Chapter 17.85 — COMMERCIAL CANNABIS ACTIVITY[[8]]

Footnotes:

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Editor's note— Ord. No. 1140, § 2(Exh. A), adopted July 10, 2019, amended Ch. 17.85 in its entirety to read as herein set out. Former Ch. 17.85, §§ 17.85.010—17.85.100, pertained to similar subject matter and derived from Ord. No. 1108, § 3, adopted July 12, 2017; Ord. No. 1114, §§ 3—6, adopted Feb. 14, 2018.

It is the purpose and intent of this chapter to regulate the cultivation, manufacturing, testing, distribution, and transportation of medicinal and nonmedicinal cannabis (including cannabis products, cannabis concentrate, and edible cannabis products) within the city of Coachella.

The regulations in this chapter are enacted to ensure the health, safety, and welfare of the residents of the city. These regulations, in compliance with the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program ("MMP"), the Medicinal and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "state law"), do not interfere with the use and possession of cannabis, as authorized under state law.

Nothing in this chapter shall be construed to: (1) allow persons to engage in conduct that endangers others or causes a public nuisance, (2) allow any activity relating to the cultivation, manufacturing, testing, or distribution of cannabis that is otherwise illegal under California state law, or (3) interfere with the use and possession of cannabis as authorized under MAUCRSA.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)

Unless the particular provision or context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter:

"Applicant" means an owner applying for a conditional use permit under this chapter.

"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 California 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. For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.

"Cannabis concentrate" means 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 for purposes of this division. 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 California Health and Safety Code.

"Cannabis products" has the same meaning as marijuana products in Section 11018.1 of the California Health and Safety Code. When the term "cannabis" is used in this chapter, it shall include "cannabis products."

"City manager" means the city manager of the city of Coachella or designee.

"Commercial cannabis activity" includes the cultivation, manufacture, laboratory testing, and distribution, including non-retail microbusinesses, (including possession, processing, storing, and labeling incidental to each activity, as applicable) of cannabis and cannabis products. For purposes of this chapter, "commercial cannabis activity" does not include delivery or retail sale of cannabis or cannabis products.

"Conditional use permit" or "CUP" means a conditional use permit issued under this chapter.

"Cultivate" or "cultivation" means any commercial activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. A cannabis nursery is considered a "cultivation" use.

"Customer" means a natural person twenty-one (21) years of age or older or a natural person eighteen (18) years of age or older who possesses a physician's recommendation, or a primary caregiver.

"Delivery" means the commercial transfer of cannabis or cannabis products to a customer.

"Distribution" means the procurement, wholesale sale, and transport of cannabis and cannabis products between entities permitted or licensed under this chapter, another local California jurisdiction, or state law.

"Edible cannabis product" means manufactured cannabis 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 of the California Food and Agricultural Code. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code. When the term "cannabis" is used in this chapter, it shall include "edible cannabis products."

"Indoor" means within a fully enclosed and secure building.

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

"Manufacturer" means a permittee 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 container.

"Non-retail microbusiness" means a commercial business that engages in indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and State law on licensed cultivators, distributors, and Level 1 manufacturers.

"Nursery" means a permittee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.

"Operation" means any act for which a permit is required under the provisions of this chapter, or any commercial transfer of cannabis or cannabis products.

"Owner" means any of the following:

(1)

A person with an aggregate ownership interest of twenty (20) percent or more in the applicant, unless the interest is solely a security, lien, or encumbrance;

(2)

The chief executive officer of a nonprofit or other entity;

(3)

A member of the board of directors of a nonprofit;

(4)

The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.

(5)

An individual entitled to a share of at least twenty (20) percent of the profits of the commercial cannabis business;

(6)

An individual that will be participating in the direction, control, or management of the person applying for a permit. Such an individual includes any of the following: a general partner of a commercial cannabis business that is organized as a partnership; a non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company; an officer or director of a commercial cannabis business that is organized as a corporation.

agement of the person applying for a permit. Such an individual includes any of the following: a general partner of a commercial cannabis business that is organized as a partnership; a non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company; an officer or director of a commercial cannabis business that is organized as a corporation.

"Permittee" means the individual or applicant to whom a conditional use permit has been issued under this chapter. A permittee includes all representatives, agents, parent entities, or subsidiary entities of the permittee.

"Person" includes any individual, firm, co-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.

"Shared-use facility" means a premises registered by a primary manufacturing permittee at which multiple cannabis manufacturers may operate at separate times.

"Testing" means subjecting cannabis to laboratory testing for active compounds and purity prior to distribution for consumption.

"Testing laboratory" means a laboratory, facility, or entity in California, that offers or performs tests of cannabis or cannabis products and that is both of the following: (1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state; and (2) Licensed by the California Bureau of Marijuana (or Cannabis) Control within the California Department of Consumer Affairs (when such licenses begin to be issued).

Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources:

(1)

CUA (California Health and Safety Code Section 11362.5);

(2)

MMP (California Health and Safety Code Sections 11362.7 through 11362.83); and

(3)

MAUCRSA (California Business and Professions Code Sections 26000 et seq.).

(Ord. No. 1140, § 2(Exh. A), 7-10-19; Ord. No. 1161, § 18, 5-27-20; Ord. No. 1195, § 21, 7-27-22)

Commercial cannabis activity permitted under this chapter includes indoor cultivation, interim outdoor cultivation, manufacture (including shared-use facilities), distribution, testing, and non-retail microbusinesses (including possession, processing, storing, and labeling incidental to such activity).

(Ord. No. 1140, § 2(Exh. A), 7-10-19; Ord. No. 1161, § 19, 5-27-20; Ord. No. 1171, § 8, 8-25-21; Ord. No. 1195, § 22, 7-27-22)

Prior to initiating operations and as a continuing requisite to operating a commercial cannabis activity, the applicant shall obtain a CUP as provided in Chapter 17.74 entitled "Conditional Uses" and a regulatory permit and a state license for each use authorized in the CUP. If any provision of this chapter conflicts with any provision of Chapter 17.74 of this code, the provision in this chapter shall control. An applicant must obtain a separate CUP for each commercial cannabis activity the applicant wishes to operate. Separate CUPs may be issued for indoor cannabis cultivation versus interim outdoor cannabis cultivation. Each CUP will include a condition of approval requiring that the permittee also obtain and maintain an indoor cultivation, interim outdoor cultivation, manufacture, distribution, non-retail microbusiness, or testing laboratory regulatory permit required by this code. Each CUP for interim outdoor cultivation may include a condition of approval that limits outdoor cultivation activities to a specified duration not to exceed the sooner of forty eight (48) months, or the first phase of construction establishing a new residential or commercial use. If the condition is accepted by the applicant, the City may thereafter record a covenant memorializing this restriction against the property, which shall include a reference to the approved CUP. The City Manager or his/her designee shall make efforts to notify the permittee a year prior to CUP expiration of the need to renew the CUP.

(Ord. No. 1140, § 2(Exh. A), 7-10-19; Ord. No. 1161, § 20, 5-27-20; Ord. No. 1171, § 9, 8-25-21; Ord. No. 1188, § 5, 12-8-21; Ord. No. 1195, § 23, 7-27-22)

A.

Indoor commercial cultivation, manufacturing, testing laboratory, and distribution activities.

1.

Location. Indoor commercial cultivation, manufacturing, testing laboratory, distribution, and non-retail microbusiness uses may be located in any manufacturing service (M-S) zone, heavy industrial (M-H) zone, and wrecking yard (M-W) zone upon issuance of a conditional use permit and regulatory permit.

2.

Indoor only. All uses shall be conducted only in the interior of enclosed structures, facilities, and buildings. All indoor cultivation operations, including all cannabis plants, at any stage of growth, shall not be visible from the exterior of any structure, facility or building containing cultivation. All indoor cultivation, manufacturing, testing and processing must take place indoors, within a permanent structure that is enclosed on all sides. Outdoor manufacturing, testing, and processing are prohibited. Portable greenhouses and/or non-permanent enclosures shall not be used for cultivation unless they are placed inside of a permanent structure that is enclosed on all sides.

3.

Odor control. Uses shall not result in the creation of any odors detectable from anywhere off the property boundaries. The use of carbon filtration systems and other mitigation measures shall be used on all commercial cannabis activities that cause such odors.

4.

Water and sewer. Indoor commercial cannabis activity must be served by municipal water and sewer services. Interim outdoor cannabis cultivation uses need only be served by a private water well or municipal water.

5.

Distance restriction. Indoor commercial cannabis activity shall be located a minimum distance of six hundred (600) feet away from any residentially-zoned lot. The distance shall be measured at the nearest point between property lines containing the commercial cannabis use and any lot line of the residential use.

6.

Testing laboratories. Testing laboratories may be located in the general commercial (C-G) zone in addition to the M-W zone and IP overlay zone with a CUP, but are not required to meet the requirement in subsection (A)(5) of this section.

B.

Interim outdoor commercial cannabis cultivation.

1.

Location. Interim outdoor commercial cannabis cultivation be located in any agricultural reserve (A-R) zone, agricultural transition (A-T) zone, residential single-family (R-S) zone, multiple-family residential (R-M) zone, and general commercial (C-G) zone that is located within the geographic area bounded by Vista Del Sur on the north, the All-American Canal on the east, Avenue 52 on the south, and the 86 Expressway on the west, upon issuance of a conditional use permit CUP and a regulatory permit.

2.

Property development standards. All interim outdoor commercial cannabis cultivation sites:

(a)

shall be located on a site having a minimum of one acre in size.

(b)

shall have a maximum canopy size that is no larger than the maximum size authorized by the State license for that business.

(c)

shall provide a minimum twenty-foot setback on all sides with an opaque fencing material, subject to review and approval by the Planning Director, to screen the outdoor grow areas from view to public streets.

3.

Distance Restrictions. No interim outdoor commercial cannabis cultivation shall be located within one thousand (1,000) feet of any public or private school (K-12), day care center or youth center. The distance shall be measured from the nearest point between the property line containing the interim outdoor commercial cannabis cultivation use to any lot line of the other use. "Day care center" means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities and school age child care centers. "Youth center" means any public or private facility that is primarily used to house recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.

(Ord. No. 1140, § 2(Exh. A), 7-10-19; Ord. No. 1171, § 10, 8-25-21; Ord. No. 1188, § 3, 12-8-21; Ord. No. 1195, § 24, 7-27-22)

At the time an applicant submits an application under this chapter, the applicant shall also supply an application fee in an amount to be determined by resolution by the city council, an executed reimbursement agreement on a form provided by the city to fully reimburse the city for all fiscal impacts, costs, expenses, and fees, including but not limited to attorney fees and consultant fees, incurred by the city related to the commercial cannabis activity, and a deposit in an amount as provided for in the reimbursement agreement terms.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)

A.

No commercial cannabis activity shall operate unless it is in possession of all applicable state and local licenses or permits, except as otherwise permitted by state and/or local law.

B.

Every commercial cannabis activity shall submit to the city manager a copy of any and all of its state and local licenses and permits required for its operation.

C.

If any other applicable state or local license or permit for a commercial cannabis activity is denied, suspended, modified, revoked, or expired, the permittee shall notify the city manager in writing within ten (10) calendar days.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)

All commercial cannabis activity is required to pay all applicable taxes, including a cannabis business tax pursuant to Chapter 4.31.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)

CUPs may not be transferred, sold, assigned or bequeathed expressly or by operation by law. Any attempt to directly or indirectly transfer a cannabis business CUP shall be unlawful and void, and shall automatically revoke the permit.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)

Any commercial cannabis activity that does not have both a CUP and a regulatory permit required under this code is expressly prohibited in all city zones and is hereby declared a public nuisance that may be abated by the city and is subject to all available legal remedies, including, but not limited to civil injunctions.

(Ord. No. 1140, § 2(Exh. A), 7-10-19; Ord. No. 1195, § 25, 7-27-22)

Editor's note— Ord. No. 1171, § 11, adopted Aug. 25, 2021, repealed § 17.85.090, which pertained to commercial cannabis cultivation, manufacturing, testing, processing interior only and derived from Ord. No. 1140, § 2(Exh. A), adopted July 10, 2019.

A.

In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions for injunctive relief or otherwise, and administrative penalties.

B.

Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law.

C.

Violations of this chapter are hereby declared to be public nuisances.

D.

Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies.

E.

All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other remedy for the purpose of enforcing the provisions

hereof.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)