Chapter 11.100
CANNABIS

Sections:

11.100.010    Statement of purpose.

11.100.020    Relationship to other laws.

11.100.030    Definitions.

11.100.040    Local license in addition to business license or other permit.

11.100.050    Local license required.

11.100.060    Local license application process.

11.100.070    Conditions of approval, administrative rules.

11.100.080    Changes and modifications of local licenses.

11.100.090    Renewal of local license.

11.100.100    Cannabis business operational requirements.

11.100.110    Limitations on city’s liability.

11.100.120    Inspections.

11.100.130    Enforcement – Suspension and revocation of license.

11.100.140    Residential cannabis cultivation.

11.100.150    Consumption of cannabis.

11.100.160    Exceptions.

11.100.010 Statement of purpose.

(a) This chapter shall provide for the regulation and licensing of medicinal and adult-use cannabis businesses throughout the city in conformance with applicable state and local laws and regulations pertaining to medicinal and adult-use cannabis.

(b) The city council finds that it is necessary for the city to adopt local licensing standards for medicinal and adult-use cannabis businesses for the purpose of controlling and regulating the sale of medicinal cannabis and medicinal cannabis products to qualified patients, and adult-use cannabis and adult-use cannabis products to adults 21 years of age and over.

(c) The purpose of this chapter is to regulate all commercial cannabis activity in the city, as defined in the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), to the extent authorized by state law and in a manner designed to minimize negative impacts on the city and neighboring uses, and promote the health, safety and general welfare of residents and businesses within the city. [Ord. 23-018 § 3, 2023; Ord. 21-003 § 3, 2021; Ord. 20-022 § 3, 2020; Ord. 17-022 § 2, 2017].

11.100.020 Relationship to other laws.

(a) Except as otherwise specifically provided herein, this chapter incorporates the requirements and procedures set forth in MAUCRSA. In the event of any conflict between the provisions of this chapter and the provisions of MAUCRSA or any other applicable state or local law or regulation, the more restrictive provision shall control.

(b) Except as expressly stated herein, cannabis businesses must comply with all other city codes and regulations. Nothing in this chapter shall be construed as permitting a cannabis business to operate at any time in a manner that is in violation of other applicable state and local laws. [Ord. 23-018 § 3, 2023].

11.100.030 Definitions.

Unless otherwise defined herein, the terms in this chapter shall have the same meaning as set forth in MAUCRSA and any rules promulgated pursuant thereto. In addition, the following terms shall be defined as follows:

“Adult-use cannabis” means cannabis and cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician’s recommendation, or are intended for use on, or consumption by, animals.

“Cannabis business” means any person engaged in commercial cannabis activity.

“City” means Pacific Grove, California.

“City manager” shall mean the city manager of the city or their designee.

“Identification card” or “ID card” means a valid identification card issued pursuant to Section 11362.7 et seq., of the California Health and Safety Code.

“Identification card holder” or “ID card holder” means an individual who is a qualified patient who has applied for and received a valid ID card pursuant to Article 2.5 of Chapter 6 of Division 10 of the California Health and Safety Code.

“Licensed premises” means a premises for which a local license has been issued pursuant to this chapter.

“Licensee” means a person who has been issued a local license pursuant to this chapter.

“Local license” means a license issued pursuant to this chapter. A “provisional local license” is a local license issued to a storefront retail cannabis business that has not secured a use permit for a location to operate their storefront retail business.

“Medicinal and Adult-Use Cannabis Regulation and Safety Act” or “MAUCRSA” means Division 10 of the California Business and Professions Code.

“Medicinal cannabis” means cannabis and cannabis products that are intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation.

“Medicinal cannabis patient” means both a qualified patient without an identification card and an ID card holder.

“Owner” shall have the definition provided in MAUCRSA, as it may be amended from time to time, which as of the date of the adoption of this definition 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 chief executive officer 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.

“Physician,” as used in this chapter, shall mean an individual who possesses a license in good standing to practice medicine or osteopathy from the state of California.

“Qualified patient” shall have the meaning set forth in Section 11362.7(f) of the California Health and Safety Code.

“Retail, delivery-only” shall mean a cannabis business that does not allow on-site sales of cannabis to customers, and has or will have a Type 9 license from the California Department of Cannabis Control.

“Retail, storefront” shall mean a cannabis business that has a physical location from which cannabis is sold to retail customers on site, and has or will have a Type 10 license from the California Department of Cannabis Control.

“State law(s)” shall mean and include California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.85 (Medicinal Marijuana Program Act); the MAUCRSA, and all other applicable laws and regulations of the state of California.

“State license” means a state license issued under MAUCRSA, and includes both an A-license and an M-license, as well as a testing laboratory license.

“State licensing authority” shall mean the state agency responsible for the issuance, renewal, or reinstatement of a state license, or the state agency authorized to take disciplinary action against a state licensee. [Ord. 23-018 § 3, 2023; Ord. 21-003 § 4, 2021; Ord. 20-022 § 4, 2020; Ord. 17-022 § 2, 2017. Formerly 11.100.020].

11.100.040 Local license in addition to business license or other permit.

The local license required by this chapter shall be in addition and supplemental to any other business registration or any permit required by any ordinance of the city. [Ord. 23-018 § 3, 2023].

11.100.050 Local license required.

(a) It is unlawful to operate any cannabis business in the city without first having obtained a local license under this chapter.

(b) The city shall not grant a license to any cannabis business proposing to engage in cannabis cultivation, manufacturing, distribution, or laboratory testing. The city may approve a license for a cannabis business proposing to operate as a cannabis retailer subject to the following limitations:

(1) No more than one local license to engage in storefront retail sales shall be active in the city at any time.

(2) A license for delivery-only retail sales shall only be granted to a business engaging exclusively in retail sale of medicinal cannabis and medicinal cannabis products. No license shall be granted to a delivery-only retailer for the retail sale of adult-use cannabis or adult-use cannabis products.

(c) The city may grant a local license prior to the applicant having obtained a state license. A cannabis business must possess the requisite state and local licenses and a use permit prior to receiving a certificate of occupancy from the city. [Ord. 23-018 § 3, 2023].

11.100.060 Local license application process.

(a) For the single storefront retail license, there shall be an initial 60-day application period, the precise days of which shall be determined by the city manager. The city manager may open up subsequent 60-day application periods if there is no active local license for a storefront retail cannabis business in the city.

(b) An application for a local license shall be made upon the form prescribed by the city manager and accompanied by the application fee established by resolution of the city council. The application shall include the following basic information, in addition to any additional information that the city manager requests:

(1) An operating plan for the proposed cannabis business including the following information:

(A) A general description of the types of products and services to be provided by the facility;

(B) A statement confirming whether delivery service of cannabis to any location outside the premises will be provided and the extent of such service, and in the event delivery is provided, a detailed delivery plan detailing how the retailer will comply with all requirements of this chapter, MAUCRSA, and any other applicable state or local laws.

(2) Authorization for the city manager to seek verification of the information contained within the application and to conduct background checks of the owners of the cannabis business. If the background check shows that any owner has been convicted of a crime listed in Business and Professions Code Sections 26057(b)(4)(A) through (E) the application shall be denied.

(3) Proof of the nature of the cannabis business’s organizational status, such as articles of incorporation, bylaws, organizational minutes, partnership agreements, or such other documentation acceptable to the city.

(c) The city manager shall conduct an initial review of an application submitted to determine completeness. All complete applications shall be reviewed under the criteria set forth in administrative rules adopted pursuant to PGMC 11.100.070.

(d) The one storefront retail local license shall be provisionally granted to the applicant who is selected pursuant to the review and selection criteria set forth in the administrative rules. From the date the local license is provisionally approved, the applicant will have 12 months to secure approval of a use permit for a premises, in addition to any other land use permits or entitlements that may be required by this code for the premises. If the applicant who received a provisional license does not obtain the use permit or any other required land use permits or entitlements for the premises within this time frame, then the provisional license shall become null and void and a provisional license shall be granted to another applicant in the manner specified in the administrative rules.

(e) A local license issued pursuant to this chapter shall specify the date of issuance, the expiration date, the name of the licensee, and whether the cannabis business is storefront retail or delivery-only retail. A provisional local license is valid for one year from the date of issuance. A provisional local license shall automatically lose its provisional status once a use permit is granted for a premises to operate the business. The term of the license shall be valid for one year from the date the use permit for the premises is approved. [Ord. 23-018 § 3, 2023].

11.100.070 Conditions of approval, administrative rules.

(a) The city council shall have the authority to approve or deny an application for a local license. The city council may place conditions upon the approval of any local license which are, in the opinion of the city council, reasonably related to the protection of the health, safety and welfare of the general public.

(b) The city council shall establish by resolution rules, policies and procedures consistent with the intent and spirit of this chapter concerning the applications, the application process, the information required of applicants, the application procedures, and the administration and procedures to be used and followed in the application process, including but not limited to those required by PGMC 11.100.060. [Ord. 23-018 § 3, 2023].

11.100.080 Changes and modifications of local licenses.

In addition to any applicable requirements in Chapter 23.92 PGMC, the following requirements apply for transfers of or changes to the ownership of a licensee:

(a) Subsequent to the issuance of a local license, the licensee shall report any transfer of ownership in the cannabis business to the city manager on forms prescribed by the city manager and pay the application fee established by resolution of the city council.

(b) A change of ownership that solely involves a previously approved owner no longer being an owner of the cannabis business shall be reported to the city manager within 30 calendar days of the change. The city will administratively remove a previously approved owner from a license only if notarized statements are submitted by all approved owners consenting to the change, or the change is mandated by order of a court of competent jurisdiction.

(c) A change in ownership that involves adding a new owner to the previously approved ownership must be approved by the city council in advance and a background check must be conducted on the proposed new owner. The city council shall have the sole and absolute discretion to approve or deny a proposed change of ownership that involves the addition of a new owner. All owners must submit notarized statements agreeing to the addition of a new owner to the business. [Ord. 23-018 § 3, 2023].

11.100.090 Renewal of local license.

(a) A cannabis business that desires to renew its license shall apply for the renewal no less than 60 calendar days prior to the local license’s expiration date. If the cannabis business files a renewal application within 60 calendar days prior to expiration, the cannabis business must provide a written explanation detailing the circumstances surrounding the late filing. The city manager may accept or reject such late filing in its discretion. The city manager may elect to administratively continue a local license past its expiration date; provided, that the licensee has submitted a renewal application that is pending final action.

(b) An application for renewal shall be submitted on forms provided by the city manager, accompanied by the application fee established by resolution of the city council. The following information shall be submitted as a part of the renewal application:

(1) Verification that no changes to the ownership of the cannabis business have occurred since last approved by the city manager.

(2) Verification that the licensee is still entitled to the possession and use of the premises for which a use permit has been granted.

(3) Any other information that the city manager deems necessary to determine whether to renew the local license.

(c) The city council shall renew a local license if the licensee has submitted a complete application and paid the application fee, unless the city council finds that there are grounds to suspend or revoke the license as provided in PGMC 11.100.130. Notwithstanding the foregoing, the city council in its discretion may elect not to renew any local license if it determines that the licensed premises has not been used for a cannabis business, without reasonable cause as determined by the city council, during the term of the license.

(d) Unless administratively continued pursuant to subsection (a) of this section, a local license is immediately invalid upon expiration and the cannabis business shall cease operations. If a local license expires, the city council may approve a renewal of the expired license at any time up to three months from the expiration date of the license. After the license has been expired for three months, the license may not be renewed by the city council, and the holder of the expired license must apply for and obtain a new cannabis license to resume operations. [Ord. 23-018 § 3, 2023].

11.100.100 Cannabis business operational requirements.

All cannabis business must comply with the requirements set forth in this section.

(a) General Obligation to Operate in Compliance. A cannabis business shall operate in compliance with all applicable state and local laws and regulations governing cannabis businesses.

(b) General Obligation to Pay Taxes. A cannabis business must pay all applicable taxes pursuant to federal, state, and local law, including but not limited to state and local sales and use taxes and state excise taxes.

(c) Age Requirement. A cannabis business shall not allow an individual less than 21 years of age to work within the licensed premises or handle cannabis and cannabis products.

(d) Age Restrictions. A cannabis business may not permit an individual less than 21 years of age to enter, or be within, its licensed premises, except that a cannabis business with an M-license from the state may allow persons 18 years of age or older within the licensed premises if they are an ID card holder or qualified patient with physician’s recommendation from a licensed physician.

(e) Secure Storage of Product. Cannabis and cannabis products possessed by a cannabis business shall be kept and stored in a secured manner at all times.

(f) Cannabis Consumption on Licensed Premises. Smoking, vaporizing, ingesting, or otherwise consuming cannabis and cannabis products at a licensed premises is prohibited. “Licensed premises” as used in this subsection includes the actual building, as well as any accessory structures, common areas and parking areas. A sign shall be posted at each entrance to a licensed premises that clearly and legibly states:

Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises or in their vicinity is prohibited and a violation of the Pacific Grove Municipal Code.

The licensee must also comply with the sign posting requirements of PGMC 11.24.050.

(g) Prohibition on Alcohol and Tobacco Sales, Distribution, or Consumption on Licensed Premises. A cannabis business shall not sell, provide, store, or distribute any alcoholic beverages or tobacco products, or allow such products to be consumed on the licensed premises.

(h) Advertising. A cannabis business shall not advertise in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis products. It shall be unlawful for any cannabis business to make any claims that a product is safe because it is tested. All advertisements, including off-site advertising signs, shall comply with Chapter 15 of MAUCRSA.

(i) Display of License. A cannabis business shall display a copy of its local license issued pursuant to this chapter in a conspicuous place at or near the entrance to the licensed premises.

(j) No Physician Evaluations on Licensed Premises. A cannabis business shall not permit a physician to evaluate potential medicinal cannabis patients or to provide a physician’s recommendation for medicinal cannabis within its licensed premises. Cannabis businesses shall not offer or provide any form of remuneration to a physician who provides physician’s recommendations for medicinal cannabis.

(k) Community Relations Designee. A cannabis business must provide the city with the name, phone number, facsimile number, and email address of an on-site community relations representative or staff member or other representative whom the city can contact regarding operating concerns associated with the cannabis business. The cannabis business shall report any change in their community relations designee to the city within 10 calendar days.

(l) Security Requirements. The licensed premises of a cannabis business must comply with all of the following security requirements:

(1) Video Surveillance. The licensed premises must be equipped with a video surveillance system that meets all of the requirements set forth in this subsection.

(A) Security cameras and digital storage of recordings shall be maintained in good condition and used in an ongoing manner, 24 hours per day, seven days per week.

(B) The security system must maintain at least 90 days of digitally recorded video for each security camera in the licensed premises. Security footage should be stored in an MPEG4, MJPEG, H.264, or another format approved by the city manager in writing.

(C) Security cameras must provide adequate and sufficient coverage for the facility, which must include, but need not be limited to, all limited access areas, all areas of ingress and egress, point of sale, the public areas, storage areas, and any other areas as required by this chapter and the MAUCRSA.

(D) The video surveillance system must be equipped with a failure notification system that provides prompt notification to the manager of record of the licensed premises of the cannabis business of any surveillance interruption or complete failure of the surveillance system that lasts longer than 15 minutes.

(E) The video surveillance system shall have sufficient battery backup to support a minimum of 24 hours of recording in the event of a power outage.

(2) Alarm System. The licensed premises shall have an audible interior and exterior security alarm system installed on all perimeter entry points and perimeter windows, operated and monitored by a security company licensed by the Department of Consumer Affairs, Bureau of Security and Investigative Services.

(3) Signage Requirement. The licensed premises must comply with the following signage requirements:

(A) A sign shall be posted in a conspicuous place near each point of public access which shall be not less than 12 inches wide and 12 inches long, composed of letters not less than one inch in height, stating “All Activities Monitored by Video Camera.”

(B) Limited access areas shall be clearly identified by the posting of a sign which shall be not less than 12 inches wide and 12 inches long, composed of letters not less than one-half inch in height, which shall state, “Limited Access Area – Authorized Personnel Only.”

(4) Lighting. The business entrance(s) and all window areas shall be illuminated during evening hours. The cannabis business shall comply with the city’s lighting standards regarding fixture type, wattage, illumination levels, and shielding.

(5) Commercial-Grade Locks. All points of ingress and egress to a licensed premises shall ensure the use of commercial-grade, nonresidential door locks or window locks.

(6) Notification of City Manager and Law Enforcement. A cannabis business shall notify the city manager and the appropriate law enforcement authorities within 24 hours after discovering any of the following:

(A) Significant discrepancies identified during inventory;

(B) Diversion, theft, loss, or any criminal activity involving the retailer or any employee or agent of the retailer;

(C) The loss or unauthorized alteration of records related to cannabis, cannabis patients, primary caregivers, or retailer employees or agents; or

(D) Any other breach of security.

(m) Subletting Prohibited. Licensees are not authorized to sublet any portion of a licensed premises for any purpose.

(n) Recordkeeping. Cannabis businesses shall keep and maintain all records specified in Chapter 16 of the MAUCRSA and shall make the same available for inspection and examination of the city manager or their duly authorized representatives during standard business hours of the licensed facility or at any other reasonable time. Cannabis businesses are required to exercise due diligence in preserving and maintaining all required records.

(o) Transactions. Licensees shall only do business with cannabis businesses that are licensed or permitted to do business in their respective jurisdictions.

(p) Limited Hours of Operation. A retailer may only be open to the public and engage in sales between the hours of 8:00 a.m. and 10:00 p.m.

(q) Window Displays. Cannabis, cannabis products and cannabis paraphernalia shall not be placed in a window display or otherwise placed in a manner primarily intended for individuals outside of the premises to view the products.

(r) Cannabis Paraphernalia Sales. Retailers may sell or otherwise provide equipment, supplies, and paraphernalia used to consume cannabis and cannabis products.

(s) Electronic Point-of-Sale System Required. Retailers must have an electronic point of sale system. The electronic point of sale system must be capable of producing an electronic or automatic paper record for all transactions associated with any product sold, rented, or otherwise provided to the customer.

(t) No Sales of Expired Product. A retailer may not sell any expired products, cannabis or cannabis products. A retailer shall not alter, edit, or adjust in any manner an expiration date on any item or product once affixed by its manufacturer.

(u) Handling of Edible Cannabis Products. A retailer that possesses edible cannabis products shall comply with the provisions of all relevant state and local laws regarding the storage, handling, and sale of food.

(v) Delivery of Cannabis and Cannabis Products. A retailer that provides delivery service shall comply with the following requirements:

(1) The retailer shall not deliver cannabis or cannabis products to any location outside of California or to any location within California where the delivery of cannabis or cannabis products has been prohibited by the city or county.

(2) The delivery service must be approved by the city manager as a part of the licensing process. The deliveries must be conducted in accordance with any relevant state laws, this code, any applicable local laws in the delivery location, and any conditions imposed upon the license.

(3) The retailer must keep in place standard operating procedures that ensure the safety and security of those individuals engaging in delivery and the security of all cannabis being delivered, including procedures to prevent diversion.

(4) A retailer may only deliver cannabis to a specific street address requested by the purchaser. Delivery to parks, schools or any other public facilities is prohibited.

(5) Upon arrival at the delivery address and prior to transferring any cannabis or cannabis products, the delivery person must verify and confirm that the identity of the recipient is the same as the person who requested the delivery and that the person is either 21 years of age or a qualified patient or primary caregiver.

(6) A retailer shall report to the city manager and local law enforcement any vehicle accidents, diversions, losses, or other reportable incidents such as thefts or suspicious activity, that occur during transportation and delivery, within 24 hours.

(7) The delivery shall keep a delivery manifest that includes the following information:

(A) All cannabis that will be transported, accurately inventoried;

(B) Departure date and approximate time of departure;

(C) Arrival date and approximate time of arrival;

(D) Name, address, local license number and CUP number of the originating cannabis business;

(E) Name and address of the individual requesting the delivery;

(F) Delivery vehicle make, model, and license plate number; and

(G) Name and signature of the individual transporting the cannabis.

(8) Sale of Live Plants. A retailer may sell and offer for sale seeds and immature cannabis plants, but shall not sell or offer for sale live mature cannabis plants. The retailer may provide light and water to immature cannabis plants being offered for sale but may not engage in any other cultivation activity. For the purposes of this provision, an “immature cannabis plant” is defined as a nonflowering cannabis plant that is shorter and narrower than 18 inches. [Ord. 23-018 § 3, 2023].

11.100.110 Limitations on city’s liability.

To the fullest extent permitted by law, the city shall not assume any liability whatsoever, with respect to approving any local license pursuant to this chapter or the operation of any cannabis business approved for such local license pursuant to this chapter. As a condition of approval of a local license granted under this chapter, the applicant or its legal representative shall:

(a) Indemnify and hold the city harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of federal law associated with the operation of the cannabis business and delivery of cannabis as provided in this chapter; and

(b) Maintain insurance in the amounts and of the types that are acceptable to the city pursuant to guidelines and policies set forth by the city; and

(c) Name the city as an additional insured on all city-required insurance policies; and

(d) Defend, at its sole expense, any action against the city, its agents, officers, and employees related to the approval of a local license or the operation of the cannabis business; and

(e) Reimburse the city for any court costs and attorney fees that the city may be required to pay as a result of any legal challenge (or federal enforcement action) related to the city’s approval of a local license or use permit. The city may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder. [Ord. 23-018 § 3, 2023].

11.100.120 Inspections.

(a) Recordings made by security cameras at any cannabis business shall be made immediately available to the city manager upon verbal request for law or regulatory enforcement and criminal investigation purposes. Such recordings shall be considered confidential and shall not be released to the public pursuant to Government Code Section 7923.600 without the consent of the licensee.

(b) The city manager shall have the right to enter all cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter. Such inspections shall be limited to observing the licensed premises for purposes of determining whether the cannabis business is being operated or maintained in compliance with this code, state law, and other applicable laws and regulations. Any cannabis business licensed pursuant to this chapter may be required to demonstrate, upon demand by the city manager, that the source and quantity of any cannabis or cannabis products found upon the licensed premises is in full compliance with any applicable local or state law or regulation.

(c) The city manager shall have the right to inspect records of medicinal cannabis patients and primary caregivers that have made purchases of medicinal cannabis or medicinal cannabis products from a retailer for the sole purpose of determining whether any and all such individuals are qualified to make such purchases. Such inspections of records shall not be used for any other purposes, nor shall the records be removed off site by the city without a court order.

(d) The city manager may delegate an act required to be performed pursuant to this section to any code enforcement officer or official of the city, including, without limitation, the chief of police, the fire chief, the building official, the finance director, the city attorney, or any designee of such officers or officials.

(e) Applicants and licensees must cooperate with the city manager and his designees who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this chapter. [Ord. 23-018 § 3, 2023].

11.100.130 Enforcement – Suspension and revocation of license.

(a) The provisions of this chapter may be enforced by the city manager by any means provided for in Chapter 1.16 or 1.19 PGMC in addition to any and all other remedies, civil, equitable or criminal, afforded to the city under the law. Any use or condition caused, or permitted to exist, in violation of any provision of this chapter is hereby deemed to be a public nuisance and may be summarily abated by the city pursuant to Code of Civil Procedure Section 731 or by any other remedy available to the city. Any violation of this chapter is declared to be a public nuisance per se contrary to the public interest and will, at the discretion of the city, be subject to a cause of action for injunctive relief.

(b) Any violation of this chapter shall constitute a misdemeanor and 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 enforced pursuant to Chapters 1.16 and 1.19 PGMC.

(c) In addition to any other remedies available to the city under the law, a license issued under the terms of this chapter may be suspended or revoked by the city council if they conclude any of the following:

(1) The cannabis business or licensee has violated any of the requirements of this chapter, Chapter 23.92 PGMC, or the applicable use permit.

(2) The cannabis business is being operated in a manner which constitutes a nuisance.

(3) The cannabis business is being operated in a manner which conflicts with or violates state laws.

(4) A licensee’s use permit issued pursuant to Chapter 23.92 PGMC has been terminated or revoked.

(5) A licensee’s state license has been suspended, terminated, or revoked. [Ord. 23-018 § 3, 2023; Ord. 21-003 § 11, 2021; Ord. 20-022 § 11, 2020; Ord. 17-022 § 2, 2017. Formerly 11.100.080].

11.100.140 Residential cannabis cultivation.

(a) All cannabis cultivation within city limits is prohibited except that a person, 21 years of age or older, may cultivate no more than six living cannabis plants inside a private residence, regardless of the number of persons that reside in the private residence, or inside a fully enclosed and secure accessory structure to a private residence located upon the grounds of that private residence. Such cultivation shall only occur in residences and accessory structures that are fully enclosed and secured against unauthorized entry.

(b) The primary use of the property must be for a private residence, and cultivation must not prevent the property owner’s primary use as a residential use. The property shall remain at all times a private residence with a legal and functioning kitchen, bathroom(s) and bedroom(s) for their intended use and such cultivation shall not prevent the property’s primary use as a residential use. The cultivation activities shall be conducted in a manner that is child resistant.

(c) If a private residence is not occupied or inhabited by the owner of the private residence, then no persons living in the residence may cultivate cannabis without written consent signed by the owner expressly allowing cannabis cultivation to occur at the private residence.

(d) Persons cultivating cannabis in a residence shall comply with all applicable building code requirements set forth in the Pacific Grove Municipal Code.

(e) There shall be no use of gas products (CO2, butane, propane, natural gas, etc.) on the property for purposes of cannabis cultivation.

(f) All private cannabis cultivation under this section shall comply with Health and Safety Code Section 11362.2.

(g) The cannabis cultivation area shall not adversely affect the health or safety of nearby residents by creating dust, glare, heat, noise, noxious gases, odor, smoke, traffic, vibration or other impacts and shall not be hazardous due to the use or storage of materials, processes, products or wastes, or from other actions related to cultivation.

(h) The outdoor cultivation of cannabis is prohibited within city limits. [Ord. 23-018 § 3, 2023; Ord. 21-003 § 7, 2021; Ord. 20-022 § 7, 2020; Ord. 17-022 § 2, 2017. Formerly 11.100.050].

11.100.150 Consumption of cannabis.

Smoking and vaporizing of cannabis and cannabis products are prohibited in all public places and any place that is open to the public; reference Chapter 11.24 PGMC. Additionally, consumption and the use of any and all forms of cannabis, including edible cannabis product, shall be prohibited in all public places. [Ord. 23-018 § 3, 2023; Ord. 21-003 § 8, 2021; Ord. 20-022 § 8, 2020; Ord. 17-022 § 2, 2017. Formerly 11.100.060].

11.100.160 Exceptions.

(a) To the extent that the following activities are permitted by state law, nothing in this chapter shall prohibit a person 21 years of age or older from:

(1) Possessing, processing, purchasing, transporting, obtaining or giving away to persons 21 years of age or older without compensation whatsoever not more than 28.5 grams of cannabis not in the form of concentrated cannabis; or

(2) Possessing, processing, purchasing, transporting, obtaining or giving away to persons 21 years of age or older without compensation whatsoever up to eight grams of cannabis in the form of concentrated cannabis; or

(3) Possessing, smoking or ingesting cannabis or cannabis products in a manner consistent with California Health and Safety Code Section 11362.3.

(b) This chapter shall not prohibit any person from transporting cannabis through the jurisdictional limits of the city for delivery or distribution to a person located outside of the city, where such transport does not involve delivery or distribution within the jurisdictional limits of the city. [Ord. 23-018 § 3, 2023; Ord. 21-003 § 9, 2021; Ord. 20-022 § 9, 2020; Ord. 17-022 § 2, 2017. Formerly 11.100.070].