Chapter 23.92 — CANNABIS BUSINESSES

• (a) The purpose of this chapter is to regulate cannabis business land uses, as permitted by the Medicinal and Adult-Use Cannabis Regulation and Safety Act (Section 26200 of the California Business and Professions Code), in a manner designed to minimize negative impacts on the city and neighboring uses, and promote the health, safety and general welfare of residents and businesses within the city.

• (b) This chapter is further adopted and established pursuant to the specific authority granted to Pacific Grove in Section 7 of Article XI of the California Constitution and Section 26200 of the California Business and Professions Code. This chapter shall govern all cannabis businesses within the jurisdiction of Pacific Grove.

• (Ord. 23-017 § 4, 2023)

• (a) In the event of any conflict between the provisions of this chapter and the provisions of the Medicinal and Adult-Use Cannabis Regulation and Safety Act or any other applicable state or local law, the more restrictive provision shall control.

• (b) Except as expressly stated herein, cannabis businesses must comply with all other city codes and regulations. Nothing in this chapter shall be construed as permitting a cannabis business to operate at any time in a manner that is in violation of all other applicable state and local laws.

• (Ord. 23-017 § 4, 2023)

Unless otherwise defined herein, the terms in this chapter shall have the same meaning as set forth in the Medicinal and Adult-Use Cannabis Regulation and Safety Act and any rules promulgated pursuant thereto. In addition, the following terms shall be defined as follows:

"Adult-use cannabis" means cannabis and cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician's recommendation, or are intended for use on, or consumption by, animals.

"Cannabis business" means any person engaged in commercial cannabis activity as defined in California Business and Professions Code Section 26001.

"Local license" means a license granted by the city pursuant to Chapter 11.100 PGMC.

"Medicinal and Adult-Use Cannabis Regulation and Safety Act" or "MAUCRSA" means Division 10 of the California Business and Professions Code.

"Medicinal cannabis" means cannabis and cannabis products that are intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician's recommendation.

"Retail, delivery-only" shall mean a cannabis business that does not allow on-site sales of cannabis to customers, and has or will have a Type 9 license from the California Department of

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City of Pacific Grove, CA § 23.92.030

ZONING

§ 23.92.050

Cannabis Control.

"Retail, storefront" shall mean a cannabis business that has a physical location from which cannabis is sold to retail customers on site, and has or will have a Type 10 license from the California Department of Cannabis Control.

"State law(s)" shall mean and include California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.85 (Medical Marijuana Program Act); MAUCRSA, and all other applicable laws and regulations of the state of California.

(Ord. 23-017 § 4, 2023)

• (a) No person may operate a cannabis business of any type in the city unless they are in compliance with the following:

  • (1) A use permit has been approved for the cannabis business and remains valid; and

  • (2) A local license has been approved for the cannabis business and remains valid;

  • (3) A state license to operate the cannabis business has been approved and remains valid.

• (b) PGMC § 23.70.080(a) shall govern and apply to use permits for cannabis businesses applied for or obtained pursuant to this chapter unless this chapter expressly states otherwise. All requirements contained in this chapter shall be in addition to the applicable requirements of PGMC § 23.70.080(a).

• (Ord. 23-017 § 4, 2023)

• (a) An application for a use permit shall be filed with the planning director on the official form supplied by the city and shall be accompanied by the application fee established by resolution of the city council, as may be amended from time to time.

• (b) An application for a use permit shall include, but shall not be limited to, the following information:

  • (1) Proof that the applicant has received a local license, and the local license is in good standing.

  • (2) The address of the proposed cannabis business.

  • (3) A site plan and floor plan of the cannabis business denoting the use of areas within the cannabis business, including storage, employee areas, restrooms, areas of ingress and egress, limited access areas, and restricted access areas, if included. The plans shall also note the locations of proposed exterior lighting and security cameras.

  • (4) The name and address of the person that owns the real property upon which the cannabis business is to be operated. In the event the applicant does not legally own the property, the application must be accompanied by a notarized acknowledgment from the person that owns the property that a cannabis business will be operated on his or her property.

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City of Pacific Grove, CA

PACIFIC GROVE CODE

§ 23.92.050

§ 23.92.070

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

• (6) Authorization for the planning director to seek verification of the information contained within the application.

• (7) Any such additional and further information as is deemed necessary by the planning director to administer this section or this chapter.

• (c) The planning director and appropriate city staff shall review, verify and investigate all information on the application and prepare a report for the planning commission incorporating the findings of such investigation and verification, including, but not limited to, the suitability of the proposed location, and the applicant's compliance with the requirements of this chapter, Chapter 11.100 PGMC and PGMC § 23.70.080(a).

• (Ord. 23-017 § 4, 2023)

• (a) The planning commission shall not hold a public hearing on or approve any application for a use permit to operate a cannabis business unless the applicant holds a local license in good standing.

• (b) In addition to the findings set forth in PGMC § 23.70.080(a)(4), a use permit for a cannabis business shall only be granted subject to the following additional findings:

  • (1) The cannabis business fully complies with and meets all operating criteria required pursuant to state laws, Chapter 11.100 PGMC, any other provisions of this code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval in the use permit; and

  • (2) The cannabis business will be located in one of the following zones:

    • (A) For storefront retail, the use will be located in the C-1, C-D, C-FH or C-2 zone.

    • (B) For delivery-only retail, the use will be located in the I, C-FH, C-1 or C-2 zone;

  • (3) The cannabis business meets the separation requirements in PGMC § 23.92.070.

• (c) The planning commission may deny an application for a use permit if it determines that one or more of the findings required by PGMC § 23.70.080(a)(4) or subsection (b) of this section cannot be made.

• (d) Based on the information set forth in the application and city staff's report and testimony presented at the public hearing, the planning commission may impose reasonable conditions on the proposed cannabis business in addition to those specified in and required to be included in every use permit granted under this chapter.

• (Ord. 23-017 § 4, 2023)

• (a) A use permit for a cannabis business shall not be approved unless the proposed cannabis business will be located more than 1,000 feet from a day care center, a youth center, a preschool, or a public or private school.

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City of Pacific Grove, CA

ZONING

§ 23.92.070

§ 23.92.080

• (b) All distances specified in this section shall be measured in a straight line, without regard to intervening structures or topography, from the nearest point on the property line on which the cannabis business is or will be located, to the nearest property line of the parcel where such use is located.

• (c) For the purposes of this section the following definitions apply:

  • (1) "Day care center" means a child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school-age child care centers, and includes child care centers licensed pursuant to California Health and Safety Code Section 1596.951.

  • (2) "Youth center" means any facility that is operated by a public agency or nonprofit entity with the sole purpose of providing educational and/or recreational services to minors. Dance studios, gymnasiums, martial arts studios, or other similar uses that provide services to both adults and minors shall not be considered a youth center.

• (3) "Public or private school" means any location appearing in the California Department of Education School Directory as the location of a public or private school.

• (Ord. 23-017 § 4, 2023)

A use permit for a cannabis business shall be subject to the following conditions of approval:

• (a) The premises must be equipped with an odor absorbing ventilation and exhaust system so that odor generated inside the cannabis business that is distinctive to its operation is not detected outside the cannabis business, anywhere on adjacent property or public rights-ofway, on or about any exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the cannabis business. As such, cannabis businesses must install and maintain the following equipment or any other equipment which the city determines has the same or better effectiveness:

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

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

• (b) The applicant or its legal representative shall indemnify and hold the city harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of federal law associated with the operation of the cannabis business; defend, at its sole expense, any action against the city, its agents, officers, and employees related to the approval of a use permit or the operation of the cannabis business; reimburse the city for any court costs and attorney fees that the city may be required to pay as a result of any legal challenge (or federal enforcement action) related to the city's approval of a conditional use.

• (c) All windows on the premises of the cannabis business shall be appropriately secured and cannabis securely stored.

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City of Pacific Grove, CA

PACIFIC GROVE CODE

§ 23.92.080

§ 23.92.110

• (d) All cannabis businesses shall comply with the city's lighting standards in PGMC § 23.31.040, as applicable, including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed.

• (e) All cannabis businesses and all equipment used in the conduct of the business must be operated in compliance with all applicable state and local laws and regulations, including all building, electrical, and fire codes, and in compliance with the businesses' state and local licenses.

• (f) For delivery-only retail, the business will only sell medicinal cannabis and medicinal cannabis products. The sale of adult-use cannabis or adult-use cannabis products is prohibited.

• (g) The cannabis business shall not engage in cultivation, manufacturing, distribution, or laboratory testing of cannabis, and shall limit its commercial cannabis activities to those permitted by a state retail license.

• (h) On-site signage for a cannabis business that is viewable from the exterior of the cannabis business shall comply with all local signage laws applicable to the licensed premises, including PGMC Title 20. Signage may not be designed to appeal to children, or contain any false or misleading statements, or make any misrepresentations.

• (Ord. 23-017 § 4, 2023)

To the fullest extent permitted by law, the city shall not assume any liability whatsoever, with respect to approving any use permit pursuant to this chapter or the operation of any cannabis business approved for such permit pursuant to this chapter. (Ord. 23-017 § 4, 2023)

• (a) Recordings made by security cameras at any cannabis business shall be made immediately available to the planning director or designee upon verbal request for the purposes of determining compliance with this chapter and the cannabis business's use permit.

• (b) The planning director or designee shall have the right to enter all cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter and the cannabis business's use permit. Such inspections shall be limited to observing the premises for purposes of determining whether the cannabis business is being operated or maintained in compliance with this code, state law, and other applicable laws and regulations.

• (c) Applicants and permittees must cooperate with employees and investigators of the city who are conducting inspections or investigations relevant to the enforcement of this chapter. No applicant or permittee shall by any means interfere with, obstruct or impede any city official from exercising their duties under the provisions of this chapter and all rules promulgated pursuant to it.

• (Ord. 23-017 § 4, 2023)

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City of Pacific Grove, CA § 23.92.110

ZONING

§ 23.92.110

The operation of a cannabis business in violation of any conditions of approval or the provisions of this chapter or PGMC § 23.70.080(a) is a violation of this code, and a public nuisance. The city may seek to remedy such violations by any means provided for in law or equity, including but not limited to the enforcement mechanisms and remedies provided for in Chapters 1.16 and 1.19 PGMC, or take action to revoke the use permit.

Revocation may be effected by the planning commission after a public hearing to which the operator has had 10 days' notice by certified mail, and in which the planning commission finds that the cannabis business has not complied with one or more use permit conditions or requirements of this chapter. In the event that service by certified mail is not effected, service may be by personal service on an owner, or if personal service is not effected, the property shall be posted with a notice of the hearing, and a copy of the notice shall be published in an official newspaper of this city.

(Ord. 23-017 § 4, 2023)

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City of Pacific Grove, CA