Sections:

Sec. 4-48-010. Purpose. Sec. 4-48-020. Applicability. Sec. 4-48-030. Definitions. Sec. 4-48-040. General conditions. Sec. 4-48-050. City council review. Sec. 4-48-060. Permitted cannabis uses.

The purpose of this Chapter is to impose zoning restrictions on commercial cannabis uses in the City of Gustine as authorized and/or licensed by the State of California pursuant to state law. This Chapter is not intended to, and does not, give any person or entity independent legal authority to operate a cannabis business. Rather, it is intended to impose reasonable land use standards and restrictions regarding cannabis uses that may operate in the City pursuant to state law. This Chapter is in addition to any other business license and regulatory requirements imposed on cannabis businesses by this Code, the Gustine Municipal Code or other applicable law.

(Ord. No. 499, § 2(Exh. A), 9-17-19)

No part of this Chapter shall be deemed to conflict with federal law, as contained in the Controlled Substances Act, nor to otherwise permit any activity that is prohibited under that Act or any other local, state, or federal law, statute, rule, or regulation. Nothing in this Chapter shall be construed to allow any conduct or activity relating to cultivation, manufacturing, distribution, dispensing, sale or consumption of cannabis that is otherwise illegal under local or state law. No provision of this Chapter shall be deemed a defense or immunity to any action brought against any person by the Merced County District Attorney's office, the Attorney General of the State of California, or the United States of America.

(Ord. No. 499, § 2(Exh. A), 9-17-19)

The following words and phrases shall have the following meanings when used in this section:

"Cannabis" shall have the same meaning as "cannabis" as defined in California Business and Professions Code § 26001, as may be amended. Accordingly, "cannabis" shall also mean and include products derived, manufactured, mixed or prepared from cannabis. For purposes of this Chapter, "cannabis" means and includes both cannabis for medical purposes and non-medical, "adult-use" purposes, unless otherwise specified.

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ARTICLE 4 STANDARDS FOR SPECIFIC LAND USES CHAPTER 4-48. COMMERCIAL CANNABIS USES Sec. 4-48-030. Definitions.

"Cannabis business" means a business activity including, but not limited to, planting, cultivation, harvesting, transporting, manufacturing, compounding, converting, processing, preparing, storing, packaging, distributing, researching, testing, providing, or selling wholesale and/or retail sales of cannabis. A cannabis business includes any facility, building structure, or location, expressly including dispensaries and deliveries, and shall expressly include all those commercial cannabis activities authorized and/or licensed by state law.

"Cannabis cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis intended for commercial use or sale. For purposes of this Chapter, cannabis cultivation does not mean or include personal cultivation of cannabis regulated by Article 6, Chapter 7, Title 7 of the Gustine Municipal Code.

"Cannabis distribution" means the procurement, storage, sale, and transport of cannabis or cannabis products between state-licensed cannabis businesses, including warehouses and similar structures, as authorized by state law. However, "cannabis distribution" shall not include or authorize retail sales to the general public.

"Cannabis manufacturing" means the compounding, blending, extracting, infusing, or otherwise making or preparing a cannabis product. For purposes of this Chapter, cannabis manufacturing expressly includes the production, preparation, propagation, processing, or compounding of cannabis or cannabis products directly or indirectly, including through extraction and/or chemical synthesis methods, at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.

"Cannabis microbusiness" means a cannabis business licensed by the state to engage in at least three of the following cannabis uses within a single licensed premises: cannabis cultivation on an area less than 10,000 square feet; cannabis distribution; cannabis manufacturing utilizing only nonvolatile solvents or no solvents; and cannabis retailer.

"Cannabis retailer" means a premises permanently located in the City and licensed by the State of California pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act, California Business and Professions Code § 26000 et seq., as may be amended, where cannabis is provided for retail sale to customers. "Cannabis retailer" means and includes both an establishment open to the general public via a storefront or other open store location providing sales of cannabis, as well as establishments that perform sales in part or exclusively by delivery.

(Ord. No. 499, § 2(Exh. A), 9-17-19)

• A. No cannabis business may operate in any zoning district in the City of Gustine except as expressly permitted by and in conformance with the provisions of this Chapter.

• B. Any cannabis business permitted by this Chapter must, prior to operating a cannabis business, obtain and maintain at all times a valid license issued by the State of California, as may be applicable, and any other local or regulatory licenses required by this Code or the Gustine Municipal Code. Any cannabis business operating without a valid license from the State of California shall cease operations until a valid state license is obtained, in addition to any other state and local requirements that may apply.

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ARTICLE 4 STANDARDS FOR SPECIFIC LAND USES CHAPTER 4-48. COMMERCIAL CANNABIS USES Sec. 4-48-060. Permitted cannabis uses.

• C. Pursuant to California Business and Professions code § 26054(b), as may be amended, no cannabis business may be located within a 600-foot radius of a school providing K-12 instruction, a day care center or a youth center in existence at the time the license is issued.

• (Ord. No. 499, § 2(Exh. A), 9-17-19)

• A. The Planning Commission shall review all Use Permit applications submitted pursuant to this Chapter and provide a recommendation regarding approval to City Council.

• B. The City Council shall serve as the final review authority for all Use Permit applications submitted pursuant to this Chapter, and is authorized to approve or deny issuance of all cannabis Use Permits.

• C. In evaluating whether to recommend approval or approve Use Permit applications, the Planning Commission and City Council shall consider the following factors, in addition to all other findings required by Section 4-52-050 F.:

  1. Whether the use would enhance the economic viability of the area in which it is proposed to be located, including adjacent and surrounding properties;

  2. Whether the applicant has adequately addressed potential community benefits of the use to offset potential adverse impacts;

  3. The extent of support or opposition to the proposed use and location from members of the community;

  4. Whether the establishment of the use will result in an overconcentration of cannabis businesses in the area; and

  5. Whether there is a history of police or crime-related problems in the area of the proposed location which may be exacerbated by establishment of the proposed cannabis use.

• (Ord. No. 499, § 2(Exh. A), 9-17-19)

• A. The following types of cannabis businesses may be permitted, subject to the granting of a Use Permit as provided for in Section 4-52-050 and this Chapter, in the C-1 (Downtown Commercial) zoning district:

  1. Cannabis microbusinesses;

  2. Cannabis cultivation;

  3. Cannabis manufacturing;

  4. Cannabis distribution; and

  5. Cannabis retailers.

• B. Except as specified in this section, cannabis businesses shall be prohibited in all other zoning districts. Cannabis businesses not expressly defined and permitted by this chapter are prohibited.

• C. Notwithstanding the definitions set forth in Section 4-48-030, cannabis businesses permitted by this Section are subject to the following restrictions and standards:

1. All cannabis cultivation shall be conducted indoors. Outdoor cultivation is prohibited.

(Ord. No. 499, § 2(Exh. A), 9-17-19)

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