HomeMy WebLinkAboutCC ORD 2021-2487 Adding Chapter 9.60 to Municipal Code Regulations0
ORDINANCE NO. 2021 - 2487
NATIONAL CITY ORDINANCE ADDING CHAPTER 9.60 TO THE NATIONAL CITY
MUNICIPAL CODE REGULATION OF COMMERCIAL CANNABIS ACTIVITY
Section 9.60.010. Purpose and Intent.
It is the purpose and intent of this Chapter to implement the provisions of the Medicinal
and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") to accommodate the
needs of medically -ill persons in need of cannabis for medicinal purposes as
recommended by their health care provider(s), and to provide access to same. It is also
the purpose and intent of this Chapter to provide access to adult -use cannabis for persons
aged twenty-one (21) and over as authorized by the Control, Tax & Regulate the Adult
Use Cannabis Act ("AUMA" or "Proposition 64" approved by California voters in 2016),
while imposing sensible regulations on the use of land to protect the City of National City's
residents, neighborhoods, and businesses from disproportionately negative impacts. As
such, it is the purpose and intent of this Chapter to regulate the cultivation, processing,
manufacturing testing, sale, delivery, distribution and transportation of cannabis and
cannabis products in a responsible manner to protect the health, safety, and welfare of
the residents of the City of National City and to enforce rules and regulations consistent
with state and local law. It is the further purpose of intent of this Chapter to require all
commercial cannabis operators to obtain and renew annually a commercial cannabis
business permit to operate within the City of National City. Nothing in this Chapter is
intended to authorize the possession, use, or provision of cannabis for purposes that
violate state or local law. The provisions of this Chapter are in addition to any other
permits, licenses and approvals which may be required to conduct business in the City of
National City, and are in addition to any permits, licenses and approval required under
state, City, or other law.
Section 9.60.020. Legal Authority.
Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of
the MAUCRSA, and any subsequent state legislation and/or regulations regarding same,
the City of National City is authorized to adopt ordinances that establish standards,
requirements and regulations for the licensing and permitting of commercial cannabis
activity. Any standards, requirements, and regulations regarding health and safety,
security, and worker protections established by the State of California, or any of its
departments or divisions, shall be the minimum standards applicable in the City of
National City to all commercial cannabis activity.
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Section 9.60.030. Cannabis Cultivation and Commercial Cannabis Activities
Prohibited Unless Specifically Authorized by this Chapter.
Except as specifically authorized in this Chapter, the commercial cultivation, manufacture,
processing, storing, laboratory testing, labeling, sale, delivery, distribution or
transportation (other than as provided under Bus. & Prof. Code Section 26090(e), of
cannabis or cannabis product is expressly prohibited in the City of National City.
Section 9.60.040. Compliance with State and Local Laws.
It is the responsibility of the owners and operators of the commercial cannabis business,
or any other responsible person(s), to ensure that it is, always, operating in a manner
compliant with all applicable state and local laws, and any regulations promulgated
thereunder. Nothing in this Chapter shall be construed as authorizing any actions that
violate state law or local law with respect to the operation of a commercial cannabis
business. It shall be the responsibility of the owners and the operators of the commercial
cannabis business, or any other responsible person(s), to ensure that the commercial
cannabis business is, at all times, operating in a manner compliant with all applicable
state and local laws, including the MAUCRSA, and any subsequently enacted state or
local law or regulatory, licensing, or certification requirements, and any specific, additional
operating procedures or requirements which may be imposed as conditions of approval
of the commercial cannabis business permit.
Section 9.60.050. Definitions.
All definitions pertaining to cannabis regulation that appear in Business and Professions
Code Section 26001, as codified by Senate Bill 94, MAUCRSA, are hereby incorporated
by reference. Definitions appearing in this ordinance are either those that are not covered
by state law, pre -date Proposition 64 and the MAUCRSA, or are outside the scope of
Section 26001.
(a) "Adult Use" means the use of cannabis for recreational purposes by
persons twenty-one (21) years of age or older.
(b) "Canopy" shall have the same meaning as that appearing in Title 3,
Section 8000(f) of the California Code of Regulations.
(c) "Caregiver" or "primary caregiver" has the same meaning as that term is
defined in Section 11362.7 of the California Health and Safety Code.
(d) "Distributor" shall have the same meaning as that appearing in Section
26070 of the Business and Professions Code.
(e) "Commercial cannabis business" means any business or operation which
engages in medicinal or adult -use commercial cannabis activity.
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(f) "Commercial cannabis business permit" means a regulatory permit issued
by the City of National City pursuant to this Chapter, to a commercial cannabis
business and is required before any commercial cannabis activity may be
conducted in the City of National City. The initial permit and annual renewal
of a commercial cannabis business is made expressly contingent upon the
business' ongoing compliance with all of the requirements of this Chapter,
any regulations adopted by the City of National City governing the commercial
cannabis activity at issue, and any other state and local laws and regulations.
(g) "Consumption lounge" means an area that is part of the premises of a
state -licensed, locally permitted commercial cannabis retail business, and
that is designated for consumption of cannabis or cannabis products.
(h) "Dispensing" means any activity involving the retail sale of cannabis or
cannabis products from a retailer.
(i) "Electronic Smoking Device" means an electronic device that can be used
to deliver an inhaled dose of nicotine, or other substances, including any
component, part, or accessory of such a device, whether or not sold
separately. "Electronic Smoking Device" includes any such device, whether
manufactured, distributed, marketed, or sold as an electronic cigarette, an
electronic cigar, an electronic cigarillo, an electronic pipe, an electronic
hookah, or any other product name or descriptor. "Electronic Smoking
Device" also includes cartridges, cartomizers, e-liquid, smoke juice, tips,
atomizers, Electronic Smoking Device batteries, Electronic Smoking Device
charges, and any other item specifically designed for the preparation,
charging, or use of Electronic Smoking Devices.
(j) "Limited -access area" means an area in which cannabis is stored or
held and is only accessible to some licensee and authorized personnel.
(k) "Manufactured cannabis" means raw cannabis that has undergone a
process whereby the raw agricultural product has been transformed into a
concentrate, extraction or other manufactured product intended for internal
consumption through inhalation or oral ingestion or for topical application.
(I) "Manufacturing site" means a location that produces, prepares,
propagates, or compounds cannabis or cannabis products, directly or
indirectly, by extraction methods, independently by means of chemical
synthesis, or by a combination of extraction and chemical synthesis, and is
owned and operated by a person issued a valid commercial cannabis
business permit for manufacturing from the City of National City and, a valid
state license as required for manufacturing of cannabis products.
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(m) "Microbusiness" shall have the same meaning as that contained in
Section 26070(a)(3) of the Business and Professions Code.
(n) "Non-volatile solvent" means any solvent used in the extraction process
that is not a volatile solvent as defined by state law. For purposes of this
chapter, a nonvolatile solvent includes carbon dioxide (CO2) used for
extraction and ethanol used for extraction or post -extraction processing.
(o) "Package" means any container or receptacle used for holding
cannabis or cannabis products.
(p) "Patient" or "qualified patient" shall have the same definition as California
Health and Safety Code Section 11362.7 et seq., as it may be amended,
and which means a person who is entitled to the protections of California
Health & Safety Code Section 11362.22.
(q) "Person with an identification card" shall have the meaning given that
term by California Health and Safety Code Section 11362.7.
(r) "Processing" means a cultivation site that conducts only trimming, drying,
curing, grading, packaging, or labeling of cannabis and non -manufactured
cannabis products.
(s) "Retail Ancillary/Accessory Use" Shall be determined when less than
forty percent of a business's gross floor area is devoted to the use, display,
and/or sales of cannabis products and/or paraphernalia and no approved
Retail Ancillary/Accessory Use shall be permitted without a licensed and
operational primary use.
(t) "Responsible person(s)" shall include but not be limited to a property
owner, tenant, manager, permit holder, or any other person with a legal
interest in the affected real property and any person in possession of the
affected real property.
(u) "Retailer" shall have the same meaning as the definition appearing in
Section 26070(a)(1) of the Business and Professions Code.
(v) "State license" means a permit or license issued by the State of
California, or one of its departments or divisions, under MAUCRSA and any
subsequent State of California legislation regarding the same to engage in
commercial cannabis activity. A state license alone will not authorize the
holder to operate a cannabis business, as state law also requires a permit
or other authorization issued by a local jurisdiction.
(w) "THC" means Tetrahydrocannabinol, the primary active ingredient in
cannabis. It is a psychotropic intoxicant causing euphoria and capable of
altering human perception and motor skills.
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(x) "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.
(y) "Transport" means the transfer of cannabis products from the permitted
business location of one licensee to the permitted business location of
another licensee, for the purposes of conducting commercial cannabis
activity authorized by MAUCRSA which may be amended or repealed by
any subsequent State of California legislation regarding the same.
Transport can only be performed by licensed distributors and does not
include deliveries of cannabis or cannabis products.
(z) "Vape cartridge" means a small attachment to a cannabis e-cigarette
or vape pen that -is a pre -filled container of cannabis oil. Vape cartridges are
sold pre -filled with cannabis concentrates which contain cannabis' active
ingredients. The liquid in such products usually contains a propylene glycol
or vegetable glycerin -based liquid with flavoring and other chemicals and
metals. Many vape cartridges are high in THC, but some contain
cannabidiol (CBD, a non -psychoactive cannabinoid used as an analgesic),
or terpenes (the chemicals that give cannabis its flavorful tastes and
aromas).
(aa) "Vaping" means the action or practice of inhaling and exhaling the
vapor produced by an electronic cigarette or similar device.
(bb) "Volatile solvent" means a solvent as defined by Health and Safety
Code Section 11362.3(b)(3) as of the effective date of this article and as
subsequently amended.
(cc) "Youth center" means any public or private facility that is primarily used
to host recreation or social activities for minors, including, but not limited to,
private youth membership organizations or clubs, social service teenage
club facilities, video arcades where 10 or more video games or game
machines or devices are operated, and where minors are legally permitted
to conduct business, or similar amusement park facilities. It shall also
include a park, playground or recreational area specifically designed to be
used by children which has play equipment installed, including public
grounds designed for athletic activities such as baseball, softball, soccer, or
basketball or any similar facility located on a public or private school
grounds, or on city, county or state parks. This definition shall not include
any private martial arts, yoga, ballet, music, art studio or similar studio of
this nature nor shall it include any private gym, athletic training facility, pizza
parlor, dentist office, doctor's office primarily serving children or a location
which is primarily utilized as an administrative office or facility for youth
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programs or organizations.
Section 9.60.060. Authorization to Engage in Commercial Cannabis Business.
(a) No person may engage in any authorized commercial cannabis business or
in any commercial cannabis activity within the City of National City including
cultivation, manufacturing, processing, laboratory testing, transporting,
dispensing, distribution, or sale of cannabis or a cannabis product unless
the person has the following:
(1) a valid commercial cannabis business permit issued by the City of
National City;
(2) a valid business license issued by the City of National City;
(3) a mandatory building inspection and all required permits and approvals
which would otherwise be required for any business of the same size and
intensity operating in that zone. This includes but is not limited to obtaining
any required building permit(s), the National City Fire Department
approvals, Health Department approvals and other zoning and land use
permit(s) and approvals.
(4) a valid state license for the commercial cannabis activity corresponding
to the business permit issued by the City of National City;
(5) requisite approvals from the Planning Division of the National City
Community Development Department;
(6) a valid development agreement jointly negotiated with the City of
National City;
(7) a valid State of California Seller's Permit.
(b) Development agreement
(c) No permit shall be issued pursuant to this Chapter for outdoor commercial
cannabis cultivation, which is prohibited. It is a violation of this Chapter for
any person or entity to engage in any outdoor commercial cannabis
cultivation of any kind.
Section 9.60.070. Location and Design of Cannabis Businesses.
Cannabis businesses permitted by the City of National City to engage in Cultivation,
Distribution, Manufacturing, Microbusiness, Testing Labs, or Retail ancillary/Accessory
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use to the primary activity of the business, for cannabis and cannabis products are subject
to the following zoning and locational requirements:
(a) Cultivation, Distribution, Manufacturing, Microbusiness, Testing Labs, or
Retail ancillary/ accessory use must be located in the following zones: IL
(Light Industrial), IM (Medium Industrial), IH (Heavy Industrial) and must
meet all of the requirements for development in these zones (see Section
18.20.020, National City Municipal Code). The cannabis businesses must
also meet all of the following distance requirements:
(1) It shall be no closer than six hundred (600) feet from any zoned parcel in
the City of National City designated by state law as a sensitive use, and
pursuant to Section 9.60.070 (a) (3). The distance measured shall be the
horizontal distance measured in a straight line from the property line of
those parcels in Section 9.60.070 (a) (3) to the closest property line of the
lot on which the cannabis business is located.
(2) Cannabis businesses providing Retail ancillary/accessory use to the
primary activity of the business shall be no closer than two hundred fifty
(250) feet of any residential parcel in the City of National City as of the
date the cannabis business permit is issued. The distance between the
cannabis business and the residential parcel shall be measured from the
outer boundaries of the residential parcel to the first structure on the
property seeking the commercial cannabis permit.
(3)
It shall be no closer than six hundred (600) feet from any parcel containing
any of the following:
A. A school providing instruction in kindergarten or any grades 1
through 12, (whether public or private, or charter, including pre-school,
transitional kindergarten, and K-12);
B. A commercial daycare center licensed by the State, County or City
or that is in existence at the time the license is issued, unless the State
licensing authority or the City of National City specifies a different radius.
C. A youth center that is in existence at the time the license is issued,
unless the State licensing authority or the City of National City specifies
a different radius.
(b) Consumption lounges must be located in the following: CT (Tourist
Commercial) West of Interstate 5 and must meet all of the requirements for
development in these zones (see Section 18.20.020, National City
Municipal Code). They must also comply with the buffer zone requirements
contained in 9.60.070(a).
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(c) Each proposed cannabis business project'shall:
Section 9.
Cannabis
(a)
(b)
(c)
(1) Conform with the City of National City's general plan, any applicable
specific plans, master plans, and design requirements.
(2) Comply with all applicable zoning and related development
standards.
(3)
Be constructed in a manner that minimizes odors to surrounding uses,
and promotes quality design and construction, and consistency with
the surrounding properties.
(4) Be adequate in size and shape to accommodate the yards, walls,
fences, parking and loading facilities, landscaping and all items
required for the development.
(5)
Be served by highways adequate in width and improved as necessary
to carry the kind and quantity of traffic such use will generate.
(6) Be provided with adequate electricity, sewerage, disposal, water, fire
protection and storm drainage facilities for the intended purpose.
60.080. Maximum Number and Type of Authorized Commercial
Businesses Permitted.
The number of each type of commercial cannabis business that shall be
permitted to operate in the City of National City shall be established by
resolution by the City Council.
Section 9.60.080 is only intended to create a process in determining the
maximum number of commercial cannabis businesses that may be issued
permits to operate in the City of National City under each category. Nothing
in this Chapter creates a mandate that the City Council must issue any or all
of the commercial cannabis business permits if it is determined that the
applicants do not meet the standards which are established in the application
requirements, or by further amendments to the application process, or if the
City Council upon further deliberation determines that the issuance of any or
all commercial cannabis business permits will negatively impact the public
safety, welfare or other public policy concerns.
Each year following the City Council's initial award of permits, if any, or at
any time in the City Council's discretion, the City Council may reassess the
number of commercial cannabis business permits which are authorized for
issuance. The City Council at its discretion, may determine that the number
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of commercial cannabis permits should stay the same, be expanded, or
reduced.
Section 9.60.090. Fees and Charges.
(a) No person may commence or continue any commercial cannabis activity in
the City of National City, without timely paying 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 activity
shall be established by resolution of the City Council which may be
amended from time to time.
(b) All commercial cannabis businesses 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 the City
of National 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.
Section 9.60.100. Development Agreement.
Prior to operating in the City of National City and as a condition of issuance of a regulatory
permit, the operator of each cannabis facility shall enter into a Development Agreement
with the City of National City setting forth the terms and conditions under which the
cannabis facility will operate that are in addition to the requirements of this Chapter,
including, but not limited to community benefits such as public outreach and education,
community service, payment of fees and other charges as mutually agreed, and such
other terms and conditions that will protect and promote the public health, safety and
welfare.
Section 9.60.110. Evidence of Cannabis Owner(s), and Representative(s)
Background Check Required.
(a) Pursuant to California Penal Code Sections 11105(b)(11) and
13300(b)(11), which authorize city authorities to access state and local
criminal history information for employment, licensing, or certification
purposes, and authorize access to federal level criminal history information
by transmitting fingerprint images and related information to the Department
of Justice to be transmitted to the Federal Bureau of Investigation, every
applicant for a Certificate of Approval (including owners, managers,
supervisors and any individual who will be participating in the direction,
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control, or management of the cannabis business_must submit fingerprints
and other information deemed necessary by the City Manager or their
designee -for a background check by the National City Police Department -or
a third party. A fee for the cost of the background investigation, which shall
be the actual cost to the City of National City to conduct the background
investigation as it deems necessary and appropriate, including City of
National City staff time and costs, shall be paid at the time the person
submits for the background check.
(b) The criminal background check must at a minimum identify the following:
1) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or
management has ever been convicted of a violent felony as
defined by California Penal Code 667.5, or equivalent
offenses in other states;
2) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or
management has ever been convicted of a crime involving
dishonesty, fraud or deceit, including but not limited to fraud,
forgery, theft, or embezzlement as those offenses are defined
in California Penal Code Sections 186.11, 470, 484, and
504a, respectively; or equivalent offenses in other states; or
3) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or
management has ever been convicted of the illegal use,
possession, transportation, distribution or similar activities
related to controlled substances, as defined in the Federal
Controlled Substances Act, not including cannabis -related
offenses for which the conviction occurred after the passage
of the Compassionate Use Act of 1996.
(c) Evidence of a conviction of any the offenses enumerated in Section
9.60.110(b) may be grounds for denial of employment.
(d) Violation of this section may be grounds for immediate suspension of the
business' operating permit. The business operator shall have the right to
an appeal pursuant to section 9.60.380.
Section 9.60.120. Persons Prohibited from Holding a Commercial Cannabis
License.
(a) Any person, including but not limited to any individual, firm, partnership, joint
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venture, association, corporation, limited liability company, estate, trust,
business trust, receiver, syndicate, or any other group or combination acting
as a unit ("applicant"), in which any of the following actions or notices have
been issued for non-compliance or if they have been engaging or have
engaged in the following activity, shall be prohibited from holding a cannabis
commercial license or a cannabis business permit in the City of National City:
(1) The applicant has had a license suspended or revoked by
any City, county, City and county or any other state cannabis
licensing authority;
(2) Evidence that the applicant is delinquent in payment of
federal, state or local commercial taxes and/or fees;
(3)
Applicant was conducting (or has conducted) commercial
cannabis activity in the City of National City in violation of local
and/or state law, not including commercial cannabis -related
offenses for which the conviction occurred after the City
banned cannabis in 2012.
(4) If any person enters into either a verbal or written agreement
to lease, sublease, or any other agreement for any terms of
use of the premises granted by a property owner,
commercial broker or any third party, that is in violation of
Section 9.60.060 and Section 9.60.150. Any such lease,
sublease or agreement shall not contain terms or conditions
requiring the cannabis permit licensee to pay the property
owner, commercial broker, or any third party a percentage of
gross receipts, royalties, equity, or other unreasonable
compensation as determined by the City of National City. In
addition, all leases, subleases, or other agreements must be
based on a monthly rate.
Section 9.60.130. Persons Prohibited from Employment by a Commercial Cannabis
Business.
(a) Any person, including but not limited to any individual, firm, partnership, joint
venture, association, corporation, limited liability company, estate, trust,
business trust, receiver, syndicate, or any other group or combination acting
as a unit, in which any of the following actions or notices have been issued for
non-compliance or if they have been engaging or have engaged in the
following activity, shall be prohibited from employment with a cannabis
business permittee in the City of National City:
(1) The person has had a license suspended or revoked by any City,
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County, or City and County, or any other state cannabis licensing
authority;
(2) Evidence that the person is delinquent in payment of federal, state
or local commercial taxes and/or fees.
(3)
The person was conducting commercial cannabis activity in the City
of National City in violation of local and/or state, not including
commercial cannabis -related offenses for which the conviction
occurred after the city banned cannabis in 2012.
Section 9.60.140. Certification from the Community Development Department.
Prior to submitting any applications for a commercial cannabis business, applicant must
first obtain a certification from the City of National City Community Development
Department or its designee(s) certifying that the business is located on a site that meets
all of the requirements of Sections 9.60.070 and 9.60.230 of this Chapter.
Section 9.60.150. Right to Occupy and to Use Property.
Prior to submitting any applications for a commercial cannabis business, applicant must
obtain approval from the owner of the real property where the proposed commercial
cannabis business will be located (if approved). Applicants are not required to have a
signed lease, but a letter from the property owner indicating that:
(a) The property owner is aware of and approves of the use being proposed.
(b) The property owner will lease the property to the cannabis related use upon
approval of the application.
(c) The property owner understands that licenses for cannabis related uses are for
one year and can be revoked at the City of National City's sole discretion with
or without reason.
Property owners are permitted to issue letters detailing such contingent lease agreements
for a maximum of two (2) independent applicants.
In the event the proposed location will be leased from the property owner, the applicant
shall be required to provide a signed and notarized statement from the owner of the
property, acknowledging that the property owner has read this Chapter and consents to
the operation of the commercial cannabis business on the owner's property.
Section 9.60.160. Application Procedure for a Cannabis Business Permit.
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(a) The City of National City will establish by administrative policies and
procedures promulgated by the City Manager or theft designee the
procedures to prepare the necessary forms, adopt any necessary rules
related to the application process, solicit applications, and conduct initial
evaluations of the applicants.
(b) At the time of filing, each applicant shall pay an application fee established
by resolution of the City Council, to cover all costs incurred by the City of
National City in the application process.
(c) The application procedure process shall include a component on
community benefits. Any community benefits that a commercial cannabis
business agrees to provide shall be incorporated into the terms and
conditions under which the commercial cannabis business will operate with
the City of National City's approval, if and when a Development Agreement
is issued. Such terms and conditions shall be in addition to the
requirements of this Chapter. The City of National City may establish the
procedures for determining community benefits by Resolution and/or by the
implementation of administrative policies and procedures promulgated by
the City Manager or their designee.
(d) The City of National City's Reservation of Rights.
The City of National City reserves the right to reject any or all applications.
Prior to permit issuance, the City of National City may also modify,
postpone, or cancel any request for applications, or the entire program
under this Chapter, at any time without liability, obligation, or commitment
to any party, firm, or organization, to the extent permitted under California
state law. Persons submitting applications assume the risk that all or any
part of the program, or any particular category of permit potentially
authorized under this Chapter, may be cancelled at any time prior to permit
issuance. The City of National City further reserves the right to request and
obtain additional information from any candidate submitting an application.
(e) Grounds for Rejection of Application.
In addition to a failure to comply with other requirements in this Chapter, an
application risks being rejected for any of the following reasons:
(1) The application was received after the designated time and
date of the deadline.
(2) The application did not contain the required elements,
exhibits, or was not organized in the required format.
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(3) The application was considered not fully responsive to the
request for a permit application, i.e. was substantially
incomplete.
Section 9.60.180. Operations Plan and Standards.
A Certificate of Approval issued by the Planning Division of the National City Community
Development Department for a facility must include, as conditions of approval, the
operating standards set forth below. In addition, the Certificate of Approval must
incorporate by reference an Operations Plan approved by the City Manager or their
designee, that implements not only the operating standards set forth in this Chapter, but
such additional conditions that the City Manager or their designee finds reasonably
necessary to implement this Chapter when considering the location, size and other
characteristics of the proposed facility.
Section 9.60.190. Limitations on City's Liability.
To the fullest extent permitted by law, the City of National City shall not assume any
liability whatsoever with respect to having issued a commercial cannabis business permit
pursuant to this Chapter or otherwise approving the operation of any commercial
cannabis business. As a condition to the approval of any commercial cannabis business
permit, the applicant shall be required to meet all of the following conditions before they
can receive the commercial cannabis business permit:
(a) Execute an agreement, in a form approved by the City Attorney or their
designee, agreeing to indemnify, defend (at applicant's sole cost and
expense), and hold the City of National City, and its officers, officials,
employees, representatives, and agents, harmless, from any and all claims,
losses, damages, injuries, liabilities or losses which arise out of, or which
are in any way related to, the City of National City's issuance of the
commercial cannabis business permit, the City of National City's decision
to approve the operation of the commercial cannabis business or activity,
the process used by the City of National City in making its decision, or the
alleged violation of any federal, state or local laws by the commercial
cannabis business or any of its officers, employees or agents.
(b) Maintain insurance at coverage limits, and with conditions thereon
determined necessary and appropriate from time to time by the City
Manager, City Attorney, and the City's Risk Manager or their designee.
(c) Reimburse the City of National City for all costs and expenses, including
but not limited to legal fees and costs and court costs, which the City of
National City may be required to pay as a result of any legal challenge
related to the City of National City's approval of the applicant's commercial
cannabis business permit, or related to the City of National City's approval
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NCMC Chapter 9.60 May 4, 2021
of a commercial cannabis activity. The City of National City may, at its sole
discretion, participate at its own expense in the defense of any such action,
but such participation shall not relieve any of the obligations imposed
hereunder.
Section 9.60.200. Restriction on Alcohol & Tobacco Sales.
(a) No person shall cause or permit the sale, dispensing, or consumption of
alcoholic beverages on or about the premises of the commercial cannabis
business.
(b) No person shall cause or permit the sale of tobacco products on or about
the premises of the commercial cannabis business.
Section 9.60.225. Restriction on Consumption of Cannabis or other Substances.
No person shall consume cannabis, cannabis products, tobacco or alcohol on the
premises of any commercial cannabis business. The sole exception shall be authorized
cannabis consumption lounges of which tobacco and alcohol shall also be prohibited.
Section 9.60
Businesses.
(a)
(b)
.230. General Operating Requirements for all Commercial Cannabis
Commercial cannabis businesses may operate only during the hours
specified in the commercial cannabis business permit issued by the City.
No person under the age of twenty-one (21) shall operate, maintain, be
employed at, or be issued a permit for, a commercial cannabis business of
any kind.
No cannabis or cannabis products or graphics depicting cannabis or
cannabis products shall be visible from the exterior of any property issued
a commercial cannabis business permit, or on any of the vehicles owned or
used as part of the commercial cannabis business. No outdoor storage of
cannabis or cannabis products is permitted at any time.
(c) Reporting and Tracking of Product and of Gross Sales with an accounting
software system capable of providing point of sale data as well as audit
trails or both product and cash, where applicable. 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 of National
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NCMC Chapter 9.60 May 4, 2021
City. The commercial cannabis business shall ensure that such information
is compatible with the City of National 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 City Manager or their designee prior to
being used by the permittee.
(d) All cannabis and cannabis products sold, distributed or manufactured shall
be cultivated, manufactured, and transported by licensed facilities that
maintain operations in full conformance with the State and local regulations.
(e) Emergency Contact. Each commercial cannabis business shall provide the
City Manager or their designee with the name, telephone number (both land
line and mobile, if available) of an on -site employee or owner to whom
emergency notice can be provided at any hour of the day.
(f) Signage and Notices.
(1) In addition to the requirements otherwise set forth in this section,
business identification signage for a commercial cannabis business
shall conform to the requirements of the City of National City
ordinance, Chapter 18.47, including, but not limited to, seeking the
issuance of a City of National City sign permit.
(2) No signs placed on the premises of a commercial cannabis business
shall obstruct any entrance or exit to the building or any window.
(3) Each entrance to a commercial cannabis business 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. This provision shall not apply to consumption lounges
(see Section 9.60.265).
(4) Business identification signage shall be limited to that needed for
identification only and shall not contain any logos or information that
identifies, advertises, or lists the services or the products offered. No
commercial cannabis business shall advertise by having a person
holding a sign and advertising the business to passersby, whether
such person is on the premises of the commercial cannabis business
or elsewhere including, but not limited to, the public right-of-way.
(5)
Signage shall not depict any image of cannabis or cannabis
products. No banners, flags, billboards or other prohibited signs may
be used at any time.
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NCMC Chapter 9.60 May 4, 2021
(6) In accordance with state law and regulations or as stipulated in the
City of National City regulatory permit, holders of a commercial
cannabis business permit shall agree that, as an express and
ongoing condition of permit issuance and subsequent renewal, the
holder of the permit shall be prohibited from advertising any
commercial cannabis business located in the City of National City
utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or
other similar forms of advertising. This paragraph is not intended to
place limitations on the ability of a commercial cannabis business to
advertise in other legally authorized forms, including on the Internet,
in magazines, or in other similar ways.
(g) Minors.
(1) Persons under the age of twenty-one (21) years shall not be allowed
on the premises of a commercial cannabis business and shall not be
allowed to serve as a driver for a mobile delivery service. It shall be
unlawful and a violation of this Chapter for any person to employ any
person at a commercial cannabis business who is not at least twenty-
one (21) years of age.
(2) Notwithstanding Section 9.60.230(g)(1), persons aged eighteen (18)
to twenty (20) years shall be allowed on the premises of a
commercial cannabis business if they can produce a physician's
recommendation. In that event, such persons can lawfully purchase
cannabis for the sole purpose of addressing the medical need that is
the subject of the physician's recommendation. This provision shall
not apply to consumption lounges. Only persons twenty-one (21) and
older shall be granted admittance to consumption lounges. Access
to persons under twenty-one (21) is prohibited.
(3)
The entrance to the commercial cannabis business shall be clearly
and legibly posted with a notice that no person under the age of
twenty-one (21) years of age is permitted to enter upon the premises
of the commercial cannabis business.
(h) Odor Control. Odor control devices and techniques shall be incorporated in
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 facility, 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
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NCMC Chapter 9.60 May 4, 2021
(i)
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 City
Manager or their designee determine 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.
Display of Permit and City Business License. The original copy of the
commercial cannabis business permit and the business license issued by
the City of National City pursuant to this Chapter shall be posted inside the
commercial cannabis business in a location readily visible to the public.
(j) Background Check. Pursuant to California Penal Code Sections
11105(b)(11) and 13300(b)(11), which authorizes City of National City
authorities to access state and local summary criminal history information
for employment, licensing, or certification purposes; and authorizes access
to federal level criminal history information by transmitting fingerprint
images and related information to the Department of Justice to be
transmitted to the Federal Bureau of Investigation, every person listed as
an owner, manager, supervisor, and any individual who will be
participating in the direction, control, or management in a commercial
cannabis business must submit fingerprints and other information deemed
necessary by the City Manager or their designee for a background check
by the City of National City Police Department. Pursuant to California
Penal Sections 11105(b)(11) and 13300(b)(11), which requires that there
be a requirement or exclusion from employment, licensing or certification
based on specific criminal conduct on the part of the subject of the record.
No person shall be issued a permit to operate a commercial cannabis
business unless they have first cleared the background check, as
determined by the City Manager or their designee, as required by this
section. A fee for the cost of the background investigation, which shall
be the actual cost to the City of National City to conduct the background
investigation as it deems necessary and appropriate, shall be paid at the
time the application for a commercial cannabis business permit is
submitted. Evidence of a conviction of any of the offenses enumerated in
Business and Professions Code Section 26057(b)(4), absent a Certificate
of Rehabilitation, shall be grounds for immediate disqualification of the
applicant.
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NCMC Chapter 9.60 May 4, 2021
(k) Loitering. The owner and/or operator of a commercial cannabis business
shall prohibit loitering by persons outside the facility both on the premises
and within fifty (50) feet of the premises. The cannabis business shall notify
the National City Police Department if anyone continues to loiter around the
building or premises after all reasonable action has been taken to remove
the individual(s) and the action has failed to do so in a timely manner.
(I) Employee Training and Customer Education. Each commercial cannabis -
operator shall establish minimum training standards for all employees,
including but not limited to the variety of products offered for sale, their
potency, absorption time if known, and effects of the products. Employees
shall educate all customers on these items in an effort to ensure responsible
consumption. The retailer shall provide with each purchase educational
brochures containing this information. The City Manager, or their designee
shall have the discretion to require other training for the business operations
as they find necessary under any circumstances.
(m)
Security Requirements. A permitted commercial cannabis business 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 commercial cannabis business. Except as may otherwise
be determined by the City Manager, or their designee, thesesecurity
measures shall include, but may not be limited to, all of the following:
(1) Alarm system (perimeter, fire, and panic buttons).
(2) Remote monitoring of alarm systems by a security
company licensed by the State of California Bureau of
Security and Investigative Services.
(3) Perimeter lighting systems (including motion sensors) for
after-hours security.
(4) Perimeter security and lightning as approved by the City
Manager or their designee.
(5) Preventing individuals from remaining on the premises of
the commercial cannabis business if they are not engaged in
an activity directly related to the permitted operations of the
commercial cannabis business.
(6) Establishing limited access areas accessible only to
authorized commercial cannabis business personnel.
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NCMC Chapter 9.60 May 4, 2021
(7) Except for live growing plants which are being cultivated
at a cultivation operation, all cannabis and cannabis products
shall be stored in a secured and locked vault or vault
equivalent. All safes and vaults shall be compliant with
Underwriter Laboratories burglary -resistant and fire-resistant
standards. All cannabis and cannabis products, including live
plants that are being cultivated, shall be kept in a manner as
to prevent diversion, theft, and loss.
(8) Installing 24-hour security surveillance cameras of at least
HD -quality to monitor all entrances and exits to and from the
premises, all interior spaces within the commercial cannabis
business 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 and all interior
spaces where diversion of cannabis could reasonably occur.
All cameras shall record in color. All exterior cameras shall
be in weather-proof enclosures, shall be located so as to
minimize the possibility of vandalism, and shall have the
capability to automatically switch to black and white in low light
conditions. Video recordings shall be maintained for a
minimum of ninety (90) days and shall be made available to
the City Manager or their designee upon request. Video shall
be of sufficient quality for effective prosecution of any crime
found to have occurred on the site of the commercial cannabis
business and shall be capable of enlargement via projection
or other means.
(9) Sensors shall be installed to detect entry and exit from all
secure areas and shall be monitored in real time by a security
company licensed by the State of California Bureau of
Security and Investigative Services.
(10) Panic buttons shall be installed in all commercial
cannabis businesses with direct notification to the National
City Police Department dispatch and shall be configured to
immediately alert dispatch for the National City Police
Department.
(11) Any bars installed on the windows or the doors of the
commercial cannabis business shall be installed only on the
interior of the building in compliance with all federal, state and
local laws.
(12) Security personnel shall be on -site 24 hours a day or
alternative security as authorized by the City Manager or
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NCMC Chapter 9.60 May 4, 2021
their designee and must have a verified response security
patrol when closed. 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 City Manager, or their designee, with such
approval not to be unreasonably withheld. Firearms may be
carried by security personnel while they are on duty, if
permitted by the San Diego County Sheriff's Department and
authorized by the Chief of Police.
(13) 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.
(14) Entrance areas are to be locked at all times and under
the control of a designated responsible party that is either; (a)
an employee of the commercial cannabis business; or (b) a
licensed security professional.
(15) Each commercial cannabis business shall demonstrate
to the City Manager or their designee, compliance with the
state's track and trace system for cannabis and cannabis
products, as soon as it is operational.
(16) Each commercial cannabis business shall have a
professionally installed video surveillance system, access
control and intrusion alarm systems designed to protect the
inventory, facility, and employees. Each business shall have
network security protocols that are certified by Underwriters
Laboratories.
(17) Exterior vegetation shall be planted, altered and
maintained in a fashion that precludes its use as a hiding
place for persons on the premises.
(18) Emergency access and emergency evacuation plans
that are in compliance with state and local fire safety
standards.
(19) Each commercial cannabis business shall identify a
designated security representative/liaison to the City of
National City, who shall be reasonably available to meet with
the City Manager or their designee regarding any security
related measures or and operational issues. The designated
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NCMC Chapter 9.60 May 4, 2021
security representative/liaison shall, on behalf of the
commercial cannabis business, annually maintain a copy of
the current security plan on the premises of the business, to
present to the City Manager or their designee upon request
that meets the requirements of Section 9.60.230(m).
(20) As part of the application and permitting 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, any hazardous materials that
may be used by the business, and any currency.
(21) The commercial cannabis business shall cooperate
with the City of National City whenever the City Manager or
their designee makes a request, with or without prior notice,
to inspect or audit the effectiveness of any security plan or of
any other requirement of this Chapter.
(22) A commercial cannabis business shall notify the City
Manager or their designee within twenty-four (24) hours of
discovering any of the following:
(a) Significant discrepancies identified during
inventory. The level of significance shall be
determined by the regulations promulgated by
the City Manager or their designee.
(b) Diversion, theft, loss, or any criminal activity
involving the commercial cannabis business or
any agent or employee of the commercial
cannabis business.
(c) The loss or unauthorized alteration of records
related to cannabis, customers or employees or
agents of the commercial cannabis business.
(d) Any other breach of security.
(23) Compliance with the foregoing requirements shall be
verified by the City Manager or their designee prior to
commencing business operations. The City Manager or their
designee may supplement these security requirements once
operations begin, subject to review by the City Manager or
their designee if requested by the business owner.
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NCMC Chapter 9.60 May 4, 2021
(24) Retailers and microbusinesses authorized to conduct
retail activities shall only serve customers who are within the
licensed premises, or at a delivery address that meets the
requirements of this division.
(1) The sale and delivery of cannabis goods shall
not occur through a pass -through window or a
slide -out tray to the exterior of the premises.
(2) Retailers or microbusinesses shall not operate
as or with a drive-in or drive -through at which
cannabis goods are sold to persons within or
about a motor vehicle.
(3) No cannabis goods shall be sold and/or
delivered by any means or method to any
person within a motor vehicle.
(4) All cannabis goods sold by a retail business
shall be contained in child -resistant packaging.
(5) Retailers shall record point -of -sale areas and
areas where cannabis goods are displayed for
sale on the video surveillance system. At each
point -of -sale location, camera placement must
allow for the recording of the facial features of
any person purchasing or selling cannabis
goods, or any person in the retail area, with
sufficient clarity to determine identity. A retail
licensee or microbusiness licensee who is
engaged in retail sale shall hire or contract for
security personnel who are at least twenty-one
(21) years of age to provide security services for
the licensed retail premises. All security
personnel hired or contracted for by the licensee
shall be licensed by the Bureau of Security and
Investigative Services and shall comply with
Chapters 11.4 and 11.5 of Division 3 of the
Business and Professions Code.
(n) Records and Recordkeeping.
(1) Each owner and operator of a commercial cannabis business shall
maintain accurate books and records in an electronic format, detailing
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NCMC Chapter 9.60 May 4, 2021
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 commercial cannabis business permit issued pursuant
to this Chapter), or at any time upon reasonable request of the City of
National City, each commercial cannabis business shall file a sworn
statement detailing the number of sales by the commercial cannabis
business during the previous twelve (12) month period (or shorter period
based upon the timing of the request), provided on a per -month basis.
The statement shall also include gross sales for each month, and all
applicable taxes and fees paid or due to be paid. On an annual basis,
each owner and operator shall submit to the City a financial audit of the
business's operations conducted by an independent certified public
accountant. Each permittee shall be subject to a regulatory compliance
review and financial audit as determined by the City Manager or their
designee(s).
(2) Each owner and operator of a commercial cannabis business 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 the commercial cannabis business, and
separately of all the 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 or their designee(s) upon a reasonable
request.
(3) If an applicant operated a cannabis collective, cooperative, or other
business prior to the enactment of MAUCRSA, then once a state license
is obtained, the commercial cannabis business must maintain such
records only to the extent permitted or required by MAUCRSA.
(4) All commercial cannabis businesses 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 and production or manufacturing, laboratory
testing and distribution processes until purchase as set forth
MAUCRSA.
(5) Each commercial cannabis business shall allow the City of National City
officials to have access to the business's books, records, accounts,
together with any other data or documents relevant to its permitted
commercial cannabis activities, for the purpose of conducting an audit
or examination at any time during the business's business hours. If not
otherwise available, books, records, accounts, and any and all relevant
data or documents will be produced no later than twenty-four (24) hours
after receipt of the City's request, unless otherwise stipulated by the City.
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NCMC Chapter 9.60 May 4, 2021
The City may require the materials to be submitted in an electronic
format that is compatible with the City's software and hardware.
Section 9.60.240. Amendments to General Operating Requirements.
The City Manager or their designee may develop other commercial cannabis business
operational requirements or regulations as are determined to be necessary to protect the
public health, safety and welfare.
Section 9.60.250. Additional Operating Requirements for Store Front Retail
Facilities.
(a) Retailers shall verify the age and all necessary documentation of each individual to
ensure the customer is not under the age of eighteen (18) years. If the potential
customer is eighteen (18) to twenty (20) years old, retailer shall confirm the
customer's possession of a valid doctor's recommendation and/or Health and Safety
Code Section 11362.71 identification card (Medical Cannabis Card). For adult use
or recreational purchases, retailers shall verify that all customers are twenty-one (21)
years of age or older for the purchase of cannabis or cannabis products.
(1) Access to the premises of a retail licensee/permittee shall be limited to
individuals who are at least twenty-one (21) years of age.
(2) Notwithstanding Section 9.60.250 (a)(1), individuals who are at least
eighteen (18) years of age and in possession of a valid physician's
recommendation shall be granted access to the premises of a retail
licensee/permittee for the sole purpose of purchasing medicinal
cannabis consistent with the physician's recommendation.
(3)
All individuals seeking access to the commercial cannabis retail
business must show their government -issued identification, and, if
appropriate, doctor's recommendation of Medical Cannabis card, in
order to gain access into the retailer. These documents must also be
shown at the point of sale station at the time of purchase. Doctor
recommendations are not to be obtained or provided at the retail
location.
(b) Entrances into the retailer shall be locked at all times with entry strictly
controlled. A "buzz -in" electronic/mechanical entry system shall be utilized to
limit access to and entry to the retailer to separate it from the reception/lobby
area.
(c) Retailers may have only that quantity of cannabis and cannabis products to
meet the daily demand readily available for sale on -site in the retail sales area
Commercial Cannabis Activity 25 Ordinance No. 2021 — 2487
NCMC Chapter 9.60 May 4, 2021
of the retailer. Additional product may be stored in a secured, locked area to
which customers, vendors, and visitors shall not have access.
(d) All restroom facilities shall remain locked and under the control of management.
(e) Limited Access Areas. A retailer shall establish limited -access areas and
permit only authorized individuals to enter the limited -access areas. Authorized
individuals include individuals employed by the retailer as well as any outside
vendors, contractors, or other individuals conducting business that requires
access to the limited access area. All individuals granted access to the limited
access area shall be at least twenty-one (21) years of age, and if not employed
by the retailer, shall be escorted at all times by an employee of the
licensee/permiteee. A retailer shall maintain a log of all individuals who are not
employees who are granted access to the limited access area. These logs
shall be made available to the City Manager or their designee upon request.
Microbusiness — Commercial Activity. All cultivation, manufacturing,
distribution, and retail activities performed by a licensee under a Type 12-
Microbusiness permit shall occur on the same licensed premises. Areas of the
premises for manufacturing and cultivation shall be separated from the
distribution and retail areas by a wall and all doors between the areas shall
remain closed when not in use.
(g) Operating hours of the Store Front Retailer License shall be limited to the hours
of 9:00 a.m. through 9:00 p.m., seven days a week.
(f)
(h) Store Front/Retail Security Requirements. All provisions incorporated within
Section 9.60.230(m) of this Chapter (Security Requirements), are directly
applicable to and binding on all commercial cannabis businesses, including all
Store Front/Retail businesses. Uniformed licensed security personnel shall be
employed to monitor site activity, control loitering and site access, and to serve
as a visual deterrent to unlawful activities. Security personnel may be allowed
to carry firearms if permitted by San Diego County Sheriff's Department and
authorized by the Chief of Police.
Section 9.60.260. Additional Operating Requirements for Non -Store Front Retail
Facilities.
All Store Front Retailers, Non -Store Front Retailers (delivery) and Microbusinesses which
conduct deliveries into or within the City of National City shall be required to obtain a
delivery permit from the City of National City in order to conduct retail sales regardless if
they are located in the City or another local jurisdiction.
(a) Operating hours of the Non -Store Front Retailer License shall be limited to
the hours of 9:00 a.m. through 9:00 p.m., seven days a week.
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NCMC Chapter 9.60 May 4, 2021
(b) The commercial Non -Store Front Retailer shall only sell cannabis or
cannabis products to a natural person twenty-one (21) years of age or older,
or a natural person eighteen (18) years of age or older who possesses a
physician's recommendation for cannabis medical use only. The age and/or
any necessary documentation including a valid doctor's recommendation of
each medical customer shall be verified. Doctor recommendations are not
to be obtained or provided at the retail location.
(c) The commercial cannabis Non -Store Front Retailer may only have on -site
that quantity of cannabis and cannabis products reasonably anticipated to
meet the weekly demand for which they may need to be readily available
for sale.
Section 9.60.265. Operating Requirements for Consumption Lounges.
(a) Any consumption lounge operating within the City of National City must be
contained within the premises of a state -licensed retail business or
microbusiness, must be locally permitted pursuant to Section 9.60.140,
must meet the other requirements of this Chapter, and must be compliant
with the following additional requirements:
(1) Access to the area where cannabis consumption is allowed is
restricted to persons twenty-one (21) years of age or older.
(2) Cannabis consumption is not visible from any public place or non -age -
restricted area.
(3) Sale or consumption of alcohol or tobacco is not allowed on the
premises.
(4) Patrons cannot bring cannabis, tobacco or alcohol or other substances
into the consumption lounge — they can only consume whatever
cannabis they purchase on site.
(b) An applicant must obtain a secondary on -site consumption permit in order
for cannabis to be consumed on the premises of an adult -use retail business
and shall comply with the following
(1) Cannabis consumption areas shall be well ventilated private areas of the
retail establishment and are designed to prevent the flow of smoke to
any other area of the establishment.
(c) A commercial cannabis retail business with a retail lounge on its premises
shall adopt procedures ensuring that its customers may only gain access to
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NCMC Chapter 9.60 May 4, 2021
the lounge once they have purchased a product or products from the retail
business.
(d) The on -site sale of food is permitted. A Permittee shall comply with laws
governing Cannabis Businesses and retail food establishments, including
but not limited to the California Retail Food Code.
(e) The owner/operator of the consumption lounge shall be responsible for
maintaining dedicated and sufficient staff during operating hours to verify
the identity and age of all patrons seeking admittance to the lounge.
Persons under twenty-one (21) shall be denied entry without exception.
(f) The owner/operator of the consumption lounge shall be responsible for
ensuring that a state -licensed security guard is on duty during operating
hours.
(g) The City Manager or his/or designee shall establish conditions for approval
for each onsite consumption permit including but not limited to a parking
plan, ventilation plan, anti -drugged driving plan, design plan, and set hours
of operation. Set hours of operation may only be adjusted by submitting a
written request to and obtaining approval from city.
(h) Cannabis consumption areas shall only provide cannabis to an individual
in an amount consistent with personal possession and use limits allowed
by the state.
Section 9.60.270. In -City Delivery Vehicle Requirements.
Prior to commencing delivery operations, any locally permitted cannabis retail operation
shall provide the following information to the City of National City:
(a) Proof of ownership of the vehicle or a valid lease for all vehicles that will be
used to deliver cannabis or cannabis products.
(b) The year, make, model, color, license plate number, and numerical Vehicle
Identification Number (VIN) for all vehicles that will be used to deliver
cannabis goods.
(c) Proof of insurance as required in Section 9.60.210(b) for any and all
vehicles being used to deliver cannabis goods.
(d) The licensee shall provide the City with any changes to the information
required by this section in writing within thirty (30) calendar days.
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NCMC Chapter 9.60 May 4, 2021
Section 9.60.275. Out -of -City Delivery Vehicle Requirements.
Prior to commencing operations, a cannabis out of City of National City delivery service
shall comply with the following requirements:
(a) Obtain from the City a permit authorizing the delivery of cannabis and
cannabis products within the City limits. A copy of this permit shall be
retained by all drivers.
(b) The retail business operating the delivery service shall provide the City
Manager or their designee, with evidence of a valid state license for a
commercial cannabis business on whose authorization the delivery service
is performing the delivery function.
(c) The retail business operating the delivery service shall furnish to the City
Manager or their designee, the year, make, model, color, license plate
number, and numerical Vehicle Identification Number (VIN) for any and all
vehicles that will be used to deliver cannabis goods.
Section 9.60.280. Additional Operating Requirements for a Cultivation Facility
Operation.
(a) Outdoor Commercial Cultivation is prohibited.
(b) In no case, shall cannabis plants be visible from a public or private road,
sidewalk, park or any common public viewing area.
(c) Cannabis. cultivation shall be conducted in accordance with state and local
laws related to land conversion, grading, electricity, water usage, water
quality, woodland and riparian habitat protection, agricultural discharges,
and similar matters.
(d) Pesticides and fertilizers shall be properly labeled and stored to avoid
contamination through erosion, leakage or inadvertent damage from pests,
rodents or other wildlife.
(e) The cultivation of cannabis 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, visitors to the area,
neighboring properties, and the end users of the cannabis being cultivated,
to protect the environment from harm to streams, fish, and wildlife; to ensure
the security of the cannabis being cultivated; and to safeguard against the
diversion of cannabis.
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NCMC Chapter 9.60 May 4, 2021
(f)
All applicants for a cannabis cultivation permit shall submit to the following
in addition to the information generally otherwise required for a commercial
cannabis business:
(1) A cultivation and operations plan that meets or exceeds minimum
legal standards for water usage, conservation and use; drainage,
runoff, and erosion control; 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.
(4) Plan for addressing odor and other public nuisances that may derive
from the cultivation site.
Section 9.60.290. Additional Operating Requirements for Distributors.
(a) A distributor shall not store non -cannabis goods or non -cannabis
accessories that are to be sold to another party on any licensed premises.
Additionally, a distributor shall not distribute non -cannabis goods or non -
cannabis accessories at a licensed premise. For the purposes of this
section, non -cannabis goods are any goods that do not meet the definition
of cannabis goods as defined in Title 16, Section 5000(c) of the California
Code of Regulations.
(b) After taking physical possession of a cannabis goods batch, the distributor
shall contact a testing laboratory and arrange for a laboratory employee to
come to the distributor's licensed premises to select a representative
sample for laboratory testing.
(c) A distributor shall ensure that all cannabis goods are stored separately and
distinctly from other cannabis goods on the distributor's premises.
(d) The distributor shall ensure that the batch size from which the sample is
taken meets the requirements of state law, specifically the testing provisions
within the California Code of Regulations.
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NCMC Chapter 9.60 May 4, 2021
(e) A distributor or an employee of the distributor shall be physically present to
observe the laboratory employee obtain the sample of cannabis goods for
testing and shall ensure that the increments are taken from throughout the
batch. The sampling shall be video -recorded, and the recording kept
available to state and local authorities for a minimum of one hundred eighty
(180) days, pursuant to Title 16, Section 5305 of the California Code of
Regulations.
A distributor shall not transport cannabis or cannabis products to a licensed
retail facility until and unless it has verified that the cannabis or cannabis
products have been tested and certified by a testing lab as being in
compliance with state health and safety requirements pursuant to Title 16,
Sections 5705, 5710 and 5714 of the California Code of Regulations.
(f)
Section 9.60.300. Additional Operating Requirements for Testing Labs.
(a) Testing Labs shall be required to conduct all testing in a manner pursuant to
Business and Professions Code Section 26100 and shall be subject to state
and local law. Each Testing Lab shall be subject to additional regulations as
determined from time to time as more regulations are developed under this
Chapter and any subsequent State of California legislation regarding the
same.
(b) Testing Labs shall conduct all testing in a manner consistent with general
requirements for the competence of testing and calibrations activities,
including sampling using verified methods.
(c) All cannabis testing laboratories performing testing shall obtain and maintain
ISO/IEC 17025 accreditation as required by the Bureau of Cannabis Control.
(d) Testing labs shall destroy any harvest batch whose testing sample indicates
noncompliance with health and safety standards required by the bureau
unless remedial measures can bring the cannabis or cannabis products into
compliance with quality standards as specified by law and implemented by
the bureau.
(e) Each operator shall ensure that a testing laboratory employee takes the
sample of cannabis or cannabis products from the distributor's premises for
testing required by state law and that the testing laboratory employee
transports the sample to the testing laboratory.
(f)
Except as provided by state law, a testing laboratory shall not acquire or
receive cannabis or cannabis products except from a licensee in accordance
with state law, and shall not distribute, sell, or dispense cannabis, or cannabis
products, from the licensed premises from which the cannabis or cannabis
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NCMC Chapter 9.60 May 4, 2021
{
(g)
products were acquired or received. All transfer or transportation shall be
performed pursuant to a specified chain of custody protocol.
A testing laboratory may receive and test samples of cannabis or cannabis
products from a qualified patient or primary caregiver only if the qualified
patient or primary caregiver presents the qualified patient's valid physician's
recommendation for cannabis for medicinal purpose. A testing lab shall not
certify samples from a qualified patient or primary caregiver for resale or
transfer to another party or licensee. All tests performed by a testing
laboratory for a qualified patient or primary caregiver shall be recorded with
the name of the qualified patient or primary caregiver and the amount of the
cannabis or cannabis products received.
Section 9.60.310. Additional Operating Requirements for Cannabis Manufacturing:
Edibles and Other Cannabis Products; Sale or Distribution of Edible and Other
Cannabis Products.
Cannabis manufacturing shall only be permitted pursuant to state law, this chapter and
or any subsequently created manufacturing state license as defined in MAUCRSA, and
may be permitted to operate only within those zone districts as defined in Section
9.60.070 of this Chapter and Section 18.20.020 of the City of National City Municipal
Code.
Any compressed gases used in the manufacturing process shall not be stored on any
property within the City of National City in containers that exceeds the amount which is
approved by the National City Fire Department and authorized by the regulatory permit.
Each site or parcel subject to a commercial cannabis business permit shall be limited to
a total number of tanks as authorized by the National City Fire Department on the property
at any time. Additional operating requirements include:
(a) Cannabis manufacturing facilities may use heat, screens, presses, steam
distillation, ice water, ethanol 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.
(b) 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 as referenced in Section 9.60.310 (f). The CO2 must be of at least
ninety-nine percent purity.
(c) Closed loop systems for compressed gas extraction systems must be
commercially manufactured and bear a permanently affixed and visible
serial number.
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NCMC Chapter 9.60 May 4, 2021
(d) Certification from an engineer licensed by the State of California, or by a
certified industrial hygienist, must be provided to the Community
Development Department for a professional grade closed loop system used
by any commercial cannabis manufacturing 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); or
(4) The American Society for Testing and Materials (ASTM)
(e) The certification document must contain the signature and stamp of the
professional engineer or industrial hygienist and serial number of the
extraction unit being certified.
(f)
(g)
(U)
Professional closed loop systems, other equipment used, the extraction
operation, and facilities must be approved for their use by the Fire
Department and meet any required fire, safety, and building code
requirements specified in the California Building Reference Codes.
Cannabis Manufacturing Facilities 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.
Cannabis Manufacturing Facilities creating cannabis extracts must
develop standard operating procedures, good manufacturing practices, and
a training plan prior to producing extracts for the marketplace.
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.
Parts per million for one gram of finished extract cannot exceed state
standards for any residual solvent or gas when quality assurance tested.
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NCMC Chapter 9.60 May 4, 2021
Section 9.60.320. Additional Operating Requirements for a Microbusiness-
Cultivation Facility.
Microbusinesses shall comply with all local operating requirements under this Chapter
and all requirements imposed by state law that apply to the specific activities operating
under the umbrella of the individual microbusiness.
(a) Outdoor Commercial Cultivation is prohibited.
(b) In no case, shall cannabis plants be visible from a public or private road,
sidewalk, park or any common public viewing area.
(c) Commercial cannabis cultivation which is permitted in the City of National
City shall not exceed 10,000 square feet of canopy space permitted by
state law as part of a microbusiness license.
(d) Cannabis cultivation shall be conducted in accordance with state and local
laws related to land conversion, grading, electricity, water usage, water
quality, woodland and riparian habitat protection, agricultural discharges,
and similar matters.
(e) Pesticides and fertilizers shall be properly labeled and stored to avoid
contamination through erosion, leakage or inadvertent damage from pests,
rodents or other wildlife.
(f)
(g)
The cultivation of cannabis 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, visitors to the area,
neighboring properties, and the end users of the cannabis being cultivated,
to protect the environment from harm to streams, fish, and wildlife; to ensure
the security of the cannabis being cultivated; and to safeguard against the
diversion of cannabis.
All applicants for a microbusiness permit which includes cannabis
cultivation shall submit to the following in addition to the information
generally otherwise required for a commercial cannabis business:
(1) A cultivation and operations plan that meets or exceeds minimum
legal standards for water usage, conservation and use; drainage,
runoff, and erosion control; 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
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NCMC Chapter 9.60 May 4, 2021
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.
(4) Plan for addressing odor and other public nuisances that may derive
from the cultivation site.
Section 9.60.330. Permissible Delivery Locations and Customers.
All retail businesses conducting cannabis delivery operations within the City of National
City are subject to the following requirements:
(a) A licensed cannabis business shall not deliver cannabis goods to an
address located on publicly owned land or any address on land or in a
building leased by a public agency.
(b) A licensed cannabis business shall comply with all requirements of state
and local law pertaining to the cannabis permit and all subsequent policies,
procedures and regulations which may be amended by the City Manager
from time to in order to enforce this Chapter.
(c) Any kiosk, i-Pad, tablet, smartphone, fixed location or technology
platform, whether manned or unmanned, other than a retail location
permitted by the city, that facilitates, directs, or assists the retail sale or
delivery of cannabis or cannabis products is prohibited and shall be a
violation of this Chapter.
Section 9.60.340. Expiration of Commercial Cannabis Business Permits.
Each commercial cannabis business permit issued pursuant to this Chapter shall expire
twelve (12) months after the date of its issuance. Commercial cannabis permits may be
renewed as provided in Section 9.60.350.
Section 9.60.350. Renewal of Cannabis Business Permits.
(a) An application for renewal of a commercial cannabis business permit shall
be filed at least sixty (60) calendar days prior to the expiration date of the
current permit.
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NCMC Chapter 9.60 May 4, 2021
(b) The renewal application shall contain all the information required for new
applications.
(c)
The applicant shall pay a fee in an amount to be set by the City Council to
cover the costs of processing the renewal permit application, together with
any costs incurred by the City of National City to administer the program
created under this Chapter.
(d) An application for renewal of a commercial cannabis business permit shall
be rejected if any of the following exists:
(1)
(2)
(3)
The application is filed Tess than sixty (60) days before its expiration.
The commercial cannabis business permit is suspended or revoked
at the time of the application.
The commercial cannabis business has not been in regular and
continuous operation in the four (4) months prior to the renewal
application.
(4) The commercial cannabis business has failed to conform to the
requirements of this Chapter, or of any regulations adopted pursuant
to this Chapter, or is in violation of any other state or local laws and
regulations.
(5)
The permittee fails or is unable to renew its State of California
license.
(6) If the state has determined, based on substantial evidence, that the
permittee or applicant is in violation of the requirements of the state
rules and regulations, and the state has determined that the violation
is grounds for termination or revocation of the commercial cannabis
business permit.
(e) The City Manager or their designee is authorized to make all decisions
concerning the issuance of a renewal permit. In making the decision, the
City Manager or their designee is authorized to impose additional conditions
to a renewal permit, 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. Appeals from the decision of the City Manager or their
designee shall be handled pursuant to Sections 9.60.380 through 9.60.400.
(f)
If a renewal application is rejected, a person may file a new application
pursuant to this Chapter no sooner than one (1) year from the date of the
rejection.
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NCMC Chapter 9.60 May 4, 2021
Section 9.60.360. Revocation or Suspension of Permits.
Commercial cannabis business permits may be revoked or suspended for any violation
of any relevant law and/or any rule, regulation and/or standard adopted pursuant to this
Chapter, including any amendments to those standards, or pursuant to any policy,
procedure or regulation in this Chapter or in the National City Municipal Code.
Section 9.60.370. Effect of State License Suspension, Revocation, or Termination.
Suspension of a license issued by the State of California, or by any of its departments or
divisions, shall immediately suspend the ability of a commercial cannabis business to
operate within the City of National City, until the State of California, or its respective
department or division, reinstates or reissues the State license. Should the State of
California, or any of its departments or divisions, revoke or terminate the license of a
commercial cannabis business, such revocation or termination shall also revoke or
terminate the ability of a commercial cannabis business to operate within the City of
National City. A cannabis business owner wishing to recommence operations shall re-
apply for a local permit at such time as it can demonstrate that the grounds for revocation
of the license by the state no longer exist, or that the underlying deficiency has otherwise
been cured.
Section 9.60.380. Appeals.
Unless specifically provided elsewhere to the contrary, whenever an appeal is provided
for in this Chapter from a decision of the City Manager or their designee, the appeal shall
be conducted as prescribed in this Chapter.
Section 9.60.390. Written Request for Appeal.
(a) Within ten (10) calendar days after the date of a decision of the City
Manager or their designee(s) to revoke, suspend or deny a permit, or to add
conditions to a permit, an applicant may appeal such action by filing a
written appeal with the City Clerk setting forth the reasons why the decision
was not proper. Reasons shall be stated with specificity.
(b) At the time of filing the appellant shall pay the designated appeal fee,
established by resolution of the City Council.
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NCMC Chapter 9.60 May 4, 2021
Section 9.60.400. Appeal Hearing Process.
(a) Upon receipt of the written appeal, the City Clerk shall schedule the matter
for a hearing before a hearing officer.
(b) The appeal shall be set within a reasonable time after the date of receipt of
the written appeal, but in no event shall be set later than thirty (30) City of
National City working days from the date of the receipt of the written appeal.
The hearing shall be held no later than ninety (90) City of National City
working days from the date of the receipt of the written appeal. The City
shall notify the appellant of the time and location at least ten (10) days prior
to the date of the hearing. The appellant can waive the right to have their
appeal set no later than thirty (30) City of National City working days and/or
held no later than ninety (90) City of National City working days from the
date of the receipt of the written appeal.
(c) At the hearing, the appellant may present any information they deem
relevant to the decision appealed. The formal rules of evidence and
procedure applicable in a court of law shall not apply to the hearing. The
applicant may have the assistance of counsel or may appear by counsel.
(d) After the City Manager or their designee has presented the statement of
facts upon which the determination was made, the burden to show that the
action taken by the City Manager or their designee was not based on
substantial evidence, or was arbitrary, capricious, or unjustified shall be
upon the appealing party.
(e) If the applicant, or counsel representing the applicant, fails to appear at the
hearing, the appeal is abandoned and the action of the City Manager or
their designee is final.
(f) The hearing officer may uphold the denial, suspension, or revocation, may
allow that which has been denied, reinstate that which has been suspended
or revoked, reverse or modify any other decision of the City Manager or
their designee that is the subject of the appeal.
(g) If the decision of the hearing officer is to deny the appeal, then that decision
shall be final and conclusive and shall constitute the exhaustion of the
administrative remedy.
(h) A copy of the written decision of the hearing officer specifying findings of
fact and the reasons for the decision shall be given to the applicant or the
designated representative and the City Manager or their designee within
thirty (30) calendar days of the hearing. If the hearing officer determines the
complexity of the case required additional time in which to render a decision,
the time in which to render the decision is automatically extended another
Commercial Cannabis Activity 38 Ordinance No. 2021 — 2487
NCMC Chapter 9.60 May 4, 2021
thirty (30) calendar days. Service of the decision shall govern the
commencement of any period of limitation for judicial review under Code of
Civil Procedure Section 1094.6 or 1084.8, whichever is applicable.
Section 9.60.420. Transfer of Cannabis Business Permit.
(a) The owner of a cannabis business permit shall not transfer ownership or
control of the permit, within the first year of obtaining said permit to another
person or entity unless and until the transferee obtains an amendment to
the permit from the City Manager or their designee stating that the
transferee is now the permittee. Such an amendment may be obtained only
if the transferee files an application with the City Manager or their designee
in accordance with all provisions of this Chapter (as though the transferee
were applying for an original cannabis business permit). The proposed
transferee's application shall be accompanied by a transfer fee in an
amount set by resolution of the City Council (or if not set, shall be the same
amount as the application fee) and an acknowledgment that any labor
agreements in existence at the time of transfer will be upheld by transferee.
(b) The City Manager or their designee shall conduct a hearing to determine
whether the transferee passed the background check required for
permittees and meets all other requirements of this Chapter.
(c) Commercial cannabis business permits issued through the grant of a
transfer by the City Manager or their designee shall be valid for a period of
one year beginning on the day the City Manager or their designee approves
the transfer of the permit. Before the transferee's permit expires, the
transferee shall apply for a renewal permit in the manner required by this
Chapter.
(d) Changes in ownership of a permittee's business structure or a substantial
change in the ownership of a permittee business entity (changes that result
in a change of more than 25% of the original ownership), must be approved
by the City Manager or their designee through the transfer process
contained in this subsection (a). Failure to comply with this provision is
grounds for permit revocation.
(e) A permittee may change the form of business entity without applying to the
City Manager or their designee for a transfer of permit, provided that either:
1. The membership of the new business entity is substantially similar to
original permit holder business entity (at least 25% of the membership
is identical), or
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NCMC Chapter 9.60 May 4, 2021
Although a transfer is not required in this circumstance, the permit holder
is required to notify the City Manager or their designee in writing of the
change within ten (10) days of the change. Failure to comply with this
provision is grounds for permit revocation.
No commercial cannabis business permit may be transferred when the
City Manager or their designee has notified the permittee that the permit
has been or may be suspended or revoked.
Any attempt to transfer a commercial cannabis business permit either
directly or indirectly in violation of this section is hereby declared void,
and such a purported transfer shall be deemed a ground for revocation
of the permit.
Section 9.60.430. Change in Location; Updated Permit Application.
(a) Any time the dispensing, cultivation, manufacturing, transportation and
distribution location specified in the regulatory permit is changed, the
applicant shall re -file a permit application with the City Manager or their
designee(s) containing the updated information. The process and the fees
for this re -registration shall be the same as the process and fees set forth
for registration in Sections 9.60.420(c) and 9.60.160.
(b) Within fifteen (15) calendar days of any other change in the information
provided in the permit application form or any change in status of
compliance with the provisions of this Chapter, including any change in the
commercial cannabis business ownership or management members, the
applicant shall file an updated permit application form with the City
Manager or their designee(s) for review along with a application
amendment fee, as set forth in Sections 9.60.420(c) and 9.60.160).
Section 9.60.440. Promulgation of Regulations, Standards and Other Legal Duties.
(a) In addition to any regulations adopted by the City Council, the City Manager
or their designee is authorized to establish any additional rules, regulations
and standards governing the issuance, denial or renewal of commercial
cannabis business permits, the ongoing operation of commercial cannabis
businesses and the City's oversight, or concerning any other subject
determined to be necessary to carry out the purposes of this Chapter.
(b) Regulations will be published on the City's website.
(c) Regulations promulgated by the City Manager shall become effective upon
date of publication. Commercial cannabis businesses shall be required to
comply with all state and local laws and regulations, including but not
Commercial Cannabis Activity 40 Ordinance No. 2021 — 2487
NCMC Chapter 9.60 May 4, 2021
limited to any rules, regulations or standards adopted by the City Manager
or their designee.
(d) Testing Labs, Distribution facilities, Out of City Delivery Services and
Special Events shall be subject to state law and shall be subject to
additional City regulations as determined from time to time as more
regulations are developed under Section 9.60.020 of this Chapter and any
subsequent State of California legislation regarding the same.
Section 9.60.450. Community Relations.
(a) Each facility must provide the City Manager or designee with the name,
telephone number, and email address of an on -site community relations or
staff person or other representative to whom the city can provide notice if
there are operating problems associated with the facility or refer members
of the public who may have any concerns or complaints regarding the
operation of the facility. Each facility must also provide the above
information to all businesses and residences located within 100 feet of the
facility.
(b) During the first year of operation of a facility authorized under this Chapter,
the owner, manager, and community relations representative from each
such facility must attend a monthly meeting with the City Manager or their
designee to discuss costs, benefits and other community issues arising as
a result of implementation of the Certificate of Approval authorized by this
Chapter. After the first year of operation, the owner, manager, and
community relations representative from each such facility must meet with
the City Manager or their designee when and as requested by the City
Manager or their designee, with reasonable notice.
Section 9.60.460. Fees Deemed Debt to the City of National City.
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed
a debt to the City of National City that is recoverable via an authorized administrative
process as set forth in the City ordinance, or in any court of competent jurisdiction.
Section 9.60.470. Responsibility for Violations.
All Responsible persons pursuant to this Chapter shall be responsible for all violations of
the laws of the State of California or of the regulations and/or the ordinances of the City
of National City, whether committed by the property owner, permittee or any employee or
agent of the property owner or permittee, which violations occur in or about the premises
of the commercial cannabis business whether or not said violations occur within the
permit holder's presence.
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NCMC Chapter 9.60 May 4, 2021
Section 9.60.480. Inspection and Enforcement.
(a) The City Manager, or their designee charged with enforcing the provisions
of the City of National City Municipal Code, or any provision thereof, may
enter the location of a commercial cannabis business at any time, without
notice, to check for compliance with all state and local laws and inspect the
location of any commercial cannabis business as well as any recordings
and records required to be maintained pursuant to this Chapter or under
applicable provisions of State law.
(b) It is unlawful for any responsible persons, to impede, obstruct, interfere with,
or otherwise not to allow, the City to conduct an inspection, review or copy
records, recordings or other documents required to be maintained by a
commercial cannabis business under this Chapter or under state or local
law. It is also unlawful for a person to conceal, destroy, deface, damage, or
falsify any records, recordings or other documents required to be
maintained by a commercial cannabis business under this Chapter or under
state or local law.
(c) The City Manager, or their designee charged with enforcing the provisions
of this Chapter may enter the location of a commercial cannabis business
at any time during the hours of operation and without notice to obtain
samples of the cannabis to test for public safety purposes. Any samples
obtained by the City of National City shall be logged, recorded, and
maintained in accordance with established procedures by the City of
National City's City Manager or their designee or these regulations.
Section 9.60.490. Compliance with State Regulations.
It is the stated intent of this Chapter to regulate commercial cannabis activity in the City
of National City in compliance with all provisions MAUCRSA and any subsequent state
legislation.
Section 9.60.500. Violations Declared a Public Nuisance.
Each and every violation of the provisions of this Chapter is hereby deemed unlawful and
a public nuisance and may be enjoined civilly or administratively. In addition, and to the
extent not expressly provided elsewhere in this code, it is unlawful and a misdemeanor
to maintain a public nuisance.
Section 9.60.510. Each Violation a Separate Offense.
Each and every violation of this Chapter shall constitute a separate violation and shall be
subject to all remedies and enforcement measures authorized by the City of National City.
Additionally, as a nuisance per se, any violation of this Chapter shall be subject to
Commercial Cannabis Activity 42 Ordinance No. 2021 — 2487
NCMC Chapter 9.60 May 4, 2021
injunctive relief, any permit issued pursuant to this Chapter being deemed null and void,
disgorgement and payment to the City for any monies unlawfully obtained, costs of
abatement, costs of investigation, attorney fees, and any other relief or remedy available
at law or in equity. The City of National City may also pursue any and all remedies and
actions available and applicable under state and local laws for any violations committed
by the commercial cannabis business or persons related to, or associated with, the
commercial cannabis activity.
Section 9.60.520. Serious Violations Grounds for Immediate Suspension of
License or Permit.
The City shall retain the authority, pursuant to Chapter 1.12, to address serious violations
that rise to the level of posing an imminent threat to the public health, safety or welfare of
the City, by immediately suspending the commercial cannabis license or permit issued by
the City with a stop order. Such action by the City may be appealed pursuant to Sections
9.60.380 to 9.60.400 of this Chapter.
Section 9.60.530. Criminal Penalties.
Each and every violation of the provisions of this Chapter may in the discretion of the
District Attorney or City Attorney be prosecuted as a misdemeanor and upon conviction
be subject to a fine not to exceed one thousand dollars ($1,000) or imprisonment in the
County jail for a period of not more than twelve (12) months, or by both such fine and
imprisonment. Each day a violation is committed or permitted to continue shall constitute
a separate offense.
Section 9.60.540. Remedies Cumulative and Not Exclusive.
(a) The remedies provided herein are not to be construed as exclusive
remedies. The City of National City is authorized to pursue any proceedings
or remedies provided by law.
(b) The City Attorney may, in addition to, or in lieu of prosecuting a criminal
action hereunder, commence an action or actions, proceeding or
proceedings for the abatement, removal, or enjoinment thereof, in any
manner provided by law.
Commercial Cannabis Activity 43 Ordinance No. 2021 — 2487
NCMC Chapter 9.60 May 4, 2021
ATTEST:
PASSED and ADOPTED this 4TH day of May, 2021.
Luz Molinity Cle k
APPROVED AS TO FORM:
Charles E. Bell Jr., Cj
Attorney
Alejandra Sotelo-Solis, Mayor
Commercial Cannabis Activity 44 Ordinance No. 2021 — 2487
NCMC Chapter 9.60 May 4, 2021
Passed and adopted by the Council of the City of National City, California, on May 4,
2021, by the following vote, to -wit:
Ayes: Sotelo-Solis, Rodriguez, Bush, Rios
Nays: Morrison
Absent: None.
Abstain: None.
AUTHENTICATED BY: Alejandra Sotelo-Solis
By:
Mayor of the City of National City, California
Luz Molina
City Clerk of the City of National City, California
(kw{
QShelley Chapel,Mk(ikp
Q
MC, Deputy y Clerk
I HEREBY CERTIFY that the foregoing Ordinance was not finally adopted until seven
calendar days had elapsed between the day of its introduction, second reading and the
day of its final passage, to wit, on March 17, 2021, April 6, 2021 and on May 4, 2021.
I FURTHER CERTIFY THAT said Ordinance was read in full prior to its final passage or
that the reading of said Ordinance in full was dispensed with by a vote of not less than
a majority of the members elected to the Council and that there was available for the
consideration of each member of the Council and the public prior to the day of its
passage a written or printed copy of said Ordinance.
I FURTHER CERTIFY that the above and foregoing is a full, true and correct copy of
ORDINANCE NO. 2021-2487 of the City Council of the City of National City, passed
and adopted by the Council of said City on May 4, 2021.
By:
_r.41 ttiGt
Luz Molina, City, lerk
City of National City, California
8.. A,
Shelley Chapel, MMC, Deputy City Clerk
Chapter 9.60
Commercial Cannabis Businesses
Sections:
Section 9.60.010. Purpose and Intent.
Section 9.60.020. Legal Authority.
Section 9.60.030. Cannabis Cultivation and Commercial Cannabis Activities Prohibited Unless
Specifically Authorized by this Chapter.
Section 9.60.040. Compliance with State and Local Laws.
Section 9.60.050. Definitions.
Section 9.60.060. Authorization to Engage in Commercial Cannabis Business.
Section 9.60.070. Location and Design of Cannabis Businesses.
Section 9.60.080. Maximum Number and Type of Authorized Commercial Cannabis
Businesses Permitted.
Section 9.60.090. Fees and Charges.
Section 9.60.100. Development Agreement.
Section 9.60.110. Evidence of Cannabis Owner(s), Representative(s) and Employee(s)
Background Check Required.
Section 9.60.120. Persons Prohibited from Holding a Commercial Cannabis License.
Section 9.60.130. Persons Prohibited from Employment by a Commercial Cannabis Business.
Section 9.60.140. Certification from the Community Development Department.
Section 9.60.150. Right to Occupy and to Use Property.
Section 9.60.160. Application Procedure for a Cannabis Business Permit.
Section.9.60.180. Operations Plan and Standards.
Section 9.60.190. Limitations on City's Liability.
Section 9.60.200. Restriction on Alcohol & Tobacco Sales.
Section 9.60.225. Restriction on Consumption of Cannabis or other Substances
Section 9.60.230. General Operating Requirements for all Commercial Cannabis Businesses.
Section 9.60.240. Amendments to General Operating Requirements.
Section 9.60.250. Additional Operating Requirements for Store Front Retail Facilities.
Section 9.60.260. Additional Operating Requirements for Non -Store Front Retail Facilities.
Section 9.60.265. Operating Requirements for Consumption Lounges.
Section 9.60.270. In -City Delivery Vehicle Requirements.
Section 9.60.275. Out -of -City Delivery Vehicle Requirements.
Section 9.60.280. Additional Operating Requirements for a Cultivation Facility Operation.
Section 9.60.290. Additional Operating Requirements for Distributors.
Section 9.60.300. Additional Operating Requirements for Testing Labs.
Section 9.60.310. Additional Operating Requirements for Cannabis Manufacturing: Edibles
and Other Cannabis Products; Sale or Distribution of Edible and Other
Cannabis Products.
Section 9.60.320. Additional Operating Requirements for a Microbusiness-Cultivation
Facility.
Section 9.60.330.
Section 9.60.340.
Permissible Delivery Locations and Customers.
Expiration of Commercial Cannabis Business Permits.
Section 9.60.350. Renewal of Cannabis Business Permits.
Section 9.60.360. Revocation or Suspension of Permits.
Section 9.60.370. Effect of State License Suspension, Revocation, or Termination.
Section 9.60.380: Appeals.
Section 9.60.390. Written Request for Appeal.
Section 9.60.400. Appeal Hearing Process.
Section 9.60.420. Transfer of Cannabis Business Permit.
Section 9.60.430. Change in location; updated permit application.
Section 9.60.440. Promulgation of Regulations, Standards and Other Legal Duties.
Section 9.60.450. Community Relations.
Section 9.60.460. Fees Deemed Debt to the City of National City.
Section 9.60.470. Responsibility for Violations.
Section 9.60.480. Inspection and Enforcement.
Section 9.60.490. Compliance with State Regulations.
Section 9.60.500. Violations declared a public nuisance.
Section 9.60.510. Each violation a separate offense.
Section 9.60.520. Serious Violations Grounds for Immediate Suspension of License or Permit.
Section 9.60.530. Criminal Penalties.
Section 9.60.540. Remedies cumulative and not exclusive.