Chapter 6.56
CANNABIS BUSINESS PROGRAM

Sections:

6.56.010    Purpose.

6.56.020    Definitions.

6.56.030    State and local requirements.

6.56.040    Commercial cannabis cultivation.

6.56.050    Cannabis testing laboratory.

6.56.060    Dispensary.

6.56.070    Cannabis manufacturing business.

6.56.080    Penalties.

6.56.090    Appeals.

6.56.100    Cost recovery.

6.56.110    Severability.

6.56.010 Purpose.

A.    The purpose and intent of this chapter is to establish a cannabis business program containing a comprehensive set of regulations with regulatory permits applicable to the operation of cannabis businesses and to protect the health, safety, and welfare of the residents of the city of Patterson. It is the intent of the city to encourage responsible commercial cannabis activities and to discourage violations of related state laws, especially those that prohibit the sale, use, or distribution of cannabis and cannabis products to minors. It is not the intent of the city to expand, reduce, or alter the penalties for violations of state cannabis laws.

B.    The city finds and declares that the outdoor cultivation of cannabis can adversely affect the health, safety, and well-being of city residents by increasing the risks of criminal activity, degradation of the natural environment, and malodorous smells that may result from such activities.

C.    This chapter is not intended to conflict with federal or state law, nor is this chapter intended to answer or invite litigation over the unresolved legal questions posed by the existing conflict between state and federal law regarding the legality of cannabis. It is the intention of the city council that this chapter be interpreted to be compatible with existing federal and state enactments and in furtherance of the public purposes that those enactments encompass. (Ord. 854 § 1, 2021; Ord. 830 § 1, 2018; Ord. 806 § 1 (part), 2017).

6.56.020 Definitions.

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. “Cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.

B.    “Cannabis business” means any business engaged in commercial cannabis activity. “Cannabis business” does not include any of the following:

1.    A clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety Code.

2.    A residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the Health and Safety Code.

3.    A residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code.

4.    A residential hospice or a home health agency licensed pursuant to Chapters 8 and 8.5 of Division 2 of the Health and Safety Code.

5.    The cultivation, delivery, gift, or furnishing of cannabis by a qualified patient, a primary caregiver, or other person with an identification card as defined by Section 11362.7 of the Health and Safety Code, provided such activity complies strictly with all applicable state laws, including, but not limited to, Sections 11362.5 and 11362.765 of the Health and Safety Code.

C.    “Cannabis cultivation business” means any cannabis business that, pursuant to a Type 1, Type 1A, Type 1B, Type 1C, Type 2, Type 2A, Type 2B, Type 3, Type 3A, Type 3B, Type 4, Type 5, Type 5A, Type 5B, or Type 12 state cannabis license, cultivates cannabis or cannabis products.

D.    “Cannabis delivery business” means any cannabis business that, pursuant to a Type 10 state cannabis license, delivers, makes available, or distributes cannabis and cannabis products to a consumer.

E.    “Cannabis manufacturing business” means any cannabis business that, pursuant to a Type 6, Type 7, or Type 12 state cannabis license, manufactures cannabis or cannabis products.

F.    “Cannabis product” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

G.    “Cannabis testing laboratory” means a cannabis business that tests cannabis or cannabis products pursuant to a Type 8 state cannabis license.

H.    “Commercial cannabis activity” includes the cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis or cannabis products that requires a state license.

I.    “Commercial cannabis waste” means cannabis plants and plant materials that are discarded by a cannabis business, including but not limited to extra vegetative plants, failed clones, and harvest waste.

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

K.    “Dispensary” means any cannabis business where medicinal or adult-use cannabis or cannabis products are sold at retail to customers, pursuant to a Type 10 state cannabis license.

L.    “Distributor” means any cannabis business for the distribution of cannabis or cannabis products, pursuant to a Type 11 state cannabis license.

M.    “Indoor cultivation” means the cultivation of cannabis for personal use within a fully enclosed and secure structure that has a complete roof in which cannabis plants cannot be seen from any public right-of-way. Indoor cultivation does not include any commercial cannabis activity.

N.    “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.

O.    “Outdoor cultivation” means the cultivation of cannabis that does not meet the definition of indoor cultivation.

P.    “Primary caregiver” has the same meaning as that term is defined by Section 11362.7 of the Health and Safety Code.

Q.    “Qualified patient” has the same meaning as that term is defined by Section 11362.7 of the Health and Safety Code. (Ord. 854 § 1, 2021; Ord. 830 § 2, 2018; Ord. 822 § 1, 2018; Ord. 806 § 1 (part), 2017).

6.56.030 State and local requirements.

A.    Any cannabis business that does not have an applicable state license is prohibited within the city.

B.    Any cannabis business allowed in the city shall obtain a development agreement, a city business license, and a conditional use permit, as set forth in this chapter. A cannabis business shall apply for all of these requirements with the community development department.

C.    At the time of application to the city, every cannabis business applicant shall submit to the community development department a copy of its state license or state license application required for its operation.

D.    Any cannabis business allowed in the city shall maintain strict compliance with applicable cannabis state laws or regulations, as they might be amended from time to time.

E.    No more than three dispensaries may be permitted within the city at one time.

F.    No more than five cannabis businesses that maintain state licenses for cultivation, manufacturing, distribution or any combination thereof may be permitted within the city at one time.

G.    No more than two cannabis testing laboratories may operate in the city at one time.

H.    No more than ten total cannabis businesses may operate in the city at one time.

I.    The limits on cannabis businesses contained in subsections E through H of this section shall not apply to any microbusiness operating in the city with a Type 12 license; however, a Type 12 license may be added on to an existing cannabis business in the sole discretion of the city.

J.    A cultivation or manufacturing business may also be permitted to operate as a distributor within city limits pursuant to all requirements of this chapter and state licensing requirements.

K.    This chapter is subject to the requirements in Chapter 5.14. (Ord. 854 § 1, 2021; Ord. 806 § 1 (part), 2017).

6.56.040 Commercial cannabis cultivation.

A.    Each cannabis cultivation business may be permitted within city limits pursuant to a development agreement, pursuant to Section 3.64.030, and a conditional use permit, pursuant to Section 18.18.020.

B.    A cannabis cultivation business shall only be allowed in a light industrial (LI), heavy industrial (HI), West Patterson industrial business park (IBP), or West Patterson light industrial (IL) district, or in other districts as specified in a development agreement, conditional use permit and applicable zoning code provisions.

C.    A commercial cannabis cultivation business shall not cultivate outdoors anywhere within the city.

D.    All commercial cannabis cultivation businesses shall maintain any applicable state permit, city business license, conditional use permit, and comply with all of the following:

1.    Secure Building. All commercial cannabis activity shall occur entirely inside of a building that is secure, locked, and fully enclosed, with a ceiling, roof, or other enclosure. The building, including all walls, doors, and the roof, shall be of solid construction meeting the minimum building code requirements for industrial structures (commercial greenhouse structures are not allowed), and include material strong enough to prevent entry except through an open door. Notwithstanding the foregoing, the roof may be of solid material provided other security measures exist to ensure that the commercial cannabis activity cannot be seen, heard, or smelled beyond the property line.

2.    Security. A cannabis cultivation business shall comply with security requirements acceptable to the police chief on an individual project basis. At a minimum, the cultivation security system shall consist of:

a.    Security Surveillance Cameras. Security surveillance cameras and a video recording system shall be installed to monitor all doors into the buildings on the business site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system shall be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the cultivation site. The recording system shall be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive.

b.    Security Video Retention. Video from the security surveillance cameras shall be recording at all times (twenty-four hours a day, seven days a week) and the recording shall be maintained for at least thirty days. The video recordings shall be made available to the city upon request.

c.    Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems shall be installed and maintained in good working condition. The alarm system shall include a private security company that is required to respond to every alarm.

d.    Law Enforcement. Any security plan shall comply with the applicable regulations required by law enforcement at the time of operation.

3.    Odor Control. A detailed plan shall be submitted describing the air treatment system, or other methods that will be implemented to prevent cannabis odors from being detected outside the business site.

4.    Insurance. A cannabis cultivation business shall maintain insurance in the amounts and of the types that are acceptable to the city manager or his or her designee. The city shall be named as additional insured on all city-required insurance policies.

5.    Waste Management Plan. A cannabis cultivation business shall submit a cannabis waste management plan to, and have that plan approved by, the public works department describing how commercial cannabis waste will be disposed. A cannabis cultivation business shall comply with its cannabis waste management plan at all times. If applicable, the plan shall include a description of measures to be taken relating to light bulb recycling. (Ord. 854 § 1, 2021; Ord. 830 § 3, 2018; Ord. 806 § 1 (part), 2017).

6.56.050 Cannabis testing laboratory.

A.    Up to two cannabis testing laboratories may be permitted within city limits pursuant to a development agreement, pursuant to Section 3.64.030, and a conditional use permit, pursuant to Section 18.18.020.

B.    A cannabis testing laboratory shall only be located in light industrial (LI), heavy industrial (HI), West Patterson industrial business park (IBP), or West Patterson light industrial (IL) districts, or in other districts as specified in a development agreement, conditional use permit and applicable zoning code provisions.

C.    A cannabis testing laboratory shall meet the accreditation criteria in the International Organization for Standardization (ISO) guidelines known as ISO 17025.

D.    All cannabis testing laboratories shall maintain any applicable state permits, city business license, conditional use permit, and maintain compliance with all of the following:

1.    Secure Building. All commercial cannabis activity shall occur entirely inside of a building that is secure, locked, and fully enclosed, with a ceiling, roof, or other enclosure. The building, including all walls, doors, and the roof, shall be of solid construction meeting the minimum building code requirements for industrial structures, and include material strong enough to prevent entry except through an open door. Notwithstanding the foregoing, the roof may be of solid material provided other security measures exist to ensure that the commercial cannabis activity cannot be seen, heard, or smelled beyond the property line.

2.    Security. A cannabis testing laboratory shall comply with security requirements acceptable to the police chief on an individual project basis. At a minimum, the cannabis testing laboratory’s security system shall consist of:

a.    Security Surveillance Cameras. Security surveillance cameras and a video recording system shall be installed to monitor all doors into the buildings on the business site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system shall be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the testing laboratory site. The recording system shall be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive.

b.    Security Video Retention. Video from the security surveillance cameras shall be recording at all times (twenty-four hours a day, seven days a week) and the recording shall be maintained for at least thirty days. The video recordings shall be made available to the city upon request.

c.    Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems shall be installed and maintained in good working condition. The alarm system shall include a private security company that is required to respond to every alarm.

d.    Law Enforcement. Any security plan shall comply with the applicable regulations required by law enforcement at the time of operation.

3.    Odor Control. A detailed plan shall be submitted describing the air treatment system, or other methods that will be implemented to prevent cannabis odors from being detected outside the business site.

4.    Insurance. A cannabis testing laboratory business shall maintain insurance in the amounts and of the types that are acceptable to the city manager or his or her designee. The city shall be named as additional insured on all city-required insurance policies.

5.    Waste Management Plan. A cannabis testing laboratory shall submit a cannabis waste management plan to, and have that plan approved by, the public works department describing how commercial cannabis waste will be disposed. A cannabis testing laboratory shall comply with its cannabis waste management plan at all times. (Ord. 854 § 1, 2021; Ord. 806 § 1 (part), 2017).

6.56.060 Dispensary.

A.    Up to three dispensaries may be permitted within city limits pursuant to a development agreement, pursuant to Section 3.64.030, and a conditional use permit, pursuant to Section 18.18.020.

B.    A dispensary shall only be located in light industrial (LI), heavy industrial (HI), West Patterson industrial business park (IBP), or West Patterson light industrial (IL) districts, or in other districts as specified in a development agreement, conditional use permit and applicable zoning code provisions.

C.    A cannabis delivery business is prohibited within the city. Any commercial cannabis activity related to delivery is prohibited unless that activity is performed by a dispensary permitted by this chapter. The city reserves the right to prohibit a dispensary from performing delivery services.

D.    All dispensaries shall obtain any applicable state permit, obtain a city business license, and maintain compliance with all of the following:

1.    Secure Building. All commercial cannabis activity shall occur entirely inside of a building that is secure, locked, and fully enclosed, with a ceiling, roof, or other enclosure. The building, including all walls, doors, and the roof, shall be of solid construction meeting the minimum building code requirements for industrial structures, and include material strong enough to prevent entry except through an open door. Notwithstanding the foregoing, the roof may be of solid material provided other security measures exist to ensure that the commercial cannabis activity cannot be seen, heard, or smelled beyond the property line.

2.    Security. A dispensary shall comply with security requirements acceptable to the police chief on an individual project basis. At a minimum, the dispensary security system shall consist of:

a.    Security Surveillance Cameras. Security surveillance cameras and a video recording system shall be installed to monitor all doors into the buildings on the business site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system shall be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the dispensary site. The recording system shall be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive.

b.    Security Video Retention. Video from the security surveillance cameras shall be recording at all times (twenty-four hours a day, seven days a week) and the recording shall be maintained for at least thirty days. The video recordings shall be made available to the city upon request.

c.    Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems shall be installed and maintained in good working condition. The alarm system shall include a private security company that is required to respond to every alarm.

d.    Law Enforcement. Any security plan shall comply with the applicable regulations required by law enforcement at the time of operation.

3.    Odor Control. A detailed plan shall be submitted describing the air treatment system, or other methods that will be implemented to prevent cannabis odors from being detected outside the business site.

4.    Insurance. A dispensary shall maintain insurance in the amounts and of the types that are acceptable to the city manager or his or her designee. The city shall be named as additional insured on all city-required insurance policies.

5.    Waste Management Plan. A dispensary shall submit a cannabis waste management plan to, and have that plan approved by, the public works department describing how commercial cannabis waste will be disposed. A dispensary shall comply with its cannabis waste management plan at all times. (Ord. 854 § 1, 2021; Ord. 806 § 1 (part), 2017).

6.56.070 Cannabis manufacturing business.

A.    Each cannabis manufacturing business may be permitted within city limits pursuant to a development agreement, pursuant to Section 3.64.030, and a conditional use permit, pursuant to Section 18.18.020.

B.    A cannabis manufacturing business shall only be located in light industrial (LI), heavy industrial (HI), West Patterson industrial business park (IBP), or West Patterson light industrial (IL) districts, or in other districts as specified in a development agreement, conditional use permit and applicable zoning code provisions.

C.    All cannabis manufacturing businesses shall obtain any applicable state permit, obtain a city business license, and maintain compliance with all of the following:

1.    Secure Building. All commercial cannabis activity shall occur entirely inside of a building that is secure, locked, and fully enclosed, with a ceiling, roof, or other enclosure. The building, including all walls, doors, and the roof, shall be of solid construction meeting the minimum building code requirements for industrial structures, and include material strong enough to prevent entry except through an open door. Notwithstanding the foregoing, the roof may be of solid material provided other security measures exist to ensure that the commercial cannabis activity cannot be seen, heard, or smelled beyond the property line.

2.    Security. A cannabis manufacturing business shall comply with security requirements acceptable to the police chief on an individual project basis. At a minimum, the cannabis manufacturing business’s security system shall consist of:

a.    Security Surveillance Cameras. Security surveillance cameras and a video recording system shall be installed to monitor all doors into the buildings on the business site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system shall be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the manufacturing site. The recording system shall be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive.

b.    Security Video Retention. Video from the security surveillance cameras shall be recording at all times (twenty-four hours a day, seven days a week) and the recording shall be maintained for at least thirty days. The video recordings shall be made available to the city upon request.

c.    Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems shall be installed and maintained in good working condition. The alarm system shall include a private security company that is required to respond to every alarm.

d.    Law Enforcement. Any security plan shall comply with the applicable regulations required by law enforcement at the time of operation.

3.    Odor Control. A detailed plan shall be submitted describing the air treatment system, or other methods that will be implemented to prevent cannabis odors from being detected outside the business site.

4.    Insurance. A cannabis manufacturing business shall maintain insurance in the amounts and of the types that are acceptable to the city manager or his or her designee. The city shall be named as additional insured on all city-required insurance policies.

5.    Waste Management Plan. A cannabis manufacturing business shall submit a cannabis waste management plan to, and have that plan approved by, the public works department describing how commercial cannabis waste will be disposed. A cannabis manufacturing business shall comply with its cannabis waste management plan at all times.

6.    Manufacturing Site Compliance. A cannabis manufacturing business shall at all times comply with any applicable volatile or nonvolatile regulations imposed by state law or regulation. A cannabis manufacturing business shall not open their manufacturing site to the public. A cannabis manufacturing business shall not allow anyone on the manufacturing site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. A manager must be on the manufacturing site at all times that any other person, except for a security guard, is on the site. A juvenile shall not be on the manufacturing site or operate a cannabis manufacturing business in any capacity, including, but not limited to, as a manager, staff, employee, contractor, or volunteer. (Ord. 854 § 1, 2021; Ord. 830 § 4, 2018; Ord. 806 § 1 (part), 2017).

6.56.080 Penalties.

A.    Any use or condition caused, or permitted to exist, in violation of any provision of this chapter shall be, and hereby is declared to be, a public nuisance and may be summarily abated by the city pursuant to Section 731 of the Code of Civil Procedure or any other remedy available to the city.

B.    In addition to any other enforcement permitted by this chapter, the city attorney may bring a civil action for injunctive relief and civil penalties against any person or entity that violates this chapter. In any civil action brought pursuant to this chapter, a court of competent jurisdiction may award reasonable attorneys’ fees and costs to the prevailing party.

C.    Violations of this chapter shall be subject to an administrative penalty. The amount of the administrative penalty shall be two hundred fifty dollars for the first offense, five hundred dollars for the second offense, and one thousand dollars for any subsequent offense. (Ord. 854 § 1, 2021; Ord. 822 § 2, 2018; Ord. 806 § 1 (part), 2017).

6.56.090 Appeals.

A.    Any permit applicant may appeal any adverse action taken under this chapter to the city council.

B.    All appeals taken under this chapter must be taken within thirty days after the adverse action by filing with the office of the city clerk a written notice of appeal specifying the grounds thereof. An appeal shall be accompanied by a nonrefundable filing fee, as established by resolution adopted by the city council from time to time.

C.    The city clerk, upon the filing of such appeal and payment of an appeal fee, shall place the matter upon the agenda for the next regular meeting of the city council occurring not earlier than five days after the filing of the appeal, and shall notify the appealing permit applicant by letter of the meeting date and place at which the appeal will be heard. (Ord. 854 § 1, 2021; Ord. 822 § 3, 2018; Ord. 806 § 1 (part), 2017).

6.56.100 Cost recovery.

A.    The city shall be entitled to recover its abatement and enforcement costs incurred in obtaining compliance with this chapter. Costs incurred by the city are recoverable even if a public nuisance, municipal code, or other violation of law is corrected by the property owner or other responsible party.

B.    The cost of abating a public nuisance or enforcing this chapter shall either be a special assessment and lien on the subject property or the personal obligation of the owner of the subject property or the responsible party. If there is more than one responsible party, each party shall be jointly and severally liable for the costs.

C.    For purposes of this chapter, the following additional definitions shall apply:

1.    “Abatement costs” include the actual and reasonable costs incurred by the city to abate a public nuisance. These costs include all direct and indirect costs to the city that result from the total abatement action, including, but not limited to, investigation costs, costs to enforce the municipal code and any applicable state or county law, clerical and administrative costs to process paperwork, costs incurred to provide notices and prepare for and conduct administrative appeal hearings, and costs to conduct actual abatement of the nuisance. Costs include personnel costs, administrative overhead, costs for equipment such as cameras and vehicles, staff time to hire a contractor, and reasonable attorneys’ fees incurred by city.

2.    “Enforcement costs” include all actual and reasonable costs incurred by the city to enforce compliance with the municipal code and any applicable state, county, or city public health and safety law that are not included within abatement costs. Enforcement costs shall also include, but are not limited to, costs of fringe benefits for personnel, administrative overhead, costs of equipment, costs of materials, costs related to investigations, costs related to issuing and defending administrative or court citations, costs incurred investigating and abating violations of the municipal code or state or county law violations, and reasonable attorneys’ fees related to these activities.

3.    “Responsible party” means a person or entity responsible for creating, causing, committing, or maintaining the violation of this chapter or state or county law.

4.    “Subject property” means the real property that is the subject of any abatement or enforcement action by the city for which the city incurred costs and seeks recovery under this chapter. (Ord. 854 § 1, 2021; Ord. 822 § 4, 2018; Ord. 806 § 1 (part), 2017).

6.56.110 Severability.

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this chapter, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this chapter or any part thereof. The city council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. (Ord. 854 § 1, 2021; Ord. 822 § 6, 2018; Ord. 806 § 1 (part), 2017. Formerly 6.56.120).