HomeMy WebLinkAboutStaff Report 4.F 12/18/2017Agenda Item #4.F
DATE: December 18, 2017
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Ingrid Alverde, Economic Development Manag.
SUBJECT: Resolution Establishing Commercial Cannabis Permit Regulations
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution (Attachment 1)
establishing regulations for Commercial Cannabis Permits and Activities in the City of Petaluma.
BACKGROUND
On December 4, 2017, the City Council approved an ordinance banning Medical and Non -
Medical Cannabis related activities in the City with exceptions for cultivation, medical cannabis,
and specified manufacturing, testing and retail delivery operations (Attachment 2). The
Ordinance specifies that the commercial cannabis businesses allowed by the new rules will be
permitted and regulated by regulations to be adopted by the City Council.
DISCUSSION
State Regulations. The State of California recently released emergency regulations to address all
aspects of cannabis, including cultivation, testing, manufacturing, licensing, and sale of cannabis
products. The rules are developed and enforced by the Bureau of Cannabis Control, the
Department of Public Health, and the Department of Food and Agriculture. Fact Sheets from
each department are attached (Attachment 3). Petaluma's regulations will be recognized by the
State — cannabis licenses will not be issued by the State for commercial cannabis activity in the
City unless the licensee has first been issued a local permit.
Commercial Cannabis Permit Regulations. The attached Commercial Cannabis Regulations,
(Attachment 4), outline how Petaluma will regulate commercial cannabis businesses, including
what types of commercial cannabis businesses may be allowed, how they must operate, and
where they can locate. The regulations also dictate the process by which permits will be issued,
renewed, and revoked. As outlined in its Ordinance, Petaluma may issue permits to up to a
maximum of two (2) delivery -only outlets, and to certain businesses that manufacture or test
cannabis products.
Permit Application Procedures. Permits for manufacturing and / or testing commercial cannabis
products will be issued by the Police Chief. The application, Attachment 5, will be reviewed by
the Police department to determine that operators meet background, operating and location
requirements. A completed application will also identify managers and employees of the
proposed operation, as a mechanism to enable City staff to know who is authorized to be on site,
or to deliver products.
Location Limitations. It is proposed that commercial cannabis businesses be limited to
properties located in the Business Park (BP) and Industrial (I) zones. Under state law,
commercial cannabis businesses are required to be at least 600 feet from a school or a childcare
center. Staff has conducted an analysis of the business parks and industrially zoned properties
that meet this requirement. It is further recommended that Petaluma establish additional buffers
to separate cannabis businesses at least 200 feet from parks, youth centers, or the library, and 100
feet from residential districts. Attachment 6 shows the locations where commercial cannabis
businesses could locate under these limitations. Permit applicants will not be eligible to be
issued permits until zoning amendments are adopted and take effect to specify the locations in
the City where commercial cannabis operations may occur.
Operating Standards. Operators are required to meet stringent security requirements outlined in
the "Cannabis Business Security Standards," Attachment 7. Security cameras, employee
monitoring, and signage limitations, among other requirements, are intended to minimize the
potential of criminal impacts on the cannabis businesses or their neighbors. Operators will be
required to have a current State - issued license and a Petaluma Business License. They must also
limit operations between 8:00 am and 8:00 pm, prohibit any on -site consumption of cannabis,
and be devoid of any signage that identifies the business as cannabis- related.
Permit Issuance and Revocation. It is proposed permits be issued annually, and that businesses
receive only a 1 -year entitlement to conduct a commercial cannabis activity. If a business is not
meeting program requirements, regulations can be enforced using Petaluma's code compliance
process or by denying a renewal of the permit for the following year. Permit renewals can be
denied if a commercial cannabis business is found to have:
• Provided incorrect or misleading information on their application
• Failed to operate in accordance with all local, state and federal laws
• Closed for three consecutive months
• Not remained current on local taxes, or
• If any circumstance under which the permit was issued has changed
Permit Fee. The permit fee is recommended at $3,500 for the initial year's operation, and $2,500
per year for subsequent renewals. Fee calculations account for staffing costs in the Police and
Finance Department, Planning Division, and City Manager's and Attorney's offices associated
with processing applications, completing background checks, and conducting periodic business
inspections during the year. Fees also include a component for complaint investigation and
resolution.
Delivery -only Dispensaries: The ordinance allows up to two (2) delivery -only dispensaries in
Petaluma. The Council has indicated it wants these businesses to be selected through a request
for proposal (RFP) process. The draft RFP, Attachment 8, solicits sufficient information to
enable staff to evaluate applicants and to assure only the most experienced businesses, with the
best track records, will operate dispensaries in Petaluma. Delivery -only dispensaries will be
selected based on their background and experience, their proposed business plan, their financial
strength, their security plan and their references. Each team member will be required to undergo
a criminal background check.
If a proposer disagrees with the staff selection, they will have the opportunity to appeal the
decision to the City Council.
Several business inquiries have been received since the Council adopted the City's current
cannabis Ordinance. The Council's approval of the attached regulations will position Petaluma to
be ready to evaluate and potentially to permit businesses as soon as the State's regulations for
commercial activity and the City's zoning code text amendment go into effect early next year.
The Council's approval of the recommended action is, therefore, respectfully requested.
FINANCIAL IMPACTS
The Commercial Cannabis Permit fee of $3,500 for the issuing the first permit and $2,500 for the
permit renewal is estimated to recover costs associated with issuing permits to and overseeing
the operations of commercial cannabis businesses.
ATTACHMENTS
1. Resolution Establishing Commercial Cannabis Regulations
2. Ordinance Establishing Cannabis Regulations
3. State of California Cannabis Regulations Fact Sheets
4. Commercial Cannabis Permit Regulations
5. Commercial Cannabis Permit Application
6. Commercial Cannabis Business Location Map
7. Commercial Cannabis Security Standards
8. Delivery -only Dispensary Request for Proposals
IN
ATTACHMENT 1
Resolution No. 2017 -XXX N.C.S.
of the City of Petaluma, California
ADOPTING COMMERCIAL CANNABIS REGULATIONS AND
COMMERCIAL CANNABIS PERMIT FEES PURSUANT TO CHAPTER
10.15 OF THE PETALUMA MUNICIPAL CODE
WHEREAS, in November, 2016, California voters approved Proposition 64, the Control,
Regulate and Tax Adult Use of Marijuana Act, referred to in ballot materials as the Adult Use of
Marijuana Act ( "AUMA "), which established a regulator scheme for nonmedical cannabis
similar to that previously enacted for medical cannabis pursuant to the Medical Marijuana
Regulation and Safety Act; and
WHEREAS, as codified in the California Health and Safety Code and the California
Business and Professions Code, the AUMA decriminalized for purposes of state law specified
nonmedical cannabis uses pursuant to California Health and Safety Code section 11362.1,
including, possession, processing, transporting, purchasing, obtaining and given away to persons
21 years old older, without compensation, not more than 28.5 grams of non - concentrated
cannabis or not more than 8 grams of concentrated cannabis, including cannabis contained in
cannabis products; possessing , planting, cultivating, harvesting, drying or processing not more
than six living cannabis plants and possessing the cannabis produced by the plants; smoking or
ingesting cannabis or cannabis products, and possessing, transporting, purchasing, obtaining,
using, manufacturing, or giving away to persons 21 years of age or older without compensation
cannabis accessories; and
WHEREAS, in response to enactment of the AUMA, the City Council introduced on
November 13, 2017 and subsequently adopted on December 4, 2017, Ordinance no. 2634 N.C.S.
repealing and replacing former Chapter 10.15 of the Petaluma Municipal Code entitled "Medical
Marijuana" with a new chapter 10.15 entitled "Cannabis" extending the City's cannabis
regulations to non - medical cannabis uses in the City; and
WHEREAS, section 10. 15.010 of Ordinance 2634 N.C.S. provides that the purpose of
Chapter 15 is to recognize and respect the will of the California voters in approving the AUMA
through adoption of less restrictive local cannabis regulations, while at the same time promoting
the public health, safety and welfare of the Petaluma community; and
WHEREAS, Section 10.15.040 of Ordinance 2634 N.C.S. authorizes certain limited
commercial cannabis activity, subject to issuance of a City permit therefore, for manufacture and
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wholesale sale of topical or edible cannabis products, testing laboratories, and delivery -only
retail sale at up to two locations in the City; and
WHEREAS, Section 10. 15.090 provides that the City Council shall adopt regulations or
authorize the City Manager to promulgate regulations intended to implement the requirements of
Ordinance 2634 N.C.S.; and
WHEREAS, Section 10.15.040, paragraph (B) of Ordinance 2634 N.C.S. provides that
the commercial cannabis activities authorized under that section may only be carried out while
and to the extent the activity is conducted pursuant to and in accordance with a current, valid,
unexpired, unrevoked, fully -paid, license, permit or other authorization or notice issued by an
authorized city official, and pursuant to and in accordance with all other applicable state and
local laws and regulation, including, but not limited to the regulations adopted or promulgated
pursuant to section 10.15.090; and
WHEREAS, the City Council found in adopting Ordinance 2634 N.C.S. that new
Chapter 10.15 of the Petaluma Municipal Code would result in negligible environmental
impacts, if any, because commercial cannabis activity authorized under the ordinance would be-
subject to granting of a City license, permit or other authorization, and subject to CEQA review;
and
WHEREAS, the City Council found that due to the negligible environmental impacts
anticipated from enactment of new Chapter 10.15 of the Petaluma Municipal Code that would
not be subject to subsequent CEQA review, Ordinance 2634 N.C.S. was exempt form CEQA
pursuant to Sections 15061(b)(3), 15301 and 15303;
NOW, THEREFORE, be it resolved by City Council of the City of Petaluma, as
follows:
1. The above recitals are hereby declared to be true and correct and are hereby adopted
as findings of the City Council.
2. Adoption of this resolution is exempt from CEQA for the same reasons that adoption
of Ordinance 2634 N.C.S. was determined to be exempt from CEQA, namely that
environmental impacts of adoption of this resolution, if any, are determined to be
negligible.
3. The Commercial Cannabis Permit Regulations attached to and made a part of this
resolution as Exhibit A are hereby approved and adopted in satisfaction of the
requirements in Section 10. 15.090 of Chapter 10.15 of the Petaluma Municipal Code.
4. The commercial cannabis permit fees of $3,500 for the initial permit and $2,500 for a
permit renewal are hereby adopted as regulatory fees of the City pursuant to the
City's police power. under Article 11, Section 7 of the California Constitution and
other applicable law to cover the cost of staff review of permit applications and
related proceedings, permit issuance, and administration and enforcement of the
City's commercial cannabis regulations.
5. If any section, subsection, sentence, clause, phrase or word of this resolution is for
any reason held to be unconstitutional, unlawful or otherwise invalid by a court of
competent jurisdiction or preempted by state or federal legislation, such decision or
legislation shall not affect the validity of the remaining portions of this resolution.
The City Council hereby declares that it would have passed and adopted this
resolution and each and all provisions thereof irrespective of the fact that any one or
more of said provisions be declared unconstitutional, unlawful or otherwise invalid.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 1811 day of December form:
2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
Mayor
City Attorney
EXHIBIT A
y�ALUk City of Petaluma Dated:
a9
Commercial Cannabis Permit Regulations December 18, 2017
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Commercial Cannabis Businesses
These regulations apply to the establishment and operation of cannabis businesses within the
City of Petaluma in accordance with and subject to Chapter 10.15 of the Petaluma Municipal
Code.
A. Purpose. To recognize the will of the voters in approving Proposition 64 while promoting
the public health, safety, and welfare through regulating specified commercial cannabis
activity in the City in accordance with Petaluma Municipal Code Section 10.1510.
B. Permit Eligibility. The following commercial cannabis activities are eligible for issuance of a
City permit, so long as the activity is conducted in areas of the City where the use is
permitted in accordance with the City's zoning regulations, as required by Section
10.15.040(A)(2) of the Petaluma Municipal Code:
1. Manufacturing. In accordance with Petaluma Municipal Code section 10.15.040(B),
commercial cannabis permits may be issued to businesses that manufacture and sell
topical or edible cannabis products using cannabis infusions, infusion processes, or
cannabis concentrates only business to business (non- retail). Manufacture of cannabis
products involving volatile solvents, and repackaging cannabis or cannabis products or
re- labeling cannabis or cannabis product containers are not authorized commercial
cannabis activities under Chapter 10.15 of the Petaluma Municipal Code and are not
eligible for issuance of a City permit.
2. Testing. In accordance with Petaluma Municipal Code section 10.15.040(C), commercial
cannabis permits may be issued to laboratories, facilities or entities that offer or
perform testing of cannabis or cannabis products. To be eligible for issuance of a City
permit, testing businesses must be:
a) Accredited by an accrediting body that is independent from all other persons
involved in commercial cannabis activity in the state; and
b) Licensed by the state Bureau of Cannabis Control.
3. Delivery -only dispensary / retailer.
In accordance with Section 10.15.040(D) of the Petaluma Municipal Code, the following
retail cannabis sales activity is eligible for issuance of a City permit:
a) A total of up to two (2) delivery -only cannabis dispensary permits may be issued to
businesses in the City that sell cannabis and cannabis products using a delivery -only
method in accordance with section 10.15.060 of the Petaluma Municipal Code
b) The City delivery only dispensary / retailer permits will be issued using a request for
proposal process.
In accordance with Petaluma Municipal Code section 10.15.040(D), the following are not
authorized commercial cannabis activities under Chapter 10.15 of the Petaluma
Municipal Code and are not eligible for issuance of a City permit:
Onsite sale of cannabis or cannabis products to customers, primary care givers or
qualified patients occurring at the business location;
c) Customers, primary caregivers or qualified patients at the business location at any
time; and
d) Signage at the business location or on the delivery vehicles indicating the presence
of cannabis or cannabis products or that the seller sells cannabis or cannabis
products.
C. Commercial Cannabis Business Owner and Employee Requirements.
1. All commercial cannabis business owners and employees must be 21 years of age or
older
2. Commercial cannabis business owners and /or employees applying for and /or operating
under a City permit are subject to background check. Commercial cannabis permit
applications may be denied, and issued commercial cannabis permits may be revoked, if
the business owner and /or the business owner's employees have been convicted of an
offense that substantially relates to the qualifications, functions or duties of the
business that is the subject of the permit application or an issued permit. Such offenses
that may disqualify an applicant or result in revocation of an issued permit include, but
are not limited to, a felony conviction involving fraud, deceit, or embezzlement, and a
criminal conviction for the sale or provision of illegal controlled substances to a minor.
D. Location limitations.
In accordance with Petaluma Municipal Code section 10.15.040, commercial cannabis
businesses are only permitted to operate in areas of the City where commercial cannabis
business uses are expressly listed as permitted uses in accordance with the City's zoning
regulations.
E. Permit Application Process
1. Application. Applications for a City cannabis business permit shall be submitted to the
Chief of Police on a form provided by the City. Applications that are not complete,
including a completed City form, and any required supporting information, may be
returned. Applicants should allow approximately 60 days for City permit application
review.
2. Fee. The fee that applies to process applications for cannabis business permits shall be
set by City Council resolution. No fee payments will be prorated or refunded in the
event of a permit denial or revocation. Applications that are submitted without the
required fee may be returned.
3. Applicable Regulations. Cannabis business permit applications are subject to the laws
and regulations in effect at the time an application is submitted.
4. No Entitlement. The City has no duty or obligation to issue any cannabis business
permits. Issuance of cannabis business permits is not ministerial and is subject to
exercise of the Police Chief's discretion. Neither Chapter 10.15 of the Petaluma
Municipal Code nor these regulations create in any person or entity any entitlement or
vested right to receive a cannabis business permit.
S. Police Chief Review. Permit applications will be subject to the Police Chief's review.
The Police Chief will determine in the Police Chief's sole discretion whether to issue a
permit taking into account the factors listed under the Permit Denial and Revocation
section, below, and any other factors the Police Chief deems relevant. The Police Chief
may issue cannabis business permits subject to conditions the Police Chief deems
necessary or appropriate to protect the public health, safety and welfare.
F. Permit Term. Unless revoked or suspended, cannabis business permits and permit renewals
shall be valid through the end of the calendar year in which they are issued and unless
timely renewed will expire without further action of the City January 1 of the immediately
following year.
G. Permit Renewal Process.
1. Application. Cannabis business permit renewal applications shall be submitted to the
Police Chief on a form provided by the City. Renewal applications that are not complete,
including a completed City form, and any required supporting information, may be
returned.
2. Fee. The fee that applies to process applications for renewing cannabis business
permits shall be set by City Council resolution. Permit renewal applications that are
submitted without the required fee may be returned.
3. Renewal Application Deadline. Renewal applications and any applicable fees and
required supporting information must be submitted at least sixty (60) days before the
expiration of the permit. Permits of eligible renewal applicants that do not submit
timely, complete renewal applications may expire prior to issuance of a renewal permit,
if a renewal permit is issued, requiring cessation of commercial cannabis business
operations until the renewal permit takes effect.
4. Failure to Apply for Renewal. Failure to submit a completed cannabis business permit
renewal application prior to the expiration date of a permit will result in the automatic
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expiration of the permit effective January 1 of the year immediately following the year
in which the permit was issued.
5. Applicable Regulations. Permit renewal is subject to the laws and regulations in effect
at the time a renewal application is submitted. Such laws and regulations may be
substantially different from the laws and regulations in effect when a permit was issued.
Renewal applications may require submittal of additional information, and compliance
with updated fee and other requirements as required by the laws and regulations then
in effect.
6. No Entitlement. The City has no obligation or duty to renew any cannabis business
permits. Issuance cannabis business permits is not ministerial and is subject to exercise
of the Police Chief's discretion.. Neither Chapter 10.15 of the Petaluma Municipal Code
nor these regulations create in any person or entity any entitlement or vested right to
receive a cannabis business permit renewal.
7. Police Chief Review. Permit renewal requests will be subject to the Police Chief's
review The Police Chief will determine in the Police Chief's sole discretion whether to
issue a renewal permit taking into account the factors listed under the Permit Denial
and Revocation section, below, and any other factors the Police Chief deems relevant.
The Police Chief may renew cannabis business permits subject to conditions the Police
Chief deems necessary or appropriate to protect the public health, safety and welfare.
H. Permit denial and revocation.
Applications to issue or renew a cannabis business permit may be denied and existing permits
may be revoked based on violations by the permit applicant or permit holder of any provision
of these regulations or of the Petaluma Municipal Code, including, but not limited to, violations
of Petaluma Municipal Code Chapter 1.10 of the Petaluma Municipal Code. In addition,
applications to issue or renew a cannabis business permit may be denied and issued permits
may be revoked based on a determination that:
1. Continuation of a cannabis business's operations presents a threat to the health, safety
or welfare of the public.
2. Information contained in a cannabis business's permit application is found to be
incorrect or misleading.
3. A cannabis business has failed to operate in accordance with all local, state, and federal
laws or any requirements of these regulations.
4. A cannabis business owner and /or the business owner's employees have failed to
comply with the commercial cannabis security requirements which are attached to and
made a part of these regulations as Exhibit A.
5. A cannabis business's state license for commercial cannabis operations has been
revoked, terminated, or not renewed.
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6. A commercial cannabis business has not been in regular and continuous operation for
three (3) consecutive months.
7. State law permitting the use. for which a cannabis business's permit was issued is
amended or repealed resulting in such use becoming unlawful under state law.
8. The City receives credible information that the federal government will commence
enforcement measures against cannabis businesses and /or local governments that
permit them.
9. The circumstances under which a cannabis business permit was issued have changed
such that the public health, safety, and welfare require the suspension, revocation, or
modification of the permit.
10. A cannabis business is delinquent in timely remitting applicable City taxes or fees.
H. Permit Transfer.
1. Cannabis business permits are not transferable to a location different from the location
for which a permit has been issued, or to another cannabis business owner.
2. Cannabis business owners wishing to relocate to a new location in the City and
prospective cannabis business owners wishing to acquire an existing, permitted
cannabis business must submit new permit applications for such transfer or acquisition.
New cannabis business locations and owner(s) must meet all requirements for new
cannabis business permit applications..
Revocation Proceedings and Appeals. Cannabis business permit revocation proceedings,
appeals of cannabis business permit revocations, appeals of cannabis business permit
application denials, and judicial review of permit revocation and denial appeals, will be
subject to and conducted in accordance with the requirements for administrative
enforcement of violations of the Petaluma Municipal Code pursuant to Chapter 1.14 of the
Petaluma Municipal Code.
J. Cannabis Business Operating Requirements.
1. State License. In addition to complying with these regulations, all activities under City
cannabis business permits that are subject to State license requirements must be
conducted subject to and in accordance with all applicable state licenses. Cannabis
business permit holders must also hold valid, unrevoked state licenses for all activities of
the cannabis business permit holder that are subject to state license. City Business
License. All cannabis business permits holders must also hold a valid, unrevoked City of
Petaluma business license.
2. Hours of Operation. Cannabis business permit holders may operate their cannabis
business only between the hours of 8:00 a.m. and 8:00 p.m.
3. No Cannabis Signage. Cannabis business may not display exterior signage or symbols
that advertise the availability of cannabis or cannabis products, nor shall any such
signage or symbols be displayed on the interior of the facility in such a way as to be
visible from the exterior.
4. No Onsite Consumption. No cannabis or cannabis products may be smoked or ingested
on the premises of any cannabis business, including by owners, employees, vendors or
customers. The term "premises" includes the entire cannabis business premises,
including buildings, as well as any accessory structures, parking areas, or other
immediate surroundings.
5. Cannabis Deliveries. Cannabis deliveries may only be made by an owner or employee of
the cannabis delivery business, and such owners and employee must carry with them at
all times while conducting deliveries, either on their person or in their delivery vehicle, a
physical copy of the City commercial cannabis business permit under which they are
operating, the City business license under which they are operating, and all state
cannabis licenses under which they are operating.
6. Employees. All employees of commercial cannabis businesses must be at least 21 years
of age and are subject to background check by local law enforcement. The City may
implement a registration system whereby all commercial cannabis business owners and
employees must register with the City to permit background checks as a condition of
issuance or renewal of commercial cannabis business permits.
7. Onsite Security. Commercial cannabis businesses must comply with the Commercial
Cannabis Security Requirements attached as Exhibit A to these regulations. Commercial
cannabis business permits of cannabis businesses that fail to comply with the
Commercial Cannabis Security Requirements are subject to non - renewal and
revocation.
K. Enforcement.
1. Public Nuisance. In accordance with Petaluma Municipal Code section 10.15.100, any
violation of these regulations or of Chapter 10.15 of the Petaluma Municipal Code is a
public nuisance.
2. Remedies. The City may seek remedies for any violations of these regulations and /or
Chapter 10.15 of the Petaluma Municipal Code pursuant to any applicable. authorities,
including, but not limited to those contained in Chapter 26 and those contained in Title
1 of the Petaluma Municipal code.
3. Right to Access and Audit.
As a condition of issuance of a commercial cannabis business permit and continued
operations under a commercial cannabis business permit, commercial cannabis permit
holders must:
a) Provide the City, its employees and / or agents full access to enter permitted
premises to inspect business operations and cannabis and cannabis products at the
business premises to ensure compliance with these regulations and Chapter 10.15 of
the Petaluma Municipal Code.
b) Permit the City, its employees and /or agents to review and copy any materials,
books, or records in the permit holder's possession to ensure compliance with these
regulations and Chapter 10.15 of the Petaluma Municipal Code.
Failure or refusal to cooperate with the City inspections and audits in accordance with
this section is, in the absence of any other violations of Chapter 10.15 of the Petaluma
Municipal Code or of these regulations, sufficient grounds for revoking cannabis
business permits.
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ATTACHMENT 2
EFFECTIVE DATE ORDINANCE NO. 2634 N.C.S.
OF ORDINANCE
January 4, 2018
Introduced by Seconded by
Gabe Kearney Teresa Barrett
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA REPEALING AND
REPLACING CHAPTER 10.15, "MEDICAL MARIJUANA," OF THE CITY OF PETALUMA
MUNICIPAL CODE, RETITLING THE CHAPTER "CANNABIS," AND EXTENDING THE CITY'S
CANNABIS REGULATIONS TO MEDICAL AND NON - MEDICAL CANNABIS USES IN THE CITY
WHEREAS, in 1996 the voters of the state of California approved Proposition 215 which
15 was codified as Health and Safety Code Section 11362.5, et seq., and entitled "The
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Compassionate Use Act of 1996" ( "CUA "); and
WHEREAS, the intent of the CUA was to enable persons who are in need of marijuana for
medical purposes to obtain and use it under specified circumstances; and
WHEREAS, on January 1, 2004, Senate Bill 420, known as the "Medical Marijuana
Program" (codified in Health and Safety Code Sections 11362,7 through 11362.85) ( "MMP ")
became effective to clarify the scope of the CUA; and
WHEREAS, the CUA was limited in scope in that it provided a defense from criminal
prosecution under state law for possession and cultivation of marijuana for qualified patients
and their primary caregivers; established a statewide identification program and afforded
qualified patients, persons with identification cards and their primary caregivers an affirmative
defense to certain enumerated criminal sanctions that otherwise applied to transporting,
processing, administering or distributing marijuana; and
WHEREAS, neither the CUA nor the MMP required or imposed an affirmative duty or
mandate upon local governments, such as the City of Petaluma, to allow, authorize or sanction
the establishment and the operation of facilities cultivating, distributing, or processing medical
marijuana.within their boundaries; and
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1 WHEREAS, in 2007 the Petaluma City Council adopted Chapter 10,15 of the Petaluma
2 Municipal Code prohibiting medical rarijuana dispensaries in the City to promote the public
3 health, safety and welfare and protect citizens from impacts associated with medical marijuana
4 dispensaries, including, but not limited to, increased public consumption of marijuana and the
5 potential for increased marijuana DUls, illegal resale of marijuana obtained at low cost from
6 dispensaries, loitering, fraud in obtaining or use of medical marijuana identification cards,
7 robbery, assaults and other crimes, and increased demands for police response resulting from
8 activities at medical marijuana dispensaries reducing the ability of the City's public safety
9 officers to respond to other calls for service; and
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11 WHEREAS, on May 5, 2013, the California Supreme Court issued its opinion in City of
12 Riverside v, Inland Empire Patients Health and Wellness Center, Inc., (2013) 56 Cal,4th 729, which
13 held that neither the CUA nor the MMP expressly or impliedly preempts the authority of California
14 cities and counties, under their traditional land use and police powers, to restrict, limit, or entirely
15 exclude facilities that distribute medical marijuana, and to enforce such policies by nuisance
16 actions; and
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18 WHEREAS, on August 29, 2013, Deputy U,S, Attorney General James Cole issued a
19 memorandum to all federal prosecutors providing guidance on the enforcement of the federal
20 Controlled Substances Act, 21 U;S,C, 801, etseq„ regarding cannabis, indicating that
21 enforcement of state law by state and local law enforcement and regulatory bodies should
22 remain the primary means of addressing marijuana related activity in jurisdictions that have
23 enacted laws legalizing marijuana in some form and that have also implemented strong and
24 effective regulatory and enforcement systems to control the cultivation, distribution, sale and
25 possession of marijuana; and
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27 WHEREAS, on November 26, 2013, the Third District Court of Appeal issued its opinion in
28 Moral v. City of Live Oak, (2013) 221 Cal,AppAth 975, which held that the CUA and the MMP do
29 not preempt a city's police power to prohibit the cultivation of all marijuana within that city; and
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31 WHEREAS, during the 2014/2015 legislative session, the California State Legislature
32 enacted three bills: AB -243, AB- 266, and SB -643 that together established a regulatory scheme
33 governing medical marijuana that was collectively entitled the "Medical Marijuana Regulation
34 and Safety Act" ( "MMRSA "); and
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1 WHEREAS, on December 16, 2014, President Obama signed an omnibus spending bill,
2 including a budget rider, referred to as the Rohrbacher -Farr amendment, which prohibited the
3 U,S, Justice Department from using federally- appropriated funds to prosecute medical
4 marijuana use that complied with state law in states that had legalized medical marijuana; and
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6 WHEREAS, on December 1, 2015, the Fifth District Court of Appeal issued its opinion in
7 Kirby v, County of Fresno, (2015) 242 Cal,App,41h 940, which upheld a county ordinance banning
8 medical marijuana dispensaries, cultivation, and storage, but invalidated the ordinance's
9 classification of local medical marijuana cultivation as a misdemeanor, holding that section
10 1 13662,71 of the California Health and Safety Code, a provision of the MMP, preempts local
11 criminalization of medical marijuana cultivation; and
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13 WHEREAS, although the court in Kirby invalidated on preemption grounds the local
14 criminalization of medical marijuana cultivation as a misdemeanor, the court noted that local
15 prosecution of the failure to abate a public nuisance involving medical marijuana cultivation is
16 not preempted, because the Legislature recognizes the failure to abate a public nuisance after
17 notice as a separate crime; and
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19 WHEREAS, in January, 2016, the City Council adopted amendments to Chapter 10,15 of
20 the Petaluma Municipal Code, partly in response to the MMRSA; to prohibit commercial
21 cannabis activity in the City; to prohibit marijuana cultivation in the City (except for limited
22 indoor and outdoor cultivation by qualified patients and primary caregivers in residential areas,
23 subject to limitations intended to avoid nuisance conditions); to restrict medical marijuana
24 delivery in the City; prohibit granting of entitlements for marijuana uses in the City; and to
25 declare violations of the chapter to be a public nuisance; and
26
27 WHEREAS, in United States v, McIntosh, (2016) 833 Fad 1163, filed August 16, 2016, the
28 Ninth Circuit Court of appeals construed the Rohrbacher -Farr budget rider as prohibiting the U. S.
29 Department of Justice from spending funds from relevant appropriations acts for the prosecution
30 of individuals who engaged in conduct permitted by state medical marijuana laws and who
31 fully complied with such laws; and
32
33 WHEREAS, in November 2016, California voters approved the Control, Regulate and Tax
34 Adult Use of Marijuana Act, referred to in ballot materials as the Adult Use of Marijuana Act
35 ( "AUMA"), which established a regulatory scheme for nonmedical marijuana similar to that
36 established for medical marijuana under the MMRSA; and
1 WHEREAS, following its adoption by California voters, the AUMA was codified in various
2 provisions of state law, including in Article 2 entitled "Cannabis" in the Uniform Controlled
3 Substances Act within the California Health and Safety Code, and in Division 10 entitled the
4 "Medicinal and Adult -Use Cannabis Regulation and Safety Act" of the California Business and
5 Professions Code; and
6
7 WHEREAS, the AUMA decriminalized for purposes of state law, subject to specified
8 restrictions, certain specified nonmedical cannabis uses pursuant to California Health and Safety
9 Code section 1 1362,1, including: possession, processing, transporting, purchasing, obtaining and
10 giving away to persons 21 years old or older, without compensation, not more than 28.5 grams
11 of non - concentrated cannabis or not more than 8 grams of concentrated cannabis, including
12 cannabis contained in cannabis products; possessing, planting, cultivating, harvesting, drying or
13 processing not more than six living cannabis plants and possessing the cannabis produced by
14 the plants; smoking or ingesting cannabis or cannabis products, and possessing, transporting,
15 purchasing, obtaining, using, manufacturing, or giving away to persons 21 years of age or older
16 without compensation cannabis accessories,; and
17
18 WHEREAS, in accordance with California Health and Safety Code section 11362,2,
19 subdivision (a), the personal cultivation of cannabis permitted under the AUMA must be in
20 accordance with reasonable local regulations; must ensure that living plants and cannabis they
21 produce in excess of 28.5 grams are kept within a private residence or upon the grounds of a
22 private residence in a locked space not visible from a, public place; and cannot exceed six
23 living plants cultivated, harvested, dried or processed within a single private residence at one
24 time; and
25
26 WHEREAS, in accordance with California Health and Safety Code section 11362,2,
27 subdivision (b), paragraphs (1) and (2), the AUMA permits local agencies to impose reasonable
28 regulations on personal cannabis cultivation and processing, so long as such regulations are not
29 a complete prohibition on such activity within a private residence or an accessory structure to a
30 private residence that is fully enclosed and secure; and
31
32 WHEREAS, in accordance with California Business and Professions Code section 26080,
33 subdivision (b), the AUMA prohibits local jurisdictions from preventing those that are licensed
34 under the AUMA from transporting cannabis or cannabis products on public roads; and
35
1 WHEREAS, in accordance with California Health and Safety Code section 11 362.2,
2 subdivision (b), paragraph (3), the AUMA authorizes local agencies to completely ban outdoor
3 cultivation of cannabis on the grounds of private residences, unless and until the California
4 Attorney General determines that adult use of cannabis is lawful under federal law, and
5
6 WHEREAS, in accordance with California Health and Safety Code section 1 1362.45,
7 subdivisions (f) and (g), the AUMA permits public and private employers to maintain drug and
8 alcohol -free workplaces, to prohibit cannabis use by employees, and to restrict or prohibit
9 cannabis activity in buildings owned, leased or occupied by a local agency; and
10
11 WHEREAS, in accordance with California Business and Professions Code section 26200,
12 subdivision (a), nothing in the AUMA supersedes or limits the authority of a local jurisdiction to
13 regulate or prohibit within the local jurisdiction the establishment or operation of cannabis
14 businesses that are subject to state license requirements under the AUMA; and
15
16 WHEREAS, cannabis remains an illegal substance under the Federal Controlled
17 Substances Act, 21 U.S,C. 801, et seq., which makes it unlawful for any person to cultivate,
18 manufacture, distribute, dispense, or possess with intent to manufacture, distribute or dispense
19 cannabis for any reason, even though state law decriminalizes under specified state statutes
20 specified use of cannabis by specified persons; and
21
22 WHEREAS, the Rohrbacher -Farr Amendment, which prohibits the U,S. Justice Department
23 from using federally- appropriated funds to prosecute medical marijuana use that complies with
24 state law in states that have legalized medical marijuana, has been extended most recently in
25 the spending bill President Trump signed on May 5, 2017, and remains in effect; and
26
27 WHEREAS, the August 29, 2013 memorandum issued by Deputy U.S. Attorney General
28 Jarnes Cole has not been rescinded and remains in effect directing that enforcement of state
29 law by state and local law enforcement and regulatory bodies should remain the primary
30 means of addressing marijuana related activity in jurisdictions that have enacted laws legalizing
31 marijuana in some form and that have also implemented strong and effective regulatory and
32 enforcement systerns to control the cultivation, distribution, sale and possession of marijuana;
33 and
34
35 WHEREAS, the City Council has held workshops and discussed potential updates to the
36 City's cannabis regulations in response to the AUMA on June 26, 2017 and on October 2, 2017,
I at which workshops the City Council received comments from various stakeholders and
2 interested parties, and provided City staff policy direction; and
3
4 WHEREAS, the City Council considered a new draft ordinance entitled "Cannabis"
5 intended to replace Chapter 10,15 in the Petaluma Municipal Code at the November 6, 2017
6 City Council meeting, at which meeting the City Council discussed comments on the draft
7 ordinance received from community members and other stakeholders and gave staff further
8 direction regarding preparation of an ordinance to replace existing Chapter 10,15 in the
9 Petaluma Municipal Code; and
10
11 WHEREAS, the City Council's direction to staff regarding adoption of local cannabis
12 regulations following enactment of the AUMA reflects a dual focus on recognizing and
13 respecting the will of the California voters in approving the AUMA, through adoption of less
14 restrictive local cannabis regulations, while at the same time promoting the public health, safety
15 and welfare of the Petaluma community through strong and effective local regulatory and
16 enforcement systems to, in conjunction with state law, control the cultivation, distribution, sale
17 and possession of cannabis in the City; and
18
19 FINDINGS
20
21 WHEREAS, the City of Petaluma Police Department, City residents and other public
22 entities have reported adverse impacts from the outdoor cultivation of cannabis within the City,
23 including offensive odors, increased risk of trespassing and burglary, and acts of violence in
24 connection with the commission of such crimes or the occupants' attempts to prevent such
25 crimes; and
26
27 WHEREAS, the strong odor of cannabis plants, which increases as the plants mature, is
28 offensive to many individuals and creates an attractive nuisance, alerting people to the
29 location of valuable cannabis plants and creating an increased risk of crime; and
30
31 WHEREAS, Petaluma has experienced structure fires and building damage threatening
32 the quality and safety of City neighborhoods as a result of indoor cannabis cultivation within the
33 City, with 7 such incidents occurring between December 2010 and May 2015, and a total of 33
34 structure fires within the Sonoma County area attributed to illegal indoor cannabis cultivation
35 operations; and
36
1 WHEREAS, to protect the public health, safety, and welfare, it is the desire of the City
2 Council to replace Chapter 10.15 of the City of Petaluma Municipal Code prohibiting medical
3 marijuana dispensaries and commercial marijuana activity, and limiting medical marijuana
4 cultivation, and delivery of marijuana within the City, while preserving access of qualified
5 patients and primary caregivers to medical cannabis, with a new chapter 10,15 entitled
6 "Cannabis" making medical and nonmedical cannabis subject to the City's cannabis
7 regulations in accordance with the City's general police power pursuant to Article XI, Section 7
8 of the California Constitution and the authority for local cannabis regulations contained in the
9 AUMA; and
10
11 WHEREAS, mindful of the fact that cannabis possession and use is prohibited under
12 federal law and decriminalized under state law, it is the Council's intention that nothing in this
13 chapter shall be construed, in any way, to expand the rights of anyone to use or possess
14 cannabis under state law, or to engage in any public nuisance; and
15
16 WHEREAS, for purposes of compliance with the California Environmental Quality Act
17 ( "CEQA ") and the CEQA Guidelines, the City Council finds that new Petaluma Municipal Code
18 Chapter 10,15 will result in negligible environmental impacts, if any, because a) the exceptions in
19 Section 10,15,040 for manufacture and sale of topical or edible cannabis products, cannabis
20 testing laboratories and cannabis delivery-only sales are, pursuant to that section, subject to
21 granting of a license, permit or other authorization or notice issued by an authorized city official,
22 which discretionary approval will be subject to CEQA review for each such proposed use; and
23 b) the revisions to the City's cannabis cultivation regulations pursuant to Section 10. 15,050 are
24 minor and intended only to harmonize the regulations with the AUMA, with negligible
25 anticipated environmental impacts; and
26
27 WHEREAS, in view of the negligible environmental impacts anticipated from new Chapter
28 10,15 (that will not be subject to subsequent CEQA review), this ordinance is exempt from CEQA
29 pursuant to Section 15061(b) (3) of the CEQA Guidelines because there is no possibility that the
30 activity may have a significant impact on the environment, as well as pursuant to Section 15301
31 of the CEQA Guidelines, which applies to the operation, repair maintenance, permitting, and
32 licensing or minor alteration of existing public or private structures, facilities, or mechanical
33 equipment involving negligible or no expansion of use beyond that existing at the time of the
34 lead agency's determination, and pursuant to Section 15303 of the CEQA Guidelines, which
35 applies to construction and location of limited numbers of new, small facilities or structures,
36 installation of small new equipment and facilities in small structures, and the conversion of
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existing small structures from one use to another where only minor modifications are made in the
exterior of the structure;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
FOLLOWS:
Section 1: Chapter 10.15, Entitled "Medical Marijuana," of the Petaluma Municipal Code, is
hereby repealed in its entirety.
Section 2: The above recitals are hereby declared to be true and correct and are
Incorporated into this ordinance by this reference.
Section 3: A New Chapter 10.15, Entitled "Cannabis," is hereby added to the Petaluma
Municipal Code, to read as follows:
CHAPTER 10.15
CANNABIS
Section 10,15.010 Purpose.
The purpose of this chapter is to recognize and respect the will of the California voters in
approving in November, 2016, Proposition 64, the Control, Regulate and Tax Adult Use of
Marijuana Act, referred to as the Adult Use of Marijuana Act ( "AUMA "), which legalized,
subject to certain restrictions, specified nonmedical cannabis uses for purposes of state
law, through adoption of less restrictive local cannabis regulations, while at the same
time promoting the public health, safety and welfare of the Petaluma community by:
A. Protecting citizens from the secondary impacts associated with cannabis
dispensaries and commercial cannabis activity, including, but not limited to, increased
public consumption of cannabis and the potential for increased cannabis DUls, illegal
resale of cannabis obtained at low cost from dispensaries, loitering, robbery, assaults,
and other crimes;
B. Protecting citizens from secondary impacts associated with commercial cannabis
activity such as cannabis cultivation, including, but not limited to, electrical fires and
ignition of chemical substances utilized in the cultivation process, crimes occurring at
grow sites, and neighborhood concerns regarding odors, late night traffic, and related
nuisances;
C. Protecting citizens from secondary impacts of cannabis delivery, including, but
not limited to, delivery during nighttime hours and delivery by minors;
D. Preventing increased demands for police response resulting from activities at
cannabis dispensaries and cultivation sites, commercial cannabis activity and cannabis
delivery and thereby avoiding reduction in the ability of the city's public safety officers to
respond to other calls for service; and
E. Maintaining the access of qualified patients and primary caregivers to medical
cannabis and medical cannabis products,
Section 10,15.020 Definitions
For purposes of this chapter, the following terms are defined as follows;
A. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis
indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin,
whether crude or purified, extracted from any part of the plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin, as
defined in California Business and Professions Code section 26001, subdivision (f), as that
section and subdivision may be amended or interpreted by the California courts or
superseded by any successor statute, "Cannabis" also means the separated resin,
whether crude or purified, obtained from cannabis. "Cannabis" does not include.fhe
mature stalks of the plant, fiber produced from the stalks, oil or cake made from the
seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake,
or the sterilized seed of the plant which is incapable of germination. "Cannabis" does not
mean "industrial hemp" as defined by Section 1 1018.5 of the California Health and
Safety Code, as that section may be amended or interpreted by the California courts or
superseded by any successor statute. "Cannabis" includes "medical cannabis."
B, "Cannabis concentrate" rneans cannabis that has undergone a process to
concentrate one or more active cannabinoids, thereby increasing the product's
potency, in accordance with the definition in California Business and Professions Code
section 26001, subdivision (h), as that section and subdivision may be amended or
interpreted by the California courts or superseded by any successor statute,
C. "Cannabis products" rneans cannabis that has undergone a process whereby
the plant material has been transformed into a concentrate, including, but not limited to,
concentrated cannabis, or an edible or topical product containing marijuana or
concentrated cannabis and other ingredients in accordance with the definition in
California Health and Safety Code section 11018,1, as that section may be amended or
interpreted by the California courts or superseded by any successor statute,
D, "Commercial cannabis activity" means the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, labeling, transportation, distribution,
delivery or sale of cannabis and cannabis products in accordance with the definition in
California Business and Professions Code Section 26001, subdivision (k), as that section
and subdivision may be arnended or interpreted by the California courts or superseded
by any successor statute,
E, "Cultivation" means any activity involving the planting, growing, harvesting,
drying, curing, grading, or trimming of cannabis, in accordance with the definition in
California Business and Professions Code Section 26001, subdivision (m), as that section
and subdivision may be amended or interpreted by the California courts or superseded
by any successor statute,
F. "Customer" means a natural person 21 years of age or older in accordance with
the definition in California Business and Professions Code Section 26001, subdivision (n), as
that section and subdivision may be amended or interpreted by the California courts or
superseded by any successor statute,
G. "Delivery" means the commercial transfer of cannabis or cannabis products to a
custorner and includes the use by a retailer of any technology platform in accordance
with the definition in California Business and Professions Code section 26001, subdivision
(p), as that section and subdivision may be amended or interpreted by the California
courts or superseded by any successor statute,
H. "Dispensary" means a facility where medical cannabis, medical cannabis
products, or devices for the use of medical cannabis or medical cannabis products are
offered, either individually, or in any combination, for retail sale at that location, as well
as an establishment that delivers, pursuant to express authorization by local ordinance,
medical cannabis and medical cannabis products as part of a retail sale, Dispensary
does not include the following uses, so long as the location of such uses is otherwise
regulated by and strictly complies with this code and other applicable law, including
California Health and Safety Code Section 11362.5, known as the CUA, and California
Health and Safety Code Section 11362.7 and following, known as the MMP, as such
sections may be amended or interpreted by the California courts or superseded by any
successor statute;
1. A clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety
Code.
2, A health care facility licensed pursuant to Chapter 2 of Division 2 of the Health
and Safety Code.
3. A residential care facility for persons with chronic life- threatening illness
licensed pursuant to Chapter 3,01 of Division 2 of the Health and Safety Code,
4. A residential care facility for the elderly licensed pursuant to Chapter 3.2 of
Division 2 of the Health and Safety Code.
5. The delivery, administration or provision of medical cannabis by a designated
primary caregiver to the qualified patient of the primary caregiver or to the
person with an identification card who has designated the individual as a
primary caregiver at the primary residence of the qualified patient or person
with an identification card who has designated the individual as a primary
caregiver.
I. "Fully enclosed and secure structure" rneans a code compliant space within a
building, greenhouse or other structure which has a complete roof enclosure supported
by connecting walls extending from the ground to the roof, which is secure against
unauthorized entry, provides complete visual screening, and which is accessible only
through one or more locking doors.
J. "Licensee" means any person holding a license under Division 10, entitled
"Cannabis," of the California Business and Professions Code, and includes the holder of a
testing laboratory license, in accordance with the definition in California Business and
Professions code section 26001, subdivision (z), as that section and subdivision may be
amended or interpreted by the California courts or superseded by any successor statute.
K. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or
prepare a cannabis product, in accordance with the definition in California Business and
1 Professions Code section 26001, subdivision (ag), as that section and subdivision may be
2 amended or interpreted by the California courts or superseded by any successor statute.
3
4 L. "Manufacturer" means a licensee that conducts the production, preparation,
5 propagation, or compounding of cannabis or cannabis products either directly or
6 indirectly by extraction methods, or independently by means of chemical synthesis, or by
7 a combination of extraction and chemical synthesis at a fixed location that packages or
8 repackages marijuana or marijuana products or labels or re- labels its container, in
9 accordance with the definition in California Business and Professions Code section 26001,
10 subdivision (ah), as that section and subdivision may be amended or interpreted by the
11 California courts or superseded by any successor statute.
12
13 M. "Medical cannabis" or "medical cannabis product" means cannabis or a
14 cannabis product, respectively, intended to be sold for use pursuant to the
15 Compassionate Use Act of 1996 (Proposition 215), found at section 1 1362.5 of the
16 California Health and Safety Code, by a medicinal cannabis patient in California who
17 possesses a physician's recommendation, in accordance with the definition in California
18 Business and Professions Code section 26001, subdivision (ai), as that section and
19 subdivision may be amended or interpreted by the California courts or superseded by
20 any successor statute.
21
22 N. "Primary caregiver" shall have the same definition as set forth in California Health
23 and Safety Code Section 1 1362.7, subdivision (d), as that section and subsection may be
24 amended or interpreted by the California courts, including but not limited, to the
25 California Supreme Court case of People v. Mentch (2008) 45 Cal. 4th 274, or superseded
26 by any successor statute.
IN
28 O. , "Qualified patient" shall have the same definition as set forth in California Health
29 and Safety Code Section 11362.7, subdivision (f), as that section and subsection may be
30 amended or interpreted by the California courts or superseded by any successor statute.
31
32 P. "Private residence" means a house, an apartment unit, a mobile home, or other
33 similar dwelling, in accordance with the definition in California Health and Safety Code
34 section 11362,2, subdivision (b), paragraph (5), as that section, subdivision and
35 paragraph may be amended or interpreted by the California courts or superseded by
36 any successor statute.
Q, "Sell," "sale," and "to sell" rnean any transaction whereby, for any consideration,
title to cannabis is transferred from one person to another, and includes the delivery of
cannabis or cannabis products pursuant to an order placed for the purchase of the
same and soliciting or receiving an order for the same, but does not include the return of
cannabis or cannabis products by a licensee to the licensee from whom the cannabis or
cannabis product was purchased, in accordance with the definition in California
Business and Professions Code section 26001, subdivision (as), as that section and
subdivision may be amended or interpreted by the California courts or superseded by
any successor statute,
R, "Testing laboratory" means a laboratory, facility or entity in the state that offers or
performs tests of cannabis or cannabis products and that is both of the following;
accredited by an accrediting body that is independent from all other persons involved in
cormercial cannabis activity in the state and licensed by the Bureau of Cannabis
Control, in accordance with the definition in California Business and Professions Code
section 26001, subdivision (at), as that section and subdivision may be amended or
interpreted by the California courts or superseded by any successor statute.
S. "Volatile solvent" means a solvent that is or produces a flammable gas or vapor
that, when present in the air in sufficient quantities, will create explosive or ignitable
mixtures, in accordance with the definition in California Health and Safety Code section
113623, subdivision (b), paragraph (3), as that section, subdivision and paragraph may
be amended or interpreted by the California courts or superseded by any successor
statute.
Section 10,15.030 Prohibition of Dispensaries
It is unlawful for any person to engage in, conduct or carry on, or to permit to be
engaged in, conducted or carried on, in the City of Petaluma, the operation of a
dispensary, except for dispensaries that qualify for the exception in section 10,15,040(D),
Section 10,15,040 Commercial Cannabis Activity
A. It is unlawful for any person to engage in, conduct, or carry on, or to permit to be
engaged in, conducted or carried on, in the City of Petaluma, commercial cannabis
activity, other than the commercial cannabis activity specified in paragraphs B through
D in this section, The exceptions in paragraphs B through D shall only apply; 1) while and
to the extent the activity is conducted pursuant to and in accordance with a current,
valid, unexpired, unrevoked, fully -paid, license, permit, or other authorization or notice
issued by an authorized city official, and pursuant to and in accordance with all other
applicable state and local laws and regulations, including, but not limited to, the
regulations adopted or promulgated pursuant to section 10,15,090; and 2) to
commercial cannabis activity conducted in areas of the city where such uses are
permitted in accordance with the city's zoning regulations,
B. Manufacture and only business to business (non - retail) sale of topical or edible
cannabis products using cannabis infusions, infusion processes, or cannabis
concentrates, but excluding manufacture of cannabis products involving volatile
solvents, 'and excluding repackaging cannabis or cannabis products or re- labeling
cannabis or cannabis product containers;
C. Testing laboratories;
D. Retail sale of cannabis and cannabis products using a delivery-only method in
accordance with section 10.15.060, at a maximum of two different locations in the city,
with no sale of cannabis or cannabis products to customers, primary care givers or
qualified patients occurring at the business location, no customers, primary care givers or
qualified patients permitted at the business location at any time, and no signage at the
business location or on the delivery vehicles indicating the presence of cannabis or
cannabis products or that the seller sells cannabis or cannabis products.
Section 10.15,050 Cannabis Cultivation
It is unlawful for any person to engage in, conduct or carry on, or to permit to be
engaged in, conducted or carried on, in the City of Petaluma, the cultivation of
cannabis, other than the cultivation of cannabis in accordance with and as specified in
paragraphs A and B in this section. The exceptions in paragraphs A and B are not
subject to, and do not require, issuance of a license, permit, or other authorization or
notice issued by an authorized city official,
A. Indoor cultivation of not more than six living cannabis plants in a private '
residence, or a lesser number if both indoor cultivation pursuant to this paragraph A and
outdoor cultivation pursuant to paragraph B of this section is occurring at the private
residence, such that the total number of living cannabis plants at the private residence,
1 including indoor and outdoor cultivation, does not exceed a total of six living cannabis
2 plants; where the cultivation area does not exceed 50% or 100 square feet of the non -
3 living or garage area of the private residence; does not displace any required on -site
4 parking; is within a fully - enclosed and secure structure with no visual or olfactory
5 evidence of cultivation detectable from the public right of way or other private property;
6 does not utilize lighting that exceeds 1,200 watts; does not require the use of an electric
7 generator; and does not involve the use of volatile solvents; and
8
9 B. Outdoor cultivation on the grounds of a private residence, but only where less
10 than the six living cannabis plants permitted pursuant to paragraph A are being
11 cultivated within a fully- enclosed and secure structure, such that the total number of
12 living cannabis plants at the private residence, including indoor and outdoor cultivation,
13 does not exceed a total of six living cannabis plants; with no visual or olfactory evidence
14 of cultivation detectable from the public right of way or other private property; and
15 where the outdoor cultivation does not utilize lighting that exceeds 1,200 watts, does not
16 require the use of an electric generator, and does not involve the use of volatile solvents.
17
18 Section 10.15.060 Cannabis Delivery
19 Subject to the requirements of California Business and Professions Code section 26080,
20 subdivision (b), which prohibits local jurisdictions from preventing those that are licensed
21 under the AUMA from transporting cannabis or cannabis products on public roads within
22 the jurisdiction, as that section and subdivision may be amended or interpreted by the
23 California courts or superseded by any successor statute, it is unlawful for any person to
24 engage in, conduct or carry on, or to permit to be engaged in, conducted or carried on,
25 in the City of Petaluma, the delivery of cannabis; except for delivery of cannabis;
26
27 A, That qualifies for the exception in section 10,15.040(D); and,
28
29 B. Delivery of medical cannabis to qualified patients and primary care givers in the
30 City of Petaluma from cannabis sellers lawfully operating outside the City of Petaluma in
31 accordance with all applicable state and local laws.
32
33 For cannabis delivery to qualify for the exceptions in paragraphs A or B of this section,
34 such delivery must 1) be carried out by a person at least 21 years of age; and 2) occur
35 between the hours of 8:00 a.m, and 8;00 p.m.
36
1 Section 10.15.070 Cannabis Entitlements
2 No cannabis dispensary, commercial cannabis activity or cannabis delivery operation,
3 (other than commercial cannabis activity or cannabis dispensary or delivery operations
4 that qualify for one or more of the exceptions specified in paragraphs B through D of
5 section 10.15.040), or cannabis cultivation, however described by the applicant, will be
6 eligible for or be issued any license, permit, or other authorization, notice or other
7 entitlement to operate in the city, or have any such entitlement renewed, including, but
8 not limited to, any business license or home occupation permit, and any such
9 application shall be denied citing this section.
10
11 Section 10.15,080 Medical Cannabis
12 No provision of this chapter is to be construed as prohibiting qualified patients and
13 primary care givers in the City of Petaluma from cultivating medical cannabis, or as
14 prohibiting sale or delivery of medical cannabis or medical cannabis products to
15 qualified patients or primary care givers in the City of Petaluma, in accordance with all
16 applicable state and local laws and regulations, including the requirements of this
17 chapter and any regulations promulgated hereunder.
18
19 Section 10, 15,090 Regulations
20 The City Council shall, by duly adopted resolution, adopt regulations, or authorize the
21 City Manager to promulgate regulations, intended to implement the requirements of this
22 chapter in accordance all applicable provisions of the city charter, this chapter, the
23 CUA, the MMP, the AUMA, and other applicable law. The City Council shall review this
24 chapter and any regulations adopted or promulgated pursuant to this section from time
25 to time as necessary to ensure effective implementation of this chapter and protection
26 of the public health, safety and welfare.
27
28 Section 10.15.100 Prohibited Cannabis Activities a Public Nuisance, Any cannabis
29 dispensary, commercial cannabis activity, cannabis cultivation, cannabis delivery or
30 other cannabis use or activity caused or permitted to exist in the city in violation of any
31 provision of this chapter or any of the regulations adopted or promulgated thereunder
32 shall be and is hereby declared a public nuisance. Violations of this chapter may be
33 enforced by any applicable laws or ordinances, including, but not limited to, chapter
34 1.10 of this code,
35
I Section 3: The City Council finds that adoption of this ordinance is exempt from the
2 California Environmental Quality Act ( "CEQA "), pursuant to Section 15061(b)(3) of the CEQA
3 Guidelines (Title 14, Chapter 3 of the California Code of Regulations) because there is no
4 possibility that the activity may have a significant impact on the environment as well as pursuant
5 to Section 15301 of the CEQA Guidelines, which applies to the operation, repair maintenance,
6 permitting, and licensing or minor alteration of existing public or private structures, facilities, or
7 mechanical equipment involving negligible or no expansion of use beyond that existing at the
8 time of the lead agency's determination, and pursuant to Section 15303 of the CEQA
9 Guidelines, which applies to construction and location of limited numbers of new, small facilities
10 or structures, installation of small new equipment and facilities in small structures, and the
11 conversion of existing small structures from one use to another where only minor modifications
12 are made in the exterior of the structure,
1,3
14 Section 4: If any section, subsection, sentence, clause, phrase or word of this ordinance is for
15 any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent
16 jurisdiction or preempted by state or federal legislation, such decision or legislation shall not
17 affect the validity of the remaining portions of this ordinance. The City Council of the City of
18 Petaluma hereby declares that it would have passed and adopted this ordinance and each
19 and all provisions thereof irrespective of the fact that any one or more of said provisions be
20 declared unconstitutional, unlawful or otherwise invalid.
21
22 Section 5: The City Clerk is hereby directed to publish or post this ordinance or a synopsis for
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the period and in the manner provided by the City Charter and any other applicable law,
INTRODUCED, and ordered posted /published, this 131h day of November 2017,
ADOPTED this 41h day of December 2017, by the following vote:
Ayes:
Albertson, Vice Mayor Barrett, Healy, Kearney, King
Noes:
Miller
Abstain:
None
Absent:
Mayor Glass
Teresa Barrett, Vice Mayor
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ATTEST:
Claire Cooper, City Clerk
APPROVED AS TO FORM:
Eric W. Danly, City, ,Attorney
■
1 � �
CALIFORNIA
ATTACHMENT 3
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PDE_17 -231
KIM
cdfa
CALIFORNIA DEPARTMENT
FOOD & AGRICULTURE
In June 2017, California Governor Jerry Brown signed into law the Medicinal and Adult -Use
Cannabis Regulation and Safety Act (MAUCRSA), which creates one regulatory system for
both medicinal and adult -use (recreational) cannabis. Under MAUCRSA, the California
Department of Food and Agriculture (CDFA) was designated as the state agency responsible
for issuing licenses to commercial cannabis cultivators in California.
- -
CDFA will be issuing temporary licenses that will go into effect on January 1, 2018. These
temporary licenses will be valid for only 120 days, and two 90 -day extensions will be available
only if the temporary licensee has applied for an annual license. Temporary licenses will not
be available as of.January 1, 2019. Applications for temporary and annual commercial
cannabis cultivation licenses are anticipated to be available in December 2017 via CDFA's
CalCannabis Cultivation Licensing website at calcannabis.cdfa.ca.gov.
Adult Use (Recreational) OR Medicinal
1) CULTIVATORS: Numerous license types for commercial cultivators, ranging from specialty
cottage to medium - sized grows
2) NURSERIES: Cultivation of cannabis solely as a nursery, including cloning and seed
propagation
3) PROCESSORS: A site that conducts only trimming, drying, curing, grading, or packaging
of cannabis and nonmanufactured cannabis products
For more information, please visit::
calcannabis.cdfa.ca.gov
OWNER. "Owner" means any of the following:
1) A person with an aggregate ownership interest of 20 percent or more in the person
applying for a license or a licensee, unless the interest is solely a security, lien,
encumbrance
2) The chief executive officer of a nonprofit or other entity
3) A member of the board of directors of a nonprofit or other entity
4) An individual who will be participating in the direction, control, or management of the
person applying for a license
An owner who is an individual participating in the direction, control, or management of
the commercial cannabis business includes any of the following:
1) A partner of a commercial cannabis business that is organized as a partnership
2) A member of a limited liability company of a commercial cannabis business that is
organized as a limited liability company
3) An officer or director of a commercial cannabis business that is organized as a corporation
CRIMINAL BACKGROUND. Applicants will have to get fingerprinting via the Department of
Justice's Live Scan service and undergo a criminal history check to determine if any
convictions are substantially related to their commercial cannabis cultivation license.
Substantially related convictions may prevent the issuance of a license.
LOCAL APPROVAL. Applicants may submit, as a part of their application, proof of approval by
their local jurisdiction (city or county or other jurisdiction) for commercial cannabis activity.
CDFA will be verifying the validity of the authorization with the local jurisdiction identified.
ENVIRONMENTAL PROTECTION. Applicants will be required to demonstrate California
Environmental Quality Act (CEQA) compliance. This may be achieved by a local jurisdiction
completing a site - specific analysis or the applicant providing a CEQA document to be
certified by the lead agency. Applicants will also be required to comply with specific
conditions imposed by the State Water Resources Control Board and Department of Fish
and Wildlife.
The location must be at least 600 feet from sensitive sites, such as a school, unless otherwise
authorized by local ordinance.
Tobacco and alcohol sales are prohibited at licensed commercial cannabis premises. J
The following documents will need to be submitted with a cannabis cultivation licensing
application:
■ Lease agreement, property title, or deed indicating a right to occupy the property
■ Business- formation documents filed with the California Secretary of State's office
■ California State Water Resources Control Board permits and verification of the
applicant's water source
■ California Department of Fish and Wildlife's 1602 Lake or Streambed permit or
waiver of needed permit
■ California Department of Toxic Substances Control's hazardous - materials record
search via the EnviroStor data - management system
• California Department of Tax and Fee Administration seller's permit
• Labor Peace Agreement if there are more than 20 employees
• Surety bond valued at $5,000
• California Department of Justice fingerprinting via its Live Scan service for each owner
• Proof of local jurisdiction CEQA compliance or additional CEQA site - specific analysis
• . •
CDFA will not issue licenses to applicants in local jurisdictions where cannabis cultivation is
banned.
• LTETUMM
If the applicant provides a local license, permit, or other authorization, CDFA will contact the
local jurisdiction to verify the information and will allow at least 10 days for the jurisdiction to
respond before issuing the license.
If an applicant for an annual license does not provide a local license, permit, or other
authorization, CDFA will contact the local jurisdiction to verify that issuing the license would
not violate a local ordinance or regulation. After 60 days, if there is no acknowledgement by
the local jurisdiction, CDFA shall presume the applicant is in compliance and may issue a
license.
M
Priority application review will be provided for annual licenses only. To be eligible, an
applicant must be able to demonstrate whether his or her business was in operation and
in good standing with the local jurisdiction by September 1, 2016.
Compliance = nsing Appro
TRACK -AND -TRACE SYSTEM. Applicants will have five business days to register for a state -
mandated track - and -trace training session after receiving notice that the application for
licensure has been received and approved by CDFA. Training will be provided online and may
be provided at various locations. Licensees will have 30 business days to move all inventory
into the system after receipt of unique identifiers.
INSPECTIONS. CDFA will conduct audits and inspections of licensees to ensure compliance
with license requirements.
If CDFA determines a licensee is operating out of compliance with statutory or regulatory
requirements, CDFA may work with the licensee to establish a corrective action plan to
correct the documented noncompliance. However, CDFA may also issue a fine or suspend or
revoke the license.
• -
For those interested in becoming licensed for, other commercial (non - cultivation) cannabis
activities, please contact either the Bureau of Cannabis Control (Bureau) or the Manufactured
Cannabis Safety Branch (MCSB) —and what each agency regulates is shown in this diagram:
CULTIVATION MANUFACTURING DISTRIBUTION TESTING RETAIL MICROBUSINESS
CalCannabis MCSB Bureau Bureau Bureau Bureau
Cc o
d This graphic illustrates the movement of cannabis and cannabis products through the three state agencies responsible for regulating cannabis.
Additional information on all three of California's licensing authorities— CalCannabis, the
Bureau, and MCSB —is available on the California Cannabis Portal at cannabis.ca.gov.
To support a smooth transition of businesses into a newly regulated market, beginning
January 1, 2018, and before July 1, 2018, licensees may do the following:
■ Conduct business with other licensees regardless of the M (for medicinal) or A (for
adult use /recreational) designation on their licenses.
■ Transport cannabis and cannabis products that do not meet the labeling requirements
(prescribed by MAUCRSA or the California Department of Public Health) if a sticker
with the appropriate warning statement is affixed.
• Sell cannabis and cannabis products held in inventory that are not in child- resistant
packaging if the retailer places them in child- resistant packaging at the time of sale.
• Sell cannabis products that do not meet the THC limits per package established by
the California Department of Public Health.
• Sell and transport cannabis products that have not undergone laboratory testing if
a label stating they have not been tested is affixed to each package containing the
cannabis products prior to transport by a distributor —or prior to sale if held by a
retailer.
• Individually package and sell dried flower held in inventory by a retailer at the time
of licensure.
■ Cannabis and cannabis products held in inventory by a retailer that do not meet
the requirements set by the California Department of Public Health for ingredients
or appearance may be sold by a retailer.
Cannabis waste must be contained in a secured waste receptacle or secured area on
the licensed premises.
Licensees may not sell cannabis waste and must comply with all applicable waste -
management laws.
The California Department of Public Health (CDPH) is one of three state licensing authorities charged with licensing and
regulating commercial cannabis activity in California. CDPH is responsible for regulation of the manufacturing component
of the industry, which it will do through the Manufactured Cannabis Safety Branch.
In November 2017, CDPH released Emergency Regulations that outline the standards and licensing procedures for both
medicinal and adult -use commercial cannabis manufacturing and products. These replace the medicinal regulations
released in April 2017 developed in response to previous versions of state law.
Key C__ npne..F of Cannabis Manufacturing Emergency Regulations
Temporary Licenses
CDPH will issue temporary licenses that allow a business to engage in commercial cannabis activity. Once issued, these
licenses will be valid for 120 days and may be extended for additional periods of 90 days, if the business has submitted a
complete annual license application. The application will be available on the CDPH website and can be submitted by mail
or email. City or county authorization to conduct commercial cannabis activity must be submitted with the temporary
license application. Once the application is received, CDPH will contact the city or county to verify the local authorization,
and the office will have 10 days to respond. There is no fee for the temporary license.
Annual Licenses
Applications for annual licenses will be accepted through an online licensing system that will launch in December 2017.
This application will require information on the business, owners and financial interest holders, and operating premises, as
well as descriptions of procedures for waste disposal, inventory and quality control, transportation and security. Businesses
in operation under the Compassionate Use Act prior to September 1, 2016, will receive priority application review.
Applicants must be in compliance with city or county ordinances. During the application review process, CDPH will contact
the city or county to verify the local authorization. If the applicant does not provide a copy of their local authorization, the
local office will have 60 days to respond. If the applicant includes a copy of their local authorization with their application,
the local office will have 10 days to respond.
License Categories & Types
Anyone conducting commercial cannabis manufacturing must obtain a license from CDPH. Each license issued will have
one category and one type.
The two license categories are:
A-License
Cannabis products for sale in
the adult -use market
M -L c nse
Cannabis products for sale in
the medicinal market
A business may hold both M- and A-
Licenses at the same premises as long as
separate applications are completed.
Operational Requirements
The four license types are:
Type 7
Extraction using volatile solvents (ex: butane, hexane, pentane)
Type t
Extraction using a non - volatile solvent or mechanical method
(ex: food -grade butter, oil, water, ethanol, or carbon dioxide)
Type N
Infusions (ex: using pre- extracted oils to create edibles, beverages,
capsules, vape cartridges, tinctures or topicals)
fype
Packaging and labeling only
Licensees must have written procedures for inventory control, quality control, transportation, security and cannabis waste
disposal. Descriptions of these procedures or Standard Operating Procedures (SOPs) must be submitted with the annual
license application. Cannabis waste cannot be sold, must be placed in a secured area and be disposed of according to
applicable waste management laws.
Good manufacturing practices must be followed to ensure production occurs in a sanitary and hazard -free environment,
cannabis products are contaminant free and THC levels are consistent throughout the product and within required limits.
Extractions using CO2 or a volatile solvent must be conducted using a closed -loop system, certified by a California - licensed
engineer. Volatile, hydrocarbon -based solvents must have at least 99% purity. Finally, volatile solvent, CO2 and ethanol
extractions must be certified by the local fire code official.
M
Product Standards and Prohibited Products
Products cannot be infused with nicotine or alcohol or have added caffeine. Edible products cannot be shaped like
a human, animal, insect, or fruit. Some potentially- hazardous foods, such as meat and seafood, and other products
requiring refrigeration, are prohibited for sale as cannabis products. Juice and dried meat made in accordance with
requirements are allowed. Perishable ingredients, such as eggs and milk, may be used as long as the final product
meets regulatory standards.
THC Limits
Edible products are limited to a maximum of 10 mg of THC per serving and 100 mg of THC per package. Other
cannabis products, such as tinctures, capsules and topicals, are limited to a maximum of 1,000 mg per package
for the adult -use market and 2,000 mg of THC per package for the medicinal -use market.
Packaging & Labeling
Cannabis product packaging cannot resemble traditionally available food packages, and edibles packaging must
be opaque. All manufactured products must be packaged before they are released to a distributor. In addition to
these requirements, statute requires that cannabis product packaging not be attractive to children and be tamper -
evident, re- sealable if the product includes multiple servings, and child- resistant.
Cannabis product labels must include an ingredient list, some nutritional facts and the CDPH- issued universal
symbol. The label may not refer to the product as a candy. In addition to these requirements, statute requires that
labels not be attractive to individuals under age 21 and include mandated warning statements and the amount of
THC content.
Annual License Fees
Application Fee - Processing fee of $1,000.00 per license
License Fee - Scaled according to the gross annual revenue of the licensed premises. These fees are intended to
cover costs of administering the manufactured cannabis safety program and range from $2,000 to $75,000.
Transition Period
The state licensing authorities have established a transition period, from January 1 until July 1, 2018, to support a
smooth transition into a newly regulated market. During this period, product will be allowed to move between
A- and M- licensees. Products manufactured prior to January 1, 2018, can be packaged in secondary packaging
that is child resistant, and stickers may be used for the government warning statement and amount of THC /CBD
per serving. All products manufactured on or after January 1, 2018 must meet THC limits and product restrictions.
Shared Manufacturing Facilities
CDPH is currently developing an additional license type, Type S, which will allow businesses to share facility space.
This license type will reduce barriers to entry into the legal, regulated market and ensure that cannabis products
are manufactured in clean, regulated facilities. This license type should be ready to be issued in early 2018.
Other Laws to Know:
California Business & Professions Core - Includes requirements set forth by MAUCRSA
Emergency Regulations relearned by the Bureau of Cannabis Control - Includes specific requirements for retailers,
distributors, third -party testing laboratories and microbusinesses
Ernerg;en cy Regulations released icy h: e CaICanna is Cultivation Licensing - Includes specific requirements for
cultivators and the track - and -trace system
Your Local City or County Ordinances
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ATTACHMENT 4
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City of Petaluma Dated:
O Regulations December 18, 2017 Commercial Cannabis Permit Re
.86a g
Commercial Cannabis Businesses
These regulations apply to the establishment and operation of cannabis businesses within the
City of Petaluma in accordance with and subject to Chapter 10.15 of the Petaluma Municipal
Code.
A. Purpose. To recognize the will of the voters in approving Proposition 64 while promoting
the public health, safety, and welfare through regulating specified commercial cannabis
activity in the City in accordance with Petaluma Municipal Code Section 10.1510.
B. Permit Eligibility. The following commercial cannabis activities are eligible for issuance of a
City permit, so long as the activity is conducted in areas of the City where the use is
permitted in accordance with the City's zoning regulations, as required by Section
10.15.040(A)(2) of the Petaluma Municipal Code:
1. Manufacturing. In accordance with Petaluma Municipal Code section 10.15.040(B),
commercial cannabis permits may be issued to businesses that manufacture and sell
topical or edible cannabis products using cannabis infusions, infusion processes, or
cannabis concentrates only business to business (non - retail). Manufacture of cannabis
products involving volatile solvents, and repackaging cannabis or cannabis products or
re- labeling cannabis or cannabis product containers are not authorized commercial
cannabis activities under Chapter 10.15 of the Petaluma Municipal Code and are not
eligible for issuance of a City permit.
2. Testing. In accordance with Petaluma Municipal Code section 10.15.040(C), commercial
cannabis permits may be issued to laboratories, facilities or entities that offer or
perform testing of cannabis or cannabis products. To be eligible for issuance of a City
permit, testing businesses must be:
a) Accredited by an accrediting body that is independent from all other persons
involved in commercial cannabis activity in the state; and
b) Licensed by the state Bureau of Cannabis Control.
3. Delivery -only dispensary / retailer.
In accordance with Section 10.15.040(D) of the Petaluma Municipal Code, the following
retail cannabis sales activity is eligible for issuance of a City permit:
a) A total of up to two (2) delivery -only cannabis dispensary permits may be issued to
businesses in the City that sell cannabis and cannabis products using a delivery -only
method in accordance with section 10.15.060 of the Petaluma Municipal Code
b) The City delivery only dispensary/ retailer permits will be issued using a request for
proposal process.
In accordance with Petaluma Municipal Code section 10.15.040(D), the following are not
authorized commercial cannabis activities under Chapter 10.15 of the Petaluma
Municipal Code and are not eligible for issuance of a City permit:
Onsite sale of cannabis or cannabis products to customers, primary care givers or
qualified patients occurring at the business location;
c) Customers, primary caregivers or qualified patients at the business location at any
time; and
d) Signage at the business location or on the delivery vehicles indicating the presence
of cannabis or cannabis products or that the seller sells cannabis or cannabis
products.
6
C. Commercial Cannabis Business Owner and Employee Requirements.
1. All commercial cannabis business owners and employees must be 21 years of age or
older
2. Commercial cannabis business owners and /or employees applying for and /or operating
under a City permit are subject to background check. Commercial cannabis permit
applications may be denied, and issued commercial cannabis permits may be revoked, if
the business owner and /or the business owner's employees have been convicted of an
offense that substantially relates to the qualifications, functions or duties of the
business that is the subject of the permit application or an issued permit. Such offenses
that may disqualify an applicant or result in revocation of an issued permit include, but
are not limited to, a felony conviction involving fraud, deceit, or embezzlement, and a
criminal conviction for the sale or provision of illegal controlled substances to a minor.
D. Location limitations.
In accordance with Petaluma Municipal Code section 10.15.040, commercial cannabis
businesses are only permitted to operate in areas of the City where commercial cannabis
business uses are expressly listed as permitted uses in accordance with the City's zoning
regulations.
E. Permit Application Process
1. Application. Applications for a City cannabis business permit shall be submitted to the
Chief of Police on a form provided by the City. Applications that are not complete,
including a completed City form, and any required supporting information, may be
returned. Applicants should allow approximately 60 days for City permit application
review.
2. Fee. The fee that applies to process applications for cannabis business permits shall be
set by City Council resolution. No fee payments will be prorated or refunded in the
event of a permit denial or revocation. Applications that are submitted without the
required fee may be returned.
3. Applicable Regulations. Cannabis business permit applications are subject to the laws
and regulations in effect at the time an application is submitted.
4. No Entitlement. The City has no duty or obligation to issue any cannabis business
permits. Issuance of cannabis business permits is not ministerial and is subject to
exercise of the Police Chief's discretion. Neither Chapter 10.15 of the Petaluma
Municipal Code nor these regulations create in any person or entity any entitlement or
vested right to receive a cannabis business permit.
5. Police Chief Review. Permit applications will be subject to the Police Chief's review.
The Police Chief will determine in the Police Chief's sole discretion whether to issue a
permit taking into account the factors listed under the Permit Denial and Revocation
section, below, and any other factors the Police Chief deems relevant. The Police Chief
may issue cannabis business permits subject to conditions the Police Chief deems
necessary or appropriate to protect the public health, safety and welfare.
F. Permit Term. Unless revoked or suspended, cannabis business permits and permit renewals
shall be valid through the end of the calendar year in which they are issued and unless
timely renewed will expire without further action of the City January 1 of the immediately
following year.
G. Permit Renewal Process.
1. Application. Cannabis business permit renewal applications shall be submitted to the
Police Chief on a form provided by the City. Renewal applications that are not complete,
including a completed City form, and any required supporting information, may be
returned.
2. Fee. The fee that applies to process applications for renewing cannabis business
permits shall be set by City Council resolution. Permit renewal applications that are
submitted without the required fee may be returned.
3. Renewal Application Deadline. Renewal applications and any applicable fees and
required supporting information must be submitted at least sixty (60) days before the
expiration of the permit. Permits of eligible renewal applicants that do not submit
timely, complete renewal applications may expire prior to issuance of a renewal permit,
if a renewal permit is issued, requiring cessation of commercial cannabis business
operations until the renewal permit takes effect.
4. Failure to Apply for Renewal. Failure to submit a completed cannabis business permit
renewal application prior to the expiration date of a permit will result in the automatic
2"1
expiration of the permit effective January 1 of the year immediately following the year
in which the permit was issued.
S. Applicable Regulations. Permit renewal is subject to the laws and regulations in effect
at the time a renewal application is submitted. Such laws and regulations may be
substantially different from the laws and regulations in effect when a permit was issued.
Renewal applications may require submittal of additional information, and compliance
with updated fee and other requirements as required by the laws and regulations then
in effect.
6. No Entitlement. The City has no obligation or duty to renew any cannabis business
permits. Issuance cannabis business permits is not ministerial and is subject to exercise
of the Police Chief's discretion. Neither Chapter 10.15 of the Petaluma Municipal Code
nor these regulations create in any person or entity any entitlement or vested right to
receive a cannabis business permit renewal.
7. Police Chief Review. Permit renewal requests will be subject to the Police Chief's
review The Police Chief will determine in the Police Chief's sole discretion whether to
issue a renewal permit taking into account the factors listed under the Permit Denial
and Revocation section, below, and any other factors the Police Chief deems relevant.
The Police Chief may renew cannabis business permits subject to conditions the Police
Chief deems necessary or appropriate to protect the public health, safety and welfare.
H. Permit denial and revocation.
Applications to issue or renew a cannabis business permit may be denied and existing permits
may be revoked based on violations by the permit applicant or permit holder of any provision
of these regulations or of the Petaluma Municipal Code, including, but not limited to, violations
of Petaluma Municipal Code Chapter 1.10 of the Petaluma Municipal Code. In addition,
applications to issue or renew a cannabis business permit may be denied and issued permits
may be revoked based on a determination that:
1. Continuation of a cannabis business's operations presents a threat to the health, safety
or welfare of the public.
2. Information contained in a cannabis business's permit application is found to be
incorrect or misleading.
3. A cannabis business has failed to operate in accordance with all local, state, and federal
laws or any requirements of these regulations.
4. A cannabis business owner and /or the business owner's employees have failed to
comply with the commercial cannabis security requirements which are attached to and
made a part of these regulations as Exhibit A.
5. A cannabis business's state license for commercial cannabis operations has been
revoked, terminated, or not renewed.
6. A commercial cannabis business has not been in regular and continuous operation for
three (3) consecutive months.
7. State law permitting the use for which a cannabis business's permit was issued is
amended or repealed resulting in such use becoming unlawful under state law.
8. The City receives credible information that the federal government will commence
enforcement measures against cannabis businesses and /or local governments that
permit them.
9. The circumstances under which a cannabis business permit was issued have changed
such that the public health, safety, and welfare require the suspension, revocation, or
modification of the permit.
10. A cannabis business is delinquent in timely remitting applicable City taxes or fees.
H. Permit Transfer.
1. Cannabis business permits are not transferable to a location different from the location
for which a permit has been issued; or to another cannabis business owner.
2. Cannabis business owners wishing to relocate to a new location in the City and
prospective cannabis business owners wishing to acquire an existing, permitted
cannabis business must submit new permit applications for such transfer or acquisition.
New cannabis business locations and owner(s) must meet all requirements for new
cannabis business permit applications..
Revocation Proceedings and Appeals. Cannabis business permit revocation proceedings,
appeals of cannabis business permit revocations, appeals of cannabis business permit
application denials, and judicial review of permit revocation and denial appeals, will be
subject to and conducted in accordance with the requirements for administrative
enforcement of violations of the Petaluma Municipal Code pursuant to Chapter 1.14 of the
Petaluma Municipal Code.
J. Cannabis Business Operating Requirements.
1. State License. In addition to complying with these regulations, all activities under City
cannabis business permits that are subject to State license requirements must be
conducted subject to and in accordance with all applicable state licenses. Cannabis
business permit holders must also hold valid, unrevoked state licenses for all activities of
the cannabis business permit holder that are subject to state license. City Business
License. All cannabis business permits holders must also hold a valid, unrevoked City of
Petaluma business license.
2. Hours of Operation. Cannabis business permit holders may operate their cannabis
business only between the hours of 8:00 a.m. and 8:00 p.m.
as
3. No Cannabis Signage. Cannabis business may not display exterior signage or symbols
that advertise the availability of cannabis or cannabis products, nor shall any such
signage or symbols be displayed on the interior of the facility in such a way as to be
visible from the exterior.
4. No Onsite Consumption. No cannabis or cannabis products may be smoked or ingested
on the premises of any cannabis business, including by owners, employees, vendors or
customers. The term "premises" includes the entire cannabis business premises,
including buildings, as well as any accessory structures, parking areas, or other
immediate surroundings.
5. Cannabis Deliveries. Cannabis deliveries may only be made by an owner or employee of
the cannabis delivery business, and such owners and employee must carry with them at
all times while conducting deliveries, either on their person or in their delivery vehicle, a
physical copy of the City commercial cannabis business permit under which they are
operating, the City business license under which they are operating, and all state
cannabis licenses under which they are operating.
6. Employees. All employees of commercial cannabis businesses must be at least 21 years
of age and are subject to background check by local law enforcement. The City may
implement a registration system whereby all commercial cannabis business owners and
employees must register with the City to permit background checks as a condition of
issuance or renewal of commercial cannabis business permits.
7. Onsite Security. Commercial cannabis businesses must comply with the Commercial
Cannabis Security Requirements attached as Exhibit A to these regulations. Commercial
cannabis business permits of cannabis businesses that fail to comply with the
Commercial Cannabis Security Requirements are subject to non - renewal and
revocation.
K. Enforcement.
1. Public Nuisance. In accordance with Petaluma Municipal Code section 10.15.100, any
violation of these regulations or of Chapter 10.15 of the Petaluma Municipal Code is a
public nuisance.
2. Remedies. The City may seek remedies for any violations of these regulations and /or
Chapter 10.15 of the Petaluma Municipal Code pursuant to any applicable authorities,
including, but not limited to those contained in Chapter 26 and those contained in Title
1 of the Petaluma Municipal code.
3. Right to Access and Audit.
As a condition of issuance of a commercial cannabis business permit and continued
operations under a commercial cannabis business permit, commercial cannabis permit
holders must:
a) Provide the City, its employees and / or agents full access to enter permitted
premises to inspect business operations and cannabis and cannabis products at the
business premises to ensure compliance with these regulations and Chapter 10.15 of
the Petaluma Municipal Code.
b) Permit the City, its employees and /or agents to review and copy any materials,
books, or records in the permit holder's possession to ensure compliance with these
regulations and Chapter 10.15 of the Petaluma Municipal Code.
Failure or refusal to cooperate with the City inspections and audits in accordance with
this section is, in the absence of any other violations of Chapter 10.15 of the Petaluma
Municipal Code or of these regulations, sufficient grounds for revoking cannabis
business permits.
ATTACHMENT 5
aw`�'LL 9 City of Petaluma
Commercial Cannabis Permit Permit#
Please fill out permit questions and pay your $10,000 application fee. This form will be your permit when approved.
In some cases, you may have to comply with additional conditions. Use this form when requesting change of
ownership, change in contact information, change in employees or vehicles, or change in security plan.
This Permit is valid through the end of the calendar year it is issued and is subject to renewal annually.
Applicant:
Business Name:
Legal Form of Ownership:
Phone:
Email:
Business
What type of permit are you requesting? ❑ Manufacturing ❑ Testing ❑ Delivery only Retailer
(See program regulations for definitions and limitations of each type of commercial cannabis business.)
Is this a new permit, renewal, or change in existing permit? ❑ New ❑ Renewal ❑ Change
If it is a change, what is changing? ❑ Ownership ❑ Contact Information
❑ Employees ❑ Vehicles
State License Type and Number:
Description of Operations:
For Delivery Businesses:
List all vehicles to be used for delivery of cannabis or cannabis product within the City, which includes the
vehicle's make, model, year, license plate number and vehicle identification number.
Vehicle 1: Make
License Plate No.
Vehicle 2: Make
License Plate No.
Vehicle 3: Make
License Plate No
Model Year
VIN #
Model Year
VIN #
Model
VIN #
Year
Petaluma Police Department
969 Petaluma Blvd. North, Petaluma, CA 94952
Hours: 8 am to 5 pm
Mondays through Thursday. Closed Fridays 0
List all persons who will be employed by this establishment and / or deliver cannabis or cannabis product in
the City. Include additional sheet if needed for additional employees.
Name
Driver License No.
Name
Driver License No.
Name
Driver License No.
Acknowledgement Required
Security Requirements. Applicant acknowledges that their business will comply with the
Commercial Cannabis Security Requirements.
Revocation of Permit. Upon confirmation of any violations of this section or other information
alleging that the commercial cannabis business violated or is in violation of any applicable laws,
regulations, or other requirements, including, but not limited to, the requirements of the
Commercial Cannabis Permit Regulations or Municipal Code Section 10.15, the City Manager or a
designee may commence permit revocation proceedings in accordance with Chapter 1.10 of the
Petaluma Municipal Code. Once a Commercial Cannabis Permit has been revoked, continued
operations of the commercial cannabis business is prohibited and subsequent applications may
not be filed within one (1) year from the date of revocation.
Property Owner Signature Required: The City of Petaluma requires the property owner's
signature when issuing a Commercial Cannabis Permit. This signature serves to verify that the
property owner has been informed of the intent to conduct commercial cannabis business
operations on all or part of the property. The City of Petaluma obtains property ownership
information from the Sonoma County Tax Assessor's office. If current ownership information
cannot be verified in this manner, additional documentations may be required.
Property Owner's Signature
Date
Applicant's Signature Date
1 certify that the above commercial cannabis business information is true and correct, and that I
understand and agree to abide by the conditions of approval per City of Petaluma Municipal Code
Chapter 10.15.
Petaluma Police Department
969 Petaluma Blvd. North, Petaluma, CA 94952
Hours: 8 am to 5 pm
Mondays through Thursday. Closed Fridays
ATTACHMENT 7
aw`AL 9 City of Petaluma
Security Commercial Cannabis
IBa v a
Commercial Cannabis Permit holders shall comply with the following security measures:
1) Security cameras shall be required and shall be motion - sensored and be installed
with capability to record activity on the property, including entry points to the
property, and within all buildings and structures on the property, including all
entrances, exits, perimeter windows and all areas where customers and employees
may have access, with the exception of any restroom area.
2) Security cameras shall record 24 hours a day, 7 days a week
3) Areas where cannabis products are manufactured or stored shall have camera
placement in the room facing the primary entry door at a height which will provide a
clear unobstructed view of activity without sight blockage from lighting hoods,
fixtures, or other equipment.
4) Cameras shall also be placed at each location where weighing, packaging, transport
preparation, processing, or labeling activities occur.
5) At least one camera must be dedicated to record the access points to the secured
surveillance recording area.
6) At each point -of -sale location, camera coverage must enable recording of the
customer(s) and employee(s) facial features with sufficient clarity to determine
identity.
7) Surveillance video shall be kept for a minimum of sixty (60) days in a format that can
be easily accessed for viewing. Video must.use standard industry format to support
criminal investigations.
8) Permit holders shall be required to cooperate with all law enforcement
investigations and provide video footage related to any such investigation upon
request.
9) Motion - sensor lighting and alarms shall be required and shall be professionally
installed and monitored to ensure the safety of persons and to protect the premises
from theft.
10) Alarm and surveillance systems shall be equipped with a failure notification system
that provides prompt notification to the operator of any prolonged surveillance
interruption and /or failure of the system. All surveillance equipment, records, and
recordings must be stored in a secured area that is only accessible to management
staff. Operators must keep a current list of all authorized employees who have
access to the surveillance system and /or alarm system.
11) Permit holders shall maintain up -to -date and current records and existing contracts
on the premises that describe the location and operation of each security alarm
system, a schematic of security zones, the name of the alarm installation company,
and the name of any monitoring company. Off -site monitoring and video recording
storage of the premises by the licensee or an independent third -party is authorized
as long as standards exercised at the remote location meet or exceed all standards
for onsite monitoring.
12) All security measures installed onsite shall have the capability to remain fully
operational during a power outage.
13) Weapons, firearms, and replica or airsoft firearms are prohibited on the property.
14) Security measures shall be designed to ensure emergency access in compliance with
fire safety standards.
15) All structures used for commercial cannabis activities shall have locking doors, with
commercial -grade non - residential locks, to prevent free access.
16) Security measures shall prevent individuals from remaining on the premises of the
commercial cannabis business if they are not engaging in activities expressly related
to the operations of the business.
17) Security measures shall include a transportation plan that details the procedures
established for the safe and secure transport of cannabis, cannabis products, and
currency to and from the business.
18) All cannabis compounds and cannabis products shall be stored in a secured and
locked room, safe, or vault that meets approval by the Petaluma Police Department.
To the fullest extent possible, all cannabis and cannabis products shall be kept in a
manner that prevents theft and loss.
19) Panic buttons shall be installed in all commercial cannabis facilities with easy access
by employees and all employees shall be properly trained on its use.
20) Each commercial cannabis business shall identify a liaison and their contact
information to the Petaluma Police Department who shall be reasonably available to
meet with the Chief of Police or designee(s) regarding security measures and
operational issues.
M
FA
REQUEST FOR PROPOSALS:
DELIVERY-ONLY CANNABIS DISPENSARIES
DIRECT QUESTIONS AND PROPOSALS TO:
JOHN BROWN
707-778-4345
969 PETALUMA BLVD. NORTH
PETALUMA, CA 94952
2
1►ili:To]b1l1oill9[Q01
1:I:1&I III ial
RFP INSTRUCTIONS, NOTIFICATIONS, AND LIMITATIONS ................. ...............................
PROPOSAL PROCESS / RFP TIMELINE ...................................... ...............................
SELECTION CRITERIA AND SCORING ................ ...................` ...............................
RFP RESPONSE FORMAT / SUBMITTAL REQUIREMENTS
INTRODUCTION.................... ............................... .....I..`.................... .. ..............................
OPERATOR BACKGROUND & EXPERIENCE............ ............................. ...............................
BUSINESS PLAN AND OPERATIONS PROPOSAL ...............1 ...................... ...............................
FINANCIAL INFORMATION ............. .... ....... ......... ...............................
REQUESTED ATTACHMENTS ..................... ............... .... .................. ...............................
ATTACHMENTS
1. PETALUMA CANNABIS ORDINANCE
2. PETALUMA COMMERCIAL CANNABIS
3. PETALUMA COMMERCIAL CANNABIS
4. PETALUMA COMMERCIAL CANNABIS
Petaluma RFP — Cannabis Delivery -Only Dispensaries
BUSINESS REGULATIONS
PERMIT APPLICATION
SECURITY REQUIREMENTS
Page 2
The Petaluma City Council adopted an Ordinance (Attachment A) banning Commercial Cannabis
activities with exceptions for businesses that manufacture and test cannabis products and up to
two (2) delivery -only dispensaries (Dispensaries). The Ordinance stipulated that the City
Council would establish detailed regulations for the commercial cannabis businesses at a later
date.
On December 18, 2017 the Petaluma City Council approved the Petaluma Commercial Cannabis
Regulations (Regulations) (Attachment B) that will guide permits and operational requirements
for cannabis businesses. The Regulations outline operator and operating requirements,
location limitations, permit terms, permit renewal / revocation procedures, and enforcement.
Successful Dispensary permit recipients will be subject to all State Laws and requirements of the
Petaluma Cannabis Ordinance and Regulations.
The City of Petaluma (City) is issuing this Request for Proposals, >(RFP) for individuals or
businesses interested in applying for Delivery -Only Dispensary Permit. Responses to this RFP
are sought from professional, qualified individuals or businesses that are capable of opening
and operating a safe, secure, and viable delivery -only cannabis dispensary within the City limits.
A Commercial Cannabis Permit will cost $3,500 for the first year and $2,500 each additional
year. That fee is non - refundable. Please note that this annual permit fee is applicable only to
proposal team(s) who are awarded a Commercial Cannabis Delivery -Only Dispensary Permit
Petaluma RFP —Cannabis Delivery -Only Dispensaries
Page 3
M
1. No Gratuities — Proposers will not offer any gratuities, favors, gifts, or anything with
monetary value to any official or employee of the City for the purpose of influencing this
selection. Any attempt by a proposer to influence the selection process by any means,
other than disclosure of qualifications and credentials through the proper channels, will
be grounds for exclusion from the selection process.
2. All Information True — By submitting a response, proposers represent and warrant to the
City that all information provided in the response submitted shall be true, correct and
complete. Proposers who provide false, misleading or incomplete information, whether
intentional or not, in any of the documents presented to the City for consideration in the
selection processed may be excluded.
3. Non - Conforming Proposal —A proposal shall be prepared and submitted in accordance
with the provisions of these RFP instructions and specifications. Any alternation,
omission, addition, variance, or limitations of, from or to `a proposal may be sufficient
grounds for non - acceptance of'the proposal, at the sole discretion of the City.
4. Interviews — After the initial evaluation of the written proposals, proposers will be
notified of their status in the selection process. Proposers should expect and anticipate
subsequent interviews which will most likely focus not only on the proposer's business
plan but also on an appraisal of the professionals who would be directly involved in the
operation of the business.
5. Inquiries —Do not contact the Mayor and City Council. Written questions regarding the
RFP should be submitted by the listed deadline. No verbal questions or inquiries will be
accepted. All written inquiries may be made available to all interested proposers. The
City may publish a subsequent RFP addendum responding to questions for which
proposers may be required to acknowledge receipt.
6. Cost of Responses —The City will not be responsible for the costs incurred by anyone in
the preparing or submitting responses to this proposal.
7. Limitations —This RFP is not to be construed as an offer, a contract, or as a commitment
of any kind. No Obligations —The City reserves the right to: (1) evaluate the proposals
submitted; (2) waive any irregularities therein; (3) select candidates for the submittal of
more detailed or alternate proposals; (4) accept any submittal or portion of submittal; (5)
reject any or all proposals; or (6) cancel the entire process.
8. Appeals. If an applicant disagrees with the City Manager's selection(s), the decision may
be appealed to the City Council. The City Council decision will be final.
Petaluma RFP — Cannabis Delivery -Only Dispensaries Page 4
The following table outlines the proposal process, listing key dates up to the date a permit can
be expected to be issued. Dates may change if needed. Proposals must be received by the
deadline. Incomplete or late proposals may be rejected
Petaluma RFP —Cannabis Delivery -Only Dispensaries Page 5
W
INTRODUCTION
1. Title Page Cover: This should include the name of the proposing business, its principal
business address where the relationship will be managed, and the local branch address
that can meet our daily banking needs.
2. Table of Contents
3. Transmittal letter: The letter should identify the following:
a. Proposer
b. Brief overview of qualifications
c. Contact information
d. Acknowledgment that information provided in proposal is true, accurate, and
current
e. Acknowledgment that proposer is willing to abide by the City of Petaluma
Commercial Cannabis Ordinance and Regulations (Attachment A & B)
f. Identify your interest in providing cannabis- related services
Address letter to:
John Brown
City of Petaluma
11 English Street
Petaluma, CA 94952
OPERATOR BACKGROUND AND EXPERIENCE
1. TEAM INFORMATION
a. Business Name, Address, Phone Number
b. Business Structure (I.E. Sole Proprietorship, Partnership, Etc.)
c. Number of years in business, if applicable.
d. Names of principals in business
e. Primary Contact
Petaluma RFP — Cannabis Delivery -Only Dispensaries Page 6
f. Organizational Description
g. Description of business's philosophy
2. EXPERIENCE
a. Describe your teams areas of expertise, permanent staff and the services that
you plan to provide.
b. Include a brief history and description of your company
c. Include an organizational chart that explains team member responsibilities
Provide resumes for each member of the management team (there cannot be a
change in the management team once the proposal is submitted without the
prior approval of the City)
d. Include up to three references — public sector references preferred
3. TRACK RECORD
4. CRIMINAL BACKGROUND
a. Each member of your team will be subject to a criminal background check.
Please sign and include the attached request for live scan service form, CSI
release & authorization form and employee / owner background application and
acknowledgement form. Each member of the proposal team will be required to
submit to a criminal background investigation that will include a search of both
California and national criminal record databases. Fingerprints shall be required
from each member of the proposal team as part of this process.
b. Commercial cannabis operators may not have any criminal convictions that
substantially relate to the qualifications, functions or duties of the business or
profession including, but not limited to a felony conviction involving fraud,
deceit, or embezzlement or a criminal conviction for the sale or provision of
illegal controlled substances to a minor.
BUSINESS PLAN AND OPERATIONS PROPOSAL
1. BUSINESS PLAN
a. Describe your business plan including the kinds of products you plan to sell and
who you plan to sell them to. The plan should include a description of your
target customers, your marketing plan, and how the business will be financial
successful.
Petaluma RFP — Cannabis Delivery -Only Dispensaries Page 7
b. Describe how you will get the products that you will sell
c. Provide evidence that the proposer either owns sufficient property to conduct
the proposed business or has owner consent from a property owner to conduct
the business on their property.
d. Describe your hiring plan and how you will provide continuing education to staff.
2. OPERATIONS PROPOSAL
a. Describe how your business will function on a daily basis.
i. Who will staff the phones and warehouse
ii. Who will oversee deliveries
iii. How you will implement the required security measures (Attachment 4).
Include a written security policy that outlines how cannabis will be
procured, transported, handled and tracked to prevent diversion.
iv. How will customers discuss their needs / concerns with your staff
b. How will you deliver your products — including vehicle types, delivery timelines
and delivery staffing?
c. Describe any other community outreach you propose including any plans to
provide community education around safe cannabis use.
d. Describe the number of new jobs that will be created by your proposed business,
including the proposed pay scale. Also outline and any other community
benefits your proposed business will provide.
FINANCIAL INFORMATION
1. PRO FORMA
a. Provide a financial pro forma demonstrating how your business will be
profitable
b. Include an estimate of the percentage of your business that will be
dedicated to selling medical use cannabis and the percentage of your
business that will be dedicated to selling adult use cannabis. Please
estimate the total sales in each category and how much sales tax will
be derived from those sales.
2. BUSINESS COSTS
a. Provide a summary of the funds needed to open the proposed delivery
only dispensary.
Petaluma RFP —Cannabis Delivery -only Dispensaries Page 8
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b. Include operating capital for the first 2 years of operations.
3. AVAILABLE CAPITAL
a. How will your team finance the start -up costs of the business?
4. CASH MANAGEMENT
a. Describe your team's cash management system
5. FINANCIAL REFERENCES
a. Provide a financial statement indicating your team's access to
sufficient funds to open the proposed business
3.
2
5.
Packages must be submitted to the c
on the due date.
5 paper copies, with semi- permanent binding should be submitted;_ along with one
electronic copy.
Pages should be no larger than 8 %.x 11 or folded to that size.
A check of $3,500, payable to the City of Petaluma is required.
Packages must include a completed and signed Commercial Cannabis Permit
Application, Live Scan Forms for each team member and Criminal Background Check
Release Forms for each team member.'
6. COMMERCIAL CANNABIS PERMIT APPLICATION
7. LIVE SCAN FORMS
8. CRIMINAL BACKGROUND CHECK RELEASE FORMS
Petaluma RFP — Cannabis Delivery -Only Dispensaries
Page 9
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