HomeMy WebLinkAbout21CV-0734 - Request for Judicial Notice Filed1 -
REQUEST FOR JUDICIAL NOTICE IN SUPPORT OF OPPOSITION TO PLAINTIFF’S EX PARTE
APPLICATION FOR TRO AND OSC RE: PRELIMINARY INJUNCTION
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BEST BEST &KRIEGER LLPATTORNEYS AT LAW18101VON
KARMAN AVENUE,SUITE
1000IRVINE,CALIFORNIA 92612JEFFREY V. DUNN, Bar
No. 131926 jeffrey.
dunn@bbklaw.com DANIEL L.
RICHARDS, Bar No. 315552 daniel.richards@bbklaw.
com BEST BEST &
KRIEGER LLP 18101 Von
Karman Avenue, Suite 1000
Irvine, California 92612 Telephone: (949) 263-2600 Facsimile: (
949) 260-0972 Attorneys for Defendants and Respondents City of San
Luis Obispo and City Council of and for
the City of San Luis
Obispo EXEMPT FROM FILING FEES PURSUANT TO
GOVERNMENT CODE SECTION 6103 SUPERIOR
COURT OF THE
STATE OF CALIFORNIA
COUNTY
OF SAN LUIS OBISPO NHC SLO,
LLC,Petitioner and Plaintiffs, v. CITY OF SAN
LUIS OBISPO; CITY COUNCIL OF AND
FOR
THE CITY
OF
SAN LUIS OBISPO; AND
DOES 1-10,
INCLUSIVE, Defendants and Respondents. Case
No. 21CV-0734 Judge:
Rita Federman REQUEST FOR JUDICIAL NOTICE
IN SUPPORT OF
OPPOSITION TO PLAINTIFF
NHC SLO, LLC’S EX PARTE
APPLICATION FOR
TEMPORARY RESTRAINING ORDER AND
ORDER TO SHOW CAUSE RE:
PRELIMINARY INJUNCTION
Date:
January
31, 2022 Time: 8:30 a.
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REQUEST FOR JUDICIAL NOTICE IN SUPPORT OF OPPOSITION TO PLAINTIFF’S EX PARTE
APPLICATION FOR TRO AND OSC RE: PRELIMINARY INJUNCTION
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BEST BEST &
KRIEGER LLPATTORNEYS AT LAW18101VON KARMAN AVENUE,SUITE 1000IRVINE,CALIFORNIA 92612I.INTRODUCTION Defendants and Respondents City
of San Luis Obispo and City Council of and for the City of San Luis
Obispo (“Defendants”) respectfully request that the Court take judicial notice of the documents below pursuant
to California Evidence Code sections 451 and 452 in support of the Defendants’
Opposition to Plaintiff’s Ex Parte Application for
Temporary Restraining Order and Order
to Show Cause Regarding Preliminary Injunction. II.AUTHORITY FOR JUDICIAL NOTICE A court may
take judicial notice of official acts of local governments and legislative enactments of any public entity (Evid.
Code § 452(b–d)) and facts and propositions that are not reasonably subject to
dispute and are capable of immediate and accurate determination by
resort to sources of reasonably indisputable accuracy. (Evid. Code § 452(h).). Local ordinances
and resolutions are properly subject to judicial notice. (Union of Med. Marijuana Patients, Inc. v. City
of Upland (2016) 245 Cal.App.4th 1265, 1269 fn. 2.) There is
a rebuttable presumption that certified copies of public documents are true, correct, and authentic. (
See Evid. Code. §§ 1530 et seq.; Ambriz v. Kelegian (2007) 146 Cal.App.4th
1519, 1530 [“Respondents offered nothing to overcome the presumption that these copies of official records
were true and correct copies, as certified by a city official.”].) The documents
for which judicial notice are sought are relevant to establishing the relevant provisions of the
San Luis Obispo Municipal Code and to establish that Valnette Garcia represented to a federal
court
that her and Helios Dayspring are
in an intimate personal relationship. III.DOCUMENTS TO BE JUDICIALLY NOTICED 1.
San Luis Obispo Municipal Code Chapter 9.10, “Cannabis Regulations,” available online at https://sanluisobispo.municipal.
codes/Code/9.10. A true and correct copy of this document is attached hereto as
Exhibit 1. (Evid. Code § 452; Richards Decl. ¶ 2; (Union of Med. Marijuana Patients, Inc. v. City of Upland (
2016) 245 Cal.App.4th
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REQUEST FOR JUDICIAL NOTICE IN SUPPORT OF OPPOSITION TO PLAINTIFF’S EX PARTE
APPLICATION FOR TRO AND OSC RE: PRELIMINARY INJUNCTION
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BEST BEST &KRIEGER LLPATTORNEYS AT LAW18101VON KARMAN AVENUE,SUITE 1000IRVINE,CALIFORNIA 926122. San
Luis Obispo Municipal Code Section 17.86.080, “Cannabis,” available online at https://sanluisobispo.municipal.codes/
Code/17.86.070. A true and correct copy of this document is attached hereto as
Exhibit 2. (Evid. Code § 452; Richards Decl. ¶ 3; (Union of Med. Marijuana Patients, Inc. v. City of Upland (
2016) 245 Cal.App.4th
1265, 1269 fn. 2 [local laws proper subject of judicial notice].) 3. Affidavit of
Surety (No Justification), filed in the matter United States of America v. Helios
Raphael Dayspring, aka “Bobby Dayspring” United States District Court for the Central District of California Case No.
2:21-cr-00343-AB. This document is available on PACER by accessing ECF No. 16 in the above
entitled matter. A true and correct copy of this document is attached hereto as Exhibit
3. (Evid Code § 452(d); Evid. Code § 1220 [hearsay exception for statement by party opponent, here
Valnette Garcia];
People v. Lee (2011) 51 Cal.4th 620, 651.) IV.CONCLUSION For
the foregoing reasons, Defendants respectfully request
that this Court take judicial notice of Exhibits
1
to 3. Dated:
January 28, 2022
BEST BEST & KRIEGER LLP By:
JEFFREY V. DUNN DANIEL L. RICHARDS Attorneys for
Defendants and Respondents City of San Luis Obispo and
City Council of and
EXHIBIT 1
Office of the City Clerk
990 Palm Street,San Luis Obispo.CA 93401-3218
805.781.7100
slocityorg
CERTIFICATION
I,Teresa Purrington,City Clerk,do hereby certify under penalty of perjury the attached
document is a true and correct copy of the original now on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY 0F SAN LUIS OBISPO.
DATED:Janm 25,2022
dm
Teresa Purrington,City Clerk
City of San Luis Obispo
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Chapter 9.10
CANNABIS REGULATIONS
Purpose and intent.
Definitions.
Personal cultivation limited.
Commercial cannabis/city permit and state license required.
Regulations and fees.
Display and production of permits.
Commercial cannabis operator permit application procedures and requirements.
Renewal of permit.
Suspension or revocation of permit.
Appeal.
Right to occupy and to use property for commercial cannabis activity.
Prohibition on transfer of commercial cannabis operator permits.
Records and reports.
Inspection and enforcement.
Outdoor commercial cannabis cultivation and activities prohibited.
Indemnification,insurance,reimbursement,consent.
Compliance with laws.
Permit violation.
Permit compliance monitoring.
Permit holder responsible for violations by employees or agents.
Consumption or use prohibited on site and in public—Cannabis event prohibited.
Concurrent alcohol or tobacco sales or service prohibited.
Minors.
Sale of cannabis products or cannabis accessories by vending machine prohibited.
Security and public safety measures.
Limitations on city's liability.
Fees deemed debt to city.
Violation and penalties.
Severability.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021 .
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 2 of 16
9.10.010 Purpose and intent.
A.It is the primary purpose and intent of this chapter to protect the health,safety,and welfare of the residents
of the city of San Luis Obispo from the negative impacts of illegal commercial and noncommercial cannabis
activity,and of state authorized cannabis activity,by enforcing city ordinances,rules and regulations consistent
with applicable state law,including,but not limited to,the Compassionate Use Act,the Medical Marijuana Program
Act,the Adult Use of Marijuana Act,and the Medicinal and Adult Use of Cannabis Regulatory and Safety Act.
B.This chapter is not intended to,and shall not be construed to,prohibit or interfere with any right,defense or
immunity under Health and Safety Code Section 11362.5 (the Compassionate Use Act),or under Health and Safety
Code Section 11362.7 et seq.(the Medical Marijuana Program Act).
C.This chapter is not intended to,and shall not be construed to,prohibit or interfere with any right,defense or
immunity of any person twenty-one years of age or older relating to the adult personal possession or cultivation of
cannabis or marijuana consistent with the provisions of the Control,Regulate and Tax Adult Use of Marijuana Act
and the Medicinal and Adult Use of Cannabis Regulatory and Safety Act.
D.Nothing in this chapter shall be construed to authorize the cultivation,possession or use of marijuana for any
purpose inconsistent with state or local law.
E.Any reference to California statutes includes any regulations promulgated thereunder and is deemed to
include any successor or amended version of the referenced statute or regulation.(0rd.1647 §4 (Exh.A (part)),
2018)
9.10.020 Definitions.
A.State-Defined Terms.Words or terms used in this chapter that are defined words or terms in Business and
Professions Code Section or Health and Safety Code Section 11362.7 (the "Statutes”)shall have the
meanings ascribed to them in the Statutes as they now read,or as they may be amended to read.These state-
defined words and terms include,but are not limited to,"cannabis,""cannabis accessories,”"cannabis
concentrate,"”cannabis products,""commercial cannabis activity.”"cultivation,""delivery,"”distribution,""license,"
live plants,""manufacture,""operation,"“person,"”premises,"”sell,""sale,""to sell."Some of these terms are also
set forth in Chapter 1_7.1_56.In the event of conflict in the definitions,the definitions in Chapter shall
control;provided the terms defined in subsection E of this section shall control over any other definition.
B.City-Defined Terms.The following words or terms used in this chapter have the following meanings:
1.”Commercial cannabis business"means any person or entity engaging in any business,operation or
activity which is commercial cannabis activity under state law in the city.
2."Commercial cannabis operator permit"means a permit required by the city of San Luis Obispo pursuant
to this chapter to conduct commercial cannabis activity or a commercial cannabis business in the city.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021 .
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 3 of 16
3."Responsible party(ies)"shall be one or more individuals who have an ownership interest in a commercial
cannabis activity and are designated to be personally responsible for compliance with all terms and conditions
of the commercial cannabis operator permit,all other permits required by the city,and all ordinances and
regulations of the city.Any person having an ownership interest of more than fifty percent in a commercial
cannabis activity shall be designated a responsible party on the application.If no individual owns more than
fifty percent of a commercial cannabis activity,the individual owning the largest share shall be a responsible
party,and if multiple individuals have the same percentage interest,each one shall be a responsible party.
More than one individual can be designated a responsible party.
4."Cannabis event"means a public or private event where compensation is provided or exchanged.either
directly or indirectly or as part of an admission or other fee for service,for the provision,hosting,promotion
or conduct of the event where consumption of cannabis is part of the activities.(0rd.1647 §4 (Exh.A (part)),
2018)
9.10.030 Personal cultivation limited.
A.Maximum Six Plants Outdoors per Parcel.It shall be unlawful for any person to plant,cultivate,harvest,dry,
process,maintain,possess or store outdoors,more than six live cannabis plants on any parcel containing one or
more private residences.This limitation on outdoor personal cannabis activities applies per parcel,regardless of
the number of residents in each private residence,and regardless of the number of residences on the parcel.This
limitation applies to cannabis live plants for either adult recreational use or medicinal purposes.Outdoor personal
cultivation shall comply with applicable provisions of Section 17.86.080.
B.Maximum Six Plans per Private Residence,Indoors and Outdoors.It shall be unlawful for the cumulative total of
cannabis plants per private residence,indoors and outdoors,to exceed six cannabis live plants,regardless of
number of persons residing in the private residence.This limitation applies to cannabis live plants for either adult
recreational use or medicinal purposes.Any live cannabis plants grown indoors shall comply with applicable
provisions of Section 17.86.080.
C.No Outdoor Cultivation on Parcel without Private Residence.lt shall be unlawful for any person to plant,cultivate,
harvest,dry,process,maintain,possess or store any cannabis live plants outdoors on a parcel that does not have
a private residence used for residential dwelling purposes by the person cultivating the cannabis live plants.
D.Neighborhood Impacts of Personal Cultivation.There shall be no exterior evidence of cannabis cultivation
occurring at the property visible by normal unaided vision from a public place or the public right-of-way and any
outdoor cultivation shall comply with provisions of Section 17.86.080(D).Personal cultivation of cannabis,for
recreational adult use or for medicinal purposes,shall not create odors,dust,heat,noise,light,glare,smoke or
other impacts to people of normal sensitivity living,working or lawfully present in the vicinity of the personal
cultivation site.Impacts that cross the nearest property line of any other parcel,beyond that parcel on which the
personal cultivation is conducted,or that are visible or noticeable with normal unaided vision,from a public place
or the public right-of-way,or from any separately owned,leased or controlled private residence or business on the
same parcel as the private residence responsible for the personal cultivation,are unlawful.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 4 of 16
E.No Hazardous Personal Cultivation.Personal cultivation.harvesting.drying,or processing of cannabis,for
recreational adult use or medicinal purposes,that uses or stores hazardous or toxic chemicals or materials,
creates hazardous or toxic products or wastes,or uses volatile processes or other methods or substances that
pose a significant risk to public health or safety,is prohibited and unlawful.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.040 Commercial cannabis/city permit and state license required.
A.City Commercial Cannabis Operator Permit Required.No person shall engage in commercial cannabis activity or
have an ownership interest in,operate,or manage a commercial cannabis business without obtaining and
continuously maintaining a commercial cannabis operator permit pursuant to this chapter.
B.Commercial Cannabis Operator Permit and State License(s)Required.It shall be unlawful for any person to own,
conduct,manage,operate.engage or participate in,or work or volunteer at a commercial cannabis activity or
commercial cannabis business that does not have a valid commercial cannabis operator permit issued pursuant to
this chapter and other city permits or licenses required by this code,in addition to the appropriate license(s)
required by state law to conduct the commercial cannabis activity.Any commercial cannabis business or
commercial cannabis activity conducted without all required city and state permits and licenses is prohibited and
unlawful and is hereby declared to be a public nuisance.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.050 Regulations and fees.
The city council shall by resolution or ordinance adopt such forms,fees,regulations and procedures as are
necessary to implement this chapter with respect to the application and qualification for,and the selection,future
selection,investigation,process,issuance,renewal,revocation,and suspension of,commercial cannabis operator
permits.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.060 Display and production of permits.
A.Dual Permits Posted and Visible.A copy of the commercial cannabis operator permit issued by the city of San
Luis Obispo pursuant to this chapter,together with a copy of the apprOpriate state license(s)for the commercial
cannabis activity being conducted,shall be posted and readily visible to the public at all times,at each location
where commercial cannabis activity occurs.
B.Production of Originals for Inspection.Any owner,operator,employee or person in charge of a commercial
cannabis activity shall produce for inspection and copying,upon request of a city inspector,code enforcement
officer,or city police officer during normal operating hours,the original of the current and valid city of San Luis
Obispo commercial cannabis operator permit and the appropriate,current and valid license(s)of the state of
California for the commercial cannabis activity(ies)or commercial cannabis business(es)being conducted.(0rd.
1647 §4 (Exh.A (part)),2018)
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 5 of 16
9.10.070 Commercial cannabis operator permit application procedures
and requirements.
A.Application.A person shall apply for a commercial cannabis operator permit by submitting an application t3
the city during the annual application period or any other period established by the city manager.The city council
will,by resolution,adopt criteria by which all applications will be reviewed,applicants qualified and,in the case of
retail and cultivation businesses,also ranked.Those applicants that are selected will have the opportunity to apply
for a use permit as outlined in Section 17.86.080.Each application shall designate at least one responsible party.If
a person is not selected to receive a commercial cannabis operator permit,the person may reapply during the
next annual application period or any subsequent application period established by the city manager.
B.Application Submitta/Time Frame.A person may only submit one application per permit type,per application
period,for a commercial cannabis operator permit,during the annual application period designated by resolution
of the city council or any subsequent application period established by the city manager.An applicant who is
unsuccessful in any application period may submit another application in any subsequent application period.The
commercial cannabis operator permit will be valid for twelve months.Once a permit is obtained,the applicant can
apply annually for renewal.There is no guarantee that an applicant will receive a commercial cannabis operatcr
permit in the first instance.Due to limitations on the number of certain permits,even a highly ranked applicant for
a retail or cultivation permit may not receive a commercial cannabis operator permit and even an applicant wl'o
receives a commercial cannabis operator permit is not guaranteed that any subsequent,required land use permit,
as outlined in Section 17.86.080,will be approved.
C.Grounds for Automatic Disqualification.In addition to any other reason that may be established by the city
council as a basis for disqualification,an applicant shall be disqualified from applying for,or obtaining,a
commercial cannabis operator permit if:
1.The applicant fails to timely file an application during the annual application period.
2.The responsible party refuses to sign the application and agree to be personally responsible for
compliance,and personally liable for failure to comply,with the provisions of this chapter.
3.The applicant,or any of its officers,directors or owners,or any person listed in the application,has been
convicted of a felony or offense referenced in Business and Professions Code Section 26057;or has been
subject to fines,penalties,or sanctions for cultivation or production of a controlled substance on public or
private lands or for unauthorized commercial cannabis activities as specified in Business and Professions
Code Section or has had a commercial cannabis license suspended or revoked by the state of
California or any city or county in any state,within the three years preceding the date the application is filed,
or is ineligible to apply for a state cannabis license.No person who has been convicted of such a felony or
offense,or subject to such fines,penalties,sanctions,suspension or revocation,may be engaged (actively or
passively)in the operation,management or ownership of any commercial cannabis business.A conviction
within the meaning of this chapter means a plea or verdict of guilty or a conviction or diversion following a
plea of nolo contendere.
4.The applicant made one or more false or misleading statements or omissions in the application process.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 6 of 16
5.Any person listed on the application is a licensed physician making patient recommendations for medical
or medicinal cannabis pursuant to state law.
6.Any person listed in the application is less than twenty-one years of age.
D.Duration and Activation of Permit.Each commercial cannabis operator permit issued pursuant to this chapter
shall expire twelve months after the date of its activation.The permittee may apply for renewal prior to expiration
in accordance with this chapter.Each commercial cannabis operator permit must be activated within twelve
months of issuance.The permit is activated by the issuance of a use permit for the commercial cannabis activity
pursuant to Section 17.86.080,together with all other applicable city permits and state licenses,and the
commercial cannabis operator thereafter opening and continuously operating the commercial cannabis activity.
Failure to timely activate the permit shall be deemed abandonment of the permit and the permit shall
automatically lapse.(0rd.1673 §§1,2 (Exh.A),2020;Ord.1647 §4 (Exh.A (part)),2018)
9.10.080 Renewal of permit.
A.Renewal Application Filing Deadline.An application for renewal of a commercial cannabis operator permit shall
be filed at least sixty calendar days,but not more than one hundred twenty calendar days,prior to the expiration
date of the permit with the city manager or his/her designee.All commercial cannabis operator permits shall lave
an expiration date of june 30th of each year.If the complete application and fees are timely submitted but the city
does not act to approve or reject the renewal prior to expiration,the permittee may continue to operate under the
expired permit until the city approves or rejects the application for renewal.
B.Rejection of Renewal Application.An application for renewal of a commercial cannabis operator permit shall be
rejected if any of the following exists:
1.The commercial cannabis operator permit is revoked at the time of the application or renewal.
2.The applicant conducted unpermitted commercial cannabis activities in the city or continued to conduct
formerly permitted commercial cannabis activities after expiration of the permit.other than as expressly
permitted by this section.
3.Any of the grounds for disqualification for prequalification set forth in Section 9.10.070(C),or as
established by the city council,exist at the time of application for renewal,or the date of renewal.
4.The permittee fails to renew any required state of California license(s),or the state revokes or suspends
the license.Revocation,termination,nonissuance or suspension of a license issued by the state of California,
or any of its departments or divisions,shall immediately,concurrently revoke,terminate,or suspend,
respectively,the commercial cannabis operator permit.Such automatic suspension makes it illegal for a
commercial cannabis business or activity to operate within the city of San Luis Obispo until the state of
California,or its respective department or division,reinstates or issues the state license.
An application for renewal of a commercial cannabis operator permit may be denied if any of the following exists:
1.The application is filed less than sixty days before its expiration.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021 .
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 7 of 16
2.The applicant has received an administrative citation for violating any provision of this code relating to its
commercial cannabis activity(ies)in the city during the last twelve months.and the administrative citation has
not been resolved in the applicant's favor by the date of application for renewal.A pending,unresolved appeal
of an administrative citation shall not result in rejection of an otherwise timely and complete application,but
resolution of an appeal in a manner that upholds the violation against the applicant during the application
review period shall result in the immediate rejection of the application.
3.The commercial cannabis business has not been in regular and continuous operation in the three months
immediately prior to the renewal application.
4.The commercial cannabis business fails to conform to the requirements of this chapter,any regulations
adopted pursuant to this chapter,or the conditions imposed as part of any use permit or zoning requirements
under Section 17.86.080.
5.The commercial cannabis operator permit is suspended at the time of application or renewal.
C.Efiect of Rejection oprp/ication for Renewal—Operations to Cease Pending Appeals.If a renewal application is
rejected,the commercial cannabis operator permit expires on the expiration date set forth in the permit,even if
an appeal has been filed.All commercial cannabis activities in the city under the expired permit must stop until all
appeals have been exhausted.A person or entity whose renewal application is rejected,and who loses his/her/its
appeal,must go through the annual commercial cannabis business operator permit application process.(0rd.
1691 §1,2021;0rd.1647 §4 (Exh.A (part)),2018)
9.10.090 Suspension or revocation of permit.
In addition to any other penalty authorized by law,a commercial cannabis operator permit may be suspended or
revoked if the city finds,after notice to the permittee and opportunity to be heard,that the permittee or his or her
agents or employees have violated any condition of the permit imposed pursuant to,or any provision of,this
chapter.
A.Upon a finding by the city of a first permit violation within any five-year period,the permit shall be suspended
for thirty days.
B.Upon a finding by the city of a second permit violation within any five-year period,the permit shall be
suspended for ninety days.
C.Upon a finding by the city of a third permit violation within any five-year period,the permit shall be revoked.
0rd.1647 §4 (Exh.A (part)),2018)
9.10.100 Appeal.
A.Qualification—Ranking of Retailers and Cultivators.A decision of the city to not qualify an applicant for a
commercial cannabis operator permit,or to rank applicants for retail or cultivation licenses,or to allow qualified
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021 .
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 8 of 16
applicants with the highest rankings the first opportunity to apply for a commercial cannabis operator permit.
shall be the final action of the city and not appealable.
B.Nonrenewal,Revocation or Suspension.A decision of the city to reject an application for renewal,or to revoke or
suspend a commercial cannabis operator permit,is appealable to the city manager.An appeal must be filed with
the city manager within ten working days after the renewal has been denied,suspended or revoked.A decision of
the city manager or his or her designee is appealable to the city council in accordance with Chapter 29.
C.Efiect of Suspension.During a period of license suspension,the commercial cannabis business shall remove
from public view all cannabis and cannabis products,and shall not conduct any commercial cannabis activity.
D.Revocation—Notice to State.Pursuant to Business and Professions Code Section 26200(c),the city manager or
his or her designee shall promptly notify the Bureau of Cannabis Control within the Department of Consumer
Affairs upon the city’s revocation of any local license,permit,or authorization for a state licensee to engage in
commercial cannabis activity within the city.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.110 Right to occupy and to use property for commercial cannabis
activity.
As a condition precedent to the city‘s issuance of a commercial cannabis operator permit pursuant to this chapter,
any person intending to open and operate a commercial cannabis business shall provide evidence satisfactory to
the city of the applicant’s legal right to occupy and use the proposed location for the proposed use,together with
the approval of a use permit from the city for cannabis activity at the location.In the event the proposed location
is owned by or to be leased from another person,the applicant for a permit under this chapter shall provide a
signed and notarized statement from the property owner agreeing to the operation of a commercial cannabis
business on the property.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.120 Prohibition on transfer of commercial cannabis operator permits.
A.Business Restriction to Location on Permit.It shall be unlawful for any person to transfer a commercial cannabis
operator permit to a location not specified on the permit,or to operate a commercial cannabis business at any
place or location other than that identified on the commercial cannabis operator permit issued pursuant to this
chapter.
B.Transfer orAssignment Prohibited.No person or entity shall encumber,mortgage,lien,hypothecate,give,
bequeath,sell,assign or transfer,by operation of law or otherwise,any portion of the ownership or control of a
commercial cannabis business or a commercial cannabis operator permit to any person who does not have a
commercial cannabis operator permit from the city prior to the effective date of any action described in this
sentence.The commercial cannabis operator permittee proposing such an action shall:
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
Ch.9.10 Cannabis Regulations l San Luis Obispo Municipal Code Page 9 of 16
1.Notify the city in writing of the proposed action,comply with applicable regulations and provide such
information as the city reasonably requests regarding the identity and qualifications of the persons involved,
and pay all applicable fees and charges;and
2.Provide proof that the proposed lender.lienholder,recipient,heir,buyer,assignee,transferee,or other
potential recipient of any portion of the ownership or control,at the time of the notice and effective date of
the proposed action,is qualified by the city to apply for a commercial cannabis operator permit;and the
proposed action is conditioned on the city issuing to the person a new or amended commercial cannabis
operator permit.
3.Notify the city in writing within ten calendar days of the action becoming final with the names and contact
information of the new persons involved,together with a request that the city issue either a new or amended
commercial cannabis operator permit,as applicable.
C.Assignment Null and Void.Any attempt to transfer,sell,assign,give,or lien,or any transfer,sale,assignment,
gift or lien,of a commercial cannabis operator permit issued pursuant to this chapter,by operation of law or
othenNise,in violation of this chapter,is prohibited.Any such action immediately voids,nullifies and terminates
the commercial cannabis operator permit,which shall be of no further force or effect.(0rd.1647 §4 (Exh.A (part)),
2018)
9.10.130 Records and reports.
A.CityAccess to Records.Subject to the Health Insurance Portability and Accountability Act (HlPAA)regulations,
each commercial cannabis business shall allow city of San Luis Obispo officials to have access to the commercial
cannabis business’s books,records,accounts,and any and all data relevant to its permitted activities for the
purpose of conducting an audit,examination or inspection.Books,records,accounts,and any and all relevant
data will be produced no later than twenty-four hours after receipt of the city's request or within a reasonable
time as authorized in writing by the city.
B.Annual Audit.Each commercial cannabis business shall file with the city manager or his/her designee an audit
of its financial operations for the previous fiscal year,complete and certified by an independent certified public
accountant in accordance with generally accepted auditing and accounting principles.The audit shall include but
not be limited to a discussion,analysis,and verification of each of the records required to be maintained pursuant
to this chapter.The information contained in the audit shall be made available in standard electronic format which
shall be compatible with programs and software used by the city,and which can easily be imported into either
Excel,Access or any other contemporary software designated by the city manager.
C.Inventory Control System.All commercial cannabis businesses shall maintain an inventory control and reporting
system that accurately documents the present location,amounts,and descriptions of all cannabis and cannabis
products for all stages of the growing and production or manufacturing,laboratory testing and distribution
processes until sold or distributed.All commercial cannabis businesses shall maintain records of all sales or
transfers of cannabis and cannabis products.
The San Luis Obispo Municipal Code ls current through Ordinance 1702,passed November 15,2021 .
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 10 of 16
D.Employee Registry.Each owner and/or operator of a commercial cannabis business shall maintain a current
register of the names and the contact information (including the name.address,and telephone number)of all
employees currently employed by the commercial cannabis business and shall disclose such register to any city of
San Luis Obispo official upon request.
E.Reporting and Tracking of Product and of Gross Sales.Each commercial cannabis business shall have in place a
point-of-sale tracking system to track and to report on all aspects of the commercial cannabis business including,
but not limited to,such matters as cannabis tracking,inventory data,and gross sales (by weight and by sale)and
shall ensure that such information is compatible with the citys recordkeeping systems.The system must have the
capability to produce historical transactional data for review by the city of San Luis Obispo.All information
provided to the city pursuant to this subsection shall be confidential and shall not be disclosed,except as may
otherwise be required under law.
F.Maintenance of Records.All records required by this chapter shall be maintained by the commercial cannabis
business for a period of not less than seven years and shall otherwise keep accurate records of all commercial
cannabis business activity and provide such records for inspection consistent with this code or any rules the city
council may adopt by resolution or ordinance.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.140 Inspection and enforcement.
A.Unscheduled Inspection during Business Hours.The city manager or his/her designee and any other city of San
Luis Obispo official or inspector charged with enforcing any provisions of this code may enter a commercial
cannabis business at any time during the hours of operation without notice for the purpose of inspecting the
commercial cannabis business for compliance with the provisions of this code,the terms and conditions of the
commercial cannabis operator permit or any other city permit or state license,including inspection of the
recordings and records maintained pursuant to this chapter or the applicable provisions of state law.The right to
inspect under this section includes the right to copy recordings and records.
B.Interference with Inspection.It is unlawful for any person who owns,operates,manages or is employed by,or
has any responsibility over the operation of,a commercial cannabis business to refuse to allow,or to impede,
obstruct,or interfere with,an inspection by the city,or the city's review or copying of recordings (including audio
and video recordings)and records,or to conceal,destroy,alter or falsify any recordings or records.
C.Obtaining Samples.The city manager or his/her designee or any other person charged with enforcing the
provisions of this chapter may enter the location of a commercial cannabis business at any time during the hours
of operation and without notice to obtain samples of cannabis and cannabis products to test for law enforcement
and/or public safety purposes.Any samples obtained by the city of San Luis Obispo shall be logged,recorded,and
maintained in accordance with city of San Luis Obispo police department standards for evidence.At all other
times,the city manager or his/her designee may enter the location of a commercial cannabis business to obtain
samples of cannabis upon reasonable notice,as otherwise authorized by law or pursuant to a warrant.(0rd.1647
4 (Exh.A (part)),2018)
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 11 of 16
9.10.150 Outdoor commercial cannabis cultivation and activities
prohibited.
A.Outdoor Commercial Cultivation Prohibited.Outdoor commercial cannabis cultivation,including,but not limited
to,cultivation in greenhouses,hoop structures,and by mixed light (part daylight/part artificial light),is prohibited
and unlawful.This section prohibits all outdoor commercial cannabis cultivation,including cultivation for profit or
not-for-profit cultivation,and including commercial cultivation for adult recreational use or medicinal purposes.
For purposes of this section,outdoor cultivation of cannabis by cooperatives is prohibited.All commercial
cannabis cultivation shall be conducted only inside a fully enclosed structure by a person or entity with a
commercial cannabis operator permit,a city use permit,and appropriate state license(s).See also Section
17.86.080(E)(7)(c).
B.Outdoor Commercial Cannabis Activities Prohibited.Outdoor storage,harvesting,drying,processing,or
manufacturing of commercial cannabis or cannabis products is prohibited and unlawful.(Ord.1647 §4 (Exh.A
Darn).2018)
9.10.160 Indemnification,insurance,reimbursement,consent.
As a condition of approval of any commercial cannabis operator permit issued pursuant to this chapter,the
permittee shall,at a minimum:
A.Execute an agreement to protect,indemnify,defend (at its sole cost and expense with counsel approved by
city).and hold the city of San Luis Obispo and its officers,employees,attorneys,representatives,and agents
harmless from and against any and all claims,demands,losses,damages,injuries,costs,expenses (including
attorneys'fees),fines,penalties,or liabilities arising from,related to or associated with:the issuance of a
commercial cannabis operator permit or use permit;the permitting or approving the operation of a commercial
cannabis activity;the collection of any fees,taxes,or charges from a commercial cannabis business;the
commercial cannabis business’s or any of its owners’,operators’,managers’,employees’,or agents'violation of any
federal,state or local laws;the city's suspension,revocation or refusal to renew the commercial cannabis operator
permit.
B.Maintain insurance with standard city coverages and limits,but with additional conditions thereon as deemed
necessary by the city attorney.
C.Reimburse the city of San Luis Obispo for any and all costs,expenses,attorney fees,fines,penalties and court
costs that the city of San Luis Obispo may be required to pay as a result of any legal challenge related to the city’s
approval of a commercial cannabis operator permit pursuant to this chapter or any other city permit or the city of
San Luis Obispo’s approval of the operation of a commercial cannabis activity.The city of San Luis Obispo may,at
its sole discretion,participate at its own expense in the defense of any such action,but such participation shall not
relieve the obligations imposed under this chapter.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 1S,2021.
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 12 of 16
D.Consent to unscheduled inspections,production of records and recordings,and obtaining of samples of
cannabis and cannabis products by authorized city officials during normal operating hours as provided in this
chapter.(0rd.1647 §4 (Exh.A (part)).2018)
9.10.170 Compliance with laws.
The commercial cannabis business shall operate all times in compliance with all applicable state and local laws,
regulations,and any specific,additional operating procedures or requirements which may be imposed as
conditions of approval of the commercial cannabis operator permit or use permit or state license(s).Nothing in
this chapter shall be construed as authorizing any action which violates state law or local law with respect to the
operation of a commercial cannabis activity.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.180 Permit violation.
Compliance with all local and state cannabis-related laws shall be a condition of a city commercial cannabis
operator permit and it shall be a violation of a commercial cannabis operator permit for a permittee or his or her
agents or employees to violate any local or state cannabis-related law.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.190 Permit compliance monitoring.
Compliance with this chapter shall be monitored by the San Luis Obispo police department,code enforcement
staff and/or any other duly authorized agent of the city.Any compliance checks pursuant to this chapter shall be in
addition to any under any other ordinances,regulations or permits.At least four compliance checks of each
cannabis retailer shall be conducted during each twelve-month period.At least two compliance checks of each
commercial cannabis business other than a retailer shall be conducted during each twelve-month period.The cost
of compliance monitoring shall be incorporated into the annual renewal fee.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.200 Permit holder responsible for violations by employees or agents.
The responsible person and any entity to whom a commercial cannabis operator permit is issued pursuant to this
chapter shall be responsible for all violations of the regulations and ordinances of the city of San Luis Obispo
committed by the permittee or any employee or agent of the permittee,which violations occur in or about the
premises of the commercial cannabis business,even if the responsible person is not present.Violations by an
employee or agent may result in the termination or nonrenewal of the permit by the city.(0rd.1647 §4 (Exh.A
part)),2018)
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
Ch.9.10 Cannabis Regulations [San Luis Obispo Municipal Code Page 13 of 16
9.10.210 Consumption or use prohibited on site and in public—Cannabis
event prohibited.
A.It is unlawful for any person or entity:
1.To sell,give,exchange,dispense or distribute cannabis or cannabis products for on—site consumption,use
or sampling on any business premises;or
2.To consume or use cannabis or cannabis products,whether by smoking,vaping,inhaling,eating,drinking
or any other means:
a.In,on or about the premises of any commercial cannabis business;
b.In,on or about any publicly owned or operated property;any place open to or accessible by the
public;any place smoking is prohibited;or any place visible from any public place with normal unaided
vision;
c.In on or about any other business,club,cooperative or commercial event.regardless if open to the
public or only to members,ticket holders or event invitees;
d.Any location where an entry or other fee is charged to attendees or to the host or where a thing of
value or consideration is received or exchanged,directly or indirectly,for or related to the provision of
cannabis.
B.it is unlawful for any person to conduct a cannabis event in the city.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.220 Concurrent alcohol or tobacco sales or service prohibited.
A.No person shall dispense,serve,store,give away or consume,or cause or permit the sale,dispensing.serving,
giving away or consumption of alcoholic beverages or tobacco in or on the premises of a commercial cannabis
business.
B.No person shall conduct any commercial cannabis activity at any location where alcohol is sold or served.
0rd.1647 §4 (Exh.A (part)),2018)
9.10.230 Minors.
A Minors shall not be allowed on the premises of a commercial cannabis business having either an "A”or "M"
license,or both,even if accompanied by a parent or guardian.
B.No person under twenty-one years of age shall be allowed on the premises of a commercial cannabis
business having either an ”A”or "M"license or both.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021 .
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 14 of 16
C.Every entrance to an "A"or "M”licensed commercial cannabis business shall be clearly and legibly posted with
the following notice:"ENTRY ONTO THESE PREMISES BY PERSONS UNDER 21 YEARS OF AGE IS PROHIBITED BY
LAW.VALID PHOTO ID REQUIRED.”Each letter of the notice must be at least two inches high and clearly visible.
D.No person,business,or other entity conducting a commercial cannabis activity with either an "A"or “M"state
license shall employ any person who is not at least twenty-one years of age.(0rd.1647 §4 (Exh.A (part)).2018)
9.10.240 Sale of cannabis products or cannabis accessories by vending
machine prohibited.
A.No person shall locate,install,keep,maintain or use,or permit the location,installation,keeping,maintenance
or use on his,her or its premises of,any cannabis vending machine used or intended to be used for the purpose
of selling any cannabis products or cannabis accessories therefrom.
B.No person,business,or other entity shall sell,offer for sale,or display for sale any cannabis product by means
of a self-service display or vending machine.All cannabis products shall be offered for sale exclusively by means of
vendor/employee assistance.
C."Vending machine"means any electronic or mechanical device or appliance the operation of which depends
upon the insertion of money,whether in coin or paper bill,or debit or credit card,or other thing representative of
value,which device or appliance dispenses or releases cannabis,cannabis product(s)and/or cannabis accessories.
0rd.1647 §4 (Exh.A (part)),2018)
9.10.250 Security and public safety measures.
A.The city manager or his/her designee(s)is authorized to promulgate all regulations necessary to implement
the requirements and fulfill the purposes and policies of this chapter,including but not limited to enforcement,
background checks for applicants,approval and enforcement of a commercial cannabis activity security plan,
including audio and video recordings of operations,and verification of compliance.
B.Every commercial cannabis activity shall have a security plan approved by the chief of police or designee prior
to issuance of a city commercial cannabis operator permit.
C.Hours of Operation.
1.Retail Storefront Retail storefront commercial cannabis business shall not operate between the hours of
eight p.m.and nine a.m.
2.Retail Non-Storefront (Delivery Services).Retail non-storefront (delivery services)commercial cannabis
business shall not operate between the hours of ten p.m.and six a.m.
3.Commercial Other than Retail.All commercial cannabis activity other than retail is prohibited between the
hours of ten p.m.and seven a.m.(0rd.1647 §4 (Exh.A (part)),2018)
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 1S,2021 .
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 15 of 16
9.10.260 Limitations on city's liability.
The city shall not be liable for issuing,or failing or refusing to issue,suspending,revoking or failing to renew a
commercial cannabis operator permit pursuant to this chapter or othenNise approving or disapproving the
operation of any commercial cannabis business pursuant to this chapter.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.270 Fees deemed debt to city.
The amount of any fee,cost or charge imposed pursuant to this chapter shall be deemed a debt to the city of San
Luis Obispo that is recoverable in any court of competentjurisdiction.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.280 Violation and penalties.
A.Misdemeanor.Each violation of the provisions of this chapter shall be a misdemeanor and is punishable as
provided in Section 1 .12.030;provided,that where the city attorney determines that such action would be in the
interest ofjustice,he/she may specify in the accusatory pleading that the offense shall be an infraction.Any
violation of the provisions of this chapter by any person is also subject to administrative fines as provided in
Chapter fl.
B.Infraction Violation.Where the city attorney determines that,in the interest of justice,a violation of this
chapter is an infraction,such infraction is punishable by a fine not exceeding one hundred dollars for a first
violation,a fine not exceeding two hundred dollars for a second violation of the same provision within one year,
and a fine not exceeding five hundred dollars for each additional infraction violation of the same provision within
one year.
C.The fine amounts set forth above may be modified,from time to time,by city council resolution.In no event
shall such fine amounts exceed the amounts authorized by state law.
D.If the city of San Luis Obispo finds,based on substantial record evidence,that any person has engaged in
commercial cannabis activity in violation of this chapter,the city shall fine that person as follows:Each day that
person without a commercial cannabis operator permit offers cannabis or cannabis products for sale or exchange
shall constitute a separate violation and assessed a fine in accordance with Sections 1.12.080 and 1.24.070(A).
E.Each person committing,causing,or maintaining a violation of this chapter or failing to comply with the
requirements set forth herein shall be deemed guilty of a separate offense for each and every day during any
portion of which any violation of any provision of this chapter is committed,continued,maintained,or permitted
by such person and shall be punishable accordingly.
F.The violation of any provision of this chapter shall be and is hereby declared to be a public nuisance and
contrary to the public interest.Any public nuisance under this chapter may,at the citys discretion,be abated by
the city by civil process by means of a restraining order,preliminary or permanent injunction,or in any manner
provided bylaw for the abatement of such nuisance.The city shall also be entitled to recover its full reasonable
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021 .
Ch.9.10 Cannabis Regulations |San Luis Obispo Municipal Code Page 16 of 16
costs of abatement.The prevailing party in any proceeding associated with the abatement of a public nuisance
shall be entitled to recovery of attorneys’fees incurred in any such proceeding if the city has elected at the
initiation of that individual action or proceeding to seek recovery of its own attorneys’fees.
G.In lieu of issuing a criminal citation.the city may issue an administrative citation to any person responsible for
committing,causing or maintaining a violation of this chapter.Nothing in this section shall preclude the city from
also issuing a citation upon the occurrence of the same offense on a separate day.
H.The remedies set forth in this chapter are cumulative and in addition to any and all other remedies available
at law or equity,whether set forth elsewhere in the San Luis Obispo Municipal Code.or in state or federal laws,
regulations,or case law.In addition to other remedies provided by this chapter or by other law,any violation of
this chapter may be remedied by a civil action brought by the city attorney,including but not limited to
administrative orjudicial nuisance abatement proceedings,civil or criminal code enforcement proceedings,and
suits for injunctive relief.(0rd.1647 §4 (Exh.A (part)),2018)
9.10.290 Severability.
If any section,subsection,subdivision,paragraph.sentence,clause or phrase of this chapter is for any reason held
to be invalid or unenforceable,such invalidity or unenforceability shall not affect the validity or enforceability of
the remaining sections,subsections,subdivisions,paragraphs,sentences,clauses or phrases of this chapter or the
rules adopted hereby.The city council of the city of San Luis Obispo hereby declares that it would have adopted
each section,subsection,subdivision,paragraph,sentence,clause or phrase hereof.irrespective of the fact that
any one or more other sections,subdivisions,paragraphs,sentences,clauses or phrases hereof be declared
invalid or unenforceable.(0rd.1647 §4 (Exh.A (part)),2018)
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
Disclaimer:The City Clerk's Office has the official version of the San Luis Obispo Municipal Code.Users should
contact the City Clerk's Office for ordinances passed subsequent to the ordinance cited above.
Note:This site does not support Internet Explorer.To view this site,Code Publishing Company recommends using
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ml ..I
City Telephone:(805)781 -71 oo
Codefiuhlishmgfiomnany
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15.2021.
EXHIBIT 2
Office of the City Clerk
990 Palm Street.San Luis Obispo.CA 93401-3218
805.781.7100
slocnyorg
CERTIFICATION
I,Teresa Pum'ngton,City Clerk,do hereby certify under penalty of peljury the attached
document is a true and correct copy of the original now on file in my office.
WITNESS MY HAND AND THE SEAL 0F THE CITY 0F SAN LUIS OBISPO.
DATED:Janu_afl 25,2022
dmpmalk
Teresa Purrington,City Clerk
City of San Luis Obispo
17.86.080 Cannabis San Luis Obispo Municipal Code Page 1 of 11
17.86.080 Cannabis.
A.Purpose.The purpose of this section is to protect the public health,safety,and welfare,enact strong and
effective regulatory and enforcement controls in compliance with state of California law,protect neighborhood
character,and minimize potential for negative impacts on people,communities,and the environment within the
city of San Luis Obispo by establishing land use requirements and development standards for cannabis activities.
Cannabis activity,as defined in Section 17.156.008 (C Definitions),includes the cultivation,possession,
manufacturing,processing,storing,laboratory testing,labeling,transporting,distribution,delivery,or sale of
cannabis or a cannabis product for either personal or commercial use.Therefore,this section recognizes that
cannabis activities require land use controls due to state legal constraints on cannabis activity,and the potential
environmental and social impacts associated with cannabis activity.Nothing in this section is intended to affect or
alter federal law,which identifies marijuana (cannabis)as a Schedule l controlled substance.
B.Applicability.Nothing in this section shall be construed to allow any conduct or activity relating to the
cultivation,distribution,dispensing,sale.or consumption of cannabis that is otherwise illegal under local or state
law,statute,rule or regulation.It is neither the intent nor the effect of this chapter to condone or legitimize the
illegal use,consumption or cultivation of cannabis under state or local law and nothing herein is intended to
interpret,alter,interfere with or in any way affect otherwise applicable federal law.
C.Definitions.See Chapter Lisq,Land Use Definitions (Table 2-1:Uses Allowed by Zone).Terms used in this
section that are defined terms under state cannabis statutes or regulations shall have the same meaning as the
respective state definition,as now defined or as the definition may be amended by the state in the future,except
as othenNise specifically provided in Chapter Land Use Definitions (Table 2-1:Uses Allowed by Zone),or
Chapter Cannabis Regulations.
D.Personal Cultivation.
1.Indoor Personal Cultivation.indoor personal cultivation of cannabis does not require a permit and is
allowed in all private residences subject to all the following minimum performance standards:
a.All indoor personal cultivation shall occur only inside a private residence or fully enclosed and secure
accessory building or structure to a private residence.Accessory building or structure for indoor personal
cultivation of cannabis does not include a greenhouse or hoop structure.
b.Structures and equipment used for indoor cultivation,such as indoor grow lights,shall comply with
all applicable building,electrical and fire code regulations as adopted by the city.
c.All accessory buildings and structures used for indoor cultivation shall comply with the city’s zoning
regulations and building codes.
d.Indoor personal cultivation of cannabis may occur inside a dwelling and/or an accessory building or
structure.subject to the following restrictions:
The San Luis Obispo Municipal Code ls current through Ordinance 1702,passed November 15,2021 .
17.86.080 Cannabis |San Luis Obispo Municipal Code Page 2 of 11
i.The cumulative cultivation for cannabis shall not exceed six cannabis plants per private
residence.
ii.All personal cultivation shall be conducted by persons twenty-one years of age or older,and the
cumulative total of cannabis plants per private residence,indoor and outdoor,shall not exceed six
cannabis plants,regardless of the number of persons residing on the property.
e.Personal cultivation of cannabis shall not interfere with the primary occupancy of the building or
structure,including regular use of kitchen(s)or bathroomis).
f.Cannabis cultivation must be concealed from public view at all stages of growth and there shall be no
exterior evidence of cannabis cultivation occurring at the property visible with normal unaided vision
from any public place,or the public right-of—way.Personal cultivation of cannabis shall be shielded to
confine light and glare to the interior of the structure.
g.Nothing in this section is intended,nor shall it be construed,to preclude any landlord from limiting or
prohibiting personal cultivation of cannabis by tenants.
h.Nothing in this section is intended,nor shall it be construed,to authorize commercial cultivation of
cannabis at a private residence.
i.Personal cultivation of cannabis shall not create:offensive odors or excessive dust,heat,noise,light,
glare.smoke,traffic,or hazards due to the use or storage of materials,processes,products or wastes,or
other unreasonable impacts to persons of normal sensitivity who are living,working or lawfully present in
the vicinity of the personal cultivation.
j.Cannabis cultivation areas in a private residence shall be locked at all times when the cultivator is not
present.
2.Outdoor Personal Cultivation.Outdoor personal cultivation of cannabis does not require a permit and is
allowable at all private residences,subject to all of the following minimum performance standards:
a.Outdoor personal cultivation of cannabis is not permitted in the front yard between the public right-
of-way and the private residence.Outdoor personal cultivation is only permitted in a rear or side yard
that is entirely enclosed by a solid,opaque fence that is associated with a private residence used for
residential purposes.
b.The cannabis plants shall be placed at a minimum setback of five feet from the edge of canopy to the
property line.
c.Cannabis cultivation must be concealed from public view at all stages of growth and there shall be no
exterior evidence of cannabis cultivation occurring at the property visible by normal unaided vision from a
public place or the public right-of-way.Cultivation may occur within a greenhouse or hoop structure (as
long as it complies with the performance standards),but mixed light cultivation is prohibited.
d.All outdoor personal cultivation shall be conducted by persons twenty-one years of age or older.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
17.86.080 Cannabis San Luis ObiSpo Municipal Code Page 3 of 11
e.The cumulative total of cannabis plants cultivated outdoor shall not exceed six cannabis plants per
parcel containing a private residence,regardless of the number of persons residing on the property,and
regardless of the number of private residences on the parcel.
f.Nothing in this section is intended,nor shall it be construed.to preclude any landlord from limiting or
prohibiting cannabis cultivation by tenants.
g.Nothing in this section is intended,nor shall it be construed,to authorize commercial cultivation of
cannabis at a private residence outdoors.
h.Outdoor personal cultivation of cannabis shall not create:offensive odors or excessive dust,heat,
noise,light,glare,smoke,traffic,or hazards due to the use or storage of materials,processes,products or
wastes,or other unreasonable impacts to people of normal sensitivity living,working or lawfully present
in the vicinity of the personal cultivation.
E.Commercial Cannabis Businesses.
1.Commercial Cannabis Operator Permit.
a.No person or entity shall operate or conduct a commercial cannabis activity or commercial cannabis
business without first obtaining both a commercial cannabis operator permit from the city pursuant to
Chapter w,Cannabis Regulations,and a use permit from the city pursuant to this chapter to conduct
the commercial cannabis activity at a specific location.Any permit authorizing commercial cannabis
activity pursuant to this chapter shall be conditioned upon the holder obtaining and maintaining a city
commercial cannabis operator permit and the appropriate state license for the activity.
b.A commercial cannabis activity pursuant to this chapter may be transferred,assigned,or bequeathed,
by operation of law or otherwise as described in Section 9.10.120.
c.The commercial cannabis operator permit must be renewed each year.
d.Expiration of the use permit shall be consistent with Section 17.104.070.
2.No Vested Right to Operate.No person shall have any entitlement or vested right to operate a cannabis
business solely by virtue of licensing under these regulations.Operation of cannabis activity(ies)requires both
the approval of a conditional use permit and a commercial cannabis operator permit under Chapter fl,
which is a revocable privilege and not a right in the city.The applicant bears the burden of proving that all
qualifications for licensure have been satisfied and continuously maintained prior to conducting a cannabis
business at an othenNise allowed location within the city.
3.State Application Required.Filing a local application for cannabis activity(ies)with the city does not
constitute an application with the state of California.A separate state application and license process must be
followed through with the state.
4.Application Requiremens.All commercial cannabis activities require qualification through the commercial
cannabis operator selection approval process in Chapter 9.10,Cannabis Regulations,a state license and a use
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021 .
17.86.080 Cannabis |San Luis Obispo Municipal Code Page 4 of 11
permit for a specific location pursuant to this chapter.The application for a use permit shall include the
following information:
Site plan,floor plans,and a general description of the nature,square-footage,parking and type of
cannabis activity(ies)being requested.
b.
d.
An operations plan including:
i.A security plan to the approval of the chief of police,pursuant to criteria approved by resolution
of the city council,including but not limited to on-site security measures both physical and
operational and,if applicable.security measures for the delivery of cannabis associated with the
commercial cannabis business and payment of taxes and fees;
ii.Plan for restriction of access by minors;
iii.Employee safety and training plan;
iv.Odor,noise and light management plan;
v.Estimated energy usage and energy efficiency plan;
vi.Estimated water usage and water efficiency plans;
vii.Waste management plan;and
viii.For retail sales,provide an educational material dissemination plan.
Proposed signage:
i.Must comply with city's sign regulations for size,area and type of sign,no exceptions allowed.
ii.Internal illumination of signs is prohibited.
iii.No portion of the cannabis plant may be used in any sign visible from the public right-of-way.
iv.Provide sign size,height,colors,and design of any proposed signage at the site.
v.Must include a sign inside the premises that states:"Smoking,ingesting,vaping,eating or
consuming cannabis or cannabis products on this site or in a public place is prohibited."
vi.Must include a sign at each entrance of a retail storefront that prohibits persons under twenty-
one years of age from entering.
An analysis that demonstrates neighborhood compatibility and a plan for addressing potential
compatibility issues.
e.Applications for retail storefronts shall include a vicinity map showing at least one thousand feet of
surrounding area and the distances to the following uses:any preschool,elementary school,junior high
school,high school,public park or playground,six hundred feet from any licensed daycare center,and
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
17.86.080 Cannabis |San Luis Obispo Municipal Code Page 5 of 11
three hundred feet from a residentially zoned area.Youth centers do not require a buffer.Distance shall
be measured from the nearest point of the property line of the site that contains the commercial
cannabis activity to the nearest point of the property line of the enumerated use using a direct straight-
line measurement.
f.Proof of ownership,option to purchase,(or lease agreement or option to lease with landowner's
express written consent to the proposed commercial cannabis activity(ies)to be conducted on the
premises)or other proof of right to apply for the permit at the location.
g.A list of all other uses on the property.
5.Commercial Cannabis Development Standards.Each cannabis business is required to meet the following
standards:
a.Qualification through the Chapter fl,Cannabis Regulations,commercial cannabis operator
selection process to apply for a commercial cannabis operator permit.Submittal of a use permit
application to conduct the commercial cannabis business within the zones specified for each type of
commercial activity listed below.
b.Commercial cannabis facilities shall be allowed in areas demarcated with CAN overlay zoning and as
allowed in the underlying zone for each type of commercial cannabis activity.
c.All commercial cannabis facilities shall be sited and/or operated in a manner that prevents cannabis
odors from being detected off site.Commercial cannabis activities shall not create offensive or excessive
odors,dust,heat,noise,light,glare,smoke,traffic,or hazards due to the use or storage of materials,
processes,products or wastes,or other unreasonable impacts to people of normal sensitivity living,
working or lawfully present in the vicinity of the commercial facility.
d.All commercial cannabis operations must be concealed from public view at all times and there shall
be no exterior evidence of cannabis or cannabis products occurring at the property visible with normal
unaided vision from any public place,or the public right-of-way.Commercial manufacturing of cannabis
or cannabis products shall be shielded to confine light and glare to the interior of the structure.
e.All commercial cannabis facilities shall include adequate measures that address enforcement
priorities for commercial cannabis activities,including restricting access to the public and to minors and
ensuring that cannabis and cannabis products are only obtained from and supplied to other permitted
licensed sources within the state and not distributed out of state.
f.The use permit to be issued under this chapter shall include,but is not limited to,the following
conditions:
i.The obtaining and maintaining of the commercial cannabis operator permit and appropriate
state license.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 1S,2021.
17.86.080 Cannabis San Luis Obispo Municipal Code Page 6 of 11
ii.Payment of all applicable current and future state and local taxes and all applicable commercial
cannabis fees and related penalties established by the city council,including but not limited to
application,administrative review,inspection,etc.
iii.The commercial cannabis operator permit or a controlling interest in the permit may not be
assigned,transferred or bequeathed,by operation of law or otherwise,unless permitted as described
in Chapter 9.10,and the permit shall terminate automatically on such event.
iv.Any commercial cannabis operator permit issued pursuant to this chapter and Chapter 9.10
expires after one year,unless renewed.
v.Prohibition of on~site consumption of cannabis at:(A)at a commercial cannabis business or
commercial cannabis activity location;(B)any other business,club or cooperative or event,regardless
if open to the public or only to members;and (C)anywhere an entry or other fee is charged to
attendees or the host or thing of value or consideration is received or exchanged.
vi.Prohibition of the possession,storage,sale,distribution or consumption of alcoholic beverages
on the premises,or the holding of license from the State Division of Alcoholic Beverage Control for
the sale of alcoholic beverages,or operating a business that sells alcoholic beverages on or adjacent
to the commercial cannabis activity site.
vii.No cannabis products or cannabis accessories may be displayed in windows or visible from the
public right-of-way or from places accessible to the general public.
viii.Prohibition of minors and persons under the age of twenty-one on the premises,even if
accompanied by a parent or guardian.
ix.Outdoor storage of cannabis or cannabis products is prohibited.
6.Commercial Cultivation.
a.Commercial Cannabis Cultivation.Commercial cannabis cultivation may be conditionally permitted
indoors only,subject to the requirements of this section and the obtaining and maintaining of a
commercial cannabis operator permit pursuant to Chapter fl,Cannabis Regulations,and appropriate
state license,in the following zones:
i.Service commercial (C-S);
ii.Manufacturing (M);
iii.Business park (BP).
b.A maximum of seventy thousand square feet of cumulative canopy area (includes total canopy of
either horizontal or vertical growing situations)for cultivation and nurseries shall be allowed for indoor
commercial cannabis cultivation in the city within the zones identified above,including microbusinesses
under subsection EXLZ)of this section.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
17.86.080 Cannabis |San Luis Obispo Municipal Code Page 7 of 11
c.Outdoor commercial cannabis cultivation,including but not limited to cultivation in greenhouses,
hoop structures,and by mixed light (part daylight/part artificial light),is prohibited.All commercial
cannabis cultivation shall be conducted only inside a fully enclosed,legally permitted structure that meets
all applicable building and other codes.
d.Commercial cannabis cultivation conditional permits include the following:
i.Specialty Cultivator.A maximum of no more than five thousand square feet of canopy of indoor
cultivation (either in horizontal or vertical growing situations)and includes processing.
ii.Small Cultivator.A maximum of no more than ten thousand square feet of canopy of indoor
cultivation (either in horizontal or vertical growing situations)and includes processing.
iii.Nursery,Cannabis.A maximum of no more than ten thousand square feet of indoor propagation
area (either in horizontal or vertical growing situations).
e.DevelopmentStandards.
i.Compliance with subsection (E)(5)of this section,Commercial Cannabis Development Standards.
ii.CanOpy areas shall be easily identifiable for inspection and measurement.Each unique area
included in the total canopy calculation shall be separated by an identifiable boundary such as an
interior wall or by at least ten feet of open space (see ”Canopy"definition in Chapter 17.156).
iii.All indoor cannabis cultivation shall be designed to accomplish zero net energy use from the start
of the operation.
iv.Pesticides and fertilizers shall be properly labeled,stored,and applied to avoid and prevent
contamination through erosion,leakage,or inadvertent damage from rodents,pests,or wildlife.
7.Manufacturing.
a.Manufacturing (Nonvolatile)Permissible.Nonvolatile cannabis or cannabis products manufacturing
may be conditionally permitted indoors only,subject to the requirements of this section and the obtaining
and maintaining of a commercial cannabis operator permit pursuant to Chapter w,Cannabis
Regulations,and appropriate state license,in the following zones:
i.Service commercial (C-S);
ii.Manufacturing (M);
iii.Business park (BP).
b.Manufacturing (Volatile)Prohibited.Cannabis or cannabis products manufacturing involving volatile
solvents,processes,compounds or substances is prohibited.
c.DevelopmentStandards.
i.Compliance with subsection (E)(5)of this section,Commercial Cannabis Development Standards.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
17.86.080 Cannabis San Luis Obispo Municipal Code Page 8 of 11
ii.Outdoor manufacturing of cannabis or cannabis products is prohibited.
iii.A complete description of all products used in the manufacturing process including the cannabis
supply chain,liquids,solvents,agents,and processes.
iv.Storage protocol and hazard response plan.
v.Employee safety and training equipment plan,plus materials safety data sheet requirements,if
any.
8.Distribution.
a.Commercial cannabis distribution may be conditionally permitted,subject to the requirements of this
section and the obtaining and maintaining of a commercial cannabis operator permit pursuant to Chapter
9.10,Cannabis Regulations,and appropriate state license,in the following zones:
i.Service commercial (C-S);
ii.Manufacturing (M);
iii.Business park (BP);
b.DevelopmentStandards.
i.Compliance with subsection LXS)of this section,Commercial Cannabis Development Standards.
9.Testing Laboratory.
a.Commercial cannabis testing may be conditionally permitted,subject to the requirements of this
section and the obtaining and maintaining of a commercial cannabis operator permit pursuant to Chapter
9.10,Cannabis Regulations,and appropriate state license,in the following zones:
i.Service commercial (C-S);
ii.Manufacturing (M);
iii.Business park (BP);
iv.Office (0).
b.DevelopmentStandards.
i.Compliance with subsection of this section,Commercial Cannabis Development Standards.
ii.The cannabis testing laboratory,as proposed,will comply with all the requirements of the state
for the testing of cannabis,including dual licensure and participation in an authorized track-and-trace
program.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 1S,2021.
17.86.080 Cannabis l San Luis Obispo Municipal Code Page 9 of 11
iii.The owners,investors,permittees,operators,and employees of the cannabis testing laboratory
will not be associated with,nor have any financial interest in,any other form of commercial cannabis
activity.
iv.The cannabis testing laboratory is accredited by an appropriate accrediting agency as approved
by the state and further described in Health and Safety Code Section 5238 and as it may be amended.
v.The cannabis testing laboratory operating plan demonstrates proper protocols and procedures
for statistically valid sampling methods and accurate certification of cannabis and cannabis products
for potency,purity,pesticide residual levels.mold,and other contaminants according to adopted
industry standards.
10.Retail—Storefront.
a.Commercial cannabis storefront retail may be conditionally permitted,subject to the requirements of
this section and the obtaining and maintaining of a commercial cannabis operator permit,and the
appropriate state license,in the following zones:
i.Retail commercial (C-R);
ii.Service commercial (C-S);
b.Development Standards.
i.Compliance with subsection of this section,Commercial Cannabis Development Standards.
ii.Only three retail storefronts,which must front arterial streets,will be allowed within the city.
Selection of the retail commercial cannabis operator will be selected from qualified commercial
cannabis operators as set forth in Chapter Cannabis Regulations.One of the retail storefronts
shall have a medicinal license and may also have an adult use license.
iii.Retail storefronts shall be located at least one thousand feet from any preschool,elementary
school,junior high school,high school,public park or playground,six hundred feet from any licensed
day care center,and three hundred feet from any residentially zoned area.Youth centers do not
require a buffer.Distance shall be measured from the nearest point of the property line to the
nearest point of the property line of the enumerated use using a direct straight~line measurement.
iv.Retail storefronts must be separated from each other by at least one thousand feet.
v.Hours of operation shall be limited between nine a.m.to eight p.m.
vi.Must include a sign at each entrance of a retail storefront that prohibits persons under twenty-
one years of age from entering.
1 1 .Retail—Non-Storefront (Delivery Services).
a.Commercial cannabis non-storefront retail may be conditionally permitted,subject to the
requirements of this section and the obtaining and maintaining of a commercial cannabis operator
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
17.86.080 Cannabis |San Luis Obispo Municipal Code Page 10 of 11
12.
permit pursuant to Chapter 9.10,Cannabis Regulations.and the appropriate state license,in the following
zones:
i.Service commercial (C-S);
ii.Manufacturing (M);
iii.Business park (BP).
b.Development Standards.
i.Compliance with subsection fig of this section,Commercial Cannabis Development Standards.
ii.Hours of delivery shall be limited between six a.m.to ten p.m.
Microbusiness.
a.Microbusinesses fall into two groups as described below and may be conditionally permitted.subject
to the requirements of this section and the obtaining and maintaining of a commercial cannabis operator
permit pursuant to Chapter 9.10,Cannabis Regulations,and the appropriate state license,in the following
zones:
i.Microbusinesses with no more than fifty percent of the gross receipts being from cultivation,
distribution and manufacturing are allowed in the following zones:
a)Retail commercial (C-R).
ii.Microbusinesses with no more than fifty percent of the gross receipts being from storefront retail
sales are allowed in the following zones:
a)Manufacturing(M):
b)Business park (BP).
iii.Microbusinesses located in the service commercial (C-S)zone are not limited by gross sales
receipts from cultivation,distribution,manufacturing or retail sales.
b.Microbusinesses are subject to the seventy thousand square feet of canopy cultivation citywide
limitation (either in horizontal or vertical growing situations)and the limit of three retail storefronts
fronting arterial streets citywide set forth in subsection (E)(10)of this section.
c.DevelopmentStandards.
i.Compliance with subsection (E)(S)of this section,Commercial Cannabis Development Standards.
ii.A maximum of seventy thousand square feet of cumulative canopy for cultivation and nurseries
shall be allowed for indoor cultivation in the city within the allowed land use zones.
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
17.86.080 Cannabis |San Luis Obispo Municipal Code Page 11 of 11
iii.All indoor cannabis cultivation shall be designed to accomplish zero net energy use from the start
of the operation.
iv.Pesticides and fertilizers shall be properly labeled,stored,and applied to avoid and prevent
contamination through erosion,leakage,or inadvertent damage from rodents,pests,or wildlife.
v.Only three retail storefronts,which must front arterial streets,will be allowed within the city.
Selection of the retail commercial cannabis operator will be selected from qualified commercial
cannabis operators as set forth in Chapter w,Cannabis Regulations.One of the retail storefronts
shall have a medicinal license and may also have an adult use license.
vi.Any microbusiness with a retail storefront shall require a planning commission use permit.
vii.Retail storefronts shall be located at least one thousand feet from any preschool,elementary
school,junior high school,high school,public park or playground,six hundred feet from any licensed
day care center,and three hundred feet from any residentially zoned area.Youth centers do not
require a buffer.Distance shall be measured from the nearest point of the property line to the
nearest point of the property line of the enumerated use using a direct straight-line measurement.
viii.Retail storefronts must be separated from each other by at least one thousand feet.
ix.Hours of retail shall be limited to between nine a.m.to eight p.rn.and delivery shall be limited to
between six a.m.to ten p.m.
x.Must include a sign at each entrance of a retail storefront that prohibits persons under twenty-
one years of age from entering.(0rd.1647 §5 (Exh.B),2018)
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 15,2021.
Disclaimer:The City Clerk's Office has the official version of the San Luis Obispo Municipal Code.Users should
contact the City Clerk's Office for ordinances passed subsequent to the ordinance cited above.
Note:This site does not support Internet Explorer.To view this site,Code Publishing Company recommends using
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I.
City Telephone:(805)781-7100
The San Luis Obispo Municipal Code is current through Ordinance 1702,passed November 1 S,2021.
EXHIBIT 3
PROOF OF SERVICE
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BEST BEST &KRIEGER LLPATTORNEYS AT LAW18101VON
KARMAN AVENUE,SUITE 1000IRVINE,CALIFORNIA 92612Proof of Service By Overnight Delivery I am a citizen of the
United States and employed in Orange County, California. I am over the age of eighteen years and not
a party to the within-entitled action. My business address is 18101 Von Karman
Avenue, Suite 1000, Irvine, California 92612. On January 28, 2022, I deposited with Federal
Express, a true and correct copy of the within
document(s): REQUEST FOR JUDICIAL NOTICE IN SUPPORT OF
OPPOSITION TO PLAINTIFF NHC SLO, LLC’S EX
PARTE APPLICATION FOR
TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW
CAUSE RE:
PRELIMINARY INJUNCTION in
a sealed envelope, addressed as
follows: John Armstrong Armstrong
Law Group 23232 Peralta
Drive, Suite
102 Laguna Hills, CA
92653 Tel. 949-942-6069 john@armstronglawgroup.co Attorneys for Petitioner/Plaintiff Following
ordinary business practices, the envelope was sealed and placed for collection by Federal Express on this date,
and would, in the ordinary course of business,
be retrieved by Federal Express for overnight delivery on this date. I declare under penalty of perjury
under the laws of
the State of California that the above is
true and