Jurupa Valley Municipal Code Ch. 11.45 Exempted Commercial Cannabis Activity

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Editor's note— Ord. No. 2018-14, § 1, and Measure L, both adopted November 6, 2018, added a new Chapter 11.45, renumbering the former Chapter 11.45 as Chapter 11.70.

A. The purpose of this chapter is to give meaning and effect to state commercial cannabis laws, provide a limited exemption from enforcement of the City's prohibition on commercial cannabis activity, as set forth in City of Jurupa Valley Ordinance No. 2016-13 (and as may be set forth in successor ordinances, including those enacted by way of a ballot measure that enact a ban/total regulatory exclusion on commercial cannabis activity), to make exempted commercial cannabis activity a permitted and taxable use, to advance local control, to restrict the location and operation of exempted commercial cannabis activity, and to impose civil and criminal enforcement for violation of these local requirements.

B. Given that every aspect of commercial cannabis activity is pervasively regulated by the state, and participation in the same will always be exclusive to a relatively small, limited number of commercial cannabis licensees, the potential negative impacts on the City from exempted commercial cannabis activity due to hazardous emissions, commercial traffic, and socioeconomic conditions are negligible compared to similar uses conducted within the context of more common and less pervasively regulated industries. Thus, exempted commercial cannabis activity conducted in accordance with this chapter shall be exempt from all logistic and other similar supply-chain locational restrictions not imposed by this ordinance.

C. There are many reasons why an ordinance to affirmatively permit commercial cannabis the City, as opposed to providing a limited exemption from enforcement, would have been problematic at the time of the drafting of this chapter. As of the date of submission of this chapter, the City had not adopted a codified municipal code, it had not updated its zoning map since 2011, it had recently adopted its first General Plan, it was in the initial stages of changing its zoning designations in accordance with its newly adopted General Plan, and it had signaled a likelihood of making significant amendments to its General Plan in the near future. Further, cannabis-was federally illegal, and the City's land use, business, and safety regulations prevented the establishment and operation of businesses that did not comply with the Federal Controlled Substances Act, including state licensed cannabis businesses. What is more, the City provided a limited exemption from enforcement for the personal cultivation of cannabis, which a municipality could not ban pursuant to state law. All of this militated against locally regulating commercial cannabis activity by way of a more traditional municipal permitting and zoning scheme, and it is within the context of this extraordinary situation that the limited exemption set forth this ordinance must be interpreted.

(Ord. No. 2018-14, § 1, 11-6-2018; Measure L, 11-6-2018)

For purposes of this chapter, all definitions, other than the definitions explicitly set forth herein this chapter, shall have the same meaning as the definitions set forth in California's Medicinal and Adult-Use Cannabis Regulation and Safety Act, as set forth in California Business and Professions Code, Division 10, Section 26000, et seq., as of its initial effective date.

Act means California's Medicinal and Adult-Use Cannabis Regulation and Safety Act, as set forth in California Business and Professions Code, Division 10, Section 26000, et seq., and/or any later enacted state law or regulation governing commercial cannabis activity.

Applicant means person and/or owner applying for exempted commercial cannabis activity status pursuant to this chapter.

Application means application for exempted commercial cannabis activity status, including priority, non-priority, and amended versions of the same.

Cannabis means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified; obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by California Health and Safety Code Section 11018.5.

Cannabis goods means cannabis and products containing cannabis.

City means the City of Jurupa Valley, California.

Code means Jurupa Valley Municipal Code or other words to the same effect.

Commercial cannabis activity means any cannabis-related activity that requires a state license pursuant to the Act.

Cultivation means any commercial activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensees.

Exempted commercial cannabis activity means commercial cannabis activity conducted by any exemption holder in full compliance with each of the requirements and limitations set forth in this chapter.

Exempted commercial cannabis activity status means the status conferred to an applicant that has been provided with written notice from the City Clerk indicating that his/her/its application pursuant to this chapter has been deemed complete, and is thus eligible to engage in commercial cannabis activity upon the exemption holder's exempted premises in a manner that comports with, and is limited to, the exemption type(s) set forth in the exemption holder's completed application, so long as such exempted commercial cannabis activity fully complies with each of the requirements and limitations set forth in this chapter.

Exemption type means the type of exempted commercial cannabis activity that will be or is conducted by an exemption holder pursuant to this chapter, which shall include all of the following:

(1) Type 1 (cultivation) for all indoor/mixed light commercial cannabis cultivation, including any microbusiness that engages in the same;

(2) Type 2 (manufacturer) for all commercial cannabis activity related to and associated with manufacturing of cannabis goods, including any microbusiness that engages in the same;

(3) Type 3 (retail sales) for all cannabis retail sales, including any microbusiness that engages in the same;

(4) Type 4 (testing laboratory) for all laboratory testing of cannabis goods; and

(5) Type 5 (distributor) for all commercial cannabis distribution, including any microbusiness that engages in the same.

Exemption holder means any person who has been provided written notice from the City Clerk indicating that his/her/its application for exempted commercial cannabis activity status has been deemed complete.

Exempted lot means the designated parcel of land, which has been assigned a unique assessor's parcel number, specified in the application that is owned, leased, or otherwise held under the control of the applicant, where the exempted commercial cannabis activity will be or is conducted.

Exempted premises means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant, where the exempted commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one (1) exemption holder.

Exempted retail sales premises means the designated structure or structures and land specified in the completed application that is owned, leased, or otherwise held under the control of the applicant, where the exempted commercial cannabis activity involving retail sales will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one (1) exemption holder.

License means a state license issued under the Act, and includes both A-licenses and M-licenses, as well as testing laboratory licenses, as described in the Act.

Licensee means a person holding a license under the Act.

Manufacturer means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.

Naked eye, also called bare eye or unaided eye, means the practice of engaging in visual perception unaided by a magnifying or light-collecting optical instrument, such as a telescope or binoculars.

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 exempted commercial cannabis activity status, 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; and

(4) An individual who will be participating in the direction, control, or management of the person applying for exempted commercial cannabis activity status.

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

Retail cannabis sales means the sale of cannabis, or cannabis goods, to consumers other than a person holding a valid state license under the Act.

Rubidoux-Village Commercial shall have the same meaning as Rubidoux-Overlay Commercial, Rubidoux-Center Commercial, Rubidoux Commercial, or other similar words to the same effect, which are later ascribed to the R-VC (Rubidoux-Village Commercial) zone designation based on the City Council's stated desire to remove the word "village" from the City's official land use and zoning nomenclature.

Testing laboratory means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis goods.

(Ord. No. 2018-14, § 1, 11-6-2018; Measure L, 11-6-2018)

In addition to all of the applicable requirements of the Act, exempted commercial cannabis activity conducted within the City shall be conducted in accordance with all of the following local requirements:

(1) All signage upon the exempted premises shall be limited to one (1) wall sign in compliance with this Code, shall not be externally or internally illuminated, and shall not reference or otherwise depict narcotics, narcotic paraphernalia, cannabis, cannabis products, and/or cannabis paraphernalia.

(2) Not more than two hundred dollars ($200) in cash reserves may be stored overnight at the exempted premises.

(3) An applicant shall provide the name and phone number of an on-site staff person to the City Clerk for notification if there are operational problems at the exempted premises.

(4) In order to avoid excessive concentration of commercial cannabis activity in the City, no exempted lot shall be located within a one thousand-foot radius of three (3) or more exempted lots. The distance specified in this paragraph shall be the horizontal distance measured in a straight line from the property line of the lot on which a proposed exempted premises is to be located to the closest property line of each of the three (3) nearest lots on which exempted premises are located, without regard to intervening structures.

(5) In order to avoid excessive concentration of retail-related commercial cannabis activity in the City, the number of exempted retail sales premises within the City shall be limited to one (1) per fifteen thousand (15,000) City residents. This number shall increase with each additional fifteen thousand (15,000) City residents, such that for thirty thousand (30,000) City residents the number of exempted retail sales premises would be limited to two (2), for forty-five thousand (45,000) City residents the number would be limited to three (3) exempted retail sales premises, and so on.

The population figures to be used shall be those most recently estimated and officially published by the California Department of Finance for cities, counties and the state.

(6) Prior to commencement of commercial cannabis activity, but not prior to the City Clerk processing an application for exempted commercial cannabis activity status and/or issuing a notice of completion of the same, an exemption holder shall apply for and obtain all necessary state commercial cannabis licenses, City permits, City licenses, City certificates, and/or City approvals that are ordinarily required to be obtained prior to engaging in a lawful, permitted use at the location of the exemption holder's exempted lot. The City shall not use an exemption holder's involvement with exempted commercial cannabis activity as a basis for denial of any right, privilege, license, and/or approval of any kind whatsoever.

(7) Outdoor cannabis cultivation shall remain absolutely prohibited in all zone districts of the City.

(8) All cannabis cultivation shall be enclosed in a secure structure in a manner that prevents cannabis from being identified by the naked eye from any public right-of-way.

(9) An exemption holder shall at all times be in good standing with his/her/its City tax and fee payment obligations, including any City taxes and/or fees relating to commercial cannabis activity.

(10) Exempted premises shall not be located within a six hundred-foot radius of a school providing instruction in kindergarten or any grades 1 through 12 that is in existence at the time the application for exempted commercial cannabis activity is filed with the City Clerk. The distance specified in this subsection shall be measured in the same manner as provided in California Health and Safety Code Section 11362.768(c), or its successor statutes, unless otherwise provided by law. There shall be no local radius restrictions related to day care centers or youth centers.

(11) No person under the age of twenty-one (21) shall be permitted entry upon any exempted premises where cannabis is present.

(12) Exempted commercial cannabis activity shall only be conducted upon an exempted lot that is located in one (1) or more of the following zone districts of the City: C-1/C-P (General Commercial); M-SC (Manufacturing-Service Commercial); B-P (Business Park); or R-VC (Rubidoux-Village Commercial).

(13) Type 3 (retail sales) shall be the only exemption type allowed in the C-1/C-P (General Commercial) and R-VC (Rubidoux-Village Commercial) zone districts of the City.

(14) Commercial cannabis activity that does not strictly conform to the exemption holder's application that was deemed complete by the City Clerk, including the location of the exempted premises and the exemption types(s) set forth therein, shall remain absolutely prohibited in all zone districts of the City.

(Ord. No. 2018-14, § 1, 11-6-2018; Measure L, 11-6-2018)

A. Within thirty (30) calendar days following the date of enactment of this chapter, the City Clerk shall cause to be prepared a priority application for exempted commercial cannabis activity status.

B. The priority application form shall require the applicant to:

(1) Pay a reasonable application fee of not more than two thousand five hundred dollars ($2,500.00);

(2) List the address, or assessor's parcel number, of the proposed exempted lot;

(3) Indicate the proposed exemption type(s), as set forth in Section 11.45.020 of this chapter;

(4) Attach an original, or certified copy, of the applicant's initial-not amended or restated-statement by unincorporated association, that specifically contains the following language: "commercial cannabis" or "commercial marijuana," which contained those exact words at the time such statement by unincorporated association was filed with the California Secretary of State, and that was file-stamped by the California Secretary of State on or before the date of September 1, 2016; and

(5) Provide the legal name, mailing address, and emergency telephone number of the applicant and on-site staff person for whom the City should contact in case of operational problems at the exempted premises.

C. Thirty-one (31) calendar days following the date of enactment of this chapter, the City Clerk shall begin accepting priority applications. No applicant shall submit more than one (1) priority application.

D. The initial period for accepting priority applications shall be limited to fifteen (15) business days.

E. The City Clerk shall ensure that each priority application received during the initial fifteen (15) business day period is date- and time-stamped, and processed in the order in which it was received.

F. Any priority application with a proposed exemption type of Type 3 (retail sales) that is processed after the maximum number of exempted retail sales premises has been reached, as set forth in subsection 11.45.030.E. of this chapter, shall be deemed incomplete.

G. Any priority application processed after the maximum number of exempted lots allowed within a one thousand-foot radius of the applicant's proposed lot has been reached, as set forth in subsection 11.45.030.D. of this chapter, shall be deemed incomplete.

H. Any priority application with a proposed exempted premises located in the C-1/C-P (General Commercial) or the R-VC (Rubidoux-Village Commercial) zone classifications of the City, and that also indicates a proposed exemption type other than Type 3 (retail sales), as set forth in Section 11.45.030 of this chapter, shall be deemed incomplete.

I. Any priority application with a proposed exempted premises not located within the C-1/C-P (General Commercial), M-SC (Manufacturing-Service Commercial), B-P (Business Park), or R-VC (Rubidoux-Village Commercial) zone classifications of the City, as set forth in Section 11.45.030 of this chapter, shall be deemed incomplete.

J. Any priority application submitted by an applicant which does not fully comply with the requirements set forth in this section shall be deemed incomplete.

K. Within ten (10) business days following the expiration of the initial period for accepting priority applications, the City Clerk shall determine if the priority application is complete, and shall either:

(1) Notify the applicant in writing that the priority application is complete; or

(2) Notify the applicant in writing that the priority application is incomplete, and set forth the reason(s) therefore, including all additional information and documentation necessary to render it complete.

L. The applicant shall have fifteen (15) business days from the date of notice of incomplete application to submit all additional information and documentation identified by the City Clerk to complete the priority application. Any amended priority application shall maintain the original date- and time-stamp in the order in which it was received.

M. Within ten (10) business days following receipt of an amended priority application, the City Clerk shall determine whether the application is complete, and shall either:

(1) Notify the applicant in writing that the amended priority application is complete; or

(2) Notify the applicant in writing that the amended priority application is incomplete, and set forth the reason(s) therefore, including all additional information and documentation necessary to render it complete.

N. The applicant shall have fifteen (15) business days from the date of notice of incomplete amended application to submit all additional information and documentation identified by the City Clerk to complete the amended priority application. Any amended priority application shall maintain the original date- and time-stamp in the order in which it was received.

O. Within ten (10) business days following receipt of an amended priority application, the City Clerk shall determine whether the application is complete, and shall either:

(1) Notify the applicant in writing that the amended priority application complete; or

(2) Notify the applicant in writing that the priority application remains incomplete, setting forth the reasons therefore, and shall be considered rejected and null and void.

P. Nothing shall prevent an applicant that submitted a priority application but was rejected from thereafter submitting a non-priority application, as set forth in Section 11.45.050 of this chapter.

(Ord. No. 2018-14, § 1, 11-6-2018; Measure L, 11-6-2018)

A. Within sixty (60) calendar days following the date of enactment of this chapter, the City Clerk shall cause to be prepared an application form for use by the non-priority applicant for exempted commercial cannabis activity status.

B. The non-priority application form shall require the applicant to:

(1) Pay a reasonable application fee of not more than two thousand five hundred dollars ($2,500);

(2) List the address, or assessor's parcel number, of the proposed exempted lot;

(3) Indicate the proposed exemption type(s), as set forth in Section 11.45.020 of this chapter; and

(4) Provide the legal name, mailing address, and emergency telephone number of the applicant and on-site staff person for whom the City should contact in case of operational problems at the exempted premises.

C. One hundred (100) calendar days following the date of enactment of this chapter, the City Clerk shall begin accepting non-priority applications. The City Clerk shall ensure that each non-priority application is date and time-stamped and processed in the order in which it was received.

D. Any non-priority application with a proposed exemption type of Type 3 (retail sales) that is processed after the maximum number of exempted retail sales premises has been reached, as set forth in subsection 11.45.030.E. of this chapter, shall be deemed incomplete.

E. Any non-priority application processed after the maximum number of exempted lots allowed within a one thousand-foot radius of the applicant's proposed lot has been reached, as set forth in subsection 11.45.030.D. of this chapter, shall be deemed incomplete.

F. Any non-priority application with a proposed exempted premises located in the C-1/C-P (General Commercial) or the R-VC (Rubidoux-Village Commercial) zone classifications of the City, and that also indicates a proposed exemption type other than Type 3 (retail sales), as set forth in subsection 11.45.030.M. of this chapter, shall be deemed incomplete.

G. Any non-priority application with a proposed exempted premises not located within the C-1/C-P (General Commercial), M-SC (Manufacturing-Service Commercial), B-P (Business Park), or R-VC (Rubidoux-Village Commercial) zone classifications of the City, as set forth in subsection 11.45.030.L. of this chapter, shall be deemed incomplete.

H. Any priority application submitted by an applicant which does not fully comply with the requirements set forth in this section shall be deemed incomplete.

I. Within ten (10) business days following the non-priority application being submitted, the City Clerk shall determine if it is complete and shall either:

(1) Notify the applicant in writing that the non-priority application is complete; or

(2) Notify the applicant in writing that the non-priority application is incomplete, and set forth the reason(s) therefore, including all additional information and documentation necessary to render it complete.

J. The applicant shall have fifteen (15) business days from the date of notice of incomplete application to submit all additional information and documentation identified by the City Clerk to complete the non-priority application. Any amended non-priority application shall maintain the original date- and time-stamp in the order in which it was received.

K. Within ten (10) business days following receipt of an amended non-priority application, the City Clerk shall determine whether the application is complete, and shall either:

(1) Notify the applicant in writing that the amended non-priority application is complete; or

(2) Notify the applicant in writing that the amended non-priority application is incomplete, and set forth the reason(s) therefore, including all additional information and documentation necessary to render it complete.

L. The applicant shall have fifteen (15) business days from the date of notice of incomplete amended application to submit all additional information and documentation identified by the City Clerk to complete the amended non-priority application. Any amended non-priority application shall maintain the original date- and time-stamp in the order in which it was received.

M. Within ten (10) business days following receipt of an amended non-priority application, the City Clerk shall determine whether the application is complete, and shall either:

(1) Notify the applicant in writing that the amended non-priority application is complete; or

(2) Notify the applicant in writing that the non-priority application remains incomplete, setting forth the reasons therefore, and shall be considered rejected and null and void.

N. Nothing shall prevent an applicant that applied for exemption but was rejected from thereafter submitting an application together with full payment of the application fee to the City Clerk, as set forth in this section.

(Ord. No. 2018-14, § 1, 11-6-2018; Measure L, 11-6-2018)

An applicant that has been provided with written notice from the City Clerk indicating that his/her/its application pursuant to this chapter has been deemed complete shall be conferred exempted commercial cannabis activity status, and is thus eligible to engage in commercial cannabis activity upon the exemption holder's exempted premises in a manner that comports with, and is limited to, the exemption type(s) set forth in the exemption holder's completed application, so long as such exempted commercial cannabis activity fully complies with each of the requirements and limitations set forth in this chapter. For purposes of obtaining commercial cannabis licensure from the state, exempted commercial cannabis activity status shall be deemed the functional equivalent of local municipal authorization for the exemption holder to conduct commercial cannabis activity at his/her/its exempted premises, so long as such commercial cannabis activity fully complies with each of the requirements and limitations set forth in this section. Upon receiving a written request from an exemption holder or representative of a governmental agency requesting confirmation of the exemption holder's local municipal authorization to engage in commercial cannabis activity, the City Clerk shall provide a timely written response in a form and manner that comports with the request. The City Clerk's written response shall include, at a minimum, written statement indicating the location of the exemption holder's exempted premises and the exemption type(s) associated with the same.

(Ord. No. 2018-14, § 1, 11-6-2018; Measure L, 11-6-2018)

An exemption holder may change the location of his/her/its exempted premises, may change his/her/its exemption classifications, and may transfer his/her/its exempted commercial cannabis activity status, so long as the exemption holder satisfies the requirements related to the filing of a complete amended application for exempted commercial cannabis activity status, as set forth herein this section. The form, contents, manner of processing, and standard for determining completeness of the amended application for exempted commercial cannabis activity status shall be substantially similar to non-priority applications, as set forth in Section 11.45.050 of this chapter.

(Ord. No. 2018-14, § 1, 11-6-2018; Measure L, 11-6-2018)

A. Engaging in commercial cannabis activity within the City of Jurupa Valley in violation of this chapter or noncompliance with any of the requirements of this chapter is declared to be a public nuisance and shall be subject to any criminal or civil enforcement remedies available under the law and this Code. In addition, an exemption holder may, at the City's discretion, have his/her/its exempted commercial cannabis activity status revoked when, following administrative proceedings conducted in accordance with Chapter 2.40 ("Hearings and Appeals") of this Code, the exemption holder is found to have violated this section or the Act. Furthermore, the City may prosecute a violation of this chapter by means of civil enforcement through a restraining order, a preliminary or permanent injunction, or by any other means authorized by law or equity. Notwithstanding any other provision of this Code; no conduct which is protected from criminal liability pursuant to state law shall be made criminal by this section.

B. Any person violating or causing or permitting the violation of any of the provisions of this chapter shall be guilty of a misdemeanor.

(Ord. No. 2018-14, § 1, 11-6-2018; Measure L, 11-6-2018)

A City of Jurupa Valley citizens' ballot measure known as "An Initiative Measure to Legalize Marijuana Dispensaries and Commercial Marijuana Activity in the Manufacturing-Service Commercial Zone and Impose Certain Operational Requirements on Marijuana Dispensaries and Commercial Marijuana Activities in this Zone" (Chapter 11.35 "Commercial Marijuana Activity") has qualified for the June 2018 ballot. In the event that the provisions of this chapter 11.45 ("Exempted Commercial Cannabis Activity") do not appear in the form of a competing citizens' ballot measure on the same June 2018 ballot, and should the previously qualified citizens' ballot measure be approved by the voters and become effective, it is the intent of the People of the City of Jurupa Valley that any exempted commercial marijuana activity status conferred pursuant to Section 11.35.030 of Chapter 11.35 ("Commercial Marijuana Activity") remain valid, so long as the established exempted commercial marijuana activity remains fully compliant with all of the requirements and standards set forth in Chapter 11.35 ("Commercial Marijuana Activity"). Other than to allow for the continued operation of exempted commercial marijuana activity that was established prior to this chapter 11.45 ("Exempted Commercial Cannabis Activity") becoming effective, Chapter 11.35 ("Commercial Marijuana Activity") shall be fully repealed and replaced in its entirety by the provisions of this chapter 11.45 ("Exempted Commercial Cannabis Activity"). In no event shall any exempted commercial marijuana activity status conferred pursuant to Chapter 11.35 ("Commercial Marijuana Activity") be considered an "exempted retail sales premises" or "exempted lot" pursuant to this chapter 11.45 ("Exempted Commercial Cannabis Activity"), nor shall any exempted commercial marijuana activity established pursuant to Chapter 11.35 ("Commercial Marijuana Activity") cause any application submitted pursuant to Sections 11.45.040 and 11.45.050 of this chapter 11.45 ("Exempted Commercial Cannabis Activity") to be deemed incomplete or otherwise rejected.

(Ord. No. 2018-14, § 1, 11-6-2018; Measure L, 11-6-2018)