HomeMy WebLinkAbout2018/11/13 Item 7
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DISCUSSION
In March 2018, City Council voted to approve Ordinance 3418, which created a licensing and regulatory
structure for the operation of cannabis businesses in the City of Chula Vista; such structure is codified in
Chula Vista Municipal Code chapter 5.19. Based on both internal reviews and public feedback, staff now
recommends that sections of chapter 5.19 be amended to clean up and clarify existing language, provide
additional information, and maintain consistency with various state regulations.
Proposed amendments include the following clarifications and additions:
Language explaining when the term “Owner” in the Phase One application process refers to an
Owner of the Commercial Cannabis Business as opposed to an Owner of the Premises
More specific information as to the minimum components that should be included in each operating
plan submitted during the Phase One application
Enumeration of the specific factors that may result in revocation, denial, or refusal to renew an
employee work permit rather than referring to a another location in the ordinance where such
factors are listed
Explicit language prohibiting temporary cannabis events
Clear notice that violations by license holder employees or agents may result in revocation or non-
renewal of a City license
A direct statement that fees, costs, and charges imposed are deemed a debt to the City and are
recoverable by all legally available means
Clarification that security surveillance must monitor both exterior and interior spaces where
diversion could reasonably occur
Various drafting error corrections intended to eliminate confusion
The proposed amendments also include the following changes:
A provision to allow those with pharmaceutical business experience to instead qualify under the
management qualifications provision, as few, if any, pharmaceutical businesses have owners with a
30% interest
Language tying the value of goods a cannabis delivery employee is permitted to carry to the amount
authorized under state law
A requirement that security footage be maintained for a minimum of 90 days, which tracks state
law requirements
Staff requests that the recommended amendments be approved to enhance clarity, maintain consistency,
and streamline implementation of the Chapter 5.19 provisions.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific
and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11),
is not applicable to this decision for purposes of determining a disqualifying real property-related financial
conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
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Staff is not independently aware, and has not been informed by any City 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. These amendments support
the Operational Excellence goal as they seek to clarify existing language and provide additional notice of
requirements and prohibitions.
CURRENT-YEAR FISCAL IMPACT
The subject amendments to chapter 5.19 result in no current year fiscal impact to the City.
ONGOING FISCAL IMPACT
The subject amendments to chapter 5.19 may enhance the City’s ability to recover fees associated with
commercial cannabis regulation. However, it is difficult and speculative to predict how such abili ty would
be enhanced and in what amounts.
ATTACHMENTS
None.
Staff Contact: Kelley Bacon; Megan McClurg
C:\Users\shereek\Desktop\Ordinance Amending CVMC 5.19 11.8.18.doc
ORDINANCE NO.
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
SECTIONS OF CHULA VISTA MUNICIPAL CODE CHAPTER
5.19
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 Business and Professions Code section 26200(a)(1), local
jurisdictions are authorized to either permit and regulate or prohibit the operation of cannabis
businesses within their boundaries; and
WHEREAS, the California Attorney General’s 2008 Guidelines for the Security and
Non-Diversion of Marijuana Grown for Medical Use (“Guidelines”) recognizes that the
concentration of cannabis in any location or premises without adequate security increases the
risk that nearby homes or businesses may be impacted negatively by nuisance activity or more
significant levels of crime; 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, pursuant to its police powers, including but not limited to California
Constitution Article XI, Section 5(b) authority over municipal affairs, the City of Chula Vista has
general authority over the public health, safety, and welfare of its citizens; and
WHEREAS, the proposed amendments do not cause a substantial change to the
objectives and policies contained in Chula Vista Municipal Code chapter 5.19;
WHEREAS, it is the intent of the City Council to adopt a comprehensive set of
requirements, restrictions, and robust enforcement procedures with regard to cannabis activity
within the City in order to protect public safety, health, and other law enforcement interests;
NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows:
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Section I. Environmental Findings
The City Council finds that the adoption of this amending 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 amending 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 the Ordinance
would create cumulative impacts that are significant because the 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 amending 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 amending Ordinance is also exempt under Section 15301 (Existing Facilities) since
permitted cannabis businesses under the Ordinance may locate in existing facilities, and
any additions to structures would be expected to be also exempt under 15301;
4. The amending Ordinance is also 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.
Section II. Chapter 5.19 of the Chula Vista Municipal Code regarding commercial
cannabis is amended to read as follows:
[Note: [Sections 5.19.010 through 5.19.040 remain unchanged]]
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. Application Requirements. 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 of the Commercial Cannabis Business, Officers, and
Managers.
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c. If any Applicant or Owner of the Commercial Cannabis Business 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 as an owner,
manager, lender, employee, volunteer, or agent by the Applicant and all Owners of the
Commercial Cannabis Business, 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 each of the following:
i. That at least one Manager has one of the following types of experience:
(A) a minimum of twelve (12) consecutive months, within the previous 5 years, as a
Manager with managerial oversight or direct engagement in the day-to-day operation of a lawful
Commercial Cannabis Business 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
(B) a minimum of sixty (60) consecutive months, within the previous 7 years, as a
Manager with managerial oversight and direct engagement in the day-to-day operation of a
lawful pharmaceutical business licensed and regulated by a state or the federal government. The
60 months of experience demonstrated must be of a type substantially similar to that allowed by
the City License for which the Applicant is applying; and
ii. That at least one Owner of the Commercial Cannabis Business has one of the following
types of experience:
(A) a minimum of twelve (12) consecutive months as an Owner of a Commercial
Cannabis Business, within the previous 5 years, in a jurisdiction permitting such Commercial
Cannabis Activity. The 12 consecutive months of lawful Commercial Cannabis Business
ownership demonstrated must be of a type substantially similar to that allowed by the City
License for which the Applicant is applying; or
(B) a minimum of thirty-six (36) consecutive months as an owner with an aggregate
ownership of 30% or more in a lawful alcohol 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; or
(C) a minimum of thirty-six (36) consecutive months as an owner with an aggregate
ownership interest of 30% or more in a lawful, properly licensed business with an average of ten
(10) or more employees located within the City, thereby demonstrating a record of experience,
familiarity and compliance with City rules and regulations.
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f. Documentation demonstrating a minimum of $250,000 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: capacity to
comply with State and local laws and regulations; adequate staffing, security, and employee
training; effective exterior and interior customer flow management, if applicable; compatibility
with the surrounding neighborhood; community outreach; and environmental sustainability.
i. Submission by each individual Applicant, Owner of the Commercial Cannabis Business,
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 of the Commercial Cannabis Business 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 of the
Commercial Cannabis Business, Officer, and Manager, that all information provided thereby is
true and correct and that he/she has not conducted, facilitated, caused, aided, abetted, suffered, or
concealed unlawful Commercial Cannabis Activity in the City or any other jurisdiction.
k. If an individual Applicant, Owner of the Commercial Cannabis Business, 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. Site Identification. Phase One Applicants must also identify and submit a proposed site for
its proposed Commercial Cannabis Business. Such submittal shall include the address and a
general description of the proposed site location. In the event the site will be leased or acquired
from another Person, the Applicant shall be required to provide a signed and notarized statement
from the Owner(s) of the site on a form approved by the City acknowledging that the Owner(s)
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of the site: (a) has read this Chapter; (b) acknowledges and agrees to comply with all Premises
Owner requirements set forth herein; and (c) the site is available for the operation of the
Commercial Cannabis Business on terms already agreed to or to be negotiated with the Applicant
that are or shall be consistent with the requirements of this Chapter.
3. Application Fee. The Phase One Application shall be accompanied by a nonrefundable
application fee established by resolution of the City Council.
4. Initial Application Review by Finance Director. 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 of the Commercial Cannabis Business, Officer, or Manager is
under twenty-one years of age.
g. The Applicant or any Owner of the Commercial Cannabis Business 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 of the Commercial Cannabis Business, 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.
5. Application Review by Police Chief. 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:
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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 of the Commercial Cannabis Business, 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 of the Commercial Cannabis Business, Officer, or Manager
has been convicted of a felony.
d. The Applicant or any Owner of the Commercial Cannabis Business, 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 of the Commercial
Cannabis Business, 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 of the Commercial Cannabis Business, 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.
g. The Applicant, or any Owner of the Commercial Cannabis Business, Officer, or Manager
has conducted, facilitated, caused, aided, abetted, suffered, or concealed unlawful Commercial
Cannabis Activity in the City or any other jurisdiction.
6. Notice of Decision. 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.
7. Invitation to Submit Phase Two Application; Merit-Based System. 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 available City Licenses for those license types,
a merit-based system established by the City shall be used to determine which of the qualified
Applicants is invited to submit a Phase Two Application.
8. Phase One Approvals Valid for Six Months. 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
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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. Application Requirements. 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 locational 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.
g. Information required or necessary to demonstrate the ability to comply with the
applicable operational requirements set forth in sections 5.19.080 through 5.19.140, as
applicable.
2. Application Fee. The Phase Two Application shall be accompanied by a non-refundable
application fee established by resolution of the City Council.
3. Site Approval. 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.
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4. Site Control. 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 on a
form approved by the City acknowledging that the Owner(s) of the Premises: (a) has read this
Chapter; (b) acknowledges and agrees to comply with all Premises Owner requirements set forth
herein; and (c) the site is available for the operation of the Commercial Cannabis Business on
terms agreed to with the Applicant that are consistent with the requirements of this Chapter.
5. Application Review by Development Services Director, Fire Chief, and Police Chief. 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.
j. An Owner of the proposed Premises location has conducted, facilitated, caused, aided,
abetted, suffered, or concealed unlawful Commercial Cannabis Activity in the City or any other
jurisdiction.
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6. Notice of Decision. 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. Conditional City Approval Valid for Six Months. Upon obtaining final approval of a Phase
Two Application, an applicant shall be issued a conditional City approval. The conditional City
approval 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 Approval Period”), the
conditional City approval 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 approval is the State’s determination on such Applicant’s pending State License
application, the validity of the conditional City approval 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 Approval Period. City
regulations issued pursuant to this Chapter may provide for other extensions of the Conditional
Approval Period in limited, defined circumstances.
8. Pipeline Projects; Priority Regulations to be Issued. Prior to commencing the application
process for City Licenses, City will develop and issue regulations to establish and clarify
development rights priorities between, on the one hand, Commercial Cannabis Businesses, and,
on the other hand, uses and businesses with separation requirements with respect to Commercial
Cannabis Businesses. Regulations shall include, among other things, provisions applicable to
Pipeline Projects and Existing Residential Uses.
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.
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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 apply:
a. The employee has made a false, misleading or fraudulent statement or omission of fact in
the employee work permit application or renewal application;
b. The employee is under twenty-one years of age;
c. The employee has failed to submit fingerprints and other information deemed necessary by
the Police Chief for a background check by the Chula Vista Police Department.
d. The employee has been convicted of a felony.
e. The employee has been convicted of any Crime of Moral Turpitude or any offense
involving the use of a weapon.
f. There are charges pending against the employee for a felony offense, a Crime of Moral
Turpitude, or an offense involving the use of a weapon.
g. The employee 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.
h. The employee has conducted, facilitated, caused, aided, abetted, suffered, or concealed
unlawful Commercial Cannabis Activity in the City or any other jurisdiction.
i. The employee has failed 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.
j. The employee has been adversely sanctioned or fined for, charged with, or found guilty of
or pled 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 jurisdiction.
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.
E. Limits on Number of Applications Per Applicant/Owner. The number of applications allowed
to be filed by each Applicant/Owner shall be determined by regulations promulgated by the City
Council or the City Manager. Limits imposed, if any, may be applied on an overall basis, per
license type, and/or per Council District.
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 Premises of a Commercial Cannabis Business shall be a contiguous,
fully enclosed area and shall be occupied only by one Licensee.
B. Storefront Retailers.
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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 Specific Plans or Sectional
Planning Area Plans that allow retail sales uses (including such zones that allow mixed
commercial and residential 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 Specific Plans or 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 locate within 1,000 feet of any Day Care Center or any public
or private school providing instruction for kindergarten or any grades 1 through 12.
b. Storefront Retailers shall not locate within 600 feet of any Treatment Facility, Youth
Center, Youth-Oriented Business, Public Park, or Private Park.
c. Storefront Retailers shall not locate within 150 feet of any Residential Zone.
4. Retail Sales Requirements Apply. 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 Specific Plans or
Sectional Planning Area Plans that allow industrial uses.
2. Separation Requirements. Non-Storefront Retailers shall not locate within 150 feet of any
Residential Zone.
3. Industrial Use Requirements Apply. 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
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equivalent Industrial Zones in Specific Plans or 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. Industrial Use Requirements Apply. 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, or Residential Zone, the
“measuring point” shall be the point located on the legal parcel boundary line abutting a Public
Street or zone line, as applicable, 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 illustrations below.
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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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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.
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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3. Interpretations, Determinations Made by Development Services Director. Interpretations and
determinations of compliance with the requirements of this section and the calculation 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.
[Note: [Section 5.19.070 remains unchanged]]
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.
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.
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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, Security, and Operating Plans. Each Commercial Cannabis Business must comply
with all requirements of the security plan approved by the Police Chief; with all safety
requirements of the Emergency Action and Fire Prevention Plan approved by the Fire Chief; and
with all provisions of the operating plan approved by the Development Services Director.
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.
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.
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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.
U. Training Requirements. City reserves the right to impose training requirements on Managers,
employees, and others involved in the Operation of a Commercial Cannabis Business, with the
specific requirements to be determined and implemented through regulations.
V. Temporary Events Prohibited. Cannabis temporary events, as described in California Business
and Professions Code section 26200 as presently adopted or further amended, are prohibited in
the City at all times.
[Note: [Section 5.19.090 remains unchanged]]
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.
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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 not at any time carry Cannabis and/or
Cannabis Goods worth an amount in excess of that authorized by State Laws. 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.
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h. A Non-Storefront Retailer shall not provide free Cannabis or Cannabis Products to any
Person.
[Note: [Sections 5.19.110 through 5.19.150 remain unchanged]]
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. All Cannabis and Cannabis Products, including Live Plants, shall be kept in a secure manner
so as to prevent diversion, theft, and loss. All Cannabis and Cannabis Products that are being
stored must be stored in a secured and locked room, safe, or vault. All Cannabis and Cannabis
Products on display for Sale shall be displayed in a secure case.
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
exterior and 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 90
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.
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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.
[Note: [Sections 5.19.170 through 5.19.190 remain unchanged]]
5.19.192 License Holder Responsible for Violations By Employees or Agents.
The City Licensee shall be responsible for all violations of the regulations and ordinances of the
City committed by the City Licensee, or any employee or agent of the City Licensee. Violations
by a City Licensee, or employee or agent of the City Licensee, may result in revocation or non-
renewal of the City License.
5.19.194 Fees Deemed Debt to City
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt
to the City that is recoverable in any manner authorized by law.
[Note: [Sections 5.19.200 through 5.19.290 remain unchanged]]
Section III. 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, unenforceability or
unconstitutionality shall not affect the validity or enforceability of the remaining portions of the
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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.
Section IV. Construction
The City Council of the City of Chula Vista intends this 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 V. Effective Date
This Ordinance shall take effect and be in force on the thirtieth day after its final passage.
Section VI. 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
3.6.18 Ordinance
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,
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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 City.
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 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
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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.
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,
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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,
grading, or trimming of Cannabis, other than for personal use. A City License 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.
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“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.
“Existing Residential Use” means a residential Pipeline Project or lawfully constructed structure
or project intended for residential use within a Residential Zone.
“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.
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“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.
“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, direct or indirect, 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 or long-term lease
interest, direct or indirect, of ten percent (10%) or more in the Premises, whether as a partner,
shareholder, member, joint tenant or the like.
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“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.
“Pipeline Project” means a proposed use or project for which the City has received all required
applications, and required supporting information and documents, and which has been entered
into the City’s project tracking system.
“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, or portions thereof, 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, and is designated as the structure or structures and land, or portions thereof where
the Commercial Cannabis Activity will be or is conducted.
“Private Parks” means privately owned outdoor premises, available for community use,
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.
“Residential Zone” means an R-1, R-2, or R-3 zone, or an equivalent residential zone within a
City approved Sectional Planning Area plan or Specific Plan, in each case within which
residential uses are allowed by right and commercial uses are allowed only as accessory uses.
“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.
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“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:
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.
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“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.
A. 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.
B. 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 available for issuance within the City shall be 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. Indoor Cultivator: Ten (10) total City Licenses. Each Cultivator License shall be limited to a
maximum of 20,000 total square feet of Canopy.
C. 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; and
3. Testing Laboratory.
D. 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.
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E. No City License shall issue for any Commercial Cannabis Business type other than those
identified in subsections (A) through (C) above.
F. 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.
G. 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. Application Requirements. 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 of the Commercial Cannabis Business, Officers, and
Managers.
c. If any Applicant or Owner of the Commercial Cannabis Business 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 as an owner,
manager, lender, employee, volunteer, or agent by the Applicant and all Owners of the
Commercial Cannabis Business, 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 each of the following:
i. That at least one Manager has hadone of the following types of experience:
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(A) a minimum of twelve (12) consecutive months, within the previous 5 years, as a
Manager with managerial oversight or direct engagement been directly engaged in the day-to-
day operation of a lawful Commercial Cannabis Business for a minimum of twelve (12)
consecutive months, 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
(B) a minimum of sixty (60) consecutive months, within the previous 7 years, as a
Manager with managerial oversight and direct engagement in the day-to-day operation of a
lawful pharmaceutical business licensed and regulated by a state or the federal government. The
60 months of experience demonstrated must be of a type substantially similar to that allowed by
the City License for which the Applicant is applying; and
ii. That at least one Owner of the Commercial Cannabis Business has one of the following
types of experience:
(A) a minimum of twelve (12) consecutive months as an Owner of a Commercial
Cannabis Business, within the previous 5 years, in a jurisdiction permitting such Commercial
Cannabis Activity. The 12 consecutive months of lawful Commercial Cannabis Business
ownership demonstrated must be of a type substantially similar to that allowed by the City
License for which the Applicant is applying; or
(B) a minimum of thirty-six (36) consecutive months as an owner with an aggregate
ownership of 30% or more in 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;
or
(C) a minimum of thirty-six (36) consecutive months as an owner with an aggregate
ownership interest of 30% or more in a lawful, properly licensed business with an average of ten
(10) or more employees located within the City, thereby demonstrating a record of experience,
familiarity and compliance with City rules and regulations.
f. Documentation demonstrating a minimum of $250,000 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: capacity to
comply with State and local laws and regulations; for adequate staffing, security, and employee
training, consumer education;, effective exterior and interior customer flow management, if
applicable; compatibility with the surrounding neighborhood; community outreach; and
environmental sustainabilityand compliance with State and local laws and regulations.
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i. Submission by each individual Applicant, Owner of the Commercial Cannabis Business,
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 of the Commercial Cannabis Business 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 of the
Commercial Cannabis Business, Officer, and Manager, that all information provided thereby is
true and correct and that he/she has not conducted, facilitated, caused, aided, abetted, suffered, or
concealed unlawful Commercial Cannabis Activity in the City or any other jurisdiction.
k. If an individual Applicant, Owner of the Commercial Cannabis Business, 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. Site Identification. Phase One Applicants must also identify and submit a proposed site for
its proposed Commercial Cannabis Business. Such submittal shall include the address and a
general description of the proposed site location. In the event the site will be leased or acquired
from another Person, the Applicant shall be required to provide a signed and notarized statement
from the Owner(s) of the site on a form approved by the City acknowledging that the Owner(s)
of the site: (a) has read this Chapter; (b) acknowledges and agrees to comply with all Premises
Owner requirements set forth herein; and (c) the site is available for the operation of the
Commercial Cannabis Business on terms already agreed to or to be negotiated with the Applicant
that are or shall be consistent with the requirements of this Chapter.
3. Application Fee. The Phase One Application shall be accompanied by a nonrefundable
application fee established by resolution of the City Council.
4. Initial Application Review by Finance Director. 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:
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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 of the Commercial Cannabis Business, Officer, or Manager is
under twenty-one years of age.
g. The Applicant or any Owner of the Commercial Cannabis Business 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 of the Commercial Cannabis Business, 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.
5. Application Review by Police Chief. 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 of the Commercial Cannabis Business, 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 of the Commercial Cannabis Business, Officer, or Manager
has been convicted of a felony.
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d. The Applicant or any Owner of the Commercial Cannabis Business, 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 of the Commercial
Cannabis Business, 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 of the Commercial Cannabis Business, 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.
g. The Applicant, or any Owner of the Commercial Cannabis Business, Officer, or Manager
has conducted, facilitated, caused, aided, abetted, suffered, or concealed unlawful Commercial
Cannabis Activity in the City or any other jurisdiction.
6. Notice of Decision. 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.
7. Invitation to Submit Phase Two Application; Merit-Based System. 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 available City Licenses for those license types,
a merit-based system established by the City shall be used to determine which of the qualified
Applicants is invited to submit a Phase Two Application.
8. Phase One Approvals Valid for Six Months. 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. Application Requirements. 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.
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b. Information and diagrams demonstrating that the proposed Premises location complies
with the applicable locational 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.
g. Information required or necessary to demonstrate the ability to comply with the
applicable operational requirements set forth in sections 5.19.080 through 5.19.140, as
applicable.
2. Application Fee. The Phase Two Application shall be accompanied by a non-refundable
application fee established by resolution of the City Council.
3. Site Approval. 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. Site Control. 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 on a
form approved by the City acknowledging that the Owner(s) of the Premises: (a) has read this
Chapter; (b) acknowledges and agrees to comply with all Premises Owner requirements set forth
herein; and (c) the site is available for the operation of the Commercial Cannabis Business on
terms agreed to with the Applicant that are consistent with the requirements of this Chapter.
5. Application Review by Development Services Director, Fire Chief, and Police Chief. Phase
Two Applications shall be reviewed and are subject to approval by the Development Services
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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.
j. An Owner of the proposed Premises location has conducted, facilitated, caused, aided,
abetted, suffered, or concealed unlawful Commercial Cannabis Activity in the City or any other
jurisdiction.
6. Notice of Decision. 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. Conditional City Approval Valid for Six Months. Upon obtaining final approval of a Phase
Two Application, an applicant shall be issued a conditional City approval. The conditional City
approval 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 Approval Period”), the
conditional City approval 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 approval is the State’s determination on such Applicant’s pending State License
application, the validity of the conditional City approval 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 Approval Period. City
regulations issued pursuant to this Chapter may provide for other extensions of the Conditional
Approval Period in limited, defined circumstances.
8. Pipeline Projects; Priority Regulations to be Issued. Prior to commencing the application
process for City Licenses, City will develop and issue regulations to establish and clarify
development rights priorities between, on the one hand, Commercial Cannabis Businesses, and,
on the other hand, uses and businesses with separation requirements with respect to Commercial
Cannabis Businesses. Regulations shall include, among other things, provisions applicable to
Pipeline Projects and Existing Residential Uses.
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
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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 apply:
a. The employee has made a false, misleading or fraudulent statement or omission of fact in
the employee work permit application or renewal application;
b. The employee is under twenty-one years of age;
c. The employee has failed to submit fingerprints and other information deemed necessary by
the Police Chief for a background check by the Chula Vista Police Department.
d. The employee has been convicted of a felony.
e. The employee has been convicted of any Crime of Moral Turpitude or any offense
involving the use of a weapon.
f. There are charges pending against the employee for a felony offense, a Crime of Moral
Turpitude, or an offense involving the use of a weapon.
g. The employee 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.
h. The employee has conducted, facilitated, caused, aided, abetted, suffered, or concealed
unlawful Commercial Cannabis Activity in the City or any other jurisdiction.
i. The employee has failed 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.
j. The employee has been adversely sanctioned or fined for, charged with, or found guilty of
or pled 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 jurisdiction.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.
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.
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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.
E. Limits on Number of Applications Per Applicant/Owner. The number of applications allowed
to be filed by each Applicant/Owner shall be determined by regulations promulgated by the City
Council or the City Manager. Limits imposed, if any, may be applied on an overall basis, per
license type, and/or per Council District.
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 Premises of a Commercial Cannabis Business shall be a contiguous,
fully enclosed area and shall be occupied only 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 Specific Plans or Sectional
Planning Area Plans that allow retail sales uses (including such zones that allow mixed
commercial and residential 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
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equivalent Industrial Zones in Specific Plans or 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 locatedlocate within 1,000 feet of any Day Care Center or
any public or private school providing instruction for kindergarten or any grades 1 through 12.
b. Storefront Retailers shall not be locatednot locate within 600 feet of any Treatment
Facility, Youth Center, Youth-Oriented Business, Public Park, or Private Park.
c. Storefront Retailers shall not be locatedlocate within 150 feet of any Residential Zone.
4. Retail Sales Requirements Apply. 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 Specific Plans or
Sectional Planning Area Plans that allow industrial uses.
2. Separation Requirements. Non-Storefront Retailers shall not be locatedlocate within 150 feet
of any Residential Zone.
3. Industrial Use Requirements Apply. 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 Specific Plans or 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. Industrial Use Requirements Apply. Manufacturers, Distributors, Testing Laboratories, and
Cultivators are industrial uses for the purpose of the Code. Except as otherwise provided in this
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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, or Residential Zone, the
“measuring point” shall be the point located on the legal parcel boundary line abutting a Public
Street or zone line, as applicable, 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 illustrations below.
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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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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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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.
3. Interpretations, Determinations Made by Development Services Director. Interpretations and
determinations of compliance with the requirements of this section and the calculation 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.
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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.
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,
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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, and Operating 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; and
with all provisions of the operating plan approved by the Development Services Director.
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.
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.
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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.
U. Training Requirements. City reserves the right to impose training requirements on Managers,
employees, and others involved in the Operation of a Commercial Cannabis Business, with the
specific requirements to be determined and implemented through regulations.
V. Temporary Events Prohibited. Cannabis temporary events, as described in California Business
and Professions Code section 26200 as presently adopted or further amended, are prohibited in
the City at all times.
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 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,
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.
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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 at any time carry Cannabis and/or
Cannabis Goods worth an amount in excess of that authorized by State Laws$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.
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.
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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.
5.19.120 Operating Requirements for Manufacturers.
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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. All Cannabis and Cannabis Products, including Live Plants, shall be kept in a secure manner
so as to prevent diversion, theft, and loss. All Cannabis and Cannabis Products that are being
stored must be stored in a secured and locked room, safe, or vault. All Cannabis and Cannabis
Products on display for Sale shall be displayed in a secure case.
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
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exterior and 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
960 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.
5.19.190 Compliance With All Applicable Laws Required.
A. 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.
B. 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 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 as conditions of approval of a State License or a City License.
C. 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.
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5.19.192 License Holder Responsible for Violations By Employees or Agents.
The City Licensee shall be responsible for all violations of the regulations and ordinances of the
City committed by the City Licensee, or any employee or agent of the City Licensee. Violations
by a City Licensee, or employee or agent of the City Licensee, may result in revocation or non-
renewal of the City License.
5.19.194 Fees Deemed Debt to City
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt
to the City that is recoverable in any manner authorized by law.
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 (“Transfer”) its City License to
any Person except pursuant to the terms of this section. Except as permitted, any such Transfer
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or attempted Transfer 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 Transfer less than 50% ownership or control of a City License 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.
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 be allowed to Transfer all or any portion of its City License prior to
twelve (12) months after the City Licensee has opened and continuously operated its
Commercial Cannabis Business authorized thereunder.
F. 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.
G. 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.
H. For purposes of this section, the Transfer of all or any portion of a licensed Commercial
Cannabis Business shall constitute the Transfer of the underlying City License.
I. 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
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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.
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. An application for renewal of a City License shall be filed with the City Manager’s office at
least 60 calendar days prior to the expiration date of the current City License.
B. Any City Licensee submitting an application less than 60 days before its expiration shall be
required to pay a late renewal application fee, as established by resolution of the City Council.
Any renewal application filed less than 30 business days before its expiration may be rejected by
the City on that basis alone.
C. The renewal application shall be submitted on a form issued or approved by the City.
D. The applicant shall pay a fee in an amount to be set by the City Council to cover the costs
incurred by the City to administer the program created under this Chapter.
E. An application for renewal of a City License may be denied if any of the following grounds
exists:
1. Any of the grounds for suspension or revocation under section 5.19.260;
2. The City License has been 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.
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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.
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
on 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. The City Manager shall serve the City Licensee, either personally or by first class mail
addressed to the address listed on the renewal application, with dated written notice of the City
Manager’s decision to approve or deny the renewal, and the right of the City Licensee to seek
judicial review of the City Manager’s decision.
H. If a City Licensee submits the required renewal application, but a written approval from the
City has not been received prior to the expiration of the subject City License, such license shall
be deemed conditionally renewed until service of the City Manager’s written renewal decision.
I. If a renewal application is denied, the City License shall no longer be effective and all related
Commercial Cannabis Activity must cease immediately. A Person denied a renewal may file a
new application pursuant to this Chapter no sooner than one year from the date of the rejection.
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.
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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.
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.
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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;
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.
Ordinance
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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 November
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.