RESOLUTION NO

Transcription

1 RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCATA ESTABLISHING REGULATIONS GOVERNING THE ISSUANCE, COMPLIANCE MONITORING, RENEWAL, AND ENFORCEMENT OF COMMERCIAL CANNABIS ACTIVITY PERMITS IN THE CITY WHEREAS, the City Council has by Ordinance No recently revised its Arcata Municipal Code pertaining to the use and regulation of medical marijuana in the City to require a permit in advance of conducting Commercial Cannabis Activity within the City. WHEREAS, pursuant to Section 5952 of Ordinance No and the Arcata Municipal Code, the City Manager is responsible for developing reasonable fees, rules, regulations and policies pertaining to the issuance, compliance monitoring, renewal, and enforcement of Commercial Cannabis Activity Permits in the City, and the City Council desires to adopt regulations in accordance with such provision. NOW, THEREFORE, be it resolved by the City Council of the City of Arcata that the City hereby adopts Exhibit A, Commercial Cannabis Activity Permit Regulations, attached hereto and incorporated herein, establishing the fees, rules, regulations and policies pertaining to the issuance, compliance monitoring, renewal, and enforcement of Commercial Cannabis Activity Permits. BE IT FURTHER RESOLVED that this Resolution shall go into effect on, Dated:, APPROVED: By: Mayor, City of Arcata ATTEST: City Clerk, City of Arcata Attachments: Exhibit A, Commercial Cannabis Activity Permit Regulations

2 CLERK'S CERTIFICATE I hereby certify that the foregoing is a true and correct copy of Resolution No , passed and adopted at a regular meeting of the City Council of the City of Arcata, County of Humboldt, State of California, held on the day of, 2016, by the following vote: AYES: NOES: ABSENT: City Clerk, City of Arcata

3 EXHIBIT A TO RESOLUTION NO CITY OF ARCATA COMMERCIAL CANNABIS ACTIVITY PERMIT REGULATIONS 1. Applicability. These regulations implement Chapter 10 of Title V of the Arcata Municipal Code (AMC) and are intended to define the process for the issuance, renewal and compliance monitoring of Commercial Cannabis Activity Permits. 2. Definitions. For the purposes of these regulations, all definitions in the AMC at Title 5, Chapter 10 and the definitions set forth herein shall apply. Terms not defined herein or in the AMC shall have the meaning as set out in the Medical Marijuana Regulation and Safety Act, Chapter 3.5 of Division 8 of the California Business and Professions Code, sections et seq. a) Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Cannabis. b) Dispensary means a facility where medical Cannabis, medical Cannabis products, or devices for the use of medical Cannabis or medical 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, medical Cannabis and medical Cannabis products as part of a retail sale. c) Distributor means a person who engages in the business of purchasing medical Cannabis from a licensed Cultivator, or medical Cannabis products from a licensed Manufacturer, for sale to a licensed Dispensary. d) Manufacturer means a person that conducts the production, preparation propagation, compounding or processing of manufactured medical Cannabis, or medical Cannabis products into a concentrate, an edible product, or a topical product, 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 medical Cannabis or medical Cannabis products or labels or relabels its container. e) Testing Laboratory means a facility, entity, or site that offers or performs tests of medical Cannabis or medical Cannabis products and that is both of the following: 1) Accredited by an accrediting body that is independent from all other persons involved in the medical Cannabis industry in the state. 2) Registered with the California Department of Public Health. 3. General Permit Procedure. a) Permit Requirement. Each Commercial Cannabis Activity Business seeking to operate within the City must first apply for an appropriate Permit, as defined below. Permits are specific to the location where the Business will be operating. Multiple operating Page 1 of 9

4 locations for the same Business will require separate Permits. b) Permit Application. Applications shall be made to the City s Building Official on City forms. The Building Official shall consider and act upon complete applications, and shall deny any application that is not in full compliance with these regulations, the AMC at Title 5, Chapter 10, and the LUC. c) Permit Review. Upon receipt of an application, the Building Official shall circulate the application to the City s Community Development, Engineering, Environmental Services, Finance, and Police Departments. 4. Types of Permits. The following types of Commercial Cannabis Activity Permits may be applied for: a) Cultivation Permit. A Cultivation Permit is required for all activities for which the Medical Marijuana Regulation and Safety Act, Type 1B (specialty mixed-light, small), Type 2 (outdoor, small), Type 2A (indoor, small), Type 2B (mixed-light, small), Type 3 (outdoor, medium), Type 3A (indoor, medium), Type 3B (mixed-light; medium) or Type 4 (nursery) State license, as these license Types are more particularly described in Section 19332(g) of the Business and Professions Code. b) Manufacturer Permit 1: A Manufacturer Permit 1 is required for all activities for which the Medical Marijuana Regulation and Safety Act requires a Type 6 State license (manufacturing sites that produce medical cannabis products using nonvolatile solvents). c) Manufacturer Permit 2: A Manufacturer Permit 2 is required for all activities for which the Medical Marijuana Regulation and Safety Act requires a Type 7 State license (manufacturing sites that produce medical cannabis products using volatile solvents). d) Testing Laboratory Permit: A Testing Laboratory Permit is required for all activities for which the Medical Marijuana Regulation and Safety Act requires a Type 8 State license. e) Dispensary Permit: A Dispensary Permit is required for all activities for which the Medical Marijuana Regulation and Safety Act requires a Type 10 (Dispensary, general) or Type 10A (Dispensary, no more than three retail sites) State license. f) Distributer Permit: A Distributor Permit is required for all activities for which the Medical Marijuana Regulation and Safety Act requires a Type 11 State license. g) Transporter Permit: A Transporter Permit is required for all activities for which the Medical Marijuana Regulation and Safety Act requires a Type 12 State license, where the transport of medical Cannabis or medical Cannabis products is to or from a Commercial Cannabis Activity Business located in Arcata. h) Delivery Permit: A Delivery Permit is required for the commercial transfer of medical Cannabis or medical Cannabis products from a Dispensary to a primary caregiver or qualified patient as defined in Section of the Health and Safety Code, or a Testing Laboratory. Page 2 of 9

5 5. Permit Application Contents. Each application for a Commercial Cannabis Activity Permit shall include the following information, as applicable to the Permit type: a) Identifying Information, Ownership, Management: The name and address for each Commercial Cannabis Activity Business Owner and an explanation of the legal form of business ownership, for example, sole proprietor, partnership, California corporation, etc. b) Additional Identifying Information, Owners and Key Employees: Until such time when State licenses are being processed and issued pursuant to the Medical Marijuana Regulation and Safety Act, each Owner as well as each employee who makes or will make operational or management decisions that directly impact the business shall submit electronic fingerprint images and related information required by the Arcata Police Department for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests, and information as to the existence and content of a record of state or federal convictions and arrests for which the person is free on bail or on his or her own recognizance pending trial or appeal. c) Description of Premises: The address and Assessor s Parcel Number(s) of the location for the proposed Commercial Cannabis Activity; and, the name and contact information for the property owner(s) where the proposed Activity will be located. d) State License Type and Compliance: A description of the specific Medical Marijuana Regulation and Safety Act license type(s) that the applicant either has obtained or plans to obtain. The applicant shall specifically document how it will meet the State licensing requirements. e) Description of Operations. A description of the nature of the Activity, product type, average production amounts (including each product produced by type, amount, process, and rate), and source of medical marijuana material. f) Building, Site and Floor Plans. Plans showing all proposed building and site improvements, including site plans, floor plans, mechanical, plumbing (including details showing all sewers, floor drains) and electrical plans. The plans shall clearly label and distinguish between the existing and proposed improvements and show all exterior building, interior building and site modifications. At a minimum, plans shall: (1) Show all fixtures, equipment and building improvements to be utilized for the cultivation, production and processing of medical marijuana; (2) Meet California Code of Regulations Title 24 requirements; and (3) Be reviewed and stamped by an engineer with the appropriate trades (mechanical, plumbing, electrical, etc). Applications for a Cultivation Permit shall additionally include plans detailing: (1) An approved fire sprinkler system; (2) A minimum one (1) hour firewall separating all separate lease spaces which are utilized for Commercial Cannabis Activity; and (3) A specific odor control system that will contain all associated odors. Page 3 of 9

6 A Permit applicant may be required to apply for and obtain a building permit to complete building and/or site improvements. g) Solid Waste Diversion. A description of measures to be taken to reduce solid waste and green waste including a plan for light bulb recycling for Cultivation Permit applicants. h) Sustainability. Applications for a Cultivation Permit shall contain an energy calculator quantifying the expected electricity usage and greenhouse gas emissions, a list of energy efficiency measures, best practices, and proposed greenhouse gas emission offsets. i) Security Plan. A description and documentation of how the Owner will secure the premises 24 hours per day, 7 days per week, and how waste derived from marijuana will be disposed of in a manner to ensure it may not be utilized for unlawful purposes. These security measures shall include, but not be limited to, the following: (1) Preventing individuals from remaining on the premises if they are not engaged in activity expressly related to the operations of the permit; (2) Establishing limited access areas accessible only to authorized personnel including security measures to both deter and prevent unauthorized entrance into areas containing medical cannabis or medical cannabis products and theft of medical cannabis or medical cannabis products; (3) Storing all finished medical Cannabis and medical Cannabis products in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, and loss, except for limited amounts of cannabis used for display purposes, samples, or immediate sale; (4) Providing tamper proof and tamper evident packaging for finished Cannabis products; (5) Preventing off site impacts to adjoining or near properties. j) ITSS Information. Name and contact information for the designated inventory tracking system administrator and any designated account users. k) Application Processing and Permit Fees. In the amounts set out below. l) Signature of Applicant. The application shall be signed by the Commercial Cannabis Activity Business Owner. The Owner s signature shall be evidence of the Owner s express consent to allow the Building Official or designee, to enter upon and inspect the premises upon reasonable notice. The applicant s signature shall additionally certify under penalty of perjury that the information submitted in the application including all supporting documents and materials is, to the best of the applicant s knowledge and belief, true, accurate, and complete. m) Signature of Property Owner. The application shall be signed by the property owner(s). The property owner s signature shall certify that he/she/it has reviewed the application, approves the use of the property for the purposes stated in the application, and agrees to allow the Building Official or designee, to enter upon and inspect the premises upon Page 4 of 9

7 reasonable notice. 6. General Requirements of Operation. a) State license. Beginning at such time that the State has begun to issue licenses and at all times thereafter, pernittees shall hold a valid State license for the equivalent State license type. b) Hours of Operation: All permitted facilities shall be closed to the general public and Transporter deliveries and pick-ups shall be prohibited between the hours of 7:00 p.m and 8:00 a.m. With the exception of activities authorized pursuant to a Dispensary Permit no direct sales of marijuana to qualified patients may occur upon the premises. c) Odor Control. Odors shall be contained on the property on which the Cannabis activity is located. If the City receives any odor complaints, permittees shall work with the Building Official to correct odor concerns. Unresolved or repeated odor complaints may be the basis for suspension or revocation of the Permit, or denial of Permit renewal. d) Business Conducted Within Building. No cultivation, production, distribution, storage, display, or wholesale of marijuana and marijuana-infused products shall be visible from the exterior of the building where the Commercial Cannabis Activity Business is being conducted. e) Security Measures. All permittees shall maintain a commercial burglar alarm monitoring system, and install a video surveillance system. f) Security Breach. A permittee shall notify the Arcata Police Department within 24 hours after discovering any of the following: (1) Diversion, theft, loss, or any criminal activity involving the marijuana or any agent or employee of the permittee. (2) The loss or unauthorized alteration of records related to Cannabis, registered qualifying patients, primary caregivers, or employees or agents. (3) Significant discrepancies identified during inventory. (4) Any other breach of security. g) Labeling. Labels and packages of Cannabis and medical Cannabis products shall meet all state and federal labeling requirements. h) Inspections, records. Inspections, if necessary, shall take place at a reasonable time with prior notice to the permittee. Upon request, the permittee shall timely provide the Building Official with records related to the business, including, but not limited to, utility bills from the commercial energy provider for the premises. This section shall not limit any inspection authorized under any other provision of law or regulation. i) Sustainable Practices. Page 5 of 9

8 (1) Standards. The City encourages a minimum of a 50% offset or equivalent in efficiency measures. Together with a Permit renewal application, all Cultivation Permittees shall submit a sustainability report describing: Actual electricity used any fuel associated with generators or CO2 generation (all fuels must be converted to kilowatt hours [ kwh ] using the rate of 3412 Btu = 1 kwh); Actual greenhouse gas emissions; Emission offsets; A list of energy efficiency measures and best practices used the previous year; An energy calculator quantifying the expected electricity and other fuel emissions proposed for the upcoming year. j) Inventory Tracking System. (1) Inventory Tracking System Administrator Required. All permittes shall purchase, implement and maintain updates to the inventory tracking software from the City s inventory tracking software system (ITSS) provider. A permittee must have at least one individual Owner or contractor who successfully completes all training necessary to properly use the ITSS as a System Administrator. The System Administrator may also designate specific inventory tracking system user(s) that have successfully completed all ITSS training required to access the system under the direct control of the System Administrator. The System Administrator and any designated users shall participate in all ongoing and continuing training as required to stay current with the software (2) Inventory Tracking. Permittees shall, at all times, maintain current inventory information on the City s ITSS. 7. Permit Issuance. Before issuing a Permit, the Building Official shall determine that all of the following requirements have been met: a) The application is complete and all fees have been paid; b) The Building Official has inspected all structures in which the use is located to determine that all applicable standards and requirements are met. If a building permit is required for site improvements, Permit issuance will be deferred until a certificate of occupancy or other building permit approval is issued. Additionally, the Building Official has determined that there are no notices of nuisance or other code compliance issues recorded or on the property. c) The Community Development Director or designee has issued a Zoning Clearance documenting LUC compliance with the following: (1) The use is permitted; (2) All overlay zone requirements will be met; (3) All land use permits, if any, have been approved and all conditions of approval have been met or are in good standing; Page 6 of 9

9 (4) No zoning violations exist on the property; and (5) All existing or proposed signage meets the requirements of the LUC. d) The City Engineer or designee has approved: (1) Stormwater control measures; and (2) Water and sewer connections and infrastructure. e) The Director of Environmental Services or designee has approved: (1) Solid waste diversion measures; (2) Sustainability measures; and (3) Wastewater pre-treatment controls if required. f) The Finance Director or designee has determined that all property, sales, transaction and use, and other City taxes and fees have been paid and no tax liens exist on the property or any property in the City owned by the Owner(s). g) The Police Chief or designee has approved or determined the following: (1) The security plan; (2) That no Owner or employee who makes or will make operational or management decisions that directly impact the business has been convicted of an offense, or is currently free on bail or on his or her own recognizance pending trial or appeal for an offense, that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, including but not be limited to, the following: (A) A felony conviction for the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance; (B) A violent felony conviction, as specified in subdivision (c) of Section of the Penal Code. (C) A serious felony conviction, as specified in subdivision (c) of Section of the Penal Code. (D) A felony conviction involving fraud, deceit, or embezzlement. 8. Permit Duration. The Permit shall be valid for one year from the date of issuance. a) Permit Renewal. A Permit renewal application, renewal fee and operating fee must be submitted at least forty-five (45) days before the expiration of the Permit. Failure to submit a renewal application prior to the expiration date of a license will result in the automatic expiration of the Permit on the expiration date. A Permit may not be renewed if any violations of or non-compliance with the Permit, these regulations, Chapter 10 of Title V, or the LUC occurred during the previous year or currently exist. Permit renewal is subject to the laws and regulations effective at the time of renewal, which may be substantially different than the regulations currently in place and may require the submittal of additional information to ensure that new standards are met. 9. Changes to Ownership or Modification of Premises. A Commercial Cannabis Activity Permit is non-transferable to another location, and no transfer to another Owner or modifications to a permitted facility may be made except in accordance with these provisions. Page 7 of 9

10 10. Fees. a) Transfer of Ownership. A request for change in Permit ownership shall be submitted to the Building Official on a City form at least sixty (60) days prior to the anticipated transfer, together with the appropriate fee. Requests submitted in less than sixty days before the transfer will be processed only in the City s discretion and may be subject to an expedited processing fee. A new Owner(s) shall meet all requirements for applicants of an initial permit. The request shall include the following information: (1) Identifying information for the new Owner(s) and management as required in an initial permit application; (2) A written certification by the new Owner in accordance as required in an initial Permit application; (3) The specific date on which the transfer is to occur; and (4) Acknowledgement of full responsibility for complying with the existing Permit. b) Modifications to the Facility. Prior to making any modifications to a permitted facility, the permittee shall submit to the Building Official on a City form, at least sixty (60) days in advance of initiating the modifications, a request for determination of City approvals, together with the appropriate fee. The request shall contain a description sufficiently detailed to allow the Building Official to determine what permits and other approvals, are needed, and whether a modified Commercial Cannabis Activity Permit is required. A modification of any building structure where a permitted Commercial Cannabis Activity is located is subject to all applicable local, state and federal laws and regulations. c) Change of Contact Information. A request for change in permittee contact information shall be submitted to the Building Official on a City form at least sixty (60) days prior to the anticipated change, together with the appropriate fee. d) Change in Trade Name. A request for change in permittee trade or business name shall be submitted to the Building Official on a City form at least sixty (60) days prior to the anticipated change, together with the appropriate fee. a) Initial Permit Fees. The following fees apply to the initial Permit application: Initial Application Fee $2,500 Annual Operating Fee $4,000 b) Renewal Permit Fees. The following fees apply to a Permit renewal application: Renewal Application Fee $300 Annual Operating Fee $4,000 Page 8 of 9

11 c) Administrative Permit Fees. The following fees apply to a Permit modification: Transfer of Ownership $500 Change in Ownership Structure $100 Change of Location $50 Change in Mailing Address $3,000 Change in Trade Name $50 Modification of Premises $50 The Operating Fee may be refunded if the City denies the application. All other fees are nonrefundable. At the discretion of the Building Official, a fee based on time and materials may be charged in lieu of the Initial Application Fee for very small projects that do not require other permits and/or minimal staff review. The City Council has authority to set and amend fees through the annual Resolution adopting the Master Fee Schedule. Page 9 of 9