Chapter 8.10


8.10.010    Purpose.

8.10.020    Definitions.

8.10.030    Prohibited activities.

8.10.040    Cannabis testing laboratories permitted.

8.10.050    State cannabis testing laboratory license required.

8.10.060    Cannabis testing laboratory business license required.

8.10.070    Requirements for cannabis testing laboratories.

8.10.080    Personal cannabis.

8.10.090    Enforcement.

8.10.100    Severability.

8.10.010 Purpose.

Proposition 64, or the “Control, Regulate, and Tax Adult Use of Marijuana Act” (AUMA), took effect on November 9, 2016, and made it legal for persons twenty-one years of age or older to smoke or ingest marijuana or marijuana products; possess, process, transport, purchase, obtain or give away to persons of twenty-one years of age or older twenty-eight and one-half grams of marijuana or eight grams of concentrated marijuana; and possess, plant, cultivate, harvest, dry or process up to six living marijuana plants for personal use. Senate Bill 94 took effect on June 27, 2017, and blended the nonmedical marijuana regulations in the AUMA with the regulations in the Medical Cannabis Regulation and Safety Act, to create the “Medicinal and Adult-Use Cannabis Regulation and Safety Act” (MAUCRSA). Pursuant to these laws, local agencies may impose reasonable regulations on indoor cultivation, and regulate or ban outdoor cultivation and other cannabis-related activities. The purpose of this chapter is to prohibit outdoor cultivation and commercial cannabis businesses, except for state-licensed testing laboratories, to protect the health, safety and welfare of the city. (Ord. 616 § 2 (part), 2018)

8.10.020 Definitions.

The following words and terms as used in this chapter shall have the following meaning:

A.    “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” 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 title, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.

B.    “Commercial cannabis activity” means cannabis business or activity licensed under the California Business and Professions Code, Division 10, Cannabis, Section 26000 et seq. (as amended from time to time), including cultivation, possession, manufacture, distribution, processing, storing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, and any other activities which may be licensed, except cannabis testing laboratories, which are expressly not included in this definition. “Commercial cannabis activity” includes medical cannabis dispensaries. “Commercial cannabis activity” does not include personal uses allowed by Health and Safety Code Sections 11362.1 and 11362.2 or personal medicinal uses allowed by Sections 11362.765 and 11362.77, as amended from time to time.

C.    “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

D.    “Medical cannabis dispensary” is a facility, whether mobile or fixed, where cannabis is made available for medicinal purposes in accordance with any provision of state law that authorizes the use of cannabis for medicinal purposes.

E.    “Cannabis testing laboratory” means a facility, entity or site that offers or performs tests of cannabis or cannabis products, and which has obtained a Type 8 license from the state, in accordance and in compliance with licensing requirements set forth in the Business and Professions Code. (Ord. 616 § 2 (part), 2018)

8.10.030 Prohibited activities.

A.    Prohibition of Commercial Activities and Cultivation. All commercial cannabis activity and cultivation are prohibited within the city of Foster City.

B.    Exception for Qualified Delivery Services. Notwithstanding the prohibition in subsection A of this section, delivery of cannabis from a business located outside the city of Foster City is permitted subject to the terms and conditions of Business and Professions Code Section 26090, as amended from time to time. Any person or entity making deliveries pursuant to this subsection must obtain a business license from the city. This section does not permit any temporary, persistent, or fixed physical presence used for commercial cannabis activities besides delivery vehicles in the active state of making a delivery to a specific person and location.

C.    Outdoor Cultivation Prohibited. To the extent not already prohibited by this section, outdoor cannabis cultivation is expressly prohibited within the city’s jurisdiction. No person, including a qualified patient or primary caregiver, shall cultivate any amount of cannabis out of doors in the city, for any purpose, whether personal or commercial. (Ord. 616 § 2 (part), 2018)

8.10.040 Cannabis testing laboratories permitted.

Testing laboratories shall be permitted within the city, subject to compliance with zoning requirements, issuance of a cannabis testing laboratory business license, and compliance with this chapter. (Ord. 616 § 2 (part), 2018)

8.10.050 State cannabis testing laboratory license required.

It shall be unlawful for any cannabis testing laboratory to operate within the city unless that facility has obtained and maintains, in full force and effect, a testing laboratory license from the Bureau of Cannabis Control. A copy of the license shall be kept on the premises at all times, and a copy of the license shall be filed with the city. (Ord. 616 § 2 (part), 2018)

8.10.060 Cannabis testing laboratory business license required.

A.    Application. Cannabis testing laboratory businesses shall apply for and furnish the information necessary to obtain a business license as required by Chapter 5.04. No cannabis testing laboratory business license shall be issued until zoning clearance is obtained. The cannabis testing laboratory business license shall be issued once a complete application for a license is properly submitted, and all other conditions of this section are satisfied.

B.    Required Information. An application for a cannabis testing laboratory business license shall include all the information required by the state of California cannabis testing laboratory application:

C.    Fees. The filing of an initial application and/or application for renewal of a cannabis testing laboratory business license shall be accompanied by payment of such fees as the city council may establish to recover cost of administration and enforcement of this chapter. Such fees are nonrefundable. Applicants and licensees are responsible for the costs of inspections, investigations, and any other activity required pursuant to this chapter. All fees and costs specified by this chapter shall be established by resolution of the city council and may be amended from time to time.

D.    Issuance. Before issuance of the cannabis testing laboratory business license, the foregoing documentation shall be reviewed and approved by the chief of police or designee. Upon approval and zoning clearance, city shall issue a cannabis testing laboratory business license, which shall enable applicant to commence operations. A cannabis testing laboratory business license shall be valid for one year from the date of issuance. No reapplication will be accepted within one year after an application or renewal is denied or a license is revoked.

E.    Amendment. A testing laboratory business shall apply to the city to amend its business registration within thirty days after any change in the information listed in the application.

F.    Renewal. A testing laboratory shall apply to the city to renew its cannabis testing laboratory business license at least thirty days prior to the expiration. If an application for renewal and all required information are not timely received and the license expires, no right or privilege to operate a testing laboratory shall exist.

G.    Suspension or Revocation. A cannabis testing laboratory’s business license may be suspended or revoked by the tax collector for any act that violates any provision of this section, or any city or state law, statute, rule or regulation relating to the testing laboratory business’s permitted activity. Any appeal related to a suspension or revocation or restriction shall be conducted in accordance with Section 1.04.110. (Ord. 616 § 2 (part), 2018)

8.10.070 Requirements for cannabis testing laboratories.

A.    Additional Business License Requirements.

1.    A cannabis testing laboratory business license shall not be issued to an individual or a business entity associated with an individual who has violated the provisions of California Health and Safety Code Section 11590.

2.    A cannabis testing laboratory business license shall be issued to the specific person or persons listed on the application.

3.    A cannabis testing laboratory business license is not transferable and does not run with the land or with the business. Any change to the business location, organizational structure, or ownership requires a new application with associated fees.

4.    A licensed testing laboratory shall comply with all state and local regulations.

5.    The testing laboratory shall maintain all certifications required by the state.

6.    A licensed testing laboratory business, its owners, and employees may not hold an interest in any other cannabis business except another testing business.

7.    Inspections by the city fire chief or designee may be conducted any time during the business’s regular business hours.

B.    Maintenance of Records and Reporting. All records of the following activities shall be maintained and available to the city for at least seven years. Records shall be produced within twenty-four hours of a request by an authorized city representative. Records shall be kept in a manner that allows the records to be produced for the city in either hard copy or electronic form, whichever the city requests.

1.    Financial records, including, but not limited to: bank statements; transaction invoices; receipts; tax records; audits; and all records required by the California State Board of Equalization, other state of California agencies, the city, and other local agencies.

2.    Personnel records, including each employee’s full name, social security or individual taxpayer identification number, date of beginning employment, confirmation of background check or Live Scan completion, and date of termination of employment, if applicable.

3.    Training records, including, but not limited to, the content of the training provided and the names of the employees that received the training.

4.    Contracts with other licensees regarding commercial cannabis activity.

5.    Permits, licenses, and certifications to conduct the testing laboratory.

7.    Proof of liability and workers’ compensation insurance.

8.    Limited access area logs and copies of current versions of any applicable plans and procedures required by state or local licensing authorities.

C.    Operational Standards for Cannabis Testing Laboratories.

1.    Interior and exterior locations of the business property shall be monitored at all times by closed circuit cameras for security purposes. The cameras and recording system shall be of adequate quality, color rendition and resolution to allow the sufficient identification of any individual committing a crime on the location premises. Cameras shall record twenty-four hours a day at a minimum of twenty frames per second.

2.    The surveillance system storage device or cameras shall be transmission control protocol/TCP capable of being accessed through the internet by the local law enforcement. The business shall also provide the local law enforcement with the URL address of any on-site web-based video surveillance to monitor remotely at any time without a warrant, subpoena or court order.

3.    All controlled access areas, security rooms, and points of ingress/egress to limited access areas shall have fixed camera coverage capable of identifying activity occurring within a minimum of twenty feet. Camera video recordings shall be maintained unaltered in a secure location for a period of not less than thirty calendar days and be available for inspection at any time.

4.    Recorded images shall clearly and accurately display the time and date. Recordings shall be maintained, unaltered, for a period of not less than thirty calendar days and shall be stored digitally. The city or law enforcement may request the recordings in connection with an investigation. If the recordings are not voluntarily provided, the city or law enforcement may seek a warrant or court order for the recordings.

5.    Testing laboratories shall create and maintain an active account within the state’s track and trace system prior to commencing any activity. In the event of system failure, the business shall keep a hard copy record and transfer the information to the track and trace system within twenty-four hours of the system being available.

6.    No testing facility may be located within a six-hundred-foot radius from a school, day care home, recreational center, youth center, library, or public park as required by Section 11362.768 of the California Health and Safety Code.

7.    All agents, employees, or persons acting for a licensee shall complete a Live Scan background check.

8.    The testing laboratory shall have a centrally monitored fire and burglar alarm system that shall include all perimeter entry points and perimeter windows.

9.    The business licensee shall ensure a licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system. The alarm company shall obtain a city business registration.

10.    During nonbusiness hours, cannabis shall be secured using a lockable storage system approved by local law enforcement.

D.    Insurance Requirements and Indemnity.

1.    The licensee shall maintain comprehensive general liability and workers’ compensation insurance in amounts and of the types consistent with the requirements set forth by the city council from time to time in the master insurance and indemnity requirements schedule. The city of Foster City shall be named as additional insured on all city-required policies.

2.    Licensee shall be subject to the indemnity and defense obligations as described in the master insurance and indemnity requirements schedule. (Ord. 632 § 4, 2020; Ord. 616 § 2 (part), 2018)

8.10.080 Personal cannabis.

A.    It is not a violation of Section 8.10.030(A) for a person twenty-one years or older to possess, plant, cultivate, harvest, dry, or process (indoors only) not more than six living cannabis plants and possess the cannabis produced by the plants, in compliance with Health and Safety Code Section 11362.2, subdivision (a), and the following local requirements:

1.    Odor from cultivation must not be detectable outside of the private residence in which it is cultivated.

2.    Cultivation must comply with and not contribute to violation of the State Housing Law and the California Buildings Standards Codes as locally adopted and amended, the regulations for existing buildings in California Code of Regulations, Title 25, and city property maintenance standards applicable to residential property.

3.    Cultivation must at all times be a secondary use to an occupied private residence.

B.    It is not a violation of Section 8.10.030(A) for a person described in Health and Safety Code Section 11362.1, subdivision (a), to engage in the conduct described in Section 11362.1, subdivisions (a)(1) through (5).

C.    This section is inoperative if Health and Safety Code Section 11362.1, subdivision (a), is preempted by federal law or is otherwise unconstitutional. (Ord. 616 § 2 (part), 2018)

8.10.090 Enforcement.

The city may enforce this chapter and its regulations in any manner permitted by law, and is entitled to recover all costs, including attorney fees, related to enforcement. The violation of this chapter is hereby declared to be a public nuisance and shall, at the discretion of the city, create a cause of action for injunctive relief. (Ord. 616 § 2 (part), 2018)

8.10.100 Severability.

If any portion of this chapter is held to be invalid, unconstitutional, or unenforceable by a court of competent jurisdiction, that decision will not affect the validity of the remaining portions of this code. The city council declares that this chapter and each portion would have been adopted without regard to whether any portion of this chapter would be later declared invalid, unconstitutional, or unenforceable. (Ord. 616 § 2 (part), 2018)