HomeMy WebLinkAboutItem 4 2018_02_06City of Chula Vista
Staff Report
File#:17-0502, Item#: 4.
ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHULA VISTA MUNICIPAL CODE
SECTION 5.19 TO PERMIT,LICENSE,AND FULLY REGULATE COMMERCIAL CANNABIS
ACTIVITY WITHIN THE CITY OF CHULA VISTA (FIRST READING)
RECOMMENDED ACTION
Council place the ordinance on first reading.
SUMMARY
The City of Chula Vista desires to permit,license and fully regulate specified commercial cannabis
activity within the City limits and to authorize enforcement and prosecution of unlicensed businesses,
which bring dangerous and negative impacts to the community.
ENVIRONMENTAL REVIEW
Environmental Notice
The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality
Act State Guidelines Section 15061(b)(3);Section 15183 (Projects Consistent with a Community
Plan or Zoning);Section 15301 (Existing Facilities);and Section 15303 (New Construction or
Conversion of Small Structures).
Environmental Determination
The City Council finds that the adoption of this ordinance is exempt from environmental review under
the California Environmental Quality Act ("CEQA")pursuant to the following provisions of the CEQA
Guidelines, 14 Cal. Code of Regulations, Chapter 3:
1.The Ordinance is exempt under Section 15061(b)(3)because it can be seen with certainty
that there is no possibility that the activity in question may have a significant effect on the
environment.Further,there is no possibility that this Ordinance would create cumulative impacts that
are significant because this Ordinance does not authorize a total number of businesses in the City
than would otherwise be authorized;there are no other significant impacts that could occur as a
result of this ordinance,and there are no unusual circumstances that would cause any such
significant impacts;
2.The Ordinance is also exempt under Section 15183 (Projects Consistent with a Community
Plan or Zoning)since the types of businesses permitted by the Ordinance are consistent with those
contemplated by general plan and zoning;
3.The Ordinance is also exempt under CEQA Guidelines Section 15301 (Existing Facilities)
since permitted cannabis business under the Ordinance may locate in existing facilities,and any
additions to structures would be expected to be also exempt under 15301; and
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4.The Ordinance is exempt under Section 15303 (New Construction or Conversion of Small
Structures).The businesses will be established in an urban area,and given the build out of the
existing City,and sufficient existing leasable property,the amount of construction that would occur is
minimal to non-existent,and any such construction would be less than the thresholds established in
Section 15303.
Thus, no further environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The Adult Use of Marijuana Act (AUMA,adopted by the voters of the State of California in November
2016,decriminalized non-medical cannabis and established a regulatory system for non-medicinal
cannabis businesses in California.The Medicinal and Adult-Use Cannabis Regulation and Safety Act
(MAUCRSA),enacted by the California Legislature in June 2017,established a comprehensive set of
laws regulating both individual and commercial medicinal and non-medicinal cannabis activity
throughout the State of California.Under California law,local jurisdictions are authorized to either
permit or prohibit the operation of cannabis businesses within their boundaries.
The City has experienced the negative impacts and secondary effects associated with the operation
of unlawful cannabis businesses in the City.Unregulated businesses remain a source of danger and
disruption for residents and negative impacts brought by unregulated Cannabis businesses,the City
now desires to permit,license and fully regulate specified commercial cannabis activity within the
City.
DECISION-MAKER CONFLICT
Staff has determined that the action contemplated by this item is ministerial,secretarial,manual,or
clerical in nature and,as such,does not require the City of Chula Vista Council members to make or
participate in making a governmental decision,pursuant to California Code of Regulations Title 2,
section 18704(d)(1).Consequently,this item does not present a conflict of interest under the Political
Reform Act (Cal. Gov’t Code § 87100, et seq.)
Staff is not independently aware and has not been informed by any City of Chula Vista Council
member,of any other fact that may constitute a basis for a decision maker conflict of interest in this
matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals:Operational Excellence,Economic Vitality,Healthy
Community,Strong and Secure Neighborhoods and a Connected Community.The resolution
approving the ordinance to permit,license and fully regulate specified commercial cannabis activity
within the City supports the Economic Vitality and Strong and Secure Neighborhoods goals.
CURRENT YEAR FISCAL IMPACT
There will be no current fiscal year impact,as permitting and regulatory costs are anticipated to be
fully recovered by fees.
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ONGOING FISCAL IMPACT
It is anticipated that the ongoing cost to permit,license and fully regulate specified commercial
cannabis businesses will be recovered through the fees and taxes imposed and collected from each
business. Taxes and fees are estimated to be approximately $6 million a year.
ATTACHMENTS
1.CVMC Chapter 5.19 Commercial Cannabis
Staff Contact: Kelley Bacon
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Chula Vista Municipal Code
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Chapter 5.19
COMMERCIAL CANNABIS
Sections:
5.19.010 Purpose.
5.19.020 Definitions.
5.19.030 City License Required.
5.19.040 Maximum Number and Type of Authorized City Licenses.
5.19.050 City License Application Process.
5.19.060 Location Requirements for Cannabis Businesses.
5.19.070 Limitations on City’s Liability.
5.19.080 Operating and Conduct Requirements for All Licensees and Individuals.
5.19.090 Operating Requirements for Storefront Retailers.
5.19.100 Operating Requirements for Non-Storefront Retailers.
5.19.110 Operating Requirements for Cultivators.
5.19.120 Operating Requirements for Manufacturers.
5.19.130 Operating Requirements for Distributors.
5.19.140 Operating Requirements for Testing Laboratories.
5.19.150 Recordkeeping.
5.19.160 Security Measures.
5.19.170 Community Relations.
5.19.180 Promulgation of Regulations, Standards, and Other Legal Duties.
5.19.190 Compliance With Laws.
5.19.200 Right of Access & Testing.
5.19.210 Restrictions on Transfer, Change, or Alteration of City License or City Licensee.
5.19.220 Restrictions on Transfer, Change, or Alteration of Location.
5.19.230 Expiration of City License.
5.19.240 Renewal of City License.
5.19.250 Effect of State License Suspension, Revocation, or Termination.
5.19.260 Suspension or Revocation of City License.
5.19.270 Advertising and Marketing of Cannabis.
5.19.280 Enforcement and Penalties.
5.19.290 Effectiveness Conditioned on Passage of Tax Measure.
5.19.010 Purpose
The Adult Use of Marijuana Act (AUMA), adopted by the voters of the State of California in November 2016,
decriminalized non-medicinal cannabis and established a regulatory system for non-medicinal cannabis businesses
in California. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), enacted by the
California Legislature in June 2017, established a comprehensive set of laws regulating both individual and
commercial medicinal and non-medicinal cannabis activity throughout the State of California. Under California law,
local jurisdictions are authorized to either permit or prohibit the operation of cannabis businesses within their
boundaries.
The City has experienced the negative impacts and secondary effects associated with the operati on of unlawful
cannabis businesses within its corporate boundaries. Unregulated businesses remain a source of danger and
disruption for City residents and businesses. In response to changes in California law, and in an effort to mitigate the
negative impacts brought by unregulated Commercial Cannabis Activity, the City now desires to permit, license,
and fully regulate Commercial Cannabis Activities within the City.
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5.19.020 Definitions.
When used in this Chapter, the following words and phrases shall have the meanings ascribed to them below. Words
and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this Code, or shall
otherwise be defined by common usage. For definitions of nouns, the singular shall also include the plural; for
definitions of verbs, all verb conjugations shall be included. Any references to State Laws, including references to
any California statutes or regulations, is deemed to include any successor or amended version of the referenced
statute or regulations promulgated thereunder consistent with the terms of this Chapter.
“A-License” means a State License for Commercial Cannabis Activity related to products for individuals 21 years of
age and over without the need for a physician’s recommendation.
“A-Licensee” means a Person holding an “A-License.”
“Adult-Use Cannabis” or “Adult-Use Cannabis Product” means Cannabis or Cannabis Products for individuals 21
years of age and over without the need for a physician’s recommendation.
“Advertise” means to publish or disseminate an Advertisement.
“Advertisement” means any written or verbal statement, illustration, or depiction which is calculated to induce sal es
of Cannabis or Cannabis Products, including without limitation: any written, printed, graphic, or other material;
billboard, sign, or other outdoor, digital, indoor or point-of-sale display; individual carrying a display; public transit
card, other periodical, literature or publication, or in any similar media; except that such term shall not include:
A. Any label affixed to any Cannabis or Cannabis Products, or any individual covering, carton, or other wrapper of
such container that constitutes a part of the labeling.
B. Any editorial story, or other information (e.g., news release) in any periodical, publication or newspaper either in
print or electronic format, for the publication of which no money or valuable consideration is paid or promised,
directly or indirectly, by any Cit y Licensee or Person engaged in Commercial Cannabis Activity, and which is not
written by or at the direction of a City Licensee or Person engaged in Commercial Cannabis Activity.
“Applicant” means the Owner or Owners applying for a City License pursuant to this Chapter.
“Attractive to Youth” means products, packaging, labeling, or Advertis ements that are reasonably likely to
encourage individuals under age 21 to initiate cannabis consumption or otherwise to accidentally or purposely
consume Cannabis or Cannabis Products. Attractive to Youth items include:
A. Products that resemble a non-Cannabis consumer product of a type that is typically consumed by, or marketed to
Youth, such as a specific candy or baked treat.
B. Packaging or labeling that resembles packaging or labeling of a non -Cannabis consumer product of a type that is
typically consumed by or marketed to Youth.
C. Packaging or labeling that contains images, characters, or phrases that closely resemble image s, characters, or
phrases popularly used to advertise to Youth.
D. Advertising that mimics Advertising of a non-cannabis consumer product of a type that is typically consumed by,
or marketed to Youth.
E. Advertising that contains images, characters, or phrases that closely resemble images, characters, or phrases
popularly used to advertise to Youth.
“Cannabis” means all parts of the 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 stalk s, oil or cake made from the seeds of the plant, any other
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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 incap able of germination. For the purpose
of this definition, “Cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the California
Health and Safety Code.
“Cannabis Concentrate” means Cannabis that has undergone a process to concentrate one or more active
cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a
concentrate for purposes of this division. Cannabis Concentrate does not include any product intended for oral
ingestion by the final consumer. A Cannabis Concentrate is not considered food, as defined by Section 109935 of
the Health and Safety Code, or drug, as defined by Section 109925 of the Health and Safety Code.
“Cannabis Product” means Cannabis that has undergone a process whereby the plant material has been concentrated
and, with or without the addition of ingredients, been transformed into a product for sale. Cannabis products
include but are not limited to: Cannabis Concentrate, Edible Cannabis Products, Topical Cannabis, or an inhalant
containing Cannabis or Cannabis Product.
“Canopy” means the designated area(s) at a City Licensed Premises, except nurseries, that contain growing or
mature Cannabis plants at any point in time. The Canopy for each Premises shall be calculated in square feet and
measured using clearly identifiable boundaries of all area(s) that will contain growing or mature plants at any point
in time, including any and all space(s) within such boundaries. The Canopy for any Premises may be noncontiguous
provided that each unique area included in the total Canopy calculation for any Premises shall be separated by an
identifiable boundary. Identifiable boundaries may include, but are not limited to: interior walls, shelves,
greenhouse walls, hoop house walls, or fencing. If plants are being cultivated using a shelving system, the surface of
each level shall be included in the total Canopy calculation.
“Caregiver or Primary Caregiver” has the same meaning as that term is defined in Section 11362.7 of the California
Health and Safety Code.
“City” means the City of Chula Vista, California.
“City Attorney” means the City Attorney of the City of Chula Vista, or his/her designee.
“City License” means the regulatory license issued by the City pursuant to this Chapter to a Commercial Cannabis
Business that must be obtained prior to the commencement of any Commercial Cannabis Activity in the City.
“City Licensee” means any Person holding a City License.
“City Manager” means the City Manager of the City of Chula Vista, or his/her designee.
“Code” means The City of Chula Vista Municipal Code.
“Commercial Cannabis Activity” means the commercial cultivation, possession, manufacture, distribution,
processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of Cannabis or Cannabis
Products.
“Commercial Cannabis Business” or “Cannabis Business” means any Person lawfully engaged in a Commercial
Cannabis Activity.
“Council District” means any of four political subdivisions within the City by which City Council members are
elected.
“Crime of Moral Turpitude” means a crime involving deceit; fraud; a readiness to do evil; or an act of moral
depravity of any kind that has a tendency in reason to shake one’s confidence in the perpetrator’s honesty.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, gra ding, or trimming
of Cannabis, other than for personal use. A City License is required for the Cultivation of Cannabis pursuant to
5.19.030.
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“Cultivator” means a Person engaged in Cultivation.
“Customer” means an individual 21 years of age or over, or an individual 18 years of age or older who possesses a
physician’s recommendation.
“Day Care Center” has the same meaning as in Section 1596.76 of the California Health and Safety Code.
“Delivery” means the commercial transfer of Cannabis or Cannabis P roducts from a Non-Storefront Retailer
Premises to a Customer at a physical address. Delivery also includes the use by a Non-Storefront Retailer of any
technology platform to facilitate Delivery.
“Delivery Employee” means an employee of a Non-Storefront Retailer who conducts Deliveries.
“Development Services Director” means the Director of the City’s Development Services Department, or his/her
designee.
“Distribution” means the procurement, sale, and transport of Cannabis and Cannabis Products between Commercial
Cannabis Businesses. A City License is required for Distribution pursuant to 5.19.030.
“Distributor” means a Person engaged in Distribution.
“Edible Cannabis Product” means a Cannabis Product that is intended to be used, in whole or in part, for human
consumption, including, but not limited to chewing gum, but excluding products set forth in Division 15
(commencing with Section 32501) of the California Food and Agricultural Code. Edible Cannabis Product has the
same meaning as California Business and Professions Code section 26001.
“Finance Director” means the Director of the Chula Vista Finance Department, or his/her designee.
“Fire Chief” means the Chief of the Chula Vista Fire Department, or his/ her designee.
“Labor Peace Agreement” means an agreement between a licensee and any bona fide labor organization that is
required by State Laws and this chapter and that, at a minimum, protects public interests with the following
provisions: (1) a prohibition on labor organizations and members from engaging in picketing, work stoppages,
boycotts, and any other economic interference with a City Licensee’s Cannabis Business; (2) an agreement by the
City Licensee not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to
organize and represent, the City Licensee’s employees; access for a bona fide labor organization at reasonable times
to areas in which the City Licensee’s employees work, for the purpose of meeting with employees to discuss their
right to representation, employment rights under state law, and terms and conditions of employment. This type of
agreement shall not mandate a particular method of election or ce rtification of the bona fide labor organization.
“Licensee” means any Person holding a State License and a City License.
“Liquid Assets” means assets that can be readily converted into cash. Liquid Assets include, but are not limited to,
the following: funds in checking or savings accounts, certificates of deposit, money market accounts, mutual fund
shares, publicly traded stocks, and United States savings bonds. Liquid Assets does not mean household items,
furniture and equipment, vehicles, Cannabis plants or products, business inventory, or real property and
improvements thereto.
“Live Plants” means living Cannabis flowers and plants including seeds, immature plants, and vegetative stage
plants.
“M-License” means a State License for Commercial Cannabis Activity involving Medicinal Cannabis.
“M-Licensee” means a Person holding an M-License.
“Manager” means any individual Person(s) designated by a Commercial Cannabis Business to manage day-to-day
operations of the Commercial Cannabis Business or any Person acting with apparent management authority.
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Evidence of management authority includes, but is not limited to, evidence that the Person has the power to direct,
supervise, or hire and dismiss employees, control hours of operation, create policy rules , or purchase supplies.
“Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a Cannabis Product. A City
License to Manufacture is required pursuant to 5.19.030.
“Manufacturer” means a Person engaged in Manufacturing.
“Marketing” means any act or process of promoting or selling Cannabis or Cannabis Products, including, but not
limited to, sponsorship of events, offers such as tickets to events, point-of-sale advertising, branded merchandise,
pamphlets or product promotion materials.
“Medicinal Cannabis” or “Medicinal Cannabis Product” means Cannabis or a Cannabis Product for use pursuant to
the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the California Health and Safety
Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation.
“Minor” means an individual under 18 years of age.
“Non-Storefront Retailer” means a Person that offers Cannabis, Cannabis Products, or devices for the use of
Cannabis or Cannabis Products, either individually or in any combination, for retail Sale to Customers exclusively
by Delivery. A City License is required to operate a Non-Storefront Retailer Business pursuant to 5.19.030..
“Officer” means any of the following:
A. The chief executive officer of an entity engaged in a Commercial Cannabis Business.
B. A member of the board of directors of an entity engaged in a Commercial Cannabis Business.
C. A Person participating in the direction or control of an Applicant for a City License or any Owner of a
Commercial Cannabis Business within the City.
“Owner” means any of the following:
A. In the context of a Commercial Cannabis Business, a Person with an aggregate ownership interest of ten percent
(10%) or more in a Commercial Cannabis Business, whether a partner, shareholder, member, or the like, including
any security, lien, or encumbrance in an ownership interest that, upon default, could become an ownership interest
of 10% or more in a Commercial Cannabis Business.
B. In the context of a Premises, a Person with an aggregate ownership interest of ten percent (10%) or more in the
Premises, whether a partner, shareholder, member, or the like.
“Operation” means any act for which licensure is required under the provisions of this Chapter or State Laws, or any
commercial transfer of Cannabis or Cannabis Product.
“Patient or Qualified Patient” means a person who is entitled to the protections of California Health & Safety Code
Section 11362.5 as further provided in California Health & Safety Code Section 11362.7 .
“Person” means any individual, firm, partnership, joint venture, association, corporation, limited liability company,
estate, trust, business trust, receiver, syndicate, or any other group or combination of persons acting as a unit.
“Police Chief” means the Chief of the Chula Vista Police Department, or his/her designee.
“Premises” for Commercial Cannabis Activity means the designated structure or structures and land specified in
an application for a City License or, if a City License is issued, that is owned, leased, or otherwise held under the
control of the City Licensee where the Commercial Cannabis Activity will be or is conducted.
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“Private Parks” means privately owned outdoor premises containing recreational areas or playground equipment,
including tot-lots, swings, or similar equipment, designed for use by Minors. Where a Private Park is located
within a parcel containing other uses, the Private Park premises shall be defined as the area within which all
recreational areas or playground equipment designed for use by Minors is contained.
“Public Parks” means outdoor premises containing existing or proposed parks, including community parks,
neighborhood parks, mini-parks, and urban parks that are currently or proposed to be owned or operated by the
City or other governmental agency.
“Public Street” is any public right-of-way designated for vehicular use.
“Purchaser” means the Customer who is engaged in a transaction wit h a Commercial Cannabis Business for
purposes of obtaining Cannabis or Cannabis Products.
“Sell” and “Sale” mean any transaction whereby, for any consideration, title to Cannabis or Cannabis Products is
transferred from one person to another, and includes the Delivery of Cannabis or Cannabis Products pursuant to an
order placed for the purchase of the same and soliciting or receiving an order for the same.
“State” means the State of California.
“State Laws” means the laws of the State of California, which includes, but are not limited to, California Health and
Safety Code Sections 11000, et seq.; California Health and Safety Sections 11362.1 through 11362.45; California
Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code
Sections 11362.7, et seq.(Medical Marijuana Program); California Health and Safety Code Sections 26000, et
seq.(Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”)); the California Attorney
General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August,
2008, as such guidelines may be revised from time to time by action of the Attorney Genera l; California Labor Code
Section 147.5; California Revenue and Taxation Code Sections 31020 and 34010 through 34021.5; California Fish
and Game Code Section 12029; California Water Code Section 13276; all State regulations adopted pursuant to
MAUCRSA; and all other applicable laws of the State of California.
“State License” means a license issued by the State of California, or one of its departments or divisions, under State
Laws to engage in Commercial Cannabis Activity. License includes both an “A -license” (adult use) and an
“M-license” (medicinal use), as defined by States Laws, as well as a testing laboratory license.
“State Licensee” means any Person holding a State License.
“Storefront Retailer” means a Person that offers Cannabis, Cannabis Products, or devices for the use thereof, either
individually or in any combination, for retail sale to Customers exclusively at Premises providing access to the
public. A City License is required to operate a Storefront Retailer Business pursuant to 5.19.030.
“Testing Laboratory” means a laboratory, facility, or entity in the State that offers or performs tests of Cannabis or
Cannabis Products and that is both of the following:
A. Accredited by an accrediting body that is independent from all other persons involved in Commercial Cannabis
Activity in the State; and
B. Licensed by the State.
A City License is required to operate a Testing Laboratory pursuant to 5.19.030.
“Testor” means a Licensee that offers or performs tests of Cannabis or Cannabis Products at a Testing Laboratory.
“Topical Cannabis” means a product intended for external application and/or absorption through the skin. A Topical
Cannabis product is not considered a drug as defined by Section 109925 of the California Health an d Safety Code.
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“Transport” means transfer of Cannabis or Cannabis Products from the Premises of one Licensee to the Premises of
another Licensee, for the purposes of conducting Commercial Cannabis Activity authorized by State Laws and this
Chapter.
“Treatment Center” means a medical treatment or counseling facility licensed by the California Department of
Health Care Services and located outside of a residential zone that treats five or more persons with substance abuse
conditions in one calendar year.
“Youth” means an individual under 21 years of age.
“Youth Center” means any public or private facility that is primarily used to host recreational or social activities for
minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club
facilities, video arcades, or similar amusement park facilities.
“Youth-Oriented Business” means any for-profit or non-profit business where the majority of individuals who
patronize, congregate, or assemble at the business location are less than 21 years old.
5.19.030 City License Required.
No Person may engage in any Commercial Cannabis Business and/or in any Commercial Cannabis Activity within
the City unless that Person: (1) has a valid State License authorizing such business or activity; (2) has a valid City
License authorizing such business or activity; and (3) is currently in compliance with all other applicable state and
local laws and regulations pertaining to such business or activity. No City License will be available for issuance
until, at the earliest, January 1, 2019. Except as expressly authorized in this Chapter, all Commercial Cannabis
Businesses and Commercial Cannabis Activities are prohibited within the City.
Notwithstanding the foregoing, the Delivery of Cannabis or Cannabis Product originating from a Commercial
Cannabis Business licensed in accordance with California Business and Professions Code section 26050(a)(17) is
permitted without a City License, so long as the Delivery originates from a licensed Commercial Cannabis Business
outside the City of Chula Vista, and is conducted in accordance with all codified and administrative state and local
laws and regulations, including but not limited to the requirements of section 5.19.100(C) below.
5.19.040 Maximum Number and Types of Authorized City Licenses.
Commencing January 1, 2019, the authorized number of City Licenses for each type of Commercial Cannabis
Business within the City is as follows:
A. Storefront and Non-Storefront Retailer Licenses: Twelve (12) total, with no more than three (3 ) City Licenses
available for Operation within each Council District. Of the three (3) City Licenses available for Operation within
each Council District, no more than two (2) City Licenses shall be available for Storefront Retailers.
B. Other License Types: The City is also authorized to issue, without numerical limit, City Licenses for the
following Commercial Cannabis Businesses:
1. Manufacturer;
2. Distributor;
3. Testing Laboratory; and
4. Indoor Cultivator.
C. Storefront Retailer City Licenses shall be limited to A-Licensees only. All other City License types may be
available to A-Licensees and M-Licensees.
D. No City License shall issue for any Commercial Cannabis Business type other than those identified in
subsections (A) through (C) above.
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E. The City shall take no action to increase the maximum number of authorized Storefront Retail Licenses until July
1, 2020. After July 1, 2020, the City Council may consider increasing the maximum number of authorized Storefront
Retail Licenses, but only after receiving and considering a report from the City Manager regarding any observed or
projected adverse impacts on the community from such businesses.
F. The City Council may make a referral to the City Manager at any time for a recommendation on if and how the
City should decrease the total number of City Licenses for any or all types of Commercial Cannabis Businesses , or
to impose a cap on previously uncapped license types. If the City Council proceeds with a decrease in the total
number of City Licenses for any or all types of Commercial Cannabis Businesses within the City, any such action
shall include provisions for determining which, if any, existing City Licenses shall be eliminated and when
Operations for eliminated City Licenses shall cease.
5.19.050 City License Application Process.
The following procedures shall govern the application process for the issuance of any City License under this Chapter.
A. Phase One Application Process
1. Any Applicant seeking to obtain a City License to operate a Commercial Cannabis Business within the City
shall submit a Phase One Application to the City, signed under penalty of perjury, using the form adopted by the
City for that purpose. Among other information, each Phase One Application must contain the following:
a. Applicant’s name, address, telephone number, and e-mail address;
b. Names and addresses of all Owners, Officers, and Managers.
c. If any Applicant or Owner is a business entity or any other form of entity, the entity’s legal status, formation
documents, and proof of registration with, or a certificate of good standing from, the California Secretary of State, as
applicable.
d. The type of City License the Applicant is seeking.
e. A description of any and all Commercial Cannabis Activity engaged in by the Applicant and all Owners,
Officers, and Managers over the previous 5 years, including, but not limited to, the location of such activity and a copy
of any permits, licenses, or other written forms of permission for such activity by a local or state government entity.
An Applicant for a Storefront Retailer, Non-Storefront Retailer, Manufacturer, or Cultivator City License must
demonstrate one of the following:
i. That at least one Owner and one Manager shall each have engaged in a minimum of twelve (12)
consecutive months of lawful Commercial Cannabis Activity, within the previous 5 years, in a jurisdiction permitting
such Commercial Cannabis Activity. The 12 consecutive months of lawful Commercial Cannabis Activity
demonstrated must be of a type substantially similar to that allowed by the City License for which the Applicant is
applying; or
ii. That at least one Owner and one Manager shall each have a minimum of thirty-six (36) consecutive
months of experience managing or operating a lawful alcohol or pharmaceutical business licensed and regulated by a
state or the federal government. The 36 months of experience demonstrated must be of a type substantially similar to
that allowed by the City License for which the applicant is applying.
f. Documentation demonstrating a minimum of $300,000 in Liquid Assets available under the Applicant’s
control.
g. A business plan that contains, at a minimum, the following: a defined scope of planning and capital
improvements; estimated revenues and expenses; and a demonstrated ability to operate in a highly regulated industry.
h. An operating plan that contains, at a minimum, the following: provisions for adequate staffing, security,
employee training, consumer education, and compliance with State and local laws and regulations.
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i. Submission by each individual Applicant, Owner, Officer, and Manager of fingerprints and other information
deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. If the Applicant
or any Owner or Manager is an entity, the Police Chief, in his/her discretion, may require individual employees,
officers, members, representatives, or partners of each entity to submit fingerprints and other information deemed
necessary by the Police Chief for a background check by the Chula Vista Police Department.
j. A statement, under penalty of perjury, by each individual Applicant, Owner, Officer, and Manager, that all
information provided thereby is true and correct and that he/she has not conducted Commercial Cannabis Activity in
violation of any state or local law.
k. If an individual Applicant, Owner, Officer, or Manager, or any entity such individual has been associated with
in such capacity, has been denied authorization to conduct Commercial Cannabis Activity in any jurisdiction and/or
such Person’s authorization to conduct Commercial Cannabis Activity in any jurisdiction has been suspended or
revoked at any time, a description of each denial, suspension and/or revocation and documentation demonstrating a
material change in circumstances since such denial, suspension, or revocation.
l. For an Applicant with 10 or more employees, a statement that the Applicant will enter into, or demonstrate that
it has already entered into, and abide by the terms of a Labor Peace Agreement.
m. The Finance Director or Police Chief may request such additional information, as he/she deems necessary
including documents, from the Applicant to evaluate Applicant’s qualifications. If the Applicant fails to provide such
additional information in the time allotted, the Application shall be considered abandoned.
2. The Phase One Application shall be accompanied by a nonrefundable application fee established by resolution of
the City Council.
3. The Phase One Application shall be reviewed by the Finance Director for completeness and to determine if
City’s minimum City License qualifications have been satisfied. Phase One Applications may be rejected by the
Finance Director for any of the following reasons in his/her discretion:
a. The application is received after the designated time and date;
b. The application is not in the required form and/or is incomplete. A Phase One Application shall not be
considered complete until the Finance Director has: (i) determined that all requirements of the application have been
provided to the city; (ii) received the nonrefundable Phase One application fee; and (iii) obtained all other information
the Finance Director determines necessary to make a decision whether the Application meets the requirements of State
Laws or this Code.
c. The Applicant has failed to pay the application fee required by this Chapter and specified by City Council
resolution;
d. The Applicant has failed to demonstrate the financial capacity to operate its proposed Commercial Cannabis
Business and to fulfill its obligations under this Chapter.
e. The Applicant has made a false, misleading or fraudulent statement or omission of fact in the application or in
the application process.
f. The Applicant, an Owner, Officer, or Manager is under twenty-one years of age.
g. The Applicant or any Owner is an entity that is incorporated outside of the United States.
h. The Applicant has failed to demonstrate the minimum experience required in accordance with section
5.19.050(A)(1)(e), above.
i. The Applicant, or any Owner, Officer, or Manager, has had his/her/its authorization to conduct Commercial
Cannabis Activity in any jurisdiction suspended or revoked at any time, and such person has not demonstrated a
material change in circumstances or corrective action since such suspension, and/or revocation.
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4. Phase One applications accepted by the Finance Director as minimally qualified shall be forwarded to the
Police Chief for review and completion of any and all required background checks. Phase One Applications may be
rejected by the Police Chief for any of the following reasons in his/her discretion:
a. The Applicant has made a false, misleading or fraudulent statement or omission of fact in the application or in
the application process;
b. The Applicant, any Owner, Manager, or Officer, or any other individual identified pursuant to
5.19.050(A)(1)(i) has failed to submit fingerprints and other information deemed necessary by the Police Chief for a
background check by the Chula Vista Police Department.
c. The Applicant or any Owner, Officer, or Manager has been convicted of a felony.
d. The Applicant or any Owner, Officer, or Manager has been convicted of any Crime of Moral Turpitude or any
offense involving the use of a weapon.
e. There are charges pending against the Applicant, or any Owner, Officer, or Manager for a felony offense, a
Crime of Moral Turpitude, or an offense involving the use of a weapon.
f. The Applicant, or any Owner, Officer, or Manager has been adversely sanctioned or penalized by the City, or
any other city, county, or state, for a material violation of state or local laws or regulations related to Commercial
Cannabis Activity or to pharmaceutical or alcohol licensure.
5. The Finance Director or Police Chief shall serve the Applicant, either personally or by first class mail addressed
to the address listed on the application, with dated written notice of the decision to approve or reject the Phase One
Application. This notice shall state the reasons for the action, the effective date of the d ecision, and the right of the
Applicant to appeal the decision to the City Manager. The City Manager’s determination regarding the Phase One
Application shall be final. The City Manager shall provide dated written notice to the Applicant, either personally or
by first class mail addressed to the address listed on the application, of the City Manager’s determination and the right
of the Applicant to seek judicial review of the City Manager’s determination.
6. Applicants who are approved by the Finance Director and Police Chief under the Phase One Application process,
or by the City Manager upon appeal, shall be deemed q ualified to submit a Phase Two Application. If the number of
deemed “qualified” Phase One Applicants for Storefront Retail or Non-Storefront Retail Licenses exceeds the number
of then available City Licenses for those license types, a lottery system established by the City shall be used to
determine which of the qualified Applicants is invited to submit a Phase Two Application.
7. Phase One approvals shall be valid for a maximum period of six (6) months in order to allow the Applicant to
complete the Phase Two process. City regulations issued pursuant to this Chapter, may provide for extensions of this
time periods in limited, defined circumstances.
B. Phase Two Application Process
1. The Phase Two Application shall be submitted in writing, signed under penalty of perjury, using the form
adopted by the City for that purpose. Among other information, each Phase Two Application m ust contain the
following:
a. Proposed Premises location and description.
b. Information and diagrams demonstrating that the proposed Premises location complies with the applicable
requirements of this Chapter, the City’s zoning code, and State Laws.
c. Identification of all Owners of the proposed Premises location and a copy of all agreements for site control.
d. Submission by each individual Owner of the proposed Premises location of fingerprints and other
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information deemed necessary by the Police Chief for a background check by the Chula Vista Police Department. If an
Owner of the Proposed Premises location is an entity, the Police Chief, in his/her discretion, may require individual
employees, officers, members, representatives, or partners of each ent ity to submit fingerprints and other information
deemed necessary by the Police Chief for a background check by the Chula Vista Police Department.
e. Proposed emergency action and fire prevention plan that includes, at a minimum, employee roles and
responsibilities; emergency notification and egress procedures; fire hazard identification, maintenance, and
procedures; and fire and life safety system identification, maintenance, and procedures.
f. Proposed security plan that includes, at a minimum, employee roles and responsibilities; entry/exit
security and procedures; security guard coverage and duties; lighting, alarm, and camera placement and operation;
limited-access area identification and procedures; cash handling processes and procedures, and demonstrates
compliance with section 5.19.160.
2. The Phase Two Application shall be accompanied by a non-refundable application fee established by resolution
of the City Council.
3. As part of the application process, the Applicant shall be required to obtain all required land use approvals from
the City and/or any other governmental agency with jurisdiction, including a certification from the Development
Services Director certifying that the business is an allowed use in the zone where it is locat ed, and the proposed site
meets all of the requirements of this Chapter and Title 19 of this Code.
4. As a condition precedent to the City’s issuance of a City License pursuant to this Chapter, in the event the
Premises will be leased from another Person, the Applicant shall be required to provide a signed and notarized
statement from the Owner(s) of the Premises, acknowledging that the Owner(s) of the Premises has read this Chapter
and consents to the operation of the Commercial Cannabis Business on the Premises.
5. Phase Two Applications shall be reviewed and are subject to approval by the Development Services Director,
the Fire Chief and the Police Chief. A Phase Two Application may be rejected by the Development Services
Director, Fire Chief, and/or Police Chief for any of the following reasons:
a. The application is received after the designated time and date;
b. The application is not in the required form and/or is incomplete. A Phase Two Application shall not be
considered complete until the Development Services Director, Fire Chief, and Police Chief have: (i) determined that
all requirements of the application have been provided to the city; (ii) received the nonrefundable Phase Two
application fee; and (iii) obtained all other information the Development Services Director, Fire Chief, and Police
Chief determine is necessary to make a decision whether the application meets the requirements of State Laws or this
Code.
c. The application fails to demonstrate that the proposed Premises location complies with this Chapter, the City’s
zoning code, and State Laws.
d. The Applicant has made a false, misleading or fraudulent statement or omission of fact in the application or in
the application process;
e. An Owner of the proposed Premises location or any other individual identified pursuant to 5.19.050(B)(1)(d)
has failed to submit fingerprints and other information deemed necessary by the Police Chief for a background check
by the Chula Vista Police Department.
f. An Owner of the proposed Premises location has been convicted of a felony.
g. An Owner of the proposed Premises location has been convicted of any Crime of Moral Turpitude or any
offense involving the use of a weapon.
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h. There are charges pending against an Owner of the proposed Premises location for a felony offense, a Crime of
Moral Turpitude, or an offense involving the use of a weapon.
i. An Owner of the proposed Premises location has been adversely sanctioned or penalized by City, or any other
city, county, or state, for a material violation of state or local laws related to Commercial Cannabis Activity.
6. The Development Services Director, Fire Chief, or Police Chief shall serve the Applicant, either personally or
by first class mail addressed to the address listed on the application, with dated written notice of the decision to
approve or reject the Phase Two Application. This notice shall state the reasons for the action, the effective date of
the decision, and the right of the Applicant to appeal the decision to the City Manager. The City Manager’s
determination regarding the Phase Two Application shall be final. The City Manager shall provide dated written
notice to the Applicant, either personally or by first class mail addressed to the address listed on the application, of the
City Manager’s determination and the right of the Applicant to seek judicial review of the City Manager’s
determination.
7. Upon obtaining final approval of a Phase Two Application, an applicant shall be issued a conditional City
License. The conditional City License shall be valid for a period of six (6) months to allow the Applicant to take all
necessary actions to open its Commercial Cannabis Business. If the business is not fully permitted and operating by
the end of this six (6) month period (the “Conditional License Period”), the conditional City License will be void
without the need for further action by the City. Notwithstanding the foregoing, if the only remaining action necessary
for an Applicant holding a conditional City License is the State’s determination on such Applicant’s pending State
License application, the validity of the conditional City License shall be extended until the earlier to occur of: (a) the
State’s determination on the issuance of the pending State License application, or (b) the date falling 6 months after the
expiration of the Conditional License Period. City regulations issued pursuant to this Chapter may provide for other
extensions of the Conditional License Period in limited, defined circumstances.
C. Requirements Prior to Commencement of Operation. Prior to commencing Operations under a City License, in
addition to any and all other applicable State and local requirements, a City Licensee must comply with the
following requirements:
1. Fees and Charges. Pay in full all fees and charges required for the Operation of a Commercial Cannabis
Activity. Fees and charges associated with the Operation of a Commercial Cannabis Business shall be established b y
resolution of the City Council which may be amended from time to time.
2. Business License Tax. Pay to the City a business license tax as required by Code Chapter 5.02.
3. Permits and Approvals. Obtain all applicable planning, zoning, building, an d other applicable licenses,
permits, and approvals from the relevant City department or division that may be applicable to the Premises and the
zoning district in which such business will be located.
4. Final Security Plan Approval. Obtain final security plan approval from the Police Chief for the Premises and
Operation of the Commercial Cannabis Business.
5. Final Emergency Action and Fire Prevention Plan Approval. Obtain final safety approval from the Fire Chief
for the Premises and Operation of the Commercial Cannabis Business.
6. Employee Work Permits. Obtain from the Police Chief work permits for each employee of the Commercial
Cannabis Business whose name did not appear on an Application for a City License. Each employee shall submit
their application for such work permit to the Police Chief, which application shall be under oath and shall include,
among other things, the name, address, proposed job title, and past criminal record, if any, of the employee and shall
be accompanied by the fingerprints of the employee. An application for an employee work permit shall be
accompanied by the required fee(s) or the required renewal fee(s). The work permit, when issued, shall be valid for
one year. The Police Chief may revoke, deny, or not renew any e mployee work permit upon finding that any of the
factors outlined in sections 5.19.050(A)(3) through (A)(4) and/or sections 5.19.270(F) through (H) apply.
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7. State License. Submit proof that the necessary State License has been obtained and that Applica nt remains in
good standing thereunder.
8. Agreement. Submit a fully executed agreement as required by section 5.19.070.
9. Insurance. Submit proof of insurance at coverage limits and with conditions thereon determined necessary and
appropriate by the City’s insurance and claims administrator.
10. Operational Requirements. Demonstrate compliance with any and all pre-opening operational requirements
that may apply as specified in section 5.19.080 through 5.19.140, below, and the ability to comply w ith and all
applicable and ongoing operational requirements.
D. General Rules
1. If a Phase One or Phase Two application is denied or a corresponding conditional City License expires, no
Applicant or Person named therein will be qualified to submit a new Phase One application until the passage of one
year from the date of the denial or expiration.
2. Phase One and Phase Two applications shall include such supplemental materials as required by the rules and
regulations adopted pursuant hereto. The City may, at the City Manager’s discretion, require additional
documentation associated with any application as may be necessary to enforce the requirements of State Laws and
this Code.
3. Applicants shall have no right to operate under a City License until a City License is actually issued thereto by
the City. Each Applicant assumes the risk that, at any time prior to the issuance of a license, the City Council may
terminate or delay the program created under this Chapter.
4. Issuance of a City License does not create a land use entitlement. Furthermore, no City License will be
officially issued and no Applicant awarded a City License may begin operations until the City Licensee is fully in
compliance with all state and local laws and regulations, including but not limited to State Laws.
5. The City reserves the right to reject or approve any and all applications and conditional licenses based on the
standards set forth in this Chapter, or otherwise in its sole discretion, taking into account the health, safety and welfare
of the community, and in accordance with its general police powers authority.
5.19.060 Location Requirements for Cannabis Businesses
As set forth above in Code Section 5.19.030, a limited number of City Licenses for Commercial Cannabis Businesses
shall be authorized and issued by the City. In locating such businesses, City Licensees shall be further subject to the
following requirements.
A. In General. The licensed area of a Commercial Cannabis Business shall be a contiguous area and shall only be
occupied by one Licensee.
B. Storefront Retailers.
1. Allowed Zones. Subject to the separation requirements set forth below, Storefront Retailers shall only be allowed
in the following zones: (a) C-0 Administrative and Professional Office; (b) C-N Neighborhood Commercial; (c) C-C
Central Commercial; (d) C-V Visitor Commercial; (e) C-T Thoroughfare Commercial; (f) other Commercial Zones in
Sectional Planning Area Plans that allow retail sales uses; and (g) with a Conditional Use Permit, in the following
Industrial Zones: I-L Limited Industrial; I-R Research Industrial; I General Industrial; and equivalent Industrial
Zones in Sectional Planning Area Plans that allow industrial uses.
2. Special Rules for Storefront Retailers in Industrial Zones. In addition to any and all other applicable Code
requirements, Storefront Retailers proposed to be located in Industrial Zones (a) must be located in buildings with
entrances that face, and are within 100 feet of a Public Street; and (b) must comply with parking and sign regulations
applicable to retail sales businesses in commercial zones.
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3. Separation Requirements.
a. Storefront Retailers shall not be located within 1,000 feet of any Day Care Center, Youth Center, or any public
or private school providing instruction for kindergarten or any grades 1 through 12.
b. Storefront Retailers shall not be located within 600 feet of any Treatment Facility; Youth Center;
Youth-Oriented Business; Public Park; or Private Park.
c. Storefront Retailers shall not be located within 150 feet of any existing residential use or proposed exclusive
residential use
4. Storefront Retailers are retail sales uses for purpose of the Code. Except as otherwise provided in this Chapter, all
retail sales use requirements for the allowed zone in which the business is located shall apply.
C. Non-Storefront Retailers.
1. Allowed Zones. Subject to the separation requirements set forth below, Non -Storefront Retailers shall only be
allowed in following Industrial Zones: I-L Limited Industrial; I-R Research Industrial; I General Industrial; and
equivalent Industrial Zones in Sectional Planning Area Plans that allow industrial uses.
2. Separation Requirements. Non-Storefront Retailers shall not be located within 150 feet of any zone allowing
residential uses.
3. Non-Storefront Retailers are industrial uses for the purpose of the Code. Except as otherwise provided in this
Chapter, all industrial use requirements for the allowed zone in which the business is located shall apply.
D. Manufacturers; Distributors; Testing Laboratories; and Cultivators.
1. Allowed Zones. Subject to the separation requirements set forth herein, below, Manufacturers, Distributors,
Testing Laboratories, and Cultivators shall be allowed in following Industrial Zones: I-L Limited Industrial; I-R
Research Industrial; I General Industrial; and equivalent Industrial Zones in Sectional Planning Area Plans that allow
industrial uses.
2. Separation Requirements. No Manufacturer, Distributor, Testing Laboratory or Cultivator shall be located within
150 feet of any zone allowing residential uses.
3. Manufacturers, Distributors, Testing Laboratories, and Cultivators are industrial uses for the purpose of the
Code. Except as otherwise provided in this Chapter, all industrial use requirements for the allowed zone in which the
business is located shall apply.
E. Standards for Measurement of Separation Distances. For purposes of this Section, separation distances between
uses shall be measured as follows:
1. Measuring Points Established. Separation distance between uses shall be measured horizontally in a continuous
series of straight lines that connect the two closest “measuring points” of each business or use as set forth herein,
below.
a. For a Commercial Cannabis Business, the “measuring point” shall be the center point of the public entrance
closest to a Public Street.
b. For a Day Care Center, Youth Center, Youth Oriented Business, or Treatment Facility, the “measuring point”
shall be the center point of the public entrance closest to a Public Street.
c. For a public or private school, Public Park, Private Park, residential use or residential zone, the “measuring
point” shall be the point located on the legal parcel boundary line abutting a Public Street that is closest to the
“measuring point” of the Commercial Cannabis Business at issue.
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2. Measurement Paths; Examples. Measurements between public entrances shall start at the “measuring point” of
Commercial Cannabis Business and proceed in a continuous line to the closest property line of the Public Street,
measured perpendicular to the Public Street. The measurement shall then continue along the property lines of the
Public Street fronts, and in a direct line across intersections along the shortest pedestrian route toward the “measuring
point” of the separated use until it reaches such “measuring point”. See illustration below.
3. Measurements between public entrances and legal parcel boundary lines shall start at “measuring point” of the
Commercial Cannabis Business and proceed in a continuous line to the closest property line of the Public Street,
measured perpendicular to the Public Street. The measurement shall then continue along the property lines of the
public street front(s), and in a direct line across intersections along the shortest pedestrian route towards the
“measuring point” of the separated use until it reaches such “measuring point”. See illustration below.
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4. Where a public or private school, Public Park, Private Park, or residential use or residential zone are directly
adjacent to or across a Public Street from a Storefront Retailer or Non-Storefront Retailer, the separation distance shall
be measured between the respective “measuring points” without regard to a Public Street or intersections. See
illustration below.
5. Where a Commercial Cannabis Business and a Day Care Center, Youth Center, Treatment Facility,
Youth-Oriented Business or existing residential use are on the same parcel, or contiguous parcels, the separation
distance shall be measured in a straight line connecting their “measuring points”. See illustration below.
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6. Interpretations and determinations of separation distances shall be made by the Development Services Director.
Exhibits from a Licensed Land Surveyor may be required by the City to make a final decision on compliance with the
separation requirements of this subsection.
5.19.070 Limitations on City’s Liability; Licensee’s Indemnity Obligations
To the maximum extent allowed by law, the City shall not incur or assume any direct or indirect liability to any
Applicant, government agency, or third party as a result of having issued a City License pursuant to this Chapter, or
otherwise approving the Operation of any Commercial Cannabis Business. As a condition to the issuance of any
City License, the Applicant shall be required to enter into and fulfill all requirements of an agreement, in a form
approved by the City Attorney, whereby all Owners agree to (a) indemnify, protect, defend (at Owner’s sole cost
and expense), and hold harmless the City, and its officers, officials, employees, representatives, and agents from any
and all claims, losses, damages, injuries, liabilities or losses that arise out of, or that are in any way related to, the
City’s issuance of the City License, the City’s decision to approve the Operation of the Commercial Cannabis
Business or Activity, the process used by the City in making its decision, City Licensee’s Operation of its
Commercial Cannabis Business, or the alleged violation of any federal, state or local laws by the Commercial
Cannabis Business or any of its officers, employees or agents; and (b) provide evidence of and maintain insurance at
coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City
Risk Manager.
5.19.080 Operating and Conduct Requirements for All Licensees and Individuals.
A. No person shall consume Cannabis and/or Cannabis Products on the Premises of a Commercial Cannabis
Business.
B. No person shall cause or license the sale, dispensing, or consumption of alcoholic beverages or tobacco products
on the Premises of a Commercial Cannabis Business.
C. No Cannabis or Cannabis Products shall be visible from the exterior of any Premises issued a City License, or on
any of the vehicles owned or used as part of a Commercial Cannabis Business. No outdoor storage of Cannabis or
Cannabis Products is permitted at any time.
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D. Each Commercial Cannabis Business shall have in place a point-of-sale or management inventory tracking
system to track and report on all aspects of the Commercial Cannabis Business including, but not limited to, such
matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may
be deemed necessary by the City. The Commercial Cannabis Business shall ensure that such information is
compatible with the City’s record-keeping systems. In addition, the system must have the capability to produce
historical transactional data for review. Furthermore, any system selected must be approved and authorized by the
Finance Director prior to being used by the City Licensee.
E. All Cannabis and Cannabis Products sold, tested, distributed or manufactured shall be cultivated, manufactured,
and transported by Commercial Cannabis Businesses that maintain operations in full conforman ce with State Laws,
State regulations, local laws, and local regulations.
F. All Commercial Cannabis Businesses shall have a Manager on the premises at all times during hours of operation.
G. Each Commercial Cannabis Business shall provide the City Manager with the name, telephone number (both
land line and mobile, if available) of an on-site Manager or Owner to whom emergency notice may be provided at
any hour of the day.
H. Each Commercial Cannabis Business premises shall be visibly posted with a clear and legible notice indicating
that smoking, ingesting, or otherwise consuming cannabis on the Premises or in the areas adjacent to the
Commercial Cannabis Business is prohibited.
I. Persons under the age of twenty-one (21) years shall not be allowed and are not allowed on the Premises of a
Commercial Cannabis Business, and shall not be allowed and are not allowed to serve as a driver for a
Non-Storefront Retailer.
J. It shall be unlawful and a violation of this Chapter for any Person to employ an individual at a Commercial
Cannabis Business who is not at least twenty-one (21) years of age.
K. Odor Control. Odor control devices and techniques shall be incorporated in the Premises of all Commercial
Cannabis Businesses to ensure that odors from Cannabis are not detectable off-site. Commercial Cannabis
Businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the
Commercial Cannabis Business that is distinctive to its Operation is not detected outside of the Premises, anywhere
on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways,
breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or
within any other unit located inside the same building as the Commercial Cannabis Business. As such, Commercial
Cannabis Businesses must install and maintain the following equipment, or any other equipment which the
Development Services Director determines is a more effective method or technology:
1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;
2. An air system that creates negative air pressure between the Commercial Cannabis Business’s interior and
exterior, so that the odors generated inside the Commercial Cannabis Business are not detectable on the outside of
the Commercial Cannabis Business.
L. Safety and Security Plans. Each Commercial Cannabis Business must comply with all requirements of the
security plan approved by the Police Chief and with all safety requirements of the Emergency Action and Fire
Prevention Plan approved by the Fire Chief.
M. Display of City License and City Business License. The original copy of the City License and the City Business
License shall be posted inside the Premises of the Commercial Cannabis Business in a location readily -visible to the
public.
N. Employee Identification. Each and every employee of a City Licensee must, at all times when present on a
Premises and while conducting a Delivery, wear an identification badge containing their photograph, age, the name
of the City Licensee for whom they are employed, and, if the employee is a Manager, the employee’s job title.
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O. Delaying or Lingering Prohibited. The City Licensee shall take reasonable steps to prevent individuals from
delaying or lingering on the Premises without a lawful purpose.
P. Cannabis Use on Premises Prohibited. The City Licensee shall take reasonable steps to prevent the use and
consumption of Cannabis or Cannabis Products on the Premises.
Q. Licenses and other Approvals. Throughout the Operation of a Commercial Cannabis Business, the City Licensee
must maintain all applicable planning, zoning, building, and other applicable licenses, permits, and approvals from
the relevant City department or division that may be applicable to t he zoning district in which the Commercial
Cannabis Business Premises is located.
R. Persons with Disabilities. Nothing in this Chapter exempts a Commercial Cannabis Business from complying
with all applicable local, State and federal laws and regulations pertaining to persons with disabilities.
S. Discrimination. No Commercial Cannabis Business may discriminate or exclude patrons in violation of local,
State and federal laws and regulations.
T. Fees and Charges.
1. No Person may conduct Commercial Cannabis Activity without timely paying in full all fees and charges
required associated with the Operation of a Commercial Cannabis Activity. Fees and char ges associated with the
Operation of a Commercial Cannabis Activity shall be established by resolution of the City Council which may be
amended from time to time.
2. City Licensees authorized to Operate under this Chapter shall pay all sales, use, busi ness and other applicable
taxes, and all license, registration, and other fees required under federal, State and local law. Each Commercial
Cannabis Business shall cooperate with City with respect to any reasonable request to audit the Commercial
Cannabis Business’ books and records for the purpose of verifying compliance with this section, including but not
limited to a verification of the amount of taxes required to be paid during any period.
5.19.090 Operating Requirements for Storefront Retailers.
A. A Storefront Retailer shall not Sell Medicinal Cannabis or Medicinal Cannabis Products.
B. A Storefront Retailer shall not conduct Deliveries.
C. A Storefront Retailer shall operate in compliance with state and local laws and regulations, including but not
limited to State Laws, at all times. Such laws and regulations shall include, but are not limited to:
1. A Storefront Retailer shall Sell no more than 28.5 grams of non-concentrated Cannabis in a single day to a
single customer.
2. A Storefront Retailer shall Sell no more than 8 grams of Cannabis Concentrate, including Cannabis
Concentrate contained in Cannabis Products, in a single day to a single customer.
3. A Storefront Retailer shall Sell no more than 6 immature Cannabis plants in a single day to a single customer.
4. A Storefront Retailer shall not Sell edible Cannabis Products containing more than 10 milligrams of THC per
serving.
5. A Storefront Retailer shall not Sell edible Cannabis Products containing more than 100 milligrams of THC per
package.
6. A Storefront Retailer shall not Sell Cannabis Products that is in the shape of a human being, either realistic or
caricature, animal, insect, or fruit.
7. A Storefront Retailer shall not Sell Cannabis-infused beverages or powder, gel, or other concentrate with
instruction for the preparation of Cannabis-infused beverages.
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8. A Storefront Retailer shall not provide free Cannabis or Cannabis Products to any Person.
9. A Storefront Retailer shall notify Customers of the following verbally (or by written agreement) and by
posting of a notice or notices in a minimum of 24-point font conspicuously within the Storefront Retailer Premises:
a. “The sale or diversion of cannabis or cannabis products without a license i ssued by the City of Chula Vista
is a violation of State law and the Chula Vista Municipal Code.”
b. “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from [Insert Name of
Licensee] is a crime and can lead to arrest.”
c. “Patrons must immediately leave the premises and not consume cannabis or cannabis products until at home
or in an equivalent private location. Staff shall monitor the location and vicinity to ensure compliance.”
10. All restroom facilities on the Premises shall remain locked and under the control of management.
5.19.100 Operating Requirement for Non-Storefront Retailers.
A. From a public right-of-way, there should be no exterior evidence of Non -Storefront Retailer Premises except for
any signage authorized by this Code.
B. The general public is not permitted on the Premises of a City Non-Storefront Retailer Licensee except for the
agents, applicants, managers, and employees of the City Non-Storefront Retailer Licensee and any agents or
employees of the City.
C. A Non-Storefront Retailer shall operate in compliance with state and local laws and regulations, including but not
limited to State Laws, at all times. Such laws and regulations shall include, but are not limited to:
1. Delivery Regulations.
a. All Deliveries of Cannabis or Cannabis Product shall be made by and individual person to an individual
person. A Delivery of Cannabis or Cannabis Product shall not be made through the use of an unmanned vehicle.
b. A Delivery Employee conducting a Delivery shall only travel in an enclosed motor vehicle operated by a
Delivery Employee.
c. Delivery of Cannabis or Cannabis Product shall only be made to a physical address (e.g., not to a P.O. Box
or a street intersection).
d. Delivery of Cannabis or Cannabis Products shall not be made to any public or private school providing
instruction for kindergarten or any grades 1 through 12, Day Care Center, Youth Center, Treatment Facility, Youth
Center, Youth-Oriented Business, Public Park, or Private Park. Deliveries to any workplace shall remain subject to
any employer’s right to limit or prohibit such activity.
e. While conducting a Delivery, a Delivery Employee shall ensure the Cannabis or Cannabis Products are not
visible to the public.
f. A vehicle used for Delivery shall be outfitted with a dedicated Global Positioning System (GPS) device for
identifying the geographic location of a Delivery vehicle.
g. A Delivery Employee shall, during Deliveries, carry a copy of the Non-Storefront Retailer’s current City
License, the Delivery Employee’s government-issued identification, an identification badge issued by the Police
Chief, and a Delivery invoice.
h. While making a Delivery, a Delivery Employee shall no t carry Cannabis and/or Cannabis Goods worth in
excess of $3,000 at any time. This value shall be determined using the current retail price of all Cannabis and/or
Cannabis Products carried by the Delivery Employee.
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2. Product Regulations and Restrictions.
a. A Non-Storefront Retailer shall Sell no more than 28.5 grams of non-concentrated Adult-Use Cannabis in a
single day to a single customer.
b. A Non-Storefront Retailer shall Sell no more than 8 grams of Adult-Use Cannabis Concentrate, including
Cannabis Concentrate contained in Cannabis Products, in a single day to a single customer.
c. A Non-Storefront Retailer shall Sell no more than 6 immature Cannabis plants in a single day to a s ingle
customer.
d. A Non-Storefront Retailer shall not Sell edible Cannabis Products containing more than 10 milligrams of
THC per serving.
e. A Non-Storefront Retailers shall not Sell edible Cannabis Products containing more than 100 milligrams of
THC per package.
f. A Non-Storefront Retailer shall not Sell Cannabis Products that are in the shape of a human being, either
realistic or caricature, animal, insect, or fruit.
g. A Non-Storefront Retailer shall not Sell Cannabis-infused beverages or powder, gel, or other concentrate
with instruction for the preparation of Cannabis -infused beverages.
h. A Non-Storefront Retailer shall not provide free Cannabis or Cannabis Products to any Person.
5.19.110 Operating Requirements for Cultivators.
A. Outdoor Cultivation Prohibited. Commercial Cannabis Cultivation must occur indoors, and outdoor cultivation is
prohibited.
B. From a public right-of-way, there should be no exterior evidence of Cultivation except for any signage authorized
by this Code.
C. The general public is not permitted on the Premises of a City Cultivator Licensee except for the agents,
applicants, managers, and employees of the City Cultivation Licensee and any agents or employees of t he City of
Chula Vista.
D. A Cultivator shall only be allowed to Cultivate the square feet of Canopy authorized by the Cultivator’s State
License and City Cultivation License issued for the Premises.
E. A Cultivator shall operate in compliance with state and local laws and regulations, including but not limited to
State Laws, at all times. Such laws and regulations shall include, but are not limited to:
1. State and local laws related to electricity, water usage, water quality, discharges, and similar matters.; and
2. Applicable federal, state and local laws and regulations regarding use, storage, and disposal of pesticides and
fertilizers.
F. Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or
inadvertent damage from pests, rodents or other wildlife.
G. Cultivation shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public,
the employees working at the Commercial Cannabis Business, neighboring properties, and the end users of the
Cannabis being Cultivated, to protect the environment from harm to waterways, fish, and wildlife; to ensure the
security of the Cannabis being cultivated; and to safeguard against the diversion of Cannabis.
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H. Cultivators shall provide a fire and life safety technical report to the Fire Department, prepared by a licensed
professional engineer, to evaluate the totality of the cannabis operation, including the certification of any equipment.
Said report shall be approved by the Fire Department prior to Operation.
I. All applicants for a City Cultivation License shall submit the following in addition to the information generally
otherwise required for a City License:
1. A Cultivation and operations plan that meets or exceeds minimum legal standards for water usage,
conservation and use; drainage, watershed and habitat protection; and proper storage of fertilizers, pesticides, and
other regulated products to be used on the parcel, and a description of the Cultivation activities and schedule of
activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting
schedules for all-season harvesting.
2. A description of a legal water source, irrigation plan, and projected water use.
3. Identification of the source of electrical power and plan for compliance with applicable building codes and
related codes as adopted and amended by the City.
4. Plan for addressing odor and other public nuisances that may derive from the Cultivation Premises.
5.19.120 Operating Requirements for Manufacturers.
A. From a public right-of-way, there should be no exterior evidence of Manufacturing except for any signage
authorized by this Chapter.
B. The general public is not permitted on the Premises of a City Manufacture Licensee except for the agents,
applicants, Owners, Officers, Managers, employees, and volunteers of the City Manufacture Licensee and any
agents or employees of the City of Chula Vista.
C. All Manufacturing shall comply with the standards set by State Laws and regulations.
D. Any compressed gases used in the manufacturing process shall not be stored on any property within the City of
Chula Vista in containers that exceeds the amount that is approved by the Fire Chief and authorized by the City
Manufacture License. The Premises of a City Manufacture Licensee shall be limited to a total number of tanks as
authorized by the Fire Chief on the Premises at any time.
E. Manufacturers may use the hydrocarbons N-butane, isobutane, propane, or heptane or other solvents or gases
exhibiting low to minimal potential human-related toxicity approved by the Fire Chief. These solvents must be of at
least ninety-nine percent purity and any extraction process must use them in a professional grade closed loop
extraction system designed to recover the solvents and work in an environment with proper ventilation, controlling
all sources of ignition where a flammable atmosphere is or may be present.
F. If an extraction process uses a professional grade closed loop CO 2 gas extraction system every vessel must be
certified by the manufacturer for its safe use. Closed loop systems for compressed gas extraction systems must be
commercially manufactured and bear a permanently affixed and visible serial number.
G. Certification from an engineer licensed by the State of California must be provided to the Fire Chief for a
professional grade closed loop system used by any Manufacturer to certify that the system w as commercially
manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good
engineering practices, including but not limited to:
1. The American Society of Mechanical Engineers (ASME);
2. American National Standards Institute (ANSI);
3. Underwriters Laboratories (UL);
4. The American Society for Testing and Materials (ASTM); or
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5. Intertek ETL
The certification document must contain the signature and stamp of the professional engineer and s erial number of
the extraction unit being certified.
H. Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved
for their use by the Fire Chief and meet any required fire, safety, and building code requirements specified in the
California Building and Fire Codes, as adopted by the City.
I. Manufacturers may use heat, screens, presses, steam distillation, ice water, and other methods without employing
solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural
sources, and other extracts.
J. Manufacturers may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts.
Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into
the atmosphere.
K. Manufacturers creating Cannabis extracts must develop standard operating procedures, good manufacturing
practices, and a training plan prior to producing extracts for the marketplace.
L. Any person using solvents or gases in a closed looped system to create Cannabis extracts must be fully trained on
how to use the system, have direct access to applicable material safety data sheets and handle and store the solvents
and gases safely.
M. Parts per million for one gram of finished extract cannot exce ed State standards for any residual solvent or gas
when quality assurance tested.
N. Manufacturers shall provide a fire and life safety technical report to the Fire Department, prepared by a licensed
professional engineer, to evaluate the totality of the cannabis operation, including the certification of equipment.
Said report shall be approved by the Fire Department prior to Operation.
O. A Manufacturer shall operate in compliance with state and local laws and regulations, including but not limited to
State Laws, at all times.
5.19.130 Operating Requirements for Distributors.
A. From a public right-of-way, there should be no exterior evidence of Distributing except for any signage
authorized by this Chapter.
B. A Distributor shall operate in compliance with state and local laws and regulations, including but not limited to
State Laws, at all times. Such laws and regulations shall include, but are not limited to:
1. The general public is not permitted on the Premises of the City Distributor Licensee except for the agents,
applicants, managers, employees, and volunteers of the City Distributor Licensee and any agents or employees of
the City.
2. A Distributor shall only procure, sell, or transport Cannabis or Cannabis Products that is packaged and sealed
in tamper-evident packaging that uses a unique identifier, such as a batch and lot number or bar code, to identify and
track the Cannabis or Cannabis Products.
3. A Distributor shall maintain a database and provide a list of the individuals and vehicles authorized to conduct
transportation on behalf of the Distributor to the City.
4. Individuals authorized to conduct transportation on behalf of the Cannabi s Distribution licensee shall have a
valid California Driver’s License.
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5. Individuals transporting Cannabis or Cannabis Products on behalf of the Distributor shall maintain a physical
copy of the transportation request (and/or invoice) and shall make it available upon request of agents or employees
of the City requesting documentation.
6. During transportation, the individual conducting transportation on behalf of the Distributor shall maintain a
copy of the City Distributor License and shall make it available upon request of agents or employees of the City
requesting documentation.
7. A Distributor shall only transport Cannabis or Cannabis Products in a vehicle that is (i) insured at or above the
legal requirement in California, (ii) capable of securing (locking) the Cannabis or Cannabis Products during
transportation, and (iii) capable of being temperature controlled if perishable Cannabis Products are being
transported.
5.19.140 Operating Requirements for Testing Laboratories.
A. The general public is not permitted on the Premises of a City Testing Laboratory Licensee except for the agents,
applicants, managers, and employees of the City Testing Laboratory Licensee and any agents or employees of the
City.
B. Testing Laboratory activity shall take place within an enclosed locked structure.
C. From a public right-of-way, there should be no exterior evidence of a Testing Laboratory except for any signage
authorized by this Chapter.
D. A Testing Laboratory shall provide a fire and life safety technical report to the Fire Department, prepared by a
licensed professional engineer, to evaluate the totality of the cannabis operation, including the certification of any
equipment. Said report shall be approved by the Fire Department prior to Operation.
E. A Testing Laboratory shall operate in compliance with state and local laws and regulations, including but not
limited to State Laws, at all times.
5.19.150 Recordkeeping.
A. Each City Licensee shall maintain accurate books and records in an electronic format, detailing all of the
revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis at or
before the time of the renewal of a City License issued pursuant to this Chapter, or at any time upon reasonable
request of the City, each City Licensee shall submit to the City, in a form approved thereby, a statement, sworn as to
accuracy, detailing their Commercial Cannabis Business’ revenue and number of sales during the previous
twelve-month period, or shorter period based upon the timing of the request, provided on a per -month basis. The
statement shall also include gross revenues for each month, and all applicable taxes paid or d ue to be paid.
B. On an annual basis, each City Licensee shall submit to the City Manager a financial audit of the business’
operations conducted by an independent certified public accountant. Each City Licensee shall be subject to a
regulatory compliance review and financial audit as determined by the City Manager.
C. Each City Licensee shall maintain a current register of the names and the contact information (including the
name, address, and telephone number) of anyone owning or holding an interest in each Commercial Cannabis
Business, and separately of all the Owners, Officers, Managers, employees, agents and volunteers currently
employed or otherwise engaged by the Commercial Cannabis Business. The register required by this paragraph shall
be provided to the City Manager promptly upon request.
D. All records collected by a City Licensee pursuant to this Chapter shall be maintained for a minimum of seven
years and shall be made available by the City Licensee to the agents or employees of the City of Chula Vista upon
request, except that private medical records shall be made available only pursuant to a properly executed search
warrant, subpoena, or court order.
E. All City Licensees shall maintain an inventory control and reporting system that accurately documents the present
location, amounts, and descriptions of all Cannabis and Cannabis Products for all stages of the growing, production,
manufacturing, laboratory testing, and distribution processes until purchase as set forth under State Law.
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F. Subject to any restrictions under the Health Insurance Portability and Accountabi lity Act (HIPAA) regulations,
each City Licensee shall allow City officials to have access to each Commercial Cannabis Business’s books,
records, accounts, together with any other data or documents relevant to its Commercial Cannabis Activities, for the
purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents
will be produced no later than 24 hours after receipt of the City’s request, unless otherwise stipulated by the City.
The City may require the materials to be submitted in an electronic format that is compatible with the City’s
software and hardware.
5.19.160 Security Measures.
A. All City Licensees shall implement sufficient security measures to deter and prevent the unauthorized entrance
into areas containing Cannabis or Cannabis P roducts, and to deter and prevent the theft of Cannabis or Cannabis
Products at the Premises of the Commercial Cannabis B usiness. Except as may otherwise be determined by the
Police Chief, these security measures shall include, but shall not be limited to, all of the following:
1. Preventing individuals from remaining on the Premises of the Commercial Cannabis Business if they are not
engaging in an activity directly related to the Operations of the Commercial Cannabis Business.
2. Establishing limited access areas accessible only to authorized Commercial Cannabis Business personnel.
3. Except for live growing plants which are being cultivated at a Cultivation Premises, all Cannabis and
Cannabis Products shall be stored in a secured and locked room, safe, or vault. All Cannabis and Cannabis P roducts,
including Live Plants that are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss,
4. Installing 24-hour security surveillance cameras of at least HD-quality to monitor areas on the Premises
including, but not limited to: entrances and exits to and from the Premises; all interior spaces which are open and
accessible to the public; all interior spaces where Cannabis, cash or currency is being stored for any period of time
on a regular basis; all areas where the purchase, Sale, Distribution, or Transfer of Cannabis or Cannabis Products
take place; and all interior spaces where diversion of Cannabis could reasonably occur. The City Licensee shall be
responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the Police Chief,
and that it is compatible with the City’s software and hardware. In addition, remote and real -time, live access to the
video footage from the cameras shall be provided to the Police Chief. Video recordings shall be maintained for a
minimum of 60 days, and shall be made available to the Police Chief upon request. Video shall be of sufficient
quality for effective prosecution of any crime found to have occurred on the Premises of the Commercial Cannabis
Business.
5. Sensors shall be installed to detect entry and exit from all secure areas.
6. Panic buttons shall be installed in all Commercial Cannabis Businesses.
7. A professionally installed, maintained, and monitored alarm system, with the required City alarm permit under
Chapter 9.06.150 of this Code.
8. Security personnel shall be on the Premises 24 hours a day or alternatively, as authorized by the Police Chief.
Security personnel must be licensed by the State of California Bureau of Security and Investigative Services
personnel and shall be subject to the prior review and approval of the Police chief, with such approval not to be
unreasonably withheld.
9. Each Commercial Cannabis Business shall have the capability to remain secure during a power outage and
shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not
released during a power outage.
B. Each Commercial Cannabis Business shall identify a designated security representative/liaison to the City, who
shall be reasonably available to meet with the Police Chief regarding any security related measures or and
operational issues.
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C. As part of the application and licensing process, each Commercial Cannabis B usiness shall have a storage and
transportation plan, which describes in detail the procedures for safely and securel y storing and transporting all
Cannabis, Cannabis Products, and any currency.
D. Each Commercial Cannabis Business shall cooperate with the City whenever the City Manager makes a request,
upon reasonable notice to the Commercial Cannabis B usiness, to inspect or audit the effectiveness of any security
plan or of any other requirement of this Chapter.
E. A Commercial Cannabis Business shall notify the Police chief within 24 hours after discovering any of the
following:
1. Significant discrepancies identified during inventory. The level of significance shall be determined by the
regulations promulgated by the Police chief.
2. Diversion, theft, loss, or any criminal activity involving the Commercial Cannabis Business or any Owner,
Officer, Manager, agent, or employee of the Commercial Cannabis Business.
3. The loss or unauthorized alteration of records related to Cannabis, registering qualifying patients, primary
caregivers, or employees or agents of the Commercial Cannabis Business.
4. Any other breach of security.
5.19.170 Community Relations.
A. Each Commercial Cannabis Business shall provide the name, telephone number, and email address of a
community relations contact to whom notice of problems associated with the Commercial Cannabis Business can be
provided in addition to applicable City and State enforcement divisions. Each Commercial Cannabis Business shall
also provide the above information to all businesses located within one hundred (100) feet of the Premises of the
Commercial Cannabis Business and to all residences located within three hundred (300) feet of the Premises of the
Commercial Cannabis Business.
B. During the first year of Operation pursuant to this Chapter, the Owner, Manager, and community relations contact
from each Commercial Cannabis Business shall attend a quarterly meeting with the City Manager and other
interested parties as deemed appropriate by the City Manager, to discuss costs, benefits, and other community issues
arising as a result of implementation of this Chapter. After the first year of Operation, the Owner, Manager, and
community relations contact from each such Commercial Cannabis Business shall meet with the City Manager when
and as requested by the City Manager.
5.19.180 Promulgation of Regulations, Standards, and Other Legal Duties.
A. In addition to any regulations adopted by the City Council, the City Manager is authorized to establish , consistent
with the terms of this Chapter, any additional administrative rules, regulations and standards governing the issuance,
denial or renewal of City Licenses; the City’s oversight of the ongoing operation of Commercial Cannabis
Businesses; and any other subject determined to be necessary to carry out the purposes of thi s Chapter.
B. Regulations shall be published on the City’s website and maintained and available to the public in the Office of
the City Clerk.
C. Regulations promulgated by the City Council or the City Manager shall become effective and enforceable upon
date of publication on the City’s website or with respect to existing City Licensees, upon the date specified in a
written notice to the City Licensee. Commercial Cannabis Businesses must comply with all state and local laws and
regulations, including but not limited to any rules, regulations or standards adopted by the City Manager.
5.19.190 Compliance With All Applicable Laws Required.
Nothing in this Chapter shall be construed as authorizing or condoning any actions that violate federal, state or local
law with respect to the operation of a Commercial Cannabis Business. It shall be the responsibility of the City
Licensees, Owners, Officers, and Managers of a Commercial Cannabis Business to ensure that a Commercial
Cannabis Business is, at all times, operating in a manner compliant with all applicable federal, state, and local laws
and regulations, including for as long as applicable, all State Laws, any subsequently enacted state or local law or
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regulatory, licensing, or certification standards or req uirements, and any specific, additional operating procedures or
requirements which may be imposed by City as conditions of approval of a State License or a City License.
Except as otherwise specifically provided herein, this Chapter incorporates the requirements and procedures set forth
in State Laws. In the event of a conflict between the provisions of this Chapter and the provisions of State Laws or
any other applicable state or local law, the more restrictive provision shall control. To the extent allowed by State
Law, the City shall have the right, but not the obligation, to enforce all applicable State Laws.
5.19.200 Right of Access & Testing.
A. City officials, employees, and their designees authorized to enforce the provisions of the Code shall have full
access to the Premises and records of every Commercial Cannabis Business in order to :
1. Inspect the Premises for compliance with the Code and State Laws.
2. Test any equipment possessed by, in control of, or used by a City Licensee, Owner, Officer, or Manager, and
any other employee, agent, or volunteer of a City Licensee.
3. Test any Cannabis or Cannabis Product possessed by, in control of, or used by a City Licensee, Owner,
Officer or Manager, and any other employee, agent, or volunteer of a City Licensee.
4. Copy any materials, books, or records of any City Licensee, Owner, Officer, or Manager, and any other
employee, agent, or volunteer of a City Licensee.
B. Failure by any City Licensee, Owner, Officer or Manager to cooperate and participate in any City inspection or
investigation under this section shall itself be a violation of this Chapter.
C. City officials, employees, and their designees authorized to enforce the provisions of the Code shall have rights of
access under subsection (A) during any inspection, investigation, review, audit, or as otherwise allowed by law.
D. Prior notice of an inspection, investigation, review, or audit is not required.
E. Any inspection, investigation, review, or audit of a City Licensed Premises shall be conducted anytime the City
Licensee is exercising privileges under the City License, or as otherwise agreed to by the City or its Manager.
F. This subsection shall not be construed to deprive a City Licensee, Owner, Officer, or Manager, or any other
employee, agent, or volunteer of a City Licensee of any privileged guaranteed by the Constitutions of the United
States and/or the State of California, or any other statutory privileges.
5.19.210 Restrictions on Transfer, Change, or Alteration of City License or City Licensee.
A. A City License is valid only as to the City Licensee. No City Licensee is allowed to sell, transfer, pledge, assign,
grant an option, or otherwise dispose of its City License to any person except pursuant to the terms of this section.
Except as permitted, any such sale, transfer, pledge, assignment, grant or attempted sale, transfer, pled ge,
assignment or grant shall be deemed to constitute a voluntary surrender of the City License and such City License
shall thereafter be null and void, except as set forth in this Chapter.
B. A City Licensee may sell, transfer, pledge, assign, grant an option or otherwise dispose of less than 50%
ownership or control of a Commercial Cannabis Business with prior written approval of the City Manager after
submission of all required application materials, payment of applicable fees as set by resolution of City Council, and
a determination that the applicants meet the requirements of this Chapter such as to be entitled to the issuance of an
original City License.
C. A City Licensee may change the form of business entity without applying to the City Manager for a new City
License, if the ownership of the new business entity is the same as the original City Licensee business entity.
Although a new City License is not required, the City Licensee shall notify the City in writing of the change within
30 days of the change, and obtain an amendment to the original City License after paying the applicable fee set by
resolution of the City Council.
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D. A City Licensee may change the name of the business entity without applying to the City Manager for a new City
License. Although a new City License is not required, the City Licensee shall notify the City in writing of the
change at least 30 days prior to the change, and obtain an amendment to the original City License after paying the
applicable fee set by resolution of the City Council.
E. No City Licensee shall operate, conduct, manage, engage in, or carry on the business of a Commercial Cannabis
Business under any name other than the name of the Commercial Cannabis Business specified in the City License.
F. No City Licensee may avail themselves of the provisions of this Section if the City Manager has notified the City
Licensee that the City License has been or may be suspended, revoked, or not renewed.
G. Failure to comply with this section constitutes grounds for suspension or revocation of a City License.
5.19.220 Restrictions on Transfer, Change, or Alteration of Location.
A. A City License issued under this Chapter is valid only as to the Premises approved in accordance with the City
License, and is therefore nontransferable to other locations except as authorized in this section. No City Licensee is
authorized to relocate to other areas or units within a building structure without first obtaining written approval from
the City Manager, regardless of any possessory interest or right to possession to such additional space.
B. No City Licensee shall change the location of the Premises approved in accordance with the City License until
any such change of location is approved by the City Manager or his/her designee. The City Manager shall adopt a
process (to include any necessary forms and procedures) for Premises relocation that includes, but is not limited to,
the following:
1. The City Licensee shall submit a change of location application to the City at le ast 90 days prior to the
proposed change.
2. The proposed location shall meet all of the requirements under this Code, including but not limited to this
Chapter and Title 19.
3. The proposed location shall be reviewed and evaluated using review criteria as referenced in Section 5.19.060.
4. The relocation of a City Licensee’s Premises shall be subject to the prior review and approval by
the Development Services Director and any and all other licenses, approvals, or permits required under State Law
and the Code.
C. All required state and City approvals, plan approvals, permits, and licenses must be obtained before causing,
allowing, or licensing alterations to, and/or extensions or expansions of, the existing Premises building(s),
structure(s), or portions thereof, approved as a location for a Commercial Cannabis Business. Said alterations,
extensions, or expansions shall comply with all applicable laws, regulations and standards, including those
concerning building safety and occupancy.
5.19.230 Expiration of City License.
A City License issued pursuant to this Chapter shall expire twelve (12) months after the date of its issuance. City
Licenses may be renewed as provided in Section 5.19.240.
5.19.240 Renewal of City License.
A. A City License shall automatically renew on an annual basis unless the City Manager determines prior to the date
on which the City License is to be automatically renewed that any of the factors identified in subsection C below
exist. A City Licensee shall have the duty to ensure that all City records generated pursuant to this Chapter are
accurate and up-to-date prior to automatic renewal, including but not limited to information regarding the operation
and ownership of each Commercial Cannabis Business.
B. The applicant shall pay a renewal fee in an amount to be set by the City Council to cover the costs incurred by the
City to continue to administer the program created under this Chapter.
C. A City License shall not automatically renew if any of the following grounds exists:
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1. Any of the grounds for suspension or revocation under section 5.19.270;
2. The City License is suspended or revoked at the time of the application.
3. The Commercial Cannabis Business has not been in regular and continuous operation in the four months prior
to the renewal application.
4. The City Licensee fails to or is unable to renew its State License.
5. The City Licensee has made a false, misleading or fraudulent statement or omission of fact as to any
information provided to City pursuant to this Chapter.
6. The City Licensee fails to ensure that all City records generated pursuant to this Chapter are accurate and
up-to-date prior to the automatic renewal.
F. The City Manager is authorized to make all decisions concerning the issuance of a renewal license. In making the
decision, the City Manager is authorized to impose additional conditions to a renewal license, if it is determined to
be necessary to ensure compliance with State or local laws and regulations or to preserve the public health, safety or
welfare.
G. If a renewal application is denied, a person may file a new application pursuant to this Chapter no sooner than
one year from the date of the rejection. The City Manager shall provide notice to the applicant that judicial review of
the City Manager’s denial may be had pursuant to California Code of Procedure section 1085.
5.19.250 Effect of State License Suspension, Revocation, or Termination.
A. Suspension of a State License shall immediately suspend the ability of a Commercial Cannabis Business to
operate within the City, until the State of California, or its respective department or division, reinstates or reissues
the State License.
B. Should the State, or any of its departments or divisions, revoke or terminate a State License, such revocation or
termination shall also revoke or terminate the City License and City Licensee’s ability to operate a Commercial
Cannabis Business within the City.
5.19.260 Suspension and Revocation of City License.
The following may constitute grounds for suspension or revocation of a City License:
A. Failure of a City Licensee to comply with any requirement imposed by the provisions of this Code (or successor
provision or provisions) including any rule, regulation, condition or standard adopted pursuant to this Chapter, or
any term or condition imposed on the City License, or any provision of local or State Laws and/or regulations. Any
act or omission of any Owner, Officer, Manager, or employee of a City Licensee constituting a violation of the
provisions of this Chapter shall be deemed the act or omission of the City Licensee for purposes of determining
whether the City License shall be suspended and/or revoked.
B. Any change in the ownership of a City Licensee that does not have City’s prior written approval, if required
under this Chapter.
C. Revocation of a City Licensee’s State License.
D. City is denied access to the Premises or records of a City Licensee.
E. The City Licensee, or any of its Owners, Officers, or Managers has been adversely sanctioned or fined for,
charged with, or found guilty of or plead guilty or no contest to a charge of operating a Commercial Cannabis
Business without the necessary licenses and approvals from the applicable state and/or local jurisdictions.
F. Conviction of a City Licensee, Owner, Officer, or Manager for any felony offense.
G. Any City Licensee, Owner, Officer or Manager is charged with any of the following:
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1. A violent felony, as specified in Section 667.5(c) of the Penal Code.
2. A serious felony, as specified in Section 1192.7(c) of the Penal Code.
3. A felony involving fraud, deceit, or embezzlement.
4. A felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for
sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish,
administering, or giving any controlled substance to a minor.
5. A felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and
Safety Code.
6. A felony or misdemeanor involving the illegal possession for sale, sale, manufacture, transportation, or
cultivation of a controlled substance occurring after January 1, 2016.
If the City Manager determines that a ground for suspension and/or revocation of a City License exists, the City
Manager shall give notice of suspension and/or revocation by dated written notice to the City Licensee. The City
Manager shall cause the City Licensee to be served, either personally or by first class mail addressed to the address
listed on the application, with the written notice suspending or revoking the City License. This notice shall state the
reasons for the action, the effective date of the decision, and the right of the City Licensee to appeal the decision.
5.19.270 Advertising and Marketing of Cannabis.
A. It is illegal to Market or Advertise within the City Cannabis or Cannabis Products that are not permitted to be
sold in the City under State Law or this Chapter.
B. Advertising or Marketing is prohibited in the City on any sign located within 1,000 feet of a Day Care Center ;
school providing instruction in kindergarten or any grades 1 through 12 ; Youth Center; Youth-Oriented Facility; or
Private or Public Park.
C. Advertising or Marketing is prohibited in the City on any sign within 1,000 feet of a Treatment Center.
D. Advertising or Marketing in the City shall not contain a depiction of an individual under 21 years of age
consuming Cannabis or Cannabis Products.
E. Advertising or Marketing in the City shall not be Attractive to Youth.
F. Advertising or Marketing in the City in a manner that is false or untrue or that, irrespective of falsity, directly, or
by ambiguity, omission, or inference, or by the addition of irrelevant, scientific, or technical matter, tends to create a
misleading impression, is prohibited.
G. Advertisements or Marketing in the City shall not contain any statement concerning a brand or product that is
inconsistent with any statement on the labeling thereof.
5.19.280 Enforcement and Penalties.
A. It is unlawful to:
1. Operate, conduct, or direct Commercial Cannabis Activity in the City without a valid City License authorizing
such Activity;
2. Own, set up, operate, or maintain a Commercial Cannabis Business in the City without a valid City License;
3. Participate as an employee, contractor, agent, volunteer, or in any other capacity in a Commercial Cannabis
Business in the City without a valid City License;
3. Use any parcel or any portion of parcel of land as a Commercial Cannabis Business without a valid City
License;
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4. Lease, rent to, or otherwise allow a Commercial Cannabis Business to occupy any parcel or portion of parcel
of land in the City without a valid City License.
B. It shall be unlawful for any person to violate any provision, or to fail to comply with the requirements , of this
Chapter or any regulation adopted hereunder. Any person violating any of the provisions or failing to comply with
any of the mandatory requirements of this Chapter or any regulation adopted hereunder shall be guilty of a
misdemeanor punishable by a fine of not more than $1,000.00 or imprisonment for a period of not more than six
months, or by both a fine and imprisonment. Each day that a violation continues is deemed to be a new and separate
offense. No proof of knowledge, intent, or other mental state is required to establish a violation.
C. Any condition caused or allowed to exist in violation of any of the provisions of this Chapter or any regulation
adopted hereunder is a public nuisance and may be abated by the City, or by the City Attorney on behalf of the
people of the State of California, as a nuisance by means of a restraining order, injunction, or any other order or
judgment in law or equity issued by a court of competent jurisdiction. The City, or the City Attorney on behalf of the
people of the State of California, may seek injunctive relief to enjoin violations of, or to compel compliance with
this Chapter or seek any other relief or remedy available at law or equity, including the imposition of monetary civil
penalties. Each day that a violation continues is deemed to be a new and separate offense and subject to a maximum
civil penalty of $10,000 for each and every offense.
D. Whenever in this Chapter any act or omission is made unlawful, it shall include causing, aiding, abetting,
suffering, or concealing the fact of such act or omission.
E. The remedies specified in this Section are cumulative and in addition to any other remedies available under State
or local law for a violation of this Code.
F. Nothing in this Section shall be construed as requiring the City to allow, permit, license, authorize, or otherwise
regulate Commercial Cannabis Activity, or as abridging the City’s police power with respect to enforcement
regarding Commercial Cannabis Activity.
5.19.290 Effectiveness Conditioned on Passage of Tax Measure.
The effectiveness of the ordinance enacting this Chapter is contingent upon voter approval and the continuous legal
validity of a tax measure anticipated to be submitted to voters in June 2018. The tax measure would impose an
excise tax, in an amount and form yet to be determined, on all Commercial Cannabis Businesses. In the event the
proposed tax measure is not approved by the voters, or is suspended or invalidated for any reason, the provisions of
this ordinance permitting Commercial Cannabis Businesses shall be void without any further action required by the
City.
C:\Users\shereek\Desktop\ord.docx
ORDINANCE NO.
ORDINANCE OF THE CITY OF CHULA VISTA ADDING
CHAPTER 5.19 OF THE CHULA VISTA MUNICIPAL CODE
TO REGULATE COMMERCIAL CANNABIS
WHEREAS, the Adult Use of Marijuana Act (AUMA), adopted by the voters of the State
of California in November 2016, decriminalized non-medicinal cannabis and established a
regulatory system for non-medicinal cannabis businesses in California; and
WHEREAS, the Medicinal and Adult-Use Cannabis Regulation and Safety Act
(MAUCRSA), enacted by the California State Legislature in June 2017, established a
comprehensive set of laws regulating both individual and commercial medicinal and non-
medicinal cannabis activity throughout the State of California; and
WHEREAS, Under California law, local jurisdictions are authorized to either permit or
prohibit the operation of cannabis businesses within their boundaries; and
WHEREAS, the City of Chula Vista has experienced the negative impacts and secondary
effects associated with the operation of unlawful cannabis businesses within its corporate
boundaries; and
WHEREAS, unregulated businesses remain a source of danger and disruption for City
residents and businesses; and
WHEREAS, in response to changes in California law, and in an effort to mitigate the
negative impacts brought by unregulated Commercial Cannabis Activity, the City now desires to
permit, license, and fully regulate Commercial Cannabis Activity in the City.
NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows:
Section I. Chapter 5.19 is added to the Chula Vista Municipal Code to read as follows:
Chapter 5.19
COMMERCIAL CANNABIS
Sections:
5.19.010 Purpose.
5.19.020 Definitions.
5.19.030 City License Required.
5.19.040 Maximum Number and Type of Authorized City Licenses.
5.19.050 City License Application Process.
5.19.060 Location Requirements for Cannabis Businesses.
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5.19.070 Limitations on City’s Liability.
5.19.080 Operating and Conduct Requirements for All Licensees and Individuals.
5.19.090 Operating Requirements for Storefront Retailers.
5.19.100 Operating Requirements for Non-Storefront Retailers.
5.19.110 Operating Requirements for Cultivators.
5.19.120 Operating Requirements for Manufacturers.
5.19.130 Operating Requirements for Distributors.
5.19.140 Operating Requirements for Testing Laboratories.
5.19.150 Recordkeeping.
5.19.160 Security Measures.
5.19.170 Community Relations.
5.19.180 Promulgation of Regulations, Standards, and Other Legal Duties.
5.19.190 Compliance With Laws.
5.19.200 Right of Access & Testing.
5.19.210 Restrictions on Transfer, Change, or Alteration of City License or City Licensee.
5.19.220 Restrictions on Transfer, Change, or Alteration of Location.
5.19.230 Expiration of City License.
5.19.240 Renewal of City License.
5.19.250 Effect of State License Suspension, Revocation, or Termination.
5.19.260 Suspension or Revocation of City License.
5.19.270 Advertising and Marketing of Cannabis.
5.19.280 Enforcement and Penalties.
5.19.290 Effectiveness Conditioned on Passage of Tax Measure.
5.19.010 Purpose
The Adult Use of Marijuana Act (AUMA), adopted by the voters of the State of California in
November 2016, decriminalized non-medicinal cannabis and established a regulatory system for
non-medicinal cannabis businesses in California. The Medicinal and Adult-Use Cannabis
Regulation and Safety Act (MAUCRSA), enacted by the California Legislature in June 2017,
established a comprehensive set of laws regulating both individual and commercial medicinal
and non-medicinal cannabis activity throughout the State of California. Under California law,
local jurisdictions are authorized to either permit or prohibit the operation of cannabis businesses
within their boundaries.
The City has experienced the negative impacts and secondary effects associated with the
operation of unlawful cannabis businesses within its corporate boundaries. Unregulated
businesses remain a source of danger and disruption for City residents and businesses. In
response to changes in California law, and in an effort to mitigate the negative impacts brought
by unregulated Commercial Cannabis Activity, the City now desires to permit, license, and fully
regulate Commercial Cannabis Activities within the Cit y.
5.19.020 Definitions.
When used in this Chapter, the following words and phrases shall have the meanings ascribed to
them below. Words and phrases not specifically defined below shall have the meanings ascribed
to them elsewhere in this Code, or shall otherwise be defined by common usage. For definitions
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of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations
shall be included. Any references to State Laws, including references to any California statutes
or regulations, is deemed to include any successor or amended version of the referenced statute
or regulations promulgated thereunder consistent with the terms of this Chapter.
“A-License” means a State License for Commercial Cannabis Activity related to products for
individuals 21 years of age and over without the need for a physician’s recommendation.
“A-Licensee” means a Person holding an “A-License.”
“Adult-Use Cannabis” or “Adult-Use Cannabis Product” means Cannabis or Cannabis Products
for individuals 21 years of age and over without the need for a physician’s recommendation.
“Advertise” means to publish or disseminate an Advertisement.
“Advertisement” means any written or verbal statement, illustration, or depiction which is
calculated to induce sales of Cannabis or Cannabis Products, including without limitation: any
written, printed, graphic, or other material; billboard, sign, or other outdoor, digital, indoor or
point-of-sale display; individual carrying a display; public transit card, other periodical, literature
or publication, or in any similar media; except that such term shall not include:
A. Any label affixed to any Cannabis or Cannabis Products, or any individual covering, carton,
or other wrapper of such container that constitutes a part of the labeling.
B. Any editorial story, or other information (e.g., news release) in any periodical, publication or
newspaper either in print or electronic format, for the publication of which no money or valuable
consideration is paid or promised, directly or indirectly, by any City Licensee or Person engaged
in Commercial Cannabis Activity, and which is not written by or at the direction of a City
Licensee or Person engaged in Commercial Cannabis Activity.
“Applicant” means the Owner or Owners applying for a City License pursuant to this Chapter.
“Attractive to Youth” means products, packaging, labeling, or Advertisements that are
reasonably likely to encourage individuals under age 21 to initiate cannabis consumption or
otherwise to accidentally or purposely consume Cannabis or Cannabis Products. Attractive to
Youth items include:
A. Products that resemble a non-Cannabis consumer product of a type that is typically consumed
by, or marketed to Youth, such as a specific candy or baked treat.
B. Packaging or labeling that resembles packaging or labeling of a non-Cannabis consumer
product of a type that is typically consumed by or marketed to Youth.
C. Packaging or labeling that contains images, characters, or phrases that closely resemble
images, characters, or phrases popularly used to advertise to Youth.
D. Advertising that mimics Advertising of a non-cannabis consumer product of a type that is
typically consumed by, or marketed to Youth.
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E. Advertising that contains images, characters, or phrases that closely resemble images,
characters, or phrases popularly used to advertise to Youth.
“Cannabis” means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis
ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified,
extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture,
or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin,
whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature
stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant,
any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks
(except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which
is incapable of germination. For the purpose of this definition, “Cannabis” does not mean
“industrial hemp” as defined by Section 11018.5 of the California Health and Safety Code.
“Cannabis Concentrate” means Cannabis that has undergone a process to concentrate one or
more active cannabinoids, thereby increasing the product’s potency. Resin from granular
trichomes from a cannabis plant is a concentrate for purposes of this division. Cannabis
Concentrate does not include any product intended for oral ingestion by the final consumer. A
Cannabis Concentrate is not considered food, as defined by Section 109935 of the Health and
Safety Code, or drug, as defined by Section 109925 of the Health and Safety Code.
“Cannabis Product” means Cannabis that has undergone a process whereby the plant material
has been concentrated and, with or without the addition of ingredients, been transformed into a
product for sale. Cannabis products include but are not limited to: Cannabis Concentrate, Edible
Cannabis Products, Topical Cannabis, or an inhalant containing Cannabis or Cannabis Product.
“Canopy” means the designated area(s) at a City Licensed Premises, except nurseries, that
contain growing or mature Cannabis plants at any point in time. The Canopy for each Premises
shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s)
that will contain growing or mature plants at any point in time, including any and all space(s)
within such boundaries. The Canopy for any Premises may be noncontiguous provided that each
unique area included in the total Canopy calculation for any Premises shall be separated by an
identifiable boundary. Identifiable boundaries may include, but are not limited to: interior walls,
shelves, greenhouse walls, hoop house walls, or fencing. If plants are being cultivated using a
shelving system, the surface of each level shall be included in the total Canopy calculation.
“Caregiver or Primary Caregiver” has the same meaning as that term is defined in Section
11362.7 of the California Health and Safety Code.
“City” means the City of Chula Vista, California.
“City Attorney” means the City Attorney of the City of Chula Vista, or his/her designee.
“City License” means the regulatory license issued by the City pursuant to this Chapter to a
Commercial Cannabis Business that must be obtained prior to the commencement of any
Commercial Cannabis Activity in the City.
“City Licensee” means any Person holding a City License.
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“City Manager” means the City Manager of the City of Chula Vista, or his/her designee.
“Code” means The City of Chula Vista Municipal Code.
“Commercial Cannabis Activity” means the commercial cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery
or sale of Cannabis or Cannabis Products.
“Commercial Cannabis Business” or “Cannabis Business” means any Person lawfully engaged
in a Commercial Cannabis Activity.
“Council District” means any of four political subdivisions within the City by which City
Council members are elected.
“Crime of Moral Turpitude” means a crime involving deceit; fraud; a readiness to do evil; or an
act of moral depravity of any kind that has a tendency in reason to shake one’s confidence in the
perpetrator’s honesty.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing,
grading, or trimming of Cannabis, other than for personal use. A City Li cense is required for the
Cultivation of Cannabis pursuant to 5.19.030.
“Cultivator” means a Person engaged in Cultivation.
“Customer” means an individual 21 years of age or over, or an individual 18 years of age or
older who possesses a physician’s recommendation.
“Day Care Center” has the same meaning as in Section 1596.76 of the California Health and
Safety Code.
“Delivery” means the commercial transfer of Cannabis or Cannabis Products from a Non-
Storefront Retailer Premises to a Customer at a physical address. Delivery also includes the use
by a Non-Storefront Retailer of any technology platform to facilitate Delivery.
“Delivery Employee” means an employee of a Non-Storefront Retailer who conducts Deliveries.
“Development Services Director” means the Director of the City’s Development Services
Department, or his/her designee.
“Distribution” means the procurement, sale, and transport of Cannabis and Cannabis Products
between Commercial Cannabis Businesses. A City License is required for Distribution pursuant
to 5.19.030.
“Distributor” means a Person engaged in Distribution.
“Edible Cannabis Product” means a Cannabis Product that is intended to be used, in whole or in
part, for human consumption, including, but not limited to chewing gum, but excluding products
set forth in Division 15 (commencing with Section 32501) of the California Food and
Agricultural Code. Edible Cannabis Product has the same meaning as California Business and
Professions Code section 26001.
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“Finance Director” means the Director of the Chula Vista Finance Department, or his/her
designee.
“Fire Chief” means the Chief of the Chula Vista Fire Department, or his/ her designee.
“Labor Peace Agreement” means an agreement between a licensee and any bona fide labor
organization that is required by State Laws and this chapter and that, at a minimum, protects
public interests with the following provisions: (1) a prohibition on labor organizations and
members from engaging in picketing, work stoppages, boycotts, and any other economic
interference with a City Licensee’s Cannabis Business; (2) an agreement by the City Licensee
not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to
organize and represent, the City Licensee’s employees; access for a bona fide labor organization
at reasonable times to areas in which the City Licensee’s employees work, for the purpose of
meeting with employees to discuss their right to representation, employment rights under state
law, and terms and conditions of employment. This type of agreement shall not mandate a
particular method of election or certification of the bona fide labor organization.
“Licensee” means any Person holding a State License and a City License.
“Liquid Assets” means assets that can be readily converted into cash. Liquid Assets include, but
are not limited to, the following: funds in checking or savings accounts, certificates of deposit,
money market accounts, mutual fund shares, publicly traded stocks, and United States savings
bonds. Liquid Assets does not mean household items, furniture and equipment, vehicles,
Cannabis plants or products, business inventory, or real property and improvements thereto.
“Live Plants” means living Cannabis flowers and plants including seeds, immature plants, and
vegetative stage plants.
“M-License” means a State License for Commercial Cannabis Activity involving Medicinal
Cannabis.
“M-Licensee” means a Person holding an M-License.
“Manager” means any individual Person(s) designated by a Commercial Cannabis Business to
manage day-to-day operations of the Commercial Cannabis Business or any Person acting with
apparent management authority. Evidence of management authority includes, but is not limited
to, evidence that the Person has the power to direct, supervise, or hire and dismiss employees,
control hours of operation, create policy rules, or purchase supplies.
“Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a
Cannabis Product. A City License to Manufacture is required pursuant to 5.19.030.
“Manufacturer” means a Person engaged in Manufacturing.
“Marketing” means any act or process of promoting or selling Cannabis or Cannabis Products,
including, but not limited to, sponsorship of events, offers such as tickets to events, point-of-sale
advertising, branded merchandise, pamphlets or product promotion materials.
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“Medicinal Cannabis” or “Medicinal Cannabis Product” means Cannabis or a Cannabis Product
for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section
11362.5 of the California Health and Safety Code, by a medicinal cannabis patient in California
who possesses a physician’s recommendation.
“Minor” means an individual under 18 years of age.
“Non-Storefront Retailer” means a Person that offers Cannabis, Cannabis Products, or devices
for the use of Cannabis or Cannabis Products, either individually or in any combination, for retail
Sale to Customers exclusively by Delivery. A City License is required to operate a Non-
Storefront Retailer Business pursuant to 5.19.030..
“Officer” means any of the following:
A. The chief executive officer of an entity engaged in a Commercial Cannabis Business.
B. A member of the board of directors of an entity engaged in a Commercial Cannabis Business.
C. A Person participating in the direction or control of an Applicant for a City License or any
Owner of a Commercial Cannabis Business within the City.
“Owner” means any of the following:
A. In the context of a Commercial Cannabis Business, a Person with an aggregate ownership
interest of ten percent (10%) or more in a Commercial Cannabis Business, whether a partner,
shareholder, member, or the like, including any security, lien, or encumbrance in an ownership
interest that, upon default, could become an ownership interest of 10% or more in a Commercial
Cannabis Business.
B. In the context of a Premises, a Person with an aggregate ownership interest of ten percent
(10%) or more in the Premises, whether a partner, shareholder, member, or the like.
“Operation” means any act for which licensure is required under the provisions of this Chapter or
State Laws, or any commercial transfer of Cannabis or Cannabis Product.
“Patient or Qualified Patient” means a person who is entitled to the protections of California
Health & Safety Code Section 11362.5 as further provided in California Health & Safety Code
Section 11362.7.
“Person” means any individual, firm, partnership, joint venture, association, corporation, limited
liability company, estate, trust, business trust, receiver, syndicate, or any other group or
combination of persons acting as a unit.
“Police Chief” means the Chief of the Chula Vista Police Department, or his/her designee.
“Premises” for Commercial Cannabis Activity means the designated structure or structures
and land specified in an application for a City License or, if a City License is issued, that is
owned, leased, or otherwise held under the control of the City Licensee where the
Commercial Cannabis Activity will be or is conducted.
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“Private Parks” means privately owned outdoor premises containing recreational areas or
playground equipment, including tot-lots, swings, or similar equipment, designed for use by
Minors. Where a Private Park is located within a parcel containing other uses, the Private
Park premises shall be defined as the area within which all recreational areas or playground
equipment designed for use by Minors is contained.
“Public Parks” means outdoor premises containing existing or proposed parks, including
community parks, neighborhood parks, mini-parks, and urban parks that are currently or
proposed to be owned or operated by the City or other governmental agency.
“Public Street” is any public right-of-way designated for vehicular use.
“Purchaser” means the Customer who is engaged in a transaction with a Commercial Cannabis
Business for purposes of obtaining Cannabis or Cannabis Products.
“Sell” and “Sale” mean any transaction whereby, for any consideration, title to Cannabis or
Cannabis Products is transferred from one person to another, and includes the Delivery of
Cannabis or Cannabis Products pursuant to an order placed for the purchase of the same and
soliciting or receiving an order for the same.
“State” means the State of California.
“State Laws” means the laws of the State of California, which includes, but are not limited to,
California Health and Safety Code Sections 11000, et seq.; California Health and Safety Sections
11362.1 through 11362.45; California Health and Safety Code Section 11362.5 (Compassionate
Use Act of 1996); California Health and Safety Code Sections 11362.7, et seq.(Medical
Marijuana Program); California Health and Safety Code Sections 26000, et seq.(Medicinal and
Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”)); the California Attorney
General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use
issued in August, 2008, as such guidelines may be revised from time to time by action of the
Attorney General; California Labor Code Section 147.5; California Revenue and Taxation Code
Sections 31020 and 34010 through 34021.5; California Fish and Game Code Section 12029;
California Water Code Section 13276; all State regulations adopted pursuant to MAUCRSA; and
all other applicable laws of the State of California.
“State License” means a license issued by the State of California, or one of its departments or
divisions, under State Laws to engage in Commercial Cannabis Activity. License includes both
an “A-license” (adult use) and an “M-license” (medicinal use), as defined by States Laws, as
well as a testing laboratory license.
“State Licensee” means any Person holding a State License.
“Storefront Retailer” means a Person that offers Cannabis, Cannabis Products, or devices for the
use thereof, either individually or in any combination, for retail sale to Customers exclusively at
Premises providing access to the public. A City License is required to operate a Storefront
Retailer Business pursuant to 5.19.030.
“Testing Laboratory” means a laboratory, facility, or entity in the State that offers or performs
tests of Cannabis or Cannabis Products and that is both of the following:
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A. Accredited by an accrediting body that is independent from all other persons involved in
Commercial Cannabis Activity in the State; and
B. Licensed by the State.
A City License is required to operate a Testing Laboratory pursuant to 5.19.030.
“Testor” means a Licensee that offers or performs tests of Cannabis or Cannabis Products at a
Testing Laboratory.
“Topical Cannabis” means a product intended for external application and/or absorption through
the skin. A Topical Cannabis product is not considered a drug as defined by Section 109925 of
the California Health and Safety Code.
“Transport” means transfer of Cannabis or Cannabis Products from the Premises of one Licensee
to the Premises of another Licensee, for the purposes of conducting Commercial Cannabis
Activity authorized by State Laws and this Chapter.
“Treatment Center” means a medical treatment or counseling facility licensed by the California
Department of Health Care Services and located outside of a residential zone that treats five or
more persons with substance abuse conditions in one calendar year.
“Youth” means an individual under 21 years of age.
“Youth Center” means any public or private facility that is primarily used to host recreational or
social activities for minors, including, but not limited to, private youth membership organizations
or clubs, social service teenage club facilities, video arcades, or similar amusement park
facilities.
“Youth-Oriented Business” means any for-profit or non-profit business where the majority of
individuals who patronize, congregate, or assemble at the business location are less than 21 years
old.
5.19.030 City License Required.
No Person may engage in any Commercial Cannabis Business and/or in any Commercial
Cannabis Activity within the City unless that Person: (1) has a valid State License authorizing
such business or activity; (2) has a valid City License authorizing such business or activity; and
(3) is currently in compliance with all other applicable state and local laws and regulations
pertaining to such business or activity. No City License will be available for issuance until, at the
earliest, January 1, 2019. Except as expressly authorized in this Chapter, all Commercial
Cannabis Businesses and Commercial Cannabis Activities are prohibited within the City.
Notwithstanding the foregoing, the Delivery of Cannabis or Cannabis Product originating from a
Commercial Cannabis Business licensed in accordance with California Business and Professions
Code section 26050(a)(17) is permitted without a City License, so long as the Delivery originates
from a licensed Commercial Cannabis Business outside the City of Chula Vista, and is
conducted in accordance with all codified and administrative state and local laws and
regulations, including but not limited to the requirements of section 5.19.100(C) below.
5.19.040 Maximum Number and Types of Authorized City Licenses.
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Commencing January 1, 2019, the authorized number of City Licenses for each type of
Commercial Cannabis Business within the City is as follows:
A. Storefront and Non-Storefront Retailer Licenses: Twelve (12) total, with no more than three
(3) City Licenses available for Operation within each Council District. Of the three (3) City
Licenses available for Operation within each Council District, no more than two (2) City
Licenses shall be available for Storefront Retailers.
B. Other License Types: The City is also authorized to issue, without numerical limit, City
Licenses for the following Commercial Cannabis Businesses:
1. Manufacturer;
2. Distributor;
3. Testing Laboratory; and
4. Indoor Cultivator.
C. Storefront Retailer City Licenses shall be limited to A-Licensees only. All other City License
types may be available to A-Licensees and M-Licensees.
D. No City License shall issue for any Commercial Cannabis Business type other than those
identified in subsections (A) through (C) above.
E. The City shall take no action to increase the maximum number of authorized Storefront Retail
Licenses until July 1, 2020. After July 1, 2020, the City Council may consider increasing the
maximum number of authorized Storefront Retail Licenses, but only after receiving and
considering a report from the City Manager regarding any observed or projected adverse impacts
on the community from such businesses.
F. The City Council may make a referral to the City Manager at any time for a recommendation
on if and how the City should decrease the total number of City Licenses for any or all types of
Commercial Cannabis Businesses, or to impose a cap on previously uncapped license types. If
the City Council proceeds with a decrease in the total number of City Licenses for any or all
types of Commercial Cannabis Businesses within the City, any such action shall include
provisions for determining which, if any, existing City Licenses shall be eliminated and when
Operations for eliminated City Licenses shall cease.
5.19.050 City License Application Process.
The following procedures shall govern the application process for the issuance of any City
License under this Chapter.
A. Phase One Application Process
1. Any Applicant seeking to obtain a City License to operate a Commercial Cannabis Business
within the City shall submit a Phase One Application to the City, signed under penalty of
perjury, using the form adopted by the City for that purpose. Among other information, each
Phase One Application must contain the following:
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a. Applicant’s name, address, telephone number, and e-mail address;
b. Names and addresses of all Owners, Officers, and Managers.
c. If any Applicant or Owner is a business entity or any other form of entity, the entity’s legal
status, formation documents, and proof of registration with, or a certificate of good standing
from, the California Secretary of State, as applicable.
d. The type of City License the Applicant is seeking.
e. A description of any and all Commercial Cannabis Activity engaged in by the Applicant
and all Owners, Officers, and Managers over the previous 5 years, including, but not limited to,
the location of such activity and a copy of any permits, licenses, or other written forms of
permission for such activity by a local or state government entity. An Applicant for a Storefront
Retailer, Non-Storefront Retailer, Manufacturer, or Cultivator City License must demonstrate
one of the following:
i. That at least one Owner and one Manager shall each have engaged in a minimum of
twelve (12) consecutive months of lawful Commercial Cannabis Activity, within the previous 5
years, in a jurisdiction permitting such Commercial Cannabis Activity. The 12 consecutive
months of lawful Commercial Cannabis Activity demonstrated must be of a type substantially
similar to that allowed by the City License for which the Applicant is applying; or
ii. That at least one Owner and one Manager shall each have a minimum of thirty-six (36)
consecutive months of experience managing or operating a lawful alcohol or pharmaceutical
business licensed and regulated by a state or the federal government. The 36 months of
experience demonstrated must be of a type substantially similar to that allowed by the City
License for which the applicant is applying.
f. Documentation demonstrating a minimum of $300,000 in Liquid Assets available under the
Applicant’s control.
g. A business plan that contains, at a minimum, the following: a defined scope of planning
and capital improvements; estimated revenues and expenses; and a demonstrated ability to
operate in a highly regulated industry.
h. An operating plan that contains, at a minimum, the following: provisions for adequate
staffing, security, employee training, consumer education, and compliance with State and local
laws and regulations.
i. Submission by each individual Applicant, Owner, Officer, and Manager of fingerprints and
other information deemed necessary by the Police Chief for a background check by the Chula
Vista Police Department. If the Applicant or any Owner or Manager is an entity, the Police
Chief, in his/her discretion, may require individual employees, officers, members,
representatives, or partners of each entity to submit fingerprints and other information deemed
necessary by the Police Chief for a background check by the Chula Vista Police Department.
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j. A statement, under penalty of perjury, by each individual Applicant, Owner, Officer, and
Manager, that all information provided thereby is true and correct and that he/she has not
conducted Commercial Cannabis Activity in violation of any state or local law.
k. If an individual Applicant, Owner, Officer, or Manager, or any entity such individual has
been associated with in such capacity, has been denied authorization to conduct Commercial
Cannabis Activity in any jurisdiction and/or such Person’s authorization to conduct Commercial
Cannabis Activity in any jurisdiction has been suspended or revoked at any time, a description of
each denial, suspension and/or revocation and documentation demonstrating a material change in
circumstances since such denial, suspension, or revocation.
l. For an Applicant with 10 or more employees, a statement that the Applicant will enter into,
or demonstrate that it has already entered into, and abide by the terms of a Labor Peace
Agreement.
m. The Finance Director or Police Chief may request such additional information, as he/she
deems necessary including documents, from the Applicant to evaluate Applicant’s qualifications.
If the Applicant fails to provide such additional information in the time allotted, the Application
shall be considered abandoned.
2. The Phase One Application shall be accompanied by a nonrefundable application fee
established by resolution of the City Council.
3. The Phase One Application shall be reviewed by the Finance Director for completeness and
to determine if City’s minimum City License qualifications have been satisfied. Phase One
Applications may be rejected by the Finance Director for any of the following reasons in his/her
discretion:
a. The application is received after the designated time and date;
b. The application is not in the required form and/or is incomplete. A Phase One Application
shall not be considered complete until the Finance Director has: (i) determined that all
requirements of the application have been provided to the city; (ii) received the nonrefundable
Phase One application fee; and (iii) obtained all other information the Finance Director
determines necessary to make a decision whether the Application meets the requirements of
State Laws or this Code.
c. The Applicant has failed to pay the application fee required by this Chapter and specified
by City Council resolution;
d. The Applicant has failed to demonstrate the financial capacity to operate its proposed
Commercial Cannabis Business and to fulfill its obligations under this Chapter.
e. The Applicant has made a false, misleading or fraudulent statement or omission of fact in
the application or in the application process.
f. The Applicant, an Owner, Officer, or Manager is under twenty-one years of age.
g. The Applicant or any Owner is an entity that is incorporated outside of the United States.
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h. The Applicant has failed to demonstrate the minimum experience required in accordance
with section 5.19.050(A)(1)(e), above.
i. The Applicant, or any Owner, Officer, or Manager, has had his/her/its authorization to
conduct Commercial Cannabis Activity in any jurisdiction suspended or revoked at any time, and
such person has not demonstrated a material change in circumstances or corrective action since
such suspension, and/or revocation.
4. Phase One applications accepted by the Finance Director as minimally qualified shall be
forwarded to the Police Chief for review and completion of any and all required background
checks. Phase One Applications may be rejected by the Police Chief for any of the following
reasons in his/her discretion:
a. The Applicant has made a false, misleading or fraudulent statement or omission of fact in
the application or in the application process;
b. The Applicant, any Owner, Manager, or Officer, or any other individual identified pursuant
to 5.19.050(A)(1)(i) has failed to submit fingerprints and other information deemed necessary by
the Police Chief for a background check by the Chula Vista Police Department.
c. The Applicant or any Owner, Officer, or Manager has been convicted of a felony.
d. The Applicant or any Owner, Officer, or Manager has been convicted of any Crime of
Moral Turpitude or any offense involving the use of a weapon.
e. There are charges pending against the Applicant, or any Owner, Officer, or Manager for a
felony offense, a Crime of Moral Turpitude, or an offense involving the use of a weapon.
f. The Applicant, or any Owner, Officer, or Manager has been adversely sanctioned or
penalized by the City, or any other city, county, or state, for a material violation of state or local
laws or regulations related to Commercial Cannabis Activity or to pharmaceutical or alcohol
licensure.
5. The Finance Director or Police Chief shall serve the Applicant, either personally or by first
class mail addressed to the address listed on the application, with dated written notice of the
decision to approve or reject the Phase One Application. This notice shall state the reasons for
the action, the effective date of the decision, and the right of the Applicant to appeal the decision
to the City Manager. The City Manager’s determination regarding the Phase One Application
shall be final. The City Manager shall provide dated written notice to the Applicant, either
personally or by first class mail addressed to the address listed on the application, of the City
Manager’s determination and the right of the Applicant to seek judicial review of the City
Manager’s determination.
6. Applicants who are approved by the Finance Director and Police Chief under the Phase One
Application process, or by the City Manager upon appeal, shall be deemed qualified to submit a
Phase Two Application. If the number of deemed “qualified” Phase One Applicants for
Storefront Retail or Non-Storefront Retail Licenses exceeds the number of then available City
Licenses for those license types, a lottery system established by the City shall be used to
determine which of the qualified Applicants is invited to submit a Phase Two Application.
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7. Phase One approvals shall be valid for a maximum period of six (6) months in order to allow
the Applicant to complete the Phase Two process. City regulations issued pursuant to this
Chapter, may provide for extensions of this time periods in limited, defined circumstances.
B. Phase Two Application Process
1. The Phase Two Application shall be submitted in writing, signed under penalty of perjury,
using the form adopted by the City for that purpose. Among other information, each Phase Two
Application must contain the following:
a. Proposed Premises location and description.
b. Information and diagrams demonstrating that the proposed Premises location complies
with the applicable requirements of this Chapter, the City’s zoning code, and State Laws.
c. Identification of all Owners of the proposed Premises location and a copy of all
agreements for site control.
d. Submission by each individual Owner of the proposed Premises location of fingerprints
and other information deemed necessary by the Police Chief for a background check by the
Chula Vista Police Department. If an Owner of the Proposed Premises location is an entity, the
Police Chief, in his/her discretion, may require individual employees, officers, members,
representatives, or partners of each entity to submit fingerprints and other information deemed
necessary by the Police Chief for a background check by the Chula Vista Police Department.
e. Proposed emergency action and fire prevention plan that includes, at a minimum,
employee roles and responsibilities; emergency notification and egress procedures; fire hazard
identification, maintenance, and procedures; and fire and life safety system identification,
maintenance, and procedures.
f. Proposed security plan that includes, at a minimum, employee roles and responsibilities;
entry/exit security and procedures; security guard coverage and duties; lighting, alarm, and
camera placement and operation; limited-access area identification and procedures; cash
handling processes and procedures, and demonstrates compliance with section 5.19.160.
2. The Phase Two Application shall be accompanied by a non-refundable application fee
established by resolution of the City Council.
3. As part of the application process, the Applicant shall be required to obtain all required land
use approvals from the City and/or any other governmental agency with jurisdiction, including a
certification from the Development Services Director certifying that the business is an allowed
use in the zone where it is located, and the proposed site meets all of the requirements of this
Chapter and Title 19 of this Code.
4. As a condition precedent to the City’s issuance of a City License pursuant to this Chapter, in
the event the Premises will be leased from another Person, the Applicant shall be required to
provide a signed and notarized statement from the Owner(s) of the Premises, acknowledging that
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the Owner(s) of the Premises has read this Chapter and consents to the operation of the
Commercial Cannabis Business on the Premises.
5. Phase Two Applications shall be reviewed and are subject to approval by the Development
Services Director, the Fire Chief and the Police Chief. A Phase Two Application may be
rejected by the Development Services Director, Fire Chief, and/or Police Chief for any of the
following reasons:
a. The application is received after the designated time and date;
b. The application is not in the required form and/or is incomplete. A Phase Two Application
shall not be considered complete until the Development Services Director, Fire Chief, and Police
Chief have: (i) determined that all requirements of the application have been provided to the city;
(ii) received the nonrefundable Phase Two application fee; and (iii) obtained all other
information the Development Services Director, Fire Chief, and Police Chief determine is
necessary to make a decision whether the application meets the requirements of State Laws or
this Code.
c. The application fails to demonstrate that the proposed Premises location complies with this
Chapter, the City’s zoning code, and State Laws.
d. The Applicant has made a false, misleading or fraudulent statement or omission of fact in
the application or in the application process;
e. An Owner of the proposed Premises location or any other individual identified pursuant to
5.19.050(B)(1)(d) has failed to submit fingerprints and other information deemed necessary by
the Police Chief for a background check by the Chula Vista Police Department.
f. An Owner of the proposed Premises location has been convicted of a felony.
g. An Owner of the proposed Premises location has been convicted of any Crime of Moral
Turpitude or any offense involving the use of a weapon.
h. There are charges pending against an Owner of the proposed Premises location for a felony
offense, a Crime of Moral Turpitude, or an offense involving the use of a weapon.
i. An Owner of the proposed Premises location has been adversely sanctioned or penalized by
City, or any other city, county, or state, for a material violation of state or local laws related to
Commercial Cannabis Activity.
6. The Development Services Director, Fire Chief, or Police Chief shall serve the Applicant,
either personally or by first class mail addressed to the address listed on the application, with
dated written notice of the decision to approve or reject the Phase Two Application. This notice
shall state the reasons for the action, the effective date of the decision, and the right of the
Applicant to appeal the decision to the City Manager. The City Manager’s determination
regarding the Phase Two Application shall be final. The City Manager shall provide dated
written notice to the Applicant, either personally or by first class mail addressed to the address
listed on the application, of the City Manager’s determination and the right of the Applicant to
seek judicial review of the City Manager’s determination.
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7. Upon obtaining final approval of a Phase Two Application, an applicant shall be issued a
conditional City License. The conditional City License shall be valid for a period of six (6)
months to allow the Applicant to take all necessary actions to open its Commercial Cannabis
Business. If the business is not fully permitted and operating by the end of this six (6) month
period (the “Conditional License Period”), the conditional City License will be void without the
need for further action by the City. Notwithstanding the foregoing, if the only remaining action
necessary for an Applicant holding a conditional City License is the State’s determination on
such Applicant’s pending State License application, the validity of the conditional City License
shall be extended until the earlier to occur of: (a) the State’s determination on the issuance of the
pending State License application, or (b) the date falling 6 months after the expiration of the
Conditional License Period. City regulations issued pursuant to this Chapter may provide for
other extensions of the Conditional License Period in limited, defined circumstances.
C. Requirements Prior to Commencement of Operation. Prior to commencing Operations under a
City License, in addition to any and all other applicable State and local requirements, a City
Licensee must comply with the following requirements:
1. Fees and Charges. Pay in full all fees and charges required for the Operation of a
Commercial Cannabis Activity. Fees and charges associated with the Operation of a Commercial
Cannabis Business shall be established by resolution of the City Council which may be amended
from time to time.
2. Business License Tax. Pay to the City a business license tax as required by Code Chapter
5.02.
3. Permits and Approvals. Obtain all applicable planning, zoning, building, and other
applicable licenses, permits, and approvals from the relevant City department or division that
may be applicable to the Premises and the zoning district in which such business will be located.
4. Final Security Plan Approval. Obtain final security plan approval from the Police Chief for
the Premises and Operation of the Commercial Cannabis Business.
5. Final Emergency Action and Fire Prevention Plan Approval. Obtain final safety approval
from the Fire Chief for the Premises and Operation of the Commercial Cannabis Business.
6. Employee Work Permits. Obtain from the Police Chief work permits for each employee of
the Commercial Cannabis Business whose name did not appear on an Application for a City
License. Each employee shall submit their application for such work permit to the Police Chief,
which application shall be under oath and shall include, among other things, the name, address,
proposed job title, and past criminal record, if any, of the employee and shall be accompanied by
the fingerprints of the employee. An application for an employee work permit shall be
accompanied by the required fee(s) or the required renewal fee(s). The work permit, when
issued, shall be valid for one year. The Police Chief may revoke, deny, or not renew any
employee work permit upon finding that any of the factors outlined in sections 5.19.050(A)(3)
through (A)(4) and/or sections 5.19.270(F) through (H) apply.
7. State License. Submit proof that the necessary State License has been obtained and that
Applicant remains in good standing thereunder.
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8. Agreement. Submit a fully executed agreement as required by section 5.19.070.
9. Insurance. Submit proof of insurance at coverage limits and with conditions thereon
determined necessary and appropriate by the City’s insurance and claims administrator.
10. Operational Requirements. Demonstrate compliance with any and all pre-opening
operational requirements that may apply as specified in section 5.19.080 through 5.19.140,
below, and the ability to comply with and all applicable and ongoing operational requirements.
D. General Rules
1. If a Phase One or Phase Two application is denied or a corresponding conditional City
License expires, no Applicant or Person named therein will be qualified to submit a new Phase
One application until the passage of one year from the date of the denial or expiration.
2. Phase One and Phase Two applications shall include such supplemental materials as required
by the rules and regulations adopted pursuant hereto. The City may, at the City Manager’s
discretion, require additional documentation associated with any application as may be necessary
to enforce the requirements of State Laws and this Code.
3. Applicants shall have no right to operate under a City License until a City License is
actually issued thereto by the City. Each Applicant assumes the risk that, at any time prior to the
issuance of a license, the City Council may terminate or delay the program created under this
Chapter.
4. Issuance of a City License does not create a land use entitlement. Furthermore, no City
License will be officially issued and no Applicant awarded a City License may begin operations
until the City Licensee is fully in compliance with all state and local laws and regulations,
including but not limited to State Laws.
5. The City reserves the right to reject or approve any and all applications and conditional
licenses based on the standards set forth in this Chapter, or otherwise in its sole discretion, taking
into account the health, safety and welfare of the community, and in accordance with its general
police powers authority.
5.19.060 Location Requirements for Cannabis Businesses
As set forth above in Code Section 5.19.030, a limited number of City Licenses for Commercial
Cannabis Businesses shall be authorized and issued by the City. In locating such businesses,
City Licensees shall be further subject to the following requirements.
A. In General. The licensed area of a Commercial Cannabis Business shall be a contiguous area
and shall only be occupied by one Licensee.
B. Storefront Retailers.
1. Allowed Zones. Subject to the separation requirements set forth below, Storefront Retailers
shall only be allowed in the following zones: (a) C-0 Administrative and Professional Office; (b)
C-N Neighborhood Commercial; (c) C-C Central Commercial; (d) C-V Visitor Commercial; (e)
C-T Thoroughfare Commercial; (f) other Commercial Zones in Sectional Planning Area Plans
that allow retail sales uses; and (g) with a Conditional Use Permit, in the following Industrial
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Zones: I-L Limited Industrial; I-R Research Industrial; I General Industrial; and equivalent
Industrial Zones in Sectional Planning Area Plans that allow industrial uses.
2. Special Rules for Storefront Retailers in Industrial Zones. In addition to any and all other
applicable Code requirements, Storefront Retailers proposed to be located in Industrial Zones (a)
must be located in buildings with entrances that face, and are within 100 feet of a Public Street;
and (b) must comply with parking and sign regulations applicable to retail sales businesses in
commercial zones.
3. Separation Requirements.
a. Storefront Retailers shall not be located within 1,000 feet of any Day Care Center, Youth
Center, or any public or private school providing instruction for kindergarten or any grades 1
through 12.
b. Storefront Retailers shall not be located within 600 feet of any Treatment Facility; Youth
Center; Youth-Oriented Business; Public Park; or Private Park.
c. Storefront Retailers shall not be located within 150 feet of any existing residential use or
proposed exclusive residential use
4. Storefront Retailers are retail sales uses for purpose of the Code. Except as otherwise
provided in this Chapter, all retail sales use requirements for the allowed zone in which the
business is located shall apply.
C. Non-Storefront Retailers.
1. Allowed Zones. Subject to the separation requirements set forth below, Non-Storefront
Retailers shall only be allowed in following Industrial Zones: I-L Limited Industrial; I-R
Research Industrial; I General Industrial; and equivalent Industrial Zones in Sectional Planning
Area Plans that allow industrial uses.
2. Separation Requirements. Non-Storefront Retailers shall not be located within 150 feet of
any zone allowing residential uses.
3. Non-Storefront Retailers are industrial uses for the purpose of the Code. Except as otherwise
provided in this Chapter, all industrial use requirements for the allowed zone in which the
business is located shall apply.
D. Manufacturers; Distributors; Testing Laboratories; and Cultivators.
1. Allowed Zones. Subject to the separation requirements set forth herein, below,
Manufacturers, Distributors, Testing Laboratories, and Cultivators shall be allowed in following
Industrial Zones: I-L Limited Industrial; I-R Research Industrial; I General Industrial; and
equivalent Industrial Zones in Sectional Planning Area Plans that allow industrial uses.
2. Separation Requirements. No Manufacturer, Distributor, Testing Laboratory or Cultivator
shall be located within 150 feet of any zone allowing residential uses.
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3. Manufacturers, Distributors, Testing Laboratories, and Cultivators are industrial uses for the
purpose of the Code. Except as otherwise provided in this Chapter, all industrial use
requirements for the allowed zone in which the business is located shall apply.
E. Standards for Measurement of Separation Distances. For purposes of this Section, separation
distances between uses shall be measured as follows:
1. Measuring Points Established. Separation distance between uses shall be measured
horizontally in a continuous series of straight lines that connect the two closest “measuring
points” of each business or use as set forth herein, below.
a. For a Commercial Cannabis Business, the “measuring point” shall be the center point of the
public entrance closest to a Public Street.
b. For a Day Care Center, Youth Center, Youth Oriented Business, or Treatment Facility, the
“measuring point” shall be the center point of the public entrance closest to a Public Street.
c. For a public or private school, Public Park, Private Park, residential use or residential zone,
the “measuring point” shall be the point located on the legal parcel boundary line abutting a
Public Street that is closest to the “measuring point” of the Commercial Cannabis Business at
issue.
2. Measurement Paths; Examples. Measurements between public entrances shall start at the
“measuring point” of Commercial Cannabis Business and proceed in a continuous line to the
closest property line of the Public Street, measured perpendicular to the Public Street. The
measurement shall then continue along the property lines of the Public Street fronts, and in a
direct line across intersections along the shortest pedestrian route toward the “measuring point”
of the separated use until it reaches such “measuring point”. See illustration below.
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3. Measurements between public entrances and legal parcel boundary lines shall start at
“measuring point” of the Commercial Cannabis Business and proceed in a continuous line to the
closest property line of the Public Street, measured perpendicular to the Public Street. The
measurement shall then continue along the property lines of the public street front(s), and in a
direct line across intersections along the shortest pedestrian route towards the “measuring point”
of the separated use until it reaches such “measuring point”. See illustration below.
4. Where a public or private school, Public Park, Private Park, or residential use or residential
zone are directly adjacent to or across a Public Street from a Storefront Retailer or Non-
Storefront Retailer, the separation distance shall be measured between the respective “measuring
points” without regard to a Public Street or intersections. See illustration below.
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5. Where a Commercial Cannabis Business and a Day Care Center, Youth Center, Treatment
Facility, Youth-Oriented Business or existing residential use are on the same parcel, or
contiguous parcels, the separation distance shall be measured in a straight line connecting their
“measuring points”. See illustration below.
6. Interpretations and determinations of separation distances shall be made by the Development
Services Director. Exhibits from a Licensed Land Surveyor may be required by the City to
make a final decision on compliance with the separation requirements of this subsection.
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5.19.070 Limitations on City’s Liability; Licensee’s Indemnity Obligations
To the maximum extent allowed by law, the City shall not incur or assume any direct or indirect
liability to any Applicant, government agency, or third party as a result of having issued a City
License pursuant to this Chapter, or otherwise approving the Operation of any Commercial
Cannabis Business. As a condition to the issuance of any City License, the Applicant shall be
required to enter into and fulfill all requirements of an agreement, in a form approved by the City
Attorney, whereby all Owners agree to (a) indemnify, protect, defend (at Owner’s sole cost and
expense), and hold harmless the City, and its officers, officials, employees, representatives, and
agents from any and all claims, losses, damages, injuries, liabilities or losses that arise out of, or
that are in any way related to, the City’s issuance of the City License, the City’s decision to
approve the Operation of the Commercial Cannabis Business or Activity, the process used by the
City in making its decision, City Licensee’s Operation of its Commercial Cannabis Business, or
the alleged violation of any federal, state or local laws by the Commercial Cannabis Business or
any of its officers, employees or agents; and (b) provide evidence of and maintain insurance at
coverage limits, and with conditions thereon determined necessary and appropriate from time to
time by the City Risk Manager.
5.19.080 Operating and Conduct Requirements for All Licensees and Individuals.
A. No person shall consume Cannabis and/or Cannabis Products on the Premises of a
Commercial Cannabis Business.
B. No person shall cause or license the sale, dispensing, or consumption of alcoholic beverages
or tobacco products on the Premises of a Commercial Cannabis Business.
C. No Cannabis or Cannabis Products shall be visible from the exterior of any Premises issued a
City License, or on any of the vehicles owned or used as part of a Commercial Cannabis
Business. No outdoor storage of Cannabis or Cannabis Products is permitted at any time.
D. Each Commercial Cannabis Business shall have in place a point-of-sale or management
inventory tracking system to track and report on all aspects of the Commercial Cannabis
Business including, but not limited to, such matters as cannabis tracking, inventory data, gross
sales (by weight and by sale) and other information which may be deemed necessary by the City.
The Commercial Cannabis Business shall ensure that such information is compatible with the
City’s record-keeping systems. In addition, the system must have the capability to produce
historical transactional data for review. Furthermore, any system selected must be approved and
authorized by the Finance Director prior to being used by the City Licensee.
E. All Cannabis and Cannabis Products sold, tested, distributed or manufactured shall be
cultivated, manufactured, and transported by Commercial Cannabis Businesses that maintain
operations in full conformance with State Laws, State regulations, local laws, and local
regulations.
F. All Commercial Cannabis Businesses shall have a Manager on the premises at all times during
hours of operation.
G. Each Commercial Cannabis Business shall provide the City Manager with the name,
telephone number (both land line and mobile, if available) of an on-site Manager or Owner to
whom emergency notice may be provided at any hour of the day.
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H. Each Commercial Cannabis Business premises shall be visibly posted with a clear and legible
notice indicating that smoking, ingesting, or otherwise consuming cannabis on the Premises or in
the areas adjacent to the Commercial Cannabis Business is prohibited.
I. Persons under the age of twenty-one (21) years shall not be allowed and are not allowed on the
Premises of a Commercial Cannabis Business, and shall not be allowed and are not allowed to
serve as a driver for a Non-Storefront Retailer.
J. It shall be unlawful and a violation of this Chapter for any Person to employ an individual at a
Commercial Cannabis Business who is not at least twenty-one (21) years of age.
K. Odor Control. Odor control devices and techniques shall be incorporated in the Premises of
all Commercial Cannabis Businesses to ensure that odors from Cannabis are not detectable off-
site. Commercial Cannabis Businesses shall provide a sufficient odor absorbing ventilation and
exhaust system so that odor generated inside the Commercial Cannabis Business that is
distinctive to its Operation is not detected outside of the Premises, anywhere on adjacent
property or public rights-of-way, on or about the exterior or interior common area walkways,
hallways, breezeways, foyers, lobby areas, or any other areas available for use by common
tenants or the visiting public, or within any other unit located inside the same building as the
Commercial Cannabis Business. As such, Commercial Cannabis Businesses must install and
maintain the following equipment, or any other equipment which the Development Services
Director determines is a more effective method or technology:
1. An exhaust air filtration system with odor control that prevents internal odors from being
emitted externally;
2. An air system that creates negative air pressure between the Commercial Cannabis
Business’s interior and exterior, so that the odors generated inside the Commercial Cannabis
Business are not detectable on the outside of the Commercial Cannabis Business.
L. Safety and Security Plans. Each Commercial Cannabis Business must comply with all
requirements of the security plan approved by the Police Chief and with all safety requirements
of the Emergency Action and Fire Prevention Plan approved by the Fire Chief.
M. Display of City License and City Business License. The original copy of the City License and
the City Business License shall be posted inside the Premises of the Commercial Cannabis
Business in a location readily-visible to the public.
N. Employee Identification. Each and every employee of a City Licensee must, at all times when
present on a Premises and while conducting a Delivery, wear an identification badge containing
their photograph, age, the name of the City Licensee for whom they are employed, and, if the
employee is a Manager, the employee’s job title.
O. Delaying or Lingering Prohibited. The City Licensee shall take reasonable steps to prevent
individuals from delaying or lingering on the Premises without a lawful purpose.
P. Cannabis Use on Premises Prohibited. The City Licensee shall take reasonable steps to
prevent the use and consumption of Cannabis or Cannabis Products on the Premises.
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Q. Licenses and other Approvals. Throughout the Operation of a Commercial Cannabis
Business, the City Licensee must maintain all applicable planning, zoning, building, and other
applicable licenses, permits, and approvals from the relevant City department or division that
may be applicable to the zoning district in which the Commercial Cannabis Business Premises is
located.
R. Persons with Disabilities. Nothing in this Chapter exempts a Commercial Cannabis Business
from complying with all applicable local, State and federal laws and regulations pertaining to
persons with disabilities.
S. Discrimination. No Commercial Cannabis Business may discriminate or exclude patrons in
violation of local, State and federal laws and regulations.
T. Fees and Charges.
1. No Person may conduct Commercial Cannabis Activity without timely paying in full all fees
and charges required associated with the Operation of a Commercial Cannabis Activity. Fees and
charges associated with the Operation of a Commercial Cannabis Activity shall be established by
resolution of the City Council which may be amended from time to time.
2. City Licensees authorized to Operate under this Chapter shall pay all sales, use, business and
other applicable taxes, and all license, registration, and other fees required under federal, State
and local law. Each Commercial Cannabis Business shall cooperate with City with respect to any
reasonable request to audit the Commercial Cannabis Business’ books and records for the
purpose of verifying compliance with this section, including but not limited to a verification of
the amount of taxes required to be paid during any period.
5.19.090 Operating Requirements for Storefront Retailers.
A. A Storefront Retailer shall not Sell Medicinal Cannabis or Medicinal Cannabis Products.
B. A Storefront Retailer shall not conduct Deliveries.
C. A Storefront Retailer shall operate in compliance with state and local laws and regulations,
including but not limited to State Laws, at all times. Such laws and regulations shall include, but
are not limited to:
1. A Storefront Retailer shall Sell no more than 28.5 grams of non-concentrated Cannabis in a
single day to a single customer.
2. A Storefront Retailer shall Sell no more than 8 grams of Cannabis Concentrate, including
Cannabis Concentrate contained in Cannabis Products, in a single day to a single customer.
3. A Storefront Retailer shall Sell no more than 6 immature Cannabis plants in a single day to a
single customer.
4. A Storefront Retailer shall not Sell edible Cannabis Products containing more than 10
milligrams of THC per serving.
5. A Storefront Retailer shall not Sell edible Cannabis Products containing more than 100
milligrams of THC per package.
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6. A Storefront Retailer shall not Sell Cannabis Products that is in the shape of a human being,
either realistic or caricature, animal, insect, or fruit.
7. A Storefront Retailer shall not Sell Cannabis-infused beverages or powder, gel, or other
concentrate with instruction for the preparation of Cannabis-infused beverages.
8. A Storefront Retailer shall not provide free Cannabis or Cannabis Products to any Person.
9. A Storefront Retailer shall notify Customers of the following verbally (or by written
agreement) and by posting of a notice or notices in a minimum of 24-point font conspicuously
within the Storefront Retailer Premises:
a. “The sale or diversion of cannabis or cannabis products without a license issued by the City
of Chula Vista is a violation of State law and the Chula Vista Municipal Code.”
b. “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from
[Insert Name of Licensee] is a crime and can lead to arrest.”
c. “Patrons must immediately leave the premises and not consume cannabis or cannabis
products until at home or in an equivalent private location. Staff shall monitor the location and
vicinity to ensure compliance.”
10. All restroom facilities on the Premises shall remain locked and under the control of
management.
5.19.100 Operating Requirement for Non-Storefront Retailers.
A. From a public right-of-way, there should be no exterior evidence of Non-Storefront Retailer
Premises except for any signage authorized by this Code.
B. The general public is not permitted on the Premises of a City Non-Storefront Retailer
Licensee except for the agents, applicants, managers, and employees of the City Non-Storefront
Retailer Licensee and any agents or employees of the City.
C. A Non-Storefront Retailer shall operate in compliance with state and local laws and
regulations, including but not limited to State Laws, at all times. Such laws and regulations shall
include, but are not limited to:
1. Delivery Regulations.
a. All Deliveries of Cannabis or Cannabis Product shall be made by and individual person to
an individual person. A Delivery of Cannabis or Cannabis Product shall not be made through the
use of an unmanned vehicle.
b. A Delivery Employee conducting a Delivery shall only travel in an enclosed motor vehicle
operated by a Delivery Employee.
c. Delivery of Cannabis or Cannabis Product shall only be made to a physical address (e.g.,
not to a P.O. Box or a street intersection).
d. Delivery of Cannabis or Cannabis Products shall not be made to any public or private
school providing instruction for kindergarten or any grades 1 through 12, Day Care Center,
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Youth Center, Treatment Facility, Youth Center, Youth-Oriented Business, Public Park, or
Private Park. Deliveries to any workplace shall remain subject to any employer’s right to limit
or prohibit such activity.
e. While conducting a Delivery, a Delivery Employee shall ensure the Cannabis or Cannabis
Products are not visible to the public.
f. A vehicle used for Delivery shall be outfitted with a dedicated Global Positioning System
(GPS) device for identifying the geographic location of a Delivery vehicle.
g. A Delivery Employee shall, during Deliveries, carry a copy of the Non-Storefront
Retailer’s current City License, the Delivery Employee’s government-issued identification, an
identification badge issued by the Police Chief, and a Delivery invoice.
h. While making a Delivery, a Delivery Employee shall not carry Cannabis and/or Cannabis
Goods worth in excess of $3,000 at any time. This value shall be determined using the current
retail price of all Cannabis and/or Cannabis Products carried by the Delivery Employee.
2. Product Regulations and Restrictions.
a. A Non-Storefront Retailer shall Sell no more than 28.5 grams of non-concentrated Adult-
Use Cannabis in a single day to a single customer.
b. A Non-Storefront Retailer shall Sell no more than 8 grams of Adult-Use Cannabis
Concentrate, including Cannabis Concentrate contained in Cannabis Products, in a single day to
a single customer.
c. A Non-Storefront Retailer shall Sell no more than 6 immature Cannabis plants in a single
day to a single customer.
d. A Non-Storefront Retailer shall not Sell edible Cannabis Products containing more than 10
milligrams of THC per serving.
e. A Non-Storefront Retailers shall not Sell edible Cannabis Products containing more than
100 milligrams of THC per package.
f. A Non-Storefront Retailer shall not Sell Cannabis Products that are in the shape of a human
being, either realistic or caricature, animal, insect, or fruit.
g. A Non-Storefront Retailer shall not Sell Cannabis-infused beverages or powder, gel, or
other concentrate with instruction for the preparation of Cannabis-infused beverages.
h. A Non-Storefront Retailer shall not provide free Cannabis or Cannabis Products to any
Person.
5.19.110 Operating Requirements for Cultivators.
A. Outdoor Cultivation Prohibited. Commercial Cannabis Cultivation must occur indoors, and
outdoor cultivation is prohibited.
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B. From a public right-of-way, there should be no exterior evidence of Cultivation except for any
signage authorized by this Code.
C. The general public is not permitted on the Premises of a City Cultivator Licensee except for
the agents, applicants, managers, and employees of the City Cultivation Licensee and any agents
or employees of the City of Chula Vista.
D. A Cultivator shall only be allowed to Cultivate the square feet of Canopy authorized by the
Cultivator’s State License and City Cultivation License issued for the Premises.
E. A Cultivator shall operate in compliance with state and local laws and regulations, including
but not limited to State Laws, at all times. Such laws and regulations shall include, but are not
limited to:
1. State and local laws related to electricity, water usage, water quality, discharges, and similar
matters.; and
2. Applicable federal, state and local laws and regulations regarding use, storage, and disposal
of pesticides and fertilizers.
F. Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through
erosion, leakage or inadvertent damage from pests, rodents or other wildlife.
G. Cultivation shall at all times be operated in such a way as to ensure the health, safety, and
welfare of the public, the employees working at the Commercial Cannabis Business, neighboring
properties, and the end users of the Cannabis being Cultivated, to protect the environment from
harm to waterways, fish, and wildlife; to ensure the security of the Cannabis being cultivated;
and to safeguard against the diversion of Cannabis.
H. Cultivators shall provide a fire and life safety technical report to the Fire Department,
prepared by a licensed professional engineer, to evaluate the totality of the cannabis operation,
including the certification of any equipment. Said report shall be approved by the Fire
Department prior to Operation.
I. All applicants for a City Cultivation License shall submit the following in addition to the
information generally otherwise required for a City License:
1. A Cultivation and operations plan that meets or exceeds minimum legal standards for water
usage, conservation and use; drainage, watershed and habitat protection; and proper storage of
fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of
the Cultivation activities and schedule of activities during each month of growing and harvesting,
or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting.
2. A description of a legal water source, irrigation plan, and projected water use.
3. Identification of the source of electrical power and plan for compliance with applicable
building codes and related codes as adopted and amended by the City.
4. Plan for addressing odor and other public nuisances that may derive from the Cultivation
Premises.
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5.19.120 Operating Requirements for Manufacturers.
A. From a public right-of-way, there should be no exterior evidence of Manufacturing except for
any signage authorized by this Chapter.
B. The general public is not permitted on the Premises of a City Manufacture Licensee except for
the agents, applicants, Owners, Officers, Managers, employees, and volunteers of the City
Manufacture Licensee and any agents or employees of the City of Chula Vista.
C. All Manufacturing shall comply with the standards set by State Laws and regulations.
D. Any compressed gases used in the manufacturing process shall not be stored on any property
within the City of Chula Vista in containers that exceeds the amount that is approved by the Fire
Chief and authorized by the City Manufacture License. The Premises of a City Manufacture
Licensee shall be limited to a total number of tanks as authorized by the Fire Chief on the
Premises at any time.
E. Manufacturers may use the hydrocarbons N-butane, isobutane, propane, or heptane or other
solvents or gases exhibiting low to minimal potential human-related toxicity approved by the
Fire Chief. These solvents must be of at least ninety-nine percent purity and any extraction
process must use them in a professional grade closed loop extraction system designed to recover
the solvents and work in an environment with proper ventilation, controlling all sources of
ignition where a flammable atmosphere is or may be present.
F. If an extraction process uses a professional grade closed loop CO2 gas extraction system every
vessel must be certified by the manufacturer for its safe use. Closed loop systems for compressed
gas extraction systems must be commercially manufactured and bear a permanently affixed and
visible serial number.
G. Certification from an engineer licensed by the State of California must be provided to the Fire
Chief for a professional grade closed loop system used by any Manufacturer to certify that the
system was commercially manufactured, is safe for its intended use, and was built to codes of
recognized and generally accepted good engineering practices, including but not limited to:
1. The American Society of Mechanical Engineers (ASME);
2. American National Standards Institute (ANSI);
3. Underwriters Laboratories (UL);
4. The American Society for Testing and Materials (ASTM); or
5. Intertek ETL
The certification document must contain the signature and stamp of the professional engineer
and serial number of the extraction unit being certified.
H. Professional closed loop systems, other equipment used, the extraction operation, and
facilities must be approved for their use by the Fire Chief and meet any required fire, safety, and
building code requirements specified in the California Building and Fire Codes, as adopted by
the City.
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I. Manufacturers may use heat, screens, presses, steam distillation, ice water, and other methods
without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter,
or oils or fats derived from natural sources, and other extracts.
J. Manufacturers may use food grade glycerin, ethanol, and propylene glycol solvents to create
or refine extracts. Ethanol should be removed from the extract in a manner to recapture the
solvent and ensure that it is not vented into the atmosphere.
K. Manufacturers creating Cannabis extracts must develop standard operating procedures, good
manufacturing practices, and a training plan prior to producing extracts for the marketplace.
L. Any person using solvents or gases in a closed looped system to create Cannabis extracts must
be fully trained on how to use the system, have direct access to applicable material safety data
sheets and handle and store the solvents and gases safely.
M. Parts per million for one gram of finished extract cannot exceed State standards for any
residual solvent or gas when quality assurance tested.
N. Manufacturers shall provide a fire and life safety technical report to the Fire Department,
prepared by a licensed professional engineer, to evaluate the totality of the cannabis operation,
including the certification of equipment. Said report shall be approved by the Fire Department
prior to Operation.
O. A Manufacturer shall operate in compliance with state and local laws and regulations,
including but not limited to State Laws, at all times.
5.19.130 Operating Requirements for Distributors.
A. From a public right-of-way, there should be no exterior evidence of Distributing except for
any signage authorized by this Chapter.
B. A Distributor shall operate in compliance with state and local laws and regulations, including
but not limited to State Laws, at all times. Such laws and regulations shall include, but are not
limited to:
1. The general public is not permitted on the Premises of the City Distributor Licensee except
for the agents, applicants, managers, employees, and volunteers of the City Distributor Licensee
and any agents or employees of the City.
2. A Distributor shall only procure, sell, or transport Cannabis or Cannabis Products that is
packaged and sealed in tamper-evident packaging that uses a unique identifier, such as a batch
and lot number or bar code, to identify and track the Cannabis or Cannabis Products.
3. A Distributor shall maintain a database and provide a list of the individuals and vehicles
authorized to conduct transportation on behalf of the Distributor to the City.
4. Individuals authorized to conduct transportation on behalf of the Cannabis Distribution
licensee shall have a valid California Driver’s License.
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5. Individuals transporting Cannabis or Cannabis Products on behalf of the Distributor shall
maintain a physical copy of the transportation request (and/or invoice) and shall make it
available upon request of agents or employees of the City requesting documentation.
6. During transportation, the individual conducting transportation on behalf of the Distributor
shall maintain a copy of the City Distributor License and shall make it available upon request of
agents or employees of the City requesting documentation.
7. A Distributor shall only transport Cannabis or Cannabis Products in a vehicle that is (i)
insured at or above the legal requirement in California, (ii) capable of securing (locking) the
Cannabis or Cannabis Products during transportation, and (iii) capable of being temperature
controlled if perishable Cannabis Products are being transported.
5.19.140 Operating Requirements for Testing Laboratories.
A. The general public is not permitted on the Premises of a City Testing Laboratory Licensee
except for the agents, applicants, managers, and employees of the City Testing Laboratory
Licensee and any agents or employees of the City.
B. Testing Laboratory activity shall take place within an enclosed locked structure.
C. From a public right-of-way, there should be no exterior evidence of a Testing Laboratory
except for any signage authorized by this Chapter.
D. A Testing Laboratory shall provide a fire and life safety technical report to the Fire
Department, prepared by a licensed professional engineer, to evaluate the totality of the cannabis
operation, including the certification of any equipment. Said report shall be approved by the Fire
Department prior to Operation.
E. A Testing Laboratory shall operate in compliance with state and local laws and regulations,
including but not limited to State Laws, at all times.
5.19.150 Recordkeeping.
A. Each City Licensee shall maintain accurate books and records in an electronic format,
detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On
no less than an annual basis at or before the time of the renewal of a City License issued pursuant
to this Chapter, or at any time upon reasonable request of the City, each City Licensee shall
submit to the City, in a form approved thereby, a statement, sworn as to accuracy, detailing their
Commercial Cannabis Business’ revenue and number of sales during the previous twelve-month
period, or shorter period based upon the timing of the request, provided on a per-month basis.
The statement shall also include gross revenues for each month, and all applicable taxes paid or
due to be paid.
B. On an annual basis, each City Licensee shall submit to the City Manager a financial audit of
the business’ operations conducted by an independent certified public accountant. Each City
Licensee shall be subject to a regulatory compliance review and financial audit as determined by
the City Manager.
C. Each City Licensee shall maintain a current register of the names and the contact information
(including the name, address, and telephone number) of anyone owning or holding an interest in
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each Commercial Cannabis Business, and separately of all the Owners, Officers, Managers,
employees, agents and volunteers currently employed or otherwise engaged by the Commercial
Cannabis Business. The register required by this paragraph shall be provided to the City
Manager promptly upon request.
D. All records collected by a City Licensee pursuant to this Chapter shall be maintained for a
minimum of seven years and shall be made available by the City Licensee to the agents or
employees of the City of Chula Vista upon request, except that private medical records shall be
made available only pursuant to a properly executed search warrant, subpoena, or court order.
E. All City Licensees shall maintain an inventory control and reporting system that accurately
documents the present location, amounts, and descriptions of all Cannabis and Cannabis
Products for all stages of the growing, production, manufacturing, laboratory testing, and
distribution processes until purchase as set forth under State Law.
F. Subject to any restrictions under the Health Insurance Portability and Accountability Act
(HIPAA) regulations, each City Licensee shall allow City officials to have access to each
Commercial Cannabis Business’s books, records, accounts, together with any other data or
documents relevant to its Commercial Cannabis Activities, for the purpose of conducting an
audit or examination. Books, records, accounts, and any and all relevant data or documents will
be produced no later than 24 hours after receipt of the City’s request, unless otherwise stipulated
by the City. The City may require the materials to be submitted in an electronic format that is
compatible with the City’s software and hardware.
5.19.160 Security Measures.
A. All City Licensees shall implement sufficient security measures to deter and prevent the
unauthorized entrance into areas containing Cannabis or Cannabis Products, and to deter and
prevent the theft of Cannabis or Cannabis Products at the Premises of the Commercial Cannabis
Business. Except as may otherwise be determined by the Police Chief, these security measures
shall include, but shall not be limited to, all of the following:
1. Preventing individuals from remaining on the Premises of the Commercial Cannabis
Business if they are not engaging in an activity directly related to the Operations of the
Commercial Cannabis Business.
2. Establishing limited access areas accessible only to authorized Commercial Cannabis
Business personnel.
3. Except for live growing plants which are being cultivated at a Cultivation Premises, all
Cannabis and Cannabis Products shall be stored in a secured and locked room, safe, or vault. All
Cannabis and Cannabis Products, including Live Plants that are being cultivated, shall be kept in
a manner as to prevent diversion, theft, and loss,
4. Installing 24-hour security surveillance cameras of at least HD-quality to monitor areas on
the Premises including, but not limited to: entrances and exits to and from the Premises; all
interior spaces which are open and accessible to the public; all interior spaces where Cannabis,
cash or currency is being stored for any period of time on a regular basis; all areas where the
purchase, Sale, Distribution, or Transfer of Cannabis or Cannabis Products take place; and all
interior spaces where diversion of Cannabis could reasonably occur. The City Licensee shall be
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responsible for ensuring that the security surveillance camera’s footage is remotely accessible by
the Police Chief, and that it is compatible with the City’s software and hardware. In addition,
remote and real-time, live access to the video footage from the cameras shall be provided to the
Police Chief. Video recordings shall be maintained for a minimum of 60 days, and shall be made
available to the Police Chief upon request. Video shall be of sufficient quality for effective
prosecution of any crime found to have occurred on the Premises of the Commercial Cannabis
Business.
5. Sensors shall be installed to detect entry and exit from all secure areas.
6. Panic buttons shall be installed in all Commercial Cannabis Businesses.
7. A professionally installed, maintained, and monitored alarm system, with the required City
alarm permit under Chapter 9.06.150 of this Code.
8. Security personnel shall be on the Premises 24 hours a day or alternatively, as authorized by
the Police Chief. Security personnel must be licensed by the State of California Bureau of
Security and Investigative Services personnel and shall be subject to the prior review and
approval of the Police chief, with such approval not to be unreasonably withheld.
9. Each Commercial Cannabis Business shall have the capability to remain secure during a
power outage and shall ensure that all access doors are not solely controlled by an electronic
access panel to ensure that locks are not released during a power outage.
B. Each Commercial Cannabis Business shall identify a designated security
representative/liaison to the City, who shall be reasonably available to meet with the Police Chief
regarding any security related measures or and operational issues.
C. As part of the application and licensing process, each Commercial Cannabis Business shall
have a storage and transportation plan, which describes in detail the procedures for safely and
securely storing and transporting all Cannabis, Cannabis Products, and any currency.
D. Each Commercial Cannabis Business shall cooperate with the City whenever the City
Manager makes a request, upon reasonable notice to the Commercial Cannabis Business, to
inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter.
E. A Commercial Cannabis Business shall notify the Police chief within 24 hours after
discovering any of the following:
1. Significant discrepancies identified during inventory. The level of significance shall be
determined by the regulations promulgated by the Police chief.
2. Diversion, theft, loss, or any criminal activity involving the Commercial Cannabis Business
or any Owner, Officer, Manager, agent, or employee of the Commercial Cannabis Business.
3. The loss or unauthorized alteration of records related to Cannabis, registering qualifying
patients, primary caregivers, or employees or agents of the Commercial Cannabis Business.
4. Any other breach of security.
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5.19.170 Community Relations.
A. Each Commercial Cannabis Business shall provide the name, telephone number, and email
address of a community relations contact to whom notice of problems associated with the
Commercial Cannabis Business can be provided in addition to applicable City and State
enforcement divisions. Each Commercial Cannabis Business shall also provide the above
information to all businesses located within one hundred (100) feet of the Premises of the
Commercial Cannabis Business and to all residences located within three hundred (300) feet of
the Premises of the Commercial Cannabis Business.
B. During the first year of Operation pursuant to this Chapter, the Owner, Manager, and
community relations contact from each Commercial Cannabis Business shall attend a quarterly
meeting with the City Manager and other interested parties as deemed appropriate by the City
Manager, to discuss costs, benefits, and other community issues arising as a result of
implementation of this Chapter. After the first year of Operation, the Owner, Manager, and
community relations contact from each such Commercial Cannabis Business shall meet with the
City Manager when and as requested by the City Manager.
5.19.180 Promulgation of Regulations, Standards, and Other Legal Duties.
A. In addition to any regulations adopted by the City Council, the City Manager is authorized to
establish, consistent with the terms of this Chapter, any additional administrative rules,
regulations and standards governing the issuance, denial or renewal of City Licenses; the City’s
oversight of the ongoing operation of Commercial Cannabis Businesses; and any other subject
determined to be necessary to carry out the purposes of this Chapter.
B. Regulations shall be published on the City’s website and maintained and available to the
public in the Office of the City Clerk.
C. Regulations promulgated by the City Council or the City Manager shall become effective and
enforceable upon date of publication on the City’s website or with respect to existing City
Licensees, upon the date specified in a written notice to the City Licensee. Commercial Cannabis
Businesses must comply with all state and local laws and regulations, including but not limited to
any rules, regulations or standards adopted by the City Manager.
5.19.190 Compliance With All Applicable Laws Required.
Nothing in this Chapter shall be construed as authorizing or condoning any actions that violate
federal, state or local law with respect to the operation of a Commercial Cannabis Business. It
shall be the responsibility of the City Licensees, Owners, Officers, and Managers of a
Commercial Cannabis Business to ensure that a Commercial Cannabis Business is, at all times,
operating in a manner compliant with all applicable federal, state, and local laws and regulations,
including for as long as applicable, all State Laws, any subsequently enacted state or local law or
regulatory, licensing, or certification standards or requirements, and any specific, additional
operating procedures or requirements which may be imposed by City as conditions of approval
of a State License or a City License.
Except as otherwise specifically provided herein, this Chapter incorporates the requirements and
procedures set forth in State Laws. In the event of a conflict between the provisions of this
Chapter and the provisions of State Laws or any other applicable state or local law, the more
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restrictive provision shall control. To the extent allowed by State Law, the City shall have the
right, but not the obligation, to enforce all applicable State Laws.
5.19.200 Right of Access & Testing.
A. City officials, employees, and their designees authorized to enforce the provisions of the Code
shall have full access to the Premises and records of every Commercial Cannabis Business in
order to:
1. Inspect the Premises for compliance with the Code and State Laws.
2. Test any equipment possessed by, in control of, or used by a City Licensee, Owner, Officer,
or Manager, and any other employee, agent, or volunteer of a City Licensee.
3. Test any Cannabis or Cannabis Product possessed by, in control of, or used by a City
Licensee, Owner, Officer or Manager, and any other employee, agent, or volunteer of a City
Licensee.
4. Copy any materials, books, or records of any City Licensee, Owner, Officer, or Manager,
and any other employee, agent, or volunteer of a City Licensee.
B. Failure by any City Licensee, Owner, Officer or Manager to cooperate and participate in any
City inspection or investigation under this section shall itself be a violation of this Chapter.
C. City officials, employees, and their designees authorized to enforce the provisions of the Code
shall have rights of access under subsection (A) during any inspection, investigation, review,
audit, or as otherwise allowed by law.
D. Prior notice of an inspection, investigation, review, or audit is not required.
E. Any inspection, investigation, review, or audit of a City Licensed Premises shall be conducted
anytime the City Licensee is exercising privileges under the City License, or as otherwise agreed
to by the City or its Manager.
F. This subsection shall not be construed to deprive a City Licensee, Owner, Officer, or
Manager, or any other employee, agent, or volunteer of a City Licensee of any privileged
guaranteed by the Constitutions of the United States and/or the State of California, or any other
statutory privileges.
5.19.210 Restrictions on Transfer, Change, or Alteration of City License or City Licensee.
A. A City License is valid only as to the City Licensee. No City Licensee is allowed to sell,
transfer, pledge, assign, grant an option, or otherwise dispose of its City License to any person
except pursuant to the terms of this section. Except as permitted, any such sale, transfer, pledge,
assignment, grant or attempted sale, transfer, pledge, assignment or grant shall be deemed to
constitute a voluntary surrender of the City License and such City License shall thereafter be null
and void, except as set forth in this Chapter.
B. A City Licensee may sell, transfer, pledge, assign, grant an option or otherwise dispose of less
than 50% ownership or control of a Commercial Cannabis Business with prior written approval
of the City Manager after submission of all required application materials, payment of applicable
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fees as set by resolution of City Council, and a determination that the applicants meet the
requirements of this Chapter such as to be entitled to the issuance of an original City License.
C. A City Licensee may change the form of business entity without applying to the City Manager
for a new City License, if the ownership of the new business entity is the same as the original
City Licensee business entity. Although a new City License is not required, the City Licensee
shall notify the City in writing of the change within 30 days of the change, and obtain an
amendment to the original City License after paying the applicable fee set by resolution of the
City Council.
D. A City Licensee may change the name of the business entity without applying to the City
Manager for a new City License. Although a new City License is not required, the City Licensee
shall notify the City in writing of the change at least 30 days prior to the change, and obtain an
amendment to the original City License after paying the applicable fee set by resolution of the
City Council.
E. No City Licensee shall operate, conduct, manage, engage in, or carry on the business of a
Commercial Cannabis Business under any name other than the name of the Commercial
Cannabis Business specified in the City License.
F. No City Licensee may avail themselves of the provisions of this Section if the City Manager
has notified the City Licensee that the City License has been or may be suspended, revoked, or
not renewed.
G. Failure to comply with this section constitutes grounds for suspension or revocation of a City
License.
5.19.220 Restrictions on Transfer, Change, or Alteration of Location.
A. A City License issued under this Chapter is valid only as to the Premises approved in
accordance with the City License, and is therefore nontransferable to other locations except as
authorized in this section. No City Licensee is authorized to relocate to other areas or units
within a building structure without first obtaining written approval from the City Manager,
regardless of any possessory interest or right to possession to such additional space.
B. No City Licensee shall change the location of the Premises approved in accordance with the
City License until any such change of location is approved by the City Manager or his/her
designee. The City Manager shall adopt a process (to include any necessary forms and
procedures) for Premises relocation that includes, but is not limited to, the following:
1. The City Licensee shall submit a change of location application to the City at least 90 days
prior to the proposed change.
2. The proposed location shall meet all of the requirements under this Code, including but not
limited to this Chapter and Title 19.
3. The proposed location shall be reviewed and evaluated using review criteria as referenced in
Section 5.19.060.
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4. The relocation of a City Licensee’s Premises shall be subject to the prior review and
approval by the Development Services Director and any and all other licenses, approvals, or
permits required under State Law and the Code.
C. All required state and City approvals, plan approvals, permits, and licenses must be obtained
before causing, allowing, or licensing alterations to, and/or extensions or expansions of, the
existing Premises building(s), structure(s), or portions thereof, approved as a location for a
Commercial Cannabis Business. Said alterations, extensions, or expansions shall comply with all
applicable laws, regulations and standards, including those concerning building safety and
occupancy.
5.19.230 Expiration of City License.
A City License issued pursuant to this Chapter shall expire twelve (12) months after the date of
its issuance. City Licenses may be renewed as provided in Section 5.19.240.
5.19.240 Renewal of City License.
A. A City License shall automatically renew on an annual basis unless the City Manager
determines prior to the date on which the City License is to be automatically renewed that any of
the factors identified in subsection C below exist. A City Licensee shall have the duty to ensure
that all City records generated pursuant to this Chapter are accurate and up-to-date prior to
automatic renewal, including but not limited to information regarding the operation and
ownership of each Commercial Cannabis Business.
B. The applicant shall pay a renewal fee in an amount to be set by the City Council to cover the
costs incurred by the City to continue to administer the program created under this Chapter.
C. A City License shall not automatically renew if any of the following grounds exists:
1. Any of the grounds for suspension or revocation under section 5.19.270;
2. The City License is suspended or revoked at the time of the application.
3. The Commercial Cannabis Business has not been in regular and continuous operation in the
four months prior to the renewal application.
4. The City Licensee fails to or is unable to renew its State License.
5. The City Licensee has made a false, misleading or fraudulent statement or omission of fact
as to any information provided to City pursuant to this Chapter.
6. The City Licensee fails to ensure that all City records generated pursuant to this Chapter are
accurate and up-to-date prior to the automatic renewal.
F. The City Manager is authorized to make all decisions concerning the issuance of a renewal
license. In making the decision, the City Manager is authorized to impose additional conditions
to a renewal license, if it is determined to be necessary to ensure compliance with State or local
laws and regulations or to preserve the public health, safety or welfare.
G. If a renewal application is denied, a person may file a new application pursuant to this
Chapter no sooner than one year from the date of the rejection. The City Manager shall provide
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notice to the applicant that judicial review of the City Manager’s denial may be had pursuant to
California Code of Procedure section 1085.
5.19.250 Effect of State License Suspension, Revocation, or Termination.
A. Suspension of a State License shall immediately suspend the ability of a Commercial
Cannabis Business to operate within the City, until the State of California, or its respective
department or division, reinstates or reissues the State License.
B. Should the State, or any of its departments or divisions, revoke or terminate a State License,
such revocation or termination shall also revoke or terminate the City License and City
Licensee’s ability to operate a Commercial Cannabis Business within the City.
5.19.260 Suspension and Revocation of City License.
The following may constitute grounds for suspension or revocation of a City License:
A. Failure of a City Licensee to comply with any requirement imposed by the provisions of this
Code (or successor provision or provisions) including any rule, regulation, condition or standard
adopted pursuant to this Chapter, or any term or condition imposed on the City License, or any
provision of local or State Laws and/or regulations. Any act or omission of any Owner, Officer,
Manager, or employee of a City Licensee constituting a violation of the provisions of this
Chapter shall be deemed the act or omission of the City Licensee for purposes of determining
whether the City License shall be suspended and/or revoked.
B. Any change in the ownership of a City Licensee that does not have City’s prior written
approval, if required under this Chapter.
C. Revocation of a City Licensee’s State License.
D. City is denied access to the Premises or records of a City Licensee.
E. The City Licensee, or any of its Owners, Officers, or Managers has been adversely sanctioned
or fined for, charged with, or found guilty of or plead guilty or no contest to a charge of
operating a Commercial Cannabis Business without the necessary licenses and approvals from
the applicable state and/or local jurisdictions.
F. Conviction of a City Licensee, Owner, Officer, or Manager for any felony offense.
G. Any City Licensee, Owner, Officer or Manager is charged with any of the following:
1. A violent felony, as specified in Section 667.5(c) of the Penal Code.
2. A serious felony, as specified in Section 1192.7(c) of the Penal Code.
3. A felony involving fraud, deceit, or embezzlement.
4. A felony for hiring, employing, or using a minor in transporting, carrying, selling, giving
away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to
sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.
5. A felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of
the Health and Safety Code.
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6. A felony or misdemeanor involving the illegal possession for sale, sale, manufacture,
transportation, or cultivation of a controlled substance occurring after January 1, 2016.
If the City Manager determines that a ground for suspension and/or revocation of a City License
exists, the City Manager shall give notice of suspension and/or revocation by dated written
notice to the City Licensee. The City Manager shall cause the City Licensee to be served, either
personally or by first class mail addressed to the address listed on the application, with the
written notice suspending or revoking the City License. This notice shall state the reasons for the
action, the effective date of the decision, and the right of the City Licensee to appeal the
decision.
5.19.270 Advertising and Marketing of Cannabis.
A. It is illegal to Market or Advertise within the City Cannabis or Cannabis Products that are not
permitted to be sold in the City under State Law or this Chapter.
B. Advertising or Marketing is prohibited in the City on any sign located within 1,000 feet of a
Day Care Center; school providing instruction in kindergarten or any grades 1 through 12; Youth
Center; Youth-Oriented Facility; or Private or Public Park.
C. Advertising or Marketing is prohibited in the City on any sign within 1,000 feet of a
Treatment Center.
D. Advertising or Marketing in the City shall not contain a depiction of an individual under 21
years of age consuming Cannabis or Cannabis Products.
E. Advertising or Marketing in the City shall not be Attractive to Youth.
F. Advertising or Marketing in the City in a manner that is false or untrue or that, irrespective of
falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant,
scientific, or technical matter, tends to create a misleading impression, is prohibited.
G. Advertisements or Marketing in the City shall not contain any statement concerning a brand
or product that is inconsistent with any statement on the labeling thereof.
5.19.280 Enforcement and Penalties.
A. It is unlawful to:
1. Operate, conduct, or direct Commercial Cannabis Activity in the City without a valid City
License authorizing such Activity;
2. Own, set up, operate, or maintain a Commercial Cannabis Business in the City without a
valid City License;
3. Participate as an employee, contractor, agent, volunteer, or in any other capacity in a
Commercial Cannabis Business in the City without a valid City License;
3. Use any parcel or any portion of parcel of land as a Commercial Cannabis Business without
a valid City License;
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4. Lease, rent to, or otherwise allow a Commercial Cannabis Business to occupy any parcel or
portion of parcel of land in the City without a valid City License.
B. It shall be unlawful for any person to violate any provision, or to fail to comply with the
requirements, of this Chapter or any regulation adopted hereunder. Any person violating any of
the provisions or failing to comply with any of the mandatory requirements of this Chapter or
any regulation adopted hereunder shall be guilty of a misdemeanor punishable by a fine of not
more than $1,000.00 or imprisonment for a period of not more than six months, or by both a fine
and imprisonment. Each day that a violation continues is deemed to be a new and separate
offense. No proof of knowledge, intent, or other mental state is required to establish a violation.
C. Any condition caused or allowed to exist in violation of any of the provisions of this Chapter
or any regulation adopted hereunder is a public nuisance and may be abated by the City, or by
the City Attorney on behalf of the people of the State of California, as a nuisance by means of a
restraining order, injunction, or any other order or judgment in law or equity issued by a court of
competent jurisdiction. The City, or the City Attorney on behalf of the people of the State of
California, may seek injunctive relief to enjoin violations of, or to compel compliance with this
Chapter or seek any other relief or remedy available at law or equity, including the imposition of
monetary civil penalties. Each day that a violation continues is deemed to be a new and separate
offense and subject to a maximum civil penalty of $10,000 for each and every offense.
D. Whenever in this Chapter any act or omission is made unlawful, it shall include causing,
aiding, abetting, suffering, or concealing the fact of such act or omission.
E. The remedies specified in this Section are cumulative and in addition to any other remedies
available under State or local law for a violation of this Code.
F. Nothing in this Section shall be construed as requiring the City to allow, permit, license,
authorize, or otherwise regulate Commercial Cannabis Activity, or as abridging the City’s police
power with respect to enforcement regarding Commercial Cannabis Activity.
5.19.290 Effectiveness Conditioned on Passage of Tax Measure.
The effectiveness of the ordinance enacting this Chapter is contingent upon voter approval and
the continuous legal validity of a tax measure anticipated to be submitted to voters in June 2018.
The tax measure would impose an excise tax, in an amount and form yet to be determined, on all
Commercial Cannabis Businesses. In the event the proposed tax measure is not approved by the
voters, or is suspended or invalidated for any reason, the provisions of this ordinance permitting
Commercial Cannabis Businesses shall be void without any further action required by the City.
Section II. Severability
If any portion of this Ordinance, or its application to any person or circumstance, is for
any reason held to be invalid, unenforceable or unconstitutional, by a court of competent
jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceabi lity or
unconstitutionality shall not affect the validity or enforceability of the remaining portions of the
Ordinance, or its application to any other person or circumstance. The City Council of the City of
Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase
of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses
or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional.
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Notwithstanding the foregoing, the City Council reserves the right to modify or repeal this
Ordinance, in its sole discretion, if all or any portion of it is invalidated on its face or as applied.
Section III. Construction
The City Council of the City of Chula Vista intends thi s Ordinance to supplement, not to
duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in
light of that intent.
Section IV. Effective Date
This Ordinance shall take effect and be in force on the thirtieth day after its final passage.
Section V. Publication
The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause
the same to be published or posted according to law.
Presented by Approved as to form by
_____________________________________ ____________________________________
Gary Halbert Glen R. Googins
City Manager City Attorney