Chapter 8.10 — COMMERCIAL CANNABIS PUBLIC HEALTH PERMIT

A.

The purpose of Chapter 8.10 is to establish a public health permit and fee system for commercial cannabis activities that are subject to state and local laws and regulations relating to public health, and ensure that city expenses resulting from the city's inspection and enforcement of public health requirements of commercial cannabis activities are offset by the fees collected.

B.

The authority for this part is contained in Division 10 of the California Business and Professions Code, which expressly permits local regulation of commercial cannabis activities.

C.

Definitions contained within Section 8.10.020 pertain to Chapters 8.10 and 8.11 of this Code.

(Ord. No. 7326, § 2, 6-5-2018)

A.

"Adulterated product" means the cannabis or cannabis product that is manufactured, prepared, packed, held, or sold under insanitary conditions whereby it may have become contaminated with filth or rendered injurious to health as defined in the Section 26131 of the Business and Professions Code.

B.

"Applicant" means the individual or business entity that is applying for a public health permit to operate a cannabis facility and whose name the permit will be issued. The applicant must be the owner of the cannabis facility and will be considered the permittee upon issuance of a permit.

C.

"Approved source" means acceptable to the enforcement agency based on a determination of conformity with applicable state and local laws.

D.

"Attractive to children or youth" refers to products, packaging, labeling, or advertising that may especially encourage persons under age 21 to initiate cannabis consumption or otherwise consume (accidentally or purposely) cannabis or cannabis products. The term includes:

Products that:

a.

Resemble a non-cannabis consumer product of a type that is typically consumed by, or marketed to, children or youth, such as a specific candy or baked treat; or

b.

Occur in the shape of a cartoon, human or any other animate creature including an insect, toy, fruit, vehicle or robot.

Packaging or labeling that:

a.

Resembles packaging or labeling of a non-cannabis consumer product of a type that is typically consumed by, or marketed to, children or youth;

b.

Contains images depicting a cartoon, human or any other animate creature including an insect, toy, fruit, vehicle, or robot, or images of a candy or a baked good resembling a non-cannabis consumer product of a type that is typically consumed by, or marketed to, children or youth;

c.

Contains text referring to a cartoon, or any other animate creature including an insect, toy, fruit, vehicle or robot;

d.

Contains any images, characters, or phrases that closely resemble images, characters, or phrases popularly used to advertise to children; or

e.

For edibles, describes any characterizing flavor such as "lemon-flavored" in font sizes that exceed that of the largest word in the "Warning" on the package.

Advertising that:

a.

Mimics advertising of a non-cannabis consumer product of a type that is typically consumed by, or marketed to children or youth;

b.

Depicts a cartoon, or any non-human animate creature including an insect, toy, fruit, vehicle or robot, candy, baked goods, vehicles or robots typically marketed to youth;

c.

Uses actors or human characters who appear to be under age 21 or are under age 25; or

d.

Includes celebrities who specifically appeal to youth.

E.

"Batch" means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:

"Harvest batch" means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals.

"Manufactured cannabis batch" means either of the following:

a.

An amount of cannabis concentrate or extract produced in one production cycle using identical input materials, extraction methods, and standard operating procedures, and intended to have uniform character and quality; or

b.

An amount of a type of manufactured cannabis produced in one production cycle using identical formulation and standard operating procedures that is intended to have uniform character and quality.

F.

"Batch number" means any distinct group of numbers, letters, or symbols, or any combination thereof, assigned, as required by state law, to a specific harvest batch or manufactured cannabis batch, and from which the complete history of the manufacturing, packaging, labeling, and/or holding of a lot of cannabis product can be determined.

G.

"Best management practice" means methods or techniques found to be the most effective and practical means in achieving an objective.

H.

"Cannabinoid" means the natural components found within the cannabis plant including, but not limited to, cannabidiols and tetrahydrocannabinols.

I.

"Cannabis facility" means a permanent structure in a fixed location where a cannabis retailer, distributor, manufacturer, cultivator or microbusiness operates or conducts business.

J.

"CBD" means the compound cannabidiol.

K.

"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" also means marijuana as defined by Section 11018 of the Health and Safety Code. "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. "Cannabis" does not mean "industrial hemp" as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code.

L.

"Cannabis concentrate" means manufactured cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product's potency. Resin from granular trichomes from a cannabis plant is a concentrate. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

M.

"Cannabis labeling" means any label or other written, printed, or graphic matter upon a cannabis product, or upon its container or wrapper, or that accompanies any cannabis product.

N.

"Cannabis product" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "Cannabis product" also means marijuana products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medical cannabis products.

O.

"Cannabis product recall" means an action or order made by the state and/or the city health officer to cease the sale, distribution, or manufacturing of cannabis or cannabis product when it has been determined by the city health officer that there is a reasonable likelihood that the cannabis or cannabis product is adulterated or misbranded, and that the use of, or exposure to, the cannabis or cannabis product may cause adverse health consequences to humans and/or animals.

P.

"Cannabis waste" means waste that is not hazardous waste that contains cannabis and that has been made unusable and unrecognizable in a manner required by state and local laws and regulations.

Q.

"Cartoon" means any animation, drawing or other depiction of an object, person, animal, creature or similar caricature that satisfies any of the following criteria:

The use of comically exaggerated features;

The attribution of human characteristics to animals, plants or other objects, or the similar use of anthropomorphic technique; or

The attribution of unnatural or extra-human abilities, such as imperviousness to pain or injury, X-ray vision, tunneling at very high speeds or transformation.

R.

"Children or youth" means individuals under age 21.

S.

"City health officer" means the duly appointed city health officer or his or her duly authorized representative.

T.

"Commercial cannabis activity" means the cultivation, possession, manufacture, distribution, processing, storing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products for commercial purposes.

U.

"Component" means any substance or item intended for use in the manufacture of a cannabis product, including those substances or items that are not intended to appear in the final form of the product. Component can include cannabis and cannabis products used as ingredients, other ingredients, and processing aids.

V.

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

W.

"Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned, leased, or controlled by the retailer.

X.

"Department" means the Pasadena Public Health Department, Environmental Health Services Division.

Y.

"Director of public health" means the duly appointed director of public health or his or her duly authorized representative.

Z.

"Distinguishable" means perceivable by an ordinary consumer by either sense of smell or taste.

AA.

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

BB.

"Distributor" means a person or entity holding a valid state license and permitted to engage in the business of the distribution of cannabis and cannabis products between state licensed cannabis facilities.

CC.

"Dried flower" means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

DD.

"Edible cannabis product" means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

EE.

"EHS" means an environmental health specialist.

FF.

"Employee" means each and every person engaged in the operation or conduct of any commercial cannabis activity business, whether as owner, member of the owner's family, partner, associate, agent, manager or operator, and each and every other person employed or working in such business for a wage, salary, commission, barter, or any other form of compensation.

GG.

"Extraction" means a process by which cannabinoids are separated from cannabis plant material through chemical or physical means.

HH.

"Finished product" means a manufactured cannabis product in its final form to be sold to a customer at a retail store.

II.

"Food facility" means the same as Section 113788 of the California Health and Safety Code.

JJ.

"Holding" means storage of cannabis or cannabis products and includes activities performed incidental to storage of a cannabis product and activities performed as a practical necessity for the distribution of that cannabis product.

KK.

"Infusion" means a process by which cannabis, cannabinoids, cannabis concentrates, or manufactured cannabis are directly incorporated into a product formulation to produce a cannabis product.

LL.

"Limited-access area" means an area in which cannabis and cannabis products are stored or held and are only accessible to the owner, operator and cannabis facility authorized personnel.

MM.

"Local licensing agency" means a local public entity that licenses or permits any commercial cannabis activity, as defined in this Part.

NN.

"Lot" means a batch or a specifically identified portion of a batch.

OO.

"Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.

PP.

"Manufactured cannabis" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product.

QQ.

"Manufacturing" or "manufacturing operation" means all aspects of the extraction and/or infusion processes, including processing, preparing, holding, storing, packaging, or labeling of cannabis products. Manufacturing also includes any processing, preparing, holding, or storing of components and ingredients used in cannabis products.

RR.

"Manufacturing site" means the premises that produces, prepares, propagates, or compounds manufactured cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned, leased, or controlled and operated by a permittee for these activities.

SS.

"Manufacturer" means a person or entity state licensed and permitted to conduct 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 re-labels its container.

TT.

"Microbusiness" means a person or entity, licensed by the State of California, and licensed, permitted or authorized by applicable local laws to cultivate cannabis on an area less than 10,000 square feet and to act as a state licensed and/or permitted cannabis distributor, Level 1 manufacturer, as defined by Business and Professions Code Section 26130(a)(1), and/or retailer.

UU.

"Misbranding" means misbranded cannabis or cannabis products as defined in the California Business and Professions Code, Section 26121.

VV.

"Notice of closure" means a public notice that may be posted by the city health officer at a cannabis facility upon suspension or revocation of the facility's public health permit and that results in the immediate closure of the cannabis facility and the discontinuance of all operations of the cannabis facility, by order of the city health officer, because of violations of applicable state, and local statutes, orders, ordinances, quarantines, rules, regulations, or directives relating to the public health.

WW.

"Operator" means anyone who, as an employee, manager, owner or otherwise, is engaged in the cultivation, distribution, dispensing, manufacturing, sale or handling of cannabis or cannabis products at a permitted cannabis facility.

XX.

"Opaque exit package" means an opaque bag, box or similar container provided by the retailer, as distinct from the original packaging from the manufacturer, in which purchased cannabis or cannabis products are placed prior to departing the store.

YY.

"Owner" means any of the following:

All persons identified as an "owner" on any permit, license, or other authorization issued by a state agency or local government which authorizes the persons to establish and operate the cannabis facility.

Any person identified or required to be identified as an "owner" on an application filed with any state agency and any local government, wherein the application requests the privilege to operate the cannabis facility.

If no person under subsection 1 or 2, above, exists:

a.

A person with an aggregate ownership interest of 20 percent or more in the corporate entity, partnership, or other business entity applying for a permit or a permittee, unless the interest is solely a security, lien, or encumbrance.

b.

The chief executive officer of a nonprofit or other entity.

c.

A member of the board of directors of a nonprofit.

d.

An individual who will be participating in the direction, control, or management of the person applying for a permit. A member of the board of directors of a nonprofit.

e.

An individual who will be participating in the direction, control, or management of the person applying for a permit.

ZZ.

"Package" means any container or receptacle used for holding cannabis or cannabis products.

AAA.

"Permittee" means a person who has obtained a public health permit from the department to operate a cannabis facility.

BBB.

"Person" means 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.

CCC.

"Person in charge" means the individual present at a commercial cannabis facility who is responsible for the operation of the commercial cannabis facility.

DDD.

"Pest" means undesired insect, rodent, nematode, fungus, bird, vertebrate, invertebrate, weed, virus, bacteria, or other microorganism that is injurious to human health or environment.

EEE.

"Pesticide" includes substances commonly referred to as herbicides, fungicides, insecticides, and cloning agents. Pesticides include, but are not limited to:

Any substance or mixture of substances intended to prevent, destroy, control, repel, or mitigate any insect, rodent, snail, slug, fungus, weed, or any other form of plant or animal life or virus, fungus, bacteria or other microorganism which is normally considered to be a pest, except viruses on or in a living person or other living animal;

Any substance or mixture of substances intended to be used as a plant regulator, defoliant, or desiccant; and

Any spray adjuvant.

FFF.

"Premises" means the designated structure or structures and land specified in the application for a cannabis public health permit that is owned, leased, or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by a permittee.

GGG.

"Public health permit" means a written authorization to operate a cannabis facility, including, but not limited to, a cannabis cultivator, cannabis manufacturer, cannabis distributor, cannabis microbusiness, or cannabis retail facility, issued by the city's director of public health, without which permit said operation would be unlawful.

HHH.

"Retail area" means a building, room, or other area upon the permitted premises in which cannabis and cannabis products are sold or displayed.

III.

"Sell," "sale," and "to sell" means any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee to the permittee from whom the cannabis or cannabis product was purchased.

JJJ.

"State agency or state" means the state licensing entities responsible for creating regulation for commercial cannabis activity in California, including, but not limited to, the:

California Bureau of Cannabis Control;

California Department of Public Health;

California Department of Food and Agriculture.

KKK.

"Testing laboratory" means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is ISO/IEC 17025 accredited, or pending ISO/IEC 17025 accreditation, and licensed by the California Bureau of Cannabis Control.

LLL.

"Time/temperature control for cannabis or cannabis product safety or TCS" means a cannabis or cannabis product that requires time/temperature control for safety to limit pathogenic microorganism growth or toxin formation.

MMM.

"THC" means the compound tetrahydrocannabinol. "THC" refers specifically to delta 9-tetrahydrocannabinol.

NNN.

"Topical product" means a product intended for external use such as with cannabis-enriched lotions, balms and salves. A topical cannabis product is not considered a drug as defined by Section 109925 of the Health and Safety Code.

OOO.

"Track and trace system" means the universal identification certificate program for commercial cannabis activity. It is the seed-to-sale tracking system that tracks cannabis and cannabis product throughout the distribution chain, from either the sprouted seed or rooted cutting (or clone) until the cannabis or cannabis product is sold or delivered to a retail customer or is destroyed. It includes the program administered by the California Department of Food and Agriculture, pursuant to Section 26069 of the Business and Professions Code, as well as any track and trace system administered by a local jurisdiction.

PPP.

"Undesirable microorganisms" means those yeasts, molds, bacteria, viruses, protozoa, and/or microscopic parasites that are pathogens, that subject manufactured cannabis to decomposition, that indicate that manufactured cannabis is contaminated with filth, or that otherwise may cause manufactured cannabis to be adulterated.

QQQ.

"Unique identifier (UID)" means an alphanumeric code or designation used for reference to a specific plant on permitted premises and any cannabis or cannabis product derived or manufactured from that plant.

(Ord. No. 7326, § 2, 6-5-2018)

A.

Prior to the establishment or operation of any cannabis facility, the owner shall obtain a public health permit and other applicable permits and licenses from all state and local licensing agencies.

B.

Every owner desiring a public health permit to conduct commercial cannabis activities from a cannabis facility shall file an application with the department upon a form provided by the department, and at such time pay the required fee and penalty, if any.

C.

Upon receipt of an application for a public health permit for a cannabis facility with all pertinent data and the submission of the full permit application fee, the department shall review the application.

D.

All permits for a cannabis facility may be renewed annually. The public health permit, the permit application fee, and the annual permit fee are valid only for the person or entity, location, and type of sales or activity approved.

E.

Public health permits shall not be transferable upon change of ownership of the cannabis facility.

F.

Each commercial cannabis activity within a cannabis facility including, but not limited to, retail, distribution, manufacturing and cultivation shall be deemed a separate enterprise for purposes of this chapter and shall require a separate public health permit.

G.

All public health permits and licenses shall be posted in a conspicuous place at the cannabis facility.

(Ord. No. 7326, § 2, 6-5-2018)

A.

An application for renewal of any cannabis facility public health permit shall be submitted by the owner to the department prior to the expiration date of the current permit.

A cannabis facility owner shall complete and submit all required documents for a public health permit renewal to the department.

A permitted cannabis facility owner that does not obtain a renewed permit by end of the business day of the expiration date shall discontinue operation of the facility until a new public health permit is issued.

Any permit that has not been renewed by the annual renewal date will not be valid and shall be deemed inactive.

(Ord. No. 7326, § 2, 6-5-2018)

The department may reject an application or renewal application upon making any of the following findings:

A.

The applicant made one or more false or misleading statements or omissions on the public health permit application or during the application process.

B.

The applicant's business entity, if applicable, is not properly organized in compliance with applicable state and local laws and regulations.

C.

The applicant fails to meet the requirements of this chapter or of Chapter 8.11 of this Code.

D.

The applicant, or any of its officers, directors, owners, managers, or employees is under twenty-one (21) years of age.

E.

The applicant, or any of its officers, directors, owners, or managers, is a licensed physician making patient recommendations for medicinal cannabis.

F.

The applicant did not pay the city the required application and processing fees.

G.

The city's director of public health has determined good cause exists to reject the application.

(Ord. No. 7326, § 2, 6-5-2018)

A.

Each person proposing to construct or remodel a commercial cannabis facility shall submit to the department for review three complete, easily readable plans, drawn to scale and with specifications, and shall receive plan approval from the department before starting any new construction or remodeling of any cannabis facility.

A person proposing to construct, remodel, or change the public health permit classification of any cannabis facility shall submit a plan check fee which is in addition to any other public health permit fees that may be required for the operation of the cannabis facility.

Plan corrections and additional specifications may be required, if the department determines that such changes are necessary to assure compliance with the requirements of this chapter and state and local laws and regulations.

The plans shall be approved or rejected by the department within 20 working days after receipt of plans and fees. The applicant shall be notified of the decision.

B.

The department may develop commercial cannabis facility plan check guidelines to assure compliance with the state and local laws and regulations.

C.

Cannabis cultivation sites shall submit three complete, easily readable sets of plans drawn to scale and with specifications to the department for review and approval for cross-connections compliance as required by the California Code of Regulations Title 17, Chapter 14.20 of this Code, and any other applicable requirements promulgated by the Department of Agriculture.

(Ord. No. 7326, § 2, 6-5-2018)

Operating a commercial cannabis facility without a public health permit as required by this chapter is a violation and may be prosecuted as a misdemeanor subject to a fine not to exceed one thousand dollars ($1,000.00) or imprisonment in the city jail for a period of not more than twelve (12) months, or by both such fine and imprisonment. Each day of operation shall constitute a separate violation of this chapter. If required by state law or regulation, or court order to destroy the cannabis associated with the violation, a violator shall be responsible for the cost of the destruction of cannabis or cannabis products associated with the violation.

(Ord. No. 7326, § 2, 6-5-2018)

A.

Conditions requiring additional reinspections due to a cannabis facility's noncompliance with applicable state and local laws and regulations, will incur additional reinspection fees in effect at the time of reinspection. A reinspection fee shall be due and payable whenever:

The department has given written notice of a public health code violation or violations to the owner, operator, or person in charge of a cannabis facility, and the notice contains a reinspection date by which the violation or violations must be corrected;

The violation or violations have not been corrected by the reinspection date on the notice of violation or official inspection document; and

An additional reinspection by the department is necessary to determine whether the violation or violations have been corrected.

(Ord. No. 7326, § 2, 6-5-2018)

The city council may by resolution establish fees for the administration of this chapter. Fees shall be sufficient to cover the actual expenses of administering and enforcing this chapter.

(Ord. No. 7326, § 2, 6-5-2018)

The reinspection fee shall be collected by the department. The department may add any unpaid balance to the amount due for any subsequent public health permit renewal or permit application by the owner of such cannabis facility or refer any

delinquent fees to the finance department for collection. The total amount due shall be the cannabis facility permit fee for such business.

(Ord. No. 7326, § 2, 6-5-2018)