Chapter 5.70
CANNABIS DISPENSARIES, BUSINESSES AND DELIVERIES

Sections:

Article I. Medical Cannabis

5.70.010    Purpose.

5.70.020    Definitions.

5.70.030    Medical cannabis dispensaries prohibited.

5.70.040    Medical cannabis deliveries prohibited.

5.70.050    Commercial medical cannabis businesses allowed.

5.70.051    Commercial medical cannabis permit.

5.70.052    Commercial medical cannabis permit holder qualifications.

5.70.053    Commercial medical cannabis permit application.

5.70.054    Commercial medical cannabis business operating agreement.

5.70.055    Commercial medical cannabis business operating plan.

5.70.056    Commercial medical cannabis business security plan.

5.70.057    Commercial medical cannabis permit revocation and suspension.

5.70.058    Commercial medical cannabis permit indemnification.

5.70.060    Penalty.

Article II. Nonmedical Cannabis

5.70.110    Purpose.

5.70.120    Definitions.

5.70.130    Nonmedical cannabis dispensaries prohibited.

5.70.140    Nonmedical cannabis deliveries prohibited.

5.70.150    Commercial nonmedical cannabis businesses allowed.

5.70.160    Commercial nonmedical cannabis permit.

5.70.161    Commercial nonmedical cannabis permit holder qualifications.

5.70.162    Commercial nonmedical cannabis permit application.

5.70.163    Commercial nonmedical cannabis business operating agreement.

5.70.164    Commercial nonmedical cannabis business operating plan.

5.70.165    Commercial nonmedical cannabis business security plan.

5.70.170    Commercial nonmedical cannabis permit revocation and suspension.

5.70.180    Commercial nonmedical cannabis permit indemnification.

5.70.190    Dual application process.

5.70.200    Penalty.

Article I. Medical Cannabis

5.70.010 Purpose.

A. In enacting this article, it is the intent of the city council of the city of Pittsburg to protect the safety and welfare of the general public. The Federal Controlled Substances Act, 21 U.S.C. Section 841, prohibits the possession, sale and distribution of cannabis, and the city council finds that sanctioning the opening or establishment of medical cannabis collectives, cooperatives and dispensaries, or allowing the delivery of medical cannabis within the city, would be inconsistent with federal law. However, the city acknowledges that state law allows commercial medical cannabis businesses, and that certain commercial medical cannabis businesses that operate in accordance with state law and are properly vetted, regulated, and monitored can have positive economic impacts in the communities in which they operate.

B. Furthermore, the city council finds that medical cannabis dispensaries are public nuisances in that many violent crimes have been committed that can be traced back to the proliferation of cannabis dispensaries, including armed robberies and murders. Increased noise and pedestrian traffic, including nonresidents in pursuit of cannabis, and out-of-area criminals in search of prey, are commonly encountered near or outside cannabis collectives, cooperatives and dispensaries. The city council further finds that it is reasonable to conclude that medical cannabis deliveries are likely to cause many of these same adverse impacts.

C. Therefore, in order to protect the integrity of the city and the goals upon which this city was founded, the city council finds that it is in the best interest of the residents of the city to prohibit medical cannabis collectives, cooperatives and dispensaries, and medical cannabis deliveries, and only allow certain commercial medical cannabis businesses to operate, subject to specific permitting requirements and execution of an operating agreement.

D. The purpose of this article is to prohibit medical cannabis collectives, cooperatives and dispensaries from being opened or established in the city of Pittsburg, as well as prohibiting medical cannabis deliveries from occurring in the city of Pittsburg, while also allowing certain commercial medical cannabis businesses to operate subject to requirements set forth in this article. Nothing in this article shall be deemed to allow or authorize any use or activity which is otherwise prohibited by any state or federal law. [Ord. 18-1442 § 3 (Exh. A), 2018; Ord. 16-1414 § 2, 2016; Ord. 13-1365 § 2, 2013.]

5.70.020 Definitions.

The following words and phrases, whenever used in this article, shall be construed as hereafter set out, unless it is apparent that they have a different meaning:

A. “City” means the city of Pittsburg.

B. “Commercial medical cannabis business” means Type 6 – Manufacturer 1, Type 7 – Manufacturer 2, Type 8 – Testing laboratory, and Type 11 – Distributor activities defined by the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”), Business and Professions Code Section 26000 et seq.

C. “Medical cannabis” means cannabis used for medical purposes in accordance with the Compassionate Use Act (Health and Safety Code Section 11362.5) and MAUCRSA, Business and Professions Code Section 26000 et seq.

D. “Medical cannabis delivery” means the transfer of medical cannabis or medical cannabis products from a medical cannabis dispensary to a qualified patient or primary caregiver, as well as the use by a dispensary of any technology platform to arrange for or facilitate the transfer of medical cannabis or medical cannabis products.

E. “Medical cannabis dispensary” or “dispensary” means (1) any facility, building, structure or location, whether fixed or mobile, where a primary caregiver makes available, sells, transmits, gives or otherwise provides medical cannabis to three or more of the following: a qualified patient or a person with an identification card, or a primary caregiver, in strict accordance with Health and Safety Code Section 11362.5 et seq.; or (2) any facility, building, structure or location where three qualified patients and/or persons with identification cards and/or primary caregivers meet or congregate in order to collectively or cooperatively distribute, sell, dispense, transmit, process, deliver, exchange or give away cannabis for medicinal purposes pursuant to Health and Safety Code Section 11362.5 et seq., and such group is organized as a medical cannabis cooperative or collective as set forth in the Attorney General’s guidelines. The terms “primary caregiver,” “qualified patient,” and “person with an identification card” shall be as defined in Health and Safety Code Section 11362.5 et seq.

For purposes of this chapter, a “medical cannabis dispensary” shall not include the following uses, as long as the location of such uses is otherwise regulated by applicable law and complies strictly with applicable law, including but not limited to Health and Safety Code Section 11362.5 et seq.:

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

2. A health care facility licensed pursuant to Chapter 2 of Division 2 of the Health and Safety Code;

3. 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;

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

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

F. “Medical cannabis products” means medical 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. “Person” means any individual, partnership, co-partnership, firm, association, joint stock company, corporation, limited liability corporation, collective, cooperative, or combination thereof in whatever form or character. [Ord. 18-1442 § 3 (Exh. A), 2018; Ord. 16-1414 § 2, 2016; Ord. 13-1365 § 2, 2013.]

5.70.030 Medical cannabis dispensaries prohibited.

Medical cannabis dispensaries are prohibited in the city. It shall be unlawful for any person to engage in, conduct, carry on, or to allow to be engaged in, conducted or carried on, in or upon any premises in the city, the operation of a medical cannabis dispensary. [Ord. 18-1442 § 3 (Exh. A), 2018; Ord. 16-1414 § 2, 2016; Ord. 13-1365 § 2, 2013.]

5.70.040 Medical cannabis deliveries prohibited.

Medical cannabis deliveries are prohibited in the city. It shall be unlawful for any person to engage in, conduct, carry on, or to allow to be engaged in, conducted or carried on, in or upon any premises in the city, medical cannabis deliveries. This section shall not be interpreted to prohibit the transportation of medical cannabis through the city on public roads, as long as such transportation does not involve the delivery of medical cannabis to retail or end users within the city. [Ord. 18-1442 § 3 (Exh. A), 2018; Ord. 16-1414 § 2, 2016.]

5.70.050 Commercial medical cannabis businesses allowed.

Commercial medical cannabis businesses are allowed in the city, pursuant to the requirements set forth in this article. All commercial medical cannabis businesses must obtain a city business license, a city medical cannabis permit, and a state license prior to operation, and also enter into an operating agreement with the city. Only Type 6 – Manufacturer 1, Type 7 – Manufacturer 2, Type 8 – Testing laboratory, and Type 11 – Distributor, as defined by Business and Professions Code Section 26000 et seq., shall be allowed and permitted by the city. The city council may, at its discretion, issue up to nine commercial medical cannabis permits. This number may be changed at a later time by resolution of the city council. It shall be unlawful for any person to engage in, conduct, carry on, or to allow to be engaged in, conducted or carried on, in or upon any premises in the city, a commercial medical cannabis business without complying with the requirements of this article. [Ord. 18-1442 § 3 (Exh. A), 2018; Ord. 16-1414 § 2, 2016.]

5.70.051 Commercial medical cannabis permit.

A. It shall be unlawful for any person to operate a commercial medical cannabis business without a commercial medical cannabis permit, issued by the city, under the terms and conditions set forth in this article.

B. Each commercial medical cannabis permit shall expire five years from its date of issuance. Renewal of the permit shall be subject to city council approval, which must be obtained at a duly noticed, open and public meeting. City shall have the right to charge an administrative fee to the commercial medical cannabis permit holder, to compensate city for its reasonable and actual costs to evaluate the permit renewal.

C. The commercial medical cannabis permit is not transferable, and any attempt to assign or transfer the permit shall render the permit null and void.

D. No commercial medical cannabis business shall be located within 600 feet of an existing school (as defined by PMC 18.08.060(V)), general day care (as defined by PMC 18.08.060(F)), club or lodge (as defined by PMC 18.08.060(B)) used exclusively as a youth center, city-owned park space which is open to the public, or library, as measured from the main entrance of the business to the nearest access point of the other use, following the shortest publicly accessible path of travel, including but not limited to streets, alleys, sidewalks, pathways, or trails. However, in no event shall a commercial medical cannabis dispensary providing cannabis products to the end user be located less than 1,000 feet from any of the uses described above, as measured by the shortest direct line distance between the subject parcel lines. The city council, by ordinance, may amend this restriction or adopt additional restrictions.

E. The commercial medical cannabis business shall file an application for a commercial medical cannabis permit with the city manager or city manager’s designee on forms provided by the city, and shall pay an “application fee” and “processing fee.”

F. The city council may deny an application for a commercial medical cannabis permit, if it determines any of the following:

1. The applicant made one or more false or misleading statements or omissions on the registration application or during the application process;

2. The applicant fails to meet the requirements of this chapter or any regulation adopted pursuant to this chapter;

3. It is not in the best interest of the city, based upon the applicant’s application or operating agreement, to issue a permit to the business;

4. Potential threats to public health and safety cannot be sufficiently mitigated; or

5. Significant public opposition necessitates denial to preserve the health, safety, and general welfare of the city. [Ord. 19-1465 § 3, 2019; Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.052 Commercial medical cannabis permit holder qualifications.

All commercial medical cannabis permit holders must meet the following minimum qualifications. The city reserves the right to require additional qualifications through the commercial medical cannabis permit application procedure.

A. Commercial medical cannabis permit holders, business operators, and employees must be 21 years of age or older.

B. Commercial medical cannabis permit holders, their business operators and employees shall be subject to background search by the California Department of Justice and local law enforcement. At city’s discretion, city may conduct a background search of any commercial medical cannabis permit holder, their business operators, and employees.

C. Commercial medical cannabis business owners, operators, managers, and employees must not have felony convictions, as specified in Penal Code Sections 667.5(c) and 1192.7(c).

D. Commercial medical cannabis business owners, operators, managers, and employees must not have a criminal conviction that substantially relates to the qualifications, functions, or duties of the business or profession, including a felony conviction involving fraud, deceit, or embezzlement or a criminal conviction for the sale or provision of illegal controlled substances to a minor. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.053 Commercial medical cannabis permit application.

An application for a commercial medical cannabis permit shall include, but not be limited to, the following information:

A. The legal name, and any other names, under which the commercial medical cannabis business will operate.

B. The address of the location and the on-site telephone number, if known, of the commercial medical cannabis business.

C. The following information for each owner and manager of the medical cannabis business:

1. Complete legal name and any alias(es), address, and telephone number.

2. Date and place of birth.

3. Social security numbers.

4. Copy of a valid government issued photo identification card, license, or passport.

5. List of all criminal convictions, other than infractions for traffic violations, the jurisdiction of the convictions, and the circumstances thereof.

6. Names of businesses owned or operated by the owner(s) or manager(s) within the last 10 years.

7. Investor and/or partner information.

D. Assessor’s parcel number of the parcel upon which the commercial medical cannabis business will be located.

E. Draft operating agreement, in accordance with PMC 5.70.054.

F. Notarized written authorization from the property owner and/or landlord to operate a commercial medical cannabis business on the site.

G. Air Quality Acknowledgement. When deemed necessary by city staff, the applicant shall provide a calculation of the business’s anticipated emissions of air pollutants. The applicant shall also provide assurance that the business will comply with all best management practices established by the Bay Area Air Quality Management District (“BAAQMD”). No commercial medical cannabis permit shall be issued to any business that would exceed the thresholds of significance established by the BAAQMD for evaluating air quality impacts for operation or construction.

H. Greenhouse Gas Emissions Acknowledgement. When deemed necessary by city staff, the applicant shall provide calculations of the anticipated greenhouse gas emissions for the operation of the business and, where applicable, the operation of the business. The applicant shall further demonstrate compliance with any applicable state, regional, or local plan for the reduction of greenhouse gas emissions. No commercial medical cannabis permit shall be granted for any business that would violate any state, regional, or local plan for the reduction of greenhouse gases.

I. Water Supply Acknowledgement. When deemed necessary by the city engineer, the applicant shall demonstrate to the satisfaction of the city engineer that sufficient water supply exists for the use.

J. Wastewater Acknowledgement. When deemed necessary by the city engineer, the applicant shall demonstrate to the satisfaction of the city engineer that sufficient wastewater capacity exists for the proposed use.

K. To the extent that the applicant intends to use any hazardous materials in its operations, the applicant shall provide a hazardous materials management plan that complies with all federal, state, and local requirements for management of such substances. “Hazardous materials” includes any hazardous substance regulated by any federal, state, or local laws or regulations intended to protect human health or the environment from exposure to such substances.

L. Property owner(s) and applicant(s), shall sign the application and shall include affidavit(s) agreeing to abide by and conform to the conditions of the permit and all provisions of the Pittsburg Municipal Code pertaining to the establishment and operation of the medical cannabis manufacturing business, including, but not limited to, the provisions of this article. The affidavit(s) shall acknowledge that the approval of the permit shall, in no way, allow any activity contrary to the Pittsburg Municipal Code, or any activity which is in violation of applicable laws.

M. Statement in writing by the applicant, that they will, to the fullest extent allowed by law, give preference to residents of the city for employee hiring.

N. Signed indemnity provision.

O. Any other information the city deems necessary.

Pursuant to applicable law, private information will be exempt from disclosure to the public, in order to protect an applicant’s privacy interest and safety. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.054 Commercial medical cannabis business operating agreement.

The operating agreement shall set forth the terms and conditions under which the commercial medical cannabis business will operate, which are in addition to the requirements of this article, including, but not limited to: a business operating plan as set forth in PMC 5.70.055; a security plan as set forth in PMC 5.70.056; payment of fees and other charges mutually agreed to; and additional terms and conditions that will protect and promote public health, safety, and welfare. The operating agreement shall be approved by the city council during a duly noticed, open and public meeting. The operating agreement may be approved concurrently with the commercial medical cannabis permit. An approved operating agreement shall only be in force with a valid commercial medical cannabis permit. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.055 Commercial medical cannabis business operating plan.

An operating plan shall be in conformance with the requirements of this article, and shall include, at a minimum:

A. A list of the names, addresses, telephone numbers, and responsibilities of each applicant, manager and employee of the medical cannabis manufacturing business.

B. Planned hours and days of operations of the medical cannabis manufacturing business.

C. Floor plan of the proposed business facility.

D. If applicant is a commercial medical cannabis manufacturing business, procedures to be utilized at the facility, including, as applicable, a description of which chemicals will be used, how chemicals will be stored, handled, and used; extraction and infusion methods; the transportation process; inventory procedures; cannabis track and trace procedures; inventory procedures; quality control procedures; and testing procedures.

E. If applicant is a commercial medical cannabis manufacturing business, a detailed description of the product(s) to be manufactured at the business, including a description of the product’s intended final use by consumers.

F. Transportation plan detailing how and when medical cannabis will be delivered to and from the commercial medical cannabis business.

G. Procedures for identifying, managing, and disposing of contaminated, adulterated, deteriorated, or excess medical cannabis and medical cannabis products.

H. Procedures for inventory control to prevent diversion of medical cannabis or medical cannabis products to nonmedical use; employee screening; storage of medical cannabis; personnel policies; and recordkeeping.

I. Odor management plan detailing the reasonable steps that will be taken by the business to ensure that the odor of medical cannabis and other physical impacts on neighboring properties will be minimized.

J. Policies and procedures for adopting, monitoring, implementing, and enforcing all requirements of this article.

The city shall have the discretion to require changes to a business’s operating plan. A commercial medical cannabis permit holder is required to submit any proposed change(s) to an approved operating plan to the city manager for approval, at least 30 days before the proposed change(s) is/are to take effect. Failure to do so will result in a suspension and/or revocation of the permit. The city manager shall have the authority to suspend a permit, and the city council shall have the authority to revoke a permit. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.056 Commercial medical cannabis business security plan.

A security plan must be developed in consultation with, and approved by, the city’s chief of police, to ensure the safety of persons working inside the business, and to protect the premises from theft, vandalism, and fire. The applicant’s approved security plan must be filed with the city manager or city manager’s designee. The applicant shall agree to implement all measures set forth in the security plan. The security plan shall include, but not be limited to, the following security measures:

A. Storing cannabis and cannabis products not being manufactured or tested, in a secure room(s). Access to this/these room(s) shall be limited to key officers or employees.

B. Installation of 24-hour security surveillance cameras of at least high definition quality, to monitor all entrances and exits to and from the premises, all interior spaces where cannabis, cash, or currency is being stored, and all interior spaces where diversion of cannabis could reasonably occur. Access to the security surveillance camera network shall be given to the police department.

C. Retention of 24-hour surveillance camera footage for at least 60 days. All surveillance camera footage shall be made immediately available to the chief of police or the chief of police’s designee, or to any other state or local law enforcement, upon request.

D. Professionally installed, maintained and monitored alarm system. Notice of the triggered alarm shall be sent to the police department.

E. Sensors installed to detect entry and exit from all secure areas.

F. Use of commercial-grade, nonresidential locking mechanisms at all points of ingress and egress.

G. Procedure whereby police are notified immediately upon any incidents of theft, vandalism, or any other instances stipulated by the chief of police.

H. Designation of a responsible individual, who will be the business’s point of contact with city, police, and other law enforcement entities.

I. Transportation plan detailing how and when medical cannabis will be delivered to and from the commercial medical cannabis business. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.057 Commercial medical cannabis permit revocation and suspension.

A commercial medical manufacturing permit issued under this article may be immediately suspended and/or revoked for any of the following reasons:

A. An operator/permit holder ceases to meet any of the minimum qualifications listed in this article.

B. An operator/permit holder fails to comply with the requirements of this article or any conditions of approval of the permit.

C. An operator/permit holder’s state license for commercial medical cannabis operations is revoked, terminated, or not renewed.

D. The commercial medical cannabis business fails to become operational within six months of obtaining its commercial medical cannabis permit.

E. Once operational, the business ceases to be in regular and continuous operation for 90 consecutive days.

F. State law allowing the use for which the permit was issued is amended or repealed resulting in the prohibition of such use, or the city receives credible information that the federal government will commence enforcement measures against such businesses and/or local governments that allow them.

G. Circumstances under which the permit was granted have significantly changed and the public health, safety, and welfare require the suspension, revocation, or modification.

H. The permit was granted, in whole or in part, on the basis of a misrepresentation or omission of a material statement in the permit application.

I. An operator/permit holder is not current on city taxes or fees.

J. An operator/permit holder initiates changes to its operating plan or operating agreement without first obtaining city approval.

K. An operator/permit holder’s state license for commercial medical cannabis operations is suspended. The city shall not reinstate the permit until documentation is received showing that the state license has been reinstated or reissued. It shall be the city’s discretion whether the city reinstates any permit.

The city manager shall have the authority to suspend a permit, and the city council shall have the authority to revoke a permit. A suspension and/or revocation of a permit automatically suspends and/or revokes the permit holder’s commercial medical cannabis business operating agreement. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.058 Commercial medical cannabis permit indemnification.

To the fullest extent permitted by law, commercial medical cannabis permit holders shall indemnify, defend with counsel acceptable to city, and hold harmless, city and its officers, officials, employees, agents and volunteers (collectively, “indemnitees”) from and against any and all liability, loss, damage, claims, expenses, and costs, including without limitation attorney’s fees, costs and fees of litigation (collectively, “liability”) of every nature arising out of, pertaining to, or relating to the city’s suspension and/or revocation of a permit, except such liability caused by the sole gross negligence or willful misconduct of city. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.060 Penalty.

A. Violation of this article is a public nuisance.

B. Nothing in this article in any way limits any other remedy that may be available to the city, or any penalty that may be imposed by the city, for violations of this chapter. Such additional remedies include, but are not limited to, injunctive relief, administrative citations, or a cause of action under the California Narcotics Nuisance Abatement Act (Health and Safety Code Section 11570). [Ord. 18-1442 § 3 (Exh. A), 2018; Ord. 16-1414 § 2, 2016; Ord. 13-1365 § 2, 2013. Formerly 5.70.040.]

Article II. Nonmedical Cannabis

5.70.110 Purpose.

A. In enacting this article, it is the intent of the city council to protect the safety and welfare of the general public. The Federal Controlled Substances Act, 21 U.S.C. Section 841, prohibits the possession, sale and distribution of cannabis, and the city council finds that sanctioning the opening or establishment of nonmedical cannabis collectives, cooperatives, and dispensaries, or allowing the delivery of nonmedical cannabis within the city would be inconsistent with federal law. However, the city acknowledges that state law allows commercial nonmedical cannabis businesses, and that certain commercial nonmedical cannabis businesses that operate in accordance with state law and are properly vetted, regulated, and monitored, can have positive economic impacts in the communities in which they operate.

B. Furthermore, the city council finds that nonmedical cannabis dispensaries are public nuisances in that many violent crimes have been committed that can be traced back to the proliferation of cannabis dispensaries, including armed robberies and murders. Increased noise and pedestrian traffic, including nonresidents in pursuit of cannabis, and out-of-area criminals in search of prey, are commonly encountered near or outside cannabis collectives, cooperatives and dispensaries. The city council further finds that it is reasonable to conclude that cannabis deliveries are likely to cause many of these same adverse impacts.

C. Therefore, in order to protect the integrity of the city and the goals upon which this city was founded, the city council finds that it is in the best interest of the residents of the city to prohibit nonmedical cannabis collectives, cooperatives and dispensaries, and cannabis deliveries, and only allow certain commercial cannabis businesses to operate, subject to specific permitting requirements and execution of an operating agreement.

D. The purpose of this article is to prohibit cannabis collectives, cooperatives and dispensaries from being opened or established in the city of Pittsburg, as well as prohibiting nonmedical cannabis deliveries from occurring in the city of Pittsburg, while also allowing certain commercial nonmedical cannabis businesses to operate subject to requirements set forth in this article. Nothing in this article shall be deemed to allow or authorize any use or activity which is otherwise prohibited by any state or federal law. [Ord. 18-1442 § 3 (Exh. A), 2018; Ord. 16-1415 § 2, 2016.]

5.70.120 Definitions.

The following words and phrases, whenever used in this article, shall be construed as hereafter set out, unless it is apparent that they have a different meaning:

A. “City” means the city of Pittsburg.

B. “Commercial nonmedical cannabis business” means Type 6 – Manufacturer 1, Type 7 – Manufacturer 2, Type 8 – Testing laboratory, and Type 11 – Distributor activities defined by the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”), Business and Professions Code Section 26000 et seq.

C. “Nonmedical cannabis” means cannabis that is intended to be used for nonmedical purposes pursuant to Business and Professions Code Section 26000 et seq.

D. “Nonmedical cannabis delivery” means the commercial transfer of nonmedical cannabis or nonmedical cannabis products from a nonmedical cannabis dispensary to a person, as well as the use by a dispensary of any technology platform to arrange for or facilitate the transfer of nonmedical cannabis or nonmedical cannabis products.

E. “Nonmedical cannabis dispensary” or “dispensary” means any retail business that is required to possess a “Type 10 – Retailer” or “Type 12 Microbusiness” under Business and Professions Code Section 2600 et seq.

F. “Nonmedical cannabis products” means nonmedical 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. “Person” means any individual, partnership, co-partnership, firm, association, joint stock company, corporation, limited liability corporation, collective, cooperative, or combination thereof in whatever form or character. [Ord. 18-1442 § 3 (Exh. A), 2018; Ord. 16-1415 § 2, 2016.]

5.70.130 Nonmedical cannabis dispensaries prohibited.

Nonmedical cannabis dispensaries are prohibited in the city. It shall be unlawful for any person to engage in, conduct, carry on, or to allow to be engaged in, conducted or carried on, in or upon any premises in the city, the operation of a nonmedical cannabis dispensary. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.140 Nonmedical cannabis deliveries prohibited.

Nonmedical cannabis deliveries are prohibited in the city. It shall be unlawful for any person to engage in, conduct, carry on, or to allow to be engaged in, conducted or carried on, in or upon any premises in the city, nonmedical cannabis deliveries. This section shall not be interpreted to prohibit the transportation of nonmedical cannabis through the city on public roads, as long as such transportation does not involve the delivery of nonmedical cannabis within the city. [Ord. 18-1442 § 3 (Exh. A), 2018; Ord. 16-1415 § 2, 2016. Formerly 5.70.130.]

5.70.150 Commercial nonmedical cannabis businesses allowed.

Commercial nonmedical cannabis businesses are allowed in the city, pursuant to the requirements set forth in this article. All commercial nonmedical cannabis businesses must obtain a city business license, a city nonmedical cannabis permit, and a state license prior to operation, and also enter into an operating agreement with the city. Only Type 6 – Manufacturer 1, Type 7 – Manufacturer 2, Type 8 – Testing laboratory, and Type 11 – Distributor, as defined by Business and Professions Code Section 26000 et seq., shall be allowed and permitted by the city. The city council may, at its discretion, issue up to nine commercial nonmedical cannabis permits. This number may be changed at a later time by resolution of the city council. It shall be unlawful for any person to engage in, conduct, carry on, or to allow to be engaged in, conducted or carried on, in or upon any premises in the city, a commercial nonmedical cannabis business without complying with the requirements of this article. [Ord. 18-1442 § 3 (Exh. A), 2018; Ord. 16-1415 § 2, 2016. Formerly 5.70.140.]

5.70.160 Commercial nonmedical cannabis permit.

A. It shall be unlawful for any person to operate a commercial nonmedical cannabis business without a commercial nonmedical cannabis permit, issued by the city, under the terms and conditions set forth in this article.

B. Each commercial nonmedical cannabis permit shall expire five years from its date of issuance. Renewal of the permit shall be subject to city council approval, which must be obtained at a duly noticed, open and public meeting. City shall have the right to charge an administrative fee to the commercial nonmedical cannabis permit holder, to compensate city for its reasonable and actual costs to evaluate the permit renewal.

C. The commercial nonmedical cannabis permit is not transferable, and any attempt to assign or transfer the permit shall render the permit null and void.

D. No commercial nonmedical cannabis business shall be located within 600 feet of an existing school (as defined by PMC 18.08.060(V)), general day care (as defined by PMC 18.08.060(F)), club or lodge (as defined by PMC 18.08.060(B)) used exclusively as a youth center, city-owned park space which is open to the public, or library, as measured from the main entrance of the business to the nearest access point of the other use, following the shortest publicly accessible path of travel, including but not limited to streets, alleys, sidewalks, pathways, or trails. However, in no event shall a commercial nonmedical cannabis dispensary providing cannabis products to the end user be located less than 1,000 feet from any of the uses described above, as measured by the shortest direct line distance between the subject parcel lines. The city council, by ordinance, may amend this restriction or adopt additional restrictions.

E. The commercial nonmedical cannabis business shall file an application for a commercial nonmedical cannabis permit with the city manager or city manager’s designee on forms provided by the city, and shall pay an “application fee” and “processing fee.”

F. The city council may deny an application for a commercial nonmedical cannabis permit, if it determines any of the following:

1. The applicant made one or more false or misleading statements or omissions on the registration application or during the application process;

2. The applicant fails to meet the requirements of this chapter or any regulation adopted pursuant to this chapter;

3. It is not in the best interest of the city, based upon the applicant’s application or operating agreement, to issue a permit to the business;

4. Potential threats to public health and safety cannot be sufficiently mitigated; or

5. Significant public opposition necessitates denial to preserve the health, safety, and general welfare of the city. [Ord. 19-1465 § 3, 2019; Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.161 Commercial nonmedical cannabis permit holder qualifications.

All commercial nonmedical cannabis permit holders must meet the following minimum qualifications. The city reserves the right to require additional qualifications through the commercial nonmedical cannabis permit application procedure.

A. Commercial nonmedical cannabis permit holders, business operators, and employees must be 21 years of age or older.

B. Commercial nonmedical cannabis permit holders, their business operators and employees shall be subject to background search by the California Department of Justice and local law enforcement. At city’s discretion, city may conduct a background search of any commercial nonmedical cannabis permit holder, their business operators, and employees.

C. Commercial nonmedical cannabis business owners, operators, managers, and employees must not have felony convictions, as specified in Penal Code Sections 667.5(c) and 1192.7(c).

D. Commercial nonmedical cannabis business owners, operators, managers, and employees must not have a criminal conviction that substantially relates to the qualifications, functions, or duties of the business or profession, including a felony conviction involving fraud, deceit, or embezzlement or a criminal conviction for the sale or provision of illegal controlled substances to a minor. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.162 Commercial nonmedical cannabis permit application.

An application for a commercial nonmedical cannabis permit shall include, but not be limited to, the following information:

A. The legal name, and any other names, under which the commercial nonmedical cannabis business will operate.

B. The address of the location and the on-site telephone number, if known, of the commercial nonmedical cannabis business.

C. The following information for each owner and manager of the nonmedical cannabis business:

1. Complete legal name and any alias(es), address, and telephone number.

2. Date and place of birth.

3. Social security numbers.

4. Copy of a valid government issued photo identification card, license, or passport.

5. List of all criminal convictions, other than infractions for traffic violations, the jurisdiction of the convictions, and the circumstances thereof.

6. Names of businesses owned or operated by the owner(s) or manager(s) within the last 10 years.

7. Investor and/or partner information.

D. Assessor’s parcel number of the parcel upon which the commercial nonmedical cannabis business will be located.

E. Draft operating agreement, in accordance with PMC 5.70.163.

F. Notarized written authorization from the property owner and/or landlord, to operate a commercial nonmedical cannabis business on the site.

G. Air Quality Acknowledgement. When deemed necessary by city staff, the applicant shall provide a calculation of the business’s anticipated emissions of air pollutants. The applicant shall also provide assurance that the business will comply with all best management practices established by the Bay Area Air Quality Management District (“BAAQMD”). No commercial nonmedical cannabis permit shall be issued to any business that would exceed the thresholds of significance established by the BAAQMD for evaluating air quality impacts for operation or construction.

H. Greenhouse Gas Emissions Acknowledgement. When deemed necessary by city staff, the applicant shall provide calculations of the anticipated greenhouse gas emissions for the operation of the business and, where applicable, the operation of the business. The applicant shall further demonstrate compliance with any applicable state, regional, or local plan for the reduction of greenhouse gas emissions. No commercial nonmedical cannabis permit shall be granted for any business that would violate any state, regional, or local plan for the reduction of greenhouse gases.

I. Water Supply Acknowledgement. When deemed necessary by the city engineer, the applicant shall demonstrate to the satisfaction of the city engineer that sufficient water supply exists for the use.

J. Wastewater Acknowledgement. When deemed necessary by the city engineer, the applicant shall demonstrate to the satisfaction of the city engineer that sufficient wastewater capacity exists for the proposed use.

K. To the extent that the applicant intends to use any hazardous materials in its operations, the applicant shall provide a hazardous materials management plan that complies with all federal, state, and local requirements for management of such substances. “Hazardous materials” includes any hazardous substance regulated by any federal, state, or local laws or regulations intended to protect human health or the environment from exposure to such substances.

L. Property owner(s) and applicant(s) shall sign the application and shall include affidavit(s) agreeing to abide by and conform to the conditions of the permit and all provisions of the Pittsburg Municipal Code pertaining to the establishment and operation of the nonmedical cannabis manufacturing business, including, but not limited to, the provisions of this article. The affidavit(s) shall acknowledge that the approval of the permit shall, in no way, allow any activity contrary to the Pittsburg Municipal Code, or any activity which is in violation of applicable laws.

M. Statement in writing by the applicant, that they will, to the fullest extent allowed by law, give preference to residents of the city for employee hiring.

N. Signed indemnity provision.

O. Any other information the city deems necessary.

Pursuant to applicable law, private information will be exempt from disclosure to the public, in order to protect an applicant’s privacy interest and safety. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.163 Commercial nonmedical cannabis business operating agreement.

The operating agreement shall set forth the terms and conditions under which the commercial nonmedical cannabis business will operate, which are in addition to the requirements of this article, including, but not limited to: a business operating plan as set forth in PMC 5.70.164; a security plan as set forth in PMC 5.70.165; payment of fees and other charges mutually agreed to; and additional terms and conditions that will protect and promote public health, safety, and welfare. The operating agreement shall be approved by the city council during a duly noticed, open and public meeting. The operating agreement may be approved concurrently with the commercial nonmedical cannabis permit. An approved operating agreement shall only be in force with a valid commercial nonmedical cannabis permit. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.164 Commercial nonmedical cannabis business operating plan.

An operating plan shall be in conformance with the requirements of this article, and shall include, at a minimum:

A. A list of the names, addresses, telephone numbers, and responsibilities of each applicant, manager and employee of the nonmedical cannabis manufacturing business.

B. Planned hours and days of operations of the nonmedical cannabis manufacturing business.

C. Floor plan of the proposed business facility.

D. If applicant is a commercial nonmedical cannabis manufacturing business, procedures to be utilized at the facility, including, as applicable, a description of which chemicals will be used, how chemicals will be stored, handled, and used; extraction and infusion methods; the transportation process; inventory procedures; cannabis track and trace procedures; inventory procedures; quality control procedures; and testing procedures.

E. If applicant is a commercial nonmedical cannabis manufacturing business, a detailed description of the product(s) to be manufactured at the business, including a description of the product’s intended final use by consumers.

F. Transportation plan detailing how and when nonmedical cannabis will be delivered to and from the commercial nonmedical cannabis business.

G. Procedures for identifying, managing, and disposing of contaminated, adulterated, deteriorated, or excess nonmedical cannabis and nonmedical cannabis products.

H. Procedures for inventory control to prevent diversion of nonmedical cannabis or nonmedical cannabis products to unintended uses; employee screening; storage of nonmedical cannabis; personnel policies; and recordkeeping.

I. Odor management plan detailing the reasonable steps that will be taken by the business to ensure that the odor of nonmedical cannabis and other physical impacts on neighboring properties will be minimized.

J. Policies and procedures for adopting, monitoring, implementing, and enforcing all requirements of this article.

The city shall have the discretion to require changes to a business’s operating plan. A commercial nonmedical cannabis permit holder is required to submit any proposed change(s) to an approved operating plan to the city manager for approval, at least 30 days before the proposed change(s) is/are to take effect. Failure to do so will result in a suspension and/or revocation of the permit. The city manager shall have the authority to suspend a permit, and the city council shall have the authority to revoke a permit. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.165 Commercial nonmedical cannabis business security plan.

A security plan must be developed in consultation with, and approved by, the city’s chief of police, to ensure the safety of persons working inside the business, and to protect the premises from theft, vandalism, and fire. The applicant’s approved security plan must be filed with the city manager or city manager’s designee. The applicant shall agree to implement all measures set forth in the security plan. The security plan shall include, but not be limited to, the following security measures:

A. Storing nonmedical cannabis and nonmedical cannabis products not being manufactured or tested, in a secure room(s). Access to this/these room(s) shall be limited to key officers or employees.

B. Installation of 24-hour security surveillance cameras of at least high definition quality, to monitor all entrances and exits to and from the premises, all interior spaces where cannabis, cash, or currency is being stored, and all interior spaces where diversion of cannabis could reasonably occur. Access to the security surveillance camera network shall be given to the police department.

C. Retention of 24-hour surveillance camera footage for at least 60 days. All surveillance camera footage shall be made immediately available to the chief of police or the chief of police’s designee, or to any other state or local law enforcement, upon request.

D. Professionally installed, maintained and monitored alarm system. Notice of the triggered alarm shall be sent to the police department.

E. Sensors installed to detect entry and exit from all secure areas.

F. Use of commercial-grade, nonresidential locking mechanisms at all points of ingress and egress.

G. Procedure whereby police are notified immediately upon any incidents of theft, vandalism, or any other instances stipulated by the chief of police.

H. Designation of a responsible individual, who will be the business’s point of contact with city, police, and other law enforcement entities.

I. Transportation plan detailing how and when nonmedical cannabis will be delivered to and from the commercial nonmedical cannabis business. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.170 Commercial nonmedical cannabis permit revocation and suspension.

A commercial nonmedical manufacturing permit issued under this article may be immediately suspended and/or revoked for any of the following reasons:

A. An operator/permit holder ceases to meet any of the minimum qualifications listed in this article.

B. An operator/permit holder fails to comply with the requirements of this article or any conditions of approval of the permit.

C. An operator/permit holder’s state license for commercial nonmedical cannabis operations is revoked, terminated, or not renewed.

D. An operator/permit holder’s commercial nonmedical cannabis permit is suspended or revoked.

E. The commercial nonmedical cannabis business fails to become operational within six months of obtaining its commercial nonmedical cannabis permit.

F. Once operational, the business ceases to be in regular and continuous operation for 90 consecutive days.

G. State law allowing the use for which the permit was issued is amended or repealed resulting in the prohibition of such use, or the city receives credible information that the federal government will commence enforcement measures against such businesses and/or local governments that allow them.

H. Circumstances under which the permit was granted have significantly changed and the public health, safety, and welfare require the suspension, revocation, or modification.

I. The permit was granted, in whole or in part, on the basis of a misrepresentation or omission of a material statement in the permit application.

J. An operator/permit holder is not current on city taxes or fees.

K. An operator/permit holder initiates changes to its operating plan or operating agreement without first obtaining city approval.

L. An operator/permit holder’s state license for commercial nonmedical cannabis operations is suspended. The city shall not reinstate the permit until documentation is received showing that the state license has been reinstated or reissued. It shall be the city’s discretion whether the city reinstates any permit.

The city manager shall have the authority to suspend a permit, and the city council shall have the authority to revoke a permit. A suspension and/or revocation of a permit automatically suspends and/or revokes the permit holder’s commercial nonmedical cannabis business operating agreement. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.180 Commercial nonmedical cannabis permit indemnification.

To the fullest extent permitted by law, commercial nonmedical cannabis permit holders shall indemnify, defend with counsel acceptable to city, and hold harmless, city and its officers, officials, employees, agents and volunteers (collectively, “indemnitees”) from and against any and all liability, loss, damage, claims, expenses, and costs, including without limitation attorney’s fees, costs and fees of litigation (collectively, “liability”) of every nature arising out of, pertaining to, or relating to the city’s suspension and/or revocation of a permit, except such liability caused by the sole gross negligence or willful misconduct of city. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.190 Dual application process.

A person may apply for a commercial medical cannabis permit and commercial nonmedical cannabis permit concurrently. [Ord. 18-1442 § 3 (Exh. A), 2018.]

5.70.200 Penalty.

A. Violation of this article is a public nuisance.

B. Nothing in this article in any way limits any other remedy that may be available to the city, or any penalty that may be imposed by the city, for violations of this chapter. Such additional remedies include, but are not limited to, injunctive relief, administrative citations, or a cause of action under the California Narcotics Nuisance Abatement Act (Health and Safety Code Section 11570). [Ord. 18-1442 § 3 (Exh. A), 2018; Ord. 16-1415 § 2, 2016. Formerly 5.70.150.]