HomeMy WebLinkAbout7/19/2017 - STAFF REPORTS - 3.B. ;O�Q A LM s'O4
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I It R CITY COUNCIL STAFF REPORT
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DATE: July 19, 2017 LEGISLATIVE
SUBJECT: INTRODUCTION OF AN ORDINANCE OF THE CITY OF PALM
SPRINGS, CALIFORNIA, AMENDING CHAPTER 5.45 OF THE PALM
SPRINGS MUNICIPAL CODE REGARDING "MEDICAL CANNABIS
RELATED BUSINESSES AND ACTIVITIES" AND ADDING CHAPTER
5.55 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING
"ADULT-USE CANNABIS RELATED BUSINESSES AND ACTIVITIES"
FROM: David H. Ready, City Manager
BY: Edward Z. Kotkin, City Attorney
SUMMARY
The City Council ad hoc committee for cannabis addressing state legislation and the
evolution of the City's ordinances has worked with staff and legal counsel to ensure that
the City Council had the opportunity to keep the City of Palm Springs in its leadership
position in this area by propounding an "adult-use" ordinance, and updating the City's
ordinance on medical cannabis related businesses and activities to conform with new
State law and the City's potential strategy for the generation of tax revenue in relation to
both.
The proposed Ordinance in question, including a new Chapter 5.55 of the Palm Springs
Municipal Code ("PSMC") and an amended PSMC Chapter 5.45, represents the
legislative action that the subcommittee and staff recommend to the full City Council.
RECOMMENDATION:
Waive the reading of text in its entirety, read by title only, and introduce for first reading
Ordinance No. , "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA,
AMENDING CHAPTER 5.45 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING
"MEDICAL CANNABIS RELATED BUSINESSES AND ACTIVITIES" AND ADDING CHAPTER
5.55 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING "ADULT-USE CANNABIS
RELATED BUSINESSES AND ACTIVITIES" "
MW NO. �.
City Council Staff Report
July 19, 2017 -- Page 2
AMENDED MEDICAL AND NEW ADULT-USE CANNABIS ORDINANCE
STAFF ANALYSIS:
On December 7, 2016 the Council introduced, and on December 14, 2016 it adopted
PSMC Chapter 5.45 in Ordinance 1909. The passage of the State's Medical Cannabis
Regulation and Safety Act (MCRSA) prompted this action. In doing so, the City
expanded its regulation of cannabis beyond the existing regulatory framework
applicable to the City's permitted medical cannabis collectives or cooperatives. It did so
to allow the City to transition to an environment wherein the City could approve various
medical cannabis businesses and activities independent of the restrictions that limited
cannabis in the City to a group of six (6) permitted non-profit collective or cooperative
operators. These regulations, adopted in a manner consistent with MCRSA and all
applicable law, included an expansion of cannabis cultivation opportunities, and the
provision of manufacturing, delivery, dispensing, and testing activities in the City.
Subsequent to adoption of Ordinance 1909, the City updates the zoning and
development standards in the PSMC applicable to cannabis uses to include and
assimilate the new cannabis uses authorized by Chapter 5.45.
On June 27, 2017, the Governor signed SB 94 ("The Reconciliation Bill"), which
reconciles the existing medical cannabis regulatory framework under the Medical
Cannabis Regulation and Safety Act (MCRSA) with Proposition 64, the Adult-Use of
Marijuana Act (AUMA). The Reconciliation Bill, also known as the "Medicinal and Adult-
Use Cannabis Regulation and Safety Act" ("MAUCRSA") provides a framework for the
co-existence of licensing for adult-use (non-medical) and medical cannabis, eliminates
prior restrictions on cross-Iicensure, provides for two (2) forms of taxation by the State
of California (cultivation and excise), consolidates State authority over cannabis, and
establishes that there are two (2) types of licenses, "A" licenses for adult use and "M"
licenses for medical use. Testing and laboratory licenses are universal.
Businesses related to adult-use of cannabis will be legal in the State of California as of
January 1 , 2018. The subcommittee has directed that it is imperative that the City of
Palm Springs remain a municipal leader in the field of cannabis regulation, and provide
the best possible platform from which cannabis businesses, whether medical and/or
adult, whether existing or new, can continue, commence, and/or expand their
operations, and prosper. In order to secure a permit/license from the State, our present
and future cannabis businesses will need a local permit/license. This requirement will
apply whether a business seeks an "A" or an "M" class permit/license, or both.
The proposed Ordinance provides a mechanism for the City to commence its review
and issuance of medical cannabis business activities proposed by parties beyond the
City's six (6) permitted/licensed collectives/cooperatives.
Absent contrary direction from the Council at this time, the City's acceptance of
permit/license applications under Chapter 5.45 (i.e., regarding medical cannabis
business and activities beyond our existing approved collectives/cooperatives) will
commence as soon as possible, in no event later than August 1, 2018. Unless
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City Council Staff Report
July 19, 2017 -- Page 3
AMENDED MEDICAL AND NEW ADULT-USE CANNABIS ORDINANCE
otherwise directed, these applications will be accepted without a staff/Council screening
process. With the revisions to Chapter 5.45 proposed in this Ordinance, staff will be
ready accept all applicants, subject to the significant protections and procedures already
in the PSMC and required by State law.
Existing cooperatives/collectives will continue to operate under 5.35 until the first permit
is issued under Chapter 5.45.
The amendments to Chapter 5.45 in this proposed Ordinance may be summarized as
follows:
• Change references to MCRSA to MAUCRSA;
• Correct and update references to California Business and Professions Code
Sections to match those in MAUCRSA;
• Add internal references to Section 5.55 and removed references to Section 5.35
when appropriate;
• Adjust the ownership threshold with respect to Cannabis businesses in the
definition of who is an "Applicant' from ten (10) to twenty (20) percent per a
change in State law under MAUCRSA.
• Remove references to Marijuana and replaced them with references to Cannabis
to correspond to legislative treatment in MAUCRSA;
• Provide explicit authority to City Manager to promulgate administrative
regulations;
• Eliminates references to limitations on distribution licenses being held in common
with other licenses;
• Make compliance with City Manager promulgated regulations regarding
Cannabis mandatory, with the possibility of suspension or revocation of a permit,
and/or punishment as a misdemeanor;
• Provide that no Application to engage in any Commercial medical cannabis
activity or in relation to any Cannabis-related business will be processed by the
City or approved under the Ordinance unless and until the ballot measure
regarding taxation of cannabis;
• Provides for continued taxation of existing cooperatives/collectives until such
time as a ballot measure regarding the taxation of cannabis is approved by the
voters;
• Gives priority to existing Permit holders under chapter 5.35
(collectives/cooperatives) in the application process under 5.45
• Address various typographic and stylistic issues.
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City Council Staff Report
July 19, 2017-- Page 4
AMENDED MEDICAL AND NEW ADULT-USE CANNABIS ORDINANCE
The proposed Chapter 5.55 regulates the adult-use of cannabis. Its provisions may be
summarized as follows:
• The chapter is based almost entirely on Chapter 5.45 because MAUCRSA
harmonizes State law applicable to adult use to that applicable to medical use
• No permit issued pursuant to this chapter can be effective before January 1 ,
2018
• No adult-use permittee can commence operations or secure a business license
until he/she/it secures a State issued "A" license
• The chapter contains provisions that conform to the adult-use licensing scheme
under MAUCRSA
• The chapter changes references to Medical Cannabis Regulation and Safety Act
(MCRSA) to the newly adopted Medical Cannabis and Adult-Use Regulation and
Safety Act (MAUCRSA);
• The chapter corrects and updates references to California Business and
Professions Code Sections to match the code sections in MAUCRSA;
• The chapter adds internal references to Section 5.45, and removes references to
Section 5.35 when appropriate;
• The chapter removes references to marijuana and replaces them with references
to cannabis to match referencing in MAUCRSA;
• The chapter changes references from Medical to Adult-Use where to provide
internal consistency;
• Provide explicit authority to City Manager to promulgate administrative
regulations;
• Make compliance with City Manager promulgated regulations regarding
Cannabis mandatory, with the possibility of suspension or revocation of a permit,
and/or punishment as a misdemeanor;
• Eliminates references to "patients', "physicians", "recommendations for medical',
and "medical collectives or cooperative" where appropriate;
• Eliminates references to limitations on distribution licenses being held in common
with other licenses;
• Changes references to 18 years of age for medical cannabis to 21 years of age
for adult-use;
• Changes references from 10 percent ownership to 20 percent ownership to
reflect changes under State law;
• Gives priority to existing Permit holders under chapter 5.35
(collectives/cooperatives) in the application process under 5,55; and
• Maintains and clarifies sections stating testing and laboratory licenses cannot be
held in common with other licenses.
04
City Council Staff Report
July 19, 2017-- Page 5
AMENDED MEDICAL AND NEW ADULT-USE CANNABIS ORDINANCE
ALTERNATIVES:
Provide direction to staff as to provisions of the proposed Ordinance that require
revision.
Reject the proposed Ordinance and give direction to staff as to how to proceed.
Adopt the revisions to Chapter 5.45, but give staff direction as to how Chapter 5.55
might be revised per Council direction.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:
Adoption of this ordinance is exempt from environmental review under the California
Environmental Quality Act ("CEQA") pursuant to the following provisions of the CEQA
Guidelines, 14 Cal. Code of Regulations, Chapter 3:
1. The Ordinance is exempt under Section 15061(b) (3) because it can be seen
with certainty that there is no possibility that the activity in question may have a
significant effect on the environment. The number of medical and adult-use
cannabis businesses within the various categories provided under State Law and
this Ordinance will be limited and the medical and adult-use cannabis businesses
will have impacts that are similar to the farming, manufacturing, distribution,
laboratory, and transportation and distribution activities already authorized within
the City. Furthermore, the Ordinance contains requirements that prevent any
potential impacts on the environment that may be unique to businesses involving
adult-use or medical cannabis. For example, the Ordinance establishes
prohibitions on nuisance odors, glare, excess energy usage, and establishes
safety protections to prevent crime or deterioration of the business area into
blight, prohibition on usages of hazardous chemicals, and a prohibition on usage
of excess water in violation of drought laws etc. Further, there is no possibility
that this Ordinance would create cumulative impacts that are significant because
this Ordinance does not authorize a total number of businesses in the City than
would have been otherwise authorized, does not authorize construction or other
related activities or any other activities that are not already permitted, except that
the Ordinance allows the same activities but with a different material (adult-use
or medical cannabis) that is being grown, sold, transported, or otherwise utilized
in some form; there are no other significant impacts that could occur as a result
of this ordinance, and there are no unusual circumstances that would cause any
such significant impacts. Chapter 5.45 has been previously determined to be
exempt from consideration under CEQA, and Chapter 5.55 is almost entirely
identical to Chapter 5.45. Adult-uses of cannabis have no different impacts upon
the environment than medical uses;
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City Council Staff Report
July 19, 2017-- Page 6
AMENDED MEDICAL AND NEW ADULT-USE CANNABIS ORDINANCE
2. The Ordinance is also exempt under Section 15183 (projects consistent with a
community plan, general plan, or zoning) since the types of businesses permitted
by the Ordinance are consistent with those contemplated by general plan and
zoning, such as farming, manufacture, and distribution of other agriculture
products and/or products to be used as pharmaceuticals;
3. The Ordinance is also exempt under CEQA Guidelines Section 15301 (existing
facilities) since permitted medical cannabis business under the Ordinance may
locate in existing facilities, and any additions to structures would be expected to
be also exempt under 15301 ; and
4. The Ordinance is exempt under Section 15303 (new construction or conversion
of small structures). The businesses will be established in an urban area, and
given the build out of the existing city, and sufficient existing leasable property,
the amount of construction that would occur is minimal to non-existent, and any
such construction would be less than the thresholds established in Section
15303.
FISCAL IMPACT:
Regardless of adoption of this Ordinance, taxes on the City's existing
cooperatives/collectives will continue to be due and payable under the Municipal Code
until the issuance of permits under Chapter 5.45 or Chapter 5.55. No permits will be
issued unless and until the ballot initiative regarding cannabis taxation that staff is
preparing for Council consideration on July 26, 2017 is approved by the City's voters.
Edward Z. Kotkin,
City Attorney
Attachments: Proposed Ordinance
06
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING CHAPTER 5.45 OF THE PALM
SPRINGS MUNICIPAL CODE REGARDING "MEDICAL
CANNABIS RELATED BUSINESSES AND ACTIVITIES"
AND ADDING CHAPTER 5.55 OF THE PALM SPRINGS
MUNICIPAL CODE REGARDING "ADULT-USE CANNABIS
RELATED BUSINESSES AND ACTIVITIES"
City Attorney's Summary
This Ordinance, in accord with the Medical and Adult-Use Cannabis
Regulation and Safety Act, adopted by the State of California on June 27,
2017, updates the City's medical cannabis related businesses and
activities ordinance, and provides for a new chapter of the Palm Springs
Municipal Code regulating adult-use cannabis businesses including
dispensaries, transportation and distribution services, manufacturing,
cultivation, and testing, to operate in the City subject to compliance with all
applicable city and state laws.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS:
A. The City of Palm Springs is a charter city organized pursuant to Article XI
of the California Constitution and pursuant to the authority granted the City by Sections
5 and 7 of Article XI, the City has the power to make and enforce within its limits all
ordinances and regulations in respect to municipal affairs not in conflict with general
laws and its own charter. Such police powers include without limitation the ability to
adopt comprehensive zoning regulations and regulations upon the use of land and
property within the City.
B. Pursuant to Article XI, Section 7 of the California Constitution, the City of
Palm Springs may adopt and enforce ordinances and regulations not in conflict with
general laws to protect and promote the public health, safety, and welfare of its citizens.
C. The Federal Controlled Substances Act (21 U.S.C. § 801 et seq.)
prohibits, except for certain research purposes, the possession, distribution, and
manufacture of cannabis, and there is no medical necessity exception to prosecution
and conviction under the Controlled Substances Act.
D. The Federal Government has issued guidelines for states and local
governments that have enacted laws authorizing cannabis related conduct, requiring
them to implement strong and effective regulatory and enforcement systems that will
address the threat that medical and adult-use cannabis activity could pose to public
safety, public health, and other law enforcement interests.
E. California statutes specify that, except as authorized by law, the
possession, cultivation, possession for sale, transportation, administration, or furnishing
of cannabis are State criminal violations. State law further punishes one who maintains
07
Ordinance No.
Page 2
a place for the purpose of unlawfully selling, using, or furnishing, or who knowingly
makes available a place for storing, manufacturing, or distributing cannabis.
F. On November 5, 1996, California voters approved Proposition 215, the
Compassionate Use Act of 1996 (CUA), codified at California Health and Safety Code
section 11362.5, the intent of which was to enable persons with a demonstrated need
for marijuana for medical/therapeutic purposes, as recommended by a health care
provider, to obtain and to use marijuana, or marijuana-derived compounds, under
limited and specified circumstances. On January 1, 2004, Senate Bill 420 codified as
California Health and Safety Code section 11362.7 et seq. and entitled the "Medical
Marijuana Program Act" (MMPA) became law to clarify the scope of the CUA.
G. The CUA is limited in scope in that it only provides a defense from criminal
prosecution for possession and cultivation of medical cannabis to qualified patients and
their primary caregivers. The MMPA also is limited in scope in that it establishes a
statewide identification program and affords qualified patients, persons with
recommendation cards, and their primary caregivers, an affirmative defense to certain
enumerated criminal sanctions that would otherwise apply to transporting, processing,
administering, or distributing cannabis. On November 5, 1996, California voters
approved Proposition 215, the Compassionate Use Act of 1996 (Health and Safety
Code Section 11362.5, "CUA"), an initiative that exempted certain patients and their
primary caregivers from criminal liability under State law for the possession and
cultivation of cannabis for medical purposes. One of the stated purposes of the CUA is
to ensure that seriously ill Californians have the right to obtain and use cannabis for
medical purposes where that medical use has been recommended by a physician.
H. On January 1 , 2004, Senate Bill 420, the Medical Marijuana Program Act
(Health and Safety Code Sections 11362.7-11362.83, WMP"), became law to clarify
the scope of the CUA and to facilitate the prompt identification of qualified patients and
their primary caregivers.
I. The California Attorney General's 2008 Guidelines for the Security and
Non-Diversion of Marijuana Grown for Medical Use ("Guidelines") recognizes that
cultivation or other concentration of cannabis in any location or premises without
adequate security increases the risk that nearby homes or businesses may be impacted
negatively by nuisance activity such as loitering, or more significant levels of crime; and
J. The California Supreme Court has made clear that neither the CUA nor
the MMPA expressly or impliedly preempts the authority of cities or counties, under their
traditional land use and police powers, to allow, restrict, limit, or entirely exclude
facilities that distribute medical cannabis. The MMPA allowed cities and counties to
adopt local ordinances that regulate the location, operation, or establishment of medical
cannabis collectives and to enforce such ordinances. (City of Riverside v. Inland Empire
Patients Health and Wellness Center, Inc. (2013) 56 Cal.4th 729; Health and Safety
Code section 11362.83). The same authority encompasses the regulation, operation, or
establishment of cannabis cultivation. (Mara) v. City of Live Oak (2013) 221 Cal.AppAth
975.)
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Ordinance No.
Page 3
K. On October 9, 2015, Governor Brown signed into law the Medical
Cannabis Regulation and Safety Act ("MCRSA") which consisted of three interrelated
pieces of legislation (SB 643, AB 243, and AB 266), intended to provide a
comprehensive regulatory framework for the licensing, control, and taxation of medical
cannabis related businesses in California. MCRSA expressly protects a .City's local
licensing practices, zoning authority, and other local actions taken under the City's
constitutional municipal and police powers. MCRSA contains statutory provisions that:
1. Allow local governments to enact ordinances expressing their intent to
allow or prohibit the cultivation of cannabis and their intent to administer or not
administer a conditional permit program pursuant to California Health and Safety
Code section 11362.777 for the cultivation of cannabis;
2. Expressly provide that the Act does not supersede or limit local authority
for local law enforcement activity, enforcement of local ordinances or
enforcement of local permit or licensing requirements regarding cannabis per
California Business and Professions Code section 19315(a);
3. Expressly provide that the Act does not limit the civil or administrative
authority or remedies of a local government provision of law regarding cannabis
including, but not limited to, a local government's right to make and to enforce
within its limits all regulations not in conflict with general laws per California
Business and Professions Code section 19316(c);
4. Specifically requires, as a condition of state licensure, compliance with
any and all local requirements for all cannabis-related operations.
L. On November 8, 2016, the voters of California approved the Control,
Regulate, and Tax Adult Use of Marijuana Act (AUMA) which authorizes a person 21
years of age or older to possess and use up to 28.5 grams of cannabis and up to 8
grams of concentrated cannabis, and to possess up to 6 living cannabis plants and the
cannabis produced by those plants, subject to certain restrictions, as specified.
M. On June 27, 2017, Governor Brown signed into law the Medical and Adult
Use Cannabis Regulation and Safety Act ("MAUCRSA") which consisted of a piece of
legislation (SB94) intended to provide a comprehensive regulatory framework for the
licensing, control, and taxation of medical and adult-use cannabis related businesses in
California. MAUCRSA expressly protects a City's local licensing practices, zoning
authority, and other local actions taken under the City's constitutional municipal and
police powers. MAUCRSA contains statutory provisions that:
1. Allow local governments to enact ordinances expressing their intent to
allow or prohibit the cultivation of cannabis and their intent to administer or not
administer a conditional permit program pursuant to California Health and Safety
Code section 11362.777 for the cultivation of cannabis;
2. Expressly provide that the Act does not supersede or limit local authority
for local law enforcement activity, enforcement of local ordinances or
enforcement of local permit or licensing requirements regarding cannabis per
California Business and Professions Code section 19315(a);
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Ordinance No.
Page 4
3. Expressly provide that the Act does not limit the civil or administrative
authority or remedies of a local government provision of law regarding cannabis
including, but not limited to, a local government's right to make and to enforce
within its limits all regulations not in conflict with general laws per California
Business and Professions Code section 19316(c);
4. Specifically requires, as a condition of state licensure, compliance with
any and all local requirements for all cannabis-related operations.
N. It is the purpose and intent of Chapter 5.55 to accommodate businesses
allowing adult use of cannabis while protecting the health, safety, and general welfare of
the residents and businesses within the unincorporated areas of City of Palm Springs
and comply with State law and Federal guidelines.
O. It is the intent of the City Council to have a strong and effective regulatory
and enforcement system with regard to adult-use cannabis that addresses threats to
public safety, health and other law enforcement interests through robust controls and
procedures that are effective in practice.
P. This Ordinance provides regulations for the local permitting of adult-use
marijuana operations under specified conditions in the unincorporated areas of the City.
O. Chapter 5.55 is intended to establish criteria for issuing local permits
pursuant to the MAUCRSA and to establish an effective regulatory and enforcement
system consistent with the guidance issued by the United States Department of Justice.
R. Marijuana remains an illegal substance under the Federal Controlled
Substances Act, 21 USC 801 et seq., which makes it unlawful for any person to
cultivate, manufacture, distribute, dispense, or possess with intent to manufacture,
distribute, or dispense cannabis. The Federal Controlled Substances Act contains no
statutory exemption for the cultivation of cannabis for medical purposes. Federal law
lists cannabis as a Schedule I drug, meaning that the federal government contends
cannabis has a high potential for abuse, cannabis has no currently accepted medical
use in treatment, and there is a lack of accepted safety for use under medical
supervision.
S. Despite this classification and treatment under federal law, federal
executive and law enforcement agencies have issued memoranda and other guidelines
allowing for the development of state-specific regulatory schemes that include the
provision of cannabis and cannabis-derived products, as long as the administration of
those schemes is consistent with the aims of federal law.
T. The City Council recognizes, upon consultation with law enforcement, that
supply chains for medical and adult-use cannabis and cannabis-related products as
they currently exist, in the absence of state and local regulatory schemes, can and do
benefit criminal elements to the detriment of residents of the State of California, the
County of Riverside, and very likely the City of Palm Springs, without full regard for
public safety, health, and welfare issues.
U. The City Council recognizes the individual freedom and privacy interests
that surround the choice of what to take into one's body, following consultation with
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Ordinance No.
Page 5
one's chosen health care provider(s), and for one's own health-related purposes, and in
a manner that is responsible in its impacts on others in the community, including
children.
V. The City Council also recognizes its obligation to provide guidance on
appropriate community standards of health, safety, and welfare, and, where
appropriate, to protect residents—especially residents of particularly vulnerable
populations including children and senior citizens—from violation and abuse of those
community standards.
W. The City Council desires to establish reasonable regulations on the
operation of adult-use cannabis related businesses which are intended to operate in
conjunction with the zoning and land use regulations of the City of Palm Springs, and
which are intended to address the negative impacts, nuisance impacts, and criminal
impacts of unregulated cannabis-related businesses.
X. Cannabis related businesses will be subject to the zoning and land use
regulations of the zoning district in which such business establish and operate, as set
forth in the Palm Springs Zoning Ordinance, and as otherwise established by the City;
and
Y. The City Council finds that the activities permitted under this ordinance are
consistent with and implement the goals and policies of the Palm Springs General Plan.
Z. The City Council finds that the adoption of this ordinance is exempt from
environmental review under the California Environmental Quality Act ("CEQK) pursuant
to the following provisions of the CEQA Guidelines, 14 Cal. Code of Regulations,
Chapter 3:
1 . The ordinance is exempt under Section 15061(b) (3) because it can be
seen with certainty that there is no possibility that the activity in question may
have a significant effect on the environment. The number of medical and adult-
use cannabis businesses within the various categories provided under State Law
and this Ordinance will be limited and the medical and adult-use cannabis
businesses will have impacts that are similar to the farming, manufacturing,
distribution, laboratory, and transportation and distribution activities already
authorized within the City. Furthermore, the Ordinance contains requirements
that prevent any potential impacts on the environment that may be unique to
businesses involving adult-use or medical cannabis. For example, the Ordinance
establishes prohibitions on nuisance odors, glare, excess energy usage, and
establishes safety protections to prevent crime or deterioration of the business
area into blight, prohibition on usages of hazardous chemicals, and a prohibition
on usage of excess water in violation of drought laws etc. Further, there is no
possibility that this Ordinance would create cumulative impacts that are
significant because this Ordinance does not authorize a total number of
businesses in the City than would have been otherwise authorized, does not
authorize construction or other related activities or any other activities that are
not already permitted, except that the Ordinance allows the same activities but
with a different material (adult-use or medical cannabis) that is being grown, sold,
5 e �
Ordinance No.
Page 6
transported, or otherwise utilized in some form; there are no other significant
impacts that could occur as a result of this ordinance, and there are no unusual
circumstances that would cause any such significant impacts;
2. The Ordinance is also exempt under Section 15183 (projects consistent
with a community plan, general plan, or zoning) since the types of businesses
permitted by the Ordinance are consistent with those contemplated by general
plan and zoning, such as farming, manufacture, and distribution of other
agriculture products and/or products to be used as pharmaceuticals;
3. The Ordinance is also exempt under CEQA Guidelines Section 15301
(existing facilities) since permitted medical cannabis business under the
Ordinance may locate in existing facilities, and any additions to structures would
be expected to be also exempt under 15301; and
4. The Ordinance is exempt under Section 15303 (new construction or
conversion of small structures). The businesses will be established in an urban
area, and given the build out of the existing city, and sufficient existing leasable
property, the amount of construction that would occur is minimal to non-existent,
and any such construction would be less than the thresholds established in
Section 15303.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS
ORDAINS:
SECTION 1. Chapter 5.45 of the Palm Springs Municipal Code is amended to
read:
Chapter 5.45
MEDICAL CANNABIS RELATED BUSINESSES AND ACTIVITIES
Section 5.45.010 Purpose and Intent.
Section 5.45.020 Legal Authority.
Section 5.45.030 Prohibition on Cultivation and Business Unless Authorized.
Section 5.45.040 Compliance with Laws.
Section 5.45.050 Definitions.
Section 5.45.055 Commercial Medical Cannabis Permit Approvals Subject to
Approval of Ballot Initiative.
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Ordinance No.
Page 7
Section 5.45.060 Medical Cannabis Business Permit Required to Engage in
Medical Cannabis Business.
Section 5.45.070 Commercial Medical Cannabis Permit Required.
Section 5.45.080 Commercial Medical Cannabis Permit Application Process.
Section 5.45.085 Commercial Medical Cannabis Permit Application Priority for
Current Medical Cannabis Cooperative and Collective.
Section 5.45.090 Review of Application for Commercial Medical Cannabis
Permit.
Section 5.45.095 Required Findings and Conditions for Dispensaries.
Section 5.45.096 Required Findings and Conditions for Cultivation.
Section 5.45.097 Required Findings and Conditions for Manufacturing.
Section 5.45.098 Required Findings and Conditions for Testing Facilities.
Section 5.45.099 Required Findings and Conditions for Transportation and
Distribution Facilities.
Section 5.45.100 Commercial Medical Cannabis Permit Renewals.
Section 5.45.110 Compliance with Laws.
Section 5.45.120 Fees and Charges.
Section 5.45.130 Transfers of Commercial Medical Cannabis Permits.
Section 5.45.140 Requirements Before Permittee May Commence Operations.
Section 5.45.200 Commercial Medical Cannabis Operating Requirements.
Section 5.45.205 Miscellaneous Operating Requirements.
Section 5.45.210 Security Measures.
Section 5.45.220 Packaging and Labeling Requirements.
Section 5.45.400 General Authority of City Manager.
Section 5.45.410 Suspension or Revocation of Commercial Medical Cannabis
Permit.
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Ordinance No.
Page 8
Section 5.45.420 Service.
Section 5.45.430 Enforcement and Penalties.
Chapter 5.45 MEDICAL CANNABIS RELATED BUSINESSES AND
ACTIVITIES
5.45.010 Purpose and Intent.
A. It is the purpose and intent of this Chapter to accommodate the needs of
medically-ill persons in need of cannabis for medical purposes, as advised and
recommended by their health care provider(s), while imposing regulations on the use of
land to protect the City's neighborhoods, residents, and businesses from negative
impacts. It is a further purpose and intent of this Chapter to regulate the cultivation,
manufacturing, processing, testing, transportation, and distribution, of cannabis and
cannabis-related products in a manner which is responsible, which protects the health,
safety, and welfare of the residents of Palm Springs, and to enforce rules and
regulations consistent with State Law. In part to meet these objectives, an annual permit
shall be required in order to own and/or to operate a medical cannabis business within
Palm Springs. Nothing in this Chapter is intended to authorize the possession, use, or
provision of cannabis for purposes that violate state or federal law. The provisions of
this Chapter are in addition to any other permits, licenses, and approvals that may be
required to conduct business in the City, and are in addition to any permits, licenses and
approval required under state, county, or other law.
B. It is the stated intent of this Chapter to regulate medical cannabis activity
in the City of Palm Springs concurrently with the State of California.
C. All applications, proposals, requests for medical cannabis related
businesses and activity, and any permits or approvals related to such medical cannabis
businesses and activity, shall be processed, reviewed, and administered pursuant to the
provisions of this Chapter.
D. Each medical cannabis related business or activity allowed under the
provisions of this Chapter constitutes an activity or business that involves planting,
cultivating, harvesting, transporting, dispensing, delivering, providing, manufacturing,
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compounding, converting, processing, preparing, storing, packaging, or testing any part
of the Cannabis plant for medical purposes.
5.45.020 Legal Authority.
Pursuant to Sections 5 and 7 of Article XI of the California Constitution,
and the provisions of the Medical and Adult-Use Cannabis Regulation and Safety Act
(hereinafter "MAUCRSA"), the City of Palm Springs is authorized to adopt ordinances
that establish standards, requirements and regulations for local licenses and permits for
cannabis and cannabis-related activity. Any standards, requirements, and regulations
regarding health and safety, security, and worker protections established by the State of
California, or any of its departments or divisions, shall be the minimum standards
applicable in the City of Palm Springs to cannabis, and/or cannabis-related activity.
5.45.030 Prohibition on Cultivation and Business Unless Authorized.
Except as specifically authorized in this Chapter or Chapter 5.55, the
cultivation, possession, manufacture, processing, storing, laboratory testing, labeling,
transporting, dispensing, distribution, delivery, or sale of cannabis or a cannabis product
is expressly prohibited in the City of Palm Springs.
5.45.040 Compliance with Laws.
It shall be the responsibility of the owners and the operators of the medical
cannabis business to ensure that the medical cannabis business is, at all times,
operating in a manner compliant with all applicable federal, state, and local laws, any
regulations promulgated thereunder, the Guidelines, any subsequently enacted State
Law or regulatory, licensing, or certification requirements, and any specific, additional
operating procedures or requirements which may be imposed as conditions of approval
of the medical cannabis business permit. Nothing in this Chapter shall be construed as
authorizing any actions which violate federal or State Law with regard to the operation
of a medical cannabis business.
5.45.050 Definitions.
The following definitions of terms shall apply to this Chapter, unless the
context requires otherwise. Any reference to California statutes includes any regulations
promulgated thereunder and is deemed to include any successor or amended version of
the referenced statute or regulatory provision.
"Applicant" means a person eighteen (18) years of age or older who has
submitted an application for a permit or renewal of a permit issued pursuant to this
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Chapter. If the applicant is an entity and not a natural person, applicant shall include all
persons having a twenty (20) percent or more financial interest in the entity.
"Application" means that form provided by the City Manager in accordance
with this Chapter for the purpose of seeking a commercial medical cannabis permit.
"Cannabinoid" or"phytocannabinoid" means a chemical compound that is
unique to and derived from cannabis.
"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 that term is 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 manufactured cannabis that has
undergone a process to concentrate one or more active cannabinoids, thereby
increasing the product's potency. Resin from granular trichomes from a cannabis plant
is a concentrate for purposes of this chapter. A cannabis concentrate 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.
"Canopy" means all areas occupied by any portion of a cannabis plant,
inclusive of all vertical planes, whether contiguous or noncontiguous on any one site.
"Caregiver" or "primary caregiver" has the same meaning as that term is
defined in Section 11362.7 of the Califomia Health and Safety Code.
"Certificate of accreditation" means a certificate issued by an accrediting
body to a licensed testing laboratory, entity, or site to be registered in the state.
"Commercial medical cannabis activity" means the cultivation, possession,
manufacture, processing, storing, laboratory testing, labeling, transporting, distribution,
delivery, or sale of medical cannabis or a medical cannabis product. "Commercial
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medical cannabis activity" does not include a qualified patient who cultivates one
hundred (100) square feet total canopy area or less exclusively for his or her personal
use or who possesses, stores, manufactures, or transports cannabis exclusively for his
or her personal medical use but who does not provide, donate, sell, or distribute
cannabis to any other person. "Commercial medical cannabis activity' also does not
include a primary caregiver who cultivates one hundred (100) square feet total canopy
area or less exclusively for the personal medical purposes for each specified qualified
patient, up to five hundred (500) square feet, for whom he or she is the primary
caregiver or who possesses, stores, manufactures, transports, donates, or provides
cannabis exclusively for the personal medical purposes of no more than five specified
qualified patients for whom he or she is the primary caregiver, but who does not receive
remuneration for these activities except for compensation in full compliance with Section
11362.765(c) of the California Health and Safety Code, as it may be amended.
"Commercial medical cannabis permit" means a permit issued by the City
to an applicant to perform commercial medical cannabis activities under this Chapter.
"Commercial medical cannabis operation" means an entity that engages in
commercial cannabis activities.
"Cultivation" means any activity involving the planting, growing,
harvesting, drying, curing, grading, or trimming of medical cannabis. Within the
definition of cultivation, the following specific license types, corresponding to state
cultivator license types set forth in California Business and Professions Code Section
26050), apply:
1. Type 1 or "specialty outdoor" means outdoor cultivation using no artificial
lighting and having no more than fifty (50) mature plants or five thousand (5,000) square
feet of total canopy size whichever is less;
2. Type 1A or "specialty indoor" means cultivation using exclusively artificial
lighting, is entirely contained within a structure, and having no more than five thousand
(5,000) square feet of total canopy size;
3. Type 1 B or "specialty mixed-light" means cultivation using a combination of
natural and supplemental artificial lighting and having no more than five thousand
(5,000) square feet of total canopy size;
4. Type 2 or "small outdoor" means outdoor cultivation using no artificial
lighting and having a total canopy size between five thousand one (5,001) and ten
thousand (10,000) square feet;
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5. Type 2A or "small indoor' means indoor cultivation exclusively using
artificial lighting and having a total canopy size between five thousand one (5,001) and
ten thousand (10,000) square feet;
6. Type 2B or "small mixed-light" means cultivation using a combination of
natural and supplemental artificial lighting and having a total canopy size between five
thousand one (5,001) and ten thousand (10,000) square feet;
7. Type 3 or "outdoor ' means outdoor cultivation using no artificial lighting
and having a total canopy area between ten thousand one (10,001) square feet and one
acre;
8. Type 3A or "indoor' means indoor cultivation using exclusively artificial
lighting and having a total canopy area between ten thousand one (10,001) and twenty-
two thousand (22,000) square feet;
9. Type 3B or "mixed-light" means cultivation using a combination of natural
and supplemental artificial lighting and having a total canopy area of between ten
thousand one (10,001) and twenty-two thousand (22,000) square feet; and
10. Type 4 or "nursery" means cultivation of medical cannabis solely as a
nursery.
"Cultivation site" means a location where medical cannabis is planted,
grown, harvested, dried, cured, graded, or trimmed, or where all or any combination of
those activities occurs, and where the operator holds a valid medical cannabis business
permit for cultivation from the City of Palm Springs and a valid state license to cultivate
cannabis as required by State Law.
"Delivery" means the commercial transfer of medical cannabis or medical
cannabis products from a dispensary, up to an amount determined to be authorized by
the State of California, or any of its departments or divisions, to a primary caregiver or a
qualified patient as defined in Section 11362.7 of the California Health and Safety Code,
or a testing laboratory. "Delivery" also includes the use by a dispensary of any
technology platform owned and controlled by the dispensary, or independently licensed
by the State of California under MAUCRSA that enables anyone to arrange for or
facilitate the commercial transfer by a licensed dispensary of medical cannabis or
medical cannabis products.
"Dispensary" means a premises 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 (whether fixed or mobile) that delivers, pursuant to MAUCRSA,
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medical cannabis and medical cannabis products as part of a retail sale, and where the
operator holds a valid medical cannabis business permit from the City of Palm Springs
authorizing the operation of a dispensary, and a valid state license as required by State
Law to operate a dispensary.
"Dispensing" means any activity involving the retail sale of medical
cannabis or medical cannabis products from a dispensary.
"Distribution" means the procurement, sale, and transport of medical
cannabis and medical cannabis products between entities licensed pursuant to this
chapter.
"Distributor" means a person holding a valid medical cannabis business
permit for distribution issued by the City of Palm Springs, and, a valid state medical
license for distribution, required by state law to engage in the procurement, sale, and
transport of cannabis and cannabis products between licensees.
"Dried flower" means all dead medical cannabis that has been harvested,
dried, cured, or otherwise processed, excluding leaves and stems.
"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 (commencing with Section
32501) of the Food and Agricultural Code. An edible medical 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.
"Fully enclosed and secure structure" or "greenhouse" means a space
within a building or other structure which has a complete roof enclosure supported by
connecting walls extending from the ground to the roof, which is secure against
unauthorized entry, provides complete visual screening, and which is accessible only
through one or more lockable doors and is inaccessible to minors and provided such
"greenhouse" is constructed to usual and customary standards and approved by the
Building Official.
"Health Officer" means the County of Riverside Health Officer or the
designee of the County of Riverside Health Officer or any other person exercising the
duties of health officer for the City.
"Identification card" has the same definition as in Section 11362.7 of the
California Health and Safety Code, as it may be amended.
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"Licensee" means a person issued a state license under Chapter 3.5
(commencing with Section 26000) of the California Business and Professions Code, to
engage in a commercial medical cannabis activity.
"Licensing authority" means the state agency responsible for the issuance,
renewal, or reinstatement of a license for commercial medical cannabis activities, or the
state agency authorized to take disciplinary action against the license.
"Live plants" means living medical cannabis flowers and plants, including
seeds, sprouts, immature plants (including unrooted clones), and vegetative stage
plants.
"Manufactured cannabis" or "cannabis product" means raw cannabis that
has undergone a process whereby the raw agricultural product has been transformed
into a concentrate, an edible product, or a topical product intended for internal
consumption or topical application.
"Manufacturer" means a person that conducts the production, preparation,
propagation, or compounding of manufactured medical cannabis, as defined in this
section, or medical cannabis products either directly or indirectly or by extraction
methods, or independently by means of chemical synthesis at a fixed location that
packages or repackages medical cannabis or medical cannabis products or labels or re-
labels its container, where the operator holds (1) a valid medical cannabis business
permit for manufacturing from the City of Palm Springs and (2) after January 1, 2018 or
as sooner as permitted by the state granting agency, department or division, a valid
state license for manufacturing pursuant to MAUCRSA.
"Marijuana" means "cannabis," as that term is defined in this Section.
"MAUCRSA" means the Medical and Adult-Use Cannabis Regulation and
Safety Act, consisting of three interrelated pieces of legislation (SB 643, AB 243, and
AB 266), as may be amended from time to time, a comprehensive regulatory framework
for the licensing, control, and taxation of medical cannabis related businesses in
California.
"Medical cannabis," "medical cannabis product," or "cannabis product"
means a product containing cannabis, including, but not limited to, concentrates and
extractions, intended to be sold for use by medical cannabis patients in California
pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section
11362.5 of the California Health and Safety Code. For the purposes of this Chapter,
"medical cannabis" does not include "industrial hemp' as defined by Section 81000 of
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the California Food and Agricultural Code or Section 11018.5 of the California Health
and Safety Code.
"Medical cannabis activity" includes cultivation, manufacture, processing,
laboratory testing, transporting, transportation and distribution, distribution, or sale of
medical cannabis or a medical cannabis product, within the meaning of California
Business and Professions Code 26000 et seq.
"Medical cannabis business" means any business or operation which
engages in medical cannabis activity.
"Medical cannabis permit" means a regulatory permit issued by the City of
Palm Springs pursuant to this Chapter to a medical cannabis business, and is required
before any medical cannabis activity may be conducted in the City. The initial permit
and annual renewal of a medical cannabis business permit is made expressly
contingent upon the business' ongoing compliance with all of the requirements of this
Chapter and any regulations adopted by the City governing the medical cannabis
activity at issue.
"Nursery" means a licensee that produces only clones, immature plants,
seeds, and other agricultural products used specifically for the planting, propagation,
and cultivation of medical cannabis.
"Owner' means the person, firm, corporation, or partnership that owns
property or is in possession thereof under a contract to purchase or under a lease, by a
person or persons, firm, corporation, or partnership, individually, jointly, in common, or
in any other manner whereby such property is under single or unified control. The term
"Owner' does not include a lessor of real property subject to a ground lease of ten or
more years where the Owner as lessor does not retain any interest or right of control in
any building constructed on the real property subject to such ground lease.
"Patient" or "qualified patient" shall have the same definition as California
Health and Safety Code Section 11362.7 et seq., as it may be amended, and which
means a person who is entitled to the protections of California Health & Safety Code
Section 11362.5. For purposes of this ordinance, qualified patient shall include a person
with an identification card, as that term is defined by California Health and Safety Code
Section 11362.7 et seq.
"Permittee" means a person issued a City permit under this Chapter.
"Person" means an individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or
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any other group or combination acting as a unit and includes the plural as well as the
singular number.
"Premises" means the building or greenhouse in which commercial
medical cannabis activities are operated and, in addition, any accessory structures and
appurtenant areas.
"Primary caregiver" has the same definition as in Section 11362.7 of the
California Health and Safety Code, as it may be amended.
"Property owner" means the individual or entity who is the record owner of
the subject property where commercial medical cannabis activities are located or are
proposed to be located. The term "Property Owner' does not include a lessor of real
property subject to a ground lease of ten or more years where the Owner as lessor does
not retain any interest or right of control in any building constructed on the real property
subject to such ground lease.
"Qualified patient" has the same definition as in Section 11362.7 of the
California Health and Safety Code, as it may be amended.
"State Law" means all statutes, rules, and regulations relating to the
cultivation, manufacture, dispensing, sale, distribution, and transportation of Medical
Cannabis, as such statutes, rules, and regulations as may be amended from time to
time.
"State license," 'license," or "registration" means a state license issued by
the State of California, or one of its departments or divisions, under MAUCRSA to
engage in medical cannabis activity.
"Testing laboratory" means a facility, entity, or site in the City that offers or
performs test 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; and
2. Registered with the California State Department of Public Health.
"Topical cannabis" means a product intended for external use. A topical
cannabis product is not considered a drug as defined by Section 109925 of the
California Health and Safety Code.
"Transport" means the transfer of medical cannabis or medical cannabis
products from the permitted business location of one licensee to the permitted business
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location of another licensee, for the purposes of conducting commercial medical
cannabis activity authorized pursuant to the California Business and Professions Code
Section 26000 et seq., as may be amended from time to time.
"Transporter' means a person issued a state license, and a medical
cannabis business permit by the City of Palm Springs, authorizing the transport of
medical cannabis or medical cannabis products in amounts authorized by the State of
California, or by one of its departments or divisions under MAUCRSA.
5.45.055 Commercial Medical Cannabis Permit Approvals Subject to Approval of
Ballot Initiative.
No new Application arising from or related to any Commercial medical
cannabis activity or in relation to any Commercial medical cannabis operation will be
processed or evaluated, and no Commercial medical cannabis permit, license, or
authorization will be issued by the City or approved hereunder unless and until the City-
sponsored ballot measure providing for taxation in relation to Cannabis business, e.g.,
upon Commercial medical cannabis activity, is approved by the qualified voters of the
City of Palm Springs on November 7, 2017. In the event that the aforementioned City-
sponsored ballot measure does not pass, Permittees, and/or their legal successors and
affiliates under Chapter 5.35 may continue to operate as Medical Cannabis
Cooperatives and Collectives pursuant to, and subject to all requirements of Chapter
5.35.
5.45.060 Medical Cannabis Business Permit Required to Engage in Medical
Cannabis Business.
No person may engage in any medical cannabis business or in any
medical cannabis activity within the City of Palm Springs including cultivation,
manufacture, processing, laboratory testing, transporting, dispensing, distribution, or
sale of medical cannabis or a medical cannabis product unless the person (1) has a
valid medical cannabis permit from the City of Palm Springs and (2) is currently in
compliance with all applicable state and local laws and regulations pertaining to the
medical cannabis business and the medical cannabis business activities, including the
duty to obtain any required state licenses. Medical Cannabis Collectives or
Cooperatives previously approved under the provisions of Chapter 5.35 of this Code
may continue to operate as a collective or cooperative as provided previously in Section
5.35.100 of this Code and are hereby granted permits for cultivation, dispensing,
manufacturing, and transportation and distribution under the provisions of this Chapter
for calendar year 2017 subject to providing all information, documentation, submissions,
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and evidence required pursuant to Sections 5.45.080 and otherwise complying with the
operational requirements of this Chapter, regulations adopted hereunder, and the
provisions of State Law.
5.45.070 Commercial Medical Cannabis Permit Required.
A. Any person who intends to engage in a commercial medical cannabis
activity shall obtain a commercial medical cannabis permit for the fixed location in which
the commercial medical cannabis activity is to occur.
B. It is unlawful for any person to conduct, engage in or allow to be
conducted or engaged in a commercial medical cannabis activity within the corporate
limits of City of Palm Springs, unless the City has issued such person a permit under
this Chapter and the permit is in effect. Notwithstanding the above, the permits issued
under this Chapter do not provide any protection or immunity for any person from State
or Federal laws, or from prosecution pursuant to any applicable State or Federal laws.
C. Upon implementation of state regulations pursuant to State Law, a valid
license from the State shall be required to operate any commercial medical cannabis
activity.
D. The fact that an applicant possesses other types of State or City permits
or licenses, shall not exempt the applicant from obtaining a commercial medical
cannabis permit under this Chapter, nor shall the terms and conditions of any other
such permit or license modify the requirements of a permit granted under this Chapter,
except that the commercial medical cannabis permit must be consistent with the land
use entitlement issued by the City pursuant to Title 20 or Title 21 of the Palm Springs
Municipal Code.
E. The applicant must receive all necessary land use entitlements as required
by the Palm Springs Zoning Ordinance before the City Manager will issue a commercial
medical cannabis permit under this Chapter.
F. The following persons are exempt from the requirements of this Chapter:
1. A qualified patient who cultivates one hundred (100) square feet total
canopy area or less of cannabis exclusively for personal medical use but who does not
provide, donate, sell, or distribute cannabis to any other person; and
2. A primary caregiver who cultivates one hundred (100) square feet of total
canopy area or less exclusively for the personal medical purposes for each specified
qualified patient for whom he or she is the primary caregiver, up to five hundred (500)
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square feet, but who does not receive remuneration for these activities except for
compensation in full compliance with State Law.
3. Qualified patients and/or primary caregivers shall, upon request, provide
appropriate documentation to law enforcement demonstrating that they have a valid
doctor's recommendation to use cannabis for medical purposes.
5.45.080 Commercial Medical Cannabis Permit Application Process.
A. Each application for the establishment of a commercial medical cannabis
permit shall be filed with the City Clerk on the form and in the manner prescribed by the
City Manager. The City Manager shall be responsible for administering the application
process as set forth in this Chapter. All applications for permits required pursuant to this
Chapter shall be made upon current forms prescribed by the City Manager. Applications
submitted to the City Manager may include, but not be limited to, new business
premises, transfers of ownership, change of locations, premises modifications, and
changes in trade name.
B. All applications must include application and permitting fees as established
by resolution adopted by the City Council as amended from time to time.
C. A permit issued by the City Manager constitutes a revocable privilege. The
burden of proving an Applicant's qualifications for a permit rests at all times with the
Applicant.
D. The Applicant or its authorized agent must provide a surety bond, if
applicable, and prove that all tax returns related to the business have been timely filed.
E. In all cases, the application must be complete in every material detail and
shall contain, without limitation, the following documentation:
1. All applicants' names, mailing addresses, and if available, e-mail
addresses.
2. A twenty-four (24) hour or nighttime contact phone number.
3. The physical address and assessor's parcel number(s) (APN or APNs) of
the property upon which the proposed commercial medical cannabis operation will be
located.
4. Proof of ownership of premises, or if the premises on which the
commercial medical cannabis operation is to occur is rented or leased, written
permission from the property owner containing the property owner's notarized signature
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that authorizes the tenant or lessee to engage in commercial medical cannabis activities
at the site.
5. A "to scale' diagram of the premises, showing, without limitation, a site
plan, building layout, all entry ways and exits to the facility, loading zones and all areas
in which medical cannabis and medical cannabis products will be stored, grown or
dispensed.
6. If the applicant is a business entity or any form of entity, information
regarding the entity, including, without limitation, the name and address of the entity, its
legal status, and proof of registration with, or a certificate of good standing from, the
California Secretary of State, as applicable.
7. The full name, date of birth, social security number, present address and
telephone number for all owners, supervisors, employees, and persons having a twenty
(20) percent or more financial interest in the commercial medical cannabis activity that
is the subject of the application or, if the applicant is an entity, having a twenty (20)
percent or more financial interest in the entity.
8. All land all owners, supervisors, employees, and persons having a twenty
(20) percent or more financial interest must submit fingerprints and other necessary
information for a criminal background check.
9. Written proof(i.e., California driver's license, California identification card,
or certified birth certificate) that all applicants, property owners, supervisors, and
employees are eighteen (18) years of age or older.
10. The names and addresses of any other commercial medical cannabis
operations currently being operated by the applicant, or that had previously been
operated by the applicant and a statement of whether the authorization for any such
operation had been revoked or suspended and, if so, the reason therefor.
11. A full description of the proposed activities and products of the commercial
medical cannabis operation.
12. A description of the type of State license(s) that will be required for the
proposed operations pursuant to California Business and Professions Code Section
26000 et seq., including a description of the proposed total canopy area of any
cultivation or nursery operation.
13. A detail of the procedures to be utilized at the premises including a
description of how chemicals, pesticides and fertilizers will be stored, handled, used and
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disposed of; and if applicable, manufacturing methods, the transportation process,
inventory procedures, and quality control procedures.
14. Proposed hours of operation.
15. A waste disposal plan.
16. If applicable, provide the applicant's seller's permit number issued
pursuant to Part 1 (commencing with Section 6001) of Division 2 of the California
Revenue and Taxation Code or indicate that the applicant is currently applying for a
seller's permit.
17. A statement by the applicant that it has the ability to comply with all laws
regulating businesses in the State of California and that it shall maintain compliance
during the term of the permit.
18. Authorization for the City, its agents and employees to seek verification of
the information contained in the application.
19. Certification, under penalty of perjury, that all the information contained in
the application is true and correct.
F. Nothing in this Section is intended to limit the City Managers ability to
request additional information the City Manager deems necessary or relevant to
determining an Applicant's suitability for a permit or a renewal of a permit under this
Chapter. Each Applicant shall provide any additional information required that the City
Manager may request to process and fully investigate the application. The additional
information must be provided to the City Manager no later than seven days of the
request unless otherwise specified by the City Manager. Failure to provide such
additional information by the requested deadline may result in denial of the application
or renewal or revocation or suspension of a permit.
G. Based on the type of commercial medical cannabis activities proposed,
the City Manager may require the following additional information:
1. Medical Cannabis Dispensary. In reviewing an application to dispense
medical cannabis or medical cannabis products, the City Manager may request
operational plans detailing how operations will comply with federal enforcement
priorities.
2. Medical Cannabis Cultivation. In reviewing an application to cultivate
medical cannabis, the City Manager may request the following additional information:
a. Water conservation measures;
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b. Projected energy demand and proposed renewable energy generation
facilities;
C. Unique identifier, inventory, and quality control procedures; and
d. A floor plan identifying the location, dimensions, and boundaries of all
proposed canopy areas taking into account space needed for ongoing care of plants
and a description of the proposed method of physically delineating those boundaries at
the site.
3. Medical Cannabis Manufacturing. In reviewing an application to operate a
cannabis manufacturing facility, the City Manager may request the following additional
information:
a. Information on products used in the manufacturing process including the
cannabis supply chain, liquids, solvents, agents, and processes. Cannabis shall be
obtained from a licensed cultivator or licensed distributor operating in compliance with
all local and State Laws;
b. Storage protocol and hazard response plan;
C. Quality control measures; and
d. Any other information requested by the City Manager.
4. Medical Cannabis Testing Facilities. In reviewing an application to operate
a cannabis testing facility, the City Manager may request the following additional
information:
a. An operations plan detailing how cannabis will be received, secured,
tested, and destroyed upon completion;
b. Certificate of accreditation;
C. Proposed procedures for record keeping including chain of custody control
and certificate issuance; and
d. Any other information requested by the City Manager.
5. Medical Cannabis Transportation and Distribution Facility. In reviewing an
application to operate a cannabis transportation and/or distribution facility, the City
Manager may request any following additional information:
a. An operations plan detailing how, and from where, cannabis and cannabis
products will be received, how any storage, distribution, and transportation operations
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will be secured to prevent theft and trespass, and to whom the product will be
distributed;
b. Quality control inspections and requirements plan;
c. Truck parking and loading areas;
d. Storage and handling plans; and
e. Any other information requested by the City Manager.
H. All required application materials shall be prepared by the applicant and
submitted at the time of application.
I. All Applicants shall submit information to the City Manager in a full, faithful,
truthful, and fair manner. The City Manager may deny an application where the
Applicant made intentional or purposeful misstatements, omissions, misrepresentations,
or untruths in the application or in connection with the Applicant's background
investigation. This type of conduct may be considered as the basis for additional
administrative action against the Applicant and it may also be the basis for criminal
charges against the Applicant.
J. All application forms supplied by the City Manager and filed by an
Applicant for a permit, including attachments and any other documents associated with
the investigation, shall be accessible by the City Manager and any state or local law
enforcement agency for a purpose authorized by this Chapter or for any other state or
local law enforcement purpose.
K. Any applicant who operated any cannabis business activity in the City
without a permit issued from the City for such activity shall be deemed unqualified to
receive any cannabis permit for a business or activity under this Chapter and shall not
be issued a permit.
5.45.085 Commercial Medical Cannabis Permit Application Priority for Current
Medical Cannabis Cooperative and Collective.
Any Applicant who operated any permitted Medical Cannabis Cooperative and
Collective in the City under the provisions of Chapters 5.35 shall receive priority in
review, processing, and permitting over other Applicants in review and processing of
Applications. All such licensees shall be required to maintain their prior business entity
names and structures. Any successor entities must show continuity of ownership and
operations with the prior entity and license holder.
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All prior documentation and materials provided to the City under the provisions of
Chapters 5.35 can be applied to Applications for Adult-Use Cannabis Businesses under
the provisions of this chapter. Priority Applications for the City's existing Medical
Cannabis Cooperative and Collectives will be accepted by the City for the first 60 days
from when Applications are first made available to the public. After 5 p.m. Pacific Time
on the 60th day, the City will end this priority processing permanently. Any Applications
received after 60 days from when Applications are first made available will be deemed
new Applications and shall be eligible under non-priority processing, subject to all
requirements for new Commercial Medical Cannabis Activity.
5.45.090 Review of Application for Commercial Medical Cannabis Permit.
A. The City Manager shall review the application for a commercial medical
cannabis permit and associated documents and shall require, if he or she deems
necessary, additional information to complete the application. The City Manager may
deem the application incomplete if it does not contain all required information and
documents.
B. An application shall not be deemed complete unless all required
application fees have been paid.
C. Each commercial medical cannabis permit shall be granted for a one year
period and shall expire one year after the date of its issuance.
D. Upon review of a complete application for a commercial medical cannabis
permit, the City Manager may grant the application if:
1 . The proposed commercial medical cannabis activities will comply with all
the requirements of the State and the Palm Springs Municipal Code;
2. The applicant has received all necessary land use entitlements as required
by the Zoning Ordinance;
3. The proposed commercial medical cannabis activities will comply with all
provisions of this Chapter; and
4. If applicable, the applicant has obtained a valid seller's permit required
pursuant to Part 1 (commencing with Section 6001) of Division 2 of the California
Revenue and Taxation Code.
E. The City Manager shall deny any application that meets any of the
following criteria:
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1. The applicant has knowingly made a false statement of material fact or has
knowingly omitted a material fact from the application;
2. Any supervisor, employee, or persons having a twenty (20) percent or
more financial interest in the commercial medical cannabis activity has been convicted
of a felony or a drug related misdemeanor reclassified by Section 1170.18 of the
California Penal Code (Proposition 47) within the past ten (10) years. A conviction within
the meaning of this Section means a plea or verdict of guilty or a conviction following a
plea of nolo contendere;
3. Any person who is listed on the application is a licensed physician making
patient recommendations for medical cannabis pursuant to Section 11362.7 of the
California Health and Safety Code;
4. If applicable, the applicant failed to obtain or maintain a valid seller's permit
required pursuant to Part 1 (commencing with Section 6001) of Division 2 of the
California Revenue and Taxation Code;
5. Any person who is listed on the application is less than eighteen (18) years
of age;
6. The proposed commercial medical cannabis operation does not comply
with the provisions of this Chapter or State Law; or
7. The applicant has not received all necessary land use entitlements as
required by Palm Springs Zoning Code.
F. In the event the City Manager denies any application, the City Manager
shall specify in writing the reasons for the denial and notify the applicant that the
decision shall become final unless the permittee seeks an appeal pursuant to Chapter
2.05 of this Code within ten (10) calendar days of the date of service of the City
Manager's decision. Service of the decision shall be provided in accordance with the
requirements set forth in Chapter 2.05 of this Code.
5.45.095 Required Findings and Conditions for Dispensaries.
A. A permit for a medical cannabis dispensary shall not be granted by the
City Manager unless all of the following findings are made based on substantial
evidence:
1. The dispensary, as proposed, has demonstrated that it can and will comply
with all of the requirements of the State and City to operate a medical cannabis
dispensary.
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2. The dispensary complies with the locational requirements of the Zoning
Ordinance. The location of each medical cannabis collective or cooperative previously
approved pursuant to Chapter 5.35 shall be deemed an existing location subject to the
provisions of this Chapter.
3. The dispensary, as approved and conditioned, will not result in significant
unavoidable impacts on the environment.
4. The dispensary includes adequate measures that minimize, to the extent
feasible, nuisances to the immediate neighborhood and community including minimizing
the detection of odor from offsite, minimizing the effects of loitering, providing adequate
security measures, and not exceeding the Land Use Permit's limits on hours of
operation.
5. The dispensary will provide adequate measures that address the federal
enforcement priorities for cannabis activities including restricting drugged driving,
restricting access to minors, prohibiting use or possession of firearms for security
purposes at the premises, and ensuring that medical cannabis and medical cannabis
products are supplied from permitted and licensed sources.
B. In addition to any other required conditions and mitigation measures
approved by the City Manager, all of the following conditions shall apply to all permits
for a medical cannabis dispensary:
1. The medical cannabis dispensary shall allow access to dispensary facilities
and records if requested by the City, its officers, or agents, and shall pay for an annual
inspection in an amount to be determined by City Council resolution and submit to
inspections from the City or its officers to verify compliance with all relevant rules,
regulations, and conditions.
2. The applicant, owner, and all permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter by any enforcement officer of the City or their
designee.
3. The applicant and the permittee for the dispensary facility and property
owner (if the property owner has a financial interest in the dispensary facility) shall
indemnify, defend, and hold the City harmless from any and all claims and proceedings
relating to the approval of the permit or relating to any damage to property or persons
stemming from the commercial medical cannabis activity.
4. The owner shall be responsible for ensuring that all commercial medical
cannabis activities at the site operate in good standing with all permits and licenses
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required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
medical cannabis activities at the site who do not maintain permits or licenses in good
standing with the City or State shall be grounds for the suspension or revocation of a
permit pursuant to this Chapter.
5. The dispensary shall operate only in accordance with the operating plans
reviewed and approved by the City Manager.
5.45.096 Required Findings and Conditions for Cultivation.
A. A permit for medical cannabis cultivation shall not be granted by the City
Manager unless all of the following findings are made based on substantial evidence:
1. The cultivation, as proposed, will comply with all of the requirements of the
State and City for the cultivation of medical cannabis.
2. The cultivation complies with the locational requirements of the Zoning
Ordinance. The location of each medical cannabis collective or cooperative previously
approved pursuant to Chapter 5.35 shall be deemed an existing location subject to the
provisions of this Chapter.
3. The cultivation, as approved and conditioned, will not result in significant
unavoidable impacts on the environment.
4. The cultivation includes adequate measures that minimize use of water for
medical cannabis cultivation at the site.
5. The cultivation includes adequate measures to address the projected
energy demand for medical cannabis cultivation at the site.
6. The cultivation includes adequate quality control measures to ensure
medical cannabis cultivated at the site meets industry standards.
7. The cultivation includes adequate measures that address the federal
enforcement priorities for cannabis activities including restricting access to minors,
prohibiting use or possession of firearms for security purposes at the premises, and
ensuring that medical cannabis and medical cannabis products are not supplied to
unlicensed and unpermitted persons within the State and not distributed out of state.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for medical
cannabis cultivation:
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1. The owner and permittees shall allow access to cultivation sites and
access to records if requested by the City, its officers, or agents, and shall pay for an
annual inspection in an amount to be determined by City Council resolution and submit
to inspections from the City or its officers to verify compliance with all relevant rules,
regulations, and conditions.
2. The applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter by any enforcement officer of the City or their
designee.
3. The applicant for the cultivation and the owner shall indemnify, defend, and
hold the City harmless from any and all claims and proceedings relating to the approval
of the permit or relating to any damage to property or persons stemming from the
commercial medical cannabis activity.
4. The owner shall be responsible for ensuring that all commercial medical
cannabis activities at the site operate in good standing with all permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
medical cannabis activities at the site who do not maintain permits or licenses in good
standing with the City or State shall be grounds for the suspension or revocation of the
permit pursuant to this Chapter.
6. The cultivation activities shall be maintained in accordance with the
operating plans as approved by the City.
5.45.097 Required Findings and Conditions for Manufacturing.
A. A permit for medical cannabis manufacturing shall not be granted by the
City Manager unless all of the following findings are made based on substantial
evidence:
1. The manufacturing facility, as proposed, will comply with all of the
requirements of the State and City for the medical cannabis manufacturing.
2. The manufacturing facility complies with the locational requirements of the
Zoning Ordinance. The location of each medical cannabis collective or cooperative
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previously approved pursuant to Chapter 5.35 shall be deemed an existing location
subject to the provisions of this Chapter.
3. The manufacturing, as approved and conditioned, will not result in
significant unavoidable impacts on the environment.
4. The manufacturing includes adequate quality control measures to ensure
medical cannabis manufactured at the site meets industry standards.
5. The manufacturing facility does not pose a significant threat to the public or
to neighboring uses from explosion or from the release of harmful gases, liquids, or
substances.
6. The manufacturing operations plan includes adequate measures that
address the federal enforcement priorities for cannabis activities including providing
restrictions on access to minors, prohibiting use or possession of firearms for security
purposes at the premises, and ensuring that medical cannabis and medical cannabis
products are obtained from and supplied only to other permitted licensed sources within
the State.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for medical
cannabis manufacturing:
1. The owner and permittees shall allow access to the facility and access to
records if requested by the City, its officers, or agents, and shall pay for an annual
inspection and submit to inspections from the City or its officers to verify compliance
with all relevant rules, regulations, and conditions.
2. The applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter from any enforcement officer of the City or their
designee.
3. The applicant and permittees for the manufacturing facility and the owner
shall indemnify, defend, and hold the City harmless from any and all claims and
proceedings relating to the approval of the permit or relating to any damage to property
or persons stemming from the commercial medical cannabis activity.
4. The owner shall be responsible for ensuring that all commercial medical
cannabis activities at the site operate in good standing with all permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
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medical cannabis activities at the site who do not maintain permits or licenses in good
standing with the City or State shall be grounds for the suspension or revocation of a
permit pursuant to this Chapter.
5. The manufacturing facilities and activities shall be maintained in
accordance with the operating plans approved by the City.
5.45.098 Required Findings and Conditions for Testing Facilities.
A. A permit for a medical cannabis testing facility shall not be granted by the
City Manager unless all of the following findings are made based on substantial
evidence:
1. The testing facility, as proposed, will comply with all of the requirements of
the State and City for the medical cannabis manufacturing.
2. The testing facility complies with the locational requirements of the Zoning
Ordinance.
3. The medical cannabis testing, as approved and conditioned, will not result
in significant unavoidable impacts on the environment.
4. The owners, permittees, operators, and employees of the testing facility or
laboratory will not be associated or cross-licensed with any other form of commercial
medical or adult-use cannabis activity.
5. The testing facility is accredited by an appropriate accrediting agency.
6. Plans for the testing facility demonstrate proper protocols and procedures
for statistically valid sampling methods and accurate certification of medical cannabis
and medical cannabis products for potency, purity, pesticide residual levels, mold, and
other contaminants according to adopted industry standards.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for a medical
cannabis testing facility:
1. The owner and permittees of the testing facility shall allow access to the
facility and access to records if requested by the City, its officers, or agents, and shall
pay for an annual inspection and submit to inspections from the City or its officers to
verify compliance with all relevant rules, regulations, and conditions.
2. The applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
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determine compliance with this Chapter from any enforcement officer of the City or their
designee.
3. The applicant for the testing facility and the owner shall indemnify, defend,
and hold the City harmless from any and all claims and proceedings relating to the
approval of the permit or relating to any damage to property or persons stemming from
the commercial medical cannabis activity.
4. The owner shall be responsible for ensuring that all commercial medical
cannabis activities at the site operate in good standing with all permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
medical cannabis activities at the site who do not maintain permits or licenses in good
standing with the City or State shall be grounds for the suspension or revocation of a
permit pursuant to this Chapter.
5. The testing facilities and related activities shall be maintained in
accordance with the operating plans approved by the City.
5.45.099 Required Findings and Conditions for Transportation and Distribution
Facilities.
A. A permit for medical cannabis transportation and distribution facility shall
not be granted by the City Manager unless all of the following findings are made based
on substantial evidence:
1. The transportation and distribution facility, as proposed, will comply with all
of the requirements of the State and City for the medical cannabis transportation and
distribution.
2. The transportation and distribution facility complies with the locational
requirements of the Zoning Ordinance. The location of each medical cannabis collective
or cooperative previously approved pursuant to Chapter 5.35 shall be deemed an
existing location subject to the provisions of this Chapter.
3. The medical cannabis transportation and distribution as approved and
conditioned, will not result in significant unavoidable impacts on the environment.
4. Plans for the distribution facility demonstrate proper protocols and
procedures that address the federal enforcement priorities for cannabis activities
including providing restrictions on access to minors, prohibiting use or possession of
firearms for security purposes at the premises, and ensuring that medical cannabis and
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medical cannabis products are obtained from and supplied only to other permitted
licensed sources within the State.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for a medical
cannabis transportation and distribution facility:
1. The owner and permittees of the transportation and distribution facility
shall allow access to the facility and access to records if requested by the City, its
officers, or agents, and shall pay for an annual inspection and submit to inspections
from the City or its officers to verify compliance with all relevant rules, regulations, and
conditions.
2. The applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter from any enforcement officer of the City or their
designee.
3. The applicant for the transportation and distribution facility and the owner
shall indemnify, defend, and hold the City harmless from any and all claims and
proceedings relating to the approval of the permit or relating to any damage to property
or persons stemming from the commercial medical cannabis activity.
4. The owner shall be responsible for ensuring that all commercial medical
cannabis activities at the site operate in good standing with permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
medical cannabis activities at the site who do not maintain permits or licenses in good
standing with the City or State shall be grounds for the modification or revocation of a
permit pursuant to this Chapter.
6. The transportation and distribution facilities and activities shall be
maintained in accordance with the operating plans approved by the City.
5.45.100 Commercial Medical Cannabis Permit Renewals.
A. Each commercial medical cannabis permit shall expire one year after the
date of its issuance. Any permit may be renewed by the City Manager upon the
submission of a renewal application by the permittee and upon determination by the
City Manager that the applicant meets the standards for grant of application as provided
in this Chapter. At the time of consideration of a renewal application, the City Manager
shall consider compliance with conditions in the prior term.
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B. Any application for renewal shall be filed with the City Manager at least
thirty (30) calendar days before expiration of the permit. If any of the documentation and
information supplied by the applicant pursuant to Section 5.45.080 has changed since
the grant of the permit, applicant shall submit updated information and documentation
with the application for renewal and shall provide such other information as the Director
of Planning may require.
C. Any application for renewal shall be denied if:
1. The application is filed fewer than thirty (30) calendar days before its
expiration;
2. The permittee fails to conform to the criteria set forth in this Chapter;
3. The permittee is delinquent in payment of City taxes on commercial
cannabis activity; or
4. The permit is suspended or revoked at the time of the application.
D. If a renewal application is denied, an applicant may file a new application
pursuant to this Chapter.
E. An application for renewal shall be not be deemed complete until all
application fees have been paid.
F. If the City Manager intends to deny the renewal, the City Manager shall
specify in writing the reasons for the denial of the renewal, and notify the permittee that
the decision shall become final unless the permittee seeks an appeal pursuant to
Chapter 2.05 of this Code within ten (10) calendar days of the date of service of the City
Manager's decision. Service of the decision shall be provided in accordance with the
requirements set forth in Chapter 2.05 of this Code.
5.45.110 Compliance with Laws.
It is the responsibility of the owners and operators of the medical cannabis
business to ensure that it is, at all times, operating in a manner compliant with all
applicable state and local laws, and any regulations promulgated thereunder. Nothing in
this Chapter shall be construed as authorizing any actions which violate State Law or
local law with respect to the operation of a medical cannabis business. It shall be the
responsibility of the owners and the operators of the medical cannabis business to
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ensure that the medical cannabis business is, at all times, operating in a manner
compliant with all applicable state and local laws, the 2008 Attorney General Guidelines,
any subsequently enacted State Law or regulatory, licensing, or certification
requirements, and any specific, additional operating procedures or requirements which
may be imposed as conditions of approval of the medical cannabis business permit.
Nothing in this Chapter shall be construed as authorizing any actions which violate
State Law with regard to the operation of a medical cannabis business.
5.45.120 Fees and Charges.
A. No person may commence or continue any medical cannabis activity in
the City, without timely paying in full all fees and charges required for the operation of a
medical cannabis activity. Fees and charges associated with the operation of a medical
cannabis activity shall be established by resolution of the City Council to recover the
cost of administration of this Chapter and may be amended from time to time. Permit
applicants and permittees are responsible for the costs of inspections, investigations,
and any other fee-associated activity established pursuant to this Chapter.
B. All medical cannabis businesses authorized to operate under this Chapter
shall pay all sales, use, gross receipts, cultivation, business, and other applicable taxes,
and all license, registration, and other fees required under federal, state, and local law.
Each medical cannabis businesses shall cooperate with City with respect to any
reasonable request to audit the medical cannabis business' books and records for the
purpose of verifying compliance with this section as well as any of the provisions of
Section 5.55.120 and any subsequent regulations adopted by the City, including but not
limited to a verification of the amount of taxes required to be paid during any period.
5.45.130 Transfers of Commercial Medical Cannabis Permits.
A. No person shall operate a medical cannabis business at any location other
than the location specifically authorized and identified on the City issued medical
cannabis business permit.
B. Transfer, conveyance, or sale of any or all ownership interests or control of
a medical cannabis business or transfer any medical cannabis business permit issued
under this Chapter may only be made to a person who has applied for and has been
issued a medical cannabis permit or permits pursuant to the provisions of this Chapter
and is otherwise fully qualified to operate a medical business in the City and approved
by the City Manager. Any attempt to transfer medical cannabis business permit or an
ownership interest in a medical cannabis business in violation of this Section shall
render the medical cannabis business permit for the medical cannabis business and all
rights to operate such business in the City void.
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C. A commercial medical cannabis permit is issued to and covers only the
permittee identified on the permit with respect to the premises identified on the permit.
The commercial medical cannabis permit does not run with the land.
D. In any situation where a permit has been lost as a result of an attempted
transfer of the medical cannabis business permit or of the medical cannabis business,
or as a result of the abandonment or revocation of the permit, any new permit shall be
issued using the standard process for the issuance of permits in the first instance. No
preference shall be given to any person proposed as new owner or assignee by the
former permit holder.
5.45.140 Requirements Before Permittee May Commence Operations.
A. Prior to commencing operations, a medical cannabis business shall obtain
a City of Palm Springs business license.
B. Prior to commencing operations, a medical cannabis business shall be
subject to a mandatory building inspection and must obtain all required permits and
approvals which would otherwise be required for any business of the same size and
intensity operating in that zone. This includes but is not limited to obtaining any required
building permit(s), fire department approvals, County of Riverside Health Department
approvals, and other zoning and land use permit(s) and approvals.
C. Certification from Director of Planning Services. Prior to commencing
operations, a medical cannabis business must obtain a certification from the Director of
Planning Services certifying that the business is located on a site that meets all of the
requirements of the City's Zoning Ordinance.
D. As a condition precedent to the City's issuance of a medical cannabis
business permit pursuant to this Chapter, any person intending to open and operate a
medical cannabis business shall provide sufficient evidence of the legal right to occupy
and to use the proposed location. In the event the proposed location will be leased from
another person, the applicant shall provide a signed and notarized statement from the
owner of the property, acknowledging that the property owner has read this Chapter and
consents to the operation of the medical cannabis business on the owner's property.
E. To the fullest extent permitted by law, the City of Palm Springs shall not
assume any liability whatsoever with respect to having issued a medical cannabis
business permit pursuant to this Chapter or otherwise approving the operation of any
medical cannabis business. As a condition to the approval of any medical cannabis
business permit, the applicant shall enter into a written agreement or agreements, in a
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form approved by the City Attorney before any medical cannabis business permit
regarding the following:
1. Applicant shall agree to indemnify, defend (at applicant's sole cost and
expense), and hold the City of Palm Springs, and its officers, officials, employees,
representatives, and agents, harmless, from any and all claims, losses, damages,
injuries, liabilities or losses which arise out of, or which are in anyway related to, the
City's issuance of the medical cannabis business permit, the City's decision to approve
the operation of the medical cannabis business or activity, to process used by the City
in making its decision, or the alleged violation of any federal, state or local laws by the
medical cannabis business or any of its officers, employees or agents.
2. Maintain insurance at coverage limits, and with conditions thereon as
determined necessary and appropriate from time to time by the City Manager.
3. Reimburse the City of Palm Springs for all costs and expenses, including
but not limited to attorney fees and costs and court costs, which the City of Palm
Springs may be required to pay as a result of any legal action of any kind related to the
applicant's medical cannabis business permit, or related in any way any activity of the
applicant in conjunction with the operation of the any medical cannabis activity. The City
of Palm Springs may, at its sole discretion, participate at its own expense in the defense
of any such action, but such participation shall not relieve any of the obligations
imposed hereunder.
4. Applicant shall keep the City and law enforcement updated with the
names, addresses, and relevant criminal histories of all employees, facility managers,
and other relevant parties for the medical cannabis business at all times. Relevant
criminal histories shall include any drug-related or felony convictions, the nature of such
offenses, and the sentences received for such convictions.
5. Permits issued pursuant to this Chapter are not transferable to any third
parties except as provided in Section 5.45.120.
5.45.200 Commercial Medical Cannabis Operating Requirements.
A. Throughout the term of the commercial medical cannabis permit, each
permittee shall not violate this Chapter and shall comply with all of the following:
1. It shall be a violation of this Chapter for a permittee to cultivate, process,
manufacture, test, distribute, transport, deliver, provide, or allow to be provided
cannabis to any person except those persons who are qualified patients or primary
caregivers who are in possession of an identification card, or have a verifiable written
recommendation from a licensed physician for medical cannabis.
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2. Each permittee of a medical cannabis business shall maintain accurate
books and records, detailing all of the revenues and expenses of the business, and all
of its assets and liabilities. On no less than an annual basis (at or before the time of the
renewal of a medical cannabis business permit issued pursuant to this Chapter), or at
any time upon reasonable request of the City, each medical cannabis business shall file
a sworn statement detailing the number of sales by the medical cannabis business
during the previous twelve-month period (or shorter period based upon the timing of the
request), provided on a per-month basis. The statement shall also include gross sales
for each month, and all applicable taxes paid or due to be paid.
3. Each permittee of a medical cannabis business shall maintain a current
register of the names and the contact information (including the name, address, and
telephone number) of anyone owning or holding an interest in the medical cannabis
business, and separately of all the officers, managers, employees, agents, and
volunteers currently employed or otherwise engaged by the medical cannabis business.
The register required by this paragraph shall be provided to the City Manager or his/her
designee(s) upon a reasonable request.
4. The permittee shall post or cause to be posted on site all required city and
state permits and licenses required to operate. Such posting shall be in a central
location, visible to the patrons, at the operating site, and in all vehicles that deliver or
transport medical cannabis.
5. Each permittee of a medical cannabis business shall maintain a record of
all persons, patients, collectives, and primary caregivers served by the medical
cannabis business, for a period of no less than four (4) years.
6. Each permittee of a medical cannabis business shall maintain an inventory
control and reporting system that accurately documents the present location, amounts,
and descriptions of all cannabis and cannabis products for all stages of the growing and
production or manufacturing, laboratory testing and distribution processes until
purchase by or distribution to a qualified patient or primary caregiver.
7. Subject to any restrictions under the Health Insurance Portability and
Accountability Act (HIPPA) regulations, each medical cannabis business shall allow City
of Palm Springs officials to have access to the business's books, records, accounts,
together with any other data or documents relevant to its permitted medical cannabis
activities, for the purpose of conducting an audit or examination. Books, records,
accounts, and any and all relevant data or documents will be produced no later than
twenty-four(24) hours after receipt of the City's request, unless otherwise stipulated by
the City.
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8. The permittee shall maintain clear and adequate records and
documentation demonstrating that all cannabis or cannabis products have been
obtained from and are provided to other permitted and licensed cannabis operations.
The City shall have the right to examine, monitor, and audit such records and
documentation, which shall be made available to the City upon request.
9. All medical cannabis manufacturing facilities shall operate within a legal
structure that is compliant with all applicable State and local laws.
10. All medical cannabis businesses must pay all applicable sales taxes and
fees pursuant to all federal, State, and local laws and the owner and/or operator shall
not be delinquent in the payment of such taxes and fees.
11 . On-site smoking, ingestion, or consumption of cannabis or alcohol shall be
prohibited on the premises of all medical cannabis manufacturing facilities. The term
"premises" as used in this Subsection includes the actual medical cannabis
manufacturing building, as well as any accessory structures and parking areas. The
medical cannabis manufacturing facility building entrance shall be clearly and legibly
posted with a notice indicating that smoking, ingesting, or consuming cannabis or
alcohol on the premises or in the vicinity of the facility is prohibited.
12. Signage for all medical cannabis manufacturing facilities shall be limited to
name of business only, shall be in compliance with the City's sign code, and shall
contain no advertising of any companies, brands, products, goods, or services. Signage
shall not include any drug-related symbols.
13. Alcoholic beverages shall not be sold, stored, distributed, or consumed on
the premises. Medical cannabis manufacturing facilities shall not hold or maintain a
license from the State Department of Alcohol Beverage Control to sell alcoholic
beverages, or operate a business that sells alcoholic beverages. In addition, alcoholic
beverages shall not be provided, stored, kept, located, sold, dispensed, or used on the
premises of any medical cannabis manufacturing facility.
14. Physician services shall not be provided on the premises. "Physician
services' includes without limitation the evaluation of patients for the issuance of a
medical cannabis recommendation or card. "Physician services" does not include social
services, including counseling, help with housing and meals, hospice, and other care
referrals which may be provided on site.
15. The building in which any medical cannabis business facility is located, as
well as the operations as conducted therein, shall fully comply with all applicable rules,
regulations, and laws including, but not limited to, zoning and building codes, the City's
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business license ordinances, the Revenue and Taxation Code, the Americans with
Disabilities Act, and MAUCRSA. Compliance with all requirements of State Law
pertaining to medical cannabis manufacturing is also required.
16. The canopy area of medical cannabis located at any premises shall not
exceed the maximum canopy limits set by State Law and the limits set forth in City's use
permit issued pursuant to Title 20 or Title 21 of the Palm Springs Municipal Code. The
commercial medical cannabis permit shall specify the canopy limit allowed by the
permit.
17. No person who is less than eighteen (18) years of age may be employed
or otherwise engaged in the operation of the permittee. No person under the age of
eighteen (18) shall be allowed on the premises.
18. Odor prevention devices and techniques, such as a ventilation system with
a carbon filter, shall be incorporated to ensure that odors from cannabis are not
detectable off site.
19. No medical cannabis or medical cannabis products, or graphics depicting
cannabis or cannabis products shall be visible from the exterior of the premises.
20. All medical cannabis and medical cannabis products shall be stored in a
secured and locked safe room, safe or vault, and in a manner to prevent diversion, theft,
and loss, except for limited amounts of cannabis used for display purposes, samples, or
immediate sale.
21. Each permittee shall be responsible and liable for safety and security in
and around the commercial medical cannabis operation, and shall provide adequate
security on the premises, including lighting and alarms, to ensure the safety of persons
and to protect the premises from theft and other crimes. Each permittee shall install and
maintain in proper working order, video monitoring equipment capable of providing
surveillance of both interior and exterior areas of the permitted establishment. Each
permittee shall maintain such surveillance video tapes for a period of at least thirty (30)
days and shall make such videotapes available to the City upon demand.
22. Each permittee shall provide the City Manager with the name, telephone
number, facsimile number, and e-mail address of a community relations contact to
whom the public can provide notice of problems associated with the commercial
medical cannabis operation. The permittee shall make a good faith effort to resolve
problems without the need for intervention by the City.
23. Any new supervisors, employees or other persons otherwise engaged in
the operation of the commercial medical cannabis operation must submit their
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information to the City Manager within ten (10) days prior to their new ownership,
employment, or engagement, including fingerprints and other necessary information for
a criminal background check.
24. No supervisor, employee, or other persons otherwise engaged in the
operation of the commercial medical cannabis operation may have been convicted of a
felony or a drug related misdemeanor reclassified by Section 1170.18 of the California
Penal Code (Proposition 47) within the past ten (10) years. A conviction within the
meaning of this Section means a plea or verdict of guilty or a conviction following a plea
of nolo contendere.
25. The property owner(s) who own(s) the premises where the commercial
cannabis operation is located must at all times have all necessary land use entitlements
that run with the land as required by this Code and the land use entitlements must be
operative.
26. When applicable, the permittee must legally hold all required State
licenses under MAUCRSA (Business and Professions Code Section 26000 et seq.), as
it may be amended, and under all other applicable State Laws.
27. The permittee shall comply with all required city permits, state licenses,
city regulations, and State Law and regulations, including without limitation, City
building, zoning, and health codes. The owner shall be responsible for the payment of
all required inspection fees, permit fees, and taxes with all applicable Federal, State,
and local laws, ordinances, and regulations.
28. No permittee shall display upon or in proximity to, or referring to the
location or premises of the medical cannabis facility, use, publish, or exhibit, or permit to
be used, or published, any sign, advertisement, display, notice, symbol, or other device
which uses misleading, deceptive, or false advertising. No permittee shall falsely
represent, claim, or advertise the content, nature, quality, attributes, or effects of any
product or service provided by, or on the premises of, the commercial cannabis
operation.
B. A permittee shall comply with the following cultivation, manufacture, waste,
and storage requirements:
1. Each permittee must follow all pesticide use requirements of local, State,
and Federal law.
2. Each permittee must maintain all weighing devices in compliance with
local, State, or Federal law and comply with Chapter 7.60 of the Palm Springs Municipal
Code regarding device registration with the City.
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3. Each permittee must follow all local, State, and Federal requirements for
waste disposal.
4. In no case shall any hazardous, flammable, or explosive substances be
used to process or manufacture cannabis products on site.
5. Pesticides and fertilizers shall be properly labeled and stored to avoid
contamination through erosion, leakage, or inadvertent damage from rodents, pests, or
wildlife.
6. All food products, food storage facilities, food-related utensils, equipment,
and materials shall be approved, used, managed, and handled in accordance with
Sections 113700-114437 of the California Health and Safety Code, and California
Retail Food Code. All food products shall be protected from contamination at all times,
and all food handlers must be clean, in good health and free from communicable
diseases.
7. Baked products (e.g., brownies, bars, cookies, etc.), tinctures, and other
non-refrigerated type items may be sold or distributed at a medical cannabis business.
C. At any time and without notice, City officials may enter the premises for
the purpose of observing compliance of the commercial medical cannabis operation
with this Section, including access to and inspection of the commercial medical
cannabis operation's records, books, accounts, financial data, and any and all data
relevant to its permitted activities for the purpose of conducting an audit or examination.
D. It is unlawful for any person having any responsibility over a commercial
medical cannabis operation to refuse to allow, impede, obstruct, or interfere with an
inspection, or the review of the copying of records and monitoring (including recordings)
including, but not limited to, the concealment, destruction, and falsification of any
recordings or records.
5.45.205 Miscellaneous Operating Requirements.
A. Additional Requirements for Dispensaries.
1. Dispensaries shall be located only in zoning districts that specifically
provide for this use.
2. Dispensaries shall implement and maintain sufficient security measures to
both deter and prevent unauthorized entrance into areas containing cannabis or
cannabis products in compliance with Section 26070 0) of the California Business and
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Professions Code and any rules promulgated by the licensing authority. Security
measures shall include, but are not limited to, the following:
a. Prevent individuals from loitering on the premises of the dispensary if they
are not engaging in activity expressly related to the operations of the dispensary;
b. Establish limited access areas accessible only to authorized dispensary
personnel;
C. Store all cannabis and cannabis products in a secured and locked safe
room, safe, or vault, and in a manner as to prevent diversion, theft, and loss, except for
limited amounts of cannabis and cannabis products used for display purposes, samples,
or immediate sale;
d. Install security cameras on site; and
e. Provide for on-site security personnel meeting the requirements and
standards contained within Chapter 5.52 of the Palm Springs Municipal Code. On-site
security shall not carry firearms or other lethal weapons.
3. If the dispensary operations are proposed to include transportation and
distribution, all employees of a dispensary delivering medical cannabis or medical
cannabis products shall carry a copy of the documentation listed below when making
deliveries. This information shall be provided upon request to law enforcement officers
and to employees of state and local agencies enforcing this Chapter.
a. A copy of the dispensary's current permits, licenses, and entitlements
authorizing them to provide transportation and distribution services;
b. The employee's government-issued identification;
C. A copy of the transportation and distribution request; and
d. Chain of custody records for all goods being delivered.
4. Dispensaries shall ensure that all cannabis and cannabis products at the
dispensary are cultivated, manufactured, transported, distributed, and tested by
licensed and permitted facilities that maintain operations in full conformance with state
and local regulations.
5. Dispensaries shall not distribute any medical cannabis or medical cannabis
product unless the medical cannabis and medical cannabis products are labeled and in
a tamper-evident package in compliance with Section 26120(a) of the California
Business and Professions Code and any additional rules promulgated by the licensing
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authority and such label shall include the name and contact information of the
dispensary that dispensed the medical cannabis.
6. Possession or transportation and distribution of any other form of illegal
drugs without proper legal authorization shall be grounds for revocation of permits.
B. Additional Requirements for Medical Cannabis Cultivation.
1. Medical cannabis cultivation shall be located only in zoning districts that
specifically provide for this use.
2. Medical cannabis cultivation shall comply with all of the following
regulations:
a. Until a program for the identification of permitted medical cannabis plants
at a cultivation site is created by the California Department of Food and Agricultural,
cultivators shall implement a City approved unique identification protocol. Unique
identifiers shall be attached at the base of each plant and shall be traceable through the
supply chain back to the cultivation site. Once a state program has been established, all
cultivation activities permitted under this Chapter shall comply with the state
requirements for unique identifiers and the trace and track program.
b. Security measures sufficient to restrict access to only authorized personnel
and to deter trespass and theft of medical cannabis or medical cannabis products shall
be provided and maintained. If on-site security is utilized, such on-site security shall not
use or possess firearms or other lethal weapons.
C. Pesticides and fertilizers shall be properly labeled and stored to avoid
contamination through erosion, leakage, or inadvertent damage from rodents, pests, or
wildlife.
d. Water conservation measures, water capture systems, or grey water
systems shall be incorporated in medical cannabis cultivation operations in order to
minimize use of water where feasible.
e. On-site renewable energy generation shall be required for all indoor
medical cannabis cultivation activities, if feasible. Renewable energy systems shall be
designed to have a generation potential equal to or greater than one-half of the
anticipated energy demand.
f. Cannabis plants shall not be visible from offsite. No visual markers
indicating that cannabis is cultivated on the site shall be visible from offsite.
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g. The owner shall ensure that the total canopy size of medical cannabis
cultivated at the site does not exceed the cumulative canopy size authorized by State
Law or regulation. The owner and its licensees and permittees, operating on a site
permitted pursuant to this Chapter, and with a commercial medical cannabis permit
required pursuant to this Chapter, shall ensure that the total canopy size of cannabis
cultivation does not individually exceed the amounts authorized by City permits and
State Law.
C. Additional Requirements for Medical Cannabis Manufacturing.
1. Medical cannabis manufacturing shall be located only in zoning districts
that specifically provide for this use.
2. Regulations. Medical cannabis manufacturing shall comply with all of the
following regulations:
a. The manufacturing of food or other products infused with or which
otherwise contain cannabis may be manufactured within the appropriate manufacturing
zoning districts subject to the regulations set forth in this Chapter, and subject to
whatever additional regulations may be promulgated hereunder by an ordinance or
resolution of the City Council. Except as otherwise provided in this Chapter, all cannabis
manufacturing within the City is prohibited.
b. Medical cannabis manufacturing is a use permitted subject to a land use
permit only on properties within specific zone districts as expressly provided in the City's
Zoning Code.
C. Medical cannabis manufacturing facilities may be located within the same
building or structure as an indoor medical cannabis cultivation facility only if the medical
cannabis manufacturing facility is located in separate rooms of the building or structure,
and only if the medical cannabis manufacturing facility has its own separate entrance
into the building or structure.
d. Subject to the further requirements of this Section, only State manufacturer
license classification type 6 level 1 or type 7 will be allowed to operate in the City using
nonvolatile solvents in accordance with MAUCRSA and Business and Professions Code
Sections 26130 (a) and (b). The Health Official shall determine if manufacturing
operations are "volatile."
e. All cannabis manufacturing operations shall ensure that cannabis is
obtained from permitted and licensed cultivation sources and shall implement best
practices to ensure that all manufactured cannabis products are properly stored,
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labeled, transported, and inspected prior to distribution at a legally permitted and
licensed dispensary.
f. Security measures sufficient to restrict access to only authorized personnel
and to deter trespass and theft of medical cannabis or medical cannabis products shall
be provided and maintained. Security measures shall include, but are not limited to, the
following:
i. Prevent individuals from loitering on the premises of the manufacturing
facility if they are not engaging in activity expressly related to the operations of the
manufacturing facility;
ii. Store all cannabis and cannabis products in a secured and locked safe
room, safe, or vault, and in a manner as to prevent diversion, theft, and loss;
iii. Install security cameras on site; and
iv. Provide for on-site security personnel meeting the requirements and
standards contained within Chapter 5.52 of the Palm Springs Municipal Code. On-site
security shall not use or possess firearms or other lethal weapons.
g. Any employees of a medical cannabis manufacturing facility operating
potentially hazardous equipment shall be trained on the proper use of equipment and on
the proper hazard response protocols in the event of equipment failure. In addition,
employees handling edible cannabis products or ingredients shall be trained on proper
food safety practices.
h. Medical cannabis manufacturing is allowed only within fully enclosed and
secure structures that are inaccessible to minors.
i. Medical cannabis manufacturing shall not exceed the square footage
authorized pursuant to the Land Use Permit.
j. From any public right-of-way, there shall be no visible exterior evidence of
any medical cannabis manufacturing activity.
k. Medical cannabis manufacturing shall not adversely affect the health or
safety of the nearby residents by creating dust, glare, heat, noise, smoke, traffic,
vibration, or other impacts, and shall not be hazardous due to use or storage of
materials, processes, products, or wastes.
I. All medical cannabis manufacturing facilities shall fully comply with all of
the applicable restrictions and mandates set forth in State Law. All medical cannabis
manufacturing facilities shall comply with all size requirements for such facilities as
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imposed by State Law. Medical cannabis manufacturing facilities shall not engage in
any activities not allowed by medical cannabis manufacturing facilities pursuant to State
Law. All medical cannabis manufacturing facilities shall comply with all horticultural,
labeling, processing, and other standards required by State Law.
M. There is no set restriction on the hours of operation of medical cannabis
manufacturing facilities; however, restricted hours of operation may be established as a
condition of approval of the manufacturing permit or the applicable Land Use Permit.
n. Medical cannabis manufacturing facilities shall not distribute, sell,
dispense, or administer cannabis from the facility to the public. Medical cannabis
manufacturing facilities shall not be operated as medical cannabis dispensaries.
o. The operators of all medical cannabis manufacturing facilities shall provide
the City Manager with the name, phone number, facsimile number, and email address
of an on-site representative to whom the City and the public can provide notice if there
are any operational problems associated with the medical cannabis manufacturing
facility. All medical cannabis manufacturing facilities shall make every good faith effort
to encourage residents and the public to call this representative to resolve any
operational problems before any calls or complaints are made to the City or law
enforcement.
p. All finished products produced by a medical cannabis manufacturing
facility must be labeled in compliance with MAUCRSA, Business and Professions Code
Section 26120, and the labeling requirements outlined by the State Department of
Public Health.
q. All finished products produced by a medical cannabis manufacturing
facility must be packaged in child resistant containers prior to leaving the facility or
becoming commercially available in accordance with MAUCRSA, Business and
Professions Code Section 26120, the State Department of Public Health regulations,
and other applicable State Laws.
r. All batches of final cannabis products must be tested by a qualified third-
party testing facility prior to distribution to a dispensary as required by MAUCRSA,
Business and Professions Code Sections 26101, 26102, and 26104, and the State
Department of Public Health regulations.
S. Medical cannabis manufacturing facilities shall only use nonvolatile
solvents that have been approved by the State Department of Public Health for medical
cannabis level 1 manufacturing. Until such time as any such nonvolatile solvents are
approved by the State Department of Public Health for medical cannabis level 1
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manufacturing, medical cannabis manufacturing facilities shall only use nonvolatile
solvents that have been approved by the Food and Drug Administration for the
processing and preparation of botanical dietary supplements or food grade products.
t. All processing and analytical testing devises used for medical cannabis
manufacturing facilities must be UL listed, or otherwise approved for the intended use
by the City's Building Official or the Fire Department. Any processing devices using only
non-pressurized water are exempt from such approval.
U. Unless otherwise prohibited, all processing devices used by a medical
cannabis manufacturing facility that utilize hydrocarbons or otherwise flammable
solvents must operate in a closed loop, or in such a way that all solvent material is
recovered in the process. All hazardous material must be disposed of in a manner
which is compliant with all local, State, and federal guidelines for the disposal of
hazardous materials.
D. Additional Requirements for Medical Cannabis Testing Facilities.
1. Medical cannabis testing facilities shall be located only in zoning districts
that specifically provide for this use.
2. Medical cannabis testing facilities shall comply with all of the following
regulations:
a. Medical cannabis testing facilities shall be independent from all other
persons and entities involved in the medical cannabis industry.
b. Security measures sufficient to restrict access to only authorized
personnel and to deter trespass and theft of medical cannabis or medical cannabis
products shall be provided and maintained. Security measures shall include, but are not
limited to, the following:
i. Prevent individuals from loitering on the premises of the testing facility if
they are not engaging in activity expressly related to the operations of the testing facility;
ii. Store all cannabis and cannabis products in a secured and locked safe
room, safe, or vault, and in a manner as to prevent diversion, theft, and loss;
iii. Install security cameras on site; and
iv. Provide for on-site security personnel meeting the requirements and
standards contained within Chapter 5.52 of the City of Palm Springs Code. On-site
security shall not use or possess firearms or other lethal weapons.
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C. Medical cannabis testing facilities shall adopt standard operating
procedures using methods consistent with general requirements for the competence of
testing and calibration activities, including sampling, using standard methods
established by the International Organization for Standardization, specifically ISO/IEC
17020 and ISO/IEC 17025 to test medical cannabis and medical cannabis products that
are approved by an accrediting body that is a signatory to the International Laboratory
Accreditation Cooperation Mutual Recognition Arrangement.
d. Medical cannabis testing facilities shall obtain samples for testing
according to a statistically valid sampling method.
e. Medical cannabis testing facilities shall analyze samples according to
either the most current version of the cannabis inflorescence monograph published by
the American Herbal Pharmacopoeia or a scientifically valid methodology that is
demonstrably equal or superior to the most recent cannabis inflorescence monograph.
f. If a test result falls outside the specifications authorized by law or
regulation, the medical cannabis testing facility shall follow a standard operating
procedure to confirm or refute the original result.
g. Medical cannabis testing facilities shall destroy the remains of any samples
of medical cannabis or medical cannabis product tested upon completion of the
analysis.
h. A licensed testing laboratory shall issue a certificate of analysis for each
lot, with supporting data, to report both of the following:
i. Whether the chemical profile of the lot conforms to the specifications of
the lot for compounds, including, but not limited to, all of the following:
(1) Tetrahydrocannabinol (THC).
(2) Tetrahydrocannabinolic Acid (THCA).
(3) Cannabidiol (CBD).
(4) Cannabidiolic Acid (CBDA).
(5) The terpenes described in the most current version of the cannabis
inflorescence monograph published by the American Herbal Pharmacopoeia.
(6) Cannabigerol (CBG).
(7) Cannabinol (CBN).
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(8) Any other compounds required by the Department of Public Health.
ii. That the presence of contaminants does not exceed the levels that are the
lesser of either the most current version of the American Herbal Pharmacopoeia
monograph or those set by the California Department of Public Health. For purposes of
this paragraph, contaminants include, but are not limited to, all of the following:
(1) Residual solvent or processing chemicals.
(2) Foreign material, including, but not limited to, hair, insects, or similar or
related adulterant.
(3) Microbiological impurity, including total aerobic microbial count, total yeast
mold count, P. aeruginosa, aspergillus spp., s. aureus, aflatoxin B1, B2, G1, or G2, or
ochratoxin A.
(4) Whether the batch is within specifications for odor and appearance.
E. Additional Requirements for Medical Cannabis Transportation and
Distribution.
1. Medical cannabis transportation and distribution facilities shall be located
only in zoning districts that specifically provide for this use.
2. Medical cannabis transportation and distribution facilities shall comply with
all of the following requirements.
a. Medical cannabis and medical cannabis products shall only be transported
between permitted and licensed commercial medical cannabis operations.
b. Prior to transporting medical cannabis or medical cannabis products, the
transporter shall complete an electronic shipping manifest. The shipping manifest shall
include the unique identifier information from the cultivation source.
C. A physical copy of the shipping manifest shall be maintained during
transportation and shall be made available upon request to law enforcement or any
agents of the State or City charged with enforcement of this Chapter.
d. Distribution facilities shall maintain appropriate records of transactions and
shipping manifests. An organized and clean method of storing and transporting medical
cannabis and medical cannabis products shall be provided to maintain a clear chain of
custody.
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e. Security measures sufficient to restrict access to only authorized
personnel and to deter trespass and theft of medical cannabis or medical cannabis
products shall be provided and maintained. Security measures at distribution facilities
shall include, but are not limited to, the following:
i. Prevent individuals from loitering on the premises of the distribution facility
if they are not engaging in activity expressly related to the operations of the distribution
facility;
ii. Store all cannabis and cannabis products in a secured and locked safe
room, safe, or vault, and in a manner as to prevent diversion, theft, and loss;
iii. Install security cameras on site; and
iv. Provide for on-site security personnel meeting the requirements and
standards contained within Chapter 5.52 of the City of Palm Springs Code. On-site
security shall not use or possess firearms or other lethal weapons.
f. Distributors shall ensure that appropriate samples of medical cannabis or
medical cannabis products are tested by a licensed testing facility prior to distribution.
g. Prior to distribution, the distributor shall inspect medical cannabis or
medical cannabis products for quality assurance.
h. Medical cannabis and medical cannabis products shall be packaged and
labeled in accordance with the requirements of State Law.
i. Alternative fuel vehicles shall be provided as part of a medical cannabis
transportation fleet.
5.45.210 Security Measures.
A. A permitted medical cannabis business shall implement sufficient security
measures to deter and prevent the unauthorized entrance into areas containing medical
cannabis or medical cannabis products, and to deter and prevent the theft of medical
cannabis or medical cannabis products at the medical cannabis business. Except as
may otherwise be determined by the City Manager or his/her designee(s), these
security measures shall include, but shall not be limited to, all of the following:
1 . Preventing individuals from remaining on the premises of the medical
cannabis business if they are not engaging in an activity directly related to the permitted
operations of the medical cannabis business.
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2. Establishing limited access areas accessible only to authorized medical
cannabis business personnel.
3. Except for live growing plants which are being cultivated at a cultivation
facility, all medical cannabis and medical cannabis products shall be stored in a secured
and locked room, safe, or vault. All medical cannabis and medical cannabis products,
including live plants which are being cultivated, shall be kept in a manner as to prevent
diversion, theft, and loss, except for limited amounts of cannabis used for display
purposes or for immediate sale at a dispensary.
4. Installing 24-hour security surveillance cameras and used in an on-going
manner with at least two hundred forty (240) concurrent hours of digitally recorded
documentation of at least HD-quality in a format approved by the City Manager to
monitor all entrances and exits to and from the premises, all interior spaces within the
medical cannabis business which are open and accessible to the public, and all interior
spaces where cannabis, cash or currency, is being stored for any period of time on a
regular basis, including cultivation areas and any other areas as determined by the City
Manager. The medical cannabis business shall be responsible for ensuring that the
security surveillance camera's footage is remotely accessible by the City Manager or
his/her designee(s), and the City's Police Department, and that it is compatible with the
City's software and hardware. In addition, remote and real-time, live access to the video
footage from the cameras shall be provided to the City Manager or his/her designee(s)
and to the City's police department. Video recordings shall be maintained for a minimum
of ninety (90) days, and shall be made available to the City Manager or law enforcement
upon verbal request. No search warrant or subpoena shall be required to view recorded
materials. Any disruption in security camera images shall be cured expeditiously in good
faith.
5. Panic buttons shall be installed in all medical cannabis businesses.
6. Alarmed with an alarm system that is operated, maintained, and operated
by a reputable security company.
7. Any bars installed on the windows or the doors of the medical cannabis
business shall be installed only on the interior of the building.
8. Security personnel must be licensed by the State of California Bureau of
Security and Investigative Services personnel and shall be subject to the prior review
and approval of the City Manager or his/her designee(s), with such approval not to be
unreasonably withheld.
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9. Each medical cannabis business shall have the capability to remain secure
and operational during a power outage and shall ensure that all access doors are not
solely controlled by an electronic access panel to ensure that locks are not released
during a power outage.
10. The entrances and all window areas shall be illuminated during evening
hours. The facility shall comply with the City's lighting standards regarding fixture type,
wattage, illumination levels, shielding, etcetera, and shall secure the necessary lighting
approvals and permits as needed.
11. The City Manager and law enforcement shall have the right to enter the
indoor medical cannabis cultivation facility at any time unannounced for the purpose of
making reasonable inspections to observe and enforce compliance with this Section
and all laws of the City and the State.
B. Each medical cannabis business shall identify a designated security
representative or liaison to the City of Palm Springs, who shall be reasonably available
to meet with the City Manager or his/her designee regarding any security related
measures or and operational issues.
C. As part of the application and permitting process each medical cannabis
business shall have a storage and transportation plan, which describes in detail the
procedures for safely and securely storing and transporting all cannabis, cannabis
products, and any currency.
D. The medical cannabis business shall cooperate with the City whenever the
City Manager or his designee makes a request, upon reasonable notice to the medical
cannabis business, to inspect or audit the effectiveness of any security plan or of any
other requirement of this Chapter.
E. A medical cannabis business shall notify the City Manager or his/her
designee(s) within twenty-four (24) hours after discovering any of the following:
1. Significant discrepancies identified during inventory. The level of
significance shall be determined by the regulations promulgated by the City Manager or
his/her designee.
2. Diversion, theft, loss, or any criminal activity involving the medical
cannabis business or any agent or employee of the medical cannabis business.
3. The loss or unauthorized alteration of records related to cannabis,
registering qualifying patients, primary caregivers, or employees or agents of the
medical cannabis business.
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4. Any other breach of security.
5.45.220 Packaging and Labeling Requirements.
Prior to the sale or the transportation and distribution of medical cannabis
or medical cannabis product the same shall be labeled and in a tamper-evident
packaging. Labels and packages shall at least meet all of the following minimum
requirements:
A. Packages and labels shall not be made to be attractive to children.
B. Product labels shall include the following information displayed in a clear
and legible font:
1. Manufacture date and source;
2. The statement "SCHEDULE I CONTROLLED SUBSTANCE";
3. The statement "KEEP OUT OF REACH OF CHILDREN AND ANIMALS" in
bold typeface;
4. The statement "FOR MEDICAL USE ONLY";
5. The statement 'THE INTOXICATING EFFECTS OF THIS PRODUCT MAY
BE DELAYED BY UP TO TWO HOURS"; and
6. The statement "THIS PRODUCT MAY IMPAIR THE ABILITY TO DRIVE
OR OPERATE MACHINERY. PLEASE USE EXTREME CAUTION."
C. For packages containing only dried flowers, the net weight of the cannabis
in the package.
D. A warning if nuts or other known allergens are used.
E. List of pharmacologically active ingredients including, but not limited to,
tetrahydrocannabinol (THC), cannabidiol (CBD), and other cannabinoid content, the
THC and other cannabinoid amount in milligrams per serving, servings per package,
and the THC and other cannabinoid amount in milligrams for the package total.
F. Clear indication, in bold typeface, that the product contains cannabis.
G. Identification of the source and date of cultivation and manufacture and
the name and business phone number of the permittee seller of the product.
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H. Only generic food names may be used to describe edible cannabis
products.
5.45.400 General Authority of City Manager.
A. The City Manager may delegate an act required to be performed pursuant
to this Chapter to any Code Enforcement Officer or Official of the City, including without
limitation the Chief of Police, the Fire Chief, the Building Official, the Finance Director,
the City Attorney, or any designee of such officers or officials, including day-to-day
operations.
B. The City Manager or the City Manager's designees as provided in
Subsection A above shall have all the powers of any peace officer to:
1. Investigate violations or suspected violations of this Chapter, Chapter 5.55,
Chapter 3.35, and Section 93.23.15, and any other laws or regulations pertaining to
Medical Cannabis in this City, and any resolutions or regulations promulgated pursuant
to such provisions, and make arrests, with or without warrant, for any violation thereof,
if, during an officer's exercise of powers or performance of duties pursuant to such laws,
probable cause exists that a crime related to such laws has been or is being committed.
2. View, duplicate, and/or take possession of recordings made by the security
cameras shall be made available to the City Manager upon verbal request; no search
warrant or subpoena shall be needed to view the recorded materials.
3. The City Manager shall have the right to enter a medical cannabis
business or facility from time to time unannounced for the purpose of making
reasonable inspections to observe and enforce compliance with this Chapter and all
laws of the City and State of California.
4. Serve all warrants, summonses, subpoenas, administrative citations,
notices or other processes relating to the enforcement of laws regulating Medical
Cannabis and Cannabis-Infused Product.
5. Assist or aid any law enforcement officer in the performance of his or her
duties upon such law enforcement officer's request or the request of other local officials
having jurisdiction.
6. Inspect, examine, or investigate any medical cannabis business and/or
facility or any property where medical cannabis or cannabis-infused product are grown,
stored, cultivated, manufactured, tested, distributed, or sold, and any books and records
in any way connected with any permitted activity.
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7. Require any Permittee, upon demand, to permit an inspection of any
medical cannabis business or facility during business hours or at any time of apparent
operation, including without limitation any cannabis equipment, and Cannabis
accessories, or books and records; and, to permit the testing of or examination of
medical cannabis or cannabis-infused product.
8. Require Applicants to submit complete and current applications and fees
and other information the City Manager deems necessary to make permitting decisions
and approve material changes made by any applicant or permittee;
9. Conduct investigations into the character, criminal history, and all other
relevant factors related to suitability of all applicants and permittees for medical
cannabis permits and such other persons with a direct or indirect interest in an applicant
or permittee, as the City Manager may require;
10. Promulgate such administrative regulations as deemed necessary and
appropriate, provided that said regulations are consistent herewith and with all
applicable State Law.
11. Exercise any other power or duty authorized by State Law.
C. Applicants and Permittees Shall Cooperate with City Manager Employees.
1. Applicants and Permittees must cooperate with employees and
investigators of the City Manager who are conducting inspections or investigations
relevant to the enforcement of laws and regulations related to this Chapter.
2. No Applicant or Permittee shall by any means interfere with, obstruct, or
impede the City Manager or employee or investigator of the City Manager from
exercising their duties under the provisions of this Chapter and all rules promulgated
pursuant to it. This would include, but is not limited to:
a. Threatening force or violence against an employee or investigator of the
City Manager, or otherwise endeavoring to intimidate, obstruct, or impede employees or
investigators of the City Manager, their supervisors, or any peace officers from
exercising their duties. The term "threatening force" includes the threat of bodily harm to
such individual or to a member of his or her family;
b. Denying employees or investigators of the City Manager access to a
medical cannabis business or facility during business hours or times of apparent
activity;
C. Providing false or misleading statements;
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d. Providing false or misleading documents and records;
e. Failing to timely produce requested books and records required to be
maintained by the Permittee; or
f. Failing to timely respond to any other request for information made by the
City Manager in connection with an investigation of the qualifications, conduct or
compliance of an applicant or permittee.
D. Administrative Hold. To prevent destruction of evidence, diversion or other
threats to public safety, while permitting a Permittee to retain its inventory pending
further investigation, a City Manager investigator may order an administrative hold of
medical cannabis or cannabis-infused product pursuant to the following procedure:
1 . If during an investigation or inspection of a permittee, the City Manager
develops reasonable grounds to believe certain medical cannabis or cannabis-infused
product constitute evidence of acts in violation of this Chapter or rules promulgated
pursuant to it, or otherwise constitute a threat to the public safety, the City Manager may
issue a notice of administrative hold of any such medical cannabis or cannabis-infused
product. The notice of administrative hold shall provide a documented description of the
medical cannabis or cannabis-infused product to be subject to the administrative hold.
2. The Permittee shall completely and physically segregate the Medical
Cannabis or Cannabis-Infused Product subject to the administrative hold in a separate
area of the Location under investigation, where it shall be safeguarded by the Permittee.
Pending the outcome of the investigation and any related disciplinary proceeding, the
Permittee is prohibited from selling, giving away, transferring, transporting, or destroying
the Medical Cannabis or Cannabis-Infused Product subject to the administrative hold.
3. Following an investigation, the City Manager may lift the administrative
hold, order the continuation of the administrative hold, or seek a Final Agency Order for
the destruction of the Cannabis.
4. Any decision or action of the City Manager pursuant to this Subsection is
subject to appeal pursuant to Section 2.05 of this Code.
E. Voluntary Surrender of Medical Cannabis or Cannabis-Infused Product. A
Permittee, prior to a Final Order and upon mutual agreement with the City Manager,
may elect to waive a right to a hearing and any associated rights, and voluntarily
surrender any Medical Cannabis or Cannabis-Infused Product to the City Manager.
Such voluntary surrender may require destruction of any Medical Cannabis or
Cannabis-Infused Product in the presence of a City Manager.
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5.45.410 Suspension or Revocation of Commercial Medical Cannabis Permit.
A. Any of the following shall be grounds for suspension or revocation of a
commercial medical cannabis permit,
1. Failure to comply with one or more of the terms and conditions of the
commercial medical cannabis permit or applicable land use entitlement;
2. The commercial medical cannabis permit was granted on the basis of false
material information, written or oral, given willfully or negligently by the applicant;
3. Any act or omission by an owner or permittee in contravention of the
provisions of this Chapter or any regulation adopted hereunder;
4. Any act or omission by a permittee in contravention of State Law or the
Palm Springs Municipal Code;
5. Any act or omission by a permittee that results in the suspension or
revocation of the applicable land use permit issued under the Zoning Ordinance for the
commercial medical cannabis activities;
6. Any act or omission by a permittee that results in the denial, revocation or
suspension of the owner's or permittee's State license;
7. An owner's or permittee's failure to take appropriate action to evict or
otherwise remove persons conducting commercial medical cannabis activities who do
not maintain the necessary permits or licenses in good standing with the City or State;
8. Possession or transportation and distribution of any other form of illegal
drugs without proper legal authorization;
9. Failure to pay applicable State or City taxes on commercial cannabis
activity; or
10. Conduct of the commercial medical cannabis operations in a manner that
constitutes a nuisance, where the owner or permittee has failed to comply with
reasonable conditions to abate the nuisance.
B. The City Manager shall specify in writing the reasons for the suspension or
revocation and notify the permittee that the decision shall become final unless the
permittee seeks an appeal pursuant to Chapter 2.05 of this Code within ten (10)
calendar days of the date of service of the City Manager's decision. Service of the
decision shall be provided in accordance with the requirements set forth in Chapter 2.05
of this Code.
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C. In the event a civil action is initiated to obtain enforcement of the decision
of the City Manager or the City Council, and judgment is entered to enforce the
decision, the person against whom the order of enforcement has been entered shall be
liable to pay the City's total costs of enforcement, including reasonable attorney fees.
D. If neither permittee nor owner, nor their authorized representatives, appear
at any noticed hearing, such failure to appear shall constitute an abandonment of the
hearing request and a failure to exhaust administrative remedies.
5.45.420 Service.
Wherever this Chapter requires the City to serve notice to an applicant,
permittee, or property owner such notice shall be given by the City Manager, in writing,
and shall be delivered either by personal delivery or by certified U.S. mail, postage
prepaid, return receipt requested. In addition, any such notice may be posted at the
physical address of the premises on the date of the mailing of notice.
5.45.430 Enforcement and Penalties.
A. The remedies provided by this Chapter are cumulative and in addition to
any other remedies available at law or in equity.
B. It shall be unlawful for any person to violate any provision, or to fail to
comply with any of the requirements, of this Chapter or any regulation adopted
hereunder. Any person violating any of the provisions or failing to comply with any of the
mandatory requirements of this Chapter or any regulation adopted hereunder shall be
guilty of a misdemeanor. No proof of knowledge, intent, or other mental state is required
to establish a violation.
C. Any condition caused or allowed to exist in violation of any of the
provisions of this Chapter shall be deemed a public nuisance and shall, at the discretion
of City, create a cause of action for penalty pursuant to Chapters 1.20 and 1.22 of the
Palm Springs Municipal Code, and any other action authorized by law.
D. Each and every violation of this Chapter or any regulation adopted
hereunder shall constitute a separate violation and shall be subject to all remedies and
enforcement measures authorized by the Palm Springs Municipal Code or otherwise
authorized by law. Additionally, as a public nuisance, any violation of this Chapter shall
be subject to injunctive relief, disgorgement of any payment to the City of any and all
monies unlawfully obtained, costs of abatement, costs of restoration, costs of
investigation, attorney fees, and any other relief or remedy available at law or in equity.
The City may also pursue any and all remedies and actions available and applicable
under State and local laws for any violations committed by the commercial medical
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cannabis operator or persons related thereto, or associated with, the commercial
medical cannabis activity.
SECTION 2. Chapter 5.55 is hereby added to the Palm Springs Municipal Code to
read:
Chapter 5.55
ADULT-USE CANNABIS RELATED BUSINESSES AND ACTIVITIES
Section 5.55.010. Purpose and Intent.
Section 5.55.020. Legal Authority.
Section 5.55.030. Prohibition on Cultivation and Business Unless Authorized.
Section 5.55.040. Compliance with Laws.
Section 5.55.050. Definitions.
Section 5.55.055. Adult-Use Cannabis Business Permit Approvals Subject to
Approval of Ballot Initiative.
Section 5.55.060. Adult-Use Cannabis Business Permit Required to Engage in
Adult-Use Cannabis Business.
Section 5.55.070. Adult-Use Cannabis Permit Required, No Effective Date Prior
to January 1, 2018.
Section 5.55.080. Commercial Adult-Use Cannabis Permit Application Process.
Section 5.55.085. Commercial Adult-Use Cannabis Permit Application Priority
for Current Adult-Use Cannabis Business Permittees.
Section 5.55.090. Review of Application for Commercial Adult-Use Cannabis
Permit.
Section 5.55.095. Required Findings and Conditions for Dispensaries.
Section 5.55.096. Required Findings and Conditions for Cultivation.
Section 5.55.097. Required Findings and Conditions for Manufacturing.
Section 5.55.098. Required Findings and Conditions for Testing Facilities.
Section 5.55.099. Required Findings and Conditions for Transportation and
Distribution Facilities.
Section 5.55.100. Commercial Adult-Use Cannabis Permit Renewals.
Section 5.55.110 Compliance with Laws.
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Section 5.55.120. Fees and Charges.
Section 5.55.130. Transfers of Commercial Adult-Use Cannabis Permits.
Section 5.55.140. Requirements Before Permittee May Commence Operations.
Section 5.55.200. Commercial Adult-Use Cannabis Operating Requirements.
Section 5.55.205. Miscellaneous Operating Requirements.
Section 5.55.210. Security Measures
Section 5.55.220. Packaging and Labeling Requirements.
Section 5.55.400. General Authority of City Manager
Section 5.55.410. Suspension or Revocation of Commercial Adult-Use Cannabis
Permit.
Section 5.55.420. Service.
Section 5.55.430. Enforcement and Penalties.
Section 5.55.010. Purpose and Intent.
Chapter 5.55 ADULT-USE CANNABIS RELATED BUSINESSES AND ACTIVITIES
Chapter 5.55 ADULT-USE CANNABIS RELATED BUSINESSES AND
ACTIVITIES
5.55.010 Purpose and Intent.
A. It is the purpose and intent of this Chapter to regulate the
Cultivation, manufacturing, processing, testing, transportation, and distribution, of
Cannabis and Cannabis-related products in a manner which is responsible, which
protects the health, safety, and welfare of the residents of Palm Springs, and to enforce
rules and regulations consistent with State Law under the Medicinal and Adult-Use
Cannabis Regulation and Safety Act (MAUCRSA). In part to meet these objectives, an
annual permit shall be required in order to own and/or to operate an Adult-Use
Cannabis Business within Palm Springs. Nothing in this Chapter is intended to authorize
the possession, use, or provision of Cannabis for purposes that violate state or federal
law. The provisions of this Chapter are in addition to any other permits, licenses, and
approvals that may be required to conduct business in the City, and are in addition to
any permits, licenses and approval required under state, county, or other law.
B. It is the stated intent of this Chapter to regulate Adult-Use
Cannabis Activity in the City of Palm Springs concurrently with the State of California.
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C. All Applications, proposals, requests for Adult-Use Cannabis
related businesses and activity, and any permits or approvals related to such Adult-Use
Cannabis Businesses and activity, shall be processed, reviewed, and administered
pursuant to the provisions of this Chapter.
D. Each Adult-Use Cannabis related business or activity allowed
under the provisions of this Chapter constitutes an activity or business that involves
planting, cultivating, harvesting, transporting, dispensing, delivering, providing,
manufacturing, compounding, converting, processing, preparing, storing, packaging, or
testing any part of the Cannabis plant under the provisions of the state's Medicinal and
Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).
5.55.020 Legal Authority.
Pursuant to Sections 5 and 7 of Article XI of the California Constitution, and the
provisions of the Medicinal and Adult-Use Cannabis Regulation and Safety Act
(MAUCRSA), the City of Palm Springs is authorized to adopt ordinances that establish
standards, requirements and regulations for local licenses and permits for Cannabis and
Cannabis-related activity. Any standards, requirements, and regulations regarding
health and safety, security, and worker protections established by the State of
California, or any of its departments or divisions, shall be the minimum standards
applicable in the City of Palm Springs to Cannabis, and/or Cannabis-related activity.
5.55.030 Prohibition on Cultivation and Business Unless Authorized.
Except as specifically authorized in this Chapter or Chapter 5.45, the Cultivation,
possession, manufacture, processing, storing, laboratory testing, labeling, transporting,
dispensing, distribution, delivery, or sale of Cannabis or a Cannabis Product is
expressly prohibited in the City of Palm Springs.
5.55.040 Compliance with Laws.
It shall be the responsibility of the owners and the operators of the Adult-Use
Cannabis Business to ensure that the Adult-Use Cannabis Business is, at all times,
operating in a manner compliant with all applicable federal, state, and local laws, any
regulations promulgated thereunder, the Guidelines, any subsequently enacted State
Law or regulatory, licensing, or certification requirements, and any specific, additional
operating procedures or requirements that may be imposed as conditions of approval of
the Adult-Use Cannabis Business Permit. Nothing in this Chapter shall be construed as
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authorizing any actions that violate federal or State Law with regard to the operation of
an Adult-Use Cannabis Business.
5.55.050 Definitions.
The following definitions of terms shall apply to this Chapter, unless the
context requires otherwise. Any reference to California statutes includes any regulations
promulgated thereunder and is deemed to include any successor or amended version of
the referenced statute or regulatory provision.
"Adult-Use" means the lawful use of Cannabis or Cannabis Products under the
provisions of MAUCRSA by a person twenty-one (21) years of who does not possess a
physician's recommendation for Cannabis or Cannabis Products.
"Adult-Use Cannabis Activity" includes Cultivation, manufacture,
processing, laboratory testing, transporting, transportation and distribution, distribution,
or sale of Adult-Use Cannabis or an Adult-Use Cannabis Product, within the meaning of
California Business and Professions Code 26000 et seq.
"Adult-Use Cannabis Business" means any business or operation which
engages in Adult-Use Cannabis Activity.
"Adult-Use Cannabis Business Permit" means a regulatory permit issued
by the City of Palm Springs pursuant to this Chapter to an Adult-Use Cannabis
Business, and is required before any Adult-Use Cannabis Activity may be conducted in
the City. The initial permit and annual renewal of an Adult-Use Cannabis Business
Permit is made expressly contingent upon the business' ongoing compliance with all of
the requirements of this Chapter and any regulations adopted by the City governing the
Adult-Use Cannabis Activity at issue.
"Applicant" means a person twenty-one (21) years of age or older who has
submitted an Application for a permit or renewal of a permit issued pursuant to this
Chapter. If the Applicant is an entity and not a natural person, Applicant shall include all
persons having a twenty (20) percent or more financial interest in the entity.
"Application" means that form provided by the City Manager in accordance
with this Chapter for the purpose of seeking a commercial Adult-Use Cannabis Permit.
"Cannabinoid" or "phytocannabinoid" means a chemical compound that is
unique to and derived from Cannabis.
"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
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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 that term is
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 manufactured Cannabis that has
undergone a process to concentrate one or more active cannabinoids, thereby
increasing the product's potency. Resin from granular trichomes from a Cannabis plant
is a concentrate for purposes of this chapter. A Cannabis Concentrate 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.
"Canopy" means all areas occupied by any portion of a Cannabis plant,
inclusive of all vertical planes, whether contiguous or noncontiguous on any one site.
"Caregiver" or "Primary Caregiver" has the same meaning as that term is
defined in Section 11362.7 of the California Health and Safety Code.
"Certificate of Accreditation" means a certificate issued by an accrediting
body to a licensed Testing Laboratory, entity, or site to be registered in the state.
"Commercial Adult-Use Cannabis Activity" means the Cultivation,
possession, manufacture, processing, storing, laboratory testing, labeling, transporting,
distribution, delivery, or sale of Adult-Use Cannabis or an Adult-Use Cannabis Product.
"Commercial Adult-Use Cannabis Permit" means a permit issued by the
City to an Applicant to perform commercial Adult-Use Cannabis activities under this
Chapter.
"Commercial Adult-Use Cannabis Operation" means an entity that
engages in commercial Adult-Use Cannabis Activities.
"Cultivation" means any activity involving the planting, growing,
harvesting, drying, curing, grading, or trimming of Adult-Use Cannabis. Within the
definition of Cultivation, the following specific license types, corresponding to state
cultivator license types set forth in California Business and Professions Code Section
26050, apply:
1. Type 1 or "specialty outdoor' means outdoor Cultivation using no artificial
lighting and having no more than fifty (50) mature plants or five thousand (5,000) square
feet of total canopy size whichever is less;
2. Type 1A or "specialty indoor' means Cultivation using exclusively artificial
lighting, is entirely contained within a structure, and having no more than five thousand
(5,000) square feet of total canopy size;
3. Type 1 B or "specialty mixed-light" means Cultivation using a combination
of natural and supplemental artificial lighting and having no more than five thousand
(5,000) square feet of total canopy size;
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4. Type 2 or "small outdoor" means outdoor Cultivation using no artificial
lighting and having a total canopy size between five thousand one (5,001) and ten
thousand (10,000) square feet;
5. Type 2A or "small indoor" means indoor Cultivation exclusively using
artificial lighting and having a total canopy size between five thousand one (5,001) and
ten thousand (10,000) square feet;
6. Type 2B or "small mixed-light" means Cultivation using a combination of
natural and supplemental artificial lighting and having a total canopy size between five
thousand one (5,001) and ten thousand (10,000) square feet;
7. Type 3 or "outdoor" means outdoor Cultivation using no artificial lighting
and having a total canopy area between ten thousand one (10,001) square feet and one
acre;
8. Type 3A or "indoor" means indoor Cultivation using exclusively artificial
lighting and having a total canopy area between ten thousand one (10,001) and twenty-
two thousand (22,000) square feet;
9. Type 3B or "mixed-light" means Cultivation using a combination of natural
and supplemental artificial lighting and having a total canopy area of between ten
thousand one (10,001) and twenty-two thousand (22,000) square feet; and
10. Type 4 or "nursery' means Cultivation of Adult-Use Cannabis solely as a
nursery.
"Cultivation site" means a location where Adult-Use Cannabis is planted,
grown, harvested, dried, cured, graded, or trimmed, or where all or any combination of
those activities occurs, and where the operator holds a valid Adult-Use Cannabis
Business Permit for Cultivation from the City of Palm Springs and a valid state license to
cultivate Cannabis as required by State Law.
"Delivery" means the commercial transfer of Adult-Use Cannabis or Adult-
Use Cannabis Products from a dispensary, up to an amount determined to be
authorized by the State of California, or any of its departments or divisions, to an
individual of 21 years age or older legally allowed to purchase Cannabis Products, or a
Testing Laboratory. "Delivery" also includes the use by a dispensary of any technology
platform owned and controlled by the dispensary, or independently licensed by the
State of California under MAUCRSA that enables anyone to arrange for or facilitate the
commercial transfer by a licensed dispensary of Adult-Use Cannabis or Adult-Use
Cannabis Products.
"Dispensary" means a premises where Adult-Use Cannabis, Adult-Use
Cannabis Products, or devices for Adult-Use Cannabis or Adult-Use Cannabis Products
are offered, either individually or in any combination, for retail sale, including an
establishment (whether fixed or mobile) that delivers, pursuant to MAUCRSA, Adult-Use
Cannabis and Adult-Use Cannabis Products as part of a retail sale, and where the
operator holds a valid Adult-Use Cannabis Business Permit from the City of Palm
Springs authorizing the operation of a dispensary, and a valid state license as required
by State Law to operate a dispensary.
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"Dispensing" means any activity involving the retail sale of Adult-Use
Cannabis or Adult-Use Cannabis Products from a dispensary.
"Distribution" means the procurement, sale, and transport of Adult-Use
Cannabis and Adult-Use Cannabis Products between entities licensed pursuant to this
chapter.
"Distributor" means a person holding a valid Adult-Use Cannabis Business
Permit for distribution issued by the City of Palm Springs, and, a valid state license for
distribution, required by State Law to engage in the procurement, sale, and transport of
Cannabis and Cannabis Products between licensees.
"Dried flower" means all dead Cannabis that has been harvested, dried,
cured, or otherwise processed, excluding leaves and stems.
"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 (commencing with Section
32501) of the Food and Agricultural Code. An Edible Cannabis Product is not
considered food as defined by Section 109935 of the California Health and Safety Code
or a drug as defined by Section 109925 of the California Health and Safety Code.
"Fully enclosed and secure structure" or "greenhouse" means a space
within a building or other structure which has a complete roof enclosure supported by
connecting walls extending from the ground to the roof, which is secure against
unauthorized entry, provides complete visual screening, and which is accessible only
through one or more lockable doors and is inaccessible to minors and provided such
"greenhouse" is constructed to usual and customary standards and approved by the
Building Official.
"Health Officer" means the County of Riverside Health Officer or the
designee of the County of Riverside Health Officer or any other person exercising the
duties of health officer for the City.
"Identification card" has the same definition as in Section 11362.7 of the
California Health and Safety Code, as it may be amended.
"Licensee" means a person issued a state license under Division 10
(commencing with Section 26000) of the California Business and Professions Code, to
engage in a Commercial Adult-Use Cannabis Activity.
"Licensing authority" means the state agency responsible for the issuance,
renewal, or reinstatement of a license for commercial Adult-Use Cannabis activities, or
the state agency authorized to take disciplinary action against the license.
"Live plants" means living Adult-Use Cannabis flowers and plants,
including seeds, sprouts, immature plants (including unrooted clones), and vegetative
stage plants.
"Manufactured Cannabis" or "Cannabis Product" means raw Cannabis
that has undergone a process whereby the raw agricultural product has been
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transformed into a concentrate, an edible product, or a topical product intended for
intemal consumption or topical Application.
"Manufacturer" means a person that conducts the production, preparation,
propagation, or compounding of manufactured Adult-Use Cannabis, as defined in this
section, or Adult-Use Cannabis Products either directly or indirectly or by extraction
methods, or independently by means of chemical synthesis at a fixed location that
packages or repackages Adult-Use Cannabis or Adult-Use Cannabis Products or labels
or re-labels its container, where the operator holds (1) a valid Adult-Use Cannabis
Business Permit for manufacturing from the City of Palm Springs and (2) after January
1, 2018 or as soon as permitted by the state granting agency, department or division, a
valid state license for manufacturing pursuant to MAUCRSA.
"Marijuana" means "Cannabis," as that term is defined in this Section.
"MAUCRSA" means the Medical and Adult-Use Cannabis Regulation and
Safety Act, consisting of the legislation in SB94, designed to repeal and partially
incorporate the existing Medical Cannabis Regulation and Safety Act (MCRSA) with the
Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA), and as may be
amended from time to time, a comprehensive regulatory framework for the licensing,
control, and taxation of medical and Adult-Use Cannabis related businesses in
California.
"Adult-Use Cannabis," "Adult-Use Cannabis Product," or "Cannabis
Product" means a product containing Cannabis, including, but not limited to,
concentrates and extractions, intended to be sold for use to adults over twenty-one
years of age in the state of California. For the purposes of this Chapter, "Adult-Use
Cannabis" does not include "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.
"Nursery" means a licensee that produces only clones, immature plants,
seeds, and other agricultural products used specifically for the planting, propagation,
and Cultivation of Adult-Use Cannabis.
"Owner" means the person, firm, corporation, or partnership that owns
property or is in possession thereof under a contract to purchase or under a lease, by a
person or persons, firm, corporation, or partnership, individually, jointly, in common, or
in any other manner whereby such property is under single or unified control. The term
"Owner' does not include a lessor of real property subject to a ground lease of ten or
more years where the Owner as lessor does not retain any interest or right of control in
any building constructed on the real property subject to such ground lease.
"Permittee" means a person issued a City permit under this Chapter.
"Person" means an individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or
any other group or combination acting as a unit and includes the plural as well as the
singular number.
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"Premises" means the building or greenhouse in which commercial Adult-
Use Cannabis activities are operated and, in addition, any accessory structures and
appurtenant areas.
"Property Owner' means the individual or entity who is the record owner of
the subject property where commercial Adult-Use Cannabis activities are located or are
proposed to be located. The term "Property Owner' does not include a lessor of real
property subject to a ground lease of ten or more years where the Owner as lessor does
not retain any interest or right of control in any building constructed on the real property
subject to such ground lease.
"State Law" means all statutes, rules, and regulations relating to the
Cultivation, manufacture, dispensing, sale, distribution, and transportation of Adult-Use
Cannabis, as such statutes, rules, and regulations as may be amended from time to
time.
"State license," "license," or "registration" means a state license issued by
the State of California, or one of its departments or divisions, under MAUCRSA to
engage in Adult-Use Cannabis Activity.
"Testing Laboratory" means a facility, entity, or site in the City that offers
or performs test of Adult-Use Cannabis or Adult-Use 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 Adult-Use Cannabis industry in the state; and
2. Registered with the California State Department of Public Health.
"Topical Cannabis" means a product intended for external use. A topical
Cannabis Product is not considered a drug as defined by Section 109925 of the
California Health and Safety Code.
"Transport" means the transfer of Adult-Use Cannabis or Adult-Use
Cannabis Products from the permitted business location of one licensee to the
permitted business location of another licensee, for the purposes of conducting
Commercial Adult-Use Cannabis Activity authorized pursuant to the California Business
and Professions Code Section 26000, as may be amended from time to time.
5.55.055 Adult-Use Cannabis Business Permit Approvals Subject to Approval
of Ballot Initiative.
No new Application arising from or related to any Adult-Use Cannabis Activity or in
relation to any Adult-Use Cannabis Business will be processed or evaluated, and no
Adult-Use Cannabis Permit, license, or authorization will be issued by the City or
approved hereunder unless and until the City-sponsored ballot measure providing for
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taxation in relation to Cannabis business, e.g., upon Adult-Use Cannabis Activity, is
approved by the qualified voters of the City of Palm Springs on November 7, 2017.
5.55.060 Adult-Use Cannabis Business Permit Required to Engage in Adult-
Use Cannabis Business.
No person may engage in any Adult-Use Cannabis Business or in any
Adult-Use Cannabis Activity within the City of Palm Springs including Cultivation,
manufacture, processing, laboratory testing, transporting, dispensing, distribution, or
sale of Adult-Use Cannabis or an Adult-Use Cannabis Product unless the person (1)
has a valid Adult-Use Cannabis Permit from the City of Palm Springs and (2) is currently
in compliance with all applicable state and local laws and regulations pertaining to the
Adult-Use Cannabis Business and the Adult-Use Cannabis Business activities, including
the duty to obtain any required state licenses. Medical Cannabis Collectives or
Cooperatives previously approved under the provisions of Chapter 5.35 of this Code
may continue to operate as a collective or cooperative as provided previously under the
provisions of Section 5.35.100 of this Code and are hereby granted permits for
Cultivation, dispensing, manufacturing, and transportation and distribution under the
provisions of this Chapter for calendar year 2017 subject to providing all information,
documentation, submissions, and evidence required pursuant to Sections 5.55.080 and
otherwise complying with the operational requirements of this Chapter and the
provisions of State Law.
5.55.070 Adult-Use Cannabis Permit Required, No Effective Date Prior to
January 1, 2018.
A. Any person who intends to engage in a Commercial Adult-Use Cannabis
Activity shall obtain a commercial Adult-Use Cannabis Permit for the fixed location in
which the Commercial Adult-Use Cannabis Activity is to occur.
B. It is unlawful for any person to conduct, engage in or allow to be
conducted or engaged in a Commercial Adult-Use Cannabis Activity within the
corporate limits of City of Palm Springs, unless the City has issued such person a
permit under this Chapter and the permit is in effect. Notwithstanding the above, the
permits issued under this Chapter do not provide any protection or immunity for any
person from State or Federal laws, or from prosecution pursuant to any applicable State
or Federal laws.
C. Upon implementation of state regulations pursuant to State Law, a valid
license from the State shall be required to operate any Commercial Adult-Use Cannabis
Activity.
D. The fact that an Applicant possesses other types of State or City permits
or licenses, shall not exempt the Applicant from obtaining a commercial Adult-Use
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Cannabis Permit under this Chapter, nor shall the terms and conditions of any other
such permit or license modify the requirements of a permit granted under this Chapter,
except that the commercial Adult-Use Cannabis Permit must be consistent with the land
use entitlement issued by the City pursuant to Title 20 or Title 21 of the Palm Springs
Municipal Code.
E. The Applicant must receive all necessary land use entitlements as
required by the Palm Springs Zoning Ordinance before the City Manager will issue a
commercial Adult-Use Cannabis Permit under this Chapter.
F. The following persons are exempt from the requirements of this Chapter:
1. A qualified medical Cannabis patient who cultivates one hundred (100)
square feet total canopy area or less of Cannabis exclusively for personal medical use
but who does not provide, donate, sell, or distribute Cannabis to any other person; and
2. A primary medical Cannabis caregiver who cultivates one hundred (100)
square feet of total canopy area or less exclusively for the personal medical purposes
for each specified qualified patient for whom he or she is the Primary Caregiver, up to
five hundred (500) square feet, but who does not receive remuneration for these
activities except for compensation in full compliance with State Law.
3. Qualified patients and/or Primary Caregivers shall, upon request, provide
appropriate documentation to law enforcement demonstrating that they have a valid
doctor's recommendation to use Cannabis for medical purposes.
G. No Commercial Adult-Use Cannabis Permit shall have an effective date
prior to January 1, 2018.
5.55.080 Commercial Adult-Use Cannabis Permit Application Process.
A. Each Application for the establishment of a commercial Adult-Use
Cannabis Permit shall be filed with the City Clerk on the form and in the manner
prescribed by the City Manager. The City Manager shall be responsible for
administering the Application process as set forth in this Chapter. All Applications for
permits required pursuant to this Chapter shall be made upon current forms prescribed
by the City Manager. Applications submitted to the City Manager may include, but not
be limited to, new business premises, transfers of ownership, change of locations,
premises modifications, and changes in trade name.
B. All Applications must include Application and permitting fees as
established by resolution adopted by the City Council as amended from time to time.
C. A permit issued by the City Manager constitutes a revocable privilege. The
burden of proving an Applicant's qualifications for a permit rests at all times with the
Applicant.
D. The Applicant or its authorized agent must provide a surety bond, if
applicable, and prove that all tax returns related to the business have been timely filed.
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E. In all cases, the Application must be complete in every material detail and
shall contain, without limitation, the following documentation:
1 . All Applicants' names, mailing addresses, and if available, e-mail
addresses.
2. A twenty-four (24) hour or nighttime contact phone number.
3. The physical address and assessor's parcel number(s) (APN or APNs) of
the property upon which the proposed Commercial Adult-Use Cannabis Operation will
be located.
4. Proof of ownership of premises, or if the premises on which the
Commercial Adult-Use Cannabis Operation is to occur is rented or leased, written
permission from the property owner containing the property owner's notarized signature
that authorizes the tenant or lessee to engage in commercial Adult-Use Cannabis
activities at the site.
5. A "to scale" diagram of the premises, showing, without limitation, a site
plan, building layout, all entry ways and exits to the facility, loading zones and all areas
in which Adult-Use Cannabis and Adult-Use Cannabis Products will be stored, grown, or
dispensed.
6. If the Applicant is a business entity or any form of entity, information
regarding the entity, including, without limitation, the name and address of the entity, its
legal status, and proof of registration with, or a certificate of good standing from, the
California Secretary of State, as applicable.
7. The full name, date of birth, social security number, present address and
telephone number for all owners, supervisors, employees, and persons having a twenty
(20) percent or more financial interest in the Commercial Adult-Use Cannabis Activity
that is the subject of the Application or, if the Applicant is an entity, having a twenty (20)
percent or more financial interest in the entity.
8. All land all owners, supervisors, employees, and persons having a twenty
(20) percent or more financial interest must submit fingerprints and other necessary
information for a criminal background check.
9. Written proof (i.e., California driver's license, California identification card,
or certified birth certificate) that all Applicants, property owners, supervisors, and
employees are twenty-one (21) years of age or older.
10. The names and addresses of any other Commercial Adult-Use Cannabis
Operations currently being operated by the Applicant, or that had previously been
operated by the Applicant and a statement of whether the authorization for any such
operation had been revoked or suspended and, if so, the reason therefor.
11. A full description of the proposed activities and products of the Commercial
Adult-Use Cannabis Operation.
12. A description of the type of State license(s) that will be required for the
proposed operations pursuant to California Business and Professions Code Section
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26000 et seq., including a description of the proposed total canopy area of any
Cultivation or nursery operation.
13. A detail of the procedures to be utilized at the premises including a
description of how chemicals, pesticides and fertilizers will be stored, handled, used,
and disposed of; and if applicable, manufacturing methods, the transportation process,
inventory procedures, and quality control procedures.
14. Proposed hours of operation.
15. A waste disposal plan.
16. If applicable, provide the Applicant's seller's permit number issued
pursuant to Part 1 (commencing with Section 6001) of Division 2 of the California
Revenue and Taxation Code or indicate that the Applicant is currently applying for a
seller's permit.
17. A statement by the Applicant that it has the ability to comply with all laws
regulating businesses in the State of California and that it shall maintain compliance
during the term of the permit.
18. Authorization for the City, its agents and employees to seek verification of
the information contained in the Application.
19. Certification, under penalty of perjury, that all the information contained in
the Application is true and correct.
F. Nothing in this Section is intended to limit the City Manager's ability to
request additional information the City Manager deems necessary or relevant to
determining an Applicant's suitability for a permit or a renewal of a permit under this
Chapter. Each Applicant shall provide any additional information required that the City
Manager may request to process and fully investigate the Application. The additional
information must be provided to the City Manager no later than seven days of the
request unless otherwise specified by the City Manager. Failure to provide such
additional information by the requested deadline may result in denial of the Application
or renewal or revocation or suspension of a permit.
G. Based on the type of commercial Adult-Use Cannabis activities proposed,
the City Manager may require the following additional information:
1 . Adult-Use Cannabis Dispensary. In reviewing an Application to dispense
Adult-Use Cannabis or Adult-Use Cannabis Products, the City Manager may request
operational plans detailing how operations will comply with federal enforcement
priorities.
2. Adult-Use Cannabis Cultivation. In reviewing an Application to cultivate
Adult-Use Cannabis, the City Manager may request the following additional information:
a. Water conservation measures;
b. Projected energy demand and proposed renewable energy generation
facilities;
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C. Unique identifier, inventory, and quality control procedures; and
d. A floor plan identifying the location, dimensions, and boundaries of all
proposed canopy areas taking into account space needed for ongoing care of plants
and a description of the proposed method of physically delineating those boundaries at
the site.
3. Adult-Use Cannabis Manufacturing. In reviewing an Application to operate
a Cannabis manufacturing facility, the City Manager may request the following
additional information:
a. Information on products used in the manufacturing process including the
Cannabis supply chain, liquids, solvents, agents, and processes. Cannabis shall be
obtained from a licensed cultivator or licensed distributor operating in compliance with
all local and State Laws;
b. Storage protocol and hazard response plan;
C. Quality control measures; and
d. Any other information requested by the City Manager.
4. Adult-Use Cannabis Testing Facilities. In reviewing an Application to
operate a Cannabis testing facility, the City Manager may request the following
additional information:
a. An operations plan detailing how Cannabis will be received, secured,
tested, and destroyed upon completion;
b. Certificate of Accreditation;
C. Proposed procedures for record keeping including chain of custody control
and certificate issuance; and
d. Any other information requested by the City Manager.
5. Adult-Use Cannabis Transportation and Distribution Facility. In reviewing
an Application to operate a Cannabis transportation and/or distribution facility, the City
Manager may request any following additional information:
a. An operations plan detailing how, and from where, Cannabis and Cannabis
Products will be received, how any storage, distribution, and transportation operations
will be secured to prevent theft and trespass, and to whom the product will be
distributed;
b. Quality control inspections and requirements plan;
C. Truck parking and loading areas;
d. Storage and handling plans; and
e. Any other information requested by the City Manager.
H. All required Application materials shall be prepared by the Applicant and
submitted at the time of Application.
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I. All Applicants shall submit information to the City Manager in a full, faithful,
truthful, and fair manner. The City Manager may deny an Application where the
Applicant made intentional or purposeful misstatements, omissions, misrepresentations,
or untruths in the Application or in connection with the Applicant's background
investigation. This type of conduct may be considered as the basis for additional
administrative action against the Applicant and it may also be the basis for criminal
charges against the Applicant.
J. All Application forms supplied by the City Manager and filed by an
Applicant for a permit, including attachments and any other documents associated with
the investigation, shall be accessible by the City Manager and any state or local law
enforcement agency for a purpose authorized by this Chapter or for any other state or
local law enforcement purpose.
K. Any Applicant who operated any Cannabis business activity in the City
without a permit issued from the City for such activity shall be deemed unqualified to
receive any Cannabis permit for a business or activity under this Chapter and shall not
be issued a permit.
5.55.085 Commercial Adult-Use Cannabis Permit Application Priority for
Current Medical Cannabis Cooperative and Collective.
Any Applicant who operated any permitted Medical Cannabis Cooperative and
Collective in the City under the provisions of Chapters 5.35 shall receive priority in
review, processing, and permitting over other Applicants in review and processing of
Applications. All such licensees shall be required to maintain their prior business entity
names and structures. Any successor entities must show continuity of ownership and
operations with the prior entity and license holder.
All prior documentation and materials provided to the City under the provisions of
Chapters 5.35 can be applied to Applications for Adult-Use Cannabis Businesses under
the provisions of this chapter. Priority Applications for the City's existing Medical
Cannabis Cooperative and Collectives will be accepted by the City for the first 60 days
from when Applications are first made available to the public. After 5 p.m. Pacific Time
on the 60th day, the City will end this priority processing permanently. Any Applications
received after 60 days from when Applications are first made available will be deemed
new Applications and shall be eligible under non-priority processing, subject to all
requirements for new Adult-Use Cannabis Business activity.
5.55.090 Review of Application for Commercial Adult-Use Cannabis Permit.
A. The City Manager shall review the Application for a commercial Adult-Use
Cannabis Permit and associated documents and shall require, if he or she deems
necessary, additional information to complete the Application. The City Manager may
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deem the Application incomplete if it does not contain all required information and
documents.
B. An Application shall not be deemed complete unless all required
Application fees have been paid.
C. Each commercial Adult-Use Cannabis Permit shall be granted for a one
year period and shall expire one year after the date of its issuance.
D. Upon review of a complete Application for a commercial Adult-Use
Cannabis Permit, the City Manager may grant the Application if:
1. The proposed commercial Adult-Use Cannabis activities will comply with
all the requirements of the State and the Palm Springs Municipal Code;
2. The Applicant has received all necessary land use entitlements as required
by the Zoning Ordinance;
3. The proposed commercial Adult-Use Cannabis activities will comply with
all provisions of this Chapter; and
4. If applicable, the Applicant has obtained a valid seller's permit required
pursuant to Part 1 (commencing with Section 6001) of Division 2 of the California
Revenue and Taxation Code.
E. The City Manager shall deny any Application that meets any of the
following criteria:
1 . The Applicant has knowingly made a false statement of material fact or
has knowingly omitted a material fact from the Application;
2. Any supervisor, employee, or persons having a twenty (20) percent or
more financial interest in the Commercial Adult-Use Cannabis Activity has been
convicted of:
(A) A violent felony conviction, as specified in subdivision (c) of Section 667.5 of
the California Penal Code.
(B) A serious felony conviction, as specified in subdivision (c) of Section 1192.7
of the Penal Code.
(C) A felony conviction involving fraud, deceit, or embezzlement.
(D) A felony conviction for hiring, employing, or using a minor in transporting,
carrying, selling, giving away, preparing for sale, or peddling, any controlled substance
to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or
giving any controlled substance to a minor.
(E) A felony conviction for drug trafficking with enhancements pursuant to
Section 11370.4 or 11379.8 of the Health and Safety Code.
3. If applicable, the Applicant failed to obtain or maintain a valid seller's
permit required pursuant to Part 1 (commencing with Section 6001) of Division 2 of the
California Revenue and Taxation Code;
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4. Any person who is listed on the Application is less than twenty-one (21)
years of age;
5. The proposed Commercial Adult-Use Cannabis Operation does not comply
with the provisions of this Chapter or State Law; or
6. The Applicant has not received all necessary land use entitlements as
required by Palm Springs Zoning Code.
F. In the event the City Manager denies any Application, the City Manager
shall specify in writing the reasons for the denial and notify the Applicant that the
decision shall become final unless the permittee seeks an appeal pursuant to Chapter
2.05 of this Code within ten (10) calendar days of the date of service of the City
Manager's decision. Service of the decision shall be provided in accordance with the
requirements set forth in Chapter 2.05 of this Code.
5.55.095 Required Findings and Conditions for Dispensaries.
A. A permit for an Adult-Use Cannabis dispensary shall not be granted by the
City Manager unless all of the following findings are made based on substantial
evidence:
1. The dispensary, as proposed, has demonstrated that it can and will comply
with all of the requirements of the State and City to operate an Adult-Use Cannabis
dispensary.
2. The dispensary complies with the locational requirements of the City's
Zoning Ordinance. The location of any medical Cannabis collective or cooperative
previously approved pursuant to Chapter 5.35 shall be deemed an existing location
subject to the provisions of this Chapter.
3. The dispensary, as approved and conditioned, will not result in significant
unavoidable impacts on the environment.
4. The dispensary includes adequate measures that minimize, to the extent
feasible, nuisances to the immediate neighborhood and community including minimizing
the detection of odor from offsite, minimizing the effects of loitering, providing adequate
security measures, and not exceeding the Land Use Permit's limits on hours of
operation.
5. The dispensary will provide adequate measures that address the federal
enforcement priorities for Cannabis activities including restricting drugged driving,
restricting access to minors, prohibiting use or possession of firearms for security
purposes at the premises, and ensuring that Adult-Use Cannabis and Adult-Use
Cannabis Products are supplied from permitted and licensed sources.
B. In addition to any other required conditions and mitigation measures
approved by the City Manager, all of the following conditions shall apply to all permits
for an Adult-Use Cannabis dispensary:
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1 . The Adult-Use Cannabis dispensary shall allow access to dispensary
facilities and records if requested by the City, its officers, or agents, and shall pay for an
annual inspection in an amount to be determined by City Council resolution and submit
to inspections from the City or its officers to verify compliance with all relevant rules,
regulations, and conditions.
2. The Applicant, owner, and all permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter by any enforcement officer of the City or their
designee.
3. The Applicant and the permittee for the dispensary facility and property
owner (if the property owner has a financial interest in the dispensary facility) shall
indemnify, defend, and hold the City harmless from any and all claims and proceedings
relating to the approval of the permit or relating to any damage to property or persons
stemming from the Commercial Adult-Use Cannabis Activity.
4. The owner shall be responsible for ensuring that all commercial Adult-Use
Cannabis activities at the site operate in good standing with all permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
Adult-Use Cannabis activities at the site who do not maintain permits or licenses in
good standing with the City or State shall be grounds for the suspension or revocation
of a permit pursuant to this Chapter.
5. The dispensary shall operate only in accordance with the operating plans
reviewed and approved by the City Manager.
5.55.096 Required Findings and Conditions for Cultivation.
A. A permit for Adult-Use Cannabis Cultivation shall not be granted by the
City Manager unless all of the following findings are made based on substantial
evidence:
1 . The Cultivation, as proposed, will comply with all of the requirements of the
State and City for the Cultivation of Adult-Use Cannabis.
2. The Cultivation complies with the locational requirements of the City's
Zoning Ordinance. The location of any medical Cannabis collective or cooperative
previously approved pursuant to Chapter 5.35 shall be deemed an existing location
subject to the provisions of this Chapter.
3. The Cultivation, as approved and conditioned, will not result in significant
unavoidable impacts on the environment.
4. The Cultivation includes adequate measures that minimize use of water for
Adult-Use Cannabis Cultivation at the site.
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5. The Cultivation includes adequate measures to address the projected
energy demand for Adult-Use Cannabis Cultivation at the site.
6. The Cultivation includes adequate quality control measures to ensure
Adult-Use Cannabis cultivated at the site meets industry standards.
7. The Cultivation includes adequate measures that address the federal
enforcement priorities for Cannabis activities including restricting access to minors,
prohibiting use or possession of firearms for security purposes at the premises, and
ensuring that Adult-Use Cannabis and Adult-Use Cannabis Products are not supplied to
unlicensed and unpermitted persons within the State and not distributed out of state.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for Adult-Use
Cannabis Cultivation:
1. The owner and permittees shall allow access to Cultivation sites and
access to records if requested by the City, its officers, or agents, and shall pay for an
annual inspection in an amount to be determined by City Council resolution and submit
to inspections from the City or its officers to verify compliance with all relevant rules,
regulations, and conditions.
2. The Applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter by any enforcement officer of the City or their
designee.
3. The Applicant for the Cultivation and the owner shall indemnify, defend,
and hold the City harmless from any and all claims and proceedings relating to the
approval of the permit or relating to any damage to property or persons stemming from
the Commercial Adult-Use Cannabis Activity.
4. The owner shall be responsible for ensuring that all commercial Adult-Use
Cannabis activities at the site operate in good standing with all permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
Adult-Use Cannabis activities at the site who do not maintain permits or licenses in
good standing with the City or State shall be grounds for the suspension or revocation
of the permit pursuant to this Chapter.
5. The Cultivation activities shall be maintained in accordance with the
operating plans as approved by the City.
5.55.097 Required Findings and Conditions for Manufacturing.
A. A permit for Adult-Use Cannabis manufacturing shall not be granted by the
City Manager unless all of the following findings are made based on substantial
evidence:
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1 . The manufacturing facility, as proposed, will comply with all of the
requirements of the State and City for the Adult-Use Cannabis manufacturing.
2. The manufacturing facility complies with the locational requirements of the
City's Zoning Ordinance. The location of any medical Cannabis collective or cooperative
previously approved pursuant to Chapter 5.35 shall be deemed an existing location
subject to the provisions of this Chapter.
3. The manufacturing, as approved and conditioned, will not result in
significant unavoidable impacts on the environment.
4. The manufacturing includes adequate quality control measures to ensure
Adult-Use Cannabis manufactured at the site meets industry standards.
5. The manufacturing facility does not pose a significant threat to the public or
to neighboring uses from explosion or from the release of harmful gases, liquids, or
substances.
6. The manufacturing operations plan includes adequate measures that
address the federal enforcement priorities for Cannabis activities including providing
restrictions on access to minors, prohibiting use or possession of firearms for security
purposes at the premises, and ensuring that Adult-Use Cannabis and Adult-Use
Cannabis Products are obtained from and supplied only to other permitted licensed
sources within the State.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for Adult-Use
Cannabis manufacturing:
1 . The owner and permittees shall allow access to the facility and access to
records if requested by the City, its officers, or agents, and shall pay for an annual
inspection and submit to inspections from the City or its officers to verify compliance
with all relevant rules, regulations, and conditions.
2. The Applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter from any enforcement officer of the City or their
designee.
3. The Applicant and permittees for the manufacturing facility and the owner
shall indemnify, defend, and hold the City harmless from any and all claims and
proceedings relating to the approval of the permit or relating to any damage to property
or persons stemming from the Commercial Adult-Use Cannabis Activity.
4. The owner shall be responsible for ensuring that all commercial Adult-Use
Cannabis activities at the site operate in good standing with all permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
Adult-Use Cannabis activities at the site who do not maintain permits or licenses in
good standing with the City or State shall be grounds for the suspension or revocation
of a permit pursuant to this Chapter.
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5. The manufacturing facilities and activities shall be maintained in
accordance with the operating plans approved by the City.
5.55.098 Required Findings and Conditions for Testing Facilities.
A. A permit for an Adult-Use Cannabis testing facility shall not be granted by
the City Manager unless all of the following findings are made based on substantial
evidence:
1. The testing facility, as proposed, will comply with all of the requirements of
the State and City for Cannabis manufacturing.
2. The testing facility complies with the locational requirements of the City's
Zoning Ordinance.
3. The Adult-Use Cannabis testing, as approved and conditioned, will not
result in significant unavoidable impacts on the environment.
4. The owners, permittees, operators, and employees of the testing or
laboratory facility will not be associated or cross-licensed with any other form of
commercial Adult-Use or medical Cannabis activity.
5. The testing facility is accredited by an appropriate accrediting agency.
6. Plans for the testing facility demonstrate proper protocols and procedures
for statistically valid sampling methods and accurate certification of Adult-Use Cannabis
and Adult-Use Cannabis Products for potency, purity, pesticide residual levels, mold,
and other contaminants according to adopted industry standards.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for an Adult-Use
Cannabis testing facility:
1. The owner and permittees of the testing facility shall allow access to the
facility and access to records if requested by the City, its officers, or agents, and shall
pay for an annual inspection and submit to inspections from the City or its officers to
verify compliance with all relevant rules, regulations, and conditions.
2. The Applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter from any enforcement officer of the City or their
designee.
3. The Applicant for the testing facility and the owner shall indemnify, defend,
and hold the City harmless from any and all claims and proceedings relating to the
approval of the permit or relating to any damage to property or persons stemming from
the Commercial Adult-Use Cannabis Activity.
4. The owner shall be responsible for ensuring that all commercial Adult-Use
Cannabis activities at the site operate in good standing with all permits and licenses
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required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
Adult-Use Cannabis activities at the site who do not maintain permits or licenses in
good standing with the City or State shall be grounds for the suspension or revocation
of a permit pursuant to this Chapter.
5. The testing facilities and related activities shall be maintained in
accordance with the operating plans approved by the City.
5.55.099 Required Findings and Conditions for Transportation and
Distribution Facilities.
A. A permit for an Adult-Use Cannabis transportation and distribution facility
shall not be granted by the City Manager unless all of the following findings are made
based on substantial evidence:
1. The transportation and distribution facility, as proposed, will comply with all
of the requirements of the State and City for the Adult-Use Cannabis transportation and
distribution.
2. The transportation and distribution facility complies with the locational
requirements of the City's Zoning Ordinance. The location of any medical Cannabis
collective or cooperative previously approved pursuant to Chapter 5.35 shall be deemed
an existing location subject to the provisions of this Chapter.
3. The Adult-Use Cannabis transportation and distribution as approved and
conditioned, will not result in significant unavoidable impacts on the environment.
4. Plans for the distribution facility demonstrate proper protocols and
procedures that address the federal enforcement priorities for Cannabis activities
including providing restrictions on access to minors, prohibiting use or possession of
firearms for security purposes at the premises, and ensuring that Adult-Use Cannabis
and Adult-Use Cannabis Products are obtained from and supplied only to other
permitted licensed sources within the State.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for an Adult-Use
Cannabis transportation and distribution facility:
1. The owner and permittees of the transportation and distribution facility
shall allow access to the facility and access to records if requested by the City, its
officers, or agents, and shall pay for an annual inspection and submit to inspections
from the City or its officers to verify compliance with all relevant rules, regulations, and
conditions.
2. The Applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
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determine compliance with this Chapter from any enforcement officer of the City or their
designee.
3. The Applicant for the transportation and distribution facility and the owner
shall indemnify, defend, and hold the City harmless from any and all claims and
proceedings relating to the approval of the permit or relating to any damage to property
or persons stemming from the Commercial Adult-Use Cannabis Activity.
4. The owner shall be responsible for ensuring that all commercial Adult-Use
Cannabis activities at the site operate in good standing with permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
Adult-Use Cannabis activities at the site who do not maintain permits or licenses in
good standing with the City or State shall be grounds for the modification or revocation
of a permit pursuant to this Chapter.
5. The transportation and distribution facilities and activities shall be
maintained in accordance with the operating plans approved by the City.
5.55.100 Commercial Adult-Use Cannabis Permit Renewals.
A. Each commercial Adult-Use Cannabis Permit shall expire one year after
the date of its issuance. Any permit may be renewed by the City Manager upon the
submission of a renewal Application by the permittee and upon determination by the
City Manager that the Applicant meets the standards for grant of Application as
provided in this Chapter. At the time of consideration of a renewal Application, the City
Manager shall consider compliance with conditions in the prior term.
B. Any Application for renewal shall be filed with the City Manager at least
thirty (30) calendar days before expiration of the permit. If any of the documentation and
information supplied by the Applicant pursuant to Section 5.55.080 has changed since
the grant of the permit, Applicant shall submit updated information and documentation
with the Application for renewal and shall provide such other information as the Director
of Planning may require.
C. Any Application for renewal shall be denied if:
1. The Application is filed fewer than thirty (30) calendar days before its
expiration;
2. The permittee fails to conform to the criteria set forth in this Chapter;
3. The permittee is delinquent in payment of any City taxes on commercial
Cannabis activity; or
4. The permit is suspended or revoked at the time of the Application.
D. If a renewal Application is denied, an Applicant may file a new Application
pursuant to this Chapter.
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E. An Application for renewal shall be not be deemed complete until all
Application fees have been paid.
F. If the City Manager intends to deny the renewal, the City Manager shall
specify in writing the reasons for the denial of the renewal, and notify the permittee that
the decision shall become final unless the permittee seeks an appeal pursuant to
Chapter 2.05 of this Code within ten (10) calendar days of the date of service of the City
Manager's decision. Service of the decision shall be provided in accordance with the
requirements set forth in Chapter 2.05 of this Code.
5.55.110 Compliance with Laws.
It is the responsibility of the owners and operators of the Adult-Use
Cannabis Business to ensure that it is, at all times, operating in a manner compliant with
all applicable state and local laws, and any regulations promulgated thereunder.
Nothing in this Chapter shall be construed as authorizing any actions which violate
State Law or local law with respect to the operation of an Adult-Use Cannabis Business.
It shall be the responsibility of the owners and the operators of the Adult-Use Cannabis
Business to ensure that the Adult-Use Cannabis Business is, at all times, operating in a
manner compliant with MAUCRSA, all applicable state and local laws, the 2008
Attorney General Guidelines, any subsequently enacted State Law or regulatory,
licensing, or certification requirements, and any specific, additional operating
procedures or requirements which may be imposed as conditions of approval of the
Adult-Use Cannabis Business Permit. Nothing in this Chapter shall be construed as
authorizing any actions which violate State Law with regard to the operation of an Adult-
Use Cannabis Business.
5.55.120 Fees and Charges.
A. No person may commence or continue any Adult-Use Cannabis Activity in
the City, without timely paying in full all fees and charges required for the operation of
an Adult-Use Cannabis Activity. Fees and charges associated with the operation of an
Adult-Use Cannabis Activity shall be established by resolution of the City Council to
recover the cost of administration of this Chapter and may be amended from time to
time. Permit Applicants and permittees are responsible for the costs of inspections,
investigations, and any other fee-associated activity established pursuant to this
Chapter.
B. All Adult-Use Cannabis Businesses authorized to operate under this
Chapter shall pay all sales, use, business, gross receipts, Cultivation, and other
applicable taxes, and all license, registration, and other fees required under federal,
state, and local law. Each Adult-Use Cannabis Businesses shall cooperate with City
with respect to any reasonable request to audit the Adult-Use Cannabis Business'
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books and records for the purpose of verifying compliance with this section as well as
any of the provisions of Section 5.45.120 and any subsequent regulations adopted by
the City, including but not limited to a verification of the amount of taxes required to be
paid during any period.
5.55.130 Transfers of Commercial Adult-Use Cannabis Permits.
A. No person shall operate an Adult-Use Cannabis Business at any location
other than the location specifically authorized and identified on the City issued Adult-
Use Cannabis Business Permit.
B. Transfer, conveyance, or sale of any or all ownership interests or control of
an Adult-Use Cannabis Business or transfer any Adult-Use Cannabis Business Permit
issued under this Chapter may only be made to a person who has applied for and has
been issued an Adult-Use Cannabis Permit or permits pursuant to the provisions of this
Chapter and is otherwise fully qualified to operate an Adult-Use business in the City and
approved by the City Manager. Any attempt to transfer Adult-Use Cannabis Business
Permit or an ownership interest in an Adult-Use Cannabis Business in violation of this
Section shall render the Adult-Use Cannabis Business Permit for the Adult-Use
Cannabis Business and all rights to operate such business in the City void.
C. A commercial Adult-Use Cannabis Permit is issued to and covers only the
permittee identified on the permit with respect to the premises identified on the permit.
The commercial Adult-Use Cannabis Permit does not run with the land.
D. In any situation where a permit has been lost as a result of an attempted
transfer of the Adult-Use Cannabis Business Permit or of the Adult-Use Cannabis
Business, or as a result of the abandonment or revocation of the permit, any new permit
shall be issued using the standard process for the issuance of permits in the first
instance. No preference shall be given to any person proposed as new owner or
assignee by the former permit holder.
5.55.140 Requirements Before Permittee May Commence Operations.
A. Prior to commencing operations an Adult-Use Cannabis Business shall
obtain a City of Palm Springs business license.
B. Prior to commencing operations, an Adult-Use Cannabis Business shall be
subject to a mandatory building inspection and must obtain all required permits and
approvals which would otherwise be required for any business of the same size and
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intensity operating in that zone. This includes but is not limited to obtaining any required
building permit(s), fire department approvals, County of Riverside Health Department
approvals. and other zoning and land use permit(s) and approvals.
C. Certification from Director of Planning Services. Prior to commencing
operations, an Adult-Use Cannabis Business must obtain a certification from the
Director of Planning Services certifying that the business is located on a site that meets
all of the requirements of the City's Zoning Ordinance.
D. As a condition precedent to the City's issuance of an Adult-Use Cannabis
Business Permit pursuant to this Chapter, any person intending to open and operate an
Adult-Use Cannabis Business shall provide sufficient evidence of the legal right to
occupy and to use the proposed location. In the event the proposed location will be
leased from another person, the Applicant shall provide a signed and notarized
statement from the owner of the property, acknowledging that the property owner has
read this Chapter and consents to the operation of the Adult-Use Cannabis Business on
the owner's property.
E. To the fullest extent permitted by law, the City of Palm Springs shall not
assume any liability whatsoever with respect to having issued an Adult-Use Cannabis
Business Permit pursuant to this Chapter or otherwise approving the operation of any
Adult-Use Cannabis Business. As a condition to the approval of any Adult-Use
Cannabis Business Permit, the Applicant shall enter into a written agreement or
agreements, in a form approved by the City Attorney before any Adult-Use Cannabis
Business Permit regarding the following:
1. Applicant shall agree to indemnify, defend (at Applicant's sole cost and
expense), and hold the City of Palm Springs, and its officers, officials, employees,
representatives, and agents, harmless, from any and all claims, losses, damages,
injuries, liabilities or losses which arise out of, or which are in any way related to, the
City's issuance of the Adult-Use Cannabis Business Permit, the City's decision to
approve the operation of the Adult-Use Cannabis Business or activity, to process used
by the City in making its decision, or the alleged violation of any federal, state or local
laws by the Adult-Use Cannabis Business or any of its officers, employees or agents.
2. Maintain insurance at coverage limits, and with conditions thereon as
determined necessary and appropriate from time to time by the City Manager.
3. Reimburse the City of Palm Springs for all costs and expenses, including
but not limited to attorney fees and costs and court costs, which the City of Palm
Springs may be required to pay as a result of any legal action of any kind related to the
Applicant's Adult-Use Cannabis Business Permit, or related in any way any activity of
the Applicant in conjunction with the operation of the any Adult-Use Cannabis Activity.
The City of Palm Springs may, at its sole discretion, participate at its own expense in
the defense of any such action, but such participation shall not relieve any of the
obligations imposed hereunder.
4. Applicant shall keep the City and law enforcement updated with the
names, addresses, and relevant criminal histories of all employees, facility managers,
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and other relevant parties for the Adult-Use Cannabis Business at all times. Relevant
criminal histories shall include any drug-related or felony convictions, the nature of such
offenses, and the sentences received for such convictions.
5. Permits issued pursuant to this Chapter are not transferable to any third
parties except as provided in Section 5.55.120.
F. Before any Permittee may commence operation of any Adult-Use
Cannabis Business or be granted a business license as to same, that Permittee shall
secure and provide satisfactory proof to the City that the Permittee in question is an "A"
type Licensee of the State of California, authorized by State Law to engage in the
specific Commercial Adult-Use Cannabis Operation to be undertaken in the City by the
Permittee in question.
5.55.200 Commercial Adult-Use Cannabis Operating Requirements.
A. Throughout the term of the commercial Adult-Use Cannabis Permit, each
permittee shall not violate this Chapter and shall comply with all of the following:
1. It shall be a violation of this Chapter for a permittee to cultivate, process,
manufacture, test, distribute, transport, deliver, provide, or allow to be provided
Cannabis to any person under twenty-one years of age.
2. Each permittee of an Adult-Use Cannabis Business shall maintain
accurate books and records, detailing all of the revenues and expenses of the business,
and all of its assets and liabilities. On no less than an annual basis (at or before the time
of the renewal of an Adult-Use Cannabis Business Permit issued pursuant to this
Chapter), or at any time upon reasonable request of the City, each Adult-Use Cannabis
Business shall file a sworn statement detailing the number of sales by the Adult-Use
Cannabis Business during the previous twelve-month period (or shorter period based
upon the timing of the request), provided on a per-month basis. The statement shall
also include gross sales for each month, and all applicable taxes paid or due to be paid.
3. Each permittee of an Adult-Use Cannabis Business shall maintain a
current register of the names and the contact information (including the name, address,
and telephone number) of anyone owning or holding an interest in the Adult-Use
Cannabis Business, and separately of all the officers, managers, employees, agents,
and volunteers currently employed or otherwise engaged by the Adult-Use Cannabis
Business. The register required by this paragraph shall be provided to the City Manager
or his/her designee(s) upon a reasonable request.
4. The permittee shall post or cause to be posted on site all required city and
state permits and licenses required to operate. Such posting shall be in a central
location, visible to the patrons, at the operating site, and in all vehicles that deliver or
transport Adult-Use Cannabis.
5. Each permittee of an Adult-Use Cannabis Business shall maintain an
inventory control and reporting system that accurately documents the present location,
amounts, and descriptions of all Cannabis and Cannabis Products for all stages of the
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growing and production or manufacturing, laboratory testing and distribution processes
until purchase by or distribution to a qualified patient or Primary Caregiver.
6. Each Adult-Use Cannabis Business shall allow City of Palm Springs
officials to have access to the business's books, records, accounts, together with any
other data or documents relevant to its permitted Adult-Use Cannabis activities, for the
purpose of conducting an audit or examination. Books, records, accounts, and any and
all relevant data or documents will be produced no later than twenty-four (24) hours
after receipt of the City's request, unless otherwise stipulated by the City.
7. The permittee shall maintain clear and adequate records and
documentation demonstrating that all Cannabis or Cannabis Products have been
obtained from and are provided to other permitted and licensed Cannabis operations.
The City shall have the right to examine, monitor, and audit such records and
documentation, which shall be made available to the City upon request.
8. All Adult-Use Cannabis manufacturing facilities shall operate within a legal
structure that is compliant with all applicable State and local laws.
9. All Adult-Use Cannabis Businesses must pay all applicable sales taxes and
fees pursuant to all federal, State, and local laws and the owner and/or operator shall
not be delinquent in the payment of such taxes and fees.
10. On-site smoking, ingestion, or consumption of Cannabis or alcohol shall be
prohibited on the premises of all Adult-Use Cannabis manufacturing facilities. The term
"premises" as used in this Subsection includes the actual Adult-Use Cannabis
manufacturing building, as well as any accessory structures and parking areas. The
Adult-Use Cannabis manufacturing facility building entrance shall be clearly and legibly
posted with a notice indicating that smoking, ingesting, or consuming Cannabis or
alcohol on the premises or in the vicinity of the facility is prohibited.
11. Signage for all Adult-Use Cannabis manufacturing facilities shall be limited
to name of business only, shall be in compliance with the City's sign code, and shall
contain no advertising of any companies, brands, products, goods, or services. Signage
shall not include any drug-related symbols.
12. Alcoholic beverages shall not be sold, stored, distributed, or consumed on
the premises. Adult-Use Cannabis manufacturing facilities shall not hold or maintain a
license from the State Department of Alcohol Beverage Control to sell alcoholic
beverages, or operate a business that sells alcoholic beverages. In addition, alcoholic
beverages shall not be provided, stored, kept, located, sold, dispensed, or used on the
premises of any Adult-Use Cannabis manufacturing facility.
13. Physician services shall not be provided on the premises. 'Physician
services" includes without limitation the evaluation of patients for the issuance of a
medical Cannabis recommendation or card. "Physician services' does not include social
services, including counseling, help with housing and meals, hospice, and other care
referrals which may be provided on site.
14. The building in which any Adult-Use Cannabis Business facility is located,
as well as the operations as conducted therein, shall fully comply with all applicable
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rules, regulations, and laws including, but not limited to, zoning and building codes, the
City's business license ordinances, the Revenue and Taxation Code, the Americans
with Disabilities Act, and MAUCRSA. Compliance with all requirements of State Law
pertaining to Adult-Use Cannabis manufacturing is also required.
15. The canopy area of Adult-Use Cannabis located at any premises shall not
exceed the maximum canopy limits set by State Law and the limits set forth in City's use
permit issued pursuant to Title 20 or Title 21 of the Palm Springs Municipal Code. The
commercial Adult-Use Cannabis Permit shall specify the canopy limit allowed by the
permit.
16. No person who is less than twenty-one (21) years of age may be employed
or otherwise engaged in the operation of the permittee. No person under the age of
twenty-one (21) shall be allowed on the premises.
17. Odor prevention devices and techniques, such as a ventilation system with
a carbon filter, shall be incorporated to ensure that odors from Cannabis are not
detectable off site.
18. No Adult-Use Cannabis or Adult-Use Cannabis Products, or graphics
depicting Cannabis or Cannabis Products shall be visible from the exterior of the
premises.
19. All Adult-Use Cannabis and Adult-Use Cannabis Products shall be stored
in a secured and locked safe room, safe or vault, and in a manner to prevent diversion,
theft, and loss, except for limited amounts of Cannabis used for display purposes,
samples, or immediate sale.
20. Each permittee shall be responsible and liable for safety and security in
and around the Commercial Adult-Use Cannabis Operation, and shall provide adequate
security on the premises, including lighting and alarms, to ensure the safety of persons
and to protect the premises from theft and other crimes. Each permittee shall install and
maintain in proper working order, video monitoring equipment capable of providing
surveillance of both interior and exterior areas of the permitted establishment. Each
permittee shall maintain such surveillance video tapes for a period of at least thirty (30)
days and shall make such videotapes available to the City upon demand.
21. Each permittee shall provide the City Manager with the name, telephone
number, facsimile number, and e-mail address of a community relations contact to
whom the public can provide notice of problems associated with the Commercial Adult-
Use Cannabis Operation. The permittee shall make a good faith effort to resolve
problems without the need for intervention by the City.
22. Any new supervisors, employees or other persons otherwise engaged in
the operation of the Commercial Adult-Use Cannabis Operation must submit their
information to the City Manager within ten (10) days prior to their new ownership,
employment, or engagement, including fingerprints and other necessary information for
a criminal background check.
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23. No supervisor, employee, or other persons otherwise engaged in the
operation of the Commercial Adult-Use Cannabis Operation may have been convicted
of a
(A) A violent felony conviction, as specified in subdivision (c) of Section 667.5 of
the Penal Code.
(B) A serious felony conviction, as specified in subdivision (c) of Section 1192.7
of the Penal Code.
(C) A felony conviction involving fraud, deceit, or embezzlement.
(D) A felony conviction for hiring, employing, or using a minor in transporting,
carrying, selling, giving away, preparing for sale, or peddling, any controlled substance
to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or
giving any controlled substance to a minor.
(E) A felony conviction for drug trafficking with enhancements pursuant to
Section 11370.4 or 11379.8 of the Health and Safety Code.
A conviction within the meaning of this Section means a plea or verdict of guilty
or a conviction following a plea of nolo contendere.
24, The property owner(s) who own(s) the premises where the commercial
Cannabis operation is located must at all times have all necessary land use entitlements
that run with the land as required by this Code and the land use entitlements must be
operative.
25. When applicable, the permittee must legally hold all required State
licenses under MAUCRSA (Business and Professions Code Section 26000 et seq.), as
it may be amended, and under all other applicable State Laws.
26. The permittee shall comply with all required city permits, state licenses,
city regulations, and State Laws and regulations, including without limitation, City
building, zoning, and health codes. The owner shall be responsible for the payment of
all required inspection fees, permit fees, and taxes with all applicable Federal, State,
and local laws, ordinances, and regulations.
27. No permittee shall display upon or in proximity to, or referring to the
location or premises of the Adult-Use Cannabis facility, use, publish, or exhibit, or permit
to be used, or published, any sign, advertisement, display, notice, symbol, or other
device which uses misleading, deceptive, or false advertising. No permittee shall falsely
represent, claim, or advertise the content, nature, quality, attributes, or effects of any
product or service provided by, or on the premises of, the commercial Cannabis
operation.
B. A permittee shall comply with the following Cultivation, manufacture,
waste, and storage requirements:
1 . Each permittee must follow all pesticide use requirements of local, State,
and Federal law.
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2. Each permittee must maintain all weighing devices in compliance with
local, State, or Federal law and comply with Chapter 7.60 of the Palm Springs Municipal
Code regarding device registration with the City.
3. Each permittee must follow all local, State, and Federal requirements for
waste disposal.
4. In no case shall any hazardous, flammable, or explosive substances be
used to process or manufacture Cannabis Products on site.
5. Pesticides and fertilizers shall be properly labeled and stored to avoid
contamination through erosion, leakage, or inadvertent damage from rodents, pests, or
wildlife.
6. All food products, food storage facilities, food-related utensils, equipment,
and materials shall be approved, used, managed, and handled in accordance with
Sections 113700-114437 of the California Health and Safety Code, and California
Retail Food Code. All food products shall be protected from contamination at all times,
and all food handlers must be clean, in good health and free from communicable
diseases.
7. Baked products (e.g., brownies, bars, cookies, etc.), tinctures, and other
non-refrigerated type items may be sold or distributed at an Adult-Use Cannabis
Business.
C. At any time and without notice, City officials may enter the premises for
the purpose of observing compliance of the Commercial Adult-Use Cannabis Operation
with this Section, including access to and inspection of the Commercial Adult-Use
Cannabis Operation's records, books, accounts, financial data, and any and all data
relevant to its permitted activities for the purpose of conducting an audit or examination.
D. It is unlawful for any person having any responsibility over a Commercial
Adult-Use Cannabis Operation to refuse to allow, impede, obstruct, or interfere with an
inspection, or the review of the copying of records and monitoring (including recordings)
including, but not limited to, the concealment, destruction, and falsification of any
recordings or records.
5.55.205 Miscellaneous Operating Requirements.
A. Additional Requirements for Dispensaries.
1. Dispensaries shall be located only in zoning districts that specifically
provide for this use.
2. Dispensaries shall implement and maintain sufficient security measures to
both deter and prevent unauthorized entrance into areas containing Cannabis or
Cannabis Products in compliance with Section 26070 0) of the California Business and
Professions Code and any rules promulgated by the licensing authority. Security
measures shall include, but are not limited to, the following:
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a. Prevent individuals from loitering on the premises of the dispensary if they
are not engaging in activity expressly related to the operations of the dispensary;
b. Establish limited access areas accessible only to authorized dispensary
personnel;
C. Store all Cannabis and Cannabis Products in a secured and locked safe
room, safe, or vault, and in a manner as to prevent diversion, theft, and loss, except for
limited amounts of Cannabis and Cannabis Products used for display purposes,
samples, or immediate sale;
d. Install security cameras on site; and
e. Provide for on-site security personnel meeting the requirements and
standards contained within Chapter 5.52 of the Palm Springs Municipal Code. On-site
security shall not carry firearms or other lethal weapons.
3. If the dispensary operations are proposed to include transportation and
distribution, all employees of a dispensary delivering Adult-Use Cannabis or Adult-Use
Cannabis Products shall carry a copy of the documentation listed below when making
deliveries. This information shall be provided upon request to law enforcement officers
and to employees of state and local agencies enforcing this Chapter.
a. A copy of the dispensary's current permits, licenses, and entitlements
authorizing them to provide transportation and distribution services;
b. The employee's government-issued identification;
C. A copy of the transportation and distribution request; and
d. Chain of custody records for all goods being delivered.
4. Dispensaries shall ensure that all Cannabis and Cannabis Products at the
dispensary are cultivated, manufactured, transported, distributed, and tested by
licensed and permitted facilities that maintain operations in full conformance with state
and local regulations.
5. Dispensaries shall not distribute any Adult-Use Cannabis or Adult-Use
Cannabis Product unless the Adult-Use Cannabis and Adult-Use Cannabis Products
are labeled and in a tamper-evident package in compliance with Section 26120 (a) of
the California Business and Professions Code and any additional rules promulgated by
the licensing authority and such label shall include the name and contact information of
the dispensary that dispensed the Adult-Use Cannabis.
6. Possession or transportation and distribution of any other form of illegal
drugs without proper legal authorization shall be grounds for revocation of permits.
B. Additional Requirements for Adult-Use Cannabis Cultivation.
1. Adult-Use Cannabis Cultivation shall be located only in zoning districts that
specifically provide for this use.
2. Adult-Use Cannabis Cultivation shall comply with all of the following
regulations:
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a. Until a program for the identification of permitted Adult-Use Cannabis
plants at a Cultivation site is created by the California Department of Food and
Agriculture, cultivators shall implement a City approved unique identification protocol.
Unique identifiers shall be attached at the base of each plant and shall be traceable
through the supply chain back to the Cultivation site. Once a state program has been
established, all Cultivation activities permitted under this Chapter shall comply with the
state requirements for unique identifiers and the trace and track program.
b. Security measures sufficient to restrict access only to authorized personnel
and to deter trespass and theft of Adult-Use Cannabis or Adult-Use Cannabis Products
shall be provided and maintained. If on-site security is utilized, such on-site security
shall not use or possess firearms or other lethal weapons.
C. Pesticides and fertilizers shall be properly labeled and stored to avoid
contamination through erosion, leakage, or inadvertent damage from rodents, pests, or
wildlife.
d. Water conservation measures, water capture systems, or grey water
systems shall be incorporated in Adult-Use Cannabis Cultivation operations in order to
minimize use of water where feasible.
e. On-site renewable energy generation shall be required for all indoor Adult-
Use Cannabis Cultivation activities, if feasible. Renewable energy systems shall be
designed to have a generation potential equal to or greater than one-half of the
anticipated energy demand.
f. Cannabis plants shall not be visible from offsite. No visual markers
indicating that Cannabis is cultivated on the site shall be visible from offsite.
g. The owner shall ensure that the total canopy size of Adult-Use Cannabis
cultivated at the site does not exceed the cumulative canopy size authorized by State
Law or regulation. The owner and its licensees and permittees, operating on a site
permitted pursuant to this Chapter, and with a commercial Adult-Use Cannabis Permit
required pursuant to this Chapter, shall ensure that the total canopy size of Cannabis
Cultivation does not individually exceed the amounts authorized by City permits and
State Law.
C. Additional Requirements for Adult-Use Cannabis Manufacturing.
1. Adult-Use Cannabis manufacturing shall be located only in zoning districts
that specifically provide for this use.
2. Regulations.
Adult-Use Cannabis manufacturing shall comply with all of the following
regulations:
a. The manufacturing of food or other products infused with or which
otherwise contain Cannabis may be manufactured within the appropriate manufacturing
zoning districts subject to the regulations set forth in this Chapter, and subject to
whatever additional regulations may be promulgated hereunder by an ordinance or
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resolution of the City Council. Except as otherwise provided in this Chapter, all
Cannabis manufacturing within the City is prohibited.
b. Adult-Use Cannabis manufacturing is a use permitted subject to a land use
permit only on properties within specific zone districts as expressly provided in the City's
Zoning Code.
C. Adult-Use Cannabis manufacturing facilities may be located within the
same building or structure as an indoor Adult-Use Cannabis Cultivation facility only if
the Adult-Use Cannabis manufacturing facility is located in separate rooms of the
building or structure, and only if the Adult-Use Cannabis manufacturing facility has its
own separate entrance into the building or structure.
d. Subject to the further requirements of this Section, only State manufacturer
license classification type 6 level 1 or type 7 will be allowed to operate in the City using
nonvolatile solvents in accordance with MAUCRSA and Business and Professions Code
Sections 26130 (a) and (b). The Health Official shall determine if manufacturing
operations are "volatile."
e. All Cannabis manufacturing operations shall ensure that Cannabis is
obtained from permitted and licensed Cultivation sources and shall implement best
practices to ensure that all manufactured Cannabis Products are properly stored,
labeled, transported, and inspected prior to distribution at a legally permitted and
licensed dispensary.
f. Security measures sufficient to restrict access to only authorized personnel
and to deter trespass and theft of Adult-Use Cannabis or Adult-Use Cannabis Products
shall be provided and maintained. Security measures shall include, but are not limited
to, the following:
i. Prevent individuals from loitering on the premises of the manufacturing
facility if they are not engaging in activity expressly related to the operations of the
manufacturing facility;
ii. Store all Cannabis and Cannabis Products in a secured and locked safe
room, safe, or vault, and in a manner as to prevent diversion, theft, and loss;
iii. Install security cameras on site; and
iv. Provide for on-site security personnel meeting the requirements and
standards contained within Chapter 5.52 of the Palm Springs Municipal Code. On-site
security shall not use or possess firearms or other lethal weapons.
g. Any employees of an Adult-Use Cannabis manufacturing facility operating
potentially hazardous equipment shall be trained on the proper use of equipment and on
the proper hazard response protocols in the event of equipment failure. In addition,
employees handling Edible Cannabis Products or ingredients shall be trained on proper
food safety practices.
h. Adult-Use Cannabis manufacturing is allowed only within Fully Enclosed
and Secure Structures that are inaccessible to minors.
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i. Adult-Use Cannabis manufacturing shall not exceed the square footage
authorized pursuant to the Land Use Permit.
j. From any public right-of-way, there shall be no visible exterior evidence of
any Adult-Use Cannabis manufacturing activity.
k. Adult-Use Cannabis manufacturing shall not adversely affect the health or
safety of the nearby residents by creating dust, glare, heat, noise, smoke, traffic,
vibration, or other impacts, and shall not be hazardous due to use or storage of
materials, processes, products, or wastes.
I. All Adult-Use Cannabis manufacturing facilities shall fully comply with all
of the applicable restrictions and mandates set forth in State Law. All Adult-Use
Cannabis manufacturing facilities shall comply with all size requirements for such
facilities as imposed by State Law. Adult-Use Cannabis manufacturing facilities shall not
engage in any activities not allowed by Adult-Use Cannabis manufacturing facilities
pursuant to State Law. All Adult-Use Cannabis manufacturing facilities shall comply with
all horticultural, labeling, processing, and other standards required by State Law.
M. There is no set restriction on the hours of operation of Adult-Use Cannabis
manufacturing facilities; however, restricted hours of operation may be established as a
condition of approval of the manufacturing permit or the applicable Land Use Permit.
n. Adult-Use Cannabis manufacturing facilities shall not distribute, sell,
dispense, or administer Cannabis from the facility to the public. Adult-Use Cannabis
manufacturing facilities shall not be operated as Adult-Use Cannabis dispensaries.
o. The operators of all Adult-Use Cannabis manufacturing facilities shall
provide the City Manager with the name, phone number, facsimile number, and email
address of an on-site representative to whom the City and the public can provide notice
if there are any operational problems associated with the Adult-Use Cannabis
manufacturing facility. All Adult-Use Cannabis manufacturing facilities shall make every
good faith effort to encourage residents and the public to call this representative to
resolve any operational problems before any calls or complaints are made to the City or
law enforcement.
P. All finished products produced by an Adult-Use Cannabis manufacturing
facility must be labeled in compliance with MAUCRSA, Business and Profession Code
Section 26120, and the labeling requirements outlined by the State Department of
Public Health.
q. All finished products produced by an Adult-Use Cannabis manufacturing
facility must be packaged in child resistant containers prior to leaving the facility or
becoming commercially available in accordance with MAUCRSA, Business and
Profession Code Section 26120, the State Department of Public Health regulations, and
other applicable State Laws.
r. All batches of final Cannabis Products must be tested by a qualified third-
party testing facility prior to distribution to a dispensary as required by MAUCRSA,
Business and Professions Code Sections 26101, 26102, and 26104, and the State
Department of Public Health regulations.
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S. Adult-Use Cannabis manufacturing facilities shall only use nonvolatile
solvents that have been approved by the State Department of Public Health for Adult-
Use Cannabis level 1 manufacturing. Until such time as any such nonvolatile solvents
are approved by the State Department of Public Health for Adult-Use Cannabis level 1
manufacturing, Adult-Use Cannabis manufacturing facilities shall only use nonvolatile
solvents that have been approved by the Food and Drug Administration for the
processing and preparation of botanical dietary supplements or food grade products.
t. All processing and analytical testing devises used for Adult-Use Cannabis
manufacturing facilities must be UL listed, or otherwise approved for the intended use
by the City's Building Official or the Fire Department. Any processing devices using only
non-pressurized water are exempt from such approval.
U. Unless otherwise prohibited, all processing devices used by an Adult-Use
Cannabis manufacturing facility that utilize hydrocarbons or otherwise flammable
solvents must operate in a closed loop, or in such a way that all solvent material is
recovered in the process. All hazardous material must be disposed of in a manner
which is compliant with all local, State, and federal guidelines for the disposal of
hazardous materials.
D. Additional Requirements for Adult-Use Cannabis Testing Facilities.
1. Adult-Use Cannabis testing facilities shall be located only in zoning
districts that specifically provide for this use.
2. Adult-Use Cannabis testing facilities shall comply with all of the following
regulations:
a. Adult-Use Cannabis testing facilities shall be independent from all other
persons and entities involved in the Adult-Use Cannabis industry.
b. Security measures sufficient to restrict access to only authorized
personnel and to deter trespass and theft of Adult-Use Cannabis or Adult-Use Cannabis
Products shall be provided and maintained. Security measures shall include, but are not
limited to, the following:
i. Prevent individuals from loitering on the premises of the testing facility if
they are not engaging in activity expressly related to the operations of the testing facility;
ii. Store all Cannabis and Cannabis Products in a secured and locked safe
room, safe, or vault, and in a manner as to prevent diversion, theft, and loss;
iii. Install security cameras on site; and
iv. Provide for on-site security personnel meeting the requirements and
standards contained within Chapter 5.52 of the City of Palm Springs Code. On-site
security shall not use or possess firearms or other lethal weapons.
C. Adult-Use Cannabis testing facilities shall adopt standard operating
procedures using methods consistent with general requirements for the competence of
testing and calibration activities, including sampling, using standard methods
established by the International Organization for Standardization, specifically ISO/IEC
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17020 and ISO/IEC 17025 to test Adult-Use Cannabis and Adult-Use Cannabis
Products that are approved by an accrediting body that is a signatory to the
International Laboratory Accreditation Cooperation Mutual Recognition Arrangement.
d. Adult-Use Cannabis testing facilities shall obtain samples for testing
according to a statistically valid sampling method.
e. Adult-Use Cannabis testing facilities shall analyze samples according to
either the most current version of the Cannabis inflorescence monograph published by
the American Herbal Pharmacopoeia or a scientifically valid methodology that is
demonstrably equal or superior to the most recent Cannabis inflorescence monograph.
f. If a test result falls outside the specifications authorized by law or
regulation, the Adult-Use Cannabis testing facility shall follow a standard operating
procedure to confirm or refute the original result.
g. Adult-Use Cannabis testing facilities shall destroy the remains of any
samples of Adult-Use Cannabis or Adult-Use Cannabis Product tested upon completion
of the analysis.
h. A licensed Testing Laboratory shall issue a certificate of analysis for each
lot, with supporting data, to report both of the following:
i. Whether the chemical profile of the lot conforms to the specifications of
the lot for compounds, including, but not limited to, all of the following:
(1) Tetrahydrocannabinol (THC).
(2) Tetrahydrocannabinolic Acid (THCA).
(3) Cannabidiol (CBD).
(4) Cannabidiolic Acid (CBDA).
(5) The terpenes described in the most current version of the Cannabis
inflorescence monograph published by the American Herbal Pharmacopoeia.
(6) Cannabigerol (CBG).
(7) Cannabinol (CBN).
(8) Any other compounds required by the Department of Public Health.
ii. That the presence of contaminants does not exceed the levels that are the
lesser of either the most current version of the American Herbal Pharmacopoeia
monograph or those set by the California Department of Public Health. For purposes of
this paragraph, contaminants include, but are not limited to, all of the following:
(1) Residual solvent or processing chemicals.
(2) Foreign material, including, but not limited to, hair, insects, or similar or
related adulterant.
(3) Microbiological impurity, including total aerobic microbial count, total yeast
mold count, P. aeruginosa, aspergillus spp., s. aureus, aflatoxin B1, B2, G1, or G2, or
ochratoxin A.
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(4) Whether the batch is within specifications for odor and appearance.
E. Additional Requirements for Adult-Use Cannabis Transportation and
Distribution.
1. Adult-Use Cannabis transportation and distribution facilities shall be
located only in zoning districts that specifically provide for this use.
2. Adult-Use Cannabis transportation and distribution facilities shall comply
with all of the following requirements.
a. Adult-Use Cannabis and Adult-Use Cannabis Products shall only be
transported between permitted and licensed Commercial Adult-Use Cannabis
Operations.
b. Prior to transporting Adult-Use Cannabis or Adult-Use Cannabis Products,
the transporter shall complete an electronic shipping manifest. The shipping manifest
shall include the unique identifier information from the Cultivation source.
C. A physical copy of the shipping manifest shall be maintained during
transportation and shall be made available upon request to law enforcement or any
agents of the State or City charged with enforcement of this Chapter.
d. Distribution facilities shall maintain appropriate records of transactions and
shipping manifests. An organized and clean method of storing and transporting Adult-
Use Cannabis and Adult-Use Cannabis Products shall be provided to maintain a clear
chain of custody.
e. Security measures sufficient to restrict access to only authorized
personnel and to deter trespass and theft of Adult-Use Cannabis or Adult-Use Cannabis
Products shall be provided and maintained. Security measures at distribution facilities
shall include, but are not limited to, the following:
i. Prevent individuals from loitering on the premises of the distribution facility
if they are not engaging in activity expressly related to the operations of the distribution
facility;
ii. Store all Cannabis and Cannabis Products in a secured and locked safe
room, safe, or vault, and in a manner as to prevent diversion, theft, and loss;
iii. Install security cameras on site; and
iv. Provide for on-site security personnel meeting the requirements and
standards contained within Chapter 5.52 of the City of Palm Springs Code. On-site
security shall not use or possess firearms or other lethal weapons.
f. Distributors shall ensure that appropriate samples of Adult-Use Cannabis
or Adult-Use Cannabis Products are tested by a licensed testing facility prior to
distribution.
g. Prior to distribution, the distributor shall inspect Adult-Use Cannabis or
Adult-Use Cannabis Products for quality assurance.
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h. Adult-Use Cannabis and Adult-Use Cannabis Products shall be packaged
and labeled in accordance with the requirements of State Law.
i. Alternative fuel vehicles shall be provided as part of an Adult-Use
Cannabis transportation fleet.
5.55.210 Security Measures.
A. A permitted Adult-Use Cannabis Business shall implement sufficient
security measures to deter and prevent the unauthorized entrance into areas containing
Adult-Use Cannabis or Adult-Use Cannabis Products, and to deter and prevent the theft
of Adult-Use Cannabis or Adult-Use Cannabis Products at the Adult-Use Cannabis
Business. Except as may otherwise be determined by the City Manager or his/her
designee(s), these security measures shall include, but shall not be limited to, all of the
following:
1. Preventing individuals from remaining on the premises of the Adult-Use
Cannabis Business if they are not engaging in an activity directly related to the
permitted operations of the Adult-Use Cannabis Business.
2. Establishing limited access areas accessible only to authorized Adult-Use
Cannabis Business personnel.
3. Except for live growing plants which are being cultivated at a Cultivation
facility, all Adult-Use Cannabis and Adult-Use Cannabis Products shall be stored in a
secured and locked room, safe, or vault. All Adult-Use Cannabis and Adult-Use
Cannabis Products, including live plants which are being cultivated, shall be kept in a
manner as to prevent diversion, theft, and loss, except for limited amounts of Cannabis
used for display purposes or for immediate sale at a dispensary.
4. Installing 24-hour security surveillance cameras and used in an on-going
manner with at least two hundred forty (240) concurrent hours of digitally recorded
documentation of at least HD-quality in a format approved by the City Manager to
monitor all entrances and exits to and from the premises, all interior spaces within the
Adult-Use Cannabis Business which are open and accessible to the public, and all
interior spaces where Cannabis, cash or currency, is being stored for any period of time
on a regular basis, including Cultivation areas and any other areas as determined by the
City Manager. The Adult-Use Cannabis Business shall be responsible for ensuring that
the security surveillance camera's footage is remotely accessible by the City Manager
or his/her designee(s), and the City's Police Department, and that it is compatible with
the City's software and hardware. In addition, remote and real-time, live access to the
video footage from the cameras shall be provided to the City Manager or his/her
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designee(s) and to the City's police department. Video recordings shall be maintained
for a minimum of ninety (90) days, and shall be made available to the City Manager or
law enforcement upon verbal request. No search warrant or subpoena shall be required
to view recorded materials. Any disruption in security camera images shall be cured
expeditiously in good faith.
5. Panic buttons shall be installed in all Adult-Use Cannabis Businesses.
6. Alarmed with an alarm system that is operated, maintained, and operated
by a reputable security company.
7. Any bars installed on the windows or the doors of the Adult-Use Cannabis
Business shall be installed only on the interior of the building.
8. Security personnel must be licensed by the State of California Bureau of
Security and Investigative Services personnel and shall be subject to the prior review
and approval of the City Manager or his/her designee(s), with such approval not to be
unreasonably withheld.
9. Each Adult-Use Cannabis Business shall have the capability to remain
secure and operational during a power outage and shall ensure that all access doors
are not solely controlled by an electronic access panel to ensure that locks are not
released during a power outage.
10. The entrances and all window areas shall be illuminated during evening
hours. The facility shall comply with the City's lighting standards regarding fixture type,
wattage, illumination levels, shielding, etcetera, and shall secure the necessary lighting
approvals and permits as needed.
11. The City Manager and law enforcement shall have the right to enter the
indoor Adult-Use Cannabis Cultivation facility at any time unannounced for the purpose
of making reasonable inspections to observe and enforce compliance with this Section
and all laws of the City and the State.
B. Each Adult-Use Cannabis Business shall identify a designated security
representative or liaison to the City of Palm Springs, who shall be reasonably available
to meet with the City Manager or his/her designee regarding any security related
measures or and operational issues.
C. As part of the Application and permitting process each Adult-Use
Cannabis Business shall have a storage and transportation plan, which describes in
detail the procedures for safely and securely storing and transporting all Cannabis,
Cannabis Products, and any currency.
D. The Adult-Use Cannabis Business shall cooperate with the City whenever
the City Manager or his designee makes a request, upon reasonable notice to the Adult-
Use Cannabis Business, to inspect or audit the effectiveness of any security plan or of
any other requirement of this Chapter.
E. An Adult-Use Cannabis Business shall notify the City Manager or his/her
designee(s) within twenty-four (24) hours after discovering any of the following:
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1. Significant discrepancies identified during inventory. The level of
significance shall be determined by the regulations promulgated by the City Manager or
his/her designee.
2. Diversion, theft, loss, or any criminal activity involving the Adult-Use
Cannabis Business or any agent or employee of the Adult-Use Cannabis Business.
3. The loss or unauthorized alteration of records related to Cannabis,
registering qualifying patients, Primary Caregivers, or employees or agents of the Adult-
Use Cannabis Business.
4. Any other breach of security.
5.55.220 Packaging and Labeling Requirements.
Prior to the sale or the transportation and distribution of Adult-Use
Cannabis or Adult-Use Cannabis Product the same shall be labeled and in a tamper-
evident packaging. Labels and packages shall at least meet all of the following minimum
requirements:
A. Packages and labels shall not be made to be attractive to children.
B. Product labels shall include the following information displayed in a clear
and legible font:
1. Manufacture date and source;
2. The statement "SCHEDULE I CONTROLLED SUBSTANCE";
3. The statement "KEEP OUT OF REACH OF CHILDREN AND ANIMALS' in
bold typeface;
4. The statement "THE INTOXICATING EFFECTS OF THIS PRODUCT MAY
BE DELAYED BY UP TO TWO HOURS'; and
5. The statement "THIS PRODUCT MAY IMPAIR THE ABILITY TO DRIVE
OR OPERATE MACHINERY. PLEASE USE EXTREME CAUTION."
C. For packages containing only dried flowers, the net weight of the Cannabis
in the package.
D. A warning if nuts or other known allergens are used.
E. List of pharmacologically active ingredients including, but not limited to,
tetra hydrocannabinol (THC), cannabidiol (CBD), and other cannabinoid content, the
THC and other cannabinoid amount in milligrams per serving, servings per package,
and the THC and other cannabinoid amount in milligrams for the package total.
F. Clear indication, in bold typeface, that the product contains Cannabis.
G. Identification of the source and date of Cultivation and manufacture and
the name and business phone number of the permittee seller of the product.
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H. Only generic food names may be used to describe Edible Cannabis
Products.
5.55.400 General Authority of City Manager.
A. The City Manager may delegate an act required to be performed pursuant
to this Chapter to any Code Enforcement Officer or Official of the City, including without
limitation the Chief of Police, the Fire Chief, the Building Official, the Finance Director,
the City Attorney, or any designee of such officers or officials, including day-to-day
operations.
B. The City Manager or the City Manager's designees as provided in
Subsection A above shall have all the powers of any peace officer to:
1. Investigate violations or suspected violations of this Chapter, Chapter 5.45,
Chapter 3.35, and Section 93.23.15, and any other laws or regulations pertaining to
Adult-Use Cannabis in this City, and any resolutions or regulations promulgated
pursuant to such provisions, and make arrests, with or without warrant, for any violation
thereof, if, during an officer's exercise of powers or performance of duties pursuant to
such laws, probable cause exists that a crime related to such laws has been or is being
committed.
2. View, duplicate, and/or take possession of recordings made by the security
cameras shall be made available to the City Manager upon verbal request; no search
warrant or subpoena shall be needed to view the recorded materials.
3. The City Manager shall have the right to enter an Adult-Use Cannabis
Business or facility from time to time unannounced for the purpose of making
reasonable inspections to observe and enforce compliance with this Chapter and all
laws of the City and State of California.
4. Serve all warrants, summonses, subpoenas, administrative citations,
notices, or other processes relating to the enforcement of laws regulating Adult-Use
Cannabis and Cannabis-infused product.
5. Assist or aid any law enforcement officer in the performance of his or her
duties upon such law enforcement officer's request or the request of other local officials
having jurisdiction.
6. Inspect, examine, or investigate any Adult-Use Cannabis Business and/or
facility or any property where Adult-Use Cannabis or Cannabis-infused product are
grown, stored, cultivated, manufactured, tested, distributed, or sold, and any books and
records in any way connected with any permitted activity.
7. Require any Permittee, upon demand, to permit an inspection of any Adult-
Use Cannabis Business or facility during business hours or at any time of apparent
operation, including without limitation any Cannabis equipment, and Cannabis
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accessories, or books and records; and, to permit the testing of or examination of Adult-
Use Cannabis or Cannabis-infused product.
8. Require Applicants to submit complete and current Applications and fees
and other information the City Manager deems necessary to make permitting decisions
and approve material changes made by any Applicant or permittee;
9. Conduct investigations into the character, criminal history, and all other
relevant factors related to suitability of all Applicants and permittees for Adult-Use
Cannabis Permits and such other persons with a direct or indirect interest in an
Applicant or permittee, as the City Manager may require; and
10. Promulgate such administrative regulations as deemed necessary and
appropriate, provided that said regulations are consistent herewith and with all
applicable State Law.
11. Exercise any other power or duty authorized by law.
C. Applicants and Permittees Shall Cooperate with City Manager Employees.
1. Applicants and Permittees must cooperate with employees and
investigators of the City Manager who are conducting inspections or investigations
relevant to the enforcement of laws and regulations related to this Chapter.
2. No Applicant or Permittee shall by any means interfere with, obstruct, or
impede the City Manager or employee or investigator of the City Manager from
exercising their duties under the provisions of this Chapter and all rules promulgated
pursuant to it. This would include, but is not limited to:
a. Threatening force or violence against an employee or investigator of the
City Manager, or otherwise endeavoring to intimidate, obstruct, or impede employees or
investigators of the City Manager, their supervisors, or any peace officers from
exercising their duties. The term "threatening force" includes the threat of bodily harm to
such individual or to a member of his or her family;
b. Denying employees or investigators of the City Manager access to an
Adult-Use Cannabis Business or facility during business hours or times of apparent
activity;
C. Providing false or misleading statements;
d. Providing false or misleading documents and records;
e. Failing to timely produce requested books and records required to be
maintained by the Permittee; or
f. Failing to timely respond to any other request for information made by the
City Manager in connection with an investigation of the qualifications, conduct or
compliance of an Applicant or permittee.
D. Administrative Hold. To prevent destruction of evidence, diversion, or
other threats to public safety, while permitting a Permittee to retain its inventory pending
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further investigation, a City Manager investigator may order an administrative hold of
Adult-Use Cannabis or Cannabis-infused product pursuant to the following procedure:
1. If during an investigation or inspection of a permittee, the City Manager
develops reasonable grounds to believe certain Adult-Use Cannabis or Cannabis-
infused product constitute evidence of acts in violation of this Chapter or rules
promulgated pursuant to it, or otherwise constitute a threat to the public safety, the City
Manager may issue a notice of administrative hold of any such Adult-Use Cannabis or
Cannabis-infused product. The notice of administrative hold shall provide a documented
description of the Adult-Use Cannabis or Cannabis-infused product to be subject to the
administrative hold.
2. The Permittee shall completely and physically segregate the Adult-Use
Cannabis or Cannabis-infused product subject to the administrative hold in a separate
area of the Location under investigation, where it shall be safeguarded by the Permittee.
Pending the outcome of the investigation and any related disciplinary proceeding, the
Permittee is prohibited from selling, giving away, transferring, transporting, or destroying
the Adult-Use Cannabis or Cannabis-infused product subject to the administrative hold.
3. Following an investigation, the City Manager may lift the administrative
hold, order the continuation of the administrative hold, or seek a Final Agency Order for
the destruction of the Cannabis.
4. Any decision or action of the City Manager pursuant to this Subsection is
subject to appeal pursuant to Section 2.05 of this Code.
E. Voluntary Surrender of Adult-Use Cannabis or Cannabis-Infused Product.
A Permittee, prior to a Final Order and upon mutual agreement with the City Manager,
may elect to waive a right to a hearing and any associated rights, and voluntarily
surrender any Adult-Use Cannabis or Cannabis-infused product to the City Manager.
Such voluntary surrender may require destruction of any Adult-Use Cannabis or
Cannabis-infused product in the presence of a City Manager.
5.55.410 Suspension or Revocation of Commercial Adult-Use Cannabis
Permit.
A. Any of the following shall be grounds for suspension or revocation of a
commercial Adult-Use Cannabis Permit,
1. Failure to comply with one or more of the terms and conditions of the
commercial Adult-Use Cannabis Permit or applicable land use entitlement;
2. The commercial Adult-Use Cannabis Permit was granted on the basis of
false material information, written or oral, given willfully or negligently by the Applicant;
3. Any act or omission by an owner or permittee in contravention of the
provisions of this Chapter or any regulation adopted hereunder;
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4. Any act or omission by a permittee in contravention of State Law or the
Palm Springs Municipal Code;
5. Any act or omission by a permittee that results in the suspension or
revocation of the applicable land use permit issued under the Zoning Ordinance for the
commercial Adult-Use Cannabis activities;
6. Any act or omission by a permittee that results in the denial, revocation or
suspension of the owner's or permittee's State license;
7. An owner's or permittee's failure to take appropriate action to evict or
otherwise remove persons conducting commercial Adult-Use Cannabis activities who
do not maintain the necessary permits or licenses in good standing with the City or
State;
8. Possession or transportation and distribution of any other form of illegal
drugs without proper legal authorization;
9. Failure to pay applicable State or City taxes on commercial Cannabis
activity; or
10. Conduct of the Commercial Adult-Use Cannabis Operations in a manner
that constitutes a nuisance, where the owner or permittee has failed to comply with
reasonable conditions to abate the nuisance.
B. The City Manager shall specify in writing the reasons for the suspension or
revocation and notify the permittee that the decision shall become final unless the
permittee seeks an appeal pursuant to Chapter 2.05 of this Code within ten (10)
calendar days of the date of service of the City Manager's decision. Service of the
decision shall be provided in accordance with the requirements set forth in Chapter 2.05
of this Code.
C. In the event a civil action is initiated to obtain enforcement of the decision
of the City Manager or the City Council, and judgment is entered to enforce the
decision, the person against whom the order of enforcement has been entered shall be
liable to pay the City's total costs of enforcement, including reasonable attorney fees.
D. If neither permittee nor owner, nor their authorized representatives, appear
at any noticed hearing, such failure to appear shall constitute an abandonment of the
hearing request and a failure to exhaust administrative remedies.
5.55.420 Service.
Wherever this Chapter requires the City to serve notice to an Applicant,
permittee, or property owner such notice shall be given by the City Manager, in writing,
and shall be delivered either by personal delivery or by certified U.S. mail, postage
prepaid, return receipt requested. In addition, any such notice may be posted at the
physical address of the premises on the date of the mailing of notice.
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5.55.430 Enforcement and Penalties.
A. The remedies provided by this Chapter are cumulative and in addition to
any other remedies available at law or in equity.
B. It shall be unlawful for any person to violate any provision, or to fail to
comply with any of the requirements, of this Chapter or any regulation adopted
hereunder. Any person violating any of the provisions or failing to comply with any of the
mandatory requirements of this Chapter or any regulation adopted hereunder shall be
guilty of a misdemeanor. No proof of knowledge, intent, or other mental state is required
to establish a violation.
C. Any condition caused or allowed to exist in violation of any of the
provisions of this Chapter or any regulation adopted hereunder shall be deemed a
public nuisance and shall, at the discretion of City, create a cause of action for penalty
pursuant to Chapters 1.20 and 1.22 of the Palm Springs Municipal Code, and any other
action authorized by law.
D. Each and every violation of this Chapter shall constitute a separate
violation and shall be subject to all remedies and enforcement measures authorized by
the Palm Springs Municipal Code or otherwise authorized by law. Additionally, as a
public nuisance, any violation of this Chapter shall be subject to injunctive relief,
disgorgement of any payment to the City of any and all monies unlawfully obtained,
costs of abatement, costs of restoration, costs of investigation, attorney fees, and any
other relief or remedy available at law or in equity. The City may also pursue any and all
remedies and actions available and applicable under State and local laws for any
violations committed by the commercial Adult-Use Cannabis operator or persons related
thereto, or associated with, the Commercial Adult-Use Cannabis Activity.
SECTION 3. The provisions above are adopted based upon the true and
correct recited findings reflected above and incorporated by this reference herein.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this
ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of competent jurisdiction, such decision will not affect the validity of the remaining
portions of this ordinance. The City Council declares that it would have passed this
ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the
ordinance would be subsequently declared invalid or unconstitutional.
SECTION 5. The Mayor shall sign and the City Clerk shall certify to the passage
and adoption of this Ordinance and shall cause the same, or the summary thereof, to be
published and posted pursuant to the provisions of law and this Ordinance shall take
effect thirty (30) days after passage.
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PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 191" DAY OF JULY, 2017.
ROBERT MOON, MAYOR
ATTEST:
KATHLEEN D. HART, MMC
INTERIM CITY CLERK
105 Zxl
Ordinance No.
Page 106
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, hereby
certify that Ordinance No. is a full, true and correct copy, and was introduced
at a regular meeting of the Palm Springs City Council on the 19th day of July, 2017, and
adopted at a regular meeting of the City Council held on the day of
2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
KATHLEEN D. HART, MMC
INTERIM CITY CLERK
106 a
RECEIVE
it r C}F "L'i 5F' ?I;dC
JUL 19 PM 1: 5k22 Rancho Las Palmas Dr.#1772
Rancho Mirage,CA 92270
FICE OF i,i' t l I E" i L._
Sceven.Lederman@gmail.com
July 19, 2017
To: Mayor Moon—City of Palm Springs via e-mail
City Council Members—City of Palm Springs -via Christina.Chartier@paimspringsca.gov
City Manager—City of Palm Springs via e-mail
City Attorney- City of Palm Springs via e-mail
City Clerk- City of Palm Springs via e-mail
From: Steven Lederman
Owner—1247 S Gene Autry Trail
For the Owners of 1247 S Gene Autry Trail sent via e-mail to the City Clerk for Distribution
RE: PROPOSED INTRODUCTION OF ORDINANCE REGARDING COMMERCIAL MEDICAL CANNABIS AND
ADULT USE OF CANNABIS—City Council Meeting July 19,2017-Comments for the City Council
Dear All:
I have been a Landlord for a Not-for-Profit Medical Cannabis Cooperative Collective (MCCC)facility
located at my property on Gene Autry Trail for over two years. As such, I have a unique perspective on
this proposed Ordinance.
I have attempted to review this proposed Ordinance and I find it very confusing. I believe that any rush
to approve this Ordinance is ill advised. The Ordinance itself says on page 17 Section 5.45.055 that the
application of this Ordinance is dependent on the vote regarding taxation that is coming up November
7, 2017. That item to be voted on has not even been presented by the Staff yet, so how can the City
Council vote on this Ordinance without knowing exactly what it entails.
Why not see what the vote is all about and see what the result of the vote is and then make the
necessary adjustments to this proposed Ordinance depending on the result of that vote,at that time?
And, allow the extra time to ensure clarity to these proposed Ordinances.
Further, if I read the proposed Ordinance Section 5.45.055 correctly,then, if the Ballot measure is not
passed,then the existing permittees can operate only under 5.35 regulations and not 5.45 which
without exception requires a new application regardless of any previous approved applications,city or
state. If this is wrong, please let me know.
This Ordinance lacks clarity as regards:
-1-
�a� �1 Iq�ldU�ivrwl Ma rrw�l i-kw, 3.13 .
1. Why would existing permittees who have sold illegally in the City of Palm Springs be allowed to
expand their sales to commercial Medical Cannabis and commercial Adult-Use without further
review? Maybe I am mis-interpreting this proposed Ordinance, but that is what appears to be
occurring.
2. Is the City Council and the City Attorney and the City Manager advocating for existing permittees
who are not in compliance with these new regulations to be allowed to expand their permit to
encompass the above mentioned sales? If so, please be clear on this point in the Ordinance.
3. The requirement of Landlord approval for Commercial Medical Cannabis sales and "Adult-Use"
sales is unclear in this document. Is the City attempting to grandfather in these existing MCCC
permittees whether they comply with this Ordinance or not? And, if so, isn't that a double
standard. Landlord approval on all permits issued for these two new categories is a must in my
view and is required by the Bureau of Marijuana Control Draft Regulations,Title 16, Division 42
concerning this area.
Please review the following:
The proposed Ordinance is very unclear as regards the existing six(6) MCCC permittees. On page 73,
Section 5.55.085, by example only,this Ordinance says that existing permittees get priority in their
applications and that they may use their originally submitted applications for these new types of
permits.
However,this Ordinance in other areas and the Draft State Regulations require Landlord notarized
approval specifically for commercial sales of Medical Cannabis and Landlord notarized approval
specifically for Adult Use and this proposed City Ordinance sets up Landlord responsibilities that do not
currently exist. (See by example, page 19 of the Ordinance, 5.45.080 point E 4.)
These existing MCCC permittees should therefore be required to get Landlord approval for these
changes of use and determine if their Landlords are still willing to be involved with Cannabis Leasing
under these new Ordinance conditions and with Commercial Sales being involved. The City Council may
want to grandfather these entities, however the Landlord Civil Rights cannot be ignored.
Ordinance 1909, Section 5.45.100 requires a new permit application by the permittee every single year.
It clearly says that an application is good for one year and a new application needs to be submitted each
year. This Code has not been enforced. What does this mean? It means that the City may have no
idea of what is occurring actually with these permits. Changes could have occurred which the City is not
aware of. It appears from interaction with the City that the Staff believe this Code relates to the
Business License renewal,when in fact,from what the Code says, it is the complete application. If this
Code was applied, it would flush-out changes in executive management and other pertinent
information.
So, in this new proposed regulation, which application is referenced when the existing application is
discussed for the current permit holders? And, now these existing permittees appear to be allowed to
setup new companies under their existing permit. This seems to violate the existing Medical Marijuana
Not-for-Profit City Ordinance points and seems to set up the scenario where financial irregularities could
become rampant. And,further, if the tenant has a Single Tenant Lease, it violates the Landlord's Civil
Rights to allow another entity in the building of a Property Owner, in violation of the existing Lease.
Without any established recourse line to the City, it leaves the Landlord no option but to withdraw
permission for any cannabis activity to be in their building of any kind or be forced to file suit.
-2-
This newly proposed Ordinance additionally forbids any applicant that has sold illegally in the City of
Palm Springs from getting a permit. Yet, more than one existing MCCC permit holder has operated
illegally in the City of Palm Springs and apparently the City Council was aware of this at the time of such
approvals. Are these permit holders now disqualified from getting a Commercial License for Medical
Cannabis and/or Adult Use Cannabis sales? This Ordinance is unclear. (See by example, page 23 of the
Ordinance,Section 5.45.080 Letter K which reads as follows)
N.Any applicant who operated any cannabis business activity in the City without a permit
issued from the City for such activity shall be deemed unqualified to receive any cannabis
permit for a business or activity under this Chapter and shall not be issued a permit."
"Applicant" is clearly defined in this Ordinance.
Is anything in this writing of the proposed Ordinance an attempt to legitimize otherwise illegitimate
permittees? This is unclear.
After reading this proposed Ordinance, I suspect that an applicant who has illegally operated in the
cannabis arena cannot receive a State permit? Is that correct? If so grandfathering in permittees who
have illegally operated would be a violation of that State requirement. Please get this reviewed.
The definitions of"Owner" and "Property Owner" and "Permittee"are also very confusing and seem to
overlap unnecessarily. If a "Property Owner" is also an "Owner"—whether he or she has any financial
interest in the Cannabis business, then there are new exposures created by this Ordinance for Property
Owners. There are enforcement actions that Landlords are required to take by these Ordinances that
they may not be able to undertake or may not want to take on.
Why not distinguish between the Permittee and the Property Owner by defining those two terms and
not calling a Permittee an Owner and confusing the roles? As this Ordinance is written,every time you
seethe word "Owner", you must substitute in "Property Owner". It is very confusing as written. What
are Property Owner responsibilities? What are Permittee responsibilities? Why is Owner a separate
concept that seems to overlap both of these areas?
Some Property Owners may not be willing to take on these newly outlined risks and may instead, "Opt-
Out" of leasing to a commercial cannabis facility. Property Owners should clearly have this right under
this new Ordinance for existing permittees.
Are the Civil Rights of the existing Landlords of MCCC's being violated by these new Ordinances? The
City needs to get this reviewed by an independent Landlord advocate attorney who understands
Landlord Civil Rights.
What appeal process is there for Landlords who feel that their rights are being unjustly stomped on in
this Cannabis arena by the City of Palm Springs and/or by tenant violation of City Codes?
Something needs to be set up or you will find that Landlords simply refuse to Lease to Cannabis
businesses and the desired result of allowing this sort of activity within the City Limits will be defeated.
-3-
Please slow down the process and get this right and take into account all involved parties.
My Immediate Suggestions and Recommendations Follow:
1. Stop any real or imagined rush to pass this Ordinance. There does not seem to be any urgency
to finalizing these Ordinances. It is even written in the Ordinance that how they are
implemented depends on the results of the November 2017 election. Yet no one reviewing this
knows what that even means since the staff have not completed their submission according to
the City Council Notes. So,why try to push these through FAST. Slow this process down and
allow more time for everyone to review. See the results of the election in November before
proposing to City Council again. Please put all existing Landlords of MCCC facilities on a
distribution list to receive and review any proposed Ordinance that changes their rights.
2. Review these Ordinances from the viewpoint of the Landlords/Property Owners. What checks
and balances should be in place to help out Landlords with tenants who are City authorized
permittees and who do not follow their lease and/or do not follow the City Codes? The action
of requiring the lease as part of the Application Process makes the City of Palm Springs
responsible to not authorize or interject violations of the Tenant/ Landlord Lease in their
Covenant Agreements and their Conditions of Approval.
3. This proposed Ordinance/Set of Codes should be reviewed by an outside qualified Landlord
Civil Rights attorney—not currently connected with this cannabis process and not connected
with Medical Cannabis or otherwise hired by the City of Palm Springs. The review should
determine whether Landlord Civil Rights are being violated in any way by this proposed
Ordinance or any existing Ordinance currently in place. And,consultation by this attorney with
the existing Property Owners who have allowed Not for Profit, Medical Cannabis in their
buildings is also in order to find out what difficulties they have with their tenants.
4. Require City Employees to enforce the Cannabis Codes,as well as other City Codes and
Ordinances.
5. Set up a Cannabis Appeals Board to review injustices that currently exist and Landlord rights
violations that have been enacted by the City of Palm Springs. This Cannabis Appeals Board
must be made up of qualified local business people. These participants in this Cannabis Appeals
Board must not have a conflict of interest regarding any of the existing Cannabis facilities or
Landlords. If they have some sort of future conflict of interest that comes up with a Cannabis
facility or a particular Landlord that they do business with,then that specific person must be
required to recuse him or herself from that specific review. Additionally,this Cannabis Appeals
Board needs to be made up of people who are not patients or clients or recipients of
complementary cannabis from any of these Cannabis facilities.
If this Ordinance is approved as written,the only option that Landlords have is to simply opt-out of
allowing Cannabis facilities in their buildings or they are taking on multiple previously not agreed to
risks.
4
As it is, it is becoming more and more difficult to get insurance for these facilities and the Landlords
should not be pushed into taking on responsibilities to enforce codes that they may not be equipped or
inclined to want to enforce. Non-Admitted insurance carriers are leaving this market. No California
admitted carriers accept this risk.
Thank you for taking the above information into account in your review of this proposed Ordinance.
Sinc ,
ederman
for the Owners of 1247 S Gene Autry Trail
-5-
Ordinance No.
Page 10
Chapter. If the applicant is an entity and not a natural person, applicant shall include all
persons having a twenty(20) percent or more financial interest in the entity.
"Application" means that form provided by the City Manager in accordance
with this Chapter for the purpose of seeking a commercial medical cannabis permit.
"Cannabinoid"or"phytocannabinoid" means a chemical compound that is
unique to and derived from cannabis.
"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 that term is 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 manufactured cannabis that has
undergone a process to concentrate one or more active cannabinoids, thereby
increasing the product's potency. Resin from granular trichomes from a cannabis plant
is a concentrate for purposes of this chapter.A cannabis concentrate 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.
'Canopy'-"Canopy" means all of the following:
(1) The designated area(s)at a licensed premises that will contain mature plants
at any point in time:
(2) Canopy shall be calculated in square feet and measured using clearly
identifiable boundaries of all area(s)that will contain mature plants at any point in time
including all of the space(s)within the boundaries;
10
Ordinance No.
Page 10
Chapter. If the applicant is an entity and not a natural person, applicant shall include all
persons having a twenty(20)percent or more financial interest in the entity.
"Application" means that form provided by the City Manager in accordance
with this Chapter for the purpose of seeking a commercial medical cannabis permit.
"Cannabinoid"or"phytocannabinoid"means a chemical compound that is
unique to and derived from cannabis.
"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 that term is 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 manufactured cannabis that has
undergone a process to concentrate one or more active cannabinoids, thereby
increasing the product's potency. Resin from granular trichomes from a cannabis plant
is a concentrate for purposes of this chapter.A cannabis concentrate 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.
'r,anopy '"Canopy' means all of the following_
(1) The designated area(s)at a licensed premises that will contain mature plants
at any point in time;
2 Canopy shall be calculated in square feet and measured using clearly
identifiable boundaries of all area(s)that will contain mature plants at any point in time
including all of the space(s)within the boundaries:
10
Ordinance No.
Page 10
Chapter. If the applicant is an entity and not a natural person, applicant shall include all
persons having a twenty(20)percent or more financial interest in the entity.
"Application" means that form provided by the City Manager in accordance
with this Chapter for the purpose of seeking a commercial medical cannabis permit.
"Cannabinoid"or"phytocannabinoid"means a chemical compound that is
unique to and derived from cannabis.
"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 that term is 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 manufactured cannabis that has
undergone a process to concentrate one or more active cannabinoids, thereby
increasing the product's potency. Resin from granular trichomes from a cannabis plant
is a concentrate for purposes of this chapter. A cannabis concentrate 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.
'Ganef"Canopy"means all of the following:
(1) The designated area(s)at a licensed premises that will contain mature plants
at any point in time:
(2) Canopy shall be calculated in square feet and measured using clearly
identifiable boundaries of all area(s)that will contain mature plants at any point in time
including all of the space(s)within the boundaries:
10
Ordinance No.
Page 11
(3) Canopy may be noncontiquous but each unique area included in the total
canopy calculation shall be separated by an identifiable boundary such as an interior
wall or by at least 10 feet of open space;
And
(4) If mature plants are being cultivated using a shelving system, the surface
area of each level shall be included in the total canopy calculation.means all areal
GGGUpied by any Portion of, cannabis plant, Gl , 111 fall vertical -pl ones, whether
"Caregiver"or"primary caregiver" has the same meaning as that term is
defined in Section 11362.7 of the California Health and Safety Code.
"Certificate of accreditation" means a certificate issued by an accrediting
body to a licensed testing laboratory, entity, or site to be registered in the state.
"Commercial medical cannabis activity"means the cultivation, possession,
manufacture, processing, storing, laboratory testing, labeling, transporting, distribution,
delivery, or sale of medical cannabis or a medical cannabis product. "Commercial
medical cannabis activity' does not include a qualified patient who cultivates one
hundred(100)square feet total canopy area or less exclusively for his or her personal
use or who possesses, stores, manufactures, or transports cannabis exclusively for his
or her personal medical use but who does not provide, donate, sell, or distribute
cannabis to any other person. "Commercial medical cannabis activity" also does not
include a primary caregiver who cultivates one hundred (100)square feet total canopy
area or less exclusively for the personal medical purposes for each specified qualified
patient, up to five hundred(500)square feet, for whom he or she is the primary
caregiver or who possesses, stores, manufactures, transports, donates, or provides
cannabis exclusively for the personal medical purposes of no more than five specified
qualified patients for whom he or she is the primary caregiver, but who does not receive
remuneration for these activities except for compensation in full compliance with Section
11362.765(c)of the California Health and Safety Code, as it may be amended.
"Commercial medical cannabis permit" means a permit issued by the City
to an applicant to perform commercial medical cannabis activities under this Chapter.
"Commercial medical cannabis operation" means an entity that engages in
commercial cannabis activities.
"Cultivation"means any activity involving the planting, growing,
harvesting, drying, curing, grading, or trimming of medical cannabis. Within the
definition of cultivation, the following specific license types, corresponding to state
11
Ordinance No.
Page 11
(3) Canopy may be noncontiquous but each unique area included in the total
canopy calculation shall be separated by an identifiable boundary such as an interior
wall or by at least 10 feet of open space;
And
(4) If mature plants are being cultivated using a shelving system the surface
area of each level shall be included in the total canopy calculation.means all areas
occupied by any portion of a cannabis plant, inclusive of venicaal p!a:,es,-whathecontiguous or nC)RGGntiguc)us OR any GRe site.
"Caregiver" or"primary caregiver' has the same meaning as that term is
defined in Section 11362.7 of the California Health and Safety Code.
"Certificate of accreditation" means a certificate issued by an accrediting
body to a licensed testing laboratory, entity, or site to be registered in the state.
"Commercial medical cannabis activity" means the cultivation, possession,
manufacture, processing, storing, laboratory testing, labeling, transporting, distribution,
delivery, or sale of medical cannabis or a medical cannabis product. "Commercial
medical cannabis activity"does not include a qualified patient who cultivates one
hundred (100)square feet total canopy area or less exclusively for his or her personal
use or who possesses, stores, manufactures, or transports cannabis exclusively for his
or her personal medical use but who does not provide, donate, sell, or distribute
cannabis to any other person. "Commercial medical cannabis activity'also does not
include a primary caregiver who cultivates one hundred (100)square feet total canopy
area or less exclusively for the personal medical purposes for each specified qualified
patient, up to five hundred (500)square feet, for whom he or she is the primary
caregiver or who possesses, stores, manufactures, transports, donates, or provides
cannabis exclusively for the personal medical purposes of no more than five specified
qualified patients for whom he or she is the primary caregiver, but who does not receive
remuneration for these activities except for compensation in full compliance with Section
11362.765(c)of the California Health and Safety Code, as it may be amended.
"Commercial medical cannabis permit"means a permit issued by the City
to an applicant to perform commercial medical cannabis activities under this Chapter.
"Commercial medical cannabis operation" means an entity that engages in
commercial cannabis activities.
"Cultivation"means any activity involving the planting, growing,
harvesting, drying, curing, grading, or trimming of medical cannabis. Within the
definition of cultivation, the following specific license types, corresponding to state
11
Ordinance No.
Page 32
5. The testing facilities and related activities shall be maintained in
accordance with the operating plans approved by the City.
C. Notwithstanding any of the provisions of this Section 5.45.098, a permitted
medical cannabis business may conduct internal testing of medical cannabis or medical
cannabis products. However, this provision shall not be interpreted to authorize or
permit cross-licensing of_a testing laboratory with any other type of permit of license
hereunder, or with respect to State law. Further, it shall be a violation of this ordinance
for any medical cannabis business to publish or share with any third party any result of
any internal testing.
5.45.099 Required Findings and Conditions for Transportation and Distribution
Facilities.
A. A permit for medical cannabis transportation and distribution facility shall
not be granted by the City Manager unless all of the following findings are made based
on substantial evidence:
1. The transportation and distribution facility, as proposed,will comply with all
of the requirements of the State and City for the medical cannabis transportation and
distribution.
2. The transportation and distribution facility complies with the locational
requirements of the Zoning Ordinance. The location of each medical cannabis collective
or cooperative previously approved pursuant to Chapter 5.35 shall be deemed an
existing location subject to the provisions of this Chapter.
3. The medical cannabis transportation and distribution as approved and
conditioned, will not result in significant unavoidable impacts on the environment.
4. Plans for the distribution facility demonstrate proper protocols and
procedures that address the federal enforcement priorities for cannabis activities
including providing restrictions on access to minors, prohibiting use or possession of
firearms for security purposes at the premises, and ensuring that medical cannabis and
medical cannabis products are obtained from and supplied only to other permitted
licensed sources within the State.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for a medical
cannabis transportation and distribution facility:
1. The owner and permittees of the transportation and distribution facility
shall allow access to the facility and access to records if requested by the City, its
32
Ordinance No.
Page 32
5. The testing facilities and related activities shall be maintained in
accordance with the operating plans approved by the City.
C. Notwithstanding any of the provisions of this Section 5.45.098, a permitted
medical cannabis business may conduct internal testing of medical cannabis or medical
cannabis products. However, this provision shall not be interpreted to authorize or
permit cross-licensing of a testing laboratory with any other type of permit of license
hereunder, or with respect to State law. Further, it shall be a violation of this ordinance
for any medical cannabis business to publish or share with any third party any result of
any internal testing.
5.45.099 Required Findings and Conditions for Transportation and Distribution
Facilities.
A. A permit for medical cannabis transportation and distribution facility shall
not be granted by the City Manager unless all of the following findings are made based
on substantial evidence:
1. The transportation and distribution facility, as proposed,will comply with all
of the requirements of the State and City for the medical cannabis transportation and
distribution.
2. The transportation and distribution facility complies with the locational
requirements of the Zoning Ordinance.The location of each medical cannabis collective
or cooperative previously approved pursuant to Chapter 5.35 shall be deemed an
existing location subject to the provisions of this Chapter.
3. The medical cannabis transportation and distribution as approved and
conditioned,will not result in significant unavoidable impacts on the environment.
4. Plans for the distribution facility demonstrate proper protocols and
procedures that address the federal enforcement priorities for cannabis activities
including providing restrictions on access to minors, prohibiting use or possession of
firearms for security purposes at the premises, and ensuring that medical cannabis and
medical cannabis products are obtained from and supplied only to other permitted
licensed sources within the State.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for a medical
cannabis transportation and distribution facility:
1. The owner and permittees of the transportation and distribution facility
shall allow access to the facility and access to records if requested by the City, its
32
Ordinance No.
Page 38
request), provided on a per-month basis. The statement shall also include gross sales
for each month, and all applicable taxes paid or due to be paid.
3. Each permittee of a medical cannabis business shall maintain a current
register of the names and the contact information(including the name, address, and
telephone number)of anyone owning or holding an interest in the medical cannabis
business, and separately of all the officers, managers, employees, agents, and
volunteers currently employed or otherwise engaged by the medical cannabis business.
The register required by this paragraph shall be provided to the City Manager or his/her
designee(s)upon a reasonable request.
4. The permittee shall post or cause to be posted on site all required city and
state permits and licenses required to operate. Such posting shall be in a central
location, visible to the patrons, at the operating site, and in all vehicles that deliver or
transport medical cannabis.
5. Each permittee of a medical cannabis business shall maintain a record of
all persons, patients, collectives, and primary caregivers served by the medical
cannabis business,for a period of no less than four(4)years.
6. Each permittee of a medical cannabis business shall maintain an inventory
control and reporting system that accurately documents the present location, amounts,
and descriptions of all cannabis and cannabis products for all stages of the growing and
production or manufacturing, laboratory testing and distribution processes until
purchase by or distribution to a qualified patient or primary caregiver.
7. Subject to any restrictions under the Health Insurance Portability and
Accountability Act(HIPAPA)regulations, each medical cannabis business shall allow
City of Palm Springs officials to have access to the business's books, records,
accounts, together with any other data or documents relevant to its permitted medical
cannabis activities, for the purpose of conducting an audit or examination. Books,
records, accounts, and any and all relevant data or documents will be produced no later
than twenty-four(24) hours after receipt of the City's request, unless otherwise
stipulated by the City.
8. The permittee shall maintain clear and adequate records and
documentation demonstrating that all cannabis or cannabis products have been
obtained from and are provided to other permitted and licensed cannabis operations.
The City shall have the right to examine, monitor, and audit such records and
documentation, which shall be made available to the City upon request.
38
Ordinance No.
Page 38
request), provided on a per-month basis. The statement shall also include gross sales
for each month, and all applicable taxes paid or due to be paid.
3. Each permittee of a medical cannabis business shall maintain a current
register of the names and the contact information (including the name, address, and
telephone number)of anyone owning or holding an interest in the medical cannabis
business, and separately of all the officers, managers, employees,agents, and
volunteers currently employed or otherwise engaged by the medical cannabis business.
The register required by this paragraph shall be provided to the City Manager or his/her
designee(s)upon a reasonable request.
4. The permittee shall post or cause to be posted on site all required city and
state permits and licenses required to operate. Such posting shall be in a central
location, visible to the patrons, at the operating site, and in all vehicles that deliver or
transport medical cannabis.
5. Each permittee of a medical cannabis business shall maintain a record of
all persons, patients, collectives, and primary caregivers served by the medical
cannabis business,for a period of no less than four(4)years.
6. Each permittee of a medical cannabis business shall maintain an inventory
control and reporting system that accurately documents the present location, amounts,
and descriptions of all cannabis and cannabis products for all stages of the growing and
production or manufacturing, laboratory testing and distribution processes until
purchase by or distribution to a qualified patient or primary caregiver.
7. Subject to any restrictions under the Health Insurance Portability and
Accountability Act(HIPARA)regulations, each medical cannabis business shall allow
City of Palm Springs officials to have access to the business's books, records,
accounts, together with any other data or documents relevant to its permitted medical
cannabis activities,for the purpose of conducting an audit or examination. Books,
records, accounts, and any and all relevant data or documents will be produced no later
than twenty-four(24)hours after receipt of the City's request, unless otherwise
stipulated by the City.
8. The permittee shall maintain clear and adequate records and
documentation demonstrating that all cannabis or cannabis products have been
obtained from and are provided to other permitted and licensed cannabis operations.
The City shall have the right to examine, monitor, and audit such records and
documentation,which shall be made available to the City upon request.
38
Ordinance No.
Page 39
9. All medical cannabis manufacturing facilities shall operate within a legal
structure that is compliant with all applicable State and local laws.
10. All medical cannabis businesses must pay all applicable sales taxes and
fees pursuant to all federal, State, and local laws and the owner and/or operator shall
not be delinquent in the payment of such taxes and fees.
11. On-site smoking, ingestion, or consumption of cannabis or alcohol shall be
prohibited on the premises of all medical cannabis manufacturing facilities. The term
"premises" as used in this Subsection includes the actual medical cannabis
manufacturing building, as well as any accessory structures and parking areas. The
medical cannabis manufacturing facility building entrance shall be clearly and legibly
posted with a notice indicating that smoking, ingesting, or consuming cannabis or
alcohol on the premises or in the vicinity of the facility is prohibited.
12. Signage for al�-anmedical cannabis manufacturing business facilityies
and/or location shall he im to "^ tGinclude the name of business-only, and shall be in
compliance with the City's sign ordinance and applicable City design standards.sede;
and shalt contain-no-advertising of any corn panies,-brands-;-product&�goeds-o
serViGeT
Sig Rage Shall RGt'R Gl de any drug related cymbals.
13. Alcoholic beverages shall not be sold, stored, distributed, or consumed on
the premises. Medical cannabis manufacturing facilities shall not hold or maintain a
license from the State Department of Alcohol Beverage Control to sell alcoholic
beverages, or operate a business that sells alcoholic beverages. In addition, alcoholic
beverages shall not be provided, stored, kept, located, sold, dispensed, or used on the
premises of any medical cannabis manufacturing facility.
14. Physician services shall not be provided on the premises. "Physician
services" includes without limitation the evaluation of patients for the issuance of a
medical cannabis recommendation or card. "Physician services"does not include social
services, including counseling, help with housing and meals, hospice, and other care
referrals which may be provided on site.
15. The building in which any medical cannabis business facility is located, as
well as the operations as conducted therein, shall fully comply with all applicable rules,
regulations, and laws including, but not limited to, zoning and building codes,the City's
business license ordinances, the Revenue and Taxation Code,the Americans with
Disabilities Act, and MAUCRSA. Compliance with all requirements of State Law
pertaining to medical cannabis manufacturing is also required.
39
Ordinance No.
Page 39
9. All medical cannabis manufacturing facilities shall operate within a legal
structure that is compliant with all applicable State and local laws.
10. All medical cannabis businesses must pay all applicable sales taxes and
fees pursuant to all federal, State, and local laws and the owner and/or operator shall
not be delinquent in the payment of such taxes and fees.
11. On-site smoking, ingestion, or consumption of cannabis or alcohol shall be
prohibited on the premises of all medical cannabis manufacturing facilities. The term
"premises"as used in this Subsection includes the actual medical cannabis
manufacturing building, as well as any accessory structures and parking areas. The
medical cannabis manufacturing facility building entrance shall be clearly and legibly
posted with a notice indicating that smoking, ingesting, or consuming cannabis or
alcohol on the premises or in the vicinity of the facility is prohibited.
12. Signage for all-anymedical cannabis manufastariagbusiness facilityies
and/or location shall be limited teinclude the name of business-OPty, and shall be in
compliance with the City's sign ordinance and applicable City design standards.sede;
13. Alcoholic beverages shall not be sold, stored, distributed, or consumed on
the premises. Medical cannabis manufacturing facilities shall not hold or maintain a
license from the State Department of Alcohol Beverage Control to sell alcoholic
beverages, or operate a business that sells alcoholic beverages. In addition, alcoholic
beverages shall not be provided, stored, kept, located, sold, dispensed, or used on the
premises of any medical cannabis manufacturing facility.
14. Physician services shall not be provided on the premises. "Physician
services"includes without limitation the evaluation of patients for the issuance of a
medical cannabis recommendation or card. "Physician services'does not include social
services, including counseling, help with housing and meals, hospice, and other care
referrals which may be provided on site.
15. The building in which any medical cannabis business facility is located, as
well as the operations as conducted therein, shall fully comply with all applicable rules,
regulations, and laws including, but not limited to, zoning and building codes,the City's
business license ordinances, the Revenue and Taxation Code, the Americans with
Disabilities Act, and MAUCRSA. Compliance with all requirements of State Law
pertaining to medical cannabis manufacturing is also required.
39
Ordinance No.
Page 64
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 that term is
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 manufactured Cannabis that has
undergone a process to concentrate one or more active cannabinoids, thereby
increasing the product's potency. Resin from granular trichomes from a Cannabis plant
is a concentrate for purposes of this chapter. A Cannabis Concentrate 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.
--"Canopy, means all of the following: Formatted:Indent:Lek: 0.5"
(1) The designated areas)at a licensed premises that will contain mature Formatted:Indent:Lek: 0^,First une. 1"
plants at any point in time;
(2) Canopy shall be calculated in square feet and measured usinq clearly
identifiable boundaries of all area(s) that will contain mature plants at any point in time
including_all_of_the space(s)within the boundaries
(3) Canopy may be noncontiquous but each unique area included in the
total_canopy calculation shall be separated by_an identifiable boundary such as an
interior wall or by at least 10 feet oLopen space
And
(4) If mature plants are being cultivated using a shelving system. the- Formatted:Indent First fine I
surface area of each level shall be included in the total canopy calculation. "Canopy"
rnpanq all wpa,; oGGupled by any perAien of a Cann bis plant, inclusive of all vertical
planes, whether cont guous or noncontiguous on any one site
"Caregiver" or "Primary Caregiver" has the same meaning as that term is
defined in Section 11362.7 of the California Health and Safety Code.
"Certificate of Accreditation" means a certificate issued by an accrediting
body to a licensed Testing Laboratory, entity, or site to be registered in the state.
"Commercial Adult-Use Cannabis Activity" means the Cultivation,
possession, manufacture, processing, storing, laboratory testing, labeling, transporting,
distribution, delivery, or sale of Adult-Use Cannabis or an Adult-Use Cannabis Product.
"Commercial Adult-Use Cannabis Permit" means a permit issued by the
City to an Applicant to perform commercial Adult-Use Cannabis activities under this
Chapter.
"Commercial Adult-Use Cannabis Operation" means an entity that
engages in commercial Adult-Use Cannabis Activities.
64
Ordinance No.
Page 64
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 that term is
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 manufactured Cannabis that has
undergone a process to concentrate one or more active cannabinoids, thereby
increasing the product's potency. Resin from granular trichomes from a Cannabis plant
is a concentrate for purposes of this chapter. A Cannabis Concentrate 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.
"Canopy" means all of the following: Formatted:ridenc pert: o 5"
(1) The designated area(s)at a licensed premises that will contain mature- Formatted:Indent:Lek: 0",First line: V.
plants at any point in time;
(2) Canopy shall be calculated in square feet and measured using clearly
identifiable boundaries of all area(s) that will contain mature plants at any point in time
including all of the space(s)within the boundaries;
(3) Canopy may be noncontiguous but each unique area included in the
total canopy calculation shall be separated by an identifiable boundary such as an
interior wall or by at least 10 feet of open space;
And
(4) If mature plants are being cultivated using a shelving system the- For�,at":indent.First line: I"
surface area of each level shall be included in the,total canopy calculation. tCanepy"
means all areas occupied by any portion of a Cannabis plant, inclusive of all vertical
planes, whether GoMiguous OF nORGentiguous on any One s te.
"Caregiver" or "Primary Caregiver" has the same meaning as that term is
defined in Section 11362.7 of the California Health and Safety Code.
"Certificate of Accreditation" means a certificate issued by an accrediting
body to a licensed Testing Laboratory, entity,or site to be registered in the state.
"Commercial Adult-Use Cannabis Activity" means the Cultivation,
possession, manufacture, processing, storing, laboratory testing, labeling, transporting,
distribution, delivery, or sale of Adult-Use Cannabis or an Adult-Use Cannabis Product.
"Commercial Adult-Use Cannabis Permit" means a permit issued by the
City to an Applicant to perform commercial Adult-Use Cannabis activities under this
Chapter.
"Commercial Adult-Use Cannabis Operation" means an entity that
engages in commercial Adult-Use Cannabis Activities.
64
Ordinance No.
Page 68
"Nursery' means a licensee that produces only clones, immature plants,
seeds, and other agricultural products used specifically for the planting, propagation,
and Cultivation of Adult-Use Cannabis.
"Owner" means the person, firm, corporation, or partnership that owns
property or is in possession thereof under a contract to purchase or under a lease, by a
person or persons, firm, corporation, or partnership, individually, jointly, in common, or
in any other manner whereby such property is under single or unified control. The term
"Owner" does not include a lessor of real property subject to a ground lease of ten or
more years where the Owner as lessor does not retain any interest or right of control in
any building constructed on the real property subject to such ground lease.
"Permittee" means a person issued a City permit under this Chapter.
"Person" means an individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or
any other group or combination acting as a unit and includes the plural as well as the
singular number.
"Premises" means the building or greenhouse in which commercial Adult-
Use Cannabis activities are operated and, in addition, any accessory structures and
appurtenant areas.
"Property Owner' means the individual or entity who is the record owner of
the subject property where commercial Adult-Use Cannabis activities are located or are
proposed to be located. The term "Property Owner' does not include a lessor of real
property subject to a ground lease of ten or more years where the Owner as lessor does
not retain any interest or right of control in any building constructed on the real property
subject to such ground lease.
"State Law" means all statutes, rules, and regulations relating to the
Cultivation, manufacture, dispensing, sale, distribution, and transportation of Adult-Use
Cannabis, as such statutes, rules, and regulations as may be amended from time to
time.
"State license," "license," or"registration" means a state license issued by
the State of California, or one of its departments or divisions, under MAUCRSA to
engage in Adult-Use Cannabis Activity.
"Testing Laboratory" means a facility, entity, or site in the City that offers
or performs testing -of Adult-Use Cannabis or Adult-Use 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 Adult-Use Cannabis industry in the state; and
2. Registered with the California State Department of Public Health.
"Topical Cannabis" means a product intended for external use. A topical
Cannabis Product is not considered a drug as defined by Section 109925 of the
California Health and Safety Code.
68
Ordinance No.
Page 68
"Nursery' means a licensee that produces only clones, immature plants,
seeds, and other agricultural products used specifically for the planting, propagation,
and Cultivation of Adult-Use Cannabis.
"Owner" means the person, firm, corporation, or partnership that owns
property or is in possession thereof under a contract to purchase or under a lease, by a
person or persons, firm, corporation, or partnership, individually, jointly, in common, or
in any other manner whereby such property is under single or unified control. The term
"Owner" does not include a lessor of real property subject to a ground lease of ten or
more years where the Owner as lessor does not retain any interest or right of control in
any building constructed on the real property subject to such ground lease.
"Permittee" means a person issued a City permit under this Chapter.
"Person" means an individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or
any other group or combination acting as a unit and includes the plural as well as the
singular number.
"Premises" means the building or greenhouse in which commercial Adult-
Use Cannabis activities are operated and, in addition, any accessory structures and
appurtenant areas.
"Property Owner" means the individual or entity who is the record owner of
the subject property where commercial Adult-Use Cannabis activities are located or are
proposed to be located. The term "Property Owner' does not include a lessor of real
property subject to a ground lease of ten or more years where the Owner as lessor does
not retain any interest or right of control in any building constructed on the real property
subject to such ground lease.
"State Law" means all statutes, rules, and regulations relating to the
Cultivation, manufacture, dispensing, sale, distribution, and transportation of Adult-Use
Cannabis, as such statutes, rules, and regulations as may be amended from time to
time.
"State license," "license," or"registration" means a state license issued by
the State of California, or one of its departments or divisions, under MAUCRSA to
engage in Adult-Use Cannabis Activity.
"Testing Laboratory" means a facility, entity, or site in the City that offers
or performs testing -of Adult-Use Cannabis or Adult-Use 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 Adult-Use Cannabis industry in the state; and
2. Registered with the California State Department of Public Health.
"Topical Cannabis" means a product intended for external use. A topical
Cannabis Product is not considered a drug as defined by Section 109925 of the
California Health and Safety Code.
68
Ordinance No.
Page 81
3. The Adult-Use Cannabis testing, as approved and conditioned, will not
result in significant unavoidable impacts on the environment.
4. The owners, permittees, operators, and employees of the testing or
laboratory facility will not be associated or cross-licensed with any other form of
commercial Adult-Use or medical Cannabis activity.
5. The testing facility is accredited by an appropriate accrediting agency.
6. Plans for the testing facility demonstrate proper protocols and procedures
for statistically valid sampling methods and accurate certification of Adult-Use Cannabis
and Adult-Use Cannabis Products for potency, purity, pesticide residual levels, mold,
and other contaminants according to adopted industry standards.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for an Adult-Use
Cannabis testing facility:
1. The owner and permittees of the testing facility shall allow access to the
facility and access to records if requested by the City, its officers, or agents, and shall
pay for an annual inspection and submit to inspections from the City or its officers to
verify compliance with all relevant rules, regulations, and conditions.
2. The Applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter from any enforcement officer of the City or their
designee.
3. The Applicant for the testing facility and the owner shall indemnify, defend,
and hold the City harmless from any and all claims and proceedings relating to the
approval of the permit or relating to any damage to property or persons stemming from
the Commercial Adult-Use Cannabis Activity.
4. The owner shall be responsible for ensuring that all commercial Adult-Use
Cannabis activities at the site operate in good standing with all permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
Adult-Use Cannabis activities at the site who do not maintain permits or licenses in
good standing with the City or State shall be grounds for the suspension or revocation
of a permit pursuant to this Chapter.
5. The testing facilities and related activities shall be maintained in
accordance with the operating plans approved by the City.
C. Notwithstanding any of the provisions of this Section 5.55.098, a permitted
Adult-Use Cannabis Business may conduct internal testing of Adult-Use Cannabis or
Adult-Use Cannabis products. However, this provision shall not be interpreted to
authorize or permit cross-licensing of a testing laboratory with any other type of permit
of license hereunder, or with respect to State law. Further, it shall be a violation of this
81
Ordinance No.
Page 81
3. The Adult-Use Cannabis testing, as approved and conditioned, will not
result in significant unavoidable impacts on the environment.
4. The owners, permittees, operators, and employees of the testing or
laboratory facility will not be associated or cross-licensed with any other form of
commercial Adult-Use or medical Cannabis activity.
5. The testing facility is accredited by an appropriate accrediting agency.
6. Plans for the testing facility demonstrate proper protocols and procedures
for statistically valid sampling methods and accurate certification of Adult-Use Cannabis
and Adult-Use Cannabis Products for potency, purity, pesticide residual levels, mold,
and other contaminants according to adopted industry standards.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for an Adult-Use
Cannabis testing facility:
1. The owner and permittees of the testing facility shall allow access to the
facility and access to records if requested by the City, its officers, or agents, and shall
pay for an annual inspection and submit to inspections from the City or its officers to
verify compliance with all relevant rules, regulations, and conditions.
2. The Applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter from any enforcement officer of the City or their
designee.
3. The Applicant for the testing facility and the owner shall indemnify, defend,
and hold the City harmless from any and all claims and proceedings relating to the
approval of the permit or relating to any damage to property or persons stemming from
the Commercial Adult-Use Cannabis Activity.
4. The owner shall be responsible for ensuring that all commercial Adult-Use
Cannabis activities at the site operate in good standing with all permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
Adult-Use Cannabis activities at the site who do not maintain permits or licenses in
good standing with the City or State shall be grounds for the suspension or revocation
of a permit pursuant to this Chapter.
5. The testing facilities and related activities shall be maintained in
accordance with the operating plans approved by the City.
C. Notwithstanding any of the provisions of this Section 5.55.098, a permitted
Adult-Use Cannabis Business may conduct internal testing of Adult-Use Cannabis or
Adult-Use Cannabis products. However, this provision shall not be interpreted to
authorize or permit cross-licensing of a testing laboratory with any other type of permit
of license hereunder, or with respect to State law. Further, it shall be a violation of this
81
Ordinance No.
Page 82
ordinance for any Adult-Use Cannabis business to publish or share with anV third party
any result of any internal testing.
5.55.099 Required Findings and Conditions for Transportation and
Distribution Facilities.
A. A permit for an Adult-Use Cannabis transportation and distribution facility
shall not be granted by the City Manager unless all of the following findings are made
based on substantial evidence:
1. The transportation and distribution facility, as proposed, will comply with all
of the requirements of the State and City for the Adult-Use Cannabis transportation and
distribution.
2. The transportation and distribution facility complies with the locational
requirements of the City's Zoning Ordinance. The location of any medical Cannabis
collective or cooperative previously approved pursuant to Chapter 5.35 shall be deemed
an existing location subject to the provisions of this Chapter.
3. The Adult-Use Cannabis transportation and distribution as approved and
conditioned, will not result in significant unavoidable impacts on the environment.
4. Plans for the distribution facility demonstrate proper protocols and
procedures that address the federal enforcement priorities for Cannabis activities
including providing restrictions on access to minors, prohibiting use or possession of
firearms for security purposes at the premises, and ensuring that Adult-Use Cannabis
and Adult-Use Cannabis Products are obtained from and supplied only to other
permitted licensed sources within the State.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for an Adult-Use
Cannabis transportation and distribution facility:
1. The owner and permittees of the transportation and distribution facility
shall allow access to the facility and access to records if requested by the City, its
officers, or agents, and shall pay for an annual inspection and submit to inspections
from the City or its officers to verify compliance with all relevant rules, regulations, and
conditions.
2. The Applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter from any enforcement officer of the City or their
designee.
3. The Applicant for the transportation and distribution facility and the owner
shall indemnify, defend, and hold the City harmless from any and all claims and
proceedings relating to the approval of the permit or relating to any damage to property
or persons stemming from the Commercial Adult-Use Cannabis Activity.
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Ordinance No.
Page 82
ordinance for any Adult-Use Cannabis business to publish or share with any third party
any result of any internal testing.
5.55.099 Required Findings and Conditions for Transportation and
Distribution Facilities.
A. A permit for an Adult-Use Cannabis transportation and distribution facility
shall not be granted by the City Manager unless all of the following findings are made
based on substantial evidence:
1. The transportation and distribution facility, as proposed, will comply with all
of the requirements of the State and City for the Adult-Use Cannabis transportation and
distribution.
2. The transportation and distribution facility complies with the locational
requirements of the City's Zoning Ordinance. The location of any medical Cannabis
collective or cooperative previously approved pursuant to Chapter 5.35 shall be deemed
an existing location subject to the provisions of this Chapter.
3. The Adult-Use Cannabis transportation and distribution as approved and
conditioned,will not result in significant unavoidable impacts on the environment.
4. Plans for the distribution facility demonstrate proper protocols and
procedures that address the federal enforcement priorities for Cannabis activities
including providing restrictions on access to minors, prohibiting use or possession of
firearms for security purposes at the premises, and ensuring that Adult-Use Cannabis
and Adult-Use Cannabis Products are obtained from and supplied only to other
permitted licensed sources within the State.
B. In addition to any other conditions and mitigation measures required by the
City Manager, all of the following conditions shall apply to all permits for an Adult-Use
Cannabis transportation and distribution facility:
1. The owner and permittees of the transportation and distribution facility
shall allow access to the facility and access to records if requested by the City, its
officers, or agents, and shall pay for an annual inspection and submit to inspections
from the City or its officers to verify compliance with all relevant rules, regulations, and
conditions.
2. The Applicant, owner, and permittees agree to submit to, and pay for,
inspections of the operations and relevant records or documents necessary to
determine compliance with this Chapter from any enforcement officer of the City or their
designee.
3. The Applicant for the transportation and distribution facility and the owner
shall indemnify, defend, and hold the City harmless from any and all claims and
proceedings relating to the approval of the permit or relating to any damage to property
or persons stemming from the Commercial Adult-Use Cannabis Activity.
82
Ordinance No.
Page 83
4. The owner shall be responsible for ensuring that all commercial Adult-Use
Cannabis activities at the site operate in good standing with permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
Adult-Use Cannabis activities at the site who do not maintain permits or licenses in
good standing with the City or State shall be grounds for the modification or revocation
of a permit pursuant to this Chapter.
5. The transportation and distribution facilities and activities shall be
maintained in accordance with the operating plans approved by the City.
C. Notwithstanding any of the provisions of this Section 5.55.098, a permitted
Adult-Use Cannabis Business may conduct internal testing of Adult-Use Cannabis or
Adult-Use Cannabis products. However, this provision shall not be interpreted to
authorize or permit cross-licensing of a Testi aboratoiawith any other type of permit
of license hereunder, or with respect to State law.
5.55.100 Commercial Adult-Use Cannabis Permit Renewals.
A. Each commercial Adult-Use Cannabis Permit shall expire one year after
the date of its issuance. Any permit may be renewed by the City Manager upon the
submission of a renewal Application by the permittee and upon determination by the
City Manager that the Applicant meets the standards for grant of Application as
provided in this Chapter. At the time of consideration of a renewal Application, the City
Manager shall consider compliance with conditions in the prior term.
B. Any Application for renewal shall be filed with the City Manager at least
thirty(30)calendar days before expiration of the permit. If any of the documentation and
information supplied by the Applicant pursuant to Section 5.55.080 has changed since
the grant of the permit, Applicant shall submit updated information and documentation
with the Application for renewal and shall provide such other information as the Director
of Planning may require.
C. Any Application for renewal shall be denied if:
1. The Application is filed fewer than thirty (30) calendar days before its
expiration;
2. The permittee fails to conform to the criteria set forth in this Chapter;
3. The permittee is delinquent in payment of any City taxes on commercial
Cannabis activity; or
4. The permit is suspended or revoked at the time of the Application.
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Ordinance No.
Page 83
4. The owner shall be responsible for ensuring that all commercial Adult-Use
Cannabis activities at the site operate in good standing with permits and licenses
required by the City of Palm Springs Code and State Law. Failure to take appropriate
action to evict or otherwise remove permittees and persons conducting commercial
Adult-Use Cannabis activities at the site who do not maintain permits or licenses in
good standing with the City or State shall be grounds for the modification or revocation
of a permit pursuant to this Chapter.
5. The transportation and distribution facilities and activities shall be
maintained in accordance with the operating plans approved by the City.
C. Notwithstanding any of the provisions of this Section 5.55.098, a permitted
Adult-Use Cannabis Business may conduct internal testing of Adult-Use Cannabis or
Adult-Use Cannabis products. However, this provision shall not be interpreted to
authorize or permit cross-licensing of a Testing Laboratory with any other type of permit
of license hereunder, or with respect to State law.
5.55.100 Commercial Adult-Use Cannabis Permit Renewals.
A. Each commercial Adult-Use Cannabis Permit shall expire one year after
the date of its issuance. Any permit may be renewed by the City Manager upon the
submission of a renewal Application by the permittee and upon determination by the
City Manager that the Applicant meets the standards for grant of Application as
provided in this Chapter. At the time of consideration of a renewal Application, the City
Manager shall consider compliance with conditions in the prior term.
B. Any Application for renewal shall be filed with the City Manager at least
thirty(30)calendar days before expiration of the permit. If any of the documentation and
information supplied by the Applicant pursuant to Section 5.55.080 has changed since
the grant of the permit, Applicant shall submit updated information and documentation
with the Application for renewal and shall provide such other information as the Director
of Planning may require.
C. Any Application for renewal shall be denied if:
1. The Application is filed fewer than thirty (30) calendar days before its
expiration;
2. The permittee fails to conform to the criteria set forth in this Chapter;
3. The permittee is delinquent in payment of any City taxes on commercial
Cannabis activity; or
4. The permit is suspended or revoked at the time of the Application.
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Ordinance No.
Page 88
5. Each permittee of an Adult-Use Cannabis Business shall maintain an
inventory control and reporting system that accurately documents the present location,
amounts, and descriptions of all Cannabis and Cannabis Products for all stages of the
growing and production or manufacturing, laboratory testing and distribution processes
until purchase by or distribution to a qualified patient or Primary Caregiver.
6. Each Adult-Use Cannabis Business shall allow City of Palm Springs
officials to have access to the business's books, records, accounts, together with any
other data or documents relevant to its permitted Adult-Use Cannabis activities, for the
purpose of conducting an audit or examination. Books, records, accounts, and any and
all relevant data or documents will be produced no later than twenty-four (24) hours
after receipt of the City's request, unless otherwise stipulated by the City.
7. The permittee shall maintain clear and adequate records and
documentation demonstrating that all Cannabis or Cannabis Products have been
obtained from and are provided to other permitted and licensed Cannabis operations.
The City shall have the right to examine, monitor, and audit such records and
documentation,which shall be made available to the City upon request.
8. All Adult-Use Cannabis manufacturing facilities shall operate within a legal
structure that is compliant with all applicable State and local laws.
9. All Adult-Use Cannabis Businesses must pay all applicable sales taxes and
fees pursuant to all federal, State, and local laws and the owner and/or operator shall
not be delinquent in the payment of such taxes and fees.
10. On-site smoking, ingestion, or consumption of Cannabis or alcohol shall be
prohibited on the premises of all Adult-Use Cannabis manufacturing facilities. The term
"premises" as used in this Subsection includes the actual Adult-Use Cannabis
manufacturing building, as well as any accessory structures and parking areas. The
Adult-Use Cannabis manufacturing facility building entrance shall be clearly and legibly
posted with a notice indicating that smoking, ingesting, or consuming Cannabis or
alcohol on the premises or in the vicinity of the facility is prohibited.
11. Signage for a4-aeAdult-Use Cannabis manufacturing Business facility
and/or location fa^�twR.,; shall include be I'�d tithe name of the business-0nty, and
shall be in compliance with the City's sign codeordinance and any applicable Citv
design standards.. —brands products,
gGG(JS, GF SeP�iG86. gigRagO Shall not include any drug related symbols.
12. Alcoholic beverages shall not be sold, stored, distributed, or consumed on
the premises. Adult-Use Cannabis manufacturing facilities shall not hold or maintain a
license from the State Department of Alcohol Beverage Control to sell alcoholic
beverages, or operate a business that sells alcoholic beverages. In addition, alcoholic
beverages shall not be provided, stored, kept, located, sold, dispensed, or used on the
premises of any Adult-Use Cannabis manufacturing facility.
13. Physician services shall not be provided on the premises. "Physician
services" includes without limitation the evaluation of patients for the issuance of a
medical Cannabis recommendation or card. "Physician services"does not include social
88
Ordinance No.
Page 88
5. Each permittee of an Adult-Use Cannabis Business shall maintain an
inventory control and reporting system that accurately documents the present location,
amounts, and descriptions of all Cannabis and Cannabis Products for all stages of the
growing and production or manufacturing, laboratory testing and distribution processes
until purchase by or distribution to a qualified patient or Primary Caregiver.
6. Each Adult-Use Cannabis Business shall allow City of Palm Springs
officials to have access to the business's books, records, accounts, together with any
other data or documents relevant to its permitted Adult-Use Cannabis activities, for the
purpose of conducting an audit or examination. Books, records, accounts, and any and
all relevant data or documents will be produced no later than twenty-four (24) hours
after receipt of the City's request, unless otherwise stipulated by the City.
7. The permittee shall maintain clear and adequate records and
documentation demonstrating that all Cannabis or Cannabis Products have been
obtained from and are provided to other permitted and licensed Cannabis operations.
The City shall have the right to examine, monitor, and audit such records and
documentation,which shall be made available to the City upon request.
8. All Adult-Use Cannabis manufacturing facilities shall operate within a legal
structure that is compliant with all applicable State and local laws.
9. All Adult-Use Cannabis Businesses must pay all applicable sales taxes and
fees pursuant to all federal, State, and local laws and the owner and/or operator shall
not be delinquent in the payment of such taxes and fees.
10. On-site smoking, ingestion, or consumption of Cannabis or alcohol shall be
prohibited on the premises of all Adult-Use Cannabis manufacturing facilities. The term
"premises" as used in this Subsection includes the actual Adult-Use Cannabis
manufacturing building, as well as any accessory structures and parking areas. The
Adult-Use Cannabis manufacturing facility building entrance shall be clearly and legibly
posted with a notice indicating that smoking, ingesting, or consuming Cannabis or
alcohol on the premises or in the vicinity of the facility is prohibited.
11. Signage for aN-ao-y-Adult-Use Cannabis manufacturing-Business facility
and/or location facilities shall include beAhrAedAo-the name of the business-enty, and
shall be in compliance with the City's sign sedeordinance and any applicable Citv
design standards., ,
..ids Signage shall Fiat include � y dr g related c ..bGIc
12. Alcoholic beverages shall not be sold, stored, distributed, or consumed on
the premises. Adult-Use Cannabis manufacturing facilities shall not hold or maintain a
license from the State Department of Alcohol Beverage Control to sell alcoholic
beverages, or operate a business that sells alcoholic beverages. In addition, alcoholic
beverages shall not be provided, stored, kept, located, sold, dispensed, or used on the
premises of any Adult-Use Cannabis manufacturing facility.
13. Physician services shall not be provided on the premises. "Physician
services" includes without limitation the evaluation of patients for the issuance of a
medical Cannabis recommendation or card. "Physician services"does not include social
88