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HomeMy WebLinkAboutagenda updatesCity of San Bernardino Request for Council Action (SUPPLEMENTAL REPORT) Date: February 7, 2017 Staff Report To: Honorable Mayor and City Cou it Members From: Andrea M. Miller, City Mana By: Mark Persico, AICP, munity Development Director Subject: Draft Cannabis Regulations Recommendations Review and discuss draft cannabis regulations and provide direction to staff and the Planning Commission regarding cannabis business types, public consumption and use, indoor and outdoor personal cultivation, special events, and tax and fee revenue. Back: round On November 8, 2016, California voters approved Proposition 64, The Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA). Some of the provisions within this Act took effect immediately to include legalized possession, transport, purchase, use, and transfer of recreational marijuana for individuals 21 years of age or older, and adult possession. Additionally, on November 8, 2016, San Bernardino voters approved Measure O, which garnered 26,037 votes, or 55.12% of the total. The measure, which was the result of a citizens' petition, regulates marijuana businesses by establishing a regulatory permit process, and the measure establishes a registration system and requires the City to grant permits meeting the requirements of the measure. On June 27, 2017, Senate Bill 94 was signed into law by Governor Brown. SB 94 harmonizes pervious State laws with Proposition 64 into a single State licensing and regulatory framework. On October 18, 2017, the Mayor and City Council appointed members to the Citizen's Advisory Committee on marijuana (CAC) for the express purpose of having the Committee examine marijuana issues outside of Measure O. Measure O regulates all commercial cannabis activity until is in declared invalid. On December 20, 2017, the Mayor and City Council received the recommendations of the CAC, which met five consecutive weeks to craft regulations for personal cultivation, public consumption, special events, and revenue through taxes and fees. To allow sufficient time to consider the CAC's recommendations, and to allow adequate time to craft comprehensive regulations, the Mayor and City Council adopted a 45 -day interim ordinance (MC 1452) placing a moratorium on outdoor personal cultivation and special events. The Mayor and City Council also adopted a moratorium on commercial cannabis activities in the event Measure O is invalidated by the courts. On December 28, 2017, a court hearing was conducted regarding the validity of Measure O. The Court has issued a tentative decision invalidating Measure O in its entirety. As of the drafting of this report, a final written decision has not been issued by the Court. On January 22, 2018, the Mayor and City Council received staff reports from City staff and the City's consultant on cannabis regulations, HdL, and also took public comment on commercial cannabis regulations including license types, locational requirements, public health and safety concerns, personal cultivation, public consumption and special events. At that same meeting the Mayor and City Council opened a public hearing on whether to extend the moratorium. The public hearing was continued to February 1, 2018, to allow additional public comment. On February 1, 2018, at the conclusion of the continued public hearing, the Mayor and City Council voted unanimously to extend the moratorium an additional 10 months 15 days. The City Council gave clear direction to staff to develop regulations for commercial cannabis activity as expeditiously as possible. _Discussion Tocics There are currently three areas for Mayor and City Council consideration: Commercial Cannabis Activity, Personal Cultivation and Public Consumption. In all three areas there has been considerable input over the past many months from the general public, Citizens Advisory Committee, IE NORML (National Organization to Reform Marijuana Laws), UFCW (United Food and Commercial Workers) Local 1167 among others. The comments have been wide ranging and not all positions and interests are the same — there have been legitimate differences of opinion. Added to the local issues and concerns is State law, which must be followed. It is worth noting that the state Bureau of Cannabis Control is operating under emergency regulations and issuing temporary permits because adult use of cannabis became legal on January 1, 2018. Commercial Cannabis Activit, The cannabis regulations under consideration by the Mayor and City Council are an effort to balance all of the varied public input the policy direction from the Mayor and City Council along with State law to craft a regulatory scheme that protects public health, safety and welfare. This has not been a simple task. The draft ordinance establishes a commercial cannabis regulatory framework, to be titled "Commercial Cannabis Activity" as Chapter 10 of Title 5 (Business Registration and Regulations) of the Municipal Code. The ordinance addresses permit process fees and administrative enforcement fees, which will be set by Resolution prior to the effective date of the ordinance. Any taxes imposed on the sale or cultivation of commercial cannabis will require voter approval with the earliest opportunity at the general election in November 2018. The summary below outlines key policy issue areas and the points of divergence between the various groups. 1. Special/Temporary Events — section 5.10.060 (c ) The draft ordinance requires that temporary events held at a state designated fair shall be authorized pursuant to a Development Agreement. This is consistent with the CAC belief that the marijuana events previously held at the National Orange Show had a negative impact on the City of San Bernardino and its residents. They believed that strong oversight and enforcement by the City was critical. All other cannabis special events are prohibited under state and local law. 2. Total number of Commercial Cannabis —section 5.10.080 The draft Ordinance limits the maximum number of licenses 1 permit per 10,000 population, which would limit the current number of licenses to 21 for all types. This is similar to the ratio analysis used for tow operators and taxi companies. While the number of canibus licenses was not specifically part of the CAC purview, the Committee did discuss this topic in the context of the tax discussion. As part of that discussion the Committee looked at a range of licenses between 19 and 35. After discussion, the CAC suggested three (3) licenses per Ward. However, it should be noted that the Wards are created to balance population for voting purposes. The Wards also vary in many other ways such as land use mix, the size of parcels in the Ward, freeway access, and other physical attributes. During the many hours of public comment there was a wide range of total number discussed but there was no consensus from the various speakers. The overarching goal was safe and easy access to commercial cannabis balanced with protecting the public health, safety and welfare of the community. 3. Merit based point system for licenses — section 5.10.090 (a) The draft ordinance requires creating a point based, or merit based, system of evaluation upon which the City Manager shall make recommendations to the City Council. The ordinance requires adoption of a Mayor and City Council resolution containing objective criteria, one of which is consideration of geographic overconcentration. Proximity to transit is another important factor for consideration such that employees and customers have better access to jobs and services. UFCW has suggested a point based system and evaluation criteria including: exceeding minimum sensitive use buffers, filtration system that eliminates odors, distance to transit stops, security plans, regulatory compliance, protecting public health and safety, criminal history, sustainability and environmental protection, and community engagement among others. During general discussion at the CAC meetings members expressed concern that the licenses are distributed in the City, such that no Ward is overconcentrated. This, however, was not a specific part of the CAG responsibilities. Resolutions establishing criteria are being prepared and will be presented for Mayor and City Council consideration at a subsequent meeting. 4. Status of businesses operating without proper permits — section 5.10.100 (a) and 5.10.060 (a) The draft Ordinance prohibits a person from obtaining a license if they have previously been notified that they were conducting a non-compliant business, or if they are not in compliance with state and local laws. The ordinance takes this approach for several reasons. First, illegal operators have demonstrated disregard for state law and the City's ban on cannabis, except for the few businesses that have obtained valid permits under Measure O. Second., there have been significant negative effects to the community caused by the illegal operators such as fire arm violations, parole violations and even homicide. Finally, the community has expressed public safety concerns about many of the illegal businesses. UFCW takes a narrower view, suggesting only that management employees shall not have a conviction for a violent or serious felony under sections 667.5 and 1192.7 of the California Penal Code. They also suggest awarding points if the business agrees to hire employees without a conviction for a violent or serious felony. 5. Sensitive Use Buffers — section 5.10.250 (b) The draft ordinance requires a 600 foot separation between schools, commercial daycare and youth centers, and a 300 foot separation between residentially zoned property, as well as a 300 foot separation from any residential unit. Measure O only required a 600 foot separation from residentially zoned property. State law only specifies a distance from K-12 schools but not commercial daycare facilities or youth centers. The draft Ordinance does not specify a separation from libraries, parks or religious facilities. But the City Council may consider proximity to these sensitive uses in the evaluation and approval process. This issue was not within the purview of the CAC, however all parties seem to agree a sensitive use buffer is necessary and appropriate. Maps with a 300 ft residential buffer and 600 ft parks and school buffer will be presented at the City Council meeting for illustrative purposes. 6. Delivery of commercial cannabis — section 5.10.330 (b) The draft ordinance requires that any commercial cannabis business that delivers within the City of San Bernardino must also be licensed in the City. Attached is a copy of the draft Commercial Cannabis Activity ordinance as recommended by HdL and City staff (Attachment 1). Personal Cultivation in Residential Zones Cities may reasonably regulate, but not prohibit, indoor personal cultivation. Outdoor personal cultivation may be regulated or prohibited. The CAC made a series of recommendations on personal cultivation based largely on standards developed by the County of Los Angeles. Overall, the CAC believed that cannabis cultivation in a private residence should be regulated only to the extent necessary to protect public health, safety and welfare. The draft ordinance allows six indoor plants for each residential lot that is improved with a single family dwelling. The CAC draft allows outdoor cultivation for a single family residence, but outdoor cultivation is prohibited in a multi -family residence. The ordinance does not specify how the plants should be stored, grown or secured within the residence and there is no permit required. Staff suggests a few additions to the CAC ordinance as follows: 1. That property owner authorization is required for all rental property 2. That outdoor cultivation be prohibited 3. That sections 5.10.420, 5.10.430, 5.10.440,'5.10.450, and 5.10.460 be included in the Ordinance to assist with enforcement should it become necessary. These sections require compliance with state law, declare violations a public nuisance and each a separate offence, and outlines criminal penalties. 4. That indoor cultivation shall be done responsibly and in a secure location that protects minors. Attached is a copy of the draft ordinance recommended by the CAC (Attachment 2) Public Consum tion Cities may regulate public consumption of cannabis products by placing reasonable restrictions that protect the public health, safety and welfare. The CAC made a series of recommendations on public consumption largely based upon the HdL recommendations. The one key difference is that the CAC believes that public smoking is the primary concern; not public consumption. The CAC believes it is not reasonable to stop individuals and test the product being consumed; therefore, regulating public consumption is difficult. The CAC believes there are laws that prohibit impaired driving which are more effective at addressing the issue. Staff suggests that sections 5.10.420, 5.10.430, 5.10.440, 5.10.450, and 5.10.460 be included in the public consumption ordinance to assist with enforcement should it become necessary. These sections require compliance with state law, declare violations a public nuisance and each a separate offence, and outlines criminal penalties. Attached is a copy of the draft ordinance recommended by the CAC (Attachment 3). Next Steps Following the February 7"' meeting, the Planning Commission is scheduled to conduct a noticed public hearing on a Development Code Amendment on February 13,. 2018. This public hearing necessitated the Planning Commission conduct a special meeting on February 20, 2018, to hear their regular agenda items. A public hearing notice is also being published such that the Mayor and City Council can consider adopting a regulatory ordinance on February 20, 2018. The second reading of the ordinance will be scheduled for March 7, 2018, and the ordinance will become effective on the 31 sc day following second reading. Staff is developing a fee resolution and a merit based point system as required under section 5.10.5.10.090. The consultant and staff are also developing application forms and submittal requirements as required. This work will be completed before the Commercial Cannabis ordinance becomes effective. Conclusion The public health, safety and welfare issues surrounding this topic are complex and many individuals have strong opinions about cannabis and its cultivation, sale, distribution and consumption. While adult use of cannabis became legal on January 1, 2018, the state of California still has not fully developed its rules and permitting process: the Bureau of Cannabis Control is operating under emergency regulations and is issuing permits on a temporary basis only. It is recommended that the Mayor and City Council take public comment and provide direction to City staff and the Planning Commission regarding cannabis regulations. Attachments Attachment 1 Commercial Cannabis Activity Ordinance Attachment 2 Personal Cultivation Ordinance Attachment 3 Cannabis Consumption and Smoking in Public Areas Ward(s): All Synopsis of Previous Council Actions: 2 31 4 5 6 7 8. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 ORDINANCE NO. ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADOPTING CHAPTER 5.10 OF THE SAN BERNARDINO MUNICIPAL CODE RELATED TO REGULATION OF COMMERCIAL CANNABIS ACTIVITIES WHEREAS, the City of San Bernardino, .California ("City') is a municipal corporation, duly organized under the Charter of the City, ,of San Bernardino and the constitution and laws of the State of California; and, 4 WHEREAS, at the General Election held on Noveinber.,5, 1996, California voters approved Proposition 215, commonly known as the "Compassianke Use Act of 1996" ("CUA") with the purpose of allowing medical -patients to cultivate and `use cannabis without fear of State prosecution; and, WHEREAS, on January 1, 2 , SenoiD Bill 420 (codified as Health and Safety Code N. Sections 11362.7, et -&eq., entitled the 'real. _Marijuana Program Act" ("MMPA") went into effect and was enacted to clarify the sod) a of the CUA i6d to allow cities and counties to adopt and .fforce regulations consistent with th'e.CUA and MMPA; and, e VVHEREAS', :on October 9, 2015, Qovernor Brown approved a series of bills commonly 'known as the,,,"Medical Cannabis Regulation and Safety Act" ("MCRSA') establishing a `comprehensi ' State licensing and regulatory framework for the cultivation, manufacture, transportafiion, sti#age, distribution, and sale of medical cannabis; and which 23 recognizes the authority"of local jurisdictions to either impose additional restrictions or 241. prohibit certain activities related to the cultivation, manufacture, transportation, storage, 25 distribution, delivery, and sale of medical cannabis; and, 26! WHEREAS, at the General Election held on November 8, 2016, California voters 27� 28 approved Proposition 64, commonly known as the "Control, Regulate and Tax Adult Use of Public Review Draft — Page I i z 3 4 5 6 71 8 9 10', 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Marijuana Act" ("AUMA"), establishing a comprehensive State licensing and regulatory I framework for the cultivation, manufacture, transportation, storage, distribution, and sale of recreational cannabis, and which recognizes the authority of local jurisdictions to either impose additional restrictions or prohibit certain activities related to the cultivation, manufacture, transportation, storage, distribution, delivery, and sale of recreational cannabis; WHEREAS, on June 27, 2017, Governor Brown approved Senate Bill 94, commonly known as the Medicinal and Adult -Use Cannabis Regulation and Safety Act ("MAUCRSA") harmonizing MCRSA and AUMA into a single .comprehensive State licensing and regulatory framework for both medical and recreational cannabis activities; and WHEREAS, at the General Election held on November 8, 2016, San Bernardino voters approved Measure O with 26,037 votes and 55:12% approval, and defeated competing Measures N and P, with the intent on establishing a comprehensive local licensing and regulatory framework for the cultivation, manufacture, transportation, storage, distribution, and sale of medical and recreational cannabis in the City of San Bernardino; and WHEREAS, the City Council anticipates that Measure O will be adjudicated unconstitutionally invalid by the Superior Court for the State of California in the following cases: Kush Concepts, et al., v. City of San Bernardino, Superior Court Case No. CIVDS 1702131; Quiang Ye, et al., v. City gf'San Bernardino, et al., Superior Court Case No. CIVDS 1704276; Karmel Roe v City of San Bernardino, et al., Superior Court Case No. CLADS 1712424; and, WHEREAS, on December 20, 2017, the City Council, anticipating Measure O being invalidated, and seeking to protect the City's authority to regulate commercial medical and recreational cannabis activities, adopted Ordinance No. MC -1452, establishing a moratorium prohibiting all land use entitlements, building permits, business licenses and any other Public Review Draft — Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 applicable approval or decisions for unregulated commercial marijuana activities that would I take effect upon Measure O's invalidation; and, WHEREAS, on January 22, 2018, the City Council opened a duly noticed public hearing on an extension of the moratorium; and, WHEREAS, on January 22, 2018, the City Council continued the public hearing to February 1, 2018 to have additional time for public comment;Rand WHEREAS, on February 1, 2018, the City by a vote of 7-0 voted to extend the moratorium 10 months and 15 days to December 18, 2018; -bLu�;' WHEREAS, on February 1, 2018, the City Council ` c e'eted City staff to expeditiously prepare regulations for commercial cannabis activities withip.the City of San Bernardino; and WHEREAS, commercial cane #bis bitme''sses that have operated unpermitted within t R the City and elsewhere have caused signifcant`publ c,• Efety problems, including but not limited to: burglaries -and takeover robberies %of=pannabis businesses, robberies of customers leaving_abis Businesses, increases in crime ('especially theft and robberies) in the vicinity e . of cannabis businesses,,.pffensive. odors, illegal re -selling of cannabis obtained from cannabis businesses, -.physicians issuing apparently fraudulent recommendations for the use of cannabis, cannabis busind§ s, staff selling cannabis to customers with obviously counterfeit patient identification cards, street dealers attempting to sell cannabis to cannabis businesses customers, cannabis businesses customers using cannabis and then driving under the influence of cannabis, the sale of illegal drugs other than cannabis in the cannabis businesses, sales of cannabis to minors, illegal firearms possessed by felons within cannabis businesses, health and safety violations within cannabis businesses related to the City's Fire and Building Codes; and, Public Review Draft — Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 151 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, there is a need to adopt health, safety and welfare regulations to avoid adverse impacts on the City's residents and businesses that may arise from commercial cannabis activities; and WHEREAS, an effective regulatory system governing commercial cannabis activities I in the City of San Bernardino, as provided in this Ordinance, will address potential adverse 1 impacts to the public health, welfare, and safety, thereby allowing commercial cannabis activities in a manner consistent with State law; and WHEREAS, the Mayor and City Council desire to promote a successful business environment in the City for commercial cannabis businesses and their neighboring non - j cannabis businesses; and WHEREAS, the Mayor and City Council desire to ensure workers for commercial I cannabis businesses are treated and paid fairly; and WHEREAS, the Mayor and City Council desire to protect the environment within the City by promoting beneficial uses of water and protecting clean air; and WHEREAS, the reliability of the electricity system within the City is stressed during peak usage times, especially during the summer months, impacting the health, safety, and welfare of the residents that may not have adequate access to cooling; and WHEREAS, commercial cannabis activities, especially cultivation, require significant amounts of water and electricity, and have the potential to negatively affect air quality; and WHEREAS, local regulation on commercial cannabis activity requires the balancing of numerous competing interests, including: the interests of the industry in have a favorable business and investment environment; the interests of business and property owners in protecting their property values; the interests of the residents in neighborhoods with high quality of life; the interests of workers in their working conditions; the interests of patients in Public Review Draft — Page 4 z 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 04 23 24 25 26 27 28 access to cannabis for medical reasons; the interests in protecting vulnerable populations such as seniors; the interest in protecting the environment and scarce resources and the interests in law enforcement in protecting the public safety of our City; and WHEREAS, the Mayor and City Council, through committees, workshops, and public hearings have attempted to consider and weigh these competing interests to develop an Ordinance that best serves the public interest; and WHEREAS, the City will need to consider adoption of necessary fees to raise sufficient revenue to enforce the provisions of this drdinance; and WHEREAS, on , the City Council directed that this Ordinance be submitted to the Planning Commisq op in oonfdrmity with the San Bernardino Municipal Code and State law; and WHEREAS, the Planning Division df .the Commu"nity.Development Department of he City of San Bernardino bas "reviewed this Ordinance;for consistency with the City of San Bernardino General Plan -and co�pliance with.the San Bernardino Municipal Code; and, WHEREAS, on , pursuant to the requirements of the San Bernardino Municipal Code, thiigi.ty gave public'noticeby advertising in the San Bernardino iun, a newspaper of general circulation within the City of San Bernardino of the holding of a aublic hearing at which this Ordinance would be considered by the Planning Commission; and WHEREAS, on pursuant to the requirements of the San 3emardino Municipal Code, the Planning Commission held the duly noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to this hdinance; and Public Review Draft — Page 5 1 2 3 4 5 6 7 8 9 10 11 121 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, pursuant to the San Bernardino Municipal Code, the Planning Commission has the authority to recommend to the City Council the approx,al of the ! Ordinance; and WHEREAS, on __ _ _ _ __ , by a vote of , the Planning Commission recommends approval of the Ordinance and made the findings contained in Resolution No. , attached hereto and incorporated herein by this reference as through set forth in full; and WHEREAS, federal law, codified at 21 U.S.C. Sections 801 et seq., entitled the "Controlled Substances Act" {"CSA") makes it unlawful to manufacture, distribute, or possess any controlled substances, including cannabis, which has, as a Schedule I drug under the CSA, been determined by the federal government to have a high potential for abuse and no accepted medical value in treatment; and WHEREAS, nothing in this Ordinance is intended to authorize the possession, use, or provision of cannabis for purposes that violate federal law. NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. INCORPORATION OF RECITALS The foregoing recitals set forth above are true and correct and are a substantive part of this Ordinance. SECTION 2. AUTHORITY Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the Charter of the City of San Bernardino, and State law, the City of San Bernardino is authorized to adopt ordinances that protect the health, safety and welfare of its residents and businesses. The adoption of zoning regulations is a permissible exercise of this authority. Public Review Draft — Page 6 i 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 3. ADOPTION OF ORDINANCE Chapter 10, entitled "Commercial Cannabis Activities", of Title 5 "Business Registration and Regulations" of the San Bernardino Municipal Code is approved and shall be added to the San Bernardino Municipal Code as follows: Chapter 5.10 COMMERCIAL CANNABIS ACTIVITY 5.10.010 Purpose and Intent It is the purpose and intent of this Chapter to implement*.pirovisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act ("MAICA"} to accommodate the needs of medically -ill persons and provide access to cannabis for.-medWhal purposes as recommended by their health care provider(s), and to provide access to adult itge for persons over the age of 21 as authorized by the Control, Tax & Regulate, the Adult Use `Car bis Act ("AUMA" or "Proposition 64" passed by California voters in 2016), while imposing, sensible regulations on the use of land to protect the City's residents, neighborhoods, `and ,businesses from disproportionate and potentially deleterious negative impacts. As such, it the purpose and intent of this Chapter to regulate' fide cultivation, processing, manufacturiing, testing, sale, delivery, distribution and transportation of. medicinal and adult -use cannabis and cannabis products in a responsible manner to protect Pie. be" safety; and welfare of the residents of the City of San Bernardino and to enforce.rules 4pd-regulations consistent with State law. It is the further purpose and intent of this Clialiter to i0q iib all commercial cannabis operators to obtain and renew, annually, a permit to operate widdh'"the, pity of San Bernardino. Nothing in this Chapter is intended to authorize the �pbs4ession, use, or provision of cannabis for purposes, or in any manner, that -violates state of federal law. The provisions of this Chapter are in addition to any other permits, licenses and approvals which may be required to conduct business in the City, and are in addition to any permits, licenses and approval required under State, City, or other law. ` 5.10.020 Legal Authority Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of MAUCRSA, any subsequent State legislation and/or regulations regarding same, the City of San Bernardino is authorized to adopt ordinances that establish standards, requirements and regulations for the licensing and permitting of commercial medicinal and adult -use cannabis activity. Any standards, requirements, and regulations regarding health and safety, security, reporting 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 San Bernardino to all commercial cannabis activity. 5.10.030 Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter. Except as specifically authorized in this Chapter, the commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution or transportation Public Review Draft — Page 7 I 2 3 (other than as provided under Section 26090(e) of the Business and Professions Code), of cannabis or cannabis product is expressly prohibited in the City of San Bernardino. 5.10.040 Compliance with Laws 4 Nothing in this Chapter shall be construed as authorizing any actions that violate federal, State or local law with respect to the operation of a commercial cannabis business. It shall be the 5 responsibility of the owners, the operators, and the employees of the commercial cannabis business to ensure that the commercial cannabis business is, at all times, operating in a 6.1 manner compliant with all applicable federal, State and local laws, including for as long as applicable, the Compassionate Use Act ("Prop. 215"), the Medical Marijuana Program Act 7 ("MMPA") and the 2008 Attorney General Guidelines for the Security and Non -Diversion of 8 Cannabis for Medical Purposes ("AG Guidelines") (collectively "the Medical Cannabis Collective Laws"), any subsequently enacted State law or regulatory, licensing, or 9 certification requirements, and any specific, additional operating procedures or requirements 10 which may be imposed as conditions of approval of the commercial cannabis business permit. 11 12 16 17 18. 19 20 21 22 23 24 25 26 27 28 5.10.050 Definitions When used in this Chapter, the following words shall have the meanings ascribed to them as set forth herein. 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. (a) "A -license" means a state license issued under this division for cannabis or cannabis products that areintended for adults 21 years of age and over and who do not possess physician's recommendations. (b) "A -licensee" means any person holding a license under this division for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician's recommendations. (c) "Applicant" means a person applying for a permit pursuant to this Chapter. (d) "Batch" means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types: (1) "Harvest batch" means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time. (2) "Manufactured cannabis batch" means either of the following: (A) An amount of cannabis concentrates or extract that is produced in one production cycle using the same extraction methods and standard operating procedures. (B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures. (e) `Bureau" means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation. Public Review Draft — Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (f) "Cannabis" means all parts of the 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 I resin, whether crude or purified, obtained from cannabis. "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 division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code. (g) "Cannabis accessories" has the same meaning as in Sectiba 11018.2 of the Health and Safety Code. (h) "Cannabis Business Park" a park or campus tb* s one•• contiguous commercial area of land which has many cannabis related businesses grfoupod iogether. Each individual business would be clearly defined, have a unique entrance and immovable- physical barriers between uniquely licensed premises. (i) "Cannabis concentrate" means cannabis That has undergone a proee*s•to concentrate one or more active cannabinoids, thereby increasing the product's potencyAtesin from granular trichomes from a cannabis plant is a concentrate for purposes of this div'is'ion. A cannabis concentrate is not considered food, 'hs ;defined by Section 109935 of the Health and Safety Code, or drug, as defined by Section 1.09925 of the Health- and Safety Code. (j) "Cannabis product" means a product -containing cannabis, including, but not limited to, manufactured cannabis, - intended to, be old for... use by ,cannabis patients in California pursuant to the Compassionate Use Acf pf ,1996 (Proposition 215), found at Section 11362.5 of the California Health and -Safety Code '(ag the-sanie maybe,amended from time -to -time) or pursuant to the Adult Use of Cannabis Act.'for purposes of -this Chapter, "cannabis" does not include industrial hemp as defined by Sectioh. 81000 of the California Food and Agricultural Code or Section 11018.5 .of the.. California Heal 4 and Safety Code. (1) "Canopy" means. the designated arEa(s) at a \icensed premise, except nurseries that will contain mature plants at any point in time. (1) Canopy shall be calculated in square feet and measured using clearly --identifiable boundaries of all areas(s) that will contain mature plants at any p*.In time, including all of -she space(s) within the boundaries; (2) Canopy may be noncontiguous but each unique,area included in the total canopy calculation shall be separated by an identifiable boundary ,which includes, but is not limited to: interior walls, shelves, greenhouse wall's, hoop house walls, garden benches, hedgerows, fencing, garden beds or garden plots; and if,mature plants are being cultivated using a shelving system, the surface area of each level shall.be included in the total canopy calculation. (m) "Caregiver" or "primary caregiver" has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code. (n) "Child resistant" means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly (o) "City" means the City of San Bernardino, a California Charter City. (p) "Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in this division. Public Review Draft — Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (q) "Commercial cannabis business" means any business or operation which engages in medicinal or adult -use commercial cannabis activity. (r) "Commercial cannabis business permit" means a regulatory permit issued by the City of San Bernardino pursuant to this Chapter to a commercial cannabis business, and is required before any commercial cannabis activity may be conducted in the City. The initial permit and annual renewal of a commercial 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 commercial cannabis activity at issue. (s) "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. (t) "Cultivation site" means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs. (u) "Customer" means a natural person 21 year of age or over or a natural person 18 year of age or older who possesses a physician's recommendation. (v) "Day care center" has the same meaning as in Section 1596.76 of the Health and Safety Code. (w) "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. (x) "Director" means the Director of Community Development. (y) "Dispensing" means any activity involving the retail sale of cannabis or cannabis products from a retailer. (z) "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between licensees. (aa) "Distributor" means a person holding a valid commercial cannabis business permit for distribution issuedby the City of San Bernardino, and, a valid state license for distribution, required by state law to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis products from a licensed manufacturer, for sale to a licensed retailer. (ab) "Dried flower" means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems. (ac) "Edible cannabis product" means cannabis product 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 Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code. (ad) "Fund" means the Cannabis Control Fund established pursuant to Section 26210.15 (ae) "Greenhouse" means a fully enclosed permanent structure that is clad in transparent material with climate control, such as heating and ventilation capabilities and supplemental artificial lighting, and that uses a combination of natural and supplemental lighting for cultivation. (af) "Kind" means applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation. Public Review Draft — Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20' 21 22 23 24 25 26 27 28 (ag) "Labeling" means any label or other written, printed, or graphic matter upon a cannabis product, upon its container. (ai) "License" means a state license, and includes both an A -license and an M -license, as well as a testing laboratory license. (ai) "Licensee" means any person holding a license under state law, regardless of whether the license held is an A -license or an M -license, and includes the holder of a testing laboratory license. (ak) "Licensing authority" means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee. (al) "Limited -access area" means an area in which cannabis is stored or held and is only accessible to a licensee and authorized personnel. (am) "Live plants" means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants. (ao) "Lot" means a batch or a specifically identified portion of a batch. (ap) "M -license" means a state license issued for commercial cannabis activity involving medicinal cannabis. (aq) "M -licensee" means any person holding'. -. license for commercial cannabis activity involving medicinal cannabis.a. ; (ar) "Manufacture" means to compound, blend, extract; fnf4se, or otherwise make or prepare a cannabis product. (as) "Manufactured cannabis" means raw cannabis that hm undergone a process whereby the raw agricultural product has been transformed into a ic�n�e trate, extraction or other manufactured product,intended for internal consumption through inhalation or oral ingestion or for topical application: (at) "Manufactuureer5' means a li,'cqisee that conducts the production, preparation, propagation, or compounding of canrrhbis or cannabis products either directly or indirectly or by extraction methods, or independently by' means of chemical synthesis, or by a combination of extraction and chemical synt csis at a -%ted location that packages or repackages cannabis or cannabis products or labels or•coii a er. (au) "Manufacturing site" means -a location that -produces, prepares, propagates, or compounds cannabis of cannabis products, direr# y or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a person issued a valid commercial cannabis business permit for manufacturing from the City of San Bernardino and, a valid state license as required for manufacturing of cannabis products. (ay) "Medicinal cannabis" or "medicinal cannabis product" means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician's recommendation. (aw) "Nonvolatile solvent" means any solvent used in the extraction process that is not a volatile solvent. For purposes of this division, a nonvolatile solvent includes carbon dioxide (CO2) used for extraction and ethanol used for extraction or post -extraction processing. (ax) "Nursery" means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically, for the propagation and cultivation of cannabis. (ay) "Operation" means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products. Public Review Draft — Page 11 1 2 3, 4 5 6 7 S 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (az) "Owner" means any of the following: (1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. (2) The Executive Director of a nonprofit or other entity. (3) A member of the board of directors of a nonprofit. (4) An individual who will be participating in the direction, control, or management of the person applying for a license or who has a financial interest in the business other than a fixed lease of real property (ba) "Package" means any container or receptacle used for holding cannabis or cannabis products. (bb) "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. (be) "Person" includes any 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 the plural as well as the singular. (bd) "Person with an identification card" shall have the meaning given that term by California Health and Safety Code Section 11362.7. (be) "Physician's recommendation" means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code. (bf) "Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee unless the operator is granted a M -License and a A -License for the same type of activity and such operation is lawful under state and local laws, rules and regulations. (bg) "Purchaser" means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products. (bh) "Retailer" means a commercial cannabis business facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment (whether fixed or mobile) that delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail sale, and where the operator holds a valid commercial cannabis business permit from the City of San Bernardino authorizing the operation of a retailer, and a valid state license as required by state law to operate a retailer. (bi) "Sell," "sale," and "to sell" include any transaction whereby, for any consideration, title to cannabis or cannabis products are transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return by the original purchaser to the location where the product was purchased. (bj) "State License" means a permit or license issued by the State of California, or one of its departments or divisions, under MAUCRSA and any subsequent State of California legislation regarding the same to engage in commercial cannabis activity. (bk) "Testing laboratory" means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following: Public Review Draft—Page 12 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 201 21 22 23 24 25 26 27 28 (1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; and (2) Permitted by the City. (bl) "Topical cannabis" means a product intended for external application and/or absorption through the skin. A topical cannabis product is not considered a drug as defined by Section 109925 of the California Health and Safety Code. (bm) "Transport" means the transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity authorized by MAUCRSA which may be amended or repealed by any subsequent State of California legislation regarding the same. (bn) "Unique identifier" means an alphanumeric code or d6si 11 ation used for reference to a specific plant on a licensed premises and any cannabis or�anriabis product derived or manufactured from that plant. (bo) "Youth center" has the same meaning as in Section 11.353.1 of the Health and Safety Code. ` (bp) "Volatile solvent" means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities; will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane; and propane. (bq) "Employee" means any natural person who is employed or retained .as an independent contractor by any permitee in consideration for direct of indirect monetary wages or profit, or any natural person who volunteers his or her. services for an employer. 5.10.060 Commercial Cannabis Business Permit Required to Engage in Commercial Cannabis -Business (a) No person rmay, engage,A4`any commercial cannabis business or in any commercial cannabis activity wit. in the City' of San Bernardino including cultivation, manufacture, processing, laboratory testing, trWPForting, dispensing, special events, distribution, or sale of cannabis or a cannabis prodluctiwless the person (l) has a valid commercial cannabis business permit from the City of San- Bernardino; -(2) has a valid State Seller's Permit; and (3) is currently in compliance with all-i4pplicable state and local laws and regulations pertaining to the commercial cannabis business`and-the commercial cannabis activities, including the duty to obtain a City business registration certificate and any required state licenses. Engaging in a commercial cannabis business or in any commercial cannabis activity includes establishing, owning, managing, conducting, leasing to, operating, causing, permitting, aiding, abetting, suffering or concealing the fact of such an act. (b) Until Health & Safety Code Section 11362.775, subdivision (a), is repealed, the City intends that person's eligible to operate collectives or cooperatives under that subdivision shall be eligible to apply for a City conditional permit to conduct commercial cannabis activities, but only to the degree those activities are authorized under state law for collectives and cooperatives. When the Health & Safety Code Section 11362.775, subdivision (a), is repealed, or as soon as collectives and cooperatives are no longer permitted to engage in commercial cannabis activity without a state license under state law, any conditional permit issued to a commercial cannabis business that has not obtained a state license for the commercial cannabis activities shall expire and shall be null and void. Such businesses shall no longer be authorized to engage in any commercial cannabis activities in the City until they Public Review Draft — Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 21 28 obtain both a City issued commercial cannabis business permit and a state license for that commercial cannabis activity. (c) No temporary events shall be permitted at a state designated fair, as that term is defined in Business and Professions Code Section 19418, subdivision (a), unless the state designated fair has complied with the requirements of subsection (a) above and the temporary event is authorized pursuant to a Development Agreement with the City of San Bernardino approved in accordance with Chapter 19.40 of this Code. Temporary events are prohibited Citywide except at a state designated fair. 5.10.070 Cannabis Employee Permit Required (a) Any person who is an employee or who otherwise works or volunteers within a commercial cannabis business must be legally authorized to do so under applicable state law. (b) Any person who is an employee or who otherwise works or volunteers within a commercial cannabis business must obtain a commercial cannabis employee work permit from the City prior to performing any work at any commercial cannabis business. (c) Applications for a commercial cannabis employee work permit shall be developed, made available, and processed by the Chief of Police or his/her designee, and shall include, but not be limited to, the following information: (1) Name, address, and phone number of the applicant; (2) Age and verification of applicant. A copy of a birth certificate, driver's license, government issued identification card, passport or other proof that the applicant is at least ' twenty-one (21) years of age must be submitted with the application; (3) Name, address of the commercial cannabis business(es) where the person will be employed, and the name of the primary manager of that business; (4) A list of any crimes enumerated in California Business and Professions Code Section 26507(b)(4) for which the applicant has been convicted; (5) Name, address, and contact person for all previous employers for the last ten (10) years, including, but not limited to, all employers from which the applicant was fired, resigned, or asked to leave and the reasons for such dismissal or firing; (6) The application shall be accompanied by fingerprints and a recent photograph of the applicant in a form and manner as required by the City Manager or his/her designee(s). (7) A signed statement under penalty of perjury that the information provided is true and correct. Pubhc Review Draft — Page 14 1 2 3 4 51 (8) If applicable, verification that the applicant is a qualified patient or primary caregiver. (9) A fee paid in an amount set by resolution of the City Council in an amount necessary to cover the costs of administering the employee work permit programs. The fee is non-refundable and shall not be returned in the event the work permit is denied or revoked. 6 , , (d) The Chief of Police or his/her designee shall review the application for completeness, and shall conduct a background check to determine whthi~rr the applicant was either convicted of a crime or left a previous employer for reaso6 that show the applicant: � 8 (1) Is dishonest; or 9 (2) Has committed a felony -or misdemeanor , involving fraud, deceit, 10 embezzlement; or 12� 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (3) Was convicted of a violent felony, -a crime. df moral turpitude; dr. (4) The illegal use, possesidn,� transportation, distribution or similar activities related to controlled, 'su%st<ances, as defined in the Federal Controlled Substances Act, except-fidx cannabis related offenses for which the conviction occurred after the passag`e:Qf.the Cainpassionate Use Act of 1996. Discovery of facts showing that.the applicant is dishonest, including facts demonstrating that the applicant provided false or incomplete intbnnation on the application, or that the applicant has been convicted of those types of crimes listed above are grounds for denial of the permit. Where the applic is sentence (including any tem*of probation, incarceration, or supervised release): fgr po i&sidn' of, possession for sale, sale,1hanufacture, transportation, or cultivation of a -eAritrolled subs'".' O,is completed, such underlying conviction shall not be the sole ground fgr denial of a c6himercial cannabis work permit. Furthermore, an applicant shall not be denied`hpermit if the de* is based solely on any of the following (i) a conviction for any crime listed 1n.�subsection (d),(4) above for which the applicant has obtained a certificate of rehabilitation pur�t to Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the California Pc4al -Code'or (ii) a conviction that was subsequently dismissed pursuant to Sections 1203.4, 1263:4a; 6r' 1.203.41 of the California Penal Code or any other provision of state law allowing for dismissal of a conviction. (e) The Chief of Police or his/her designee shall issue the commercial cannabis work permit or a written denial to the applicant within thirty (30) days of the date the application was deemed complete. In the event the cannabis work permit can't be issued within this time period then the Chief of Police or his/her designee(s) may issue a temporary work permit for an employee upon completing a preliminary background check and if the business can demonstrate to the Chief of Police or his/her designee that the employee is necessary for the operation of the business. The temporary permit may be immediately revoked by the Chief of Public Review Draft — Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 21 28 Police or his/her designee upon determination that the applicant has failed the background check or upon the issuance of the permanent work permit. (f) A work permit shall be valid for a twelve (12) month period and must be renewed on an annual basis. Renewal applications shall contain all the information required in subsection (b) above including the payment of a renewal application fee in an amount to be set by resolution of the City Council. (g) In the event a person changes employment from one commercial cannabis business in the City to another, the work permit holder shall notify the Chief of Police or his/her designee in writing of the change within ten (10) days, or the work permit shall be suspended or revoked, and such person shall not be permitted to work at any commercial cannabis business in the City. (h) The City may immediately revoke the commercial cannabis work permit should the permit holder be convicted of a crime listed in subsection (c) and (d) above or if facts become known to the Chief of Police or his/her designee that the permit holder has engaged in activities showing that he or she is dishonest. (i) The City Manager or his/her designee is hereby authorized to promulgate all regulations necessary to implement the work permit process and requirements. 0) The applicant may appeal the denial or revocation of a commercial cannabis work permit by filing a notice of appeal with the City Clerk within ten (10) days of the date the applicant received the notice of denial, which appeal shall be conducted as set forth in Section 5.10.150 of this Chapter. (k) The Chief of Police or his/her designee shall issue a permit in the form of a personal identification card that shall be worn by the employee in a prominent and visible location. The identification card shall be maintained in good and readable condition at all times. 5.10.080 Maximum Number and Type of Authorized Commercial Cannabis Businesses Permitted The number of each type of commercial cannabis business that shall be permitted to operate in the City shall be established by resolution of the City Council but at no time shall the total number of permits for all license types exceed one (1) permit per ten thousand (10,000) population as determined by the most recent Population Estimates for Cities, Counties and the State Report generated by the State Department of Finance for the most recent year. (a) Section 5.10.080 is only intended to create a maximum number of commercial cannabis businesses that may be issued permits to operate in the City under each category. Nothing in this Chapter creates a mandate that the City Council must issue any or all of the commercial cannabis business permits if it is determined that the applicants do not meet the standards which are established in the application requirements or further amendments to the application process or that the City Council upon further deliberation determines that the Public Review Dmft — Page 16 11 2 3 4 5 61 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 issuance of any or all commercial cannabis business permits will impact the public safety, welfare or other policy concerns which may be detrimental in the issuance of these permits. (b) Each year following the City Council's initial award of permits, if any, or at any time in the City Council's discretion, the City Council may reassess the number of commercial cannabis business permits which are authorized for issuance. The City Council, in its discretion, may determine by resolution that the number of commercial cannabis permits should stay the same, or be expanded. 1 5.10.090 Initial Application Procedure (a) The City Council shall adopt by resolution the procedures to govern the application process, and the manner in which the decision will ultiinately be made regarding the issuance of any commercial cannabis business permit(s), whieh resolution shall include or require the City Manager to provide detailed objective review criteria to be evaluated on a point system or equivalent quantitative evaluation scale, lied.. -to each set of review criteria ("Review Criteria'), which shall include consideratl n of geographic distribution, and require any applicable environmental review pursuant WAY N)ision 13 �pommencing with Section 21000) of the Public Resources Code as contemplated, by, Business -and Professions Code Section 26055, subdivision (h). The resolution shall authorize the City Manager or his/her designee(s) to prepare the necessary forms, adopt any necessary hdes to the application, regulations and processes, solicit applications, conduct initial evaluations.q.-Nhe applicants, and to ultimately provide a final recommendation to the City Council. �. (b) At the time • of filing, each applicant shall pay an application fee established by resolution of the 6 Council;. to, cover Q costs incurred by the City in the application process. (c) After the initial review, _ ranking; and scpring under the Review Criteria, the City Manager or his/her designee(s) will make a recbmmendation to the City Council, and the City Council shall make a final determination in accordance with Chapter 5.10.180. (d) THE CITY'S RESERVATIOX.OF RIGHTS: The City reserves the right to reject any or all applications. Prior to permit issuance, the City may also modify, postpone, or cancel any request for applications, or the entire program under this title, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California state law. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to any other justification provided a failure to comply with other requirements in this Chapter, an application RISKS BEING REJECTED for any of the following reasons: (1) Application was received after designated time and date. Public Review Draft—Page 17 1 2 3 4 5 6 7' 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (2) Application did not contain the required elements, exhibits, nor organized in the required format. (3) Application was not considered fully responsive to this request for permit application. 5.10.100 Personnel Prohibited from Holding a License or Employee Work Permit (a) Any person which includes but not limited any 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 the plural as well as the singular in which any of the following actions or notices have been issued in non- compliance shall be prohibited from holding a cannabis commercial License or employee work permit in the City of San Bernardino. (1) The applicant has been denied a license or has had a license suspended or revoked by any city, county, city and county or any other state cannabis licensing authority; (2) The applicant was notified that they were conducting commercial cannabis activity in non-compliance with Chapter 19 or other City of San Bernardino ordinances, codes and requirements in which they failed to discontinue operating in a timely manner; (3) Evidence that the applicant was in non-compliance of properly paying federal, state or local taxes and/or fees when notified by the appropriate agencies; (4) Applicant, or the owner of the property upon which the proposed commercial cannabis activity is to occur, have conducted commercial cannabis activity in the City of San Bernardino in violation of local and state law or failed to report income from such activities to the federal, state, or local government in violation of federal, state, or local law. 5.1.0.110 Expiration of Commercial Cannabis Business Permits Each commercial cannabis business permit issued pursuant to this Chapter shall expire twelve (12) months after the date of its issuance. Commercial cannabis permits may be renewed as provided in this Chapter. 5.10.120 Revocation of Permits Commercial cannabis business permits may be revoked for any violation of any law and/or any rule, regulation and/or standard adopted pursuant to this Chapter. Public Review Draft — Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.130 Renewal Applications (a) An application for renewal of a commercial cannabis business permit shall be filed at least sixty (60) calendar days prior to the expiration date of the current permit. (b) The renewal application shall contain all the information required for new applications. (c) The applicant shall pay a fee in an amount to be set by resolution of the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under'this. Chapter. (d) An application for renewal of a commercial cannabis business permit shall be rejected if any of the following exists: (1) The application for renewal,Is Ji1ed less than sixty (60) days before the expiration of the commercial#nkiabis business permit, (2) The commercial cannabis business,permiO suspended or revoked at the time of the application. x (3) The commercial cannabis business hasnot been in regular and continuous operation in the four (4) .months prior to the ibriewal application. (4) The e6mr ierci$1 cannabis business "has failed to ciiform to the requirements of this ,Q4apter, or of any regulations adopted pursuant to this Chapter. (5) The permittm fails or unable to renew its State of California license. (6) If the City or'&ate, has determined, based on substantial evidence, that the permittee or applibot is in violation of the requirements of this Chapter, of the San Bernardino Municipal Code, or of the state rules and regulations, and the City or state has determitied that the violation is grounds for termination or revocation of the commercial cannabis business permit. (e) The Community Development Director or his/her designee(s) is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the Community Development Director or his/her designee(s) is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety or welfare. Appeals from the decision of the Community Development Director or his/her designee(s) shall be handled pursuant to Chapter 5.10.150. (f) If a renewal application is rejected, a person may file a new application pursuant to this Chapter no sooner than one (1) year from the date of the rejection. Public Review Draft — Page 19 1. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.140 Effect of State License Suspension, Revocation, or Termination Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a commercial cannabis business to operate within the City, until the State of California, or its respective department or division, reinstates or reissues the State license. Should the State of California, or any of its departments or divisions, revoke or terminate the license of a commercial cannabis business, such revocation or termination shall also revoke or terminate the ability of a commercial cannabis business to operate within the City of San Bernardino. 5.10.150 Appeals Unless specifically provided elsewhere to the contrary, any determination of the Chief of Police or Community Development Director, or their designees, may only be appealed to the City Manager, which decision shall be final. The City Manager may delegate the appeal to the City's Hearing Officer appointed in conformity with Chapters 9.92 and 9.93 of this Code, in which case, the decision of the Hearing Officer shall be final. All decisions of the City Council or City Manager under this Chapter shall be final. All appeals shall be conducted as prescribed in this Section, Section 5.10.160 and Section 5.10.170. 5.10.160 Written request for Appeal (a) Within ten (10) calendar days after the date of the determination an aggrieved party may appeal such determination by filing a written appeal with the City Clerk setting forth the reasons why the determination was not proper. (b) At the time of filing the appellant shall pay the designated appeal fee, established by resolution of the City Council from time to time. 5.10.170 Appeal Hearing (a) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing before the City Manager, or if the appeal has been delegated to the Hearing Officer, before the Hearing Officer. The City Manager or Hearing Officer shall hear the matter de novo, and shall conduct the hearing pursuant to the procedures set forth by the City. (b) The appeal shall be held within a reasonable time after the filing the appeal, but in no event later than ninety (90) days from the date of such filing. The City shall notify the appellant of the time and location at least ten (10) days prior to the date of the hearing. (c) At the hearing, the appellant may present any information they deem relevant to the determination appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. (d) At the conclusion of the hearing the City Manager or Hearing Officer may affirm, reverse or modify the decision appealed. Public Review Draft — Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5.10.180 Permittee Selection Process (a) The City Council shall adopt by resolution a procedure guideline and Review Criteria by which the top applicants in each category of each commercial cannabis business will be presented to the City Council for a final determination at a public hearing. (b) The top final applicants for each category may be invited to attend the City Council meeting, only if requested by the City Manager or his/her designee where they may be expected to make a public presentation introducing their team and providing an overview of their proposal. In order to provide adequate time, presentations may be divided over more than one meeting over multiple days as determined to be neOssery. T (c) At least ten (10) days prior to the hearing, notice. of4he hearing shall be sent to all property owners located within five hundred (500) feet. of the "osed business locations of each of the finalists to be considered by the City.Council. (d) The City Council shall either deny dr approve the final candidptes and shall select the top candidates in each category of the commercial cannabis. businesses,- The City Council's decision as to the selection of the prevailing candidates shall be final. (e) Official issuance of the apovwfierqial conditioned upon the prevailing chndfdate(s) Following the Council's selection, the .prevai Community Development Department, to ob entitlements for the permittee's location, if any., with all applicable provisions -,of CEQA.."Th"Oe formally issue the commercial cannabis busirie'ss Director or his/her designees) -affirms that all'( obtained." cannabis business permit(s), however, is obtaining all required land use approvals. ling , candidate(s) shall apply to the City's caro dhy. required. land use approvals or -Land use etpprovals shall include compliance qty Manager or his/her designee(s) shall t(s) once the Community Development `the required land use approvals have been (f) Issuance of a commercial cannabis business permit does not create a land use entitlement Qr serve as a building permit. The commercial cannabis business permit shall only be for a term of twelve (1L) inonths, and shall expire at the end of the twelve (12) month period unless :it is renewed' ar; provided herein. Furthermore, no permittee may begin operations, notwithstanding the issuance of a permit, unless all of the state and local laws and regulations, including but nat'liziiited to the requirements of this Chapter, applicable building permits, and of the commdrnal cannabis business permit, have been complied with. Until a state license is available fid• obtained by the permitted operator, this means compliance with all provisions of the Medical Cannabis Collective Laws as set forth at Section 5.10.060. (g) Notwithstanding anything in this Chapter to the contrary, the City Council reserves the right to reject any or all applications if it determines it would be in the best interest of the City, taking into account any health, safety and welfare impacts on the community. Applicants shall have no right to a commercial cannabis business permit until a permit is actually issued, and then only for the duration of the permit term. Each applicant assumes the risk that, at any time prior to the issuance of a permit, the City Council may terminate or delay the program created under this Chapter or otherwise revise, amend, or repeal this Chapter. Public Review Draft — Page 21 i 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 is 19 20 21' 22 23 24 25 26 27 28 (h) If an application is denied, a new application may not be filed for one (1) year from the date of the denial. (i) Each person granted a commercial cannabis business permit shall be required to pay the permit fee established by resolution of the City Council, to cover the costs of administering the commercial cannabis business permit program created in this Chapter. 5.10.190 Updated registration form Within fifteen (15) calendar days of any other change in the information provided in the registration form or any change in status of compliance with the provisions of this Chapter, including any change in the commercial cannabis business location or ownership or management members, the applicant shall file an updated registration form with the City Manager or his/her designee(s) for review along with a registration amendment fee, as set forth in section 5.10.090 and 5.10.130. 5.10.200 Change in Ownership or Location (a) The owner of a cannabis business permit shall not transfer ownership or control of the permit to another person or entity unless and until the transferee obtains an amendment to the permit from the City Manager or his/her designee stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files an application with the City Manager or his/her designee in accordance with all provisions of this Chapter (as though the transferee were applying for an original cannabis business permit) accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee), and the City Manager or his/her designee determines, after hearing, in accordance with this section that the transferee passed the background check required for permittees and meets all other requirements of this Chapter. No transfer of ownership may occur within five (5) years of the date the permit is originally issued. (b) Commercial cannabis business permits issued through the grant of a transfer by the City Manager or his/her designee shall be valid for a period of one year beginning on the day the City Manager or his/her designee approves the transfer of the permit. Before the transferee's permit expires, the transferee shall apply for a renewal permit in the manner required by this Chapter. (c) Changes in ownership of a permittee's business structure or a substantial change in the ownership of a permittee business entity (changes that result in a change of more than 51 % of the original ownership), must be approved by the City Manager or his/her designee through the transfer process contained in subsection (a). Failure to comply with this provision is grounds for permit revocation. (d) A permittee may change the form of business entity without applying to the City Manager or his/her designee for a transfer of permit, provided that either: Public Review Drab — Page 22 i z 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (1) The membership of the new business entity is substantially similar to original permit holder business entity (at least 51 % of the membership is identical), or (2) If the original permittee is an unincorporated association, mutual or public benefit corporation, agricultural or consumer cooperative corporation and subsequently transitions to or forms a new business entity as allowed under the MAUCRSA and to comply with Section 5.10.060, subdivision (b), provided that the Board of Directors (or in the case of an unincorporated association, the individual(s) listed on the City permit application) of the original permittee entity are the same as the new business entity. Although a transfer is not required in these two circumstances, the permit holder is required to notify the City Manager in writing of the change within ten (10) days of the change. Failure to comply with this provision is grounds for permit. revocation. (e) No commercial cannabis business perin t nay be transferred when the City Manager or his/her designee has notified the permitteiq that the permit has been .pr may be suspended or revoked. (f) Any attempt to transfer a commercial cannabis; business permit either directly or indirectly in violation of this sectign iq hereby declaimed void, and such a purported transfer shall be deemed a ground for revocation.of the permit. `\ ' (g) The dispensing; Wtivation, manufacturing, transportation and distribution location specified in the re - . a sp „gun ; � to ry hermit may not change without an amendment to the permit, processed in the sane manner is an initial permit pursuant*to the process and fees set forth in sections 5.10.090 above: i 5.10.210• 'Cid Business .icense Priot to commencingoperati=n ,-,and at all &es' thereafter, a commercial cannabis business shall maintain a valid Cit '.qf San Bmardino business license. 5.10.220 J30ding Permits and Inspection Prior to commencing. operations,' and at all times thereafter, a commercial cannabis business shall be subject to a mandatory'building inspection, and must obtain all required permits and approvals which would otberivise 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, Health Department approvals and other zoning and land use permit(s) and approvals. No modifications to the structure of the premises shall be made without required approvals listed above. Public Review Draft —Page 23 1 2 3 4 5 6 7 8 9 10� 11 12 13 14 15 16 17 18 19 20 5.10.230 Certification from the Community Development Director Prior to commencing operations, a commercial cannabis business must obtain a certification from the Community Development Director or his/her designee(s) certifying that the business is located on a site that meets all of the requirements of Chapter 19 of the City Ordinance. 15.10.240 Right to Occupy and to Use Property As a condition precedent to the City's issuance of a commercial cannabis business permit pursuant to this Chapter, any person intending to open and to operate a commercial cannabis business shall provide sufficient evidence, which sufficiency shall be determined in the reasonable discretion of the approving body, of the legal right to occupy and to use the proposed location for the proposed commercial cannabis activity. In the event the proposed location will be leased from another person, the applicant shall be required to 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 commercial cannabis `business on the owner's property. 5.10.250 Location and Design .of Cannabis Businesses Cannabis businesses permitted to engage in Cultivation, Distribution, Manufacturing, Testing Labs, and Retail Sales, for cannabis and cannabis products are subject to the following zoning and locational requirements: (a) The cannabis business must be located on property zoned CG (Commercial General), CG -2 (Commercial General -2), CG -3 (Commercial General -3), CR -2 (Commercial Regional -Downtown), CR -3 (Commercial -Tri -City -Club), CCS -1 (Central City South), CCS - 2 (Central City), CH (Commercial Heavy), IL (Industrial Light), IH (Industrial Heavy), OTP (Office Industrial Park) and must meet all of the requirements for development in these zones; and 211 (b) The property on which the cannabis business is located must also meet all of the following distance requirements (all distances shall be measured from exterior parcel line to 22 exterior parcel line): 23 (1) It shall be no closer than three hundred (300) feet of any residentially zoned or 24 residentially used parcel in the City, the City's sphere of influence, a neighboring incorporated city, or unincorporated county. 25 26 (2) It shall be no closer than six hundred (600) feet from any parcel in the City, the City's sphere of influence, a neighboring incorporated city, or unincorporated 27 county containing any of the following: 28 Public Review Draft — Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A. A school providing instruction in kindergarten or any grades 1 through 12, (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12); B. A commercial daycare center licensed by the City, another city, or County that is in existence at the time the permit is issued; C. A youth center that is in existence at the time the permit is issued. D. A park that is in existence at the time the permit is issued. (3) The City shall consider the proximity of the proposed commercial cannabis business to religious facilities in existence at the time the permit is granted when determining whether the issue the permit and any conditions thereto. (c) Each proposed cannabis business projo& shall: dr I (1) Conform with the City's general plgn, any applicable specific plans, master plans, and design requirements. (2) Comply with all applicable •zoning and related development standards. (3) Be constructed in a manner that minimizes 'odors to surrounding uses, and promotes quiiy design and construction, and WON with the surrounding properties.: (4) Be adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities; landscaping and all items required for the development. (5) Be served by highways adequate. m' width and improved as necessary to carry the kind and quantity of traffic such use'will generate. (6) Be provided with adequate,electricity, sewage, disposal, water, fire protection and storm drain facilities for the intended purpose. 5.10.260 Limitations on City's Liability 23 To the fullest extent perrpitted by law, the City of San Bernardino shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit 24 pursuant to this Chapter or otherwise approving the operation of any commercial cannabis business. As a condition to the approval of any commercial cannabis business permit, the 25 applicant shall be required to meet all of the following conditions before they can receive the 26 commercial cannabis business permit: 27 (a) They must execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant's sole cost and expense), and hold the City of San Bernardino, 28 and its officers, elected officials, employees, representatives, and agents, harmless, from any Public Review Draft — Page 25 1 2 3 4. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 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 commercial cannabis business permit, the City's decision to approve the operation of the commercial 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 commercial cannabis business or any of its officers, employees or agents. (b) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Manager or his/her designee. (c) Reimburse the City of San Bernardino for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City of San Bernardino may be required to pay as a result of any legal challenge related to the City's approval of the applicant's commercial cannabis business permit, or related to the City's approval of a commercial cannabis activity. The City of San Bernardino 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. 5.10.270 Records and Recordkeeping (a) Each owner and operator of a commercial cannabis business shall maintain accurate books and records in an electronic format, 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 commercial cannabis business permit issued pursuant to this Chapter), or at any time upon reasonable request of the City, each commercial cannabis business shall file a sworn statement detailing the number of sales by the commercial 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, including, but not limited to, employee withholdings. On an annual basis, each owner and operator shall submit to the City a financial audit of the business's operations conducted by an independent certified public accountant. At the request of the City Manager, or his/her designee, the each owner and operator shall provide copies of the last three (3) years of their local, state and federal tax returns so that the City may verify the information provided above. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager or his/her designee(s). 22 ' (b) Each owner and operator of a commercial cannabis business shall maintain a current 23 register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and 24 separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this 25 paragraph shall be provided to the City Manager or his/her designee(s) upon a reasonable 26 . request. 27 (c) Prior to state licensing, each commercial cannabis business shall maintain a record of all persons, patients, collectives and primary caregivers served by the commercial cannabis 28 business, for a period of no less than four (4) years. Once a state license is obtained, the Public Review Draft — Page 26 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17. 18 19 20 21 22 23 24 25 26 27 28 commercial cannabis business must maintain such records only to the extent permitted or required by the MAUCRSA. (d) All commercial cannabis businesses 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 as set forth MAUCRSA. Additionally, all commercial cannabis businesses shall maintain records that identifies the source of all products (company name, location, license numbers etc.). (e) Subject to any restrictions under the Health Insurantx'Portability and Accountability Act (HIPPA) regulations, each commercial cannabis bi4iness shall allow the City of San Bernardino officials to have access to the business's.liools,'records, accounts, together with any other data or documents relevant to its permitt4 pom&ereW 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 mb later than twenty-four (24) hours after receipt of the City's request, unless otherwise stipulated by the City. They City may require the materials to be submitted in an electronic fonuat that is compatible with the City's software and hardware. 5.10.280 Security Measures.' (a) A permitted commercial caiinibis `business shall implement sufficient security measures to deter and prevent the unahtl orized entrahce into areas containing cannabis or cannabis products,.aiid to deter and preverlt..the.thefi=of ihnabis or cannabis products at the commercial cannabis business. Except as may otherwise tie-detemained 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} Pieveg individuals from remaining on the premises of the commercial cannabis business if they are not engaging in an activity directly related to the permitted operations of the commercial cannabis business. (2) -Ettablishing limited access areas accessible only to authorized commercial cw=bis business personnel. (3) Except,-foic live growing plants which are being cultivated at a cultivation facility, all gahnabis and cannabis products shall be stored in a secured and locked room, safe, or vault. All cannabis and cannabis products, including live plants that are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss, (4) Installing 24-hour security surveillance cameras of at least HD -quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of Public Review Draft — Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 cannabis could reasonably occur. Cameras shall clearly show each point of sale location, register with a time/date stamp. The commercial 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 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). Video recordings shall be maintained for a minimum of one hundred twenty (120) days, and shall be made available to the City Manager or his/her designee(s) upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business. (5) Sensors shall be installed to detect entry and exit from all secure areas. (6) Panic buttons shall be installed in all commercial cannabis businesses. (7) Having a professionally installed, maintained, and monitored alarm system. The owner and operator shall be subject to the City's security alarm systems ordinance in Chapter 8.81. (8) Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building as approved by the City and Fire Department. (9) Security personnel shall be on-site 24 hours a day or alternative security as authorized by the. City Manager or his/her designee(s). 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. (10) Each commercial cannabis business shall have the capability to remain secure 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. (b) Each commercial cannabis business shall identify a designated security representative/liaison to the City of San Bernardino, who shall be reasonably available to meet with the City Manager or his/her designee(s) regarding any security related measures or and operational issues. The commercial cannabis business shall notify the City Manager or his/her designee within twenty four (24) hours of a change in designated security representativelliaison. (c) As part of the application and permitting process each commercial 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. Public Review Draft — Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (d) The commercial cannabis business shall cooperate with the City whenever the City Manager or his/her designee(s) makes a request, upon reasonable notice to the commercial cannabis business, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter. (e) A commercial 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(s). (2) Diversion, theft, loss, or any criminal activity involving the commercial cannabis business or any agent or- employee of the commercial cannabis business. (3) The loss or unauthorized alt!iation of records related- to cannabis, registering qualifying patients, primary ` givers, g employees or agents of the commercial cannabis business. (4) Any other breach of -119 ty.., 5.10.290 Restriction on AlcohoI,.,4,To&accO' Sales (a) No person shall cause or permit\tlie. salt,ispe�nsing, or consumption of alcoholic beverages to any person, including minors, on or about . the property occupied by the commercial cannabis business. (b) �No persori:shall cause or permit the sale nf-tobacco products to any person, including minors, on or aboutthe property occupied by the commercial cannabis business. 5.10.300,E Fees and C: Iirpes (a) No pMoft.may commence or continue any commercial cannabis activity in the City, without timely paying in full X11 fees and charges required for the operation of a commercial cannabis activity. IFees ,and charges associated with the operation of a commercial cannabis activity shall be established by resolution of the City Council which may be amended from time to time. Such fees 4nd charges may include, but are not limited to, a regulatory fee imposed for the reasonable regulatory costs to the City for issuing licenses and permits, performing investigations, inspections, and audits, and the administrative and criminal enforcement and adjudication thereof. (b) All commercial cannabis businesses authorized to operate under this Chapter shall pay all sales, use, business, employment and other applicable taxes, and all license, registration, and other fees required under federal, state and local law. Each commercial cannabis business shall cooperate with City with respect to any reasonable request to audit the commercial cannabis business' books and records for the purpose of verifying compliance with this Public Review Draft — Page 29 1 2 3'. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 section, including but not limited to a verification of the amount of taxes required to be paid during any period. 5.10.310 Miscellaneous Operating Requirements (a) Commercial cannabis businesses may operate only during the hours specified in the commercial cannabis business permit issued by the City. (b) On-site consumption of cannabis is prohibited at all times by all individuals on the Property (c) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a commercial cannabis business permit, or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time. (d) Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), time and date of each sale and other information which may be deemed necessary by the City. The commercial cannabis business shall ensure that such information is compatible with the City's record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager or his/her designee(s) prior to being used by the permittee. (e) All cannabis and cannabis products sold, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the State and local regulations. No cannabis or cannabis products may be sold, distributed, or transferred out of the State. (f) There shall not be a physician located in or around any commercial cannabis business at any time for the purpose of evaluating patients for the issuance of a cannabis recommendation or card where applicable. (g) Prior to dispensing medicinal cannabis or medicinal cannabis products where applicable to any person, the commercial medicinal cannabis business shall obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient. (h) Emergency Contact. Each commercial cannabis business shall provide the City Manager or his/her designee(s) with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day. The commercial cannabis business shall notify the City Manager or his/her designee within twenty four (24) hours of a change in the emergency contact. (i) Signage and Notices. Public Review Draft —Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (1) In addition to the requirements otherwise set forth in this section, business identification signage for a commercial cannabis business shall conform to the requirements of Chapter 19.22, including, but not limited to, seeking the issuance of a City sign permit. (2) No signs placed on the premises of a commercial cannabis business shall obstruct any entrance or exit to the building or any window. (3) Each entrance to a commercial cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited. (4) Business identification signage shall -be limited to that needed for identification only and shall not contain an.,y 1o�os or information that identifies, advertises, or lists the services or the products offered. No commercial cannabis business shall advertise by having a persT holding a..sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere incl`uog, llui not limited to, the public right- of-way. (5) Signage shall not be directly illi mmi ated, intenihlly or externally. No banners, flags, bRiliaa%ds.. or other prohibited signs may bb,used at any time. f � (6) In decordance Wi* state law and regulations or as stipulated in the City of San Bernardino regulatory permit; holders of a commercial cannabis business permit shall agree'. that, as an express and ongoing condition of permit issuance and subsequeni. renewaI,. Jho . holder of the permit shall be prohibited from advertising any I commercial- • cannabis business located in the City of San Bernardino utilizing a billboard" (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising, anywhere in the state. This paragraph is not intended to place Imitations on the ability of a commercial cannabis business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways. 6) Minors. (1) Persons under the age of twenty-one (21) years shall not be allowed on the premises of a commercial cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this Chapter for any person to employ any person at a commercial cannabis business who is not at least twenty-one (21) years of age. (2) The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of Public Review Dmft — Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 age is permitted to enter upon the premises of the commercial cannabis business. (k) Odor Control. Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site. Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment, or any other equipment which the Community Development Director or his/her designees) determine is a more effective method or technology: (1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; (2) An air system that creates negative air pressure between the commercial cannabis business's interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business. 0) Display of Permits. The original copy of the commercial cannabis business permit issued by the City pursuant to this Chapter, the City issued business license, the State license(s), State seller's permit, and tax exemption certification shall be posted inside the commercial cannabis business in a location readily -visible to the public. (m) Background Check. Every person listed as an owner, manager, supervisor, employee or volunteer, of the commercial cannabis business must submit fingerprints and other information deemed necessary by the Chief of Police or his/her designee(s) for a background check by the City of San Bernardino's Police Department pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorizes City authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation. Pursuant to California Penal Sections 11105(b)(11) and 13300(b)(11), which requires that there be a requirement or exclusion from employment, licensing or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a permit to operate a commercial cannabis business or a related work permit unless they have first cleared the background check, as determined by the Chief of Police or his/her designee(s). A fee for the cost of the background investigation, which shall be the actual cost to the City of San Bernardino to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a commercial cannabis business permit is submitted. Public Review Draft — Page 32 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (n) Loitering. The owner and/or operator of a commercial cannabis business shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises. (o) Permits and other Approvals. Prior to the establishment of any commercial cannabis business or the operation of any such business, the person intending to establish a commercial cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such commercial cannabis business intends to establish and to operate. (p) If the commercial cannabis business permitted is -'operating as a collective or cooperative under Health and Safety Code Section ,11362.775, subdivision (a), the commercial cannabis business shall terminate the m*t eiship of any member violating any. of the provisions of this Chapter. (q) The interior and exterior of the premises of the commercial cane is business shall be well lit at all times. The windows of the building shall provide an unobstructed view into the interior. 5.10.320 Other Operational equit'ements The City Manager or his/her desigdee mak develop other commercial cannabis business operational requirements or regulations h$ .are det 'ermined to be -necessary to protect the public health, safety and welfare. 5.10.330 Operating Requirements forUetailer Facilities; Delivery (a) j46 more than the number of retailers adQptgd by resolution may operate within the City of Say Bernardi; ,at any one time and no more than that number adopted by resolution shall be issued a perniit,by the City of San Bernardino to operate a retailer at one time. Both retailer's ..offering storefront }purchase (customers purchase and obtain cannabis onsite) and retailers offefing delivery 'only shall be permitted. Each shall be required to maintain a physical lova iRn• from whicl%• commercial cannabis activities are conducted that is permitted under this Chapter. (b) Retailers may • goly deliver to customers within a County or City that does not expressly prohibit delivery by ordinance. Retailers may only deliver to customers within the City of San Bernardino after obtaining a commercial cannabis business permit issued under the Chapter. Security plans developed pursuant to this chapter shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit. (c) M -type Retailers must verify the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years and that the potential customer has a valid doctor's recommendation. A -type retailers must verify the age of customers to ensure persons under the age of twenty-one (2 1) are not permitted. Public Review Draft — Page 33 ii I (d) Entrances into the retailer shall be locked at all times with entry strictly controlled. A 1 "buzz -in" electronic/mechanical entry system shall be utilized to limit access to and entry to 2 the retailer to separate it from the reception/lobby area. 3 (e) Uniformed licensed security personnel shall be employed to monitor site activity, 4: control loitering and site access, and to serve as a visual deterrent to unlawful activities. 1. 5 (f) Retailers may have only that quantity of cannabis and cannabis products reasonably anticipated to meet the daily demand readily available for sale on-site in the retail sales area of 6 the retailer. 7 (g) All restroom facilities shall remain locked and under the control of management. 8 5.10.340 Operating Requirements for Commercial Cultivation Facilities 9 (a) All outdoor cultivation is prohibited. The cultivation of all cannabis must occur 10 indoors. 11 (b) In no case, shall cannabis plants be visible from a public or private road, sidewalk, 12 park or any common public viewing area. 13 (c) If a commercial cannabis cultivation is permitted in the City of San Bernardino then it 14 shall only be allowed to cultivate the square feet of canopy space permitted by state law. 15 (d) Cannabis cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water quality, woodland and riparian i6 habitat protection, agricultural discharges, and similar matters. j i7 (e) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination 18 through erosion, leakage or inadvertent damage from pests, rodents or other wildlife. 19 (f) The cultivation of cannabis shall at all times be operated in such a way as to ensure the 20 health, safety, and welfare of the public, the employees working at the commercial cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being 21 cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis. 22 23 (g) All applicants for a cannabis cultivation permit shall submit the following in addition to the information generally otherwise required for a commercial cannabis business: 24 (1) A cultivation and operations plan that meets or exceeds minimum legal 25 standards for water usage, conservation and use; drainage, runoff, and erosion 26 control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a 27 description of the cultivation activities (indoor, mixed -light) and schedule of activities during each month of growing and harvesting, or explanation of 28 Public Review Draft — Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19. 20 21 22 23 24 25 26 27 28 growth cycles and anticipated harvesting schedules for ail -season harvesting (indoor, mixed -light). (2) A description of a legal water source, irrigation plan, and projected water use. (3) Identification of the source of electrical power and plan for compliance with applicable Building Codes and related codes. (4) Plan for addressing odor and other public nuisances that may derive from the cultivation site. 5.10.350 Operating Requirements for Testing Labs , (a) Testing Labs shall be required to conduct alf,testingia a manner pursuant to Business and Professions Code 26100 and shall be subject to state arid,local law. Each Testing Lab shall be subject to additional regulations as determined from timeto time as more regulations are developed under Section 5.10.360 (a) of this Chapter and any. subsequent State of California legislation regarding the same. (b) Testing Labs shall conduct :all:sting tein a manner consistent with gen"- requirements for the competence of testing and;�W: ations activities, including sampling using verified methods. I (c) All cannabis testing laboratories�peiforming testing shall obtain and maintain ISO/IEC 17025 accreditation,as required by the Bureau, of6 abs Control. (d) Testing labs .shall destroy any harvest batch whose testing sample indicates noncompliance with health and safety standards,. required by the bureau unless remedial measures can bring the cannabis or cannabis prod -acts into compliance with quality standards as spe fled by law•and implemented by the bureau: (e) Each operator sl all ensure that a testing laboratory employee takes the sample of cannabis or, cannabis products from the distributor's premises for testing required by state law and that the festftg laboratory, employee transports the sample to the testing laboratory. (f) Except as provided liy state law, a testing laboratory shall not acquire or receive cannabis or cannabis products except from a licensee in accordance with state law, and shall not distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from which the cannabis or cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol. (g) A testing laboratory may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient's valid physician's recommendation for cannabis for medicinal purpose. A testing lab shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a testing laboratory Public Review Draft — Page 35 1 2 3 4 5 6 7. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received. 5.10.360 Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or Distribution of Edible and Other Cannabis Products (a) Cannabis manufacturing facilities requiring a Type -6, or Type -7 or any subsequent created manufacturing state license (using non-volatile and volatile solvents) as defined in MAUCRSA, may be permitted to operate within those zone districts as defined in Title 19 of the City of San Bernardino Code. (b) Any compressed gases used in the manufacturing process shall not be stored on any property within the City of San Bernardino in containers that exceeds the amount which is approved by Fire Department and authorized by the regulatory permit. Each site or parcel subject to a commercial cannabis business permit shall be limited to a total number of tanks as authorized by the Fire Department on the property at any time. (c) Cannabis manufacturing facilities may use the hydrocarbons N -butane, isobutane, propane, or heptane or other solvents or gases exhibiting low to minimal potential human - related toxicity approved by the Community Development Department and Fire Department. These solvents must be of at least ninety-nine percent purity and any extraction process must use them in a professional grade closed loop extraction system designed to recover the solvents and work in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present. (d) If an extraction process uses a professional grade closed loop CO2 gas extraction system every vessel must be certified by the manufacturer for its safe use as referenced in 5.10.370 (f). The CO2 must be of at least ninety-nine percent purity. (e) Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number. (f) Certification from an engineer licensed by the State of California must be provided to the Community Development Department for a professional grade closed loop system used by any commercial cannabis manufacturing manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to: (1) The American Society of Mechanical Engineers (ASME); (2) American National Standards Institute (ANSI); (3) Underwriters Laboratories (UL); or (4) The American Society for Testing and Materials (ASTM) Public Review Draft — Page 36 (g) The certification document must contain the signature and stamp of the professional 1 engineer and serial number of the extraction unit being certified. 2 (h) Professional closed loop systems, other equipment used, the extraction operation, and 3 facilities must be approved for their use by the San Bernardino County Fire Department and meet any required fire, safety, and building code requirements specified in the California 4 Building Reference Codes. 5 (i) Cannabis Manufacturing Facilities may use heat, screens, presses, steam distillation, 6 ice water, and other methods without employing solvents or gases to create keef, hashish, 7 bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts. 8 V)Cannabis Manufacturing Facilities may use food grade. glycerin,ethanol and 9 ` propylene glycol solvents to create or refine extracts: Ethanol shpuld be removed from the extract in a manner to recapture the solvept and ensure that it is not vented into the 10 atmosphere. 11 (k) Cannabis Manufacturing Facilities creatI4 rannabfis .extracts must develop standard 12 operating procedures, good manufacturing practices, and w training plan prior to producing 13 extracts for the marketplace. 14 Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully •trained on how -to use the system, have direct access to applicable 15 material safety data,Aheets "an4 handle and store solvents and gases safely. 16 (m) Parts per million for one gram of finished .extract cannot exceed state standards for any 17 residual solvent or gas w4en.quality assurance tested. 18 5.10.370 Promulgation of Regulatidns, Standards and Other Legal Duties 19 (a) In addition to any rregulatioiis.adopted by the City Council, the City Manager or his/her 20 designee is authorized to establish aiiy, additional rules, regulations and standards governing the issuance, denial or renewal of commercial cannabis business permits, the ongoing 21 operation of commercial cannabis businesses and the City 's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter. 22 23 (') Regulations shall be published on the City 's website. 24 (c) Regulations promulgated by the City Manager or his/her designee shall become effective upon date of publication. Commercial cannabis businesses shall be required to 25 comply with all state and local laws and regulations, including but not limited to any rules, 26 regulations or standards adopted by the City Manager or his/her designee. 27, (d) Testing Labs, Distribution facilities shall be subject to state law and shall be subject to additional regulations as determined from time to time as more regulations are developed 2811 ; Public Review Draft — Page 37 under Section 5.10.380 (a) of this Chapter and any subsequent State of California legislation 1 regarding the same. 21 5.10.380 Community Relations 3 h commercial cannabis business shall provide the name telephone number, and 4 � (a} Each p ep , email address of a community relations contact to whom notice of problems associated with 5 1 the commercial cannabis business can be provided. Each commercial cannabis business shall also provide the above information to all businesses and residences located within one 6 hundred (100) feet of the commercial cannabis business. The commercial cannabis business 7 shall notify the City Manager or his/her designee within twenty four (24) hours of a change in community relations contact. 8 (b) During the first year of operation pursuant to this Chapter, the owner, manager, and 9 community relations representative from each commercial cannabis business holding a permit issued pursuant to this Chapter shall attend meetings with the City Manager or his/her l 10 designee(s), and other interested parties as deemed appropriate by the City Manager or his/her 11 designee(s), to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter. After the first year of operation, the owner, manager, and 12 community relations representative from each such commercial cannabis business shall meet with the City Manager or his/her designee(s) when and as requested by the City Manager or 13 his/her designee(s). i 14 (c) Commercial cannabis businesses to which a permit is issued pursuant to this Chapter 15 shall develop a City approved public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth addiction to 16 cannabis, and that identifies resources available to youth related to drugs and drug addiction. 17 5.10390 Fees Deemed Debt to the City of'San Bernardino 18 The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a 19 debt to the City of San Bernardino that is recoverable via an authorized administrative process 20 as set forth by ordinance, or in any court of competent jurisdiction. 21 5.10.400 Permit Holder Responsible for Violations 22 The person to whom a permit is issued pursuant to this Chapter shall be responsible for all j violations of the laws of the State of California or of the regulations and/or the ordinances of 23 the City of San Bernardino, whether committed by the permittee or any employee or agent of 24 the permittee, which violations occur in or about the premises of the commercial cannabis business whether or not said violations occur within the permit holder's presence. 25 26 5.10.410 Inspection and Enforcement 27 (a) The City Manager, Chief of Police or his/her designee(s) charged with enforcing the provisions of this Code, or any provision thereof, may enter the location of a commercial 28 cannabis business at any time, without notice, and inspect the location of any commercial Public Review Draft — Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27. 281 cannabis business as well as any recordings and records required to be maintained pursuant to this Chapter or under applicable provisions of State law. The City Manager, Chief of Police, or his/her designee(s) may record with audio and video the any inspection conducted under this Section. (b) It is unlawful for any person having responsibility over the operation of a commercial cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained > yl a commercial cannabis business under this Chapter or under state or local law. (c) The City Manager, Chief of Police or his/he desigr eq(s) charged with enforcing the provisions of this Chapter may enter the location of a commerF;W,cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City of'S.an-Bemardino shall be logged, recorded, and maintained in accordance with established procedures by the San Bernardino Police Department or these regulations. 5.10.420 Compliance with S*ts._ftulation It is the stated intent of this Chapter `to 'iegulate_ dommercial. cannabis activity in the City of San Bernardino in compliance with a1l1 provisions MAUCRSA and any subsequent state legislation. s 1 . 5.10.430 Violations declarod a public nuisance Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a public nuisance and may be .summarily abated by the City Manager, Chief of Police, or designee of either of them. The City may recover any nuisance abatement costs and/or administrative fines relating to such -violations in accordance with Government Code Sections 38773.1 and J8773.5 in accordance with Chapter 8.30 of this Code. 5.10.440 Each violation a separate offense 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 City of San Bernardino. Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive relies; any permit issued pursuant to this Chapter being deemed null and void, disgorgement and payment to the City for any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity. The City of San Bernardino may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the commercial cannabis business or persons related to, or associated with, the commercial cannabis activity. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the City Manager, Chief of Police or his/her designee(s), may take immediate action Public Review Draft —Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 to temporarily suspend a commercial cannabis business permit issued by the City, pending a hearing before the City Manager, or his/her designee(s). 5.10.450 Criminal Penalties Any person causing, permitting, aiding, abetting, suffering or concealing a violation of this Chapter shall be guilty of a misdemeanor, and may, in the discretion of the City Attorney, be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000) or imprisonment in the city or county jail for a period of not more than six (6) months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense. The City Attorney, in his or her sound discretion, may prosecute a violation of this Chapter as an infraction, rather than a misdemeanor, or reduce or agree to the reduction of a previously filed misdemeanor to an infraction. Any person convicted of an infraction under this provisions of this Chapter shall be punished by a fine not exceeding one hundred dollars ($100) for the first violation, a fine not exceeding two hundred dollars ($200) for a second violation within one year, and a fine not exceeding five hundred dollars ($500) for a third violation within one year. A fourth violation of this Chapter within one year shall be charged as a misdemeanor and may not be reduced to an infraction. 5.10.460 Remedies cumulative and not exclusive The remedies provided herein are not to be construed as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law SECTION 4. REPEAL OF ORDINANCES All ordinances related to the establishment and operation of commercial cannabis activities within the City of San Bernardino are hereby repealed and shall be of no further effect from the effective date of this Ordinance. SECTION 5. DEVELOPMENT CODE AMENDMENT FINDINGS 5.1 GENERAL PLAN The Ordinance is consistent with the General Plan. The Ordinance proposes a comprehensive regulatory system for commercial cannabis activities. The regulations include numerical, locational, design, operating, security and sensitive -use distance regulations on commercial cannabis activities. The Ordinance includes review and recommendations of applications for commercial cannabis activities, which will be overseen by the City Manager, and will include the Police Department and Planning Division of the Community Development Department. The Ordinance is also consistent with the following General Plan goals and policies: Policy 2.2.8 requires the City to control the location and number of community -sensitive uses, such as alcohol sales, adult bookstores and businesses, game arcades, and similar Public Review Draft — Page 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 uses based on proximity to residences, schools, religious facilities, and parks. The Ordinance establishes a maximum number of permitted commercial cannabis activities within the City. The Ordinance also establishes locational restrictions, including zoning and distance restrictions. The Ordinance establishes a 200 -foot distance buffer between commercial cannabis activities and residential zones and uses. The Ordinance establishes a 600 -foot distance buffer between commercial cannabis activities and schools, daycare centers, and youth centers. The discretionary approval process within the Ordinance allows the City to consider the proximity of a p6p6sed location to other community -sensitive uses such as religious,. fa4ities and parks when determining whether to approve an application; \for a permit under the Ordinance. Policy 2.2.9 requires the Police Department review uses that may be characterized by high levels of noise, `•n httime patronage, andlor rates of crime; providing for the co�tt` ning or control of use to prevent adverse impacts on adjacen7 residences, schools;`r4ligious facilities, and similar "sensitive': uses. The Police Department has be involve�W the development of the Ordinance to ensure that the Ordinance conWhs adequate regulations that prevent adverse impacts on, adjacent "sensitive" "uses.4'fie .Ordnance contains regulations mandating minimum security measures, , including _security cameras, panic buttons, monitored alarm;systems, anil�ctn.site security guards. The application process adopted by the .City Council pnrcaiant to the Ordinance will allow for the Police Department to reviiew applications:and provide recommendations to the- City Mauag�r. The Police Department's review will be incorporated into the City Manager's, final recommendation to the City Council on whether to ap,ptoye a permit applicatioh. The City Council has reserved to itself the right to icjdct any appli6obn that it determines rejection would be in the best interegt;3 of the City, tng into account any health, safety and welfare impacts on the come r unity. Policy 2.2.10 requires the City to protect the quality of life during the.review of projects. The City is required to use its discretion to deny or requirement mitigation of projects that result in impacts that outweigh the benefits to the public. The City Council has reserved to itself the right to reject any application that it determines rejection would be in the best interests of the City, taking into account any health, safety and welfare impacts on the community. Additionally, as a discretionary approval, the Ordinance authorizes the City Council to condition its approval of a permit to mitigate the negative effects of a commercial cannabis activity. Public Review Dram — Page 41 1 5.2 PUBLIC HEALTH, SAFETY AND WELFARE 2 The Ordinance is not detrimental to the public interest, health, safety, convenience, or 3: welfare. There are a high number of unpermitted commercial cannabis businesses currently 4 operating in the City of San Bernardino. The unpermitted commercial cannabis businesses have caused significant public health, safety and welfare concerns as discussed in the recitals 5 above. The Ordinance addresses those public health, safety and welfare concerns by limiting the number and location of the commercial cannabis activities and imposing operating 6 11 conditions that will ensure that qualified patients and persons over 21 years of age have safe 7 access to cannabis while maintaining the quality of life for the City's residents. The Ordinance is not detrimental to the public interest, health, safety, convenience, or welfare. 8 9 10' 111 12j 13'' 14 15 16 17 18 19 20 21 22 23 5.3 BALANCE OF LAND USES The Ordinance would maintain the appropriate balance of land uses within the City. The Ordinance limits the location of commercial cannabis activities to specified zones within the City and establishes distance buffers from sensitive -uses. The Ordinance includes numerical restrictions on the total number of permitted commercial cannabis activities to ensure that the land uses in the City remain balanced. The Ordinance includes discretionary approval which allows the City Council to consider the balance of land uses when considering the approval of an application. 5.4 SUITABILITY The subject parcels) are physically suitable (including, but not limited to, access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the requested land use designation(s) and the anticipated land use development(s). The Ordinance includes discretionary approval which allows the City Council to consider the suitability of the property proposed in each application for the proposed commercial cannabis activity. The zoning restrictions included within the Ordinance were selected because those zones are the most likely to contain suitable properties for the establishment of commercial cannabis activities. SECTION 6. ENVIRONMENTAL DETERMINATION 24 The Mayor and City Council of the City of San Bernardino, California, hereby find and determine that this Ordinance is not subject to environmental review under the California 25 Environmental Quality Act pursuant to Title 14 of the California Code of Regulations Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical 26' hann tha vironment)• Section 15060(c)(3) (the activity is not a J p ro'ect as defined in 27 28 c ge ien Section 15378) because it has no potential for resulting in a physical change of the environment, directly or indirectly; and Business and Professions Code Section 26055(h) because the Ordinance requires the discretionary review of permits to include any applicable Public Review Draft —Page 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 environmental review pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code. SECTION 7. EFFECTIVE DATE This Ordinance shall be effective upon the thirty-first (31") day following its final passage by a majority vote of the Mayor and City Council. SECTION 8. SEVERABILITY While it is the intent of the Mayor and City Council to adopt a comprehensive regulatory system for commercial cannabis activities within the City of San Bernardino, if any provision of this Ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this Ordinance are severable. The Mayor and City' Cquficil declare that they would have adopted this Ordinance irrespective of the invalidity of aoy particular portion thereof SECTION 9. PUBLICATION The City Clerk shall certify to the adoption of this Oidmance and shall cause this Ordinance to published as provided by State law. Public Review Draft — Page 43 1 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN 2 BERNARDIN09 CALIFORNIA, ADOPTING CHAPTER 5.10 OF THE SAN BERNARDINO MUNICIPAL CODE RELATED TO REGULATION OF 3 COMMERCIAL CANNABIS ACTIVITIES I 4 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor 5 and City Council of the City of San Bernardino at a _ meeting 6 thereof, held on the day of , 2018, by the following vote, to wit: 7 8 Council Members: AYES NAYS ABSTAIN ABSENT 9 MARQUEZ _ 10 BARRIOS 11 VALDIVIA 12.1 SHORETT 13, 14 NICKEL 15 RICHARD 16 MULVIHILL 17' 18 Georgeann Hanna, CMC, City Clerk 19 20 The foregoing Ordinance is hereby approved this day of , 2018. 21 ;I 22.11 R. Carey Davis, Mayor 23 City of San Bernardino 24 1 Approved as to form: Gary D. Saenz, City Attorney 25 26 By: 27 28 Public Review Draft — Page 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER 899 TO THE SAN BERNARDINO MUNICIPAL CODE ESTABLISHING REGULATIONS FOR THE PERSONAL CULTIVATION OF CANNABIS WITHIN PRIVATE RESIDENCES WHEREAS, the City of San Bernardino, California ("City") is a municipal corporation, duly organized under the Charter of the City of San Bernardino and the Constitution and laws of the State of California; and, WHEREAS, at the General Election held on November 5, 1996, California voters approved Proposition 215, commonly known as the "Compassionate Use Act of 1996" ("CUA") with the purpose of allowing medical patients to cultivate and use cannabis without fear of State prosecution; and, WHEREAS, on January 1, 2004, Senate Bill 420 (codified as Health and Safety Code Sections 11362.7, et seq., entitled the "Medical Marijuana Program Act" ("MMPA") went into effect with the purpose of clarifying the scope of the CUA allowing cities and counties to adopt and enforce regulations consistent with the CUA and MMPA; and. WHEREAS, at the General Election held on November 8, 2016, Califomia voters approved Proposition 64, commonly known as the "Control, Regulate and Tax Adult Use of i Marijuana Act" ("AUMA"), making it lawful for persons "...21 years of age or older to ... possess, plant, cultivate, harvest, dry, or process not more than six living marijuana plants and possess the marijuana produced by the plants" (Health & Saf. Code, § 11362.1(a)) subject to "reasonable regulations" enacted and enforced by the City. (Health & Saf. Code, § 11362.2(b)(1)); and, WHEREAS, on October 18, 2017, by Resolution No. 2017-211 the Mayor and City Council directed the Citizen's Advisory Committee on Marijuana ("CAC") to discuss the Public Review Draft - Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23, 24 25 26 27 28; issue of personal cultivation in residential zones and, working with City staff and the City's consultant HdL, report back to the Mayor and City Council on December 20, 2017; and, WHEREAS, the Mayor and City Council received the report from the CAC at its regular meeting on December 20, 2017, and determined there was a need for further time to adequately consider regulations on personal cultivation of cannabis; and, WHEREAS, on December 20, 2017, the Mayor and City Council, seeking to protect the City's authority to regulate personal cultivation, adopted Ordinance No. MC -1452, establishing a moratorium prohibiting all land use entitlements, building permits, business licenses and any other applicable approval or decisions for outdoor personal cultivation and reserving the right to pass regulations for indoor personal cultivation; and, WHEREAS, on January 22, 2018, the Mayor and City Council held a public workshop to discuss, among other topics, personal cultivation of cannabis; and, WHEREAS, on January 22, 2018, the Mayor and City Council opened a duly noticed I I public hearing on an extension of the moratorium; and, WHEREAS, on January 22, 2018, the Mayor and City Council continued the public hearing to February 1, 2018 to have additional time for public comment on the moratorium; and WHEREAS, on February 1. 2018. the Mayor and City Council by a vote of 7-0 voted to extend the moratorium 10 months and 15 days to December 18, 2018 to allow further j consideration of regulations on personal cultivation; and, WHEREAS, on February 1, 2018, the Mayor and City Council directed City staff to I expeditiously prepare regulations for personal cultivation within the City of San Bernardino; and, Public Review Draft - Page 2 I WHEREAS, personal cultivation within residential zones has caused adverse effects 2 to the health, safety, and welfare of the City's residents, including violations of the City's Fire 3 and Building Codes; and, 4 WHEREAS, there is a need to adopt health, safety and welfare regulations to avoid 5 adverse impacts on the City's residents that may arise from personal cultivation; and, 6 7 WHEREAS, the Mayor and City Council have considered the report of the CAC, City 8 staff recommendations, the report of the City's consultant, HdL, on cannabis issues, the 9 viewpoints of stakeholders such as Inland Empire NORML, and extensive public comment to 10 craft this Ordinance; and, 11 WHEREAS, this Ordinance provides an effective regulatory system for personal 12 , 13cultivation in the City, and will address potential adverse impacts to the public health, welfare, 14 and safety, while allowing residents to engage in personal cultivation in a manner consistent 15 with State law; and 16 WHEREAS, this Ordinance would allow for indoor cultivation of cannabis in a 17 private residence or accessory structure in a manner that will ensure any cultivation is safe, 18 secure, and does not create a public nuisance to others living in the City; and, 19 20 WHEREAS, federal law, codified at 21 U.S.C. Sections 801 et seq., entitled the 21 "Controlled Substances Act" ("CSA") makes it unlawful to possess any controlled substances, 22 including cannabis, which has, as a Schedule I drug under the CSA, been determined by the 23 federal government to have a high potential for abuse and no accepted medical value in 24 treatment; and, 25 26 WHEREAS, nothing in this Ordinance is intended to authorize the possession, use, or 27 28 provision of cannabis for purposes that violate federal law. Public Review Draft - Page 3 NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF 1 SAN BERNARDINO DO ORDAIN AS FOLLOWS: 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 1. INCORPORATION OF RECITALS The foregoing recitals set forth above are true and correct and are a substantive part of this Ordinance. SECTION 2. AUTHORITY Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the Charter of the City of San Bernardino, and State law, including Health and Safety Code Section 11362.2(b)(1), the City of San Bernardino is authorized to adopt ordinances that protect the health, safety and welfare of its residents and businesses. The adoption of reasonable regulations on indoor personal cultivation and prohibition on outdoor personal cultivation is a permissible exercise of this authority. SECTION 3. ADOPTION OF ORDINANCE Chapter 8.99, entitled "Personal Cultivation of Cannabis", of Title 8 "Health and Safety" of the San Bernardino Municipal Code is approved and shall be added to the San Bernardino Municipal Code as follows: Chapter 8.99 PERSONAL CULTIVATION OF CANNABIS 8.99.010 Purpose and Intent 8.99.020 Applicability 8.99.030 Definitions 8.99.040 Personal Cultivation of Cannabis 8.99.050 Violations Declared a Public Nuisance 8.99.060 Each Violation a Separate Offense 8.99.070 Criminal Penalties 8.99.080 Remedies Cumulative and Not Exclusive 8.99.010 Purpose and Intent The purpose of this Chapter is to impose reasonable regulatory restrictions on the personal cultivation of cannabis pursuant to State law. This Chapter is not intended to interfere with a patient's right to use medicinal cannabis pursuant to State law, as may be amended, nor does it criminalize cannabis possession or cultivation otherwise authorized by State law. This Chapter is not intended to give any person or entity independent legal authority to engage in commercial cannabis activity, as it is intended simply to impose regulatory restrictions regarding personal cultivation of cannabis in the City pursuant to this Code and State law. Public Review Draft - Page 4 1' 2 3 4i 5 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8.99.020 Applicability Nothing in this title shall be construed to allow any conduct or activity relating to the cultivation, distribution, dispensing, sale, or consumption of cannabis that is otherwise illegal under local or state law. Nor shall it be construed, to exempt any activity related to the cultivation of cannabis from any applicable electrical, plumbing, land use or other building or land use standards or permitting requirements. No provision of this Chapter shall be deemed a defense or immunity to any action brought against any person by the San Bernardino County District Attorney's office, the Attorney General of the State of California or the United States of America. 8.99.030 Definitions A. "City" means the City of San Bernardino, California. B. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, or any other strain or varietal of the genus Cannabis that may exist or be discovered, or developed, that has psychoactive or medical properties, whether growing or not, including but not limited to 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 California Health and Safety Code section 11018 and Business and Professions Code section 26001(f), as both may be amended from time to time. Any reference to cannabis or cannabis products shall include medical and nonmedical cannabis and medical and nonmedical cannabis products, unless otherwise specified. Cannabis or cannabis product does not mean industrial hemp as defined by Health and Safety Code section 11018.5, or the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink, or other product. 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. C. "Cannabis Concentrate" means manufactured cannabis that has undergone a process to concentrate the cannabinoid active ingredient, thereby increasing the product's potency. D. "Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transportation, distribution, or sale of cannabis and cannabis products. E. "Fully Enclosed and Secure Structure" means within a fully enclosed and secure structure that complies with the California Building Code, as adopted in the City of San Bernardino, or, if exempt from permit requirements, that has a complete roof enclosure supported by connecting walls extended from the ground to the roof, a Public Review Draft - Page 5 1 2 3 4 5 6 7 8 9 10 11'' 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 foundation, slab or equivalent base to which the floor is secured by bolts or similar attachments, is secure against unauthorized entry, and is accessible only through one or more lockable doors and accessible only to the owner or tenant. Walls and roofs must be constructed of sold materials that cannot be easily broken through such as two inches by four inch or thicker studs overlaid with 3/8 -inch or thicker plywood or the equivalent. Plastic sheeting, regardless of gauge, or similar products do not satisfy this requirement. If indoor grow lights or air filtration systems are used, they must comply with the California Building, Electrical and Fire Codes as adopted by the City of City of San Bernardino. F. "Cannabis cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis, including nurseries. G. "Personal cultivation" means cannabis cultivation conducted by an individual strictly for that individual's personal use, possession, processing, transporting, or giving away without any compensation whatsoever in accordance with this Code and state law, including but not limited to Health and Safety Code Sections 11362.1 and 11362.2., as may be amended. Personal cultivation also means and includes cultivation of medical cannabis conducted by a qualified patient exclusively for his or her personal medical use, and cultivation conducted by a primary caregiver for the personal medical purposes of no more than five specified qualified patients for whom he or she is the primary caregiver, in accordance with state law, including Health and Safety Code Sections 11362.7 and 11362.765, as may be amended. Except as herein defined, personal cultivation does not include, and shall not authorize, any cultivation conducted as part of a business or commercial activity, including cultivation for compensation or retail or wholesale sales of cannabis. H. "Indoor cannabis cultivation" means cultivation of cannabis using exclusively artificial lighting. I. "Mixed -light cannabis cultivation" means cultivation of cannabis using any combination of natural and supplemental artificial lighting. Greenhouses, hoop houses, hot houses and similar structures, or light deprivation systems are included in this category. J. "Outdoor cannabis cultivation" means cultivation of cannabis using no artificial lighting conducted in the ground or in containers outdoors with no covering. Outdoor cultivation does not include greenhouses, hoop houses, hot houses or similar structures. K. "Primary caregiver" shall have the same meaning as set forth in Health and Safety Code Section 113 62.7, as the same may be amended from time to time. L. "Qualifying patient" or "qualified patient" shall have the same meaning as set forth in Health and Safety Code Section 11362.7, as the same may be amended from time to time. Public Review Draft - Page 6 1 2 3 4 5 6 7 ! 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26. 27 28 M. "Medical cannabis" or "medicinal cannabis" means cannabis that is intended to be used for medical cannabis purposes in accordance with the Compassionate Use Act ("CUA," Health and Safety Code section 11362.7 et seq.), the Medical Marijuana Program Act ("MMPA," Health and Safety Code section 11362.7 et seq.) and the Medicinal Adult -Use Cannabis Regulation and Safety Act ("MAUCRSA," Division 10 of the Business and Professions Code). N. "Private Residence" or "Residence" means a house, apartment unit, mobile home or other similar dwelling which is permitted by the City. 8.99.040 Personal Cultivation of Cannabis A. Indoor cannabis cultivation and mixed -light cannabis cultivation for personal use is permitted within all private residential dwellings and accessory structures to all private residential dwellings within all zoning districts, subject to all of the following minimum standards: 1. All indoor cannabis cultivation and mixed -light cannabis cultivation for personal use, including by a qualified patient or primary caregiver, shall occur in a private residential dwelling or accessory structure to a private residential dwelling, as those terms are defined in Chapter 19.02 of this Code. 2. No more than six (6) cannabis plants may be cultivated by either a qualified patient, primary caregiver, or an individual over twenty-one (21) years old at each private residential dwelling or accessory structure regardless of the number of qualified patients or adults twenty-one (21) and older who reside at such private residential dwelling. 3. Medical cannabis shall only be cultivated by: i. A qualified patient exclusively for his or her own personal medical use but who does not provide, donate, sell, or distribute medical cannabis to any other person and who can provide a written doctor's recommendation to the City upon request; or ii. A primary caregiver who cultivates, possesses, stores, manufactures, transports, donates, or provides medical 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 California Health and Safety Code Section 11362.765(c). 4. For persons other than qualified patients or primary caregivers, all personal cultivation shall be conducted by persons twenty-one (21) years of age or Public Review Draft - Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 older. The cumulative total of cannabis plants on the property shall not exceed six (6) cannabis plants, regardless of the number of persons residing at the private residential dwelling. 5. Written consent from all owners of the property to cultivate cannabis within the residential dwelling or in a fully enclosed and secure accessory structure shall be obtained and shall be kept on the property, and available for inspection by the Chief of Police or his/her designee upon request. The written consent shall only be valid for twelve (12) months from the signing of the consent. 6. Cannabis cultivation of medical and nonmedical cannabis for personal use may occur inside a private residential dwelling and/or an accessory building or structure on the same parcel, subject to the following restrictions: i. Structures and equipment used for indoor cannabis cultivation and/or mixed -light cannabis cultivation, such as indoor grow lights, shall comply with all applicable zoning, building, electrical and fire code regulations as adopted by the City. ii. All accessory buildings and structures used for indoor cannabis cultivation and/or mixed -light cannabis cultivation shall comply with the locational and other requirements set forth in Title 19 of this Code. iii. Personal cultivation of cannabis shall not interfere with the primary occupancy of the building or structure, including regular use of kitchen(s) or bathroom(s). iv. The use of generators to power any cultivation equipment is prohibited. v. All property improvements, if any, shall comply with the California Building, Electrical and Fire Codes as adopted by the City. vi. Any fully enclosed and secure structure or residence used for cannabis cultivation shall have a ventilation and filtration system installed that shall prevent cannabis plant odors from exiting the interior of the structure and that shall comply with the Building Code adopted by the City. vii. No exterior evidence of cannabis cultivation occurring at the property shall be discernable from the public right-of-way. viii. Nothing in this section is intended, nor shall it be construed, to preclude any landlord from limiting or prohibiting personal cultivation of cannabis by tenants. Public Review Draft - Page 8 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 171 18 19 20 21 22 23 24 25 26 27 28 ix. Nothing in this section is intended, nor shall it be construed, to authorize commercial cultivation of cannabis. x. Nothing in this section is intended, nor shall it be construed, to authorize any public or private nuisance as specified in this Code. xi. The cultivation area shall be in a locked space inaccessible to minors, visitors, vandals, or anyone not authorized to possess cannabis. 7. The area of cultivation shall not adversely affect the health or safety of the occupants of the private residence or the parcel or any other property by creating dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, mold, or other impacts, and shall not be maintained as to constitute a hazard due to use or storage of materials, processes, products or wastes. 8. Cultivation shall not occur within any private residential dwelling containing a day care center, as defined in Chapter 5.10 of this Code. B. Outdoor cannabis cultivation is prohibited within all zoning districts. 8.99.050 Violations Declared a Public Nuisance Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a public nuisance and may be summarily abated by the City Manager, Chief of Police, or designee of either of them. The City may recover any nuisance abatement costs and/or administrative fines relating to such violations in accordance with Government Code Sections 38773.1 and 38773.5 in accordance with Chapter 8.30 of this Code. j 8.99.060 Each Violation a Separate Offense 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 City of San Bernardino. Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive relief, disgorgement and payment to the City for any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity. 8.99.070 Criminal Penalties Any person causing, permitting, aiding, abetting, suffering or concealing a violation of this Chapter shall be guilty of a misdemeanor, and may, in the discretion of the City Attorney, be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000) or imprisonment in the city or county jail for a period of not more than six (6) months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense. The City Attorney, in his or her sound discretion, may prosecute a violation of this Chapter as an infraction, rather Public Review Draft - Page 9 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 than a misdemeanor, or reduce or agree to the reduction of a previously filed misdemeanor to an infraction. Any person convicted of an infraction under this provisions of this Chapter shall be punished by a fine not exceeding one hundred dollars ($100) for the first violation, a fine not exceeding two hundred dollars ($200) for a second violation within one year, and a fine not exceeding five hundred dollars ($500) for a third violation within one year. A fourth violation of this Chapter within one year shall be charged as a misdemeanor and may not be reduced to an infraction. 8.99.080 Remedies Cumulative and Not Exclusive The remedies provided herein are not to be construed as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law. SECTION 4. REPEAL OF ORDINANCES All ordinances related to personal cultivation within the City of San Bernardino are hereby repealed and shall be of no further effect from the effective date of this Ordinance. SECTION 5. SPECIFIC FINDINGS The Mayor and City Council, after considering the extensive meetings of the CAC, the Planning Commission, City staff reports, reports from the City's cannabis consultant HdL, testimony from stakeholders, and public comment, make the following specific findings: (A) The Ordinance is consistent with the General Plan; (B) The Ordinance is not detrimental to the public interest, health, safety, convenience, or welfare; (C) The Ordinance would maintain the appropriate balance of land uses within the City; and (D) The subject parcel(s) are physically suitable (including, but not limited to, access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the requested land use designation(s) and the anticipated land use development(s). SECTION 6. ENVIRONMENTAL DETER 4INATION The Mayor and City Council of the City of San Bernardino, California, hereby find and determine that this Ordinance is not subject to environmental review under the California Environmental Quality Act pursuant to Title 14 of the California Code of Regulations Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in Section 15378) because it has no potential for resulting in a physical change of the environment, directly or indirectly. Public Review Draft - Page 10 I 2 V I" V 15 2( 2] 22 2? 24 25 26 27 28 SECTION 7. EFFECTIVE DATE This Ordinance shall be effective upon the thirty-first (31') day following its final ?assage by a majority vote of the Mayor and City Council. SECTION S. SEVERABILITY While it is the intent of the Mayor and City Council to adopt a regulatory system for personal cultivation of cannabis within the City of San Bernardino, if any provision of this Ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this Ordinance are severable. The Mayor and City Council declare that they would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. SECTION 9. PUBLICATION The City Clerk shall certify to the adoption of this Ordinance and shall cause this Ordinance to published as provided by State law. Public Review Draft - Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22' 23 24 25 26 27 28 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER 8.99 TO THE SAN BERNARDINO MUNICIPAL CODE ESTABLISHING REGULATIONS FOR THE PERSONAL CULTIVATION OF CANNABIS WITHIN PRIVATE RESIDENCES I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and City Council of the City of San Bernardino at a meeting thereof, held on the day of . 2018, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ BARRIOS VALDIVIA SHORETT NICKEL RICHARD MULVIHILL The foregoing Ordinance is hereby approved this Approved as to form: Gary D. Saenz, City Attorney Georgeann Hanna, CMC, City Clerk day of R. Carey Davis, Mayor City of San Bernardino Public Review Draft - Page 12 , 2018. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER 8.97 TO THE SAN BERNARDINO MUNICIPAL CODE ESTABLISHING REGULATIONS FOR THE SMOKING OF CANNABIS IN PUBLIC PLACES WHEREAS, the City of San Bernardino, California ("City") is a municipal corporation, duly organized under the Charter of the City of San Bernardino and the Constitution and laws of the State of California; and, WHEREAS, at the General Election held on November 8, 2016, California voters approved Proposition 64, commonly known as the "Control, Regulate and Tax Adult Use of Marijuana Act" ("AUMA'), making it unlawful to "...smoke or ingest cannabis or cannabis products in a public place..." (Health & Saf. Code, § 11362.3(a)(1)); and, WHEREAS, on October 18, 2017, by Resolution No. 2017-211 the Mayor and City Council directed the Citizen's Advisory Committee on Marijuana ("CAC") to discuss the issue of public consumption of cannabis and, working with City staff and the City's consultant HdL, report back to the Mayor and City Council on December 20, 2017; and, WHEREAS, the Mayor and City Council received the report from the CAC at its regular meeting on December 20, 2017, and determined there was a need for further time to adequately consider regulations on public consumption of cannabis; and, WHEREAS, on January 22, 2018, the Mayor and City Council held a public workshop to discuss, among other topics, public consumption of cannabis; and, WHEREAS, on February 1, 2018, the Mayor and City Council directed City staff to I expeditiously prepare regulations for public consumption of cannabis within the City of San Bernardino; and Public Review Draft - Pagel 1 2 3 C! 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the Mayor and City Council specifically finds that: 1. Secondhand cannabis smoke has been repeatedly identified as a health hazard; 2. `!'here is no constitutional right to smoke cannabis in public; 3. The U.S. Surgeon General found there is no risk-free level of exposure to secondhand cannabis smoke. Separating cannabis smokers from non -cannabis smokers, cleaning the air, and ventilating buildings cannot eliminate exposure of non -cannabis smokers to secondhand cannabis smoke; 4. The California Air Resources Board placed secondhand smoke in the same category as the most toxic automotive and industrial air pollutants by categorizing it as a toxic air contaminant for which there is no safe level of exposure; 5. The California Environmental Protection Agency included secondhand smoke on the Proposition 65 list of chemicals known to the State of California to cause cancer, birth defects, and other reproductive harm; 6. Exposure to secondhand cannabis smoke anywhere has negative health impacts, and exposure to secondhand cannabis smoke occurs at significant levels outdoors, as evidenced by the following: a. Levels of secondhand cannabis smoke exposure outdoors can reach levels attained indoors depending on the direction and amount of wind and number and proximity of cannabis smokers; b. Cannabis smoking near building entryways can increase air pollution levels by more than two times as compared with background levels, with maximum levels reaching the "hazardous" range on the U.S. Environmental Protection Agency Air Quality Index; and Public Review Draft - Page2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c. A person may have to move nearly 23 feet away from the source of the cannabis smoke to be completely free from exposure to secondhand cannabis smoke in outdoor places. 7. Cannabis has been found to be toxic. In addition, cannabis exposure during fetal development, a critical window for brain development, has lasting adverse consequences. Cannabis adversely affects maternal and fetal health during pregnancy, contributing to multiple adverse outcomes such as preterm delivery and stillbirth. In addition, cannabis exposure during adolescence, also a critical window for brain development, may have lasting adverse consequences; 8. Cannabis packaging is a major and persistent source of litter, and in most cases, does not biodegrade, and are often cast onto sidewalks and streets, frequently ending up in storm drains that flow into creeks, rivers, and ultimately the ocean; 9. Studies on electronic cigarettes' vapor emissions and cartridge contents have found a number of dangerous substances including chemicals known to the State of California to cause cancer, such as formaldehyde, acetaldehyde, lead, nickel, and chromium; 10. Several studies have concluded that vapor from electronic cigarettes may cause passive or secondhand inhalation of vapor by nearby people; 11. There are no studies proving that inhalation of vapor from electronic cigarettes is not harmful to health- and the long-tenn health risks of the use of electronic cigarettes on device users and nearby people remain unknown; 12. Secondhand cannabis smoke contains many of the same chemicals and carcinogens as secondhand tobacco smoke. Results from laboratory testing under standard conditions Public Review Draft - Page3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 found that secondhand cannabis smoke contained more than twice as much tar and ammonia as tobacco smoke and more than eight times as much hydrogen cyanide; and, WHEREAS, there is a need to adopt health, safety and welfare regulations to avoid adverse impacts on the City's residents that may arise from public consumption of cannabis; and, WHEREAS, the Mayor and City Council have considered the report of the CAC, City staff recommendations, the report of the City's consultant, HdL, on cannabis issues, the j viewpoints of stakeholdcrs and extensive public comment to craft this Ordinance, which Provides an effective regulatory system for public consumption of cannabis in the City, and I will address potential adverse impacts to the public health, welfare, and safety, while allowing residents to consume cannabis in a manner consistent with State law; and WHEREAS, federal law, codified at 21 U.S.C. Sections 801 et seq., entitled the "Controlled Substances Act" ("CSA") makes it unlawful to possess any controlled substances, including cannabis, which has, as a Schedule I drug under the CSA, been determined by the federal government to have a high potential for abuse and no accepted medical value in treatment; and WHEREAS, nothing in this Ordinance is intended to authorize the possession, use, or provision of cannabis for purposes that violate federal law. NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. INCORPORATION OF RECITALS The foregoing recitals set forth above are true and correct and are a substantive part of this Ordinance. Public Review Draft - Page4 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 2. AUTHORITY Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the Charter of the City of San Bernardino, and State law, including Health and Safety Code Section 11362.3(a)(1) and Business and Professions Code Section 26200, the City of San Bernardino is authorized to adopt ordinances that protect the health, safety and welfare of its residents and businesses. The adoption of reasonable regulations on public consumption of cannabis is a permissible exercise of this authority. SECTION 3. ADOPTION OF ORDINANCE Chapter 8.97 entitled "Smoking Cannabis in Public Places", of Title 8 "Health and Safety" of the San Bernardino Municipal Code is approved and shall be added to the San Bernardino Municipal Code as follows: 8.97.010 8.97.020 8.97.030 8.97.040 8.97.050 8.97.060 8.97.070 8.97.080 8.97.090 8.97.100 8.97.110 8.97.120 8.97.130 8.97.140 8.97.150 8.97.160 Chapter 8.97 SMOKING CANNABIS IN PUBLIC PLACES Purpose and Intent Applicability Definitions Prohibition of Smoking and Inhaling in Enclosed Places Prohibition of Smoking and Inhaling in Unenclosed Areas Prohibition of Smoking and Inhaling in City Vehicles and on City Campuses Smoking Distance Required Additional Smoking —Related Restrictions Other Requirements and Prohibitions Posting of Signs Interpretation Other Laws Violations Declared a Public Nuisance Each Violation a Separate Offense Criminal Penalties Remedies Cumulative and Not Exclusive 8.97.010 Purpose and Intent The purpose of this Chapter is to protect the good health and well-being of the residents of the City of San Bernardino from the documented negative effects of secondhand cannabis smoke. Smoke-free air is an important component of a healthy community. The Mayor and City Council intend to protect the public health, safety, and welfare by providing a secondhand cannabis smoke-free environment in public and private places where non - cannabis smokers may be exposed to secondhand cannabis smoke. The Mayor and City Council further intend to promote secondhand cannabis smoke-free air, recognizing the need Public Review Draft - Page5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 to breathe smoke-free air has a priority over the desire to smoke cannabis. This Chapter is not intended to interfere with a patient's right to use medicinal cannabis pursuant to State law, as may be amended, nor does it criminalize cannabis possession or use otherwise authorized by State law. 8.97.020 Applicability Nothing in this Chapter shall be construed to allow any conduct or activity relating to the cultivation, distribution, dispensing, sale, or consumption of cannabis that is otherwise illegal under local or State law. No provision of this title shall be deemed a defense or immunity to any action brought against any person by the San Bernardino County District Attorney's office, the Attorney General of the State of California or the United States of America. This Chapter shall be applicable in the incorporated areas of the City of San Bernardino and in all City buildings, whether owned, leased, or controlled by the City, and on all City campuses. 8.97.030 Definitions A. "Business" means any sole proprietorship, partnership, limited liability company, joint venture, corporation, association, or other entity formed for profit-making purposes or for nonprofit charitable, religious, philanthropic, educational, political, social, or similar purposes. A government agency is not a business within the meaning of this chapter. B. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, or any other strain or varietal of the genus Cannabis that may exist or be discovered, or developed, that has psychoactive or medical properties, whether growing or not, including but not limited to 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 California Health and Safety Code section 11018 and Business and Professions Code section 26001(f), as both may be amended from time to time. Any reference to cannabis or cannabis products shall include medical and nonmedical cannabis and medical and nonmedical cannabis products, unless otherwise specified. Cannabis or cannabis product does not mean industrial hemp as defined by Health and Safety Code section 11018.5, or the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink, or other product. 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. C. "City" means the City of San Bernardino, a Charter City in the State of California. Public Review Draft - Page6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 D. "City campus" means enclosed areas and unenclosed areas under the legal control of the City, including property that is owned, leased, or maintained by the City or governed by the Mayor and City Council. E. 'Prohibited smoking area" means a designated portion of an unenclosed area where cannabis smoking is prohibited. 1. Cannabis smoking shall be prohibited within one thousand (1,000) feet of any of the following: L Any school (k-12) regardless if it is a public, private or charter school; ii. Day care center as defined in Section 1596.76 of the Health and Safety Code; iii. Youth center as defined in Section 11353.1 of the Health and Safety Code; iv. Any library, park, bicycle paths or area in which the primary purpose is used for minors; and v. Any alcohol rehabilitation center or substance abuse facility. F. "Dining area" means any area which is available to or customarily used by the general public or an employee and which is designed, established, or regularly used for consuming food or drink. G. 'Electronic smoking device" means an electronic device that can be used to deliver an inhaled dose of cannabis, cannabis oils or other substances, including any component, part, or accessory of such a device, whether or not sold separately. "Electronic smoking device" includes any such device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, vaping pens or any other product name or descriptor. H. 'Employee" means any natural person who is employed or retained as an independent contractor by any employer in consideration for direct or indirect monetary wages or profit, or any natural person who volunteers his or her services for an employer. I. "Employer" means any business with one or more employees. J. "Enclosed area" means an area in which outside air cannot circulate freely to all parts of the area, and includes an area that has: 1. Any type of overhead cover and at least three walls or other vertical constraint to airflow; or Public Review Draft - Page7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. Four walls or other vertical constraints to airflow. K. "Person" means any natural person, business, personal representative, receiver, trustee, assignee, or any other legal entity. L. "Place of employment" means any area under the legal or de facto control of an employer that an employee or the general public may have cause to enter in the normal course of operations, regardless of the hours of operation. M. "Public place" means any place, publicly or privately owned, when being used for a public event, including but not limited to a farmers' market, parade, craft fair, festival, or any other event open to the general public. N. "Recreational area" means any area that is owned, controlled, or used by the City and open to the general public for recreational purposes, regardless of any fee or age requirement. "Recreational area" includes, but is not limited to, parks, picnic areas, playgrounds, sports fields, walking paths, gardens, hiking trails, bike paths, riding trails, swimming pools, skateboard parks, and amusement parks. "Recreational area" does not include golf courses. O. "Service area" means any publicly or privately -owned area designed to be used or is regularly used by one or more persons to receive a service, wait to receive a service, or to make a transaction, whether or not such service or transaction includes the exchange of money. "Service area" includes, but is not limited to, areas including or adjacent to information kiosks, automatic teller machines, ticket lines, bus stops or shelters, mobile vendor lines, or cab stands. P. "Smoke" means the gases, oils, particles, or vapors released into the air as a result of combustion, electrical ignition, or vaporization, when the apparent or usual purpose of the combustion, electrical ignition, or vaporization is human inhalation of the byproducts, except when the combusting or vaporizing material contains no tobacco, cannabis, cannabis oils, or nicotine and the purpose of inhalation is solely olfactory, such as smoke from incense. "Smoke" includes, but is not limited to, tobacco smoke, electronic smoking device vapors, and cannabis smoke. Q. "Smoking" means inhaling, exhaling, burning, or carrying any ignited, heated, or activated cigar, cigarette, cigarillo, pipe, hookah, electronic smoking device, or any plant product intended for human inhalation including, but not limited to, cannabis or cannabis products. R. "Cannabis concentrate" means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product's potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this Chapter. A cannabis concentrate is not considered food, as defined by Section 109935 of the Public Review Draft - Page8 1 2 3 4 5 6 7 8 9 10 11 12. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Health and Safety Code, or drug, as defined by Section 109925 of the Health and Safety Code. S. "Cannabis paraphernalia" means any item designed for the consumption, use, or preparation of cannabis or cannabis product. T. "Cannabis product" means: 1. Any product containing, made, or derived from cannabis or cannabis products that is intended for human consumption, whether smoked, heated, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including, but not limited to, cigarettes, cigars, bongs, blunts, pipes; and 2. Any electronic smoking device. Notwithstanding any provision of subparagraphs (1) and (2) to the contrary, "cannabis products" includes any component, part, or accessory of a cannabis product, whether or not sold separately. U. "Unenclosed area" means any area that is not an enclosed area. 8.97.040 Prohibition of Smoking and Inhaling in Enclosed Places The City shall enforce the California smoke-free workplace law (Labor Code Section 6404.5), which prohibits smoking in enclosed places of employment, in all areas subject to this Chapter. In addition, all cannabis smoking and the inhaling of cannabis products are prohibited in the enclosed areas of the following places: A. All businesses that are not places of employment and which have a common or shared air space with an enclosed area, such as, without limitation, openings, cracks, air ventilation systems, doorways, hallways, and stairways, in which smoking is prohibited by law. Notwithstanding any other provision of this chapter, the fact that cannabis smoke enters one enclosed area from another enclosed area is conclusive proof that the areas share a common or shared air space; B. Public places as defined in section 8.97.030(M); and C_ Any area within 50 feet of any door, window, opening, or vent, into a public place, dining area, service area, or recreational area except for such areas on private residential property. 8.97.050 Prohibition of Smoking and Inhaling in Unenclosed Areas Smoking and inhaling of cannabis products are prohibited in the unenclosed areas of the following places as defined in Section 8.97.030 above: A. Dining areas; Public Review Draft - Page9 11 2 3 4 5 6 7 8 9 10 11 12' 13 14 15 16 17 18 19 20 21 22 23' 24 25 26 27 28 B. Public places; C. Recreational areas; D. Service areas; and E. Places of employment. 8.97.060 Campuses Prohibition of Smoking and Inhaling in City Vehicles and on City A. Smoking and inhaling of cannabis products are prohibited in all vehicles leased, owned, or operated by the City or any district governed by the City. B. Smoking and the use of cannabis or cannabis products are prohibited in all enclosed areas and unenclosed areas of a City campus. 8.97.070 Smoking Distance Required A. Smoking and inhaling of cannabis in all unenclosed areas is prohibited within 25 feet from any enclosed or unenclosed areas in which smoking is prohibited. B. A private property or business owner may authorize a Designated Smoking Area in an unenclosed area of his or her private property. 18.97.080 Additional Smoking -Related Restrictions A. A person who owns, manages, operates, or otherwise controls the use of any place where cannabis smoking is prohibited by this Chapter may not knowingly or intentionally permit cannabis smoking in those places. For purposes of this section, a person has acted knowingly or intentionally if the person has not taken the following actions to prevent cannabis smoking by another person: 1. Requested that a person who is smoking refrain from cannabis smoking in the prohibited place; and 2. Requested that a person who is smoking cannabis leave the prohibited place if the person refuses to stop smoking in the prohibited place after being asked to stop. This Section does not require physically ejecting a person from a place or taking steps to prevent smoking under circumstances that would involve risk of physical harm. B. No person shall intimidate, harass, or otherwise retaliate against any person who seeks compliance with this Section. Moreover, no person shall intentionally or recklessly Public Review Draft - Page10 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 expose another person to cannabis smoke in response to that person's effort to achieve compliance with this Section. 8.97.090 Other Requirements and Prohibitions A. No employer or business doing business with the City and within the City of San Bernardino shall knowingly or intentionally permit cannabis smoking or inhaling in an area which is under the employer's or business's control and in which cannabis smoking is prohibited. B. No person shall litter or dispose of cannabis packaging or cannabis products waste within the boundaries of an area in which cannabis smoking or cannabis products is prohibited except into a waste receptacle or ash can. C. No person, employer, or business shall intimidate or threaten or effect any reprisal against another person for the purpose of retaliating against that person for seeking to obtain compliance with this chapter. 8.97.100 Posting of Signs A person, employer, or business that has legal or de facto control of an area in which cannabis smoking, or the use of cannabis products is prohibited by this chapter shall post a clear, conspicuous and unambiguous 'No Smoking and No Vaping" or "Smoke -Free" sign at each point of ingress to the area, and in at least one other conspicuous point within the area. The signs will have letters of no less than one inch in height and shall include the international "No Smoking and No Vaping" symbol (consisting of a pictorial representation of a burning cigarette, cannabis leaf and c -cigarette enclosed in a red circle with a red bar across it). Signs posted on the exterior of buildings to comply with this section shall include the reasonable distance requirement set forth in section 8.97.070. At least one sign with a City phone number (to be determined by the director of Community Development and made available on the department's website which complaints can be directed must be placed conspicuously in each place in which cannabis smoking is prohibited. The Community Development Department shall be responsible for providing appropriate signs in public facilities controlled by the City. Notwithstanding this section, the presence or absence of signs shall not be a defense to a charge of cannabis smoking or the use of cannabis products in violation of any other provision of this chapter. 8.97.110 Interpretation This chapter shall not be interpreted or construed to permit cannabis smoking where it is otherwise restricted by other applicable laws. 8.97.120 Other Laws It is not the intention of this chapter to regulate any conduct where the regulation of such conduct has been preempted by the State of California. Public Review Draft - Pagel l 2 3 4 5 6 7 8 9 10 11 121 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8.97.130 Violations Declared a Public Nuisance Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a public nuisance. 8.97.140 Each Violation a Separate Offense 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 City of San Bernardino. 8.97.150 Criminal Penalties Any person causing, permitting, aiding, abetting, suffering or concealing a violation of this Chapter shall be guilty of a infraction. Any person convicted of an infraction under this provisions of this Chapter shall be punished by a fine not exceeding one hundred dollars ($100) for the first violation, a fine not exceeding two hundred dollars ($200) for a second violation within one year, and a fine not exceeding five hundred dollars ($500) for a third and subsequent violations within one year. 8.97.160 Remedies Cumulative and Not Exclusive The remedies provided herein are not to be construed as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law or equity. SECTION 4. REPEAL OF ORDINANCES All ordinances related to personal cultivation within the City of San Bernardino are hereby repealed and shall be of no further effect from the effective date of this Ordinance. SECTION 5. SPECIFIC FINDINGS The Mayor and City Council, after considering the extensive meetings of the CAC, the Planning Commission, City staff reports, reports from the City's cannabis consultant HdL, testimony from stakeholders, and public comment, make the following specific findings: (A) The Ordinance is consistent with the General Plan; (B) The Ordinance is not detrimental to the public interest, health, safety, convenience, or welfare; (C) The Ordinance would maintain the appropriate balance of land uses within the City; and (D) The subject parcel(s) are physically suitable (including, but not limited to, access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the requested land use designation(s) and the anticipated land use development(s). Public Review Draft - Pagel2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15! 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 6. ENVIRONMENTAL DETERMINATION The Mayor and City Council of the City of San Bernardino, California, hereby find and determine that this Ordinance is not subject to environmental review under the California Environmental Quality Act pursuant to Title 14 of the California Code of Regulations Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in Section 15378) because it has no potential for resulting in a physical change of the environment, directly or indirectly. SECTION 7. EFFECTIVE DATE This Ordinance shall be effective upon the thirty-first (31S) day following its final passage by a majority vote of the Mayor and City Council. SECTION 8. SEVERABILITY While it is the intent of the Mayor and City Council to adopt a comprehensive regulatory system regarding public consumption of cannabis within the City of San Bernardino, if any provision of this Ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this Ordinance are severable. The Mayor and City Council declare that they would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. I SECTION 9. PUBLICATION The City Clerk shall certify to the adoption of this Ordinance and shall cause this Ordinance to published as provided by State law. Public Review Draft - Pagel3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26I 27 28 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER 8.97 TO THE SAN BERNARDINO MUNICIPAL CODE ESTABLISHING REGULATIONS FOR THE SMOKING OF CANNABIS IN PUBLIC PLACES I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and City Council of the City of San Bernardino at a meeting thereof, held on the day of , 2018, by the following vote, to wit: Council Members: MARQUEZ BARRIOS VALDIVIA SHORETT NICKEL RICHARD MULVIHILL AYES NAYS ABSTAIN ABSENT The foregoing Ordinance is hereby approved this Approved as to form: Gary D. Saenz, City Attorney to Georgeann Hanna, CMC, City Clerk day of , 2018. R. Carey Davis, Mayor City of San Bernardino Public Review Draft - Pagel4