HomeMy WebLinkAboutO-1728 amending Chapter 9.10 (Cannabis Regulations) adding requirements for owners that lease real property to commercial cannabis operators (CODE-0164-2023)O 1728
ORDINANCE NO. 1728 (2023 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING CHAPTER 9.10 (CANNABIS
REGULATIONS) OF THE MUNICIPAL CODE ADDING REQUIREMENTS
FOR OWNERS THAT LEASE REAL PROPERTY TO COMMERCIAL
CANNABIS OPERATORS (CODE-0164-2023)
WHEREAS, after commencing administration and operation of the commercial
cannabis program, staff has identified necessary changes to Chapter 9.10 of the
Municipal Code to clarify the requirements for owners that lease real property to
commercial cannabis operators; and
WHEREAS, the City Council of the City of San Luis Obispo on May 2 , 2023 in the
City Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California,
considered the recommended changes to Chapter 9.10 of the Municipal Code and held
a public meeting to review and discuss the proposed changes.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Section 9.10.070 – Commercial cannabis operator permit application
procedures and requirements of the San Luis Obispo Municipal Code is hereby amended
as reflected in Exhibit A to read as follows:
A. Application. A person shall apply for a commercial cannabis operator permit by
submitting an application to the city during the annual application period. 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 except as otherwise prohibited by this
chapter.
B. Application Submittal 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, except as otherwise
prohibited by this chapter. The commercial cannabis operator permit will be
valid for twelve months. Once a permit is activated, the applicant can apply
annually for renewal. There is no guarantee that an applicant will receive a
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commercial cannabis operator 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 who 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, including the property owner of record, has been
convicted of a felony or offense referenced in Business and Professions
Code Section 26057, or of any other crime related to the application for or
operation of a cannabis business; 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 26057 or for any other
criminal misconduct related to the application for or operation of a cannabis
business; or has been disqualified from obtaining, or has had a commercial
cannabis license suspended or revoked by the state of California or any city
or county in any state for misconduct related to a cannabis business. The
foregoing restrictions shall apply within the five years preceding the date the
application is filed, and for any additional period of time during which an
applicant 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, disqualification, suspension or revocation of a
cannabis permit or license, may be engaged (actively or passively) in the
application for, or operation, management or ownership of any commercial
cannabis business or leasing of any real property to 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.
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4. The applicant made one or more false or misleading statements or
omissions in the application process. The foregoing shall result in
immediate notice of automatic disqualification of the application, and/or
revocation of any permit issued to the applicant as the result of the
misleading statements or omissions.
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 twenty-four months of issuance. The permit is activated by
the issuance of a use permit for the commercial cannabis activity pursuant to
Chapter 17.86, 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. In the event that a permit holder fails to timely activate the permit and
the permit lapses, the cannabis business shall be required to submit a new
application, unless otherwise prohibited from doing so under this chapter. (Ord.
1722 § 2, 2022; Ord. 1673 §§ 1, 2 (Exh. A), 2020; Ord. 1647 § 4 (Exh. A (part)),
2018)
SECTION 2. Ordinance No. 1722 (2022 Series) is hereby amended and
superseded to the extent inconsistent herewith.
SECTION 3. Environmental Review. The California Environmental Quality Act
CEQA) does not apply to the recommended action in this repot because the action does
not constitute a “Project” under CEQA Guidelines Sec. 15378. The adoption of the
cannabis regulatory changes is an administrative activity of a government agency that will
not result in direct or indirect physical impact on the environment.
SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforcement of the remaining portions of this Ordinance, or any other provisions of the
city' s rules and regulations. It is the city' s express intent that each remaining portion
would have been adopted irrespective of the fact that any one or more subdivisions,
paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
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SECTION 5. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final
passage, in The Tribune, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the 2nd day of May 2023, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 16th day of May 2023, on the following vote:
AYES: Council Member Francis, Pease, Shoresman, Vice Mayor Marx, and
Mayor Stewart
NOES: None
ABSENT: None
___________________________
Mayor Erica A. Stewart
ATTEST:
___________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
____________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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Chapter 9.10 CANNABIS REGULATIONS
9.10.010 Purpose and intent.
9.10.020 Definitions.
9.10.030 Personal cultivation limited.
9.10.040 Commercial cannabis/city permit and state license required.
9.10.050 Regulations and fees.
9.10.060 Display and production of permits.
9.10.070 Commercial cannabis operator permit application procedures and
requirements.
9.10.080 Renewal of permit.
9.10.090 Suspension or revocation of permit.
9.10.100 Appeal.
9.10.110 Right to occupy and to use property for commercial cannabis activity.
9.10.120 Prohibition on transfer of commercial cannabis operator permits.
9.10.130 Records and reports.
9.10.140 Inspection and enforcement.
9.10.150 Outdoor commercial cannabis cultivation and activities prohibited.
9.10.160 Indemnification, insurance, reimbursement, consent.
9.10.170 Compliance with laws.
9.10.180 Permit violation.
9.10.190 Permit compliance monitoring.
9.10.200 Permit holder responsible for violations by employees or agents.
9.10.210 Consumption or use prohibited on site and in public—Cannabis event
prohibited.
9.10.220 Concurrent alcohol or tobacco sales or service prohibited.
9.10.230 Minors.
9.10.240 Sale of cannabis products or cannabis accessories by vending machine
prohibited.
9.10.250 Security and public safety measures.
9.10.260 Limitations on city’s liability.
9.10.270 Fees deemed debt to city.
9.10.280 Violation and penalties.
9.10.290 Severability.
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.
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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. (Ord. 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 26001 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 17.156. In the
event of conflict in the definitions, the definitions in Chapter 17.156 shall control; provided
the terms defined in subsection B 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. “Applicant” means the individual or entity applying for the commercial cannabis
business operator permit, including each entity or individual identified as part of
the applicant team or who is an owner or principal of an entity applying for a permit.
2. “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.
3. “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.
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4. “Financial interest holder” means a person or entity (other than a social equity
owner) who has less than a ten percent aggregate ownership interest in the
commercial cannabis business, has no active or passive direction, control, or
management of the commercial cannabis business, and otherwise meets the
definitions of financial interest holder as set forth in the Department of Cannabis
Control Medicinal and Adult-Use Commercial Cannabis Regulations, California
Code of Regulations Title 4 Division 19, Department of Cannabis Control. For
purposes of this chapter, the aggregate ownership threshold herein shall
supersede any current (twenty percent) or subsequently amended state threshold
for a financial interest holder.
5. “Majority” means more than half. An equal number does not constitute a
majority.
6. “Operator” means an applicant that has been permitted and conducts or
conducted active cannabis operations in the city.
7. “Owner” means any of the following:
a. A primary principal;
b. A social equity owner;
c. Any person or entity engaged actively or passively in the direction,
control, or management of any commercial cannabis business;
d. If available evidence indicates that an individual qualifies as an owner,
the city may notify the applicant or licensee that it must either: (i) disclose
the individual or entity as an owner and submit written acknowledgement
that the owner will be subject to the requirements of the application and this
chapter; or (ii) produce a written attestation under oath, along with any
supporting documentation, demonstrating that the individual does not
qualify as an owner.
8. “Principal(s)” means the individual(s), entities, and/or individual members of
any entity, identified as part of the applicant team in the commercial cannabis
operator permit application.
9. “Primary principal” means an individual or entity that has a ten percent or
greater ownership interest, or has an immediately actionable entitlement to such
interest, in the applicant business, commercial cannabis business, including, but
not limited to, partners, members, officers, directors, and stockholders of every
corporation, limited liability company, or general or limited partnership that owns,
or has an immediately actionable entitlement to, at least ten percent of the stock,
capital, profits, voting rights, or membership interest of the commercial cannabis
business or that is one of the partners in the commercial cannabis business.
Managers of a commercial cannabis business with the authority to establish,
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modify or control operational and policy directives and/or business operations
plans for the business, whether by means of ownership or contractual authority,
shall also be considered primary principals. On-site retail managers without such
authority shall be considered employees and not primary principals.
10. “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.
11. “Social equity owner” means the principal(s) of a commercial cannabis
business with two percent equity or higher who earned at or below the median
household income at the time the operator’s commercial cannabis operator permit
application was approved by the city.
12. “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. (Ord. 1722 § 1, 2022; Ord.
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 Plants 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.
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C. No Outdoor Cultivation on Parcel without Private Residence. It 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.
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. (Ord. 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. (Ord. 1647 § 4 (Exh. A (part)), 2018)
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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. (Ord.
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. (Ord. 1647 § 4 (Exh. A (part)), 2018)
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 to the city during the annual application period. 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 except as otherwise prohibited by this chapter.
B. Application Submittal 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, except as otherwise prohibited by this chapter. The commercial cannabis operator
permit will be valid for twelve months. Once a permit is activated, the applicant can apply
annually for renewal. There is no guarantee that an applicant will receive a commercial
cannabis operator 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
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commercial cannabis operator permit and even an applicant who 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, including the property owner of record, has been convicted of a
felony or offense referenced in Business and Professions Code Section 26057, or
of any other crime related to the application for or operation of a cannabis business;
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 26057
or for any other criminal misconduct related to the application for or operation of a
cannabis business; or has been disqualified from obtaining, or has had a
commercial cannabis license suspended or revoked by the state of California or
any city or county in any state for misconduct related to a cannabis business. The
foregoing restrictions shall apply within the five years preceding the date the
application is filed, and for any additional period of time during which an applicant
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,
disqualification, suspension or revocation of a cannabis permit or license, may be
engaged (actively or passively) in the application for, or operation, management or
ownership of any commercial cannabis business or leasing of any real property to
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 foregoing shall result in immediate notice of
automatic disqualification of the application, and/or revocation of any permit issued
to the applicant as the result of the misleading statements or omissions.
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.
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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 twenty-four months of
issuance. The permit is activated by the issuance of a use permit for the commercial
cannabis activity pursuant to Chapter 17.86, 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. In the event that a permit holder fails to timely activate the permit and the permit
lapses, the cannabis business shall be required to submit a new application, unless
otherwise prohibited from doing so under this chapter. (Ord. 1722 § 2, 2022; Ord. 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 have 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.
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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.
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. Effect of Rejection of Application 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. (Ord. 1691 § 1, 2021; Ord. 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.
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C. Upon a finding by the city of a third permit violation within any five-year period, the
permit shall be revoked.
D. Notwithstanding the foregoing, upon finding, at any time following activation of a
permit and operation of a cannabis business, of any violation of criminal or regulatory
misconduct that would have precluded the issuance of a cannabis permit or state license,
or upon a finding that the applicant or owner provided false or misleading information in
the commercial cannabis operator permit application that resulted in the issuance of any
operator permit, the permit and right to operate a cannabis business shall be revoked
immediately, subject to appeal as set forth in Section 9.10.100(B).
E. Notwithstanding the foregoing, upon finding, at any time prior to activation of a permit,
of any violation of criminal or regulatory misconduct that would have precluded the
issuance of a cannabis permit or state license, or upon a finding that the applicant or
owner provided false or misleading information in the commercial cannabis operator
permit application that resulted in the issuance of any operator permit, the permit shall be
revoked immediately, subject to notice and informal appeal as set forth in Section
9.10.100(E). (Ord. 1722 § 3, 2022; Ord. 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 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 1.20.
C. Effect 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.
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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.
E. Revocation—Prior to Operator Permit Activation. A decision of the city to void, nullify
or terminate an operator permit before the operator permit has been activated in
accordance with Section 9.10.090(E) shall be the final action of the city and not
appealable, except as set forth in this section. If the date of discovery is prior to activation
of the operator permit, the applicant shall be provided notice of automatic disqualification
and voidance/nullification/termination of the operator permit and given an opportunity to
respond to the determinations in writing and/or in an informal hearing before the city
manager, upon written request within ten days following notification. The determination
of the city manager shall be final with no further right of appeal. (Ord. 1722 § 4, 2022;
Ord. 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. (Ord. 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 or Assignment Prohibited. It shall be unlawful and a violation of this chapter
to encumber, mortgage, lien, hypothecate, give, bequeath, sell, assign or transfer, by
operation of law or otherwise, any portion of the ownership, financial interest, 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 transfer or other action described in this section, the commercial
cannabis operator permittee proposing such an action shall:
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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 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. Three-Year Moratorium on Majority Transfer of Ownership. Notwithstanding any other
provision of this section, for three years following the date on which the commercial
cannabis business activates its commercial cannabis operator permit in accordance with
Section 9.10.070(D), no transfer of an aggregate ownership interest of fifty percent or
more in a commercial cannabis operator permit will be permitted to any person or
combination of persons who were not applicants, owners or financial interest holders of
the permit at the time that a commercial cannabis operator permit was awarded. This
restriction shall be cumulative, as to each commercial cannabis operator permit. No
transfer of any interest is permitted in a commercial cannabis business prior to activating
the commercial cannabis operator permit.
D. Prohibition Against Obtaining Ownership in More Than One Storefront Cannabis
Dispensary. Notwithstanding any other provision of this section, it shall be unlawful and
a violation of this chapter for an owner, permit holder, or financial interest holder of a
commercial cannabis retail storefront in the city to be a owner, permit holder, or financial
interest holder in any other commercial cannabis retail storefront in the city.
E. Prohibition Against Social Equity Owner Reductions. Notwithstanding any other
provision of this section, any transfer of ownership within three years of permit activation
that will result in the reduction or elimination of the total number of social equity owners
or percentage interest of social equity ownership in a commercial cannabis business from
the number or ownership percentage proposed in the original commercial cannabis
operator permit applications is prohibited. This prohibition shall include the internal
transfer of ownership from one currently permitted operator to another, and transfers of
social equity owner interests of any kind require both prior notice and approval of the city
to verify compliance with this section. Thereafter, any transfer, at any time, that would
result in reduction of the total number of social equity owners proposed in the original
application, or that would result in the total social equity ownership percentage in a
commercial cannabis business to be reduced below a minimum of two percent, shall be
prohibited.
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F. Owner and Financial Interest Disclosure. Notwithstanding any other provision of this
section, all owners and financial interest holders in any commercial cannabis business
shall be disclosed to the city in the application for the operator permit. Any changes to
commercial cannabis business owners or financial interest holders shall be disclosed to
the city when notification is given to the state.
G. Assignment Null and Void. Any attempt to transfer, sell, assign, give, or lien, or any
transfer, by operation of law or otherwise, or any failure to disclose information as required
by this chapter, is prohibited and a violation of this chapter, subject to such penalties
provided under this chapter or as otherwise provided for violation of the municipal code.
Any completed transfer, sale, assignment, gift, or lien, of a commercial cannabis operator
permit issued pursuant to the chapter, is prohibited. Any such action immediately shall
void, nullify and/or terminate the commercial cannabis operator permit, which shall be of
no further force or effect as of the date of any prohibited transfer, sale, assignment, gift
or lien. (Ord. 1722 § 5, 2022; Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.130 Records and reports.
A. City Access to Records. Subject to the Health Insurance Portability and Accountability
Act (HIPAA) 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.
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.
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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 city’s 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. (Ord. 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.
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D. Violation and Enforcement Any Time During Application and Permitting Process.
Notwithstanding any initial verification of compliance of the commercial cannabis operator
permit application and commercial cannabis activity with the provisions of this chapter,
any commercial cannabis business later found to be in violation of any of the requirements
of this chapter at any time during, throughout and after the application and permitting
process is subject to the enforcement provisions provided in this chapter. (Ord. 1722 §
6, 2022; Ord. 1647 § 4 (Exh. A (part)), 2018)
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 (part)), 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.
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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.
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. (Ord. 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. (Ord. 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. (Ord. 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. (Ord. 1647 § 4 (Exh. A (part)), 2018)
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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. (Ord. 1647 § 4 (Exh. A (part)), 2018)
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. (Ord. 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. (Ord. 1647 § 4 (Exh. A (part)), 2018)
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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.
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. (Ord. 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. (Ord.
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.
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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. (Ord. 1647 § 4 (Exh. A
(part)), 2018)
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
otherwise approving or disapproving the operation of any commercial cannabis business
pursuant to this chapter. (Ord. 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 competent
jurisdiction. (Ord. 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 of justice, 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
1.24.
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.
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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 city’s discretion, be abated by the city by civil process by means of a
restraining order, preliminary or permanent injunction, or in any manner provided by law
for the abatement of such nuisance. The city shall also be entitled to recover its full
reasonable 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 or judicial nuisance abatement proceedings, civil or criminal code
enforcement proceedings, and suits for injunctive relief. (Ord. 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. (Ord. 1647 § 4 (Exh. A (part)), 2018)
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