Long Beach Municipal Code Div. VII Shared Use Manufacturing Operating Conditions

Manufacturing facilities may be shared, containing multiple licensed permit holders for a single premises. In addition to the general operating requirements set forth in Division III and the manufacturing operating requirements set forth in Division VI of this Chapter, this Division provides additional requirements for Shared Use Manufacturing.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

A. The manufacture of cannabis products in shared-use facilities shall comply with the standards set by State and local law, including but not limited to those related to volatile and nonvolatile extractions; labeling, packaging, repackaging, and relabeling; infusions; safety; discharges; waste disposal; processing, handling, and storage of solvents or gases; and food handling.

B. Manufacturers shall only be allowed to engage in the manufacture of cannabis authorized by State law and in the Adult-Use Cannabis Business Permit issued for the premises. No additional manufacturing activities may be conducted without applying for, and receiving written permission, from the City for said additional activity.

C. The manufacture of cannabis products shall be conducted in a manner to ensure the operation does not pose a significant threat to the health, safety, and welfare of the public or to neighboring properties.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

A. The City shall accept applications for Shared Use Manufacturing Operator Licenses from Verified Equity Businesses only for a period of one (1) year, or until fifteen (15) Operator licenses have been issued, whichever occurs sooner. The one-year period shall not start until the date the City begins accepting applications for Shared Use Manufacturing Operator Licenses.

B. After the one-year period has concluded, the City shall begin accepting applications from all qualifying applicants for the Shared Use Manufacturing Operator license pursuant to this chapter.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

A. Shared-use manufacturing facilities are required to have a Principal Licensee, who is responsible for the facility.

B. The principal licensee shall operate the shared-use facility in accordance with the conditions of operation specified in this Chapter.

C. The shared-use manufacturing principal licensee shall be responsible for ensuring the facility meets all applicable requirements of this Chapter.

D. No cannabis manufacturer shall operate as a shared-use manufacturing facility without prior approval of the City.

E. Licensed cannabis manufacturers in good standing may request to operate as a shared-use manufacturing facility on a form prescribed by the Director of Financial Management.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

A. Operator licenses will only be issued to businesses that have received written authorization to operate in a licensed shared-use manufacturing facility.

B. Operator Licensees may only conduct the following operational activities:

1. Infusions, as defined by this Chapter;

2. Packaging and labeling of cannabis products; and,

3. Extractions with butter or food-grade oils, provided that the resulting extract or concentrate shall be used solely in the manufacture of the Operator Licensee's infused product and shall not be sold to any other licensee.

C. Operator licensees shall have a separate license for each shared-use manufacturing facility where they are conducting manufacturing operations.

D. Operator Licensees may only operate at the facility identified by their license and during the hours set forth in the occupancy schedule.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

A. Operator Licensees are exempt from the following provisions of this Chapter:

1. 5.92.215.3.d (Proof that the applicant has the legal right to occupy and use the premises for commercial cannabis activity);

2. 5.92.250 (One applicant per address);

3. 5.92.425 (Noncompliant locations);

4. 5.92.435 (Premises Requirements);

5. 5.92.860 (Subletting prohibited).

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

A. The Principal licensee and the Operator Licensee(s) may take part in a use agreement which may allocate responsibility for providing and maintaining commonly used equipment and services, including, but not limited to, security systems, fire monitoring and protection services, and waste disposal services. However, such agreement is not binding on the City and the City may take enforcement action against either the principal licensee or the Operator Licensee(s), regardless of the allocation of responsibility in the use agreement.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

A. The Principal licensee will identify and assign each Operator Licensee a "designated area" that, at a minimum:

1. Is for exclusive use by the Operator Licensee; and,

2. Provides an area for storage that is secure, fixed in place, locked with a commercial-grade lock, and accessible only to the Operator Licensee for storage of that Operator Licensee's cannabis, cannabis concentrates, and cannabis products.

B. The designated area for an Operator Licensee shall not be altered without prior notification to the City. Prior to making any changes to the designated area, written notification shall be submitted to the City that includes the intended changes. The City shall approve all changes prior to the designated area being altered.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

A. The Principal licensee will identify and assign common-use area(s) authorized for use by the Operator Licensee.

B. Any part of the premises used for manufacturing activities that is a common-use area shall be occupied by only one licensee at a time by restricting the time period that each licensee may use the common-use area. During the assigned time period, one licensee shall have sole and exclusive occupancy of the common-use area.

C. The principal licensee may conduct manufacturing activities as permitted under its medical or adult-use manufacturing license and may use the common-use area during its scheduled time period.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

A. The Principal licensee is responsible for providing an occupancy schedule that identifies the days and/or times each Operator Licensee is authorized to use the common-use area(s).

B. The occupancy schedule shall be prominently posted near the entrance to the licensed shared-use facility.

C. The occupancy schedule shall not be altered without prior notification to the City. Prior to making any changes to the occupancy schedule, written notification shall be submitted to the City that includes the intended changes.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

The use of the shared use facility shall be restricted to the principal licensee and Operator Licensees authorized by the City to use the shared-use facility.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

The use of the shared use facility shall be restricted to the principal licensee and Operator Licensee(s) authorized by the City to use the shared-use facility.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

Any cannabis product or other materials remaining after an Operator Licensee ceases operation and discontinues use of its designated area shall be considered cannabis waste and disposed of by the principal licensee consistent with the requirements of this Chapter.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

In the event of a recall or embargo of a cannabis product produced at a shared-use facility, the City, in its sole discretion, may include any or all cannabis products produced at the shared-use facility.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

A Principal Licensee that wishes to discontinue operation as a shared-use facility may do so by providing written notice to the City and each Operator Licensee authorized to use the shared-use facility at least thirty (30) calendar days prior to the effective date of the cancellation.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)

A Principal licensee or an Operator Licensee is liable for any violation found at the shared-use facility during that licensee's scheduled occupancy or within that licensee's designated area. However, a violation of any provision of the Chapter may be deemed a violation for which each Operator Licensee and the principal licensee are responsible. In the event of a recall or embargo of a cannabis product produced at a shared-use facility, the City, in its sole discretion, may include any or all cannabis products produced at the shared-use facility.

(ORD-22-0015 § 4, 2022; ORD-21-0023 § 15, 2021)