional term at a time, as set forth in Section 88-28.424.

(c) Limits on storefront retailer, commercial cultivation, and cannabis manufacturing permits.

(1) No more than four permits for storefront retailers under Section 88-28.412 will be in effect at any one time.

(2) No more than ten permits for commercial cultivation under Section 88-28.414 will be in effect at any one time.

(3) No more than two permits for cannabis manufacturing within an agricultural zoning district under Section 88-28.416 will be in effect at any one time. The permit limit in this Section 88-28.402(c)(3) does not apply to either of the following:

(A) Cannabis manufacturing within a zoning district that is not an agricultural zoning district.

(B) A vertically-integrated business in an agricultural zoning district that includes both cannabis cultivation and cannabis manufacturing.

(4) A permit issued for a vertically-integrated business that authorizes both (A) a storefront retailer under Section 88-28.412, and (B) commercial cultivation under Section 88-38.414, does not count toward the commercial cultivation ten-permit limit in Subsection (c)(2). Except as specifically provided in the preceding sentence or elsewhere in this Section 88-28.402(c), a permit issued for a vertically-integrated business counts toward the permit limit for each commercial cannabis activity involved in the vertically-integrated business.

(Ord. No. 2018-27, § 3, 9-25-18; Ord. No. 2018-18, § 3, 6-26-18)

(a) Solicitation. An application for a commercial cannabis activity that is subject to a permit limit in Section 88-28.402(c) may be submitted only after the conclusion of a solicitation process conducted in accordance with this section. In advance of a solicitation, the Board of Supervisors will approve the solicitation and adopt forms and procedures necessary to implement the solicitation process, including the form of a request for proposals. The solicitation process approved by the Board of Supervisors will be administered by the Director. An application to renew a permit issued under this chapter is not subject to the requirements of this section.

(b) Notification Lists. Notification lists may be established to maintain lists of persons that have expressed an interest in obtaining a permit for a commercial cannabis activity that is subject to a permit limit in Section 88-28.402(c). Notification lists are to assist the County in providing notice of solicitations to interested persons. A person's inclusion on a notification list confers no priority or advantage with respect to any solicitation under this section. A person's inclusion on a notification list does not guarantee the person will receive notice about any solicitation.

(c) Issuance of Request for Proposals. After the Board of Supervisors approves a solicitation for a commercial cannabis activity that is subject to a permit limit in Section 88-28.402(c), the Director will issue a request for proposals on a form approved by the Board. Persons on an applicable notification list may be notified of the availability of the request for proposals. Notice of the availability of the request for proposals also may be provided to other persons, or in any other manner, as determined by the Board of Supervisors.

(d) Proposal Submission Deadline. All proposals must be submitted by the proposal submission deadline specified in the request for proposals.

(e) Evaluation of Proposals. All proposals timely submitted in response to a request for proposals will be evaluated by a panel using scoring criteria specified in the request for proposals. All proposals will be ranked according to the scores determined by the panel.

(f) Invitation to Apply for a Permit. Following the evaluation of proposals, the persons who submit the highest scoring proposals will be provided written notice that they may apply for a permit under this chapter. The notice will specify the application deadline. The number of persons receiving notice will not exceed the number of permits available for the applicable commercial cannabis activity. If the Department does not receive a timely submitted application from a person invited to apply for a permit, the person who submitted the proposal with the next highest score may be invited to apply for a permit. If a request for proposals specifies a minimum score needed to be eligible to be invited to apply for a permit, persons who receive scores below the minimum score will not be invited to apply for a permit.

(Ord. No. 2018-18, § 3, 6-26-18)

(a) Personal Cultivation.

(1) A permit under this chapter is not required for a person twenty-one years of age or older to cultivate six or fewer cannabis plants at a private residence, or inside a fully-enclosed and secured accessory structure to a private residence located on the grounds of the private residence, if all of the following conditions are met.

(A) The private residence or accessory structure, and all lighting, plumbing, and electrical components used for cultivation, must comply with all applicable zoning, building, electrical, and plumbing codes and permitting requirements.

(B) All living cannabis plants cultivated indoors, and all cannabis in excess of twenty-eight and one-half grams produced by cannabis plants cultivated on the grounds of a private residence, must be kept in a locked room and may not be visible from an adjacent property, right-of-way, street, sidewalk, or other place accessible to the public.

(C) The private residence must be lawfully occupied by the person twenty-one years of age or older who cultivates the cannabis plants within the private residence or within the accessory structure. If the private residence is not owner-occupied, written permission from the owner of the private residence must be obtained before cannabis plants may be cultivated.

(D) Notwithstanding anything to the contrary, up to three of the cannabis plants cultivated under this subsection (a)(1) may be cultivated outdoors on the grounds of a private residence, if all of the following conditions are met.

(i) The edge of each cannabis plant canopy must be at least ten feet away from property lines of the lot on which the private residence is located.

(ii) No cannabis plant may exceed a height of five feet above ground level.

(iii) No cannabis plant may be visible from a right-of-way, street, sidewalk, or other place accessible to the public.

(iv) All cannabis plants cultivated outdoors must be enclosed by fencing, and all gates and other points of entry to the outdoor growing area must be locked at all times.

(2) Personal cultivation by qualified patients and primary caregivers is subject to the restrictions set forth in Business and Professions Code section 26033 and Health and Safety Code section 11362.77, and the requirements of subsection (a)(1).

(b) Deliveries originating outside of the unincorporated County.

(1) A licensed and permitted commercial cannabis delivery business located outside of the County may travel on public roads within the County for the purpose of delivering cannabis or cannabis products to persons in jurisdictions other than the County, where the delivery of cannabis and cannabis products is authorized.

(2) A licensed and permitted commercial cannabis delivery business located outside of the County may deliver cannabis or cannabis products to persons in unincorporated Contra Costa County, as long as all of the following requirements are met.

(A) The business possesses both (i) a current County business license, and (ii) a current County health permit issued under Chapter 413-4 of this code.

(B) The business shall ensure that the employees, upon request, provide the following documentation to law enforcement officers and to employees of State and local agencies enforcing this chapter and the requirements of State laws and regulations:

(i) A copy of the business' current permits, licenses, and entitlements authorizing the business and deliveries.

(ii) The employee's valid government-issued identification.

(iii) A copy of each delivery request.

(iv) Chain of custody records for all cannabis or cannabis products being delivered.

(C) All vehicles used to deliver cannabis and cannabis products must be owned by the business. The business shall ensure that its drivers do not deliver cannabis or cannabis products on the business' behalf using any vehicles other than vehicles provided by the business.

(D) All drivers who deliver cannabis and cannabis products on behalf of the business must be employed by the business. The business may not utilize independent contractors to deliver cannabis or cannabis products. The business shall ensure that each of its drivers possesses a valid State driver's license.

(E) The business shall ensure that its employees who deliver cannabis or cannabis products require customers to show State-issued identification at the time a delivery is made. The business shall ensure that its employees deliver cannabis and cannabis products only:

(i) To persons who are twenty-one years of age or older, or

(ii) To persons who are eighteen years of age or older and either possess a physician's recommendation, or are primary caregivers.

(Ord. No. 2018-27, § 4, 9-25-18; Ord. No. 2018-18, § 3, 6-26-18)

(a) Requirements for All Applications. Each person applying for a permit authorizing commercial cannabis activities under this chapter shall include the following information in the permit application:

(1) The type of State license that the applicant will obtain.

(2) Proof of ownership of the property where the business will be located. If the applicant is not the owner of the property where the business will be located, a notarized, written authorization from each owner of the property that is the subject of the application consenting to the application and the operation of the proposed commercial cannabis activity on the subject property. In the authorization, each owner shall expressly agree that it will evict a person who violates the requirements of this chapter or a permit issued under this chapter.

(3) The address and assessor's parcel number of the property or properties where the business will be located.

(4) The name and address of each person or entity responsible for the operation of the commercial cannabis activity, which includes but may not be limited to each manager, each corporate officer, each individual with an ownership interest, each member of a board of directors, each general or limited partner, and each member of a decision-making body for the commercial cannabis activity.

(5) Site plans, floor plans, conceptual improvement plans, and a general description of the nature, size, and type of commercial cannabis activities being proposed.

(6) An operating plan that includes all of the following information:

(A) A standard operating procedures manual detailing how operations will comply with State and local regulations; how safety and quality of products will be ensured; record keeping procedures for financing, testing, and other items records required to be kept by State law; and product recall procedures.

(B) Proposed hours of operation.

(C) Waste disposal information.

(D) Medical recommendation verification procedures, if applicable, and youth access restriction procedures.

(E) A record keeping policy that ensures records will be kept in accordance with State laws and regulations.

(F) A description of track and trace measures that will be implemented.

(G) Sustainability measures that will be utilized at the business, including water efficiency measures, energy generation and efficiency measures, high efficiency mechanical systems, and alternative fuel transportation methods.

(H) An odor control plan that describes how the business will prevent odors from impacting neighboring parcels or creating a public nuisance.

(I) Size, height, colors, and design of any proposed signage at the business.

(J) A parking plan that establishes how all off-street parking requirements will be met.

(K) A security plan that establishes how all security requirements in State laws and regulations will be satisfied.

(L) Details regarding how cannabis and cannabis products will be received, stored, handled, transported, and secured to prevent theft and trespass.

(7) Information describing how any conditions specified in a request for proposals will be satisfied.

(b) Retailer Applications. In addition to the information required in subsection (a), an application for a retailer permit must include in its operating plan information describing how the requirements in Section 88-28.412 will be satisfied.

(c) Commercial Cultivation Applications. In addition to the information required in subsection (a), an application for a commercial cultivation permit must include in its operating plan information describing how the requirements in Section 88-28.414 will be satisfied, and the following additional information:

(1) A floor plan or site plan identifying the location, dimensions, and boundaries of all proposed canopy areas, taking into account space needed for ongoing care of plants, and a description of the proposed method of physically delineating those boundaries at the site.

(2) The application must include proof of water service availability from a retail water supplier.

(d) Cannabis Manufacturing Applications. In addition to the information required in subsection (a), an application for a cannabis manufacturing permit must include in its operating plan information describing how the requirements in Section 88-28.416 will be satisfied, and the following additional information:

(1) Information on products used in the manufacturing process, including the liquids, solvents, and agents, used in the manufacturing process.

(2) Identification of each solvent used in the manufacturing process, the quantities of solvents used, and the maximum quantities of solvents that will be stored onsite.

(3) Protocol for storing products used in the manufacturing process and a hazard response plan.

(4) Manufacturing quality control measures.

(e) Cannabis Testing Laboratory Applications. In addition to the information required in subsection (a), an application for a testing laboratory permit must include in its operating plan information describing how the requirements in Section 88-28.418 will be satisfied, and the following additional information:

(1) Details about how cannabis will be received, secured, tested, and destroyed upon completion of testing, all in accordance with State laws and regulations.

(2) A copy of a certificate of ISO/IEC 17025 accreditation from an accreditation body. If a certificate is not available at the time of application or before a permit is issued, providing a copy of the certificate to the Department will be required as a condition of operating the testing laboratory.

(3) Procedures for record keeping, including chain of custody control.

(f) Cannabis Distribution Applications. In addition to the information required in subsection (a), an application for a cannabis distribution permit must include in its operating plan information describing how the requirements in Section 88-28.420 will be satisfied, and the following additional information:

(1) The location and physical layout of parking, loading, and storage areas.

(2) A cannabis storage and handling plan that ensures quality control.

(g) Vertically-Integrated Businesses. In addition to the information required in subsection (a), an application for a vertically-integrated business permit must include all information this section requires for each type of commercial cannabis activity that will be included in the vertically-integrated business.

(Ord. No. 2018-18, § 3, 6-26-18)

The standards in this section apply to all commercial cannabis activities.

(a) Health Permit and State License Required. No business may operate under a permit issued under this chapter unless and until the permittee possesses both (1) a State license authorizing the same commercial cannabis activities that are authorized under the permit, and (2) a commercial cannabis health permit issued under Chapter 413-4. Before a business begins operating, a permittee shall provide the Department (1) a copy of the permittee's State license and a copy of the State license application, and (2) a copy of the permittee's County health permit. A permittee shall provide the Department a copy of each renewed license and renewal application within thirty days after a State license is renewed. A permittee shall provide the Department a copy of each renewed County health permit within thirty days after the permit is renewed. All requirements of the permittee's State license shall be deemed to be incorporated as requirements of the permit issued under this chapter.

(b) Location Requirements.

(1) Notwithstanding anything to the contrary in this chapter or elsewhere in this code, no commercial cannabis activities may be located within a cannabis exclusion (-CE) combining district.

(2) All commercial cannabis activities shall be located within the urban limit line established pursuant to Chapter 82-1, except as follows:

(A) A business engaged in outdoor commercial cultivation, or a vertically-integrated business that includes outdoor cultivation, must be located outside of, and at least one mile from, the urban limit line.

(B) A business engaged in indoor commercial cultivation, or a vertically-integrated business that includes indoor commercial cultivation, may be located within an agricultural zoning district outside the urban limit line.

(C) A business engaged in manufacturing, or a vertically-integrated business that includes manufacturing, may be located outside the urban limit line.

(D) No vertically-integrated business that includes a retailer may be located outside of the urban limit line.

(3) A business shall meet the following buffer requirements:

(A) A business may not be located within one thousand feet of any of the following located in the unincorporated County or in a city: a school providing instruction in kindergarten or any grades one through twelve; a day care center; or a youth center; or a drug treatment center.

(B) A storefront retailer may not be located within five hundred feet of any other storefront retailer located in the unincorporated County or in a city.

All distances specified in this section shall be the horizontal distance measured in a straight line from nearest property line to nearest property line.

(c) Vertically-Integrated Businesses. A vertically-integrated business must satisfy all requirements that apply to each commercial cannabis activity in which the business is engaged under this chapter. A permit for a vertically-integrated business will include all permit requirements that apply to each category of commercial cannabis activity in which the business is engaged.

(d) Prohibited Activities. A business that is permitted under this chapter may not sell tobacco or alcoholic beverages.

(e) Age Restrictions. No persons under the age of eighteen may be present on the premises of any business that has a State M-license. No persons under the age of twenty-one may be present on the premises of any business that has a State A-license, but does not have a State M-license. No person under the age of twenty-one may be present on the premises of any testing business.

(f) Inspections. The County shall have the same rights of access that the bureau has under Title 16 of the California Code of Regulations, section 5800. A permittee shall allow access to its business and records if requested by the County, its officers, employees, or agents. A permittee, upon request, shall submit to an inspection by the County for the purpose of verifying the permittee is operating its business in compliance with the requirements of this chapter, the terms of a permit issued under this chapter, the State license, and all applicable requirements of this code and State laws and regulations. A permittee, upon request, shall provide the County with copies of records that the County requires to verify the permitee's compliance with this chapter and other applicable requirements of this code and State laws and regulations. A permittee must pay the applicable inspection fees for each County inspection.

(g) Records. A permittee shall maintain all records in accordance with Business and Professions Code sections 26160 through 26162.5. The County shall have the same powers as licensing authorities under Business and Professions Code sections 26160 through 26162.5.

(h) Compliance Review. The Department may perform a compliance review at any time during the term of a permit to determine whether a permittee is complying with the permit's terms and conditions, the requirements of this chapter, and all applicable laws and regulations. The Department will perform a compliance review at least once in each of the first, second, and fourth year during the initial five-year term of a permit issued under this chapter. If a permit is renewed under this chapter for one or more additional five year terms, the Department will perform a compliance review after the first two and one-half years of each renewal term. A permittee shall cooperate with the Department to complete the compliance review and must pay all applicable compliance review fees.

(i) CEQA Compliance. The issuance of a permit under this chapter is a discretionary activity that is subject to environmental review under the California Environmental Quality Act (CEQA). A permit will not be issued under this chapter unless and until the County has completed all applicable CEQA environmental review. An applicant shall pay all costs that the County incurs to satisfy the requirements of CEQA. A permit issued under this chapter shall include appropriate measures to mitigate the impacts of commercial cannabis activities, as determined by the County during CEQA environmental review.

(j) Unique Identification Protocol. A permittee must comply with all applicable track-and-trace systems developed by the State for reporting the movement of cannabis and cannabis products throughout the distribution chain.

(k) Indemnity. As a condition of issuance of a permit under this chapter, an applicant shall be required to enter into an indemnification agreement with the County that requires the applicant to indemnify, defend (with counsel reasonably acceptable to the County), and hold harmless the County, its boards, commissions, officers, employees, and agents from any and all claims, costs, losses, actions, fees, liabilities, expenses, and damages arising from or related to the applicant's application for a land use permit, the County's discretionary approvals for the commercial cannabis activities, the County's actions pursuant to CEQA and planning and zoning laws, and the operation of the commercial cannabis activities, regardless of when those liabilities accrue.

(l) Notifications. A permittee shall provide written notice to the Department within five days after receiving any of the following from the bureau: a notice to comply, a citation, an interim order to suspend any license or impose any restrictions upon any permittee, an order revoking a license, or any other writing informing the permittee of any disciplinary action proposed to be taken or actually taken against the permittee.

(Ord. No. 2018-18, § 3, 6-26-18)

The standards in this section and the standards in Section 88-28.410 apply to retailers.

(a) Location Requirements. A retailer may be located only in the following zoning districts located outside of a cannabis exclusion (-CE) combining district: planned unit development (P-1) when retailers are permitted by the development plan; retail-business (R-B); general commercial (C); controlled manufacturing (C-M); light industrial (L-I); and heavy industrial (H-I). No retailer may be located outside of the urban limit line.

(b) Hours of Operation. A delivery retailer may not be open to the public. A storefront retailer's hours of operation may not begin earlier than 8:00 a.m., and they may not end later than 9:00 p.m.

(c) Security. A retailer shall implement and maintain the security measures required by Business and Professions Code section 26070(j). At the same time that a retailer provides notice to a licensing authority and law enforcement under Business and Professions Code section 26070(k), the retailer shall provide that same notice to the Department.

(d) Deliveries.

(1) A storefront retailer may deliver cannabis or cannabis products. An application for a storefront retailer permit must indicate whether the storefront retailer will provide deliveries in accordance with the requirements of this subsection (d). Deliveries of cannabis may only be provided by retailers that operate under permits issued under this chapter. A delivery retailer shall conduct sales exclusively by delivery and may not conduct any retail sales at the premises of the storefront.

(2) If a retailer provides deliveries, the retailer shall ensure that its employees who deliver cannabis or cannabis products possess the following documentation while making deliveries, and the retailer shall ensure that the employees, upon request, provide the following documentation to law enforcement officers and to employees of State and local agencies enforcing this chapter and the requirements of State laws and regulations:

(A) A copy of the retailer's current permits, licenses, and entitlements authorizing the retailer and deliveries.

(B) The employee's valid government-issued identification.

(C) A copy of each delivery request.

(D) Chain of custody records for all cannabis or cannabis products being delivered.

(3) All vehicles used to deliver cannabis and cannabis products must be owned by the retailer. A retailer shall ensure that its drivers do not deliver cannabis or cannabis products on the retailer's behalf using any vehicles other than vehicles provided by the retailer.

(4) All drivers who deliver cannabis and cannabis products on behalf of the retailer must be employed by the retailer. A retailer may not utilize independent contractors to deliver cannabis or cannabis products. A retailer shall ensure that each of its drivers possesses a valid State driver's license.

(5) A retailer that provides deliveries shall ensure that its employees who deliver cannabis or cannabis products require customers to show State-issued identification at the time a delivery is made. A retailer shall ensure that its employees deliver cannabis and cannabis products only:

(A) To persons who are twenty-one years of age or older, or

(B) To persons who are eighteen years of age or older and either possess a physician's recommendation, or are primary caregivers.

(e) Products. A retailer shall ensure that all cannabis and cannabis products at the premises of the retailer are cultivated, manufactured, transported, distributed, and tested by licensed and permitted facilities that maintain operations in full conformance with all applicable state and local laws, regulations, and ordinances, including this chapter.

(Ord. No. 2018-18, § 3, 6-26-18)

The standards in this section and the standards in Section 88-28.410 apply to commercial cultivation businesses.

(a) Location Requirements. Commercial cultivation may be located only in the following zoning districts outside of a cannabis exclusion (-CE) combining district: general agricultural (A-2); heavy agricultural (A-3); A-20 exclusive agricultural; A-40 exclusive agricultural; A-80 exclusive agricultural; planned unit (P-1) when commercial cultivation is permitted by the development plan; controlled manufacturing (C-M); light industrial (L-I); and heavy industrial (H-I). A business engaged in commercial cultivation may cultivate cannabis outdoors only if the business is located in a general agricultural (A-2), heavy agricultural (A-3), A-20 exclusive agricultural, A-40 exclusive agricultural, or A-80 exclusive agricultural zoning district located outside of a cannabis exclusion (-CE) combining district.

(b) Indoor Commercial Cultivation. All indoor commercial cultivation must be conducted within a building, as defined in Section 82-4.210, or within a greenhouse. No indoor commercial cultivation may be conducted indoors within a residential building.

(c) Security. A commercial cultivation business must include security measures to both deter and prevent unauthorized entrance into areas of the business used for cultivation, including the following measures.

(1) Indoor commercial cultivation areas must be locked, and no cannabis plants may be visible from outside of the indoor commercial cultivation areas. Outdoor cultivation areas and greenhouses must be fenced and all gates must be locked. Fencing surrounding outdoor cultivation areas and greenhouses must be designed and maintained to ensure those areas and greenhouses are not visible from adjacent lots, private roads, and public rights-of-way.

(2) Access to the premises must be limited to authorized personnel.

(3) The premises must include an alarm system and security cameras to monitor all cultivation areas and all entryways. The alarm system and security cameras must be monitored twenty-four-hours per day by a licensed alarm company operator.

(d) Water.

(1) To the maximum extent feasible, water conservation measures, water recapture systems, drip irrigation, raised beds, or grey water systems must be incorporated in cannabis cultivation operations in order to minimize use of water.

(2) Except as specified in subsection (d)(3), water service for a commercial cultivation business must be provided by a retail water supplier.

(3) A commercial cultivation business may satisfy its water demand by pumping groundwater from a groundwater production well if all of the following criteria are met:

(A) The retail water supplier does not provide retail water service at all times during the year.

(B) Groundwater is used to satisfy water demand of the business only during those periods when the retail water supplier does not provide retail water service to the business.

(C) The use of groundwater by the business will not substantially deplete groundwater supplies, and will not substantially interfere with groundwater recharge, such that there would be a net deficit in aquifer volume or a lowering of the groundwater table level.

(D) The business uses groundwater in accordance with any applicable groundwater sustainability plan adopted by a groundwater sustainability agency within which the business is located.

(e) Energy Systems. An indoor commercial cultivation business shall satisfy its electricity demands by (1) providing onsite renewable energy generation, or (2) purchasing electricity that is generated entirely from renewable sources, or a combination of (1) and (2).

(f) Size Limits.

(1) Indoor Commercial Cultivation.

(A) The total canopy size for indoor commercial cultivation in other than agricultural zoning districts may not exceed the lesser of:

(i) Twenty-two thousand square feet, or

(ii) The maximum size authorized by the State license for the business.

(B) Indoor commercial cultivation in an agricultural zoning district may not be located in any building that is larger than ten thousand square feet of floor area.

(2) Outdoor Commercial Cultivation. The total canopy size for outdoor cultivation may not exceed the lesser of:

(A) Two acres, or

(B) The maximum size authorized by the State license for the business.

(g) Rural Infrastructure. A commercial cultivation business located outside the urban limit line shall include measures to avoid and minimize impacts on rural infrastructure, including, but not limited to, water, sewer, and transportation infrastructure.

(h) Distribution. A vertically-integrated business that includes both cultivation and distribution may transport its cultivated cannabis from its cultivation site to another permitted and licensed business, unless a permit under this chapter requires the permittee to use a licensed and permitted commercial cannabis distributor to transport its cultivated cannabis from its cultivation site to another business.

(Ord. No. 2018-18, § 3, 6-26-18)

The standards in this section and the standards in Section 88-28.410 apply to cannabis manufacturing businesses.

(a) Location. A cannabis manufacturing business may be located only within the following zoning districts located outside of a cannabis exclusion (-CE) combining district: planned unit development (P-1) when manufacturing cannabis or cannabis products is permitted by the development plan; general commercial (C); controlled manufacturing (C-M); light industrial (L-I); and heavy industrial (H-I); general agricultural (A-2); heavy agricultural (A-3); A-20 exclusive agricultural; A-40 exclusive agricultural; and A-80 exclusive agricultural.

(b) No Volatile Solvents. Cannabis manufacturing that will require a State "Type 7" license, or will use volatile solvents, is prohibited.

(c) Security. A cannabis manufacturing business shall implement and maintain sufficient security measures to both deter and prevent unauthorized entrance into areas containing cannabis or cannabis products, including an alarm system and security cameras that monitor all manufacturing areas and entryways and that are monitored twenty-four-hours per day by a licensed alarm company operator.

(d) Products. A cannabis manufacturing business shall ensure that all manufactured cannabis products are cultivated, transported, distributed, and tested by licensed and permitted facilities that maintain operations in full conformance with State laws and regulations and the applicable requirements of this chapter. A cannabis manufacturing business shall maintain adequate quality control measures to ensure cannabis and cannabis products manufactured at the site meet applicable requirements of State laws and regulations.

(e) Employee Training. A cannabis manufacturing business shall ensure that all employees of the business operating potentially hazardous equipment are trained on the proper use of equipment and on the proper hazard response protocols in the event of equipment failure.

(f) Rural Infrastructure. A cannabis manufacturing business located outside the urban limit line shall include measures to avoid and minimize impacts on rural infrastructure, including, but not limited to, water, sewer, and transportation infrastructure.

(g) Distribution. A vertically-integrated business that includes both manufacturing and distribution may transport its manufactured cannabis products from its manufacturing business to another permitted and licensed business, unless a permit issued under this chapter requires the permittee to use another licensed and permitted commercial cannabis distributor to transport its manufactured cannabis products from its manufacturing business to another permitted and licensed business.

(Ord. No. 2018-18, § 3, 6-26-18)

The standards in this section and the standards in Section 88-28.410 apply to testing laboratories.

(a) Location. A testing laboratory may be located only within the following zoning districts located outside of a cannabis exclusion (-CE) combining district: planned unit development (P-1) when cannabis testing laboratories are permitted by the development plan; general commercial (C); controlled manufacturing (C-M); light industrial (L-I); and heavy industrial (H-I).

(b) Restrictions. No person may simultaneously hold a cannabis testing laboratory permit and another permit issued under this chapter. A testing laboratory shall not employ any person who is simultaneously employed by another business engaged in commercial cannabis activities.

(c) Testing Procedures. A testing laboratory shall comply with all applicable State laws and regulations, including, but not limited to, the requirements of Title 16 of the California Code of Regulations, sections 5700 through 5739.

(Ord. No. 2018-18, § 3, 6-26-18)

The standards in this section and the standards in Section 88-28.410 apply to cannabis distribution businesses.

(a) Location. A cannabis distribution business may be located only within the following zoning districts located outside of a cannabis exclusion (-CE) combining district: planned unit development (P-1) when cannabis distribution is permitted by the development plan; general commercial (C); controlled manufacturing (C-M); light industrial (L-I); and heavy industrial (H-I).

(b) Security. A cannabis distribution business shall implement and maintain sufficient security measures to both deter and prevent unauthorized entrance into areas containing cannabis or cannabis products. These security measures include but are not limited to the following:

(1) Measures to prevent individuals from loitering on the premises of the distribution business.

(2) Designation of limited access areas accessible only to authorized distribution business personnel.

(3) Storage of cannabis and cannabis products in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, and loss.

(4) An alarm system and security cameras that monitor all storage areas and entryways and that are monitored twenty-four-hours per day by a licensed alarm company operator.

(c) Distribution. A cannabis distribution business may transport cannabis and cannabis products only between permitted and licensed businesses. A cannabis distribution business shall maintain copies of all shipping manifests during transportation, and shall require employees to make the manifest available for inspection upon request by the County, its officers, employees, contractors, and agents enforcing the requirements of this chapter, including law enforcement.

(d) Records. A cannabis distribution business shall maintain appropriate records of transactions and shipping manifests in accordance with State laws and regulations.

(e) Testing and Inspections Required. A commercial cannabis distributor shall inspect cannabis and cannabis products for quality assurance before the cannabis and cannabis products are distributed. Cannabis and cannabis products shall be packaged and labeled in accordance with the requirements of State laws and regulations.

(f) Vehicle Fleet. All vehicles used to distribute cannabis and cannabis products must be owned by the cannabis distributor. A cannabis distribution business shall ensure that its drivers do not distribute cannabis or cannabis products on the business's behalf using any vehicles other than the vehicles provided by the business.

(g) Drivers. All drivers that distribute cannabis and cannabis products on behalf of the cannabis distribution business must be employed by the business. A cannabis distribution business may not utilize independent contractors to distribute cannabis and cannabis products on behalf of the business. A cannabis distribution business shall ensure that each of its drivers possesses a valid State driver's license.

(Ord. No. 2018-18, § 3, 6-26-18)

(a) The County may include, in a permit issued under this chapter, reasonable conditions of approval related to the impacts of the commercial cannabis activity.

(b) All of the findings in Section 26-2.2008 and all of the following findings must be made before a permit is issued under this chapter:

(1) The application for commercial cannabis activities has been reviewed pursuant to all appropriate environmental laws and regulations, including the California Environmental Quality Act (CEQA).

[(2)]

[Reserved.]

(3) All mitigation measures identified by the County during CEQA environmental review are included as permit terms.

(4) A finding that the permit includes conditions to avoid adverse impacts to surrounding communities, neighborhoods, and sensitive receptors, including, but not limited to, libraries and parks.

(5) A finding that the permit includes conditions to fully mitigate the effects of a commercial cannabis activity that may pose a significant threat to the public or to neighboring uses from explosion, or from the release of harmful gases, liquids, or substances. If any of those threats cannot be fully mitigated, a permit under this chapter will not be issued for the commercial cannabis activity giving rise to that threat.

(6) The applicant has entered into an indemnity agreement that meets the requirements of Section 88-28.410(m).

(7) The applicant has paid all applicable fees and costs charged by the County and made all deposits required by the County, including, but not limited to, the application fee, all fees and costs required to complete CEQA environmental review, and all compliance review fees and deposits. The permit will require payment of all fees for compliance reviews and inspections of the business.

(Ord. No. 2018-18, § 3, 6-26-18)

(a) Eligibility for Renewal. A permit issued under this chapter may be renewed for one or more five-year terms, one term at a time, only if all of the following requirements are met as of the date the renewal request is made:

(1) The permittee is in compliance with all of the terms of the permit being renewed, and there are no grounds to suspend or revoke the permit under this chapter or under Article 26-2.20.

(2) The commercial cannabis activity authorized under the permit is authorized by this code as of the date the renewal request is made.

(3) The permittee maintains a current State license and current County health permit for each commercial cannabis activity authorized by the permit being renewed.

(b) Timing of Request. A permit renewal request must be submitted to the Department at least sixty days before the expiration of the permit's current term.

(c) Required Submittals. A permit renewal request must be made on forms provided by the Department. A permit renewal request must be submitted with all of the following:

(1) A copy of the permit being renewed.

(2) A copy of a current State license authorizing each commercial cannabis activity that is authorized under the permit being renewed.

(3) A copy of the original permit application.

(4) A copy of any environmental document that was certified for the permit.

(d) Approval of Renewal Request. A permit renewal request will be approved by the zoning administrator, after the zoning administrator determines all of the following:

(1) The permit renewal request and all required submittals were timely received.

(2) The permit is eligible for renewal under this Section 88-28.424.

(3) The applicant has paid all applicable fees required by the County, and has made all deposits required by the County, including, but not limited to, a renewal application fee and a condition compliance fee deposit.

(Ord. No. 2018-18, § 3, 6-26-18)

(a) A permit issued under this chapter is not transferable or assignable to another person.

(b) A permit issued under this chapter terminates if a change in ownership results in one or more new persons owning a total of twenty percent or more of the business.

(c) Any change to the information provided to the department in an application for a permit under this chapter must be reported to the department within fourteen days after the change occurs.

(Ord. No. 2020-05 § 2, 2-25-20)