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HomeMy WebLinkAboutORD 1329ORDINANCE NO. 1329 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE AMENDMENT AMENDING PALM DESERT MUNICIPAL CODE CHAPTERS 25.34.120, 25.16 AND 25.18 TO ALLOW COMMERCIAL CANNABIS OPERATIONS IN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ESTABLISH CHAPTERS 5.101 COMMERCIAL CANNABIS REGULATORY PERMITS AND 8.38 PERSONAL USE OF CANNABIS CASE NO: ZOA 17-027 WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of comprehensive zoning regulations and other land use regulations lies within the City's police powers; and WHEREAS, California has adopted, through ballot initiative, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) to regulate the adult personal and commercial use of cannabis, pursuant to local authority preserved in the AUMA; and WHEREAS, the City Council established an Ad Hoc Cannabis Committee, comprised of industry representatives, community members, and City staff, to review a potential cannabis ordinance and to make recommendations for changes to the City's Municipal Code to allow and regulate cannabis businesses; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 1st day of August 2017, hold a duly noticed public hearing to consider changes to the City's Zoning Ordinance to allow cannabis businesses in the City subject to approval of a Conditional Use Permit and certain regulations and adopted a resolution recommending approval of the changes to the municipal code to the City Council; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 24th day of August, 2017, hold a duly noticed public hearing to consider changes to the Municipal Code of the City of Palm Desert, and continued the request until September 71h, 2017; and subsequently continued the request until September 28th, 2017, to allow additional time to separate the proposed ordinance changes and to distinguish between personal and commercial cannabis use; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 28th day of September, consider the proposed changes to the Palm Desert Municipal Code to establish land use and business regulations for personal and commercial cannabis use and operations and continued the request to their meeting of October 12, 2017, and directed staff to limit the total number of permits available for retail cannabis, to limit the total number of retail cannabis business on El Paseo, to expand the definition of testing and research facilities, to incorporate language requiring Code Covenant and Restrictions (CC&Rs) review; and ORDINANCE NO. 1329 WHEREAS, the requirements established in the ordinance ensure that cannabis businesses can operate in the City in a safe and limited manner, subject to review and approval of a Conditional Use Permit by the Planning Commission; and 6.0 WHEREAS, the requirements established in this ordinance ensure that cannabis businesses operate in accordance with State Law and requires that all commercial cannabis operations obtain licensing from the State Bureau of Cannabis Control; and WHEREAS, the City Council of the City of Palm Desert, California has determined that the amendments to Municipal Code Chapters 25.34.120, 25.16, 25.18, and establishing Chapters 5.101 and 8.38, are consistent with the General Plan and applicable state law; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons to exist to approve said request: NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California as follows: SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations and further finds that the following regulations are beneficial and appropriate to protect the health, safety and welfare of the residents and businesses of Palm Desert within the City limits. SECTION 2. Adoption to rescind and replace Chapter 25.34.120 "Medicinal Cannabis Uses" with Chapter 25.34.120 "Cannabis Use and Regulations" of the City's two Zoning Ordinance as identified in Exhibit "A" attached to this Ordinance. SECTION 3. Adoption of amendments to Chapter 25.16 "Commercial and Industrial Districts" of the City's Zoning Ordinance as identified in Exhibit "B" attached to this Ordinance. SECTION 4. Adoption of amendments to Chapter 25.02 "Downtown Districts Development Standards" of the City's Zoning Ordinance as identified in Exhibit "C" attached to this Ordinance. SECTION 5. Adoption to establish Chapter 5.101 "Commercial Cannabis Regulatory Permits" of the City's Municipal Code as identified in Exhibit "D" attached to this Ordinance. SECTION 6. Adoption to establish Chapter 8.38 "Personal Use of Cannabis" of the City's Municipal Code as identified in Exhibit "E" attached to this Ordinance. SECTION 7. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision ..e shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective K ORDINANCE NO. 1329 of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. SECTION 8. California Environmental Quality Act Finding. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. At their meeting on August 1, 2017, the Planning Commission adopted a Notice of Exemption under the CEQA guidelines. SECTION 9. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 26t' day of October. 2017, by the following vote, to wit: AYES: KELLY, WEBER, and JONATHAN NOES: NONE ABSENT: NESTANDE and HARNIK ABSTAIN: NONE ATTEST: RACHELLE D. KLASSEN, ITY CLERK CITY OF PALM DESERT, CALIFORNIA SABBY JONATHAN, MAYOR PRO TEM 0 ORDINANCE NO. 1329 [This page has intentionally been left blank.] law ORDINANCE NO.: 1329 Exhibit "A" PDMC SECTION: 25.34.120 — Commercial Cannabis Business and Personal Cultivation A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, manufacturing, testing and research, distribution, delivery, retail sale and personal cultivation, of medicinal cannabis and non -medicinal adult -use cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult -Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "State law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in state law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under state law, generally. Nothing in this chapter shall be construed to prohibit primary caregivers and qualified patients to lawfully act under State law. B. Definitions For the purpose of this chapter, the following definitions shall apply: "Applicant" means an owner that applies for a conditional use permit under this chapter. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. 5 ORDINANCE NO.: 1329 "Commercial cannabis business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing and research, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Daycare center' means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school -age child care centers. Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities permitted or licensed by the City and/or State of California. "Licensee" means the holder of any state issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the California Business and Professions Code. ... "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. boo "Manufacturer" means a permittee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. "Owner" means any of the following: (1) a person with an aggregate ownership interest of 20 percent (20%) or more in the person applying for the permit, unless such interest is solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be participating in the direction, control, or management of the person applying for the permit. "Permittee" means any person granted a conditional use permit under this chapter. "Person" means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. "Private residence" means a house, an apartment unit, mobile home, or other similar dwelling unit. n ORDINANCE NO.: 1329 "Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis or cannabis products to customers. "Sell," sale," and "to sell" include any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee or licensee to the permittee or licensee from whom such cannabis or cannabis product was purchased. "State license" means a state license issued under Division 10 of the California Business and Professions Code. "Testing or Research Laboratory" means a laboratory, facility, or entity in the City that offers or performs tests or research of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. "Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. C. Conditional Use Permit Required. 1. The City may authorize a total of six (6) conditional use permits for retail cannabis businesses to operate in the City of Palm Desert. No more than one (1) retail cannabis business may locate on El Paseo, which must be located east of Larkspur Lane. If applications are submitted for a greater number of conditional use permits than are permitted by this section, selection among the applicants shall be made by a process, and subject to criteria, established by city council resolution. Conditional use permits for all other commercial cannabis businesses shall be issued in accordance with the zoning and separation requirements established in this ordinance. Prior to initiating operations and as a continuing requisite to operating a commercial cannabis business in the City, an applicant must obtain and maintain a valid conditional use permit, regulatory permit as required under Chapter 5.101, and a State license for each commercial cannabis business use authorized under the conditional use permit. Unless otherwise stated in this Section, the provisions found in Section 25.72.050 Conditional Use Permit shall apply. 2. Building permits for improvements associated with a commercial cannabis business may be issued once an applicant has obtained a conditional use permit and regulatory permit; however, a certificate of occupancy to operate will not be issued until said commercial cannabis business has obtained and provided proof of a State license for each commercial cannabis business use authorized under the conditional use permit. 3. Changes in State license type, business owner, or operation will require an amendment to the approved conditional use permit. 7 ORDINANCE NO.: 1329 4. A cannabis delivery service business with a physical address outside the City is not required to obtain a conditional use permit under this chapter, but is required to obtain a City business license. Rwli 5. This Section does not apply to cannabis possession or use, as allowed by State law. Regulations regarding personal use can be found in Chapter 8.38. D. Permitted Locations and Standards. 1. Commercial cannabis businesses may operate in the City's commercial, industrial, office, and downtown zoning districts as identified in Section 25.16.030 "Allowed Land Uses and Permits Requirements" and Section 25.18.040 "Land Use and Permit Requirements" of the Palm Desert Municipal Code, with the exception of the City's Downtown Core Overlay District, upon issuance of a conditional use permit, regulatory permit, and State license. a. Retailers are conditionally permitted in the Planned Commercial ("PC") -1 District, PC-2 District, PC-3 District, PC-4 District, and Downtown (D) District. No more than six (6) conditional use permits will be issued for retail cannabis businesses. No more than three (3) retail cannabis businesses may locate on any single street, and no more than one (1) retail cannabis business may locate on El Paseo, which must be located east of Larkspur Lane. b. Testing or research laboratories are conditionally permitted in the Office Professional (OP) District and Service Industrial (SI) District. %we C. Commercial cultivation businesses are conditionally permitted in the SI District. d. Delivery -only businesses are conditionally permitted in the SI District. e. Distribution businesses are conditionally permitted in the SI District. f. Manufacture businesses are conditionally permitted in the Sl District. 2. Commercial cannabis businesses shall conform to the following separation requirements: a. No conditional use permit shall be issued to a cannabis retailer that is located within 1,500 feet of another approved commercial cannabis business. No more than three (3) cannabis retailers will be permitted to operate on a single street. b. A commercial cannabis business whose main business function is cannabis cultivation, distribution, manufacturing, transportation, or delivery, and whose location is limited to the City's Service Industrial zoning district only, shall be afte separated by 1,500 feet from another approved commercial cannabis business. ORDINANCE NO.: 1329 C. A commercial cannabis business whose main business function is to operate as a testing or research laboratory is not subject to a separation requirement from another approved commercial cannabis business and is exempt from the 1,500 foot separation requirement listed in subsections a. and b., above. d. No conditional use permit will be issued for commercial cannabis business located within 1,000 feet of a school providing instruction in kindergarten or any grades 1 through 12, daycare center, or youth center that is in existence at the time the license is issued. e. With the exception of commercial cannabis businesses whose business is located within a mixed -use building or whose primary business function is as a testing or research laboratory, no conditional use permits shall be issued for commercial and industrial properties abutting public parks or private residence. f. All separation requirements will be measured from the outer extents of the commercial cannabis businesses lease space to the outer extents of another commercial cannabis businesses lease space, or to the property line of a school, daycare center and youth center. 3. Conditional Use Permit Submittal Requirements — In addition to the requirements listed in the conditional use permit, all commercial cannabis business applicants shall submit the following information: a. Exterior Fagade. Renderings of the business facade shall be provided and reviewed as part of the Conditional Use Permit. Building facade plans shall include renderings of the exterior building elevations for all sides of the building. All building facades shall be tastefully done and in keeping with the high architectural quality and standards of the City of Palm Desert. Because State Law limits certain advertising, the business facade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area. b. Energy and Water Assessments. Commercial cannabis businesses shall supply energy and water assessments for review as part of the conditional use permit process. These assessments shall estimate the total amount of annual electrical and water use required to operate the commercial cannabis business. Review of the assessment may require the applicant to supplement electrical and water use at the site to minimize adverse environmental impacts. E. Grounds for Permit Denial, Suspension, and Revocation Any conditional use permit issued pursuant to the provisions of this section may be denied, suspended, or revoked by the Planning Commission upon receiving satisfactory evidence that the applicant or permittee or owner, its agent(s), employee(s), or any person connected or associated with the applicant or permittee: 1. Has knowingly made false statements in the applicant's application or in any reports or other supporting documents furnished by the applicant; 9 ORDINANCE NO.: 1329 2. Has failed to maintain a valid State license; 3. Has failed to comply with any applicable provision of the Palm Desert Municipal Code, including but not limited to this chapter, the City's building, zoning, and health and public safety regulations; 4. Has failed to comply with any condition imposed on the conditional use permit; or 5. Has allowed the existence of or created a public nuisance in violation of the Palm Desert Municipal Code. 6. No Conditional Use Permit will be issued where commercial cannabis businesses are prohibited by covenants, conditions, and restrictions (CC&Rs) that clearly prohibit such use. For buildings located in any area governed by CC&Rs, the applicant must additionally submit a statement certifying that any applicable CC&Rs do not prohibit the use for which the applicant is seeking approval. F. Personal Cultivation City residents are permitted to cultivate cannabis on private residential property for personal use and in accordance with MAUCRSA, subject to the following standards: Outdoor Cultivation a. Cultivation for personal use is only permitted on private residential w. property developed with at least one residential dwelling unit. No more than six (6) plants are permitted to be cultivated at a private residence. Property owners retain the ability to prohibit renters from cultivation and any renter choosing to cultivate shall first obtain written authorization from the property owner to cultivate on site. b. Outdoor cultivation is limited to rear and side yard areas and only if screened by a solid block wall no less than six (6) feet in height. C. Outdoor cultivation shall not be visible from surrounding public streets or adjoining properties. As such, cannabis plants may not grow above the height of the property line walls unless screened by another approved screening method. d. Outdoor cultivation within 600 feet of a school, daycare center, or youth center is prohibited. 2. Indoor Cultivation a. Indoor cultivation must have adequate ventilation. Structural, ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation are required to obtain a building permit from the City's Building and Safety Department. b. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, . 10 ORDINANCE NO.: 1329 propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residence. G. Application Fee and Reimbursement Agreement. At the time an applicant submits an application under this Section, the applicant shall also supply an application fee in an amount to be determined by resolution by the city council, an executed reimbursement agreement on a form provided by the city to fully reimburse the City for all costs, expenses, and fees, including but not limited to attorney fees and consultant fees, incurred by the City related to the commercial cannabis business, and a deposit in an amount as provided for in the reimbursement agreement terms. H. Prohibited Operations. Any commercial cannabis business that does not have (i) an approved conditional use permit, (ii) a regulatory permit required under this code, and (iii) a State License is expressly prohibited in all city zones and is hereby declared a public nuisance that may be abated by the city and is subject to all available legal remedies, including, but not limited to civil injunctions. I. Violations and Penalties. 1. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, administrative penalties, permit suspension, and permit revocation, if applicable. 2. Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law. 3. Violations of this chapter are hereby declared to be public nuisances. 4. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies. 5. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other remedy for the purpose of enforcing the provisions hereof. 11 ORDINANCE NO. 1329 [This page has intentionally been left blank.] . -'A 12 ORDINANCE NO.:1329 Exhibit B Chapter 25.16 — Commercial and Industrial Districts Sections in This Chaster 25.16.010 Purpose.................................................................................................16-1 25.16.020 Characteristics of the Commercial and Industrial Districts .....................16-1 25.16.030 Allowed Land Uses and Permit Requirements......................................16-2 25.16.040 Specific Use Standards.........................................................................16-3 25.16.050 Development Standards........................................................................16-6 25.16.010 Purpose The purpose of this chapter is to establish commercial and industrial zoning districts in the City, along with allowed use and development standards applicable to those districts. These districts are consistent with and implement the City's General plan commercial and industrial district and center land use categories as indicated in Table 25.04-1 (Zoning Districts). 25.16.020 Characteristics of the Commercial and Industrial Districts The following descriptions of each district identify the characteristic uses, intensity of uses, and intended level of development for that district. A. Office Professional (OP). This district is intended for various levels of intensities for business, office, administrative, research and development, and/or professional land uses. This district is characterized by urban streetscapes with formal tree arrangements and larger block sizes. B. Planned Commercial (PC). The PC districts provide flexibility for commercial and mixed -use development. Generally, these districts are characterized as coordinated projects that integrate compatible commercial and residential mixed -uses. PC districts balance the need for automobile parking and pedestrian connections that are organized around walkable streetscapes and other pedestrian amenities. PC districts are further refined based on property size, proximity to residential uses, and as described below: Specialty Commercial Center (PC-1). The specialty commercial center provides for small-scale commercial development that primarily serves surrounding neighborhoods and other immediate land uses. This district is characterized as being located in close proximity to residential development and, as such, provides high levels of convenient pedestrian access. This district also promotes the development of mixed -use (10.0 — 15.0 du/ac) as a transition between residential uses and other development types. 2. District Commercial Center (PC-2). The district commercial center provides convenient shopping opportunities outside of the downtown core area. This PC district provides large -format retail areas for the broader community and provides flexibility for the integration of mixed -use (10.0 — 15.0 du/ac) on upper floors of commercial buildings. The center is also characterized by traditional parking lots 16-11Page Chapter 25.16 Commercial and Industrial Districts 13 ORDINANCE NO.:1329 with formal tree arrangements and spacing and sufficient space for pedestrian areas and open space. 3. Regional Commercial Center (PC-3). The regional commercial center provides a unified area for commercial uses which offer a wide range of goods and services, including comparison and convenience shopping, entertainment, cultural, and recreational uses. The district provides for large-scale, large -format, commercial development that serves the broader region and is generally located around major intersections and properties in proximity to freeway overpasses. Although this district is predominately commercial, mixed -use (10.0 — 15.0 du/ac) is allowed and should be integrated into developments on the upper floor. 4. Resort Commercial Center (PC-4). The resort commercial center allows for the development of a range of entertainment, hospitality, restaurants, and recreational facilities with related commercial uses to serve visitors to the City. The district is characterized by multi -story development that provides recreation and entertainment amenities in accordance with its urban/natural setting, and provides flexibility to integrate mixed -use (10.0 du/ac). C. Service Industrial (SI). This district allows for the development of traditional business parks that allow for manufacture, distribution, research and development, and service of products intended for use within Palm Desert and surrounding communities. The district is characterized as having a more urban setting with buildings located near roadways, shared and connected parking, and streetscapes with formal street tree arrangements. om 25.16.030 Allowed Land Uses and Permit Requirements r.. Table 25.16-1 (Use Matrix for Commercial and Industrial Districts) identifies allowed uses and corresponding permit requirements for commercial and industrial districts and all other provisions of this title. Descriptions/definitions of the land uses can be found in Chapter 25.99 (Definitions). The "Special Use Provisions" column in the table identifies the specific chapter or section where additional regulations for the specific use type are located within this ordinance. Use regulations in the table are shown with representative symbols by use classification listing: "P" symbolizes uses permitted by right, "A" symbolizes uses that require approval of an administrative use permit, "C" symbolizes uses that require approval of a conditional use permit, and "N" symbolizes uses that are not permitted. Uses that are not listed are not permitted. However, the Commission may make a use determination as outlined in Section 25.72.020 (Use Determinations). %..« Chapter 25.16 Commercial and Industrial Districts 16-21Page 14 ORDINANCE NO.:1329 Table 25.16-1: Use Matrix for Commercial and Industrial Districts Commercia.11industrial District (P=Permltted; AsAdministrative Use Permit; C=Conditional Use Permit; N=Not Permitted) Special Use Provisions OP PC-1 I PC-2 I PC-3 PCB SI Residential Uses Caretaker housing N N N N N P 25.16.040.A Condominium C C C N C C 25.16.040.E Dwelling, duplex C C C C C C 25.16.040.E Dwelling, multifamily C C C C C C 25.16.040.E Dwelling, single-family C C C N C C 25.16.040.E Group home C C N N C C 25.16.040.B Single -room occupancies N N N N N C Homeless Shelter N N N N N P Recreation, Resource Preservation, Open Space, and Public Assembly Uses Amusement facility, indoors N N C C C N Amusement facility, outdoors N N N C C N Community facility N N N N N P Day care center N C C C C N Emergency shelters N P N N N P Entertainment facility, indoor N N N P P N Entertainment facility, outdoor N N N P P N Institution, educational C C C N N C Institution, general C N C N N C Institution, religious C N C N N C Open space (developed or natural) N P P N P N Recreation facility, commercial N N P P P N Recreation facility, private N N N P P N Theater/auditorium N N P P N N Utility, Transportation, Public Facility, and Communication Uses Commercial communication tower C C C C C C 25.16.040.0 Commercial parking lot C N N N N N Public utility installation N N N N N P Public facility (utility or service) N N N N N P Utility facility N N C N N P 16-31Page Chapter 25.16 Commercial and Industrial Districts 15 ORDINANCE NO.:1329 Retail, Service; and Office Uses Adult entertainment N N N N N C 25.16.040.D Ancillary commercial A P P P N A 25.16.040.E Art gallery A P P P P C Art studio A P P P P C Bed and breakfast N A A A A N Business support services N N N N P P Cannabis Retail N C C C C N 25.34.120 Cannabis Testing and Resaerch Laboratory C N N N N C 25.34.120 Convention and visitors bureau N N P N P N Drugstore N P P P N N Financial institution C P P P N N Grocery store N P P P N N 25.16.040.E Health club, gyms or studios N A P P P C Hotel N A A A P N Liquor store N P P P N N Liquor, beverage and food items shop N P P P P N Medical, clinic P N P P N N Medical, office P P P P N N Medical, hospital N N N N N C Medical, laboratory P N N N N P Medical office, accessory N N N N N P 25.16.040.G Medical, research facility P P N N N C Mortuary N N N N N P Office, professional P N P P P P Office, local government P N N N N P Office, travel agency P P P P P N Outdoor sales N N A A A A Personal services N P P P P N Restaurant A C C C P C 25.16.040.E / H Retail N P P P P N Retail, bulky items N N N P P N Spa N N P P P N Time-share project N N N C C N Automobile and Vehicle Uses «0 %10 Chapter 25.16 Commercial and Industrial Districts 16-41Page 16 ORDINANCE NO.:1329 Automotive rental agency N N N N P I P Automotive gasoline station N N C C N C 25.34.090 Automotive service facility N N I C C N P 25.34.090 Automotive sales new and used (Outdoor / Indoor) N N N N N C Automotive sales of accessory parts and supplies N N N P P N Vehicle storage facility I N N I N I N I N I P 1 25.16.040.1 Industrial, Manufacturing, and Processing Uses Cannabis Cultivation N N N N N C 25.34.120 Cannabis Delivery N N N N N C 25.34.120 Cannabis Distribution N N N N N C 25.34.120 Cannabis Manufacturing N N N N N C 25.34.120 Industrial planned unit development N N N N N P Light industrial and research and development N N N N N P Maintenance facility N N N N N P Pest control facility N N N N N P Preparation of foodstuffs N N N N N P Production of home and office decor accessories N N N N N P Warehouse or storage facility N N I N N N P Temporary Uses See Section 25.34.080 I The establishment may be permitted with an Administrative Use Permit but may be elevated to a Conditional Use Permit at the discretion of the ZA based on: parking, traffic, or other impacts. 25.16.040 Specific Use Standards The following provisions apply as indicated to the uses listed in Table 25.16-1 (Use Matrix for Commercial and Industrial Districts): A. Caretaker Housing. Permitted only when incidental to and on the same site as a permitted or conditional use. B. Residential (mixed use). Residential uses may be established and maintained to be compatible with the permitted or the approved conditional uses in the vicinity. C. Commercial Communication Tower. All communication towers and antennas shall satisfy the requirements of Section 25.34.130 (Communication Tower and Antenna Regulations). 16-51Page Chapter 25.16 Commercial and Industrial Districts 17 ORDINANCE NO.:1329 D. Adult Entertainment. All uses defined as adult entertainment are required to meet the provisions established by Section 25.34.110 (Adult Entertainment Establishments). E. Commercial (ancillary). Applicable only to office and industrial complexes that occupy a minimum of two acres. Restaurant uses shall not exceed 10 percent of the gross leasable floor area and the total ancillary commercial uses, including restaurants, shall not exceed 25 percent of the gross leasable floor area of the complex. A Conditional Use Permit or Administrative Use Permit is required to review land -use compatibility and to ensure that adequate parking exists to serve the commercial use. F. Grocery Stores. Limited to a maximum building size of 10,000 square feet in PC-1, 30,000 square feet in PC-2, and 60,000 square feet in PC-3. G. Medical Offices, accessory. Permitted only when ancillary to and in conjunction with the operation of a hotel. H. Restaurants. Drive -through and drive-in facilities permitted by a conditional use permit as follows: 1. Permitted locations. i. Within Freeway Commercial Overlay District ii. On the following streets and as indicated in Figure 25.10-2: Monterey Avenue and Portola Avenue from the northern city boundary to the north side of Gerald Ford Drive. 2. Development standards. i. Drive -through lanes and window facilities shall be designed in a manner that they are screened and/or not visible from surrounding public streets. ii. Drive -through vehicle queue must be permanently screened and/or not visible from surrounding public streets. I. Vehicle Service and Storage Facility. The storage facility must be completely screened. 25.16.050 Development Standards The development standards included in Table 25.16-2 (Commercial and Industrial District Development Standards) are applicable to commercial and industrial districts. These standards, along with other development standards (e.g., landscaping requirements, signs, and parking standards) located in the zoning ordinance, are intended to assist property owners and project designers in understanding the City's minimum requirements and expectations for high -quality development. A. Special setback requirements. In addition to the setback requirements in Table 25.16- 2 (Commercial and Industrial District Development Standards) the following special setback provisions apply: r- %Nm 1. On interior lots in the PC zone districts, setbacks shall be the lesser of the setback requirement listed in Table 25.16-2 (Commercial and Industrial District Development Standards). For exterior lots or projects perimeter adjacent to public streets the setback standards below shall apply. Said setbacks shall be measured from the property line. .� 2. Building setbacks from planned street lines: Chapter 25.16 Commercial and Industrial Districts 16-61Page if ORDINANCE NO.:1329 Table 25.16-2: Setbacks from Planned Street Lines Street Type Setback Distance Freeway 50 feet Major 32 feet Arterial 32 feet Collector 25 feet Local 25 feet 3. Where commercial districts abut a residential district, a fence or wall 6 feet in height shall be located adjoining the property line except adjoining a required front yard. All commercial district property lines adjoining a residential district shall be landscaped with plant materials for an area 10 feet in depth. 4. All nonpaved areas shall be landscaped and treated or maintained to eliminate dust. B. Exceptions: Development standards within the PC districts may be modified through the precise plan process as specified in Section 25.72.030Special standards within the Service Industrial (SI) district. Sound emanating from industrial properties shall be muffled so as not to become objectionable due to intermittence, beat frequency, or shrillness. The measurements of sound shall be measured at the lot lines and shall be measured to decibels with a sound level meter and associated octave band filter, manufactured according to standards prescribed by the American Standards Association. Maximum permissible sound pressure levels shall comply with the limits at table 25.16-2 and the following standards: Table 25.16-3: Maximum Permitted Decibels Octave Band in Cycles- Second(decibels) Adjacent Residential District Boundaries(decibels) Lot Line of Use in the SI Zone(decibels) 0-75 72 79 76-150 59 74 151-300 52 66 301-600 46 59 601-1200 42 53 1201-2400 39 47 2401-4800 34 41 Above 4800 32 39 1. The maximum sound pressure level in decibels shall be 0.002 dynes per square centimeter. 16-71Page Chapter 25.16 Commercial and Industrial Districts 19 ORDINANCE NO.:1329 2. Toxic gases or matter shall not be emitted which can cause any damage to health, animals, or vegetation, or other forms of property, or which can cause any excessive soiling beyond the lot lines of the use. 3. Vibration from any machine, operation, or process which can cause a displacement of .003 of 1 inch as measured at the lot lines of the use shall be prohibited. Shock absorbers or similar mounting shall be allowed which will reduce vibration below .003 of 1 inch as measured at the lot lines. 4. Glare and heat from any source shall not be produced beyond the lot lines of the use. 5. Storage of refuse, trash, rubbish, or other waste material outside a permanent building shall be kept in enclosed containers in areas other than the front and side yards. 6. Lighting, including spotlights, floodlights, electrical reflectors, and other means of illumination for signs, structures, landscaping, parking areas, loading and unloading areas, and the like shall be shielded, focused, directed, and arranged as to prevent glare or direct illumination on streets or adjoining property. 7. Unless specific additional uses are permitted by the certificate of occupancy, the use of radioactive materials within the SI district shall be limited to measuring, gauging and calibration devices, as tracer elements, in x-ray and like apparatus, and in connection with the processing and preservation of foods. In no event one shall radioactivity, when measured at each lot line, be in excess of 2.7 x 10-11 micro curies per milliliter of air at any moment of time. %no 8. Electrical and electronic devices and equipment shall be suitably wired, shielded, and controlled so that in operation they shall not, beyond the lot lines, emit any electrical impulses or waves which will adversely affect the operation and control of any other electrical or electronic devices and equipment. (Ord. 96 § 1, 1975, Exhibit A § 25.20-7.16) ..0 Chapter 25.16 Commercial and Industrial Districts 16-81Page c ORDINANCE NO.:1329 C. Special standards within the Office Professional (OP) district. 1. When adjacent to single -story residential, the rear and exterior side yard setbacks shall be increased by 6.43 feet for each foot of building height above 18 feet up to 25 feet tall. See table below: Table 25.16-4: Additional Setback in OP District Height Setback Distance 19 feet 26.43 feet 20 feet 32.86 feet 21 feet 39.29 feet 22 feet 45.72 feet 23 feet 52.15 feet 24 feet 58.58 feet 25 feet 65 feet 2. Second -story Windows: Second -story windows are allowed to face adjacent single -story residential zones with sufficient screening; either with landscaping or another method as approved through the precise plan process. 16-91Gage Chapter 25.16 Commercial and Industrial Districts 21 CIN Z W U z Q z d' O I w (n h (h CCD)N 0 O 0 0 C) O O N r- i -'c i i I O p Z N O O O C) O y fV C C E C E O tp � a v ° O O O m .- I O N o p in O to I z z z 'r' y r c� U m N N I O O N N .O CU CDO O O I I I I tri �j r CV)I a r> z z z c) cn �v w N U m U N a) C N C I c p I p O I O p N _•` p M O O U d LO CDZ N Z N N O O Ia O O N M 4-- m E U V N ri I p N O I I O v M O U a. M O Z Z N N p � O O O cn O in io N � c C > c: O tid NO O CV) I .— N O N O O O a _ � c N m O c c_ m 0 (n > a) w � N -0 X m X H C c N cm E E i. �_ cc U v E m m c cXu E E E w m :Em x X & N c E E Y p N v_ y rn° c0 (U � cmE cu E O V1 Cl 0 N 'cn 3 v c a� m v aU V �m O v O o 0 0 0 Q�� m 0 - w O o 0 'E 0 0 o � J J J J J LL (A (n U LL .. m 2 2 Z m m 0 a a G M 22 3 ) / CL ® 9 J o a. % e Cl)a cc C / & a 26 .� k LO CL O / � c 2 \ �3 P 6m /� k L) / CL kcu 0/ � f / C 2 2 § ƒ 3 E c ) � � � ( J J7 \ t �t k [ \] E § k\ co \ ca �.0 / k )\ f co at e §2 \ \ f coCO 2± / k °2 t { kt Q (§ \\ { 3 ) k \ Cl)\ o «� ~ § Co ).0 e I m COE 7 /) � f \ / f R \ ƒ § \)\ )% ) ( §E ƒm $6] c $f 0f ) « + �� 2E0 § �\ 2E %a= k j { 'ca E & / ) \ % )co / �k 10 Co _ \) \ 4) � 0 /$kk �\ )/§ k]%] kE zCO °°2 k%{/ fe k�§ \)ƒ{k)\ Lokf �� k\j).5co 0 �kk 300000°~t /jktk� ƒk/ E/Q.N \/\ ���. \2&6£kt 72E �o C }f\wiit /k\ 04 3'N t � E «r Q) co a\ ©ooa>q*6o \Qcacri /77/ =Acc2c«ocno QU ) to /§{/\ k 2�ww+ wU &ka § \ � � 23 ORDINANCE NO. 1329 [This page has intentionally been left blank.] am 24 ORDINANCE NO.: 1329 Exhibit C - 25.18.040 Land Use and Permit Requirements Amend Table 25.18-1. "Use Matrix for Downtown Districts" to add the following Land Use Zone I Special Use Provisions D D-O DE DE-0 "Retail, Service, and Office Uses _ - _ z r Cannabis Retail C N C N 25.34.120 Cannabis Testing or C N N N 25.34.120 Research Laboratory 25 ORDINANCE NO. 1329 A [This page has intentionally been left blank.] 26 ORDINANCE NO. 1329 Exhibit "D" PDMC SECTION 5.101 — Commercial Cannabis Business Regulatory Permits A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, manufacturing, testing and research, distribution, delivery, and retail sale of medicinal cannabis and non -medicinal adult -use cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult -Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "State law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in state law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under state law, generally. Nothing in this chapter shall be construed to prohibit primary caregivers and qualified patients to lawfully act under State law. B. Definitions For the purpose of this chapter, the following definitions shall apply: "Applicant" means an owner that applies for a regulatory permit under this chapter. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. 27 ORDINANCE NO. 1329 "City" means the City of Palm Desert. . . "City manager" means city manager or designee. "Commercial cannabis business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing and research, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities permitted or licensed by the City and/or State of California. "Fully enclosed and secured structure" means a space within a building, greenhouse, or other approved structure which has a complete roof enclosure supported by connecting walls extending from the ground to the floor, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete w. visual screening, and which is accessible only through one of more lockable doors and is inaccessible to minors. %no "Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis or cannabis products to customers and does not include cannabis cultivation or manufacturing on the premises. "Licensee" means the holder of any state issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the California Business and Professions Code. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. "Manufacturer" means a permittee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. "Owner" means any of the following: (1) a person with an aggregate ownership interest of 20 percent (20%) or more in the person applying for the permit, unless such interest is solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other entity; (3) ORDINANCE NO. 1329 a member of the board of directors of a nonprofit; or (4) an individual who will be participating in the direction, control, or management of the person applying for the permit. "Permittee" means any person granted a regulatory permit under this chapter. "Person" means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. "Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis or cannabis products to customers. "Sell," sale," and "to sell' include any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee or licensee to the permittee or licensee from whom such cannabis or cannabis product was purchased. "State license" means a state license issued under Division 10 of the California Business and Professions Code. "Testing or Research Laboratory" means a laboratory, facility, or entity in the City that offers or performs tests or research of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. C. Regulatory Permit Required. 1. Prior to initiating operations and as a continuing requisite to operating a commercial cannabis business in the City, an applicant must obtain and maintain a valid conditional use permit as required under Section 25.34.120, regulatory permit, and a State license for each commercial cannabis business use authorized under the conditional use permit. 2. Building permits for improvements associated with a commercial cannabis business may be issued once an applicant has obtained a conditional use permit and regulatory permit; however, a certificate of occupancy to operate will not be issued until said commercial cannabis business has obtained and provided proof of a State license for each commercial cannabis business use authorized under the conditional use permit. 3. Changes in State license type, business owner, or operation will require an amendment to the approved regulatory permit. 4. This chapter does not apply to cannabis possession or use, as allowed by State law. Regulations on personal cultivation can be found in Chapter 8.38. we ORDINANCE NO. 1329 5. A cannabis delivery service business with a physical address outside the City is not required to obtain a regulatory permit under this chapter, but is required to obtain a City business license. D. Regulatory Permit Application Requirements. An application for a regulatory permit shall include, but shall not be limited to, the following information: 1. The name, address, and telephone number of the applicant. 2. A description of the statutory entity or business form that will serve as the legal structure for the applicant and a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement operating agreement, and fictitious business name statement. 3. The name, address, telephone number, title, and function of each of the interested parties described in subsection N., below. 4. A legible copy of each applicant's photo identification, such as a state driver's license, a passport issued by the United States, or a permanent resident card. =1 5. A list of the license or permit types (including license or permit numbers) held by the applicant that involve the operation of a commercial cannabis business, including the %no date the license or permit was issued and the jurisdiction or State license authority that issued the license or permit. 6. Whether the applicant has been denied a license or permit by the City, any other jurisdiction, and/or the State that involves the operation of a commercial cannabis business. The applicant shall provide a description of the license or permit applied for, the name of the jurisdiction or State license authority that reviewed the license or permit application, and the date of denial. 7. The proposed commercial cannabis business's physical address, telephone number, website address, and e-mail address. 8. Contact information for the applicant's designated primary contact person including the name, title, address, phone number, and e-mail address of the individual. 9. A list of every fictitious business name the applicant is operating under including the address where the business is located. 10. Financial information including the following: a. A list of funds belonging to the commercial cannabis business held in savings, checking, or other accounts maintained by a financial institution. The 30 ORDINANCE NO. 1329 applicant shall provide for each account, the financial institution's name, the financial institution's address, account type, account number, and the amount of money in the account. b. A list of loans made to the commercial cannabis business. For each loan, the applicant shall provide the amount of the loan, the date of the loan, term(s) of the loan, security provided for the loan, and the name, address, and phone number of the lender. C. A list of investments made into the commercial cannabis business. For each investment, the applicant shall provide the amount of the investment, the date of the investment, term(s) of the investment, and the name, address, and phone number of the investor. d. A list of all gifts of any kind given to the applicant for its use in conducting commercial cannabis business. For each gift the applicant shall provide the value of the gift or description of the gift, and the name, address, and phone number of the provider of the gift. 11. A list of each applicant's misdemeanor and felony convictions, if any. For each conviction, the list must set forth the date of arrest, the offense charged, the offense convicted, the jurisdiction of the court, and whether the conviction was by verdict, plea of guilty, or plea of polo contendre. 12. A complete and detailed diagram of the proposed premises showing the boundaries of the property and the proposed premises to be permitted, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways, storage areas and exterior lighting. The diagram must show the areas in which all commercial cannabis business will take place, including but not limited to, limited -access areas. 13. A security plan, as a separate document, outlining the proposed security arrangements to deter and prevent unauthorized entrance into limited access areas and theft of cannabis, in accordance with minimum security measures required by state law. The security plan shall be reviewed by the Palm Desert Police Department and the city manager and shall be exempt from disclosure as a public record pursuant to Government Code Section 6255(a). 14. A comprehensive business operations plan that includes the following: a. Business plan. A plan describing how the commercial cannabis business will operate in accordance with this code, state law, and other applicable regulations. The plan shall include operational, banking, and personnel procedures to ensure adequate business knowledge, modeling and support. 31 ORDINANCE NO. 1329 b. Community relations plan. A plan describing who is designated as ... being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted. C. Neighborhood responsibility plan. A plan addressing any adverse impacts of the proposed commercial cannabis business on the surrounding area. d. Odor control plan. A plan identifying odor control methods, including, but not limited to, use of odor absorbing ventilation and exhaust systems, negative air pressure, and other treatments. e. Insurance. The applicant's certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the commercial cannabis business. f. Budget. A copy of the applicant's most recent annual budget for operations. 15. The name and address of the owner and lessor of the real property upon which the commercial cannabis business is to be operated. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a commercial cannabis business will one be operated on his or her property. 16. Authorization for the city manager to seek verification of the information contained within the application. 17. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct. 18. A full and complete copy of the applicant's most current application submitted to and approved by the applicable State licensing authority. 19. Any such additional and further information as is deemed necessary by the city manager to administer this chapter. E. Background Check. The City will provide each applicant and interested parties, as described in Section N., below, with a 'request for live scan service' form, which must be taken to a live scan operator for fingerprinting. Each applicant must submit their fingerprint images to the Palm Desert Police Department, California Department of Justice, and the Federal Bureau of Investigation for fingerprint -based criminal history records review and reporting to the City. 32 ORDINANCE NO. 1329 F. Additional Terms and Conditions. Based on the information set forth in the application, the city manager may impose reasonable terms and conditions on the proposed operations of the commercial cannabis business in addition to those specified in this chapter. G. Regulatory Permit Denial. The city manager may deny an application for a regulatory permit or renewal of a regulatory permit upon making any of the following findings: 1. The applicant or the premises for which a regulatory permit is applied does not qualify for a permit under this chapter. 2. The applicant fails to comply with the provisions of this chapter. 3. The applicant has failed to provide information required by the city manager. 4. The applicant or permittee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the city manager determines that the applicant or permittee is otherwise suitable to be issued a license and granting the license would not compromise public safety, the city manager shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant or permittee to be issued a permit based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the city manager shall include, but not be limited to, the following: 5. A felony conviction for the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance. 6. A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code. 8. A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the California Penal Code. 9. A felony conviction involving fraud, deceit, or embezzlement. 10. The applicant, or any of its officers, directors, or owners, has been sanctioned by a State licensing authority or a city, county, or city and county for unlicensed commercial cannabis activities or has had a State license revoked in the three years immediately preceding the date the application is filed with the city manager. 11. The commercial cannabis business is not properly organized or operating in strict compliance pursuant to the Compassionate Use Act of 1996, the Medical Marijuana Program Act ("MMP"), Medicinal and Adult -Use Cannabis Regulation and Safety Act ("MAUCRSA"), and any other applicable law, rules and regulations. 33 ORDINANCE NO. 1329 H. Regulatory Permit Term. A regulatory permit is valid for one (1) year from the date that the permit is issued, unless suspended or revoked sooner. I. Regulatory Permit Renewal Process. 1. To renew a regulatory permit, a completed permit renewal form and renewal permit fee shall be received by the city manager from the permittee no earlier than sixty (60) calendar days before the expiration of the permit and no later than the last business day before the expiration of the permit. 2. In the event the regulatory permit is not renewed prior to the expiration date, the permittee must cease all commercial cannabis business. J. Regulatory Permit Surrender. Every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding sixty (60) consecutive calendar days after a certificate of occupancy is issued, shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the permit to the city manager. The city manager may seize the permit of a permittee who fails to comply with the surrender provisions of this section and may proceed to revoke the permit. If a permittee wishes to close a commercial cannabis business am for repair or refurbishment for a period of longer than sixty (60) calendar days, the permittee shall notify the city manager of same in writing. „o K. Regulatory Permit Suspension and Revocation. The city manager may suspend, modify, or revoke a regulatory permit issued pursuant to the provisions of this Chapter for any of the following reasons: 1. One or more of the circumstances upon which a regulatory permit could be denied exists or has occurred; 2. One or more conditions of the regulatory permit has been violated; or 3. The permittee, its owners, officers, directors, partners, agents, or other persons vested with the authority to manage or direct the affairs of the business have violated any provision of this chapter or State law. L. Appeals. Any decision regarding the denial, suspension, or revocation of a regulatory permit may be appealed to the city council. All appeals shall be in writing and filed with the city clerk within ten calendar days of any decision or action that is the subject of the appeal. After receiving the written appeal, the city clerk shall schedule a hearing before the city council. The city council may refer the matter to a hearing officer. The city council may decide the matter based on the recommendations and findings of the hearing officer, if it so chooses. The decision of the city council or hearing officer shall be final. 34 ORDINANCE NO. 1329 M. Operational Requirements. All commercial cannabis businesses are subject to the following operational requirements: 1. Commercial cannabis businesses shall maintain compliance with the security plan, business plan, community relations plan, neighborhood responsibility plan, odor control plan, and insurance requirements submitted with their application, unless modifications are accepted in writing by the city manager. 2. Commercial cultivation, possession, manufacture, processing, storing, laboratory testing and research, packaging, and labeling, shall be conducted only within a fully enclosed and secured structure that is not accessible to minors. 3. Commercial cannabis businesses shall not create nuisances such a dust, glare, heat, noise, smoke, odor, and shall not be used to store hazardous materials, products, or wastes. 4. Commercial cannabis businesses shall utilize product and inventory tracking software and accounting software that is in -line with reasonable business practices within the industry. 5. As part of the security plan, permittees shall: a. Install and maintain security cameras that shall cover, but not be limited to covering sale, cultivation, manufacturing, processing, transportation, distribution areas, all doors and windows, and any other areas as reasonably determined by the Planning Commission. b. Operate cameras 24 hours per day, seven days per week. C. Maintain at least 120 concurrent hours of digitally recorded documentation. d. Cure any disruption in security camera images expeditiously and in good faith. e. Install alarm systems that are operated and monitored by an independent third party security company. f. Shall lock all storage areas and give access to such storage areas only to permittee and permittee's staff. No cannabis products shall be accessible to the general public. 6. Commercial cannabis businesses shall not advertise or promote cannabis or cannabis products that encourage use by persons under the age of 21, or promote cannabis and cannabis products within 1,000 feet of a school, daycare, park, or youth center. 35 ORDINANCE NO. 1329 N. Interested Parties. 1. A permittee shall provide the city with names and addresses of all of the following interested parties: a. Persons with at least a 10% interest in the commercial cannabis business; b. Partners, officers, directors, and stockholders of every corporation, limited liability company, or general or limited partnership that owns at least 10% 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; C. The managers of the commercial cannabis business; and d. The staff of the commercial cannabis business. 2. The permittee shall notify the city of any change in the information above within 30 calendar days of the change. 3. All interested parties, as described in subsection 1, must submit to fingerprinting and a criminal background check by the city. 4. No person shall be an interested party, as described in subsection A of this Section, if he or she is charged with or convicted of a felony; has been charged with or convicted of a violation of California Penal Code section 186.22 (participation in a criminal street gang); or is currently on parole or probation for an offense relating to the sale or distribution of a controlled substance. "Convicted" within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted. "Charged" within the meaning of this section means (1) an indictment was issued by a grand jury, or an information, complaint, or similar pleading was issued by the United States Attorney, district attorney, city attorney, or other governmental official or agency authorized to prosecute crimes, and (2) the criminal proceedings are currently pending. O. Emergency Contact Manager. A commercial cannabis business permittee shall provide the city manager with the current name and primary and secondary telephone numbers of at least one 24-hour on -call manager to address and resolve complaints and to respond to operating problems or concerns associated with the commercial cannabis business. W.r. 36 ORDINANCE NO. 1329 P. Community Relations Manager. Each commercial cannabis business shall provide the city manager with the name, phone number, facsimile number, and e-mail address of an on -site community relations or staff person or other representative to whom the city can provide notice if there are operating problems associated with the commercial cannabis business or refer members of the public who may have any concerns or complaints regarding the operation of the commercial cannabis business. Each commercial cannabis business shall also provide the above information to its business neighbors located within one hundred (100) feet of the commercial cannabis business as measured in a straight line without regard to intervening structures, between the front doors of each establishment. Q. Display of Regulatory Permit. The permittee shall display its current valid permit issued in accordance with this chapter inside the lobby or waiting area of the main entrance to the premises. The permit shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the premises. R. Inspections and Enforcement. 1. Recordings made by security cameras at any commercial cannabis business shall be made immediately available to the city manager upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials. 2. The city manager shall have the right to enter all commercial cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter. 3. Operation of the commercial cannabis business in non-compliance with any conditions of approval or the provisions of this chapter shall constitute a violation of the municipal code and shall be enforced pursuant to the provisions of this code. 4. The city manager may summarily suspend or revoke a cannabis regulatory permit if any of the following, singularly or in combination, occur: a. The city manager or designee determines that the commercial cannabis business has failed to comply with this chapter or any condition of approval or a circumstance or situation has been created that would have permitted the city manager or designee to deny the permit under subsection F., above. b. Operations cease for more than sixty (60) calendar days, including during change of ownership proceedings, unless otherwise authorized by the city manager; C. Ownership is changed without securing a regulatory permit; or 37 ORDINANCE NO. 1329 d. The commercial cannabis business fails to allow inspection of the records, security recordings, the activity logs, or the premises by authorized city officials. S. Liability and Indemnification. 1. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this chapter shall not become a personal liability of any public officer or employee of the City. 2. To the maximum extent permitted by law, the permittees under this chapter shall defend (with counsel acceptable to the City), indemnify and hold harmless the City of Palm Desert, the Palm Desert City Council, and its respective officials, officers, employees, representatives, agents and volunteers (hereafter collectively called City) from any liability damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings or judgment (including legal costs, attorneys' fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs (collectively called "action") against the City to attack, set aside, void or annul, any cannabis -related approvals and actions and comply with the conditions under which such permit is granted, if any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall r4imburse the City for its reasonable legal costs and attorneys' fees. om 3. Within ten (10) calendar days of the service of the pleadings upon the City of any action as specified in Subsection 2., above, the permittee shall execute a letter of agreement with the City, acceptable to the Office of the City Attorney, which memorializes the above obligations. These obligations and the letter of agreement shall survive termination, extinguishment or invalidation of the cannabis -related approval. Failure to timely execute the letter of agreement does not relieve the applicant of any of the obligations contained in this section or any other requirements or performance or operating standards that may be imposed by the City. T* the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any regulatory permit pursuant to this chapter or the operation of any commercial cannabis business approved pursuant to this chapter. T. Compliance with State Law. All commercial cannabis businesses shall comply fully with all of the applicable restrictions and mandates set forth in state law, including without limitation the Compassionate Use Act of 1996 ("CUA" ), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult - Use Cannabis Regulation and Safety Act ("MAUCRSA"). 0"a : ORDINANCE NO. 1329 U. Violations and Penalties. 1. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, administrative penalties, permit suspension, and permit revocation. 2. Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law. 3. Violations of this chapter are hereby declared to be public nuisances. 4. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies. 5. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other remedy for the purpose of enforcing the provisions hereof. 39 ORDINANCE NO. 1329 [This page has intentionally been left blank.] w 40 ORDINANCE NO. 1329 Exhibit "E" PDMC Chapter: 8.38 — Personal Use of Cannabis A. Purpose and Intent It is the purpose and intent of this chapter to regulate the personal use and possession of medicinal cannabis and non -medicinal adult use cannabis within the City of Palm Desert in compliance with applicable state and local laws. B. Definitions "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. "Day care center" means any child day care facility including infant centers, preschools, extended day care facilities, and school age child care centers. "Personal residence" means a house, an apartment unit, a mobile home, or other similar dwelling. "Smoke" means to inhale, exhale, burn, or carry any lighted or heated device or pipe, or any other lighted or heated marijuana or marijuana product intended for inhalation, whether natural or synthetic, in any manner or in any form. "Smoke" includes the use of an electronic smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking in a place. "Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. 41 ORDINANCE NO. 1329 C. Personal Use and Possession All personal use and possession of cannabis must be in compliance with the Compassionate Use Act ("Act"), the Medical Marijuana Program ("MMP"), and the Medicinal and Adult -Use Cannabis Regulation and Safety Act ("MAUCRSA"). In addition, the restrictions listed below apply. It shall be unlawful and a public nuisance to: Smoke or ingest cannabis or cannabis products in a public place, including, but not limited to streets, sidewalks, parks, or any common areas within a residential development, including but not limited to private streets and sidewalks, common parking areas, parks or other spaces maintained by an homeowners or property owners association and accessible to residence of the development. 2. Smoke cannabis or cannabis products in a location where smoking tobacco is prohibited under Chapter 8.36 Regulation and Prohibition of Smoking. 3. Possess, smoke or ingest cannabis or cannabis products in or upon the grounds of a school, day care center, or youth center; or smoke cannabis or ingest cannabis within 1,000 feet of a school, day care center, or youth center, except in or upon grounds of private residence and then only if such smoking is not detectable by others on the grounds of any school, day care center, or youth center. 4. Smoke cannabis or use cannabis products on City property, including parks, common areas in City -owned housing developments, and other public places. D. Penalties for Violation Any person who violates any provision of this chapter is deemed guilty of misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney in accordance with Chapter 1.12 of this code. 2. Any violation of this chapter is hereby declared to be a public nuisance. 3. Each incident of smoking in violation of this chapter is subject to a one -hundred -fifty - dollar fine. 4. The provisions of this section are not to be construed as exclusive remedies and, in the event of violation, the city may pursue any proceedings or remedies otherwise provided by law. ".0 am 000 PA" 42