Chapter 6.60
CANNABIS BUSINESSES
Sections:
6.60.010 Purpose and intent.
6.60.020 Definitions.
6.60.030 Prohibited commercial cannabis activities.
6.60.040 Permit requirements.
6.60.050 Permit application.
6.60.060 Review and action on applications.
6.60.070 Minimum criteria for issuance of a permit.
6.60.080 Operating requirements.
6.60.090 Term of permit and renewal procedure.
6.60.100 Permit suspension and revocation.
6.60.110 Expiration.
6.60.120 Transfer of permits.
6.60.130 Appeals.
6.60.140 Service of city notices.
6.60.150 Enforcement.
6.60.010 Purpose and intent.
It is the purpose and intent of this chapter to regulate commercial cannabis activities located within the city of Pleasant Hill in order to promote the health, safety, and general welfare of residents and businesses within the city. Commercial cannabis activities shall comply with all provisions of the Pleasant Hill Municipal Code, state law, and all other applicable local codes and regulations, including all applicable land use and zoning regulations imposed on cannabis activities. (Ord. 932 § 2 (Exh. A), 2019)
6.60.020 Definitions.
The definitions for commercial cannabis business uses and activities in this chapter shall be as defined in PHMC §§ 18.15.040 and 18.50.140. In addition, for purposes of this chapter, the following words and phrases whenever used in this chapter shall have the meanings defined in this section:
A. Application period shall be the time stated in the notice of availability during which the city will accept applications for commercial cannabis business permits for commercial cannabis activities.
B. Cannabis business means the actual or intended conduct of commercial cannabis activity, as defined by MAUCRSA, or of a commercial cannabis use, as defined by this code.
C. Cannabis goods means cannabis, including dried flower, cannabis products, and products containing cannabis.
D. Chief of police shall refer to the city of Pleasant Hill chief of police or the person designated by the chief of police.
E. Day shall refer to calendar days.
F. Financial interest shall have the same meaning as that term is defined in 16 California Code of Regulations, section 5004, as may be amended from time to time.
G. Manager shall mean a person can or does have or share ultimate control over the day-to-day operations of a business.
H. MAUCRSA shall mean the Medicinal and Adult-Use Cannabis Regulation and Safety Act (California Business & Professions Code, Division 10), as may be amended from time to time.
I. Medical use shall refer to cannabis goods intended to be sold for medicinal use by a qualified patient in California who possesses a physician’s recommendation pursuant to the Compassionate Use Act of 1996 (Cal. Health & Safety Code § 11362.5), the Medical Marijuana Program Act (Cal. Health & Safety Code § 11362.7 et seq.) and MAUCRSA, as each may be amended from time to time.
J. Owner shall have the same meaning as that term is defined in 16 California Code of Regulations, section 5003, as may be amended from time to time.
K. Person shall mean any natural person, partnership, cooperative, association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity.
L. Planning division means the planning division of the city of Pleasant Hill.
M. Police department means the police department of the city of Pleasant Hill. (Ord. 932 § 2 (Exh. A), 2019)
6.60.030 Prohibited commercial cannabis activities.
A. All medicinal and adult-use commercial cannabis uses or other activities requiring a state commercial cannabis license under the MAUCRSA are prohibited, except as expressly allowed by this chapter and PHMC 18.25.170.
B. The foregoing prohibition shall not apply to:
1. Conduct specified in California Business and Professions Code sections 26054(c) and (d), 26080(b), or 26090(e).
2. Cannabis delivery originating from a retailer located outside of the city, which is not prohibited or regulated by this chapter.
C. Cannabis temporary events, as provided under California Business and Professions Code section 26200, are prohibited in the city of Pleasant Hill. (Ord. 932 § 2 (Exh. A), 2019)
6.60.040 Permit requirements.
A. Any person seeking to establish or operate a medicinal cannabis business from a premises located in the city must first obtain and maintain a commercial cannabis business permit in accordance with this chapter prior to establishing and/or operating.
B. Commercial cannabis business permits may be issued to no more than two cannabis retail locations at any one time in the following activity categories, or in any combination thereof:
1. Medical-use, delivery-only retailer.
C. When the number of commercial cannabis business permit locations falls below the limit set forth above, the city manager (or his or her designee) shall post a notice of availability that the city will be accepting applications for commercial cannabis business permit(s). The notice shall include the dates during which applications will be accepted, information regarding application requirements and directions, and the contact information for questions. The notice shall be posted on the city’s website. (Ord. 932 § 2 (Exh. A), 2019)
6.60.050 Permit application.
A. All applications for a commercial cannabis business permit shall be filed with the planning division, using forms provided by the city, within the application period that is established by the city manager, and which period may be extended from time to time. It is the responsibility of the applicant to provide a complete application and all information required for approval of the permit. The application shall be made under penalty of perjury. At a minimum, each application shall contain:
1. A complete identification of the applicant including name, address and phone number to which notice of action on the application and correspondence is to be mailed;
2. A description of the statutory entity or business form that will serve as the legal structure for the applicant and a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement, and fictitious business name statement;
3. Names, residence and business addresses of each and every owner. If one or more owners is a statutory entity or other business form, the name of the entity shall be set forth exactly as shown in its formation and organizing documents together with the names, residence and business addresses of each of the owners and other persons with a financial interest in the entity;
4. The names, residence and business addresses of each and every manager;
5. The name, residence and business address of the owner of the property, who shall indicate in writing his/her/its consent to cannabis business being conducted on the property by signing the application in the space provided;
6. A complete list of every individual who has a financial interest in the commercial cannabis business, who is not an owner, as defined;
7. A site plan, floor plan, and elevations of the property where the business will operate, and indicate whether any exterior building improvements, including facade improvements or exterior signage, are proposed. If exterior building improvements or signage is proposed, then compliance with PHMC Chapters 18.60, 18.105, and 18.115 is required, and the applicant shall submit its application for any design review approval and/or sign permits concurrently with the application for the commercial cannabis business permit;
8. An operations plan for the business and the name under which it is to be operated;
9. Evidence of compliance with the California Environmental Quality Act (Cal. Pub. Res. Code § 21000 et seq.);
10. Whether or not any person referred to in subsection A.1, 3, 4, 5 or 6 of this section has had a license, permit or use permit for the same or any similar business suspended or revoked anywhere, and, if so, the circumstances of such suspension or revocation;
11. The proposed hours of operation;
12. The applicant’s certificates of automobile and general commercial liability insurance coverage and evidence of workers’ compensation insurance (if required) related to the operation of the commercial cannabis business;
13. An executed release of liability and indemnity agreement in the form set forth by the city; and
14. Such other related information or documentation consistent with this code and state law as the city manager may require.
The residential addresses required in subsections A.3, 4 and 5 of this section, as well as the name(s) of managers listed in subsection A.4 of this section, shall be kept private and not made available to the public.
B. An application shall be accompanied by an application review fee, as established by resolution of the city council from time to time. This application review fee shall not include fingerprinting, photographing, and background check costs and shall be in addition to any other business license fee or other charge imposed by this code or other governmental agencies. (Ord. 932 § 2 (Exh. A), 2019)
6.60.060 Review and action on applications.
The processing of new permit applications will include the following phases:
A. Phase 1 – Prescreening and criminal history.
1. Upon close of the application period, city staff shall review each complete application for general compliance with the city’s municipal code, and shall reject any application which does not meet such requirements or is incomplete. Rejected applications shall not be scored. The city shall also disqualify any application that contains any false or misleading information.
2. All exterior building improvements, including facade improvements and proposed signage, shall be reviewed for conformance with the city’s zoning and land use standards. If required, the applicant shall apply for any design review approval and/or sign permit necessary under PHMC Chapters 18.60, 18.105 and 18.115 concurrently with the application for the commercial cannabis business permit. The prescreening approval may be conditioned upon the applicant submitting complete application materials for design review and/or sign permits. All applications will be required to comply with environmental review pursuant to the California Environmental Quality Act (“CEQA”) (Cal. Pub. Res. Code § 21000 et seq.).
3. Each applicant shall submit to the chief of police a recent photograph of the applicant (if an individual), each owner and current or prospective manager. The applicant, owner(s) and manager(s) shall also submit fingerprints pursuant to “Livescan” procedures and pay all costs associated with such submittal. Upon receipt of the Livescan results, the chief of police shall review and report if the criminal history of the applicant, owner(s) and manager(s) satisfies the minimum criteria pursuant to PHMC § 6.60.070.
4. The applicant prescreening decisions will be made by the city manager within 60 days of the close of the application period or receipt of Livescan results, whichever is later. Only applicants who receive approval of the prescreening review may proceed to the next phase of the selection process.
B. Phase 2 – Application scoring.
1. Upon approval of the prescreening review, the city manager or designee shall refer the application to the planning commission for preliminary scoring of the application(s) and recommendation to the city council. A public hearing on a commercial cannabis business permit application(s) may be consolidated with any required hearing for design review approval and/or sign permits.
2. The city council will issue the final score on the commercial cannabis business permit application, relying only upon the written application itself, any other written city materials generated in connection with the review, and the applicant presentation and representations at the public hearing. The decision of the city council will be made at a duly noticed public hearing and may be consolidated with any required hearing for design review approval and/or sign permits.
3. The specific scoring criteria, weighting (points per criterion), minimum qualifying scores and any additional application procedures will be determined by resolution of the city council prior to the commencement of the application period and posted publicly on the city’s website.
4. If the number of applicants who receive minimum qualifying scores at Phase 2 exceeds the maximum number of permits available, then applicants will be selected and issued a commercial cannabis business permit based on highest score.
5. Qualified applicants that are not selected will be placed on a qualified applicant list. Applicants placed on the qualified applicant list will be notified when future applications are accepted. A qualified applicant will remain eligible for three years.
C. Issuance of a commercial cannabis business permit does not create a land use entitlement. Furthermore, no permittee may begin operations, notwithstanding the issuance of a permit, until all of the state and local laws and regulations, including but not limited to the requirements of this chapter and of the permit, have been complied with and the city verifies such compliance. The issuance of a commercial cannabis business permit does not excuse compliance with any other requirement in the zoning ordinance or building code. Any additional permits required may be obtained after the business permit is issued but before operation.
D. The city reserves the discretion to not grant any applications in the interest of the health, safety, or general welfare of the city. (Ord. 932 § 2 (Exh. A), 2019)
6.60.070 Minimum criteria for issuance of a permit.
A. The applicant, each owner, and any existing or prospective manager must be at least 21 years of age.
B. The applicant, each owner, and any existing or prospective manager must not have had a similar type of license or permit previously revoked or denied for good cause within the immediately preceding two years prior to the permit application.
C. Neither the applicant, any owner, nor any proposed or prospective manager shall have been convicted of:
1. Any offense relating to possession, manufacture, sales, or distribution of a controlled substance, with the exception of cannabis-related offenses;
2. Any offense involving the use of force or violence upon the person of another;
3. Any offense involving theft, fraud, dishonesty or deceit;
4. Any offense involving sales of cannabis to a minor or use of a minor to distribute cannabis;
5. Any common law felony.
For purposes of this subsection C, a conviction includes a plea or verdict of guilty or a conviction following a plea of nolo contendere. The above criteria are in addition to any applicable provisions of state law. (Ord. 932 § 2 (Exh. A), 2019)
6.60.080 Operating requirements.
A. State and local licenses. The permittee shall obtain and maintain a state commercial cannabis license for the equivalent state cannabis commercial activity. The permittee shall obtain and maintain all other required state and local licenses, permits, or approvals as required.
B. MAUCRSA compliance. The permittee shall meet all operating requirements of the MAUCRSA, and any regulations promulgated thereunder.
C. Criminal history. No permittee, its owners, managers, employees, or volunteer workers shall have been convicted of an offense listed in PHMC § 6.60.070.C.
D. The permittee shall ensure that its operations conform to the following requirements in addition to the state regulations, which shall include:
1. Signage and notices.
a. All signage shall meet the city zoning code’s sign requirements.
b. A notice shall be clearly and legibly posted in the business premises indicating that smoking, ingesting or consuming cannabis on the premises is prohibited.
c. Signs on the premises shall not obstruct the entrance or windows in any amount.
d. Address identification shall comply with fire department illuminated address signs requirements.
2. Entrances. The primary entrance shall be located and maintained free of barriers, landscaping and similar obstructions so that it is visible from public streets, sidewalks or driveways.
3. Records. A current register of all employees and volunteer workers shall be maintained.
4. Odor control. An odor-absorbing ventilation and exhaust system shall be installed so that odor generated inside the business is not detected outside the property lines or lease area boundaries, or anywhere on adjacent property or public rights-of-way, or within any other unit located within the same building as the cannabis business.
5. Consumption. Cannabis and cannabis products shall not be consumed (whether eaten, smoked, vaporized, applied or other method of ingestion) on the premises of the cannabis business, including parking areas, or in a delivery vehicle.
6. Operating hours. A permittee may operate between the hours of 9:00 a.m. to 9:00 p.m., up to seven days a week.
7. Display of permit. Each commercial cannabis business permit shall be prominently displayed at the business premises in a location readily visible to city officials, such as a lobby or entryway, and on any business website or advertisement.
8. Contact person. A permittee shall provide the city with the name and phone number of an on-site community relations staff person or designee to whom one can provide notice if there are operating concerns. The permittee shall make every good faith effort to encourage neighborhood residents to call this person to try to solve operating concerns before any calls or complaints are made to the city.
9. State license application. The permittee shall submit to the planning division, within seven days of submission to the state cannabis licensing authority, a copy of any state commercial cannabis license application, renewal application and/or any business modification request or notification submitted to the state licensing authority (for retail, the Bureau of Cannabis Control) related to the permitted business.
10. Inspections. The city of Pleasant Hill code enforcement and police departments shall have the right, without warrant, to inspect the premises for which the permit was obtained on the following conditions:
a. The scope of the inspection is limited to determining compliance with this chapter;
b. The inspection shall be conducted not more often than once every six months, except in the event of a complaint by a member of the public;
c. The inspection shall be conducted during regular business hours; and
d. The inspection shall be conducted at a time and in a manner that will minimize business interruption.
11. State and local law compliance. The permittee shall comply with all state and local laws, rules and regulations, including payment of all applicable fees and taxes and payment of any future-adopted cannabis taxes.
12. Notification of state and local law violations. A permittee shall immediately report to the chief of police any of the following:
a. Arrests of any employees, directors, managers, owners or volunteer workers for an offense other than a misdemeanor traffic offense.
b. Any disciplinary action taken by a state licensing authority regarding the permittee’s state commercial cannabis license and submit a copy of any notice or order.
c. The occurrence of any event that constitutes a violation of this chapter or state law related to the conduct of the commercial cannabis business.
13. The permittee shall be responsible for all violations of this chapter and MAUCRSA or its implementing regulations, whether committed by the permittee, its owners, or any employee, volunteer worker, director, manager or other agent of the permittee, for violations that occur in or about the premises of the commercial cannabis business whether or not said violations occur within the permit holder’s presence. (Ord. 932 § 2 (Exh. A), 2019)
6.60.090 Term of permit and renewal procedure.
A. Permits issued under this chapter shall be valid for 12 months from the date of issuance. The permit may be renewed annually.
B. Permits may be renewed by the city manager unless the permit is suspended or revoked in accordance with the provisions of this chapter or if the application for renewal fails to comply with the provisions of this chapter.
C. Applications for renewal shall be made at least 60 days before the expiration date of the permit and shall be accompanied by the nonrefundable application review fee. Applications for renewal shall be acted upon by the city manager and the city manager shall notify the permittee within 60 days of his or her decision. Applications for renewal made less than 60 days before the annual expiration date shall not stay the expiration date of the permit.
D. A permittee shall be responsible for paying an annual permit fee, as established by resolution of the city council from time to time. This deposit shall cover the full cost borne by the city to administer the permit program and all responsibilities established in this chapter. (Ord. 932 § 2 (Exh. A), 2019)
6.60.100 Permit suspension and revocation.
A. The city manager may suspend or revoke a commercial cannabis business permit if any of the conditions identified in this section exist. On determining that grounds for permit suspension or revocation exist, the city manager shall serve the permittee with written notice of the proposed suspension or revocation. The notice shall state the ground or grounds upon which the decision is based, the effective date of the decision, the right of the permittee to appeal the decision to the city council, and that the city manager’s decision will be final if no written appeal is timely submitted to the city in accordance with PHMC § 6.60.130. The notice is effective within 15 days from the date of service of the notice. If an appeal is timely and properly filed, then the effective date of the notice is stayed.
B. A permittee is subject to suspension or revocation of the permit, or subject to other appropriate disciplinary action, for any of the following causes arising from the acts or omissions of the permittee, or an employee, volunteer worker, agent, owner, director or manager of a commercial cannabis business:
1. The permittee has made a false, misleading or fraudulent statement or omission of facts in the application for a permit, or in any report or record required to be filed with the city.
2. The commercial cannabis business has been operated as a nuisance, as defined in Pleasant Hill Municipal Code or as defined in state law.
3. A violation of any provision of this chapter, or any other provision of the municipal code.
4. There has been one or more violations of state law, including but not limited to violations of MAUCRSA or its implementing regulations.
C. Upon revocation, no new permit may be issued for the applicant or any other business entity in which the applicant is a partner or owner of 10% or more of the business for a period of five years from the date of revocation. (Ord. 932 § 2 (Exh. A), 2019)
6.60.110 Expiration.
A permit shall expire if not in active use for a period of six months at any time after the date of issuance. “Active use” means conducting the commercial cannabis activity authorized by the permit following receipt of a certificate of occupancy, if required. This period may be extended if the permit has applied for a state commercial cannabis license that has been delayed through no fault of the permittee. Expired permits may not be renewed but the permit holder may apply again when a permit vacancy occurs. (Ord. 932 § 2 (Exh. A), 2019)
6.60.120 Transfer of permits.
A commercial cannabis business permit issued under this chapter is valid only as to the permittee and approved site, and is therefore nontransferable to other persons or locations. A commercial cannabis business permit is not property and has no value. A commercial cannabis business permit may not be transferred, sold, assigned or bequeathed expressly or by operation by law. Any attempt to directly or indirectly transfer a commercial cannabis business permit shall be deemed to constitute a voluntary surrender of such permit and such permit shall therefore be automatically rendered null and void. Except, however, if the permittee is a partnership, corporation, limited liability company or other entity, and one or more of the owners should die, one or more of the surviving owners may acquire, by purchase or otherwise, the interest of the deceased owner without effecting a surrender or termination of such permit and in each case the permittee shall thereafter be deemed to be the surviving owner(s). Additionally, a commercial cannabis business permit may be endorsed to add an additional owner, provided such prospective new owner satisfies the requirements for applicants, including, but not limited to, a criminal history check and the qualifications listed in PHMC § 6.60.070, as approved by the city manager. (Ord. 932 § 2 (Exh. A), 2019)
6.60.130 Appeals.
A. Within 15 days after the date of service of a decision of the city manager to revoke, suspend, deny renewal of a permit, or deny prescreening review, the permittee or applicant may appeal such action by filing a written appeal with the city clerk.
B. The notice of appeal shall be in writing and signed by the person making the appeal, or his or her legal representative, and shall contain the following:
1. The name, address, telephone number of the appellant.
2. A true and correct copy of the notice of the decision issued by the city manager from which the appellant is appealing.
3. A specific statement of the reasons and grounds for making the appeal in sufficient detail to enable the city council to understand the nature of the controversy, the basis of the appeal, and the relief requested, not to exceed five pages.
4. All documents or other evidence pertinent to the appeal that the appellant requests the city council to consider at the hearing.
C. At the time of filing the appellant shall pay the designated appeal fee established by resolution of the city council from time to time.
D. Failure of the city clerk to receive a timely and proper appeal, or the requisite fee, constitutes a waiver of the right to appeal the decision of the city manager and a failure to exhaust all administrative remedies. In this event, the city manager’s decision is final and binding.
E. In the event a notice of appeal is timely filed, the city manager’s decision is stayed until a final order has been rendered and issued by the city council. If a notice of appeal is not timely filed, in the event of a decision of nonrenewal, the permit expires at the conclusion of the term of the permit, and in the event of a suspension or revocation, the suspension of revocation is effective upon the expiration of the period for filing a written notice of appeal.
F. Upon receipt of a timely notice of appeal, the city clerk shall set the matter for a hearing before the city council. The city council shall preside over the hearing on appeal, hear the matter de novo and conduct the hearing pursuant to the procedures set forth by the city. The city manager bears the burden of proof to establish the grounds for his or her decision by a preponderance of the evidence. The issuance of the city manager’s decision constitutes prima facie evidence of grounds for the nonrenewal, suspension, or revocation.
G. The appeal shall be held within a reasonable time after the filing of the notice of appeal, but in no event later than 90 days from the date of such filing. The city shall notify the appellant in writing of the date, time and location of the hearing at least 10 days prior to the date of the hearing.
H. At the hearing the appellant may present witnesses and evidence relevant to the decision appealed. Appeal hearings are informal, and the formal rules of evidence and discovery applicable in a court of law shall not apply to the hearing. However, rules of privilege shall be applicable to the extent they are permitted by law, and irrelevant, immaterial and repetitious evidence may be excluded.
I. After the conclusion of the appeal hearing, the city council shall determine if any grounds exist for the city manager’s decision.
1. If the city council determines that no facts exist to support the city manager’s decision, the city manager’s notice of decision shall be deemed canceled.
2. If the city council determines that any facts exist to support the city manager’s notice of decision, the decision shall be upheld.
The city council shall issue a written final order. The decision of the city council shall be final and shall be served on the appellant. The decision shall contain the following statement:
The decision of the City Council is final and binding. Judicial review of this decision is subject to the time limits set forth in California Code of Civil Procedure section 1094.6.
(Ord. 932 § 2 (Exh. A), 2019)
6.60.140 Service of city notices.
Except as otherwise expressly required by a provision of this chapter, any notice required by this chapter may be served by personal delivery to any applicant or permittee, or by first class mail. The date of service shall be the date it is personally delivered or placed in a U.S. Postal Service receptacle. Any notice issued to any applicant or permittee may be sent to the mailing address as listed on the application submitted to the city. Failure of any applicant or permittee to receive a properly addressed notice by mail shall not invalidate any action, decision, determination or proceeding under this chapter. (Ord. 932 § 2 (Exh. A), 2019)
6.60.150 Enforcement.
A. It is unlawful for any person to violate any provision or fail to comply with any of the requirements of this chapter. A failure to obtain a commercial cannabis permit required by this chapter shall be punishable in accordance with the Pleasant Hill Municipal Code and state law.
B. All remedies prescribed under this chapter shall be cumulative and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof.
C. Any person that violates any provision of this chapter shall be guilty of a separate offense for each and every day during any portion of which any such person commits, continues, permits, or causes a violation thereof, and shall be penalized accordingly.
D. Any use or condition caused or permitted to exist in violation of any of the provisions of this chapter shall be and is declared a public nuisance and may be summarily abated by the city.
E. The violation of any provision of this chapter shall be and is declared to be contrary to the public interest and shall, at the discretion of city manager, create causes of action, including, but not limited to, for injunctive relief.
F. In addition to the civil and administrative remedies set forth above, any person that violates the provisions of this chapter may be subject to administrative penalties as set forth by PHMC Chapter 1.35. (Ord. 932 § 2 (Exh. A), 2019)