San Rafael Municipal Code Ch. 10.96 Cannabis Business

Footnotes:

--- (4) ---

Editor's note— Ord. No. 1968, div. 2, adopted March 18, 2019, amended Ch. 10.96 and in so doing changed the title from medical cannabis business to read as set out herein.

It is the purpose and intent of this chapter to provide for the orderly regulation of the commercial cannabis industry within the City of San Rafael with the intent of encouraging economic growth and job creation while protecting the public health, safety and welfare of the residents of the city. The city council may adopt by resolution any regulations or policies that will further the purpose of this chapter, and that do not conflict with the provisions herein.

It is also the purpose and intent of this chapter to prohibit all commercial cannabis activity not authorized under this chapter within the city.

All definitions, authority, scope, responsibilities, requirements, standards, conditions, exemptions, procedures and penalties described within state law are adopted and incorporated.

(Ord. No. 1949, div. 2, 12-4-2017; Ord. No. 1968, div. 2, 3-18-2019)

The economic development director or their designee shall administer and enforce the provisions of this chapter, applicable state law, and the rules and regulations promulgated by the state department of public health's manufactured cannabis safety branch and the department of consumer affairs bureau of cannabis control, or other state designated regulatory authority. This chapter and the regulations contained herein apply to the entire city.

(Ord. No. 1949, div. 2, 12-4-2017; Ord. No. 1968, div. 2, 3-18-2019)

The San Rafael City Council finds:

1. Since, 1996, cannabis for personal medicinal purposes, when recommended by a physician, has been legal in the State of California under the Compassionate Use Act (Proposition 215); and

2. In 2016, California voters enacted Proposition 64, intended to create a comprehensive system to legalize, control, and regulate the cultivation, processing, manufacture, distribution, testing and sale of nonmedicinal cannabis, including cannabis products, for use by adults twenty-one (21) years and older, and to tax the cultivation and retail sale of cannabis for nonmedicinal use; and

3. In 2017, the governor signed a bill to combine the regulation of medical and nonmedical cannabis under one (1) umbrella licensing and regulatory system, entitled the "Medical and Adult-use Cannabis Regulation and Safety Act" (MAUCRSA); and

4. MAUCRSA does not limit the authority of a local governing body to adopt and enforce local ordinances regulating businesses licensed under MAUCRSA or to completely prohibit such businesses with the local jurisdiction to the full extent authorized to a local agency by MAUCRSA; and

5. The use, cultivation, distribution, production, possession and transportation of cannabis remains illegal under federal law, and cannabis remains classified as a "controlled substance" by both California and federal law; and

6. The city council intends to limit commercial cannabis activity within the city limits; and

7. The city council intends to regulate the use, acquisition, cultivation, production, and distribution of commercial cannabis activity in a manner that is consistent with the California Constitution and MAUCRSA. The regulations are intended to apply to all cannabis operations in the city by any cannabis business licensed under state law. Commercial cannabis activity can have an impact on health, safety, and community resources, and this chapter is intended to license cannabis businesses where it will have minimal impact; and

8. To the extent that cannabis businesses are registered and authorized by the State of California to operate in the corporate limits of the city, the city council desires to provide for their licensing and regulation to protect the public health, safety and general welfare of the citizens of the city; and

9. This chapter is to be construed to protect the public over cannabis business interests. Operation of a cannabis business is a revocable privilege and not a right in the city. There is no property right for an individual or business to have a cannabis business in the city; and

10. Cannabis is a heavily regulated industry in the city, and the city has a zero-tolerance policy of violations to this chapter.

(Ord. No. 1949, div. 2, 12-4-2017; Ord. No. 1968, div. 2, 3-18-2019)

For the purpose of this chapter, unless the context clearly requires different meaning, the words, terms, and phrases set forth in this section shall have the meanings given to them in this section:

1. "Act" means the Medicinal and Adult-use Cannabis Regulation and Safety Act (MAUCRSA).

2. "Applicant" means the owner of the applicant entity applying for a city and state license.

3. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, 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" does not include the mature stalks of the plant, fiber produced from 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 purposes of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code.

4. "Cannabis business" means any business that engages in commercial cannabis activities.

5. "Cannabis distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities licensed pursuant to state regulations.

6. "Cannabis processing" means any method used to prepare cannabis or its byproducts for commercial sale, including, but not limited to: drying, cleaning, curing, packaging, and extraction of active ingredients to create cannabis related products and concentrates.

7. "Cannabis product" means cannabis including dried flower, and product containing cannabis.

8. "Cannabis accessories" has the same meaning as in Health and Safety Code section 11018.1.

9. "Commercial cannabis activity" includes cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in Business and Professions Code section 26000 et. seq.

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

11. "Edible cannabis product" means cannabis product that is intended to be used, in whole or in part, for human consumption. Edible cannabis product includes cannabis products that dissolve or disintegrate in the mouth but does not include cannabis concentrate.

12. "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.

13. "Dispensary" means a facility open to the public 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.

14. "License" refers to any one (1) of the licenses described by Section 10.96.050 that specifically authorizes a person to conduct commercial cannabis operations in the city.

15. "Licensee" means a person issued a state license under the Act to engage in commercial cannabis activity or a person issued a cannabis business license under Section 10.96.050 of this chapter.

16. "Licensing authority" means the state agency responsible for the issuance, renewal, or reinstatement of the state license, or the state agency authorized to take disciplinary action against the licensee.

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

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

19. "M-License" means a state license issued pursuant to Division 10 of the Business and Professions Code for commercial cannabis activity involving medicinal cannabis.

20. "A-License" means a state license issued pursuant to Division 10 of the Business and Professions Code for cannabis or cannabis products that are intended for adults who are twenty-one (21) years of age and older and who do not possess a physician's recommendation.

21. "Premises" means the designated structure(s) and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted.

22. "State" means the State of California.

23. "State license" means a state license issued pursuant to Division 10 of the California Business and Professions Code (Sections 26000, et seq.).

24. "Type N" means a state license issued for manufacturers that produce edible or topical products using the infusion process, or other types of cannabis products other than extracts and concentrates, but who do not conduct extractions. Type N licensees may also package and label cannabis products on a licensed premises.

25. "Testing laboratory" means a laboratory, facility, or entity in the state that offers or performs tests of cannabis and cannabis products and that is both of the following:

a. Accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state.

b. Licensed by the department of consumer affairs bureau of cannabis control.

(Ord. No. 1949, div. 2, 12-4-2017; Ord. No. 1968, div. 2, 3-18-2019)

Notwithstanding Section 10.96.080, the city shall allow commercial cannabis activity and testing laboratories by license only, as described below:

1. Each cannabis business seeking to operate within the city must first apply and be issued the appropriate license to operate within the city. The license is specific to the location where the commercial cannabis business will be operating. Multiple operating locations for the same cannabis business will require separate licenses. Each license is non-transferable.

2. A cannabis business may apply for any of the following:

a. Testing Laboratory License. State License Type 8. A testing laboratory license is required for all activities for which MAUCRSA requires a Type 8 state license.

b. Manufacturing License—Infusions. State License Type N. A manufacturing license is required for all activities for which MAUCRSA requires a Type N state license.

c. Cannabis Delivery—Non-storefront. State License Type 9. A non-storefront retailer license is required for all activities for which MAUCRSA requires a Type-9, non-storefront retailer state license to conduct retail cannabis sales exclusively by delivery as defined in Business and Professions Code section 26001(p).

d. Cannabis Distribution. State License Type 11. A distribution license is required for all activities for which MAUCRSA requires a Type 11 state license.

e. No license shall be issued if the cannabis activity is not a permitted land-use in the city.

3. The city council shall adopt by resolution reasonable regulations pertaining to the license process for the above identified commercial cannabis businesses allowed within the city.

4. The city council shall adopt by resolution a limit on the number of each license type to be issued.

5. Unless expressly permitted and outlined in this chapter all other types of cannabis businesses (medical or non-medical) are prohibited within city limits.

(Ord. No. 1949, div. 2, 12-4-2017; Ord. No. 1960, § 2, 6-4-2018; Ord. No. 1968, div. 2, 3-18-2019)

Editor's note— Ord. No. 1968, div. 2, adopted March 18, 2019, amended § 10.96.050 and in so doing changed the title of said section from medical cannabis businesses authorized—license required to read as set out herein.

The requirements of this chapter shall be in addition to any cannabis industry tax requirements imposed pursuant to Chapter 3.40 of this Code.

(Ord. No. 1949, div. 2, 12-4-2017; Ord. No. 1968, div. 2, 3-18-2019)

Editor's note— Ord. No. 1968, div. 2, adopted March 18, 2019, amended § 10.96.060 and in so doing changed the title of said section from business license tax required to read as set out herein.

In addition to a license identified in Section 10.96.050 any cannabis business operating within city boundaries must possess the appropriate state license issued by the appropriate licensing authority required by state law. If a state license has not yet been issued at the time of the license application, the cannabis business shall describe how it will meet the state licensing requirements, and provide supporting documentation required by the local licensing authority.

(Ord. No. 1949, div. 2, 12-4-2017; Ord. No. 1968, div. 2, 3-18-2019)

A. Except as provided in Section 10.96.050, cannabis cultivation and cannabis dispensaries shall be prohibited activities in the city, and no person or entity shall conduct or engage in said activities, except where the city is preempted by federal or state law from enacting a prohibition on any such activity or prohibiting a person or entity from conducting or engaging in such activity.

B. All cannabis businesses operating in violation of this chapter are expressly prohibited. No entity that distributed cannabis prior to the enactment of this chapter shall be deemed to have been a legally established use under the provisions of this chapter, and such use shall not be entitled to claim legal nonconforming status for the purposes of licensing.

(Ord. No. 1949, div. 2, 12-4-2017; Ord. No. 1968, div. 2, 3-18-2019)

Any cannabis business operated, conducted, or maintained contrary to the provisions of this chapter shall be, and the same is hereby declared to be, unlawful and a public nuisance, and the city attorney may, in addition to or in lieu of prosecuting a criminal action hereunder, commence an action or actions, proceeding or proceedings, for the abatement, removal and enjoinment thereof, in the manner provided by law. Such remedies shall be in addition to any other judicial and administrative penalties and remedies available to the city under this chapter, or Chapters 1.40, 1.42, 1.44, or 1.46 of this Code, or under state law.

(Ord. No. 1949, div. 2, 12-4-2017; Ord. No. 1968, div. 2, 3-18-2019)

Editor's note— Ord. No. 1968, div. 2, adopted March 18, 2019, repealed former § 10.96.090 and in so doing renumbered former §§ 10.96.100—10.96.120 as §§ 10.96.090—10.96.110, as set out herein. The former § 10.96.090 pertained to cannabis cultivation and derived from Ord. No. 1949, div. 2, adopted Dec. 4, 2017.

The city council may establish by resolution the fees that shall be charged for administration and implementation of this chapter. The adoption of such fees shall not prevent the city from recovering enforcement costs not specified in such resolution.

(Ord. No. 1949, div. 2, 12-4-2017; Ord. No. 1968, div. 2, 3-18-2019)

Editor's note— See editor's note at § 10.96.090.

If any provision of this chapter of the application of any such provision to any person or circumstance, shall be held invalid, the remainder of this chapter, to the extent it can be given effect, or the application of those provisions to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, and to this end, the provisions of this chapter are severable.

(Ord. No. 1949, div. 2, 12-4-2017; Ord. No. 1968, div. 2, 3-18-2019)

Editor's note— See editor's note at § 10.96.090.