Point Arena Municipal Code Ch. 5.20 Cannabis

(1) The city council finds that the local regulation of cannabis cultivation, manufacturing, distribution, as well as cannabis retailers is necessary for the preservation and protection of the public health, safety, and welfare for the city and its community. The city council's regulation of such activities is within the authority conferred upon the city council by state law.

(2) No person shall have any entitlement or vested right under this chapter in a cannabis business license. The license requirements in this chapter shall be in addition to, and not in lieu of, licensing or permitting requirements imposed by any other federal, state or local law.

(3) The city council finds that these amendments: (a) express its intent to regulate the cultivation, manufacturing, testing, sales and distribution of both medical and adult use of cannabis within the city and to administer a licensing program; and (b) exercises its police power to enact and enforce regulations for the public benefit, safety, and welfare of the city and its community.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

For purposes of this chapter, the following definitions shall apply:

"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 cannabis as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. "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 Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code.

"Caregiver" or "primary caregiver"

has the same meaning as that term is defined in Section 11362.7 of the Health and Safety Code.

"Commercial cannabis activity"

includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of cannabis or a cannabis product, except as set forth in Section 19319, related to qualifying patients and primary caregivers.

"Cultivation"

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

"Delivery"

means the commercial transfer of cannabis or cannabis products to a customer and includes the use by a retailer of any technology platform owned and controlled by the retailer that enables qualified patients or primary caregivers to arrange for or facilitate the commercial transfer by a licensed cannabis retailer of cannabis or cannabis products.

"Dispensary."

See "Retailer."

"Dispensing"

means any activity involving the retail sale of cannabis or cannabis products from a retailer.

"Distribution"

means the procurement, sale, and transport of cannabis and cannabis products between entities licensed pursuant to this chapter.

"Distributor"

means a person licensed under this chapter to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis products from a licensed manufacturer, for sale to a licensed retailer.

"Greenhouse,"

for the purposes of this chapter, means an enclosed and securable structure that relies on natural light for cultivation of cannabis.

"Home occupation"

may include the manufacture of cannabis products and be licensed pursuant to Section 5.20.080 and permitted as an accessory use to a dwelling subject to the conditions provided for in Title 18 of the Point Arena Municipal Code Section 18.25.060(1) through (11). The manufacture shall comply with the provisions of the zone in which the occupation is proposed and is subject to a coastal development permit where the use constitutes the definition of "development" as defined by Chapter 18, Appendix A, Supplemental definitions, is required.

"Indoor"

means within a fully enclosed and secure structure that complies with the California Building Code adopted by the city of Point Arena and enforced by the Mendocino County planning and building department, that has a complete roof, enclosure supported by connecting walls attached to a foundation to which a floor is securely fashioned and uses artificial light for cultivation of cannabis. The roof and walls may not be clear or translucent.

"Licensee"

shall mean a person issued a license under this chapter of the Point Arena Municipal Code to engage in commercial cannabis activity.

"Manufacturer"

means any person or enterprise that makes or packages a cannabis product that is not simply the leaf or flower of a cannabis plant. This includes, but is not limited to, edibles, oils, topicals, tinctures, concentrates and vape cartridges. The process may include production, preparation, or compounding cannabis or cannabis products directly or indirectly.

"Manufacturing"

means any method used to prepare cannabis or its by-products into a product for commercial retail and/or wholesale.

Mixed light.

Mixed light cultivation occurs within greenhouses or hoop houses and uses a combination of natural and supplemental artificial lighting. Cultivation in greenhouses, hoop houses or similar structures will be considered mixed light cultivation even if no artificial light is used.

"Nursery"

means a premises that produces only: clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.

"Outdoors"

means any location that is not "indoors" within a fully enclosed and secure structure as defined herein.

"Owner"

includes all persons or entities, corporate, partnership or otherwise, having an ownership interest in the property or facility, site or structures if the owner is an entity. "Owner" includes within the entity each person participating in the direction, control, or management of, or having a financial interest in, the proposed facility. If the applicant is a publicly traded company, "owner" means the chief executive officer or any person or entity with an aggregate ownership interest of five percent or more.

"Retailer"

means a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers, pursuant to express authorization by local ordinance, cannabis and cannabis products as part of a retail sale. Both medical and recreational cannabis may be sold by a retailer.

"Testing facility"

means a facility, entity, or laboratory that offers or performs tests of cannabis or cannabis products that is accredited by an accrediting body and registered with the State Department of Public Health.

"Transport"

means the transfer of cannabis or cannabis products from the permitted business location of one licensee to the permitted business location of another licensee for purposes of conducting commercial cannabis activities authorized by this chapter.

"Transporter"

means a person issued a state license by the Bureau of Cannabis Control to transport cannabis or cannabis products in an amount above a threshold determined by the bureau between facilities that have been issued a state license pursuant to this chapter.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

All commercial cannabis businesses operating within the city of Point Arena must be licensed by the city prior to operation.

Cannabis business licenses are not transferable without the permission of the city.

Failure to provide 30-day notice of the transfer of a cannabis business or facility or change in the principals of the corporation will result in the revocation of the license.

Types of Licenses. The city will provide a local license for the following state license classifications and prohibit other classifications from doing business within the city as follows. Please note that separate licenses will be required for the operation of medical or adult use cannabis businesses. The city council will revise this chart and permitted license types by resolution as necessary.

(Ord. 232 § 2, 2017.)

Each district that allows commercial cannabis cultivation is subject to all requirements of state law for cultivation as well as the licenses prescribed herein. Outdoor cultivation is limited to the following zoning districts: (1) agriculture; (2) residential agriculture; and (3) industrial zoning districts.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

No area utilized for the outdoor cultivation of cannabis in any zoning district, shall be greater than 5,000 square feet.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

All outdoor cultivation of cannabis within the city limits must be licensed and comply with the following regulations:

(1) Applications for outdoor cannabis cultivation licenses shall be filed with the city manager or designee, and include payment of a fee related to the processing, inspection, and other administrative costs of the license, in an amount to be set by separate resolution of the city council.

(2) If at any time minors will be present at the location then the cannabis will be secured from their access.

(3) Neither the owner, the operator, nor their employees shall have been convicted of a felony, except felonies related to the cultivation, sales, transportation, or distribution of cannabis that occurred prior to passage of Proposition 215.

(4) No direct sales or distribution to consumers are allowed at licensed cultivation sites.

(5) All licensees shall keep accurate and updated records pertaining to their inventory, and comply with state regulations regarding unique identifiers by inventory tracking software or other means approved under state law.

(6) All applicants shall sign an agreement allowing random inspection of the premises and records by the licensing administrator or designee.

(7) Odors shall be contained on the property at which the cannabis cultivation is located. If the city manager receives any odor complaints, licensees must work with the city and/or building officials to correct odor concerns. Unresolved or repeated odor complaints may be the basis for suspension or revocation of license or denial of renewal.

(8) All outdoor cannabis cultivation license applications shall include the following information:

(a) The name, present address, and telephone number for the applicant and all individuals involved in the outdoor cultivation activities, including owners, managers, and employees.

(b) Written proof that the applicant and all other individuals involved in the outdoor cultivation activities are over the age of 21 years.

(c) The address to which notice of action on the application and all other notices are to be mailed.

(d) The location by address and parcel map.

(e) Written permission of the property owner for the outdoor cultivation of cannabis on the property.

(f) Identification of the water source to be used for cultivation and registration with the North Coast Regional Water Quality and Control Board.

(g) A hazardous waste disposal plan and agreement that there shall be no discharge to the City's sewer system or septic system.

(h) Signed agreement with the city that requires:

(i) Only commercially registered pesticides will be used.

(ii) All pesticide use is registered with the County Agriculture Commissioner.

(iii) Identification of any and all pesticides to be used in the cannabis cultivation will be furnished to the city on demand.

(iv) Compliance with State and Federal Materials Safety Data Sheets program requirements.

(v) Use of a qualified and licensed applicator for any application of a department of pesticide regulation-controlled pesticide.

(i) Outdoor cultivation premises must be at least 200 feet from schools.

(j) Authorization for the city, its agents and employees to seek verification of the information contained in the application.

(k) Evidence and implementation of sufficient security measures to deter and prevent unauthorized entrance and theft of cannabis at the cultivation site. These measures may include, but are not limited to, establishing limited access areas accessible only to authorized personnel; storage of all cannabis plants, seeds and products in a secured and locked room; secured entry and exit accessible only to authorized personnel.

(l) A cultivation license shall expire in one year following issuance. It may be renewed for additional oneyear periods unless it has been suspended or revoked. A license renewal application and renewal fee must be submitted at least 45 days prior to expiration.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

Indoor cannabis cultivation is subject to the licenses prescribed herein, limited to the industrial, residential agricultural, agricultural exclusive, commercial core and highway commercial zoning districts.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

No structure utilized exclusively for the indoor cultivation of cannabis in any zoning district, shall be greater than 5,000 square feet measured from wall to wall. No residential structures in any City zoning district shall be converted to indoor cannabis cultivation facilities except as provided for in this chapter. The following conditions apply to a residence used for the indoor cultivation of cannabis:

(1) The residential structure must be legally inhabited and comply with all state and local building codes.

(2) The individual cultivating cannabis must reside in the structure.

(3) The allowable cultivation area within the residence shall total no more than 100 square feet.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

All indoor cultivation of cannabis within the city limits must comply with all state regulations as well as the following local licensing requirements:

(1) If at any time minors will be present at the location, then the cannabis will be secured from access.

(2) Odors shall be contained on the property at which the cannabis cultivation is located. If the city manager receives any odor complaints, licensees must work with the city and/or building officials to correct odor concerns. Unresolved or repeated odor complaints may be the basis for suspension or revocation of license or denial of renewal pursuant to the city.

(3) Applicant shall keep accurate and updated records regarding inventory, distribution and sales pursuant to state law.

(4) Agree to allow random inspection of the premises and records by the licensing administrator or designee.

(5) Neither the owner, the operator, nor their employees shall have been convicted of a felony, except felonies related to the cultivation, sales, transportation, or distribution of cannabis that occurred prior to passage of Proposition 215.

(6) Applications for indoor cannabis cultivation licenses shall be filed with the city manager or designee, and include payment of a fee related to the processing, inspection, and other administrative costs of the license, in an amount to be set by separate resolution of the city council.

(7) All indoor cannabis cultivation license applications shall include the following information:

(a) The identity of the applicant and all individuals involved in the indoor cultivation activities, including owners, managers and employees.

(b) Written proof that the applicant and all other individuals involved in the indoor cultivation activities are over the age of 21 years.

(c) The address to which notice of action on the application and all other notices are to be mailed.

(d) The location by address and parcel map of the structure to be used.

(e) Written permission of the property owner for the indoor cultivation of cannabis on the property.

(f) Evidence that the structure to be used complies with all California state and local building codes, including electrical, mechanical, plumbing, sprinkler systems, etc. This may be demonstrated by submission of final building permits for the structure intended to be used, or by agreement to a site inspection to establish compliance.

(g) Identification of the water source to be used for cultivation and registration with the North Coast Regional Water Quality and Control Board.

(h) A hazardous waste disposal plan and agreement that there shall be no discharge to the city's sewer system or a private septic system. Submission of hazardous waste disposal records to the city manager is required on a quarterly basis.

(i) Signed agreement with the city that requires:

(i) Only commercially registered pesticides will be used.

(ii) All pesticide use is registered with the county agriculture commissioner.

(iii) Identification of any and all pesticides to be used in the cannabis cultivation will be furnished to the city on demand.

(iv) Compliance with state and federal Materials Safety Data Sheets program requirements.

(v) Use of a qualified and licensed applicator for any application of a DPR-controlled pesticide.

(j) Indoor cultivation premises must be at least 200 feet from school facilities.

(k) Authorization for the city, its agents, and employees to seek verification of the information contained in the application.

(l) No direct sales or distribution to consumers are allowed at licensed cultivation sites.

(m) Evidence and implementation of sufficient security measures to deter and prevent unauthorized entrance and theft of cannabis at the cultivation site. These measures may include, but are not limited to, establishing limited access areas accessible only to authorized personnel; securely locked entrances and exits accessible only to authorized personnel; storage of all cannabis plants, seeds and products in a secured and locked room.

(n) All cultivation licenses shall expire in one year following issuance. It may be renewed for additional one-year periods unless it has been suspended or revoked. A license renewal application and renewal fee must be submitted at least 45 days prior to expiration.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

(1) Mixed light cultivation of cannabis within the city limits must comply with all State regulations as well as city's licensing requirements for indoor cultivation.

(2) Mixed light cannabis cultivation is subject to the licenses prescribed herein, limited to the industrial, residential agricultural, agricultural exclusive and commercial zoning districts.

(3) Applicants applying for cultivation licensing utilizing supplemental artificial lighting shall submit information as part of their application specific materials or product information that assures the licensing authority that there will be no light emission outside of the cultivation structure.

(4) Mixed light cultivation facility licenses will be revoked due to operations that allow light emissions outside of cultivation structure.

(5) Mixed light cultivation is subject to all the business license location application requirements and location restrictions as indoor cultivation.

(Ord. 232 § 2, 2017.)

(1) Operations of a cannabis nursery within the city limits must comply with all state regulations as well as city's licensing requirements for indoor, outdoor and mixed light cultivation.

(2) Cannabis nurseries are subject to the licenses prescribed herein, limited to the industrial, residential agricultural, and agricultural exclusive zoning districts.

(3) Applicants applying for a nursery license utilizing supplemental artificial lighting shall submit information as part of their application specific materials or product information that assures the licensing authority that there will be no light emission outside of the cultivation structure.

(4) Cannabis nurseries utilizing mixed light are subject to license revocation due to operations that allow light emissions outside of the cultivation structure.

(Ord. 232 § 2, 2017.)

The city of Point Arena will allow up to three cannabis retailers within the city limits. No applicant shall own more than one cannabis retailer within the city. Cannabis retailers shall be considered a principle permitted use in the city's core commercial and highway commercial zoning districts subject to licensing approval by the city manager or designee. Retailers must comply with all state regulations regarding retail cannabis businesses as well as the following local operating standards. Cannabis retailers may sell both medical and adult use cannabis which must be labeled as such.

Applications for cannabis retail licenses shall be filed with the city manager or designee, and include payment of a fee related to the processing, inspection, and other administrative costs of the license, in an amount to be set by separate resolution of the city council.

(1) All cannabis retailers must be located within the city's core and highway commercial zoning districts.

(2) No cannabis retailer shall be located closer than 200 feet to a school facility.

(3) No person under the age of 21 shall be employed by or allowed to volunteer at the cannabis retailer.

(4) Evidence of property owner permission to operate the retailer must be presented with the application for a license.

(5) Neither the owner, the operator, nor their employees shall have been convicted of a felony, except felonies related to the cultivation, sales, transportation, or distribution of cannabis.

(6) Cannabis related paraphernalia may be sold by the retailer.

(7) There shall be no window or other outdoor displays related to the sale or use of cannabis or related paraphernalia.

(8) All signage related to the cannabis retailer shall be submitted for approval to the city manager or designee.

(9) The city must be notified and approve of any change of ownership or change of management or staffing of the cannabis retailer.

(10) Cannabis retailer hours of operation shall be limited to the hours of 9:00 a.m. to 10:00 p.m. and may operate seven days a week.

(11) The cannabis retailer shall keep all qualified patient records on site. These records shall be considered confidential and not subject to disclosure under the California Public Records Act, except as necessary for the city's enforcement officer inspection.

(12) The retailer shall keep accurate and updated records of the source of all cannabis sold on the premises, including the license number and address and name of the individual(s) cultivating the medical or adult use cannabis. The retailer must comply with state law regarding track and trace.

(13) Agree to allow random inspection of the premises by the licensing administrator or designee.

(14) Evidence and implementation of sufficient security measures to deter and prevent unauthorized entrance and theft of cannabis at the retailer. These measures may include, but are not limited to, establishing limited access areas accessible only to authorized retailer personnel; storage of all cannabis products in a secured and locked room.

(15) No cannabis retailer manager, employee or member shall cause or permit the smoking or inhalation of cannabis outside the retailer including the parking lot and adjacent sidewalk. Eating or otherwise ingesting cannabis within the retailer is permitted. Vaporizing and ingesting cannabis or cannabis products on a licensed retailer's premises is allowed if all of the following conditions are met:

(a) Access to the area where consumption is allowed is restricted to persons of 21 years or older.

(b) Cannabis consumption is not visible from any public place or non-age restricted area.

(c) Sale or consumption of alcohol is not allowed on the premises.

(d) A declared time period limited to three hours a day determined by the business owners in a plan submitted to the city manager.

(16) A retail license shall expire in one year following issuance. It may be renewed for additional oneyear periods unless it has been suspended or revoked. A license renewal application, renewal fee must be submitted at least 45 days prior to expiration.

(17) Retailers may deliver and transport cannabis identified as such to clients without a separate license.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017; Ord. 233 § 2, 2018.)

(1) Home Occupation. The manufacture of cannabis products may constitute a home occupation, as defined herein, if it complies with the Point Arena Municipal Code Section 18.25.060(1) through (11), subject to state and local building codes and the following provisions:

(a) Only "Type 6 - Manufacturer 1; nonvolatile" will be considered for licensing as a home occupation in the agricultural exclusive, residential agriculture, urban residential, and suburban residential zoning districts.

(b) The structure must be legally inhabited and comply with all state and local building codes.

(c) The following conditions apply:

(i) The resident of the dwelling shall be the licensee.

(ii) Does not serve clients or customers on-site or allow on-site retail sales.

(iii) Does not include on-site advertisements or displays.

(iv) Does not generate additional traffic or parking beyond what normally occurs in the applicable zoning district.

(v) No materials or mechanical equipment are used which will be detrimental to the residential use of the property or adjoining residences because of vibration, noise, dust, smoke, odor, interference with radio or television reception, or other factors.

(vi) Does not include the outside storage of materials, equipment or products.

(vii) Complies with federal or state guidelines, rules and regulations. Quarterly submission of hazardous waste disposal records to the city is required.

(viii) If complaints are received that the activity unreasonably interferes with other uses permitted in the zone in which the property is located, per the discretion of the city manager a land use or conditional use permit may be required.

(ix) If at any time minors will be present at the location then the cannabis will be secured from their access.

(2) General Requirements for all Manufacturing Premises.

(a) No retail sales are allowed at cannabis manufacturing business locations.

(b) No cannabis shall be smoked, ingested or otherwise consumed at the project site, including accessory buildings.

(c) The building entrance shall be clearly and legibly posted with a notice indicating persons under the age of 21 shall not be admitted.

(d) No cannabis shall be cultivated or grown as part of a manufacturing business license.

(e) Odors shall be contained on the property at which the manufacture of cannabis products is located. If the city manager receives any odor complaints, licensees must work with the city and/or building officials to correct odor concerns. Unresolved or repeated odor complaints may be the basis for suspension or revocation of license or denial of renewal pursuant to the city's code enforcement ordinance.

(3) Applications to Manufacture Cannabis Products. Manufacturers of cannabis products within the city must comply with all California Department of Public Health regulations regarding the manufacture of cannabis products. The city will require a copy of all state manufacturing licenses upon approval.

License Type 6 - Manufacturer 1; nonvolatile will only be permitted in highway commercial and industrial zones, unless permitted as a home occupation.

License Type 7 - Manufacturer 2; volatile will only be permitted in an industrial zone.

Applications for a license to manufacture cannabis products within the city shall be filed with the city manager or designee, and include payment of a fee related to the processing, inspection, and other administrative costs of the licensing, in an amount to be set by separate resolution of the city council. No license shall be issued prior to obtaining a conditional use permit and/or coastal development permit, when required by the zoning district. All license applications must comply with state law regarding the manufacture of cannabis products and shall include the following information:

(a) The name, present address, and telephone number for the applicant and all individuals involved in the business of manufacturing medical or adult use cannabis products, including owners, managers, and employees.

(b) Written proof that the applicant and all other individuals involved in the activities are over the age of 21 years.

(i) The address to which notice of action on the application and all other notices are to be mailed.

(ii) The location by address of the structure to be used and the size, design and operating characteristics of the site.

(iii) Written permission by the property owner for the manufacturing of cannabis products on the property.

(iv) Neither the owner, the operator, nor their employees shall have been convicted of a felony, except felonies related to the cultivation, sales, transportation, or distribution of cannabis prior to the passage of Proposition 215.

(v) Evidence that the facilities comply with all California state and local building codes and fire codes including electrical, mechanical, plumbing, etc. This may be demonstrated by submission of final building permits for the structure intended to be used, or by agreement to a site inspection by the county building inspection to establish compliance.

(vi) Evidence that the facilities comply with all applicable and relevant local and state public health and safety regulations and inspections, and state requirements, certification, or licenses necessary for the manufacturing operations related to cannabis products.

(vii) Certification from a licensed engineer that the system utilized is commercially manufactured, safe for its intended use, and built to codes of recognized and generally accepted good engineering practices, including but not limited to, the American Society of Mechanical Engineers (ASME), the American National Standards Institute (ANSI), Underwriters Laboratories (UL).

(viii) Submission of written procedures for inventory control, quality control, and transportation.

(ix) Certification by local fire code official of volatile solvent, CO2 and ethanol extractions.

(x) Identification of the water source to be used in the manufacture of cannabis products and evidence of registration and compliance with the North Coast Regional Water Quality and Control Board and regulations.

(xi) A hazardous waste disposal plan and agreement not to discharge into the city's sewer treatment or septic facilities. Quarterly submission to the city of hazardous disposal records is required.

(xii) Compliance with state and federal Material Safety Data Sheets program requirements.

(xiii) Maintenance of written evidence documenting the source, by name and license number of all cannabis to be included in the products manufactured at the facility and evidence of compliance with state tracking laws.

(xiv) Agreement to permit random inspection of all premises and records by the city manager or designee.

(xv) Authorization for the city, its agents, and employees to seek verification of the information contained in the application.

(xvi) Evidence and implementation of sufficient security measures to deter and prevent unauthorized entrance and theft of cannabis and cannabis products at the premises. These measures may include, but are not limited to, establishing limited access areas accessible only to authorized manufacturing personnel; storage of all cannabis products in a secured and locked room.

(xvii) A manufacturing business license shall expire in one year following issuance. It may be renewed for an additional one-year period unless it has been suspended or revoked. A license renewal application and renewal fee must be submitted at least 45 days prior to expiration.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

Cannabis testing facilities are limited to the city's commercial core, industrial and highway commercial zoning districts. Testing facilities shall be subject to the following local licensing requirements. All cannabis and related products are required to be tested by a licensed testing laboratory, prior to retail sale or dispensing and shall comply with all state law requirements for Type 8 license which are incorporated herein. Testing shall include, but is not limited to, potency, pesticides, mold, and other contaminants in compliance with state regulations.

(1) Applications for the operation of a cannabis testing facility, laboratory or premise shall be filed with the city manager or designee, and include payment of a fee related to the processing, inspection, and other administrative costs of the licensing, in an amount to be set by separate resolution of the city council. All license applications shall include the following information:

(a) The name, present address, and telephone number for the applicant and all individuals involved in the business of testing cannabis products, including owners, managers and employees.

(b) Written proof that the applicant and all other individuals involved in the activities are over the age of 21 years.

(c) The address to which notice of action on the application and all other notices are to be mailed.

(d) Neither the owner, the operator, nor their employees shall have been convicted of a felony, except felonies related to the cultivation, sales, transportation, or distribution of cannabis.

(e) The location by address of the facility to be used.

(f) Written permission of the property owner allowing a testing facility for cannabis and related products on the property.

(g) Evidence that the facilities comply with all California state and local building codes, including electrical, mechanical, plumbing, etc. This may be demonstrated by submission of final building permits for the structure intended to be used, or by agreement to a site inspection to establish compliance.

(h) Evidence that the facilities comply with all applicable and relevant local and state public health and safety regulations and inspections and possess all state licenses, certificates, or registrations necessary for the operation of a cannabis testing facility, laboratory, or site.

(i) Identification of the water source to be used for the testing of cannabis products and evidence of registration with the North Coast Regional Water Quality and Control Board.

(j) A hazardous waste proposal plan and agreement not to discharge into the City's sewer treatment or septic system. Quarterly submission to the city of hazardous disposal records are required.

(k) Compliance with state and federal Material Safety Data Sheets program requirements.

(l) Maintenance of written records documenting the source and license number of all cannabis and related products submitted for testing to the facilities.

(m) Authorization for the city's enforcement officer to seek verification of the information contained in the application.

(n) All applicants shall sign an agreement allowing random inspection of the premises and records by the licensing administrator or designee.

(o) A cannabis testing business shall not hold any other licenses.

(p) Licensee shall keep accurate records of all cannabis testing activities for a minimum of seven years.

(q) Evidence and implementation of sufficient security measures to deter and prevent unauthorized entrance and theft of cannabis at the testing facility. These measures may include, but are not limited to, establishing limited access areas accessible only to authorized personnel; storage of all cannabis products in a secured and locked room.

(r) Odors shall be contained on the property at which the cannabis testing is located. If the city manager receives any odor complaints, licensees must work with the city and/or building officials to correct odor concerns. Unresolved or repeated odor complaints may be the basis for suspension or revocation of license or denial of renewal.

(s) A testing license shall expire in one year following issuance. It may be renewed for additional one-year periods unless it has been suspended or revoked. A license renewal application and renewal fee must be submitted at least 45 days prior to expiration.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

(1) Applications for licenses to distribute cannabis within the city of Point Arena shall be filed with the city manager or designee, and include payment of a fee related to the processing, inspection, and other administrative costs of the licensing, in an amount to be set by separate resolution of the city council. The distributor shall comply with the state's Type 11 license which is incorporated herein.

(2) The city's license application shall include the following information:

(a) The name, present address, and telephone number for the applicant and all individuals involved in the business of transporting or distributing cannabis or cannabis products, including owners, managers, and employees.

(b) Written proof that the applicant and all other individuals involved in the activities are over the age of 21 years.

(c) The address to which notice of action on the application and all other notices are to be mailed.

(d) Authorization for the city, its agents, and employees to seek verification of the information contained in the application.

(e) Identification of vehicles to be used in the distribution and transport activities by type, year, and vehicle identification number.

(f) Copy of a current California driver's license and evidence of driving record related to citations for all drivers.

(g) Evidence of appropriate commercial automobile insurance and licenses as required by State regulations.

(h) Proof that neither the owner, the operator, nor their employees shall have been convicted of a felony, except felonies related to the cultivation, sales, transportation, or distribution of cannabis.

(i) Evidence of appropriate state license for distribution and transportation of cannabis and cannabis products.

(j) A distributor license shall expire in one year following issuance. It may be renewed for additional one-year periods unless it has been suspended or revoked. A license renewal application and renewal fee must be submitted at least 45 days prior to expiration.

(k) All other requirements of a cannabis retailer license.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

The city's costs to review and enforce the city's licensing requirements shall be borne by each applicant for a cannabis business license. Those fees may be set from time to time by resolution of the city council.

The applicant shall provide proof of having obtained a surety bond, payable to the city, in a form approved by the city attorney, in an amount set by city council resolution to ensure payment of the costs incurred for the destruction of cannabis goods necessitated by a violation of this chapter. All bonds required under this provision must be issued by a corporate surety licensed to transact surety business in the state of California.

All cannabis licenses shall be renewed annually in compliance with the licensing procedures identified in this ordinance. As part of the renewal process each existing licensed cannabis business is required to submit an annual operations report on the form supplied by the city and State license classifications.

From time to time the city may require an independent audit of each licensed cannabis business within the city limits.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

Any violation of this chapter, a cannabis business license, applicable state or local law, or orders issued hereunder is hereby declared a public nuisance and shall be subject to abatement in accordance with Chapter 8.05, Nuisance Abatement.

(Ord. 232 § 2, 2017.)

(1) General. When the city manager or designee finds that a licensee has violated or continues to violate any provision in this chapter, the license or applicable state or local law, the city manager or designee may suspend or revoke the licensee, and may impose administrative penalties in accordance with Government Code Section 36901 in an amount which shall not exceed $1,000 per day per incident. In determining the amount of the civil penalty, the city manager may take into consideration all relevant circumstances, including, but not limited to, the extent of harm caused by the violation, the economic benefit derived through any non-compliance, the nature and persistence of the violation, the length of time over which the violation occurred and corrective action, if any, attempted or taken by the licensee.

(2) License Suspension. The city manager may immediately, without prior notice or hearing, suspend a commercial cannabis activity license after informal notice to the licensee whenever such suspension is necessary to stop an actual or threatened activity which reasonably appears to violate any applicable city law, regulation, rule or order. Any licensee notified of a suspension of its license shall immediately stop all commercial cannabis activity.

(3) License Revocation. The city manager may revoke a commercial cannabis activity license for good cause, including, but not limited to, the following reasons:

(a) Failure to notify the city of changes to the commercial cannabis activity license prior to the change in the activity;

(b) Misrepresentation or failure to fully disclose all relevant facts in the commercial cannabis activity license application;

(c) Falsification of self-monitoring reports;

(d) Refusing to allow the city timely access to the facility premises and records;

(e) Failure to pay fees, charges or fines;

(f) Failure to meet compliance schedules;

(g) Failure to provide 30-day notice of the transfer of a cannabis business or facility or change in the principals of the corporation;

(h) Violation of any license condition, term, or any terms of this chapter or any other applicable state or local law; or

(i) Failure to maintain and update the inventory tracking system account.

(4) Reconsideration. Any licensee affected by any administrative enforcement action made by the city manager may file with the city manager a written request for reconsideration within 10 days of such decision, action, or determination, setting forth in detail the facts supporting the licensee's request for reconsideration. The city manager shall schedule a meeting with the licensee to consider the reconsideration request, and shall make a final determination within 15 days after the meeting. The city manager's decision, action, or determination shall remain in effect during such period of reconsideration.

(5) City Council Appeal. The city manager's reconsideration determination may be appealed by the affected licensee to the city council by submitting a written request for appeal to the city manager no later than 10 days after notification of the city manager's reconsideration decision. The written appeal shall be heard by the city council within 60 days from the date of filing. The city manager's decision, action, or determination shall remain in effect during such period of appeal.

(6) Automatic License Termination. Commercial cannabis activity licenses shall be voidable upon non-use, upon cessation of the licensed commercial cannabis activity, or upon such other cause as set forth in regulations adopted by resolution of the city council.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

(1) Injunctive Relief—Penalties. When the city manager finds that a commercial cannabis activity business owner has violated any license condition, the provisions of this chapter, or any other applicable city or state law, the city through its city attorney may petition the Mendocino County Superior Court for the issuance of a preliminary or permanent injunction, or both, as may be appropriate in restraining the continuance of the activity. The city may also seek such other action as is appropriate for legal and/or equitable relief. A petition for injunctive relief shall not be a bar against, or a prerequisite for, taking any other action against an owner.

(2) Criminal Prosecution. Any violation of this chapter may be prosecuted by the city attorney and charged in the discretion of the city attorney as either a misdemeanor or an infraction.

(Ord. 232 § 2, 2017.)

The remedies in this chapter are not exclusive. The city may take any, all, or any combination of these actions against a noncompliant licensee.

(Ord. 232 § 2, 2017.)

The city council finds that the adoption of the ordinance codified in this chapter is exempt from the California Environmental Quality Act ("CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines (Title 14, Chapter 3 of the California Code of Regulations) because there is no possibility that the activity may have a significant impact on the environment.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)

If any section, subsection, sentence, clause, phrase, or word of this chapter is for any reason held to be unconstitutional, unlawful, or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this chapter. The city council of Point Arena hereby declares that it would have passed and adopted the ordinance codified in this chapter and each and all of the provisions irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful, or otherwise invalid.

(Ord. 226 § 2, 2016; Ord. 232 § 2, 2017.)