Loading...
HomeMy WebLinkAboutItem No. 18 LEMC Amend. 2021-01 Chp. 17.156 Related to Cannabis UsesCity Council Agenda Report City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 21-286 Agenda Date: 8/10/2021 Status: Approval FinalVersion: 1 File Type: Council Public Hearing In Control: City Council / Successor Agency Agenda Number: 18) Municipal Code Amendment 2021-01: Amendments to Chapter 17.156 of the Lake Elsinore Municipal Code (LEMC) Related to Cannabis Uses 1.Adopt by title only and waive further reading of AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING AND RESTATING IN ITS ENTIRETY CHAPTER 17.156 “CANNABIS USES” OF THE LAKE ELSINORE MUNICIPAL CODE; and 2.Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING AND RESTATING IN ITS ENTIRETY CHAPTER 17.156 “CANNABIS USES” OF THE LAKE ELSINORE MUNICIPAL CODE. Page 1 City of Lake Elsinore Printed on 8/5/2021 Page 1 of 5 REPORT TO CITY COUNCIL To: Honorable Mayor and Members of the City Council From: Jason Simpson, City Manager Prepared By: Justin Kirk, AICP, Assistant Community Development Director Date: August 10, 2021 Subject: Municipal Code Amendment 2021-01: Amendments to Chapter 17.156 of the Lake Elsinore Municipal Code (LEMC) Related to Cannabis Uses Recommendation 1. Adopt by title only and waive further reading AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING AND RESTATING IN ITS ENTIRETY CHAPTER 17.156 “CANNABIS USES” OF THE LAKE ELSINORE MUNICIPAL CODE; and 2. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING AND RESTATING IN ITS ENTIRETY CHAPTER 17.156 “CANNABIS USES” OF THE LAKE ELSINORE MUNICIPAL CODE. Background In 2016 California voters passed Proposition 64, the Adult Use of Marijuana Act (AUMA). Under Proposition 64, adults 21 years of age or older can legally grow, possess, and use cannabis for non-medicinal purposes, with certain restrictions. Additionally, AUMA also made it legal to sell and distribute cannabis through a regulated business as of January 1, 2018. In December 2017, the City Council adopted Lake Elsinore Municipal Code (LEMC) Chapter 17.156 allowing cannabis-related businesses in the City of Lake Elsinore. A copy of the existing regulations is attached (Exhibit D). On August 11, 2020, by a unanimous vote, the City Council adopted an interim urgency ordinance imposing a 45-day moratorium on the acceptance and processing of new entitlement applications for cannabis related land uses, citing concerns related to concentration and proliferation of the licensed facilities and the potentially unknown impacts of these facilities. On September 22, 2020, the City Council adopted an emergency ordinance to extend the 45-day moratorium on the acceptance and processing of new entitlement applications for cannabis related land uses for five (5) months and 21 days and directed staff to continue to process the existing application received prior to the moratorium, facilitate construction of existing licensed facilities and to monitor the impacts of the existing uses in operation. The moratorium was again extended on March 9, 2021 and will expire on August 12, 2021. To date, the City Council has approved 19 cannabis facilities with a combined operating area of approximately 197,211 SF. Of these 19 facilities, seven (7) have opened with a combined area of MCA 2021-01 (Cannabis Ordinance) 08/10/2021 Page 2 of 5 approximately 87,347 SF. There is currently one (1) application in process totaling approximately 11,612 SF. A summary of these facilities with current status has been included in Exhibit E. To address concerns that led to the City Council’s adoption of the moratorium, City staff was directed to evaluate the impacts associated with the number of facilities that have been entitled. During the moratorium, City staff monitored the operational cannabis facilities to assess potential impacts to the surrounding business communities. City staff observed that the operational facilities were operating in compliance with their Conditional Use Permits and were not creating any observable adverse impacts to the surrounding businesses. However, as indicated above, only seven (7) facilities have become operational at this time, and a number of the entitled facilities remain in various stages of completing improvements. During the moratorium and in consultation with the City Council Cannabis Subcommittee, City staff also reviewed LEMC Chapter 17.156 to ensure compliance with applicable State law and consistency with the City’s current implementation of the Cannabis program. More general clean- up revisions aimed at clarifying the regulatory structure, eliminating internal inconsistencies, more clearly defining the character and functions of certain uses, and consolidating standards applicable to all cannabis business types were also identified. A redlined version of the proposed substantive changes is attached (Exhibit C). The proposed changes to the City’s cannabis regulations were routed to (i) all operational cannabis businesses, (ii) cannabis business owners with entitled, but not yet operational facilities, (iii) the applicant representative for the project currently being processed by the City, and (iv) other interested parties. To date, staff has communicated with nine (9) entities regarding the proposed modifications. The consensus of feedback received included the changes were consistent with previous discussions, were pragmatic and largely did not affect their operations. Planning Commission Action On July 20, 2021, at a duly noticed public hearing, the Lake Elsinore Planning Commission by a 4-0 vote (1 Commissioner absent) recommended that the City Council adopt an ordinance to amend and restate in its entirety LEMC Chapter 17.156 Cannabis Uses. No public comments were received prior to or during the Planning Commission hearing. The City Attorney’s office recommended deletion of proposed Section 17.156.180 “Severability” as a codified provision of the LEMC as presented to the Planning Commission since the severability clause is included in the proposed enabling ordinance consistent with existing City practice. Discussion Details of Proposed Changes The proposed modifications can be classified into three (3) categories: (i) relocating certain subparts to better differentiate general provisions from those provisions applicable to specific types of facilities, (ii) changes to clarify or update the regulatory structure, and (iii) changes in how the program is implemented. Reorganization. The revised Chapter 17.156 consolidates standards that are applicable to all cannabis business types which were previously spread across multiple sections of the ordinance. The changes include:  Section 17.156.040 specifies the location of Cannabis Facilities as being permitted in either the Limited Manufacturing (M-1) or General Manufacturing (M-2) zoning district. MCA 2021-01 (Cannabis Ordinance) 08/10/2021 Page 3 of 5  Section 17.156.060 consolidates into general provisions permits required (valid City issued Conditional Use Permit, cannabis business permit, building permit, and City issued certificate of occupancy).  Section 17.156.070 consolidates Business Permit regulations into general provisions because the requirement is applicable to all cannabis business types.  Section 17.156.130 consolidates site security into general provisions because the requirement is applicable to all cannabis business types.  Section 17.156.140 consolidates prohibited activities (consumption prohibited, alcohol, juveniles on site) into general provisions because the requirement is applicable to all cannabis business types.  Section 17.156.150 consolidates on-site signage; all standards consistent with existing ordinance for each business type. These consolidations and reformatting do not modify the existing codified text and are not readily shown in the redline Chapter 17.156 attached as Exhibit C. Regulatory Structure. Changes have also been made to better reflect the City’s practices, add clarity and update Chapter 17.156, including:  Definitions (17.156.030) have been added or modified.  Site security plans for all facilities have been updated.  Eliminated requirement that accessory use (dispensaries and distribution) be limited to 50% of gross proceeds of the business.  Added clarification that delivery services are allowed in conjunction with a dispensary.  Removed reference of allowing anyone in a distribution facility except those with medical cards, qualified patients, primary caregivers, persons with identification cards, etc. The removal of text is a cleanup since distribution facilities are closed to the public.  Added language to clarify retail sales are allowed in conjunction with cultivation and/or manufacturing facilities only when a dispensary and/or distribution facility has also been approved to operate in conjunction with the cultivation facility and that sales only occur within the dispensary and/or distribution portion of the facility.  Added language to recognize outdoor cultivation is allowed within residential areas (for medical and recreational purposes).  Added clarification that cultivation is allowed in private residences consistent with State law.  Removed prohibition of cultivating cannabis in a multi-dwelling unit and the required 1000 foot buffer from schools, community centers, or parks, in order to be consistent with State law.  Removed requirement that operators submit of an annual financial report to the City. The new requirement allows operators to retain financial records for 5 years, with submittal to the City upon request. Program Implementation. Changes in how the cannabis program is designed centered on the addition of 17.156.050 “Limitation On Uses” and expanded operational hours for retail uses:  Modified the maximum of 5 cannabis businesses in Limited Manufacturing (M-1) zone and 5 cannabis businesses in General Manufacturing (M-2) zone, to a maximum of 10 businesses within the M-1 and M-2 zones. MCA 2021-01 (Cannabis Ordinance) 08/10/2021 Page 4 of 5  In order to exceed the maximum of 10 businesses, a finding of public convenience must be made by the Planning Commission (rather than the Community Development Director) as part of the consideration for a conditional use permit. The public convenience finding includes consideration of whether the new facility is within 500 feet from any one existing cannabis use or 1,000 feet from any 2 cannabis uses.  Expanded the 1,000 foot buffer from sensitive receptors of schools, community centers, or parks to all types of cannabis businesses (existing ordinance only requires for cultivation).  Modified hours of operation from closing at 9:00 pm to 10:00 pm, for dispensaries and distribution facilities. This is consistent with hours of operation of surrounding jurisdictions (Wildomar and Riverside County). Analysis The proposed modifications related to the reformatting and minor changes largely do not alter the way cannabis uses are currently regulated. Rather, these changes are meant to create a clearer regulatory framework that is reflective of the way the City currently regulates cannabis uses. Further, these proposed changes eliminate redundant language codified in multiple cannabis business use types without any difference in legal requirements. The proposed changes to the cannabis program design are intended to address concerns related to the concentration and proliferation of the licensed facilities and the potential impacts on the surrounding business community. Currently, the regulatory framework restricts uses to five (5) facilities in the Limited Manufacturing (M-1) and five (5) in the General Manufacturing (M-2) zoning districts. The Community Development Director may authorize the planning application processing of additional facilities, provided findings of public convenience can be made in accordance with the provisions of the LEMC. The proposed ordinance replaces the distinct cap of five (5) facilities in the Limited Manufacturing (M-1) and five (5) in the General Manufacturing (M-2) with an aggregate cap of ten (10) facilities citywide in either the M-1 and M-2 districts. Once a threshold of ten (10) or more licensed facilities has been reached, new applicants must demonstrate that the public convenience will be served by an additional facility. As part of this finding and in order to address potential issues related to concentration, a new buffer criteria is proposed to preclude a new facility from being within 500 feet from any one existing cannabis use or 1,000 feet from any two (2) cannabis uses to be met. The intent of this buffer criteria is to create adequate separation and avoid potential cumulative impacts of concentration in industrial areas. Another element of the proposed changes to LEMC Chapter 17.156 is shifting the approval of the finding of public convenience from the Community Development Director as a preliminary or pre- application screening to the Planning Commission and ultimately to the City Council as part of the approval of a Conditional Use Permit. By elevating this finding in the entitlement process, it increases the transparency of the decision-making process and requires additional demonstration of compatibility with the surrounding uses and avoidance of potential negative impacts of over- concentration as part of the public hearing. Also modified is the proposed expansion of the 1,000-foot buffer between cannabis uses and sensitive uses to apply to all cannabis uses consistent with State requirements. Existing LEMC regulations apply this 1,000 buffer to cultivation uses only. MCA 2021-01 (Cannabis Ordinance) 08/10/2021 Page 5 of 5 Finally, the proposed ordinance expands hours of operation to allow cannabis businesses to operate until 10:00 pm rather than 9:00 pm. The revised hours of operation is consistent with surrounding jurisdictional regulations (Wildomar and Riverside County). Expiration of Moratorium and Proposed Ordinances The moratorium temporarily prohibiting the acceptance and processing of new cannabis applications will expire on August 12, 2021. As detailed above, the proposed changes to LEMC Chapter 17.156 are recommended to clarify and improve the City’s cannabis regulatory framework. The City Attorney recommends immediate approval of the urgency ordinance and first reading of the non-urgency ordinance. With the exception of the urgency provisions, the ordinances are identical. The urgency ordinance requires a four-fifths vote of the Council to pass and would take effect immediately. The urgency ordinance will ensure consistent implementation of the City’s cannabis regulations going forward and avoid potential disparities resulting from the interim implementation of the existing regulations pending the effective date of the second ordinance. The second ordinance, substantively identical, will proceed through the standard procedure of introduction and second reading/adoption, plus 30 days, to become effective. Environmental Determination The proposed amendments to the Lake Elsinore Municipal Code are exempt from the California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”) and the State CEQA Guidelines (14. Cal. Code Regs §§15000 et seq.), specifically pursuant to pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility that it may have a significant effect on the environment, and because it is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines. Individual Conditional Use Permit applications will be reviewed on a case by case basis upon application submittal. Exhibits: A. Urgency Ordinance Amending Chapter 17.156 B. Ordinance Amending Chapter 17.156 C. Redlined Chapter 17.156 D. Existing Chapter 17.156 E. Summary of Entitled and Pending Cannabis Use Status F. City Council Cannabis Subcommittee Report G. Map of Cannabis Facilities – East Lake H. Map of Cannabis Facilities – Business District I. Radius Map of Cannabis Facilities – East Lake J. Radius Map of Cannabis Facilities – Business District ORDINANCE NO. 2021-____ AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING AND RESTATING IN ITS ENTIRETY CHAPTER 17.156 “CANNABIS USES” OF THE LAKE ELSINORE MUNICIPAL CODE WHEREAS, Chapter 17.156 (Cannabis Uses) of the Lake Elsinore Municipal Code (“LEMC”) sets forth the regulation for cannabis related uses; and, WHEREAS, on August 11, 2020, pursuant to Section 65858 of the California Government Code, the City Council of the City of Lake Elsinore (“City Council”) adopted an interim urgency ordinance imposing a 45-day moratorium on the acceptance and processing of new entitlement applications for cannabis related uses; and WHEREAS, on August 25, 2020, the City Council confirmed the adoption of Urgency Ordinance No. 1437 imposing a 45-day moratorium on the acceptance and processing of new entitlement applications for cannabis related uses; and WHEREAS, on September 22, 2020 and on March 9, 2021 the City Council conducted public hearings pursuant to California Government Code Section 65858(a) and, based on the evidence presented, extended the moratorium imposed by Ordinance No. 1437 which will expire on August 12, 2021; and WHEREAS, during the moratorium, the City evaluated the impacts of the cannabis facilities operating in the City and reviewed the City’s existing cannabis regulations as set forth in LEMC Chapter 17.156; and WHEREAS, the City desires to amend LEMC Chapter 17.156 to address concerns related to the concentration and proliferation of cannabis uses and to clarify the regulatory framework to more efficiently regulate cannabis uses in accordance with State law and in order to promote the health, safety, and general welfare of the residents and businesses within the City; and WHEREAS, on July 20, 2021, at a duly noticed public hearing the Planning Commission considered evidence presented by the Community Development Department and other interested parties with respect to proposed amendments to LEMC Chapter 17.156 and recommended that the City Council approve the amendments attached hereto as Exhibit “A”; and WHEREAS, pursuant to Government Code Section 65858(d), the City Council Cannabis Subcommittee issued a written report describing the measures taken and to be taken to alleviate the circumstances and conditions that led to the adoption of Ordinance No. 1437, including the proposed adoption of the amendment to LEMC Chapter 17.156 (“Council Report”); and Ordinance No. 21- ______ Page 2 of 20 WHEREAS, on August 10, 2021, at a duly noticed public hearing the City Council considered the Council Report, the recommendation of the Planning Commission and the Community Development Department, and oral and written testimony received by other interested parties. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The above recitals are true and correct and incorporated fully herein. SECTION 2. The City Council has reviewed and analyzed the proposed amendments of Title 17 of the Lake Elsinore Municipal Code pursuant to the California Planning and Zoning Laws (Cal. Gov. Code Sec 65000 et. seq.), the Lake Elsinore General Plan and the Lake Elsinore Municipal Code and finds that the proposed amendments are consistent with the requirements of California Planning and Zoning Law and with the goals and policies of the Lake Elsinore General Plan and the Lake Elsinore Municipal Code. SECTION 3. The City Council hereby finds and determines that the proposed amendments to the Lake Elsinore Municipal Code are exempt from the California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”) and the State CEQA Guidelines (14. Cal. Code Regs §§15000 et seq.), specifically pursuant to pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility that it may have a significant effect on the environment, and because it is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines. SECTION 4. In accordance with Government Code Section 65855, the City Council sets forth the following findings for its recommendation that the City Council amend Title 17 of the Lake Elsinore Municipal Code: 1. The proposed zoning code amendments will not be: a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. The proposed zoning code amendments have been analyzed relative to their potential to have detrimental effects and it has been determined that the proposed amendments have no negative impact upon the public’s health, safety, comfort and general welfare because the amendments will provide additional regulation of medical and recreational cannabis within the City. 2. The proposed zoning code amendments are consistent with the Goals, Policies and Implementation Programs of the General Plan and the development standards established with the LEMC. The proposed zoning code amendments do not create new zoning districts, remove existing zoning districts or otherwise modify land use requirements. The proposed zoning code amendments do not affect the density or intensity of uses and will not interfere with the implementation of the goals, policies and implementation programs of the General Plan. Ordinance No. 21- ______ Page 3 of 20 SECTION 5. Based upon the evidence presented, both written and testimonial, and the above findings, the City Council hereby adopts the amendment and restatement of LEMC Chapter 17.156 set forth in its entirety as Exhibit “A”. SECTION 6. This Urgency Ordinance is enacted pursuant to the authority conferred upon the City by Government Code Sections 36937 and shall be in full force and effect immediately upon its adoption by a four-fifths (4/5) vote of the City Council. This Urgency Ordinance shall take effect immediately upon adoption and shall become operative on August 10, 2021. SECTION 7. The adoption of this Urgency Ordinance is necessary for the immediate preservation of the public peace, health, or safety, as those terms are defined in Government Code Section 36937(b), in at least the following respects: the moratorium on the acceptance and processing of new entitlement applications for cannabis related land uses imposed by Ordinance No. 1437 will expire on August 12, 2021, the proposed amendments to the City’s cannabis regulations set forth in this Ordinance are in the best interests of the City and in furtherance of the health, safety and welfare of City residents and businesses, and the immediate adoption of the proposed amendments to LEMC Chapter 17.156 set forth herein is essential to ensure consistent implementation of the City’s cannabis regulations going forward. and avoid potential disparities resulting from implementation of the existing regulations on an Accordingly, this Ordinance shall take effect immediately upon adoption. SECTION 8. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more section, subsection, subdivision, sen tence, clause, phrase, or portion thereof be declared invalid or unconstitutional. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this ____ day of _____________ 2021. _______________________ Robert E. Magee, Mayor Attest: ____________________ Candice Alvarez, MMC City Clerk Ordinance No. 21- ______ Page 4 of 20 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereb y certify that Urgency Ordinance No. 2021-___ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of March 23, 2021 by the following vote: AYES: NOES: ABSENT: ABSTAIN: __________________ Candice Alvarez, MMC City Clerk Ordinance No. 21- ______ Page 5 of 20 EXHIBIT “A” Chapter 17.156 CANNABIS USES Sections: 17.156.010 Purpose and intent. 17.156.020 Interpretation and applicability. 17.156.030 Definitions. 17.156.040 Permitted locations. 17.156.050 Limitation on uses. 17.156.060 Permits required 17.156.070 Cannabis business permit. 17.156.080 Cannabis dispensaries. 17.156.090 Cannabis distribution. 17.156.100 Cannabis cultivation. 17.156.110 Cannabis manufacturing. 17.156.120 Cannabis testing laboratory. 17.156.130 Site Security. 17.156.140 Prohibited activity. 17.156.150 Signs. 17.156.160 Enforcement. 17.156.170 M-1 and M-2 zoning districts. 17.156.010 Purpose and intent. The purpose and intent of this chapter are to regulate the dispensing, cultivation, processing, manufacturing, testing and distribution of medical and recreational cannabis in a manner that protects the public health, safety and welfare of the City and mitigates the costs to the community of the oversight of these activities. Nothing in this chapter shall be construed to: allow persons to engage in conduct that endangers others or causes a public nuisance; or allow any activity relating to the cultivation, manufacturing, testing, distribution or consumption of cannabis that is otherwise illegal under California law. 17.156.020 Interpretation and applicability. Operation of cannabis facilities within the City shall be permitted upon the application and approval of both a City-issued conditional use permit pertaining to the location of the facility in accordance with the criteria and procedures set forth in this chapter and the City’s municipal code, upon application and subject to such additional regulations as may be promulgated pursuant to this chapter. A. The cultivation, processing, and distribution of cannabis in the City is controlled by the provisions of this chapter. Ordinance No. 21- ______ Page 6 of 20 B. Nothing in this chapter is intended, nor shall it be construed, to burden any defense to criminal prosecution otherwise afforded by California law. C. Nothing in this chapter is intended, nor shall it be construed, to preclude a landlord from limiting or prohibiting cannabis cultivation, consumption, processing, and distribution or other related activities by tenants. D. Nothing in this chapter is intended, nor shall it be construed, to exempt any cannabis- related activity from any applicable local or State construction, environmental, electrical, plumbing, land use, labor or employment laws or any other building or land use standards or permitting requirements. E. Nothing is this chapter is intended, nor shall it be construed, to make legal any sale, cultivation, transportation, manufacture, or other use of cannabis that is otherwise prohibited or non-compliant under California law, as amended from time to time. F. All medical cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities and/or recreational cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities within City limits shall be subject to the provisions of this chapter, regardless of whether the use existed or occurred prior to adoption of this chapter. 17.156.030 Definitions. When used in this chapter, the following words shall have the meanings ascribed to them in this section. 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 regulatory provision. Words and phrases not specifically defined in this chapter shall have the meanings ascribed to them by the following sources: A. The CUA of 1996 (California Health and Safety Code Section 11362.5), and as may be amended from time to time; B. The MMPA (California Health and Safety Code Sections 11362.7 through 11362.83); C. The MMRSA (California Business and Professions Code Sections 19300 through 19355) as may be amended from time to time; D. The AMUA (Proposition 64, The Adult Use of cannabis Act). “Cannabis” has the same meaning as in California Health, Safety Code Section 11018 and Proposition 64, Cannabis Legalization as may be amended from time to time. For the purpose of this chapter, “cannabis” does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. “Cannabis business” means any use that conducts medical cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities and/or recreational cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities. “Cannabis business permit” means a specific permit required for any commercial operation of any cannabis oriented business subject to the approval of a conditional use permit. Ordinance No. 21- ______ Page 7 of 20 “Cannabis cultivation” means the planting, growing, harvesting, drying or processing of any cannabis plants or any part thereof, for medical use consistent with the Compassionate Use Act (California Health and Safety Code Section 11362.5), the Medical Cannabis Program Act (California Health and Safety Code Section 11362.7 et seq.), and Proposition 64, Cannabis Legalization. “Cannabis dispensary” means any facility or location where medical cannabis or recreational cannabis is made available to or distributed by or distributed to one or more individuals operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Cannabis distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of medical cannabis and/or recreational cannabis products between entities, including delivery to end users, operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Cannabis testing laboratory” means a facility for testing, analysis, and/or research. Similar types of lab uses include medical labs, soils, materials testing labs, and forensic labs. Laboratories are a necessary component of the cannabis licensing scheme because testing is required to be done on each cannabis crop to determine constituents such as cannabinols (CBD’s), tetrahydrocannabinol (THC), pesticide residuals, mold, and fungus. “Cannabis manufacturing facility” means a facility where the production of medical cannabis or recreational cannabis concentrate, and/or the preparation, propagation, or compounding of manufactured medical cannabis, either directly or indirectly or by extraction methods or independently by means of chemical synthesis, or the packaging or repackaging of medical cannabis or recreational cannabis products, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid condition use permit, and a development agreement if applicable, all issued in accordance with this chapter and the City’s municipal code, and operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Cannabis use” means any business that conducts cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities. “Delivery” shall have the same meaning as the definition set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time. "Gross proceeds" means the value proceeding or accruing from the sale of tangible propert y and/or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. “Indoor” means any location within the City that is within a fully enclosed, occupied (as defined in this section) dwelling, dwelling unit or housing unit. “Occupied” means currently, presently, and lawfully utilized in accordance with an issued certificate of occupancy. Ordinance No. 21- ______ Page 8 of 20 “Outdoor” means any location within the City that is not within a fully enclosed, occupied (as defined in this section) dwelling, dwelling unit or housing unit. “Parcel” means any parcel of real property that may be separately sold in compliance with the Subdivision Map Act (California Government Code Section 66410 et seq.). “Private residence” means a house, apartment unit, mobile home or other similar dwelling, and includes any accessory structure that is fully enclosed, secure and located upon the grounds of the private residence. “School” means any educational facility which primarily provides educational services to individuals under the age of 18. 17.156.040 Permitted Locations. A. Permitted Locations. Cannabis uses shall only be located in the Limited Manufacturing (M-1) or General Manufacturing (M-2) zoning districts. 17.156.050 Limitation on uses. A. There shall be no more than 10 cannabis use facilities combined within the M-1 zone district and the M-2 zone district. In the event that the City has approved 10 or more cannabis uses as provided herein, an applicant may elect to submit an application with a request for a finding of public convenience that an additional permit should be issued. Such request shall include a statement by the applicant demonstrating how the public convenience will be served by issuance of additional cannabis uses. The following criteria will be considered as part of the findings for a Conditional Use Permit in evaluating the applicant’s request for a determination of public convenience. 1. The proposed use is located no closer than 500 feet from any one existing cannabis use or 1,000 feet from any two existing cannabis uses as measured from the property line. 2. Identify the special and unusual circumstances present to justify a new cannabis business when similar businesses exist nearby, or how it will provide a needed service not currently being met. 3. Provide/demonstrate how the economic benefit of the cannabis business outweighs potential negative impacts to the community. 4. Demonstrate reasonable efforts to seek community input on the proposed cannabis business. 5. The proposed use is not located in an existing targeted law enforcement area as documented by specific and abnormally high general health and safety indicators that have some nexus with alcohol use or substance abuse. 6. The proposed use is not within a crime reporting area that exhibits an excess amount of alcohol or substance abuse related crimes, greater than a 20 percent increase of the reported crimes from the previous year. Ordinance No. 21- ______ Page 9 of 20 7. The proposed use is consistent with the direction and policies set forth by the Council. B. Cannabis uses shall not be located within 1,000 feet of any school, community center, or park. 17.156.060 Permits required. A. Permits Required. All cannabis uses shall obtain the following prior to operation: 1. Valid City-issued conditional use permit 2. Cannabis business permit 3. Building permit(s) 4. City-issued certificate of occupancy 17.156.070 Cannabis business permit. A. Except as otherwise set forth in this chapter, it shall be unlawful for any person or entity to operate, in or upon any property, a cannabis business without first obtaining all required State licenses and a business license or permits issued by the City. Each State license type available in the MMRSA or AMUA is eligible to apply for a cannabis business permit. Unless otherwise set forth in this chapter, no person shall engage in a cannabis business without possessing all applicable State licenses and all applicable City permits and licenses. Revocation of a State license shall constitute grounds for the City to suspend or revoke any permit or license issued by the City. B. All cannabis business permittees must at all times maintain liability insurance having aggregate policy limits in an amount not less than $1,000,000. C. The City may impose an annual cannabis business permit fee at a rate set by a Council resolution. D. All cannabis business permittees shall be subject to an annual regulatory inspection by the City to ensure compliance with all of the applicable provisions of this chapter. E. It shall be unlawful for the owner of a building to allow the use of any portion of a building by a cannabis business unless the tenant has a valid cannabis business permit, or has applied for and not been denied, a cannabis business permit. Each owner of a building whose tenant is a cannabis business permit applicant shall execute an acknowledgement that the applicant has the owner's permission and consent to operate a cannabis business at the subject property. F. Cannabis Business Permit displayed. Any cannabis use shall display its current valid cannabis business permit issued in accordance with this chapter at all times inside the lobby or waiting area of the main entrance to the site, in a conspicuous manner so that it may be readily seen by all persons entering the site. G. The cannabis business permittee shall retain financial reports on an annual basis detailing the gross proceeds of the business for a minimum of five (5) years and shall provide the reports to the City at its request. Ordinance No. 21- ______ Page 10 of 20 17.156.080 Cannabis dispensaries. A. Cannabis dispensaries shall be permitted as an accessory use to either a cannabis cultivation facility or cannabis manufacturing facility. The dispensary shall not exceed 25 percent of the total area of the business. B. Storage. A cannabis dispensary shall have adequate locked storage on the dispensary property, identified and approved as a part of the security plan, for af ter-hours storage of cannabis. Cannabis shall be stored at the dispensary property in secured rooms that are completely enclosed or in a safe that is bolted to the floor. C. Signs. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis dispensary where they will be visible to members and customers in the normal course of a transaction, stating: 1. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” 2. “Juveniles are prohibited from entering this property unless they are a qualified patient, or a primary caregiver.” 3. “Neither the City of Lake Elsinore, nor any other governmental agency, has tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.” 4. Signs on the cannabis dispensary building shall not obstruct the entrance or windows of the dispensary. D. Dispensary Site Restricted. 1. All entrances into a cannabis dispensary’s building shall be locked from the exterior at all times with entry controlled by dispensary personnel. 2. A manager must be on the cannabis dispensary site at all times when any other person, except for security guards, is on the site. 3. While on the cannabis dispensary site, managers and staff of the cannabis dispensary permittee must wear their City-issued cannabis dispensary identification badge at all times. 4. Any person other than managers or staff shall be escorted by a manager at all times while in the medical cannabis dispensary building. E. Criminal History. No cannabis dispensary permittee or manager of a dispensary shall operate a dispensary if he or she has been convicted of a felony, or is currently on parole or probation for the sale or distribution of a controlled substance. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Notwithstanding the above, a person may not be denied the ability to obtain a permit or operate a dispensary solely on the basis that the person has been convicted of a felony if the person has obtained a certificate of rehabilitation (expungement of felony record) Ordinance No. 21- ______ Page 11 of 20 under California law or similar Federal statute or State law under which the expungement was granted. F. Hours of Operation. The maximum hours of operation for a medical cannabis dispensary shall be daily from 7:00 a.m. to 10:00 p.m. unless the more restrictive hours have been imposed as a condition of the cannabis business permit or conditional use permit. 17.156.090 Cannabis distribution A. Limitation of Use. Cannabis distribution shall be permitted as an accessory use to either a cannabis cultivation facility or cannabis manufacturing facility. The distribution use shall not exceed 25 percent of the total area of the business. B. Storage. A cannabis distribution facility shall have adequate locked storage on the distribution property, identified and approved as a part of the security plan, for after-hours storage of cannabis. Cannabis shall be stored at the distribution property in secured rooms that are completely enclosed or in a safe that is bolted to the floor. C. Distribution Facility Site Restricted. 1. All entrances into a cannabis distribution facility’s building shall be locked from the exterior at all times with entry controlled by distribution facility personnel. 2. No cannabis distribution facility permittee shall allow anyone in the distribution facility building, except for qualified patients, primary caregivers, persons with identification cards, managers, staff, and other persons with bona fide purposes for being in the distribution facility, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the cannabis distribution facility site at all times when any other person, except for security guards, is on the site. 4. While on the cannabis distribution facility site, managers and staff of the medical cannabis dispensary permitee must wear their City-issued cannabis distribution facility identification badge at all times. 5. Any person other than managers or staff shall be escorted by a manager at all times while in the medical cannabis distribution facility building. D. Delivery. Delivery is allowed in conjunction with a legal cannabis distribution facility. E. Criminal History. No cannabis distribution permittee or manager of a dispensary shall operate a dispensary if he or she has been convicted of a felony, or is currently on parole or probation for the sale or distribution of a controlled substance. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Notwithstanding the above, a person may not be denied the ability to obtain a permit or operate a distribution facility solely on the basis that the person has been convicted of a felony if the person has obtained a certificate of rehabilitation (expungement of felony record) under California law or similar federal statute or state law under which the expungement was granted. Ordinance No. 21- ______ Page 12 of 20 F. Hours of Operation. The maximum hours of operation for a cannabis distribution facility shall be daily from 7:00 a.m. to 10:00 p.m. unless the more restrictive hours have been imposed as a condition of the cannabis business permit or conditional use permit. 17.156.100 Cannabis cultivation. A. No person owning, renting, leasing, occupying or having charge or possession of any parcel shall cause or allow such parcel to be used for the outdoor cultivation, except as provided herein, of any cannabis plant. B. Cannabis Cultivation shall be limited to interior areas. No person owning, renting, leasing, occupying, or having charge or possession of any parcel shall cause or allow indoor cultivation of Cannabis on such parcel to be visible from any street, sidewalk, or other place freely accessible by the public. C. Cultivation Site Buildings. A cultivation site shall comply with the following requirements: 1. Entrances. All entrances into the buildings on the cultivation site shall be locked at all times with entry controlled by the cannabis cultivation permitee’s managers and staff. 2. Main entrance and lobby. The cultivation site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the cultivation areas. 3. Cultivation area. All cultivation areas in any building on the cultivation site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis cultivation permittee. 4. Transport area. Each building with a cultivation area shall have an area designed for the secure transfer of cannabis from the cultivation area to a vehicle for transportation. 5. Storage area. Each building with a cultivation area shall have adequate storage space for cannabis that has completed the cultivation process or is otherwise not being cultivated. The storage areas shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the ca nnabis cultivation permittee. D. Compliance with Building, Fire Code and Permitting Requirements. Any person(s) cultivating cannabis with the use of grow lights, fans, ventilation devices or any other electrical or mechanical equipment shall comply with all applicable building and fire code requirements adopted by the City of Lake Elsinore, and shall obtain all permits required for such installation. E. Cultivation Site Restricted. 1. No cannabis cultivation permittee shall open their cultivation site to the public. Ordinance No. 21- ______ Page 13 of 20 2. No cannabis cultivation permittee shall allow anyone on the site, except for managers, staff, and other persons with a bonafide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the cultivation site at all times that when any other person, except for security guards, is on the site. 4. While on the cultivation site, managers and staff of the cannabis cultivation permittee must wear their cannabis cultivation identification badge, issued by the city, at all times. 5. Any person other than managers or staff who are on the cultivation site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. F. Retail Sales Prohibited. No person shall conduct any retail sales of any good or services on or from a permitted cultivation site unless a dispensary and/or distribution facility has also been approved to operate in conjunction with the cultivation facility. Retail sales shall only occur within the dispensary and/or distribution portion of the facility. G. There shall be a limited exemption from enforcement for violations of this ordinance by primary caregivers and qualified patients for small amounts of cannabis cultivation for their own medical use in all residential zone classifications when all of the following conditions and standards are complied with: 1. The premises shall contain a legally permitted private residence. Any private residence where cultivation occurs shall remain at all times a residence with legal and functioning cooking, sleeping and sanitation facilities with proper ingress and egress. 2. Cultivation of no more than 12 cannabis plants. In the event a qualified patient has a primary caregiver cultivating cannabis plants for the qualified patient, only one primary caregiver may cultivate no more than 12 cannabis plants for that qualified patient at any one time. In no circumstances shall a qualified patient have multiple primary caregivers cultivating cannabis plants for the qualified patient at the same time. 3. Two qualified patient limit to aggregate cannabis plant count for a maximum total of 24 cannabis plants per premises. 4. At least one qualified patient or one primary caregiver must live on the premises. 5. All cannabis plants must be reasonably secured to prevent access by minors or theft, to a standard satisfactory to the enforcement officer. 6. All cannabis cultivation outside of any building must be fully enclosed by an opaque fence at least six feet in height. The fence must be adequately secure to prevent unauthorized entry. Bushes, hedgerows, plastic sheeting, tarps, or cloth material shall not constitute an adequate fence under this subsection. Premises larger than five acres are exempt from this fencing provision so long as all other standards and conditions of subsection (G) of this section are complied with and any barriers used are otherwise consistent with the municipal code. Ordinance No. 21- ______ Page 14 of 20 7. Each building or outdoor area in which the cannabis plants are cultivated shall be set back at least ten feet from all boundaries of the premises. Such setback distance shall be measured in a straight line from the building in which the cannabis plants are cultivated, or, if the cannabis plants are cultivated in an outdoor area, from the fence required by subsection (G)(6) to the boundary line of the premises. 8. The designated cannabis cultivation area must not be visible from any public right-of- way. 9. If the person cultivating cannabis plants on any premises is not the owner of the premises, such person shall submit a letter from the owner(s) consenting to the cannabis cultivation on the parcel. This letter shall be examined by the enforcement officer, and shall then be returned to the submitter. The County shall prescribe forms for such letters. 10. Parolees or probationers shall not live on the premises unless the parolees or probationers have received confirmation from the court that he is allowed to use medical cannabis while on parole or probation pursuant to Health & Safety Code section 11362.795 which shall be subject to verification by the enforcement officer. 11. Qualified patients for whom the cannabis plants are being cultivated shall have valid Medical cannabis Identification Cards issued by the Riverside County Department of Public Health. Any primary caregiver cultivating cannabis plants for a qualified patient shall have a copy of the qualified patient’s valid Medical cannabis Identification Card issued by the Riverside County Department of Public Health which shall be kept on the premises. 12. The address for the premises must be posted and plainly visible from the public right-of-way. 13. The cannabis cultivation site shall not be upon any premises containing a child care center, church, or youth-oriented facility. H. There shall be a limited exemption from enforcement for violations of this ordinance by authorized persons for small amounts of cannabis cultivation for their own recreational use in all residential zone classifications when all of the following conditions and standards are complied with: 1. The premises shall contain a legally permitted private residence. Any private residence where cultivation occurs shall remain at all times a residence with legal and functioning cooking, sleeping and sanitation facilities with proper ingress and egress. 2. Cultivation of no more than six cannabis plants per private residence. 3. All cannabis plants must be reasonably secured to prevent access by minors or theft, to a standard satisfactory to the enforcement officer. 4. All cannabis cultivation outside of any building must be fully enclosed by an opaque fence at least six feet in height. The fence must be adequately secure to prevent unauthorized entry. Bushes, hedgerows, plastic sheeting, tarps, or cloth material shall not constitute an adequate fence under this subsection. Premises larger than five (5) acres are exempt from this fencing provision so long as all other standards and Ordinance No. 21- ______ Page 15 of 20 conditions of subsection (H) of this section are complied with and any barriers used are otherwise consistent with the municipal code. 5. Each building or outdoor area in which the cannabis plants are cultivated shall be set back at least ten feet from all boundaries of the premises. Such setback distance shall be measured in a straight line from the building in which the cannabis plants are cultivated, or, if the cannabis plants are cultivated in an outdoor area, from the fence required by subsection (H)(4) to the boundary line of the premises. 6. The designated cannabis cultivation area must not be visible from any public right-of- way. 7. If the person cultivating cannabis plants on any premises is not the owner of the premises, such person shall submit a letter from the owner(s) consenting to the cannabis cultivation on the parcel. This letter shall be examined by the enforcement officer, and shall then be returned to the submitter. The County shall prescribe forms for such letters. 8. Parolees or probationers shall not live on the premises unless the parolees or probationers have received confirmation from the court that he is allowed to use medical cannabis while on parole or probation pursuant to Health & Safety Code section 11362.795 which shall be subject to verification by the enforcement officer. 9. The address for the premises must be posted and plainly visible from the public right - of-way. 10. The cannabis cultivation site shall not be upon any premises containing a child care center, church, or youth-oriented facility. 17.156.110 Cannabis manufacturing A. Interior Only. Cannabis manufacturing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No cannabis manufacturing shall be visible from any public right-of-way. B. Operational Requirements. 1. Manufacturers are limited to certain equipment, methods, solvents, gases and mediums when creating medical cannabis extracts. 2. Manufacturing facilities with a state license of a Type-6 (non-volatile) or a Type 7 (volatile) classification may be allowed to operate under this chapter. 3. All equipment, systems and manufacturing processes must meet or exceed all applicable State and Federal requirements and regulations regarding air, water, health and safety, and handling, processing and storage of hazardous materials, solvents, gases and waste. No manufacturing facility shall commence operations or be issued any form of certificate of occupancy without first obtaining all required fire, environmental, health and safety, planning, and building certificates, permits and approvals required under the City’s municipal code and all other applicable County, State and Federal regulations. Ordinance No. 21- ______ Page 16 of 20 4. Manufacturers shall not use any Class I or Class II solvents, as t hose terms are defined in Federal Drug Administration Guidance, Table I, published in the Federal Register on December 24, 1997 (62 FR 67377), for extraction. 5. Manufacturers shall use butanes, ethanol, carbon dioxide, propane, heptane or other solvents exhibiting low to minimal potential human health-related toxicity for extraction, or other methods approved by the State of California. 6. All extraction manufacturing using hydrocarbons shall be conducted with a professionally certified closed loop extraction system conforming to current American Society of Mechanical Engineers (ASME) standards and ratings for pressure vessels and shall be operated in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present. 7. All extraction manufacturing using CO2 shall be conducted in a professionally certified CO2 based extraction system conforming to current ASME standards and ratings for pressure vessels with a pressure rating at all points being at or above 600 pounds per square inch, and shall be operated in an environment with proper ventilation. 8. All other methods of extraction shall be conducted in an environment appropriate to the solvent being used, with consideration to proper ventilation and ignition source controls. 9. Manufacturers may use heat, screens, presses, steam distillation, ice water, and other methods of extraction without employing solvents or gases to create kief, hashish, bubble hash, or vegetable oils or fats derived from natural sources, and other extracts. 10. Manufacturers using extract to create ingestible products shall only use food- grade ingredients. C. Ph.D. Chemist. As a condition of obtaining a City-issued medical cannabis regulatory permit and conditional use permit, a cannabis business permittee of a manufacturing facility desiring to operate under this chapter shall first verify that the cannabis business permittee employs or contracts with a person who has a Ph.D. in chemical sciences or related field of study and who shall supervise the design, installation and operation of the facility’s systems and manufacturing processes. Such person shall inspect the premises on a quarterly basis and provide such inspection report to the City. The cannabis business permittee shall submit to the City a written statement that he or she certifies under penalty of perjury that the name of the employee/contractor is true and correct. The employee/contractor shall also submit a written statement that he or she certifies under penalty of perjury his or her educational qualifications and verifying that the supervisor is employed or contracted to supervise the design, installation and operation of the facility’s systems and manufacturing processes. D. State Regulations. In the event the State of California implements health and safety regulations applicable to medical cannabis manufacturing facilities, upon implementation of such State regulations, all medical cannabis manufacturing facilities operators shall immediately implement the State regulations. Should there be a conflict between the provisions of this chapter and the State regulations, the State regulations shall control. Ordinance No. 21- ______ Page 17 of 20 E. Manufacturing Facility Restricted. 1. No cannabis manufacturing permittee shall open their facility to the public. 2. No cannabis manufacturing permittee shall allow anyone on the manufacturing site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the facility site at all times when any other person, except for security guards, is on the site. 4. While on the manufacturing site, managers and staff of the cannabis testing laboratory permittee must wear their cannabis testing identification badge, issued by the city, at all times. 5. Any person other than managers or staff who are on the manufacturing site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. F. Retail Sales Prohibited. No person shall conduct any retail sales of any good or services on or from a permitted cannabis manufacturing site unless a dispensary and/or distribution facility has also been approved to operate in conjunction with the manufacturing facility. Retail sales shall only occur within the dispensary and/or distribution portion of the facility. 17.156.120 Cannabis testing laboratory A. Interior Only. Cannabis testing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No cannabis manufacturing shall be visible from any public right-of-way. B. Operational Requirements. A cannabis testing laboratory site shall comply with the following requirements: 1. Entrances. All entrances into the buildings on the laboratory site shall be locked at all times with entry controlled by the cannabis testing laboratory permitee’s managers and staff. 2. Main Entrance and Lobby. The laboratory site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the testing areas. 3. Testing Area. All testing areas in any building on the laboratory site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis testing laboratory permittee. Ordinance No. 21- ______ Page 18 of 20 4. Transport Area. Each building with a testing area shall have an area designed for the secure transfer of cannabis from a vehicle to the testing area. 5. Storage area. Each building with a testing area shall have adequate storage space for cannabis that has been tested or is waiting to be tested. The storage areas shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis testing laboratory permittee. C. Laboratory Site Restricted. 1. No cannabis testing laboratory permittee shall open their laboratory site to the public. 2. No cannabis testing laboratory permittee shall allow anyone on the laboratory site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the laboratory site at all times when any other person, except for security guards, is on the site. 4. While on the laboratory site, managers and staff of the cannabis testing laboratory permittee must wear their cannabis testing identification badge, issued by the City, at all times. 5. Any person other than managers or staff who are on the laboratory site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. D. Retail Sales Prohibited. No person shall conduct any retail sales of any good or services on or from a permitted cannabis testing laboratory site. 17.156.130 Site Security A. Site Security. Each cannabis use business shall submit a site security plan which must include the following: 1. Security Surveillance Cameras. Security surveillance cameras and a video recording system must be installed to monitor all doors into the buildings on the site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of- way. The cameras and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the site. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive. 2. Security Video Recording and Retention. Video from the security surveillance cameras must be recording at all times (24 hours a day, seven days a week) and the recording shall be maintained for at least 30 days. The video recordings shall be made available to the City upon request. Ordinance No. 21- ______ Page 19 of 20 3. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems must be installed and maintained in good working condition. The alarm system must include a private security company that is required to respond to every alarm. B. Site security plan must be submitted with the conditional use permit planning application and approved prior to occupancy. 17.156.140 Prohibited Activity A. Consumption prohibited. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, the site. B. Alcohol prohibited. No cannabis distribution permittee or manager shall cause or permit the sale, distribution, or consumption of alcoholic beverages on the distribution facility property; hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages; or operate a business on or adjacent to the distribution facility property that sells alcoholic beverages. No alcoholic beverages shall be allowed or stored on the distribution facility property. C. Juveniles prohibited. 1. No juvenile shall be on the site (except within dispensary facilities if the juvenile has a valid medical prescription) or operate a cannabis facility in any capacity, including but not limited to, as a manager, staff, employee, contractor, or volunteer. 17.156.150 Signs A. Signs inside cannabis dispensary facilities. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis dispensary facilities where they will be visible to members and customers in the normal course of a transaction, stating: 1. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” 2. “Juveniles are prohibited from entering this property unless they are a qualified patient, or a primary caregiver.” 3. “Neither the City of Lake Elsinore, nor any other governmental agency, has tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.” B. Signs inside cannabis distribution, cultivation and manufacturing facilities. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis distribution, cultivation and manufacturing facilities where they will be visible to members and customers in the normal course of a transaction, stating: 1. “The distribution, cultivation and/or manufacturing area of this business is not open to the public.” Ordinance No. 21- ______ Page 20 of 20 2. “Juveniles are prohibited from entering this property.” 3. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” C. Signs inside cannabis testing laboratory facilities. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis testing laboratory facilities where they will be visible to members and customers in the normal course of a transaction, stating: 1. “This site is not open to the public.” 2. “Retail sales of any goods and services are prohibited.” 3. “Juveniles are prohibited from entering this property.” 4. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” D. Signs shall not obstruct the entrance or windows of the dispensary. 17.156.160 Enforcement. Violations of this chapter shall be considered a public nuisance, and may be enforced according to the procedures set forth in Chapter 8.18 and by the enforcement remedies conferred upon the City by Civil Code Section 3494, Code of Civil Procedure Section 731, Government Code Section 38773, or other lawful authority. Nothing in this provision is intended to impair any viable legal defense to a person using or in possession of medical Cannabis pursuant to the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time. 17.156.170 M-1 and M-2 District Zones. Should there be a conflict between the provisions of this chapter and LEMC Chapters 17.136 or 17.140, this chapter shall control. ORDINANCE NO. 2021-____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING AND RESTATING IN ITS ENTIRETY CHAPTER 17.156 “CANNABIS USES” OF THE LAKE ELSINORE MUNICIPAL CODE WHEREAS, Chapter 17.156 (Cannabis Uses) of the Lake Elsinore Municipal Code (“LEMC”) sets forth the regulation for cannabis related uses; and, WHEREAS, on August 11, 2020, pursuant to Section 65858 of the California Government Code, the City Council of the City of Lake Elsinore (“City Council”) adopted an interim urgency ordinance imposing a 45-day moratorium on the acceptance and processing of new entitlement applications for cannabis related uses; and WHEREAS, on August 25, 2020, the City Council confirmed the adoption of Urgency Ordinance No. 1437 imposing a 45-day moratorium on the acceptance and processing of new entitlement applications for cannabis related uses; and WHEREAS, on September 22, 2020 and on March 9, 2021 the City Council conducted public hearings pursuant to California Government Code Section 65858(a) and, based on the evidence presented, extended the moratorium imposed by Ordinance No. 1437 which will expire on August 12, 2021; and WHEREAS, during the moratorium, the City evaluated the impacts of the cannabis facilities operating in the City and reviewed the City’s existing cannabis regulations as set forth in LEMC Chapter 17.156; and WHEREAS, the City desires to amend LEMC Chapter 17.156 to address concerns related to the concentration and proliferation of cannabis uses and to clarify the regulatory framework to more efficiently regulate cannabis uses in accordance with State law and in order to promote the health, safety, and general welfare of the residents and businesses within the City; and WHEREAS, on July 20, 2021, at a duly noticed public hearing the Planning Commission considered evidence presented by the Community Development Department and other interested parties with respect to proposed amendments to LEMC Chapter 17.156 and recommended that the City Council approve the amendments attached hereto as Exhibit “A”; and WHEREAS, pursuant to Government Code Section 65858(d), the City Council Cannabis Subcommittee issued a written report describing the measures taken and to be taken to alleviate the circumstances and conditions that led to the adoption of Ordinance No. 1437, including the proposed adoption of the amendment to LEMC Chapter 17.156 (“Council Report”); and Ordinance No. 21- ______ Page 2 of 19 WHEREAS, on August 10, 2021, at a duly noticed public hearing the City Council considered the Council Report, the recommendation of the Planning Commission and the Community Development Department, and oral and written testimony received by other interested parties. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The above recitals are true and correct and incorporated fully herein. SECTION 2. The City Council has reviewed and analyzed the proposed amendments of Title 17 of the Lake Elsinore Municipal Code pursuant to the California Planning and Zoning Laws (Cal. Gov. Code Sec 65000 et. seq.), the Lake Elsinore General Plan and the Lake Elsinore Municipal Code and finds that the proposed amendments are consistent with the requirements of California Planning and Zoning Law and with the goals and policies of the Lake Elsinore General Plan and the Lake Elsinore Municipal Code. SECTION 3. The City Council hereby finds and determines that the proposed amendments to the Lake Elsinore Municipal Code are exempt from the California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”) and the State CEQA Guidelines (14. Cal. Code Regs §§15000 et seq.), specifically pursuant to pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility that it may have a significant effect on the environment, and because it is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines. SECTION 4. In accordance with Government Code Section 65855, the City Council sets forth the following findings for its recommendation that the City Council amend Title 17 of the Lake Elsinore Municipal Code: 1. The proposed zoning code amendments will not be: a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. The proposed zoning code amendments have been analyzed relative to their potential to have detrimental effects and it has been determined that the proposed amendments have no negative impact upon the public’s health, safety, comfort and general welfare because the amendments will provide additional regulation of medical and recreational cannabis within the City. 2. The proposed zoning code amendments are consistent with the Goals, Policies and Implementation Programs of the General Plan and the development standards established with the LEMC. The proposed zoning code amendments do not create new zoning districts, remove existing zoning districts or otherwise modify land use requirements. The proposed zoning code amendments do not affect the density or intensity of uses and will not interfere with the implementation of the goals, policies and implementation programs of the General Plan. Ordinance No. 21- ______ Page 3 of 19 SECTION 5. Based upon the evidence presented, both written and testimonial, and the above findings, the City Council hereby adopts the amendment and restatement of LEMC Chapter 17.156 set forth in its entirety as Exhibit “A”. SECTION 6. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more section, subsection, subdivision, sentence, clause, phrase, or portion thereof be declared invalid or unconstitutional. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this ____ day of _____________ 2021. _______________________ Robert E. Magee, Mayor Attest: ____________________ Candice Alvarez, MMC City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2021-___ was introduced at the Regular meeting of the City Council of _________ __, 2021 and adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of _________ __, 2021 and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: __________________ Candice Alvarez, MMC City Clerk Ordinance No. 21- ______ Page 4 of 19 EXHIBIT “A” Chapter 17.156 CANNABIS USES Sections: 17.156.010 Purpose and intent. 17.156.020 Interpretation and applicability. 17.156.030 Definitions. 17.156.040 Permitted locations. 17.156.050 Limitation on uses. 17.156.060 Permits required 17.156.070 Cannabis business permit. 17.156.080 Cannabis dispensaries. 17.156.090 Cannabis distribution. 17.156.100 Cannabis cultivation. 17.156.110 Cannabis manufacturing. 17.156.120 Cannabis testing laboratory. 17.156.130 Site Security. 17.156.140 Prohibited activity. 17.156.150 Signs. 17.156.160 Enforcement. 17.156.170 M-1 and M-2 zoning districts. 17.156.010 Purpose and intent. The purpose and intent of this chapter are to regulate the dispensing, cultivation, processing, manufacturing, testing and distribution of medical and recreational cannabis in a manner that protects the public health, safety and welfare of the City and mitigates the costs to the community of the oversight of these activities. Nothing in this chapter shall be construed to: allow persons to engage in conduct that endangers others or causes a public nuisance; or allow any activity relating to the cultivation, manufacturing, testing, distribution or consumption of cannabis that is otherwise illegal under California law. 17.156.020 Interpretation and applicability. Operation of cannabis facilities within the City shall be permitted upon the application and approval of both a City-issued conditional use permit pertaining to the location of the facility in accordance with the criteria and procedures set forth in this chapter and the City’s municipal code, upon application and subject to such additional regulations as may be promulgated pursuant to this chapter. A. The cultivation, processing, and distribution of cannabis in the City is controlled by the provisions of this chapter. Ordinance No. 21- ______ Page 5 of 19 B. Nothing in this chapter is intended, nor shall it be construed, to burden any defense to criminal prosecution otherwise afforded by California law. C. Nothing in this chapter is intended, nor shall it be construed, to preclude a landlord from limiting or prohibiting cannabis cultivation, consumption, processing, and distribution or other related activities by tenants. D. Nothing in this chapter is intended, nor shall it be construed, to exempt any cannabis- related activity from any applicable local or State construction, environmental, electrical, plumbing, land use, labor or employment laws or any other building or land use standards or permitting requirements. E. Nothing is this chapter is intended, nor shall it be construed, to make legal any sale, cultivation, transportation, manufacture, or other use of cannabis that is otherwise prohibited or non-compliant under California law, as amended from time to time. F. All medical cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities and/or recreational cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities within City limits shall be subject to the pro visions of this chapter, regardless of whether the use existed or occurred prior to adoption of this chapter. 17.156.030 Definitions. When used in this chapter, the following words shall have the meanings ascribed to them in this section. 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 regulatory provision. Words and phrases not specifically defined in this chapter shall have the meanings ascribed to them by the following sources: A. The CUA of 1996 (California Health and Safety Code Section 11362.5), and as may be amended from time to time; B. The MMPA (California Health and Safety Code Sections 11362.7 through 11362.83); C. The MMRSA (California Business and Professions Code Sections 19300 through 19355) as may be amended from time to time; D. The AMUA (Proposition 64, The Adult Use of cannabis Act). “Cannabis” has the same meaning as in California Health, Safety Code Section 11018 and Proposition 64, Cannabis Legalization as may be amended from time to time. For the purpose of this chapter, “cannabis” does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. “Cannabis business” means any use that conducts medical cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities and/or recreational cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities. “Cannabis business permit” means a specific permit required for any commercial operation of any cannabis oriented business subject to the approval of a conditional use permit. Ordinance No. 21- ______ Page 6 of 19 “Cannabis cultivation” means the planting, growing, harvesting, drying or processing of any cannabis plants or any part thereof, for medical use consistent with the Compassionate Use Act (California Health and Safety Code Section 11362.5), the Medical Cannabis Program Act (California Health and Safety Code Section 11362.7 et seq.), and Proposition 64, Cannabis Legalization. “Cannabis dispensary” means any facility or location where medical cannabis or recreational cannabis is made available to or distributed by or distributed to one or more individuals operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Cannabis distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of medical cannabis and/or recreational cannabis products between entities, including delivery to end users, operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Cannabis testing laboratory” means a facility for testing, analysis, and/or research. Similar types of lab uses include medical labs, soils, materials testing labs, and forensic labs. Laboratories are a necessary component of the cannabis licensing scheme because testing is required to be done on each cannabis crop to determine constituents such as cannabinols (CBD’s), tetrahydrocannabinol (THC), pesticide residuals, mold, and fungus. “Cannabis manufacturing facility” means a facility where the production of medical cannabis or recreational cannabis concentrate, and/or the preparation, propagation, or compounding of manufactured medical cannabis, either directly or indirectly or by extraction methods or independently by means of chemical synthesis, or the packaging or repackaging of medical cannabis or recreational cannabis products, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid condition use permit, and a development agreement if applicable, all issued in accordance with this chapter and the City’s municipal code, and operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Cannabis use” means any business that conducts cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities. “Delivery” shall have the same meaning as the definition set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time. "Gross proceeds" means the value proceeding or accruing from the sale of tangible property and/or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. “Indoor” means any location within the City that is within a fully enclosed, occupied (as defined in this section) dwelling, dwelling unit or housing unit. “Occupied” means currently, presently, and lawfully utilized in accordance with an issued certificate of occupancy. Ordinance No. 21- ______ Page 7 of 19 “Outdoor” means any location within the City that is not within a fully enclosed, occupied (as defined in this section) dwelling, dwelling unit or housing unit. “Parcel” means any parcel of real property that may be separately sold in compliance with the Subdivision Map Act (California Government Code Section 66410 et seq.). “Private residence” means a house, apartment unit, mobile home or other similar dwelling, and includes any accessory structure that is fully enclosed, secure and located upon the grounds of the private residence. “School” means any educational facility which primarily provides educational services to individuals under the age of 18. 17.156.040 Permitted Locations. A. Permitted Locations. Cannabis uses shall only be located in the Limited Manufacturing (M-1) or General Manufacturing (M-2) zoning districts. 17.156.050 Limitation on uses. A. There shall be no more than 10 cannabis use facilities combined within the M-1 zone district and the M-2 zone district. In the event that the City has approved 10 or more cannabis uses as provided herein, an applicant may elect to submit an application with a request for a finding of public convenience that an additional permit should be issued. Such request shall include a statement by the applicant demonstrating how the public convenience will be served by issuance of additional cannabis uses. The following criteria will be considered as part of the findings for a Conditional Use Permit in evaluating the applicant’s request for a determination of public convenience. 1. The proposed use is located no closer than 500 feet from any one existing cannabis use or 1,000 feet from any two existing cannabis uses as measured from the property line. 2. Identify the special and unusual circumstances present to justify a new cannabis business when similar businesses exist nearby, or how it will provide a needed service not currently being met. 3. Provide/demonstrate how the economic benefit of the cannabis business outweighs potential negative impacts to the community. 4. Demonstrate reasonable efforts to seek community input on the proposed cannabis business. 5. The proposed use is not located in an existing targeted law enforcement area as documented by specific and abnormally high general health and safety indicators that have some nexus with alcohol use or substance abuse. 6. The proposed use is not within a crime reporting area that exhibits an excess amount of alcohol or substance abuse related crimes, greater than a 20 percent increase of the reported crimes from the previous year. Ordinance No. 21- ______ Page 8 of 19 7. The proposed use is consistent with the direction and policies set forth by the Council. B. Cannabis uses shall not be located within 1,000 feet of any school, community center, or park. 17.156.060 Permits required. A. Permits Required. All cannabis uses shall obtain the following prior to operation: 1. Valid City-issued conditional use permit 2. Cannabis business permit 3. Building permit(s) 4. City-issued certificate of occupancy 17.156.070 Cannabis business permit. A. Except as otherwise set forth in this chapter, it shall be unlawful for any person or entity to operate, in or upon any property, a cannabis business without first obtaining all required State licenses and a business license or permits issued by the City. Each State license type available in the MMRSA or AMUA is eligible to apply for a cannabis business permit. Unless otherwise set forth in this chapter, no person shall engage in a cannabis business without possessing all applicable State licenses and all applicable City permits and licenses. Revocation of a State license shall constitute grounds for the City to suspend or revoke any permit or license issued by the City. B. All cannabis business permittees must at all times maintain liability insurance having aggregate policy limits in an amount not less than $1,000,000. C. The City may impose an annual cannabis business permit fee at a rate set by a Council resolution. D. All cannabis business permittees shall be subject to an annual regulatory inspection by the City to ensure compliance with all of the applicable provisions of this chapter. E. It shall be unlawful for the owner of a building to allow the use of any portion of a building by a cannabis business unless the tenant has a valid cannabis business permit, or has applied for and not been denied, a cannabis business permit. Each owner of a building whose tenant is a cannabis business permit applicant shall execute an acknowledgement that the applicant has the owner's permission and consent to operate a cannabis business at the subject property. F. Cannabis Business Permit displayed. Any cannabis use shall display its current valid cannabis business permit issued in accordance with this chapter at all times inside the lobby or waiting area of the main entrance to the site, in a conspicuous manner so that it may be readily seen by all persons entering the site. G. The cannabis business permittee shall retain financial reports on an annual basis detailing the gross proceeds of the business for a minimum of five (5) years and shall provide the reports to the City at its request. Ordinance No. 21- ______ Page 9 of 19 17.156.080 Cannabis dispensaries. A. Cannabis dispensaries shall be permitted as an accessory use to either a cannabis cultivation facility or cannabis manufacturing facility. The dispensary shall not exceed 25 percent of the total area of the business. B. Storage. A cannabis dispensary shall have adequate locked storage on the dispensary property, identified and approved as a part of the security plan, for after-hours storage of cannabis. Cannabis shall be stored at the dispensary property in secured rooms that are completely enclosed or in a safe that is bolted to the floor. C. Signs. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis dispensary where they will be visible to members and customers in the normal course of a transaction, stating: 1. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” 2. “Juveniles are prohibited from entering this property unless they are a qualified patient, or a primary caregiver.” 3. “Neither the City of Lake Elsinore, nor any other governmental agency, has tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.” 4. Signs on the cannabis dispensary building shall not obstruct the entrance or windows of the dispensary. D. Dispensary Site Restricted. 1. All entrances into a cannabis dispensary’s building shall be locked from the exterior at all times with entry controlled by dispensary personnel. 2. A manager must be on the cannabis dispensary site at all times when any other person, except for security guards, is on the site. 3. While on the cannabis dispensary site, managers and staff of the cannabis dispensary permittee must wear their City-issued cannabis dispensary identification badge at all times. 4. Any person other than managers or staff shall be escorted by a manager at all times while in the medical cannabis dispensary building. E. Criminal History. No cannabis dispensary permittee or manager of a dispensary shall operate a dispensary if he or she has been convicted of a felony, or is currently on parole or probation for the sale or distribution of a controlled substance. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Notwithstanding the above, a person may not be denied the ability to obtain a permit or operate a dispensary solely on the basis that the person has been convicted of a felony if the person has obtained a certificate of rehabilitation (expungement of felony record) Ordinance No. 21- ______ Page 10 of 19 under California law or similar Federal statute or State law under which the expungement was granted. F. Hours of Operation. The maximum hours of operation for a medical cannabis dispensary shall be daily from 7:00 a.m. to 10:00 p.m. unless the more restricti ve hours have been imposed as a condition of the cannabis business permit or conditional use permit. 17.156.090 Cannabis distribution A. Limitation of Use. Cannabis distribution shall be permitted as an accessory use to either a cannabis cultivation facility or cannabis manufacturing facility. The distribution use shall not exceed 25 percent of the total area of the business. B. Storage. A cannabis distribution facility shall have adequate locked storage on the distribution property, identified and approved as a part of the security plan, for after-hours storage of cannabis. Cannabis shall be stored at the distribution property in secured rooms that are completely enclosed or in a safe that is bolted to the floor. C. Distribution Facility Site Restricted. 1. All entrances into a cannabis distribution facility’s building shall be locked from the exterior at all times with entry controlled by distribution facility personnel. 2. No cannabis distribution facility permittee shall allow anyone in the distribution facility building, except for qualified patients, primary caregivers, persons with identification cards, managers, staff, and other persons with bona fide purposes for being in the distribution facility, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the cannabis distribution facility site at all times when any other person, except for security guards, is on the site. 4. While on the cannabis distribution facility site, managers and staff of the medical cannabis dispensary permitee must wear their City-issued cannabis distribution facility identification badge at all times. 5. Any person other than managers or staff shall be escorted by a manager at all times while in the medical cannabis distribution facility building. D. Delivery. Delivery is allowed in conjunction with a legal cannabis distribution facility. E. Criminal History. No cannabis distribution permittee or manager of a dispensary shall operate a dispensary if he or she has been convicted of a felony, or is curr ently on parole or probation for the sale or distribution of a controlled substance. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Notwithstanding the above, a person may not be denied the ability to obtain a permit or operate a distribution facility solely on the basis that the person has been convicted of a felony if the person has obtained a certificate of rehabilitation (expungement of felony record) under California law or similar federal statute or state law under which the expungement was granted. Ordinance No. 21- ______ Page 11 of 19 F. Hours of Operation. The maximum hours of operation for a cannabis distribution facility shall be daily from 7:00 a.m. to 10:00 p.m. unless the more restrictive hours ha ve been imposed as a condition of the cannabis business permit or conditional use permit. 17.156.100 Cannabis cultivation. A. No person owning, renting, leasing, occupying or having charge or possession of any parcel shall cause or allow such parcel to be used for the outdoor cultivation, except as provided herein, of any cannabis plant. B. Cannabis Cultivation shall be limited to interior areas. No person owning, renting, leasing, occupying, or having charge or possession of any parcel shall cause or allow indoor cultivation of Cannabis on such parcel to be visible from any street, sidewalk, or other place freely accessible by the public. C. Cultivation Site Buildings. A cultivation site shall comply with the following requirements: 1. Entrances. All entrances into the buildings on the cultivation site shall be locked at all times with entry controlled by the cannabis cultivation permitee’s managers and staff. 2. Main entrance and lobby. The cultivation site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the cultivation areas. 3. Cultivation area. All cultivation areas in any building on the cultivation site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis cultivation permittee. 4. Transport area. Each building with a cultivation area shall have an area designed for the secure transfer of cannabis from the cultivation area to a vehicle for transportation. 5. Storage area. Each building with a cultivation area shall have adequate storage space for cannabis that has completed the cultivation process or is otherwise not being cultivated. The storage areas shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis cultivation permittee. D. Compliance with Building, Fire Code and Permitting Requirements. Any person(s) cultivating cannabis with the use of grow lights, fans, ventilation devices or any other electrical or mechanical equipment shall comply with all applicable building and fire code requirements adopted by the City of Lake Elsinore, and shall obtain all permits required for such installation. E. Cultivation Site Restricted. 1. No cannabis cultivation permittee shall open their cultivation site to the public. Ordinance No. 21- ______ Page 12 of 19 2. No cannabis cultivation permittee shall allow anyone on the site, except for managers, staff, and other persons with a bonafide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the cultivation site at all times that when any other person, except for security guards, is on the site. 4. While on the cultivation site, managers and staff of the cannabis cultivation permittee must wear their cannabis cultivation identification badge, issued by the city, at all times. 5. Any person other than managers or staff who are on the cultivation site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. F. Retail Sales Prohibited. No person shall conduct any retail sales of any good or services on or from a permitted cultivation site unless a dispensary and/or distribution facility has also been approved to operate in conjunction with the cultivation facility. Retail sales shall only occur within the dispensary and/or distribution portion of the facility. G. There shall be a limited exemption from enforcement for violations of this ordinance by primary caregivers and qualified patients for small amounts of cannabis cultivation for their own medical use in all residential zone classifications when all of the following conditions and standards are complied with: 1. The premises shall contain a legally permitted private residence. Any private residence where cultivation occurs shall remain at all times a residence with legal and functioning cooking, sleeping and sanitation facilities with proper ingress and egress. 2. Cultivation of no more than 12 cannabis plants. In the event a qualified patient has a primary caregiver cultivating cannabis plants for the qualified patient, only one primary caregiver may cultivate no more than 12 cannabis plants for that qualified patient at any one time. In no circumstances shall a qualified patient have multiple primary caregivers cultivating cannabis plants for the qualified patient at the same time. 3. Two qualified patient limit to aggregate cannabis plant count for a maximum total of 24 cannabis plants per premises. 4. At least one qualified patient or one primary caregiver must live on the premises. 5. All cannabis plants must be reasonably secured to prevent access by minors or theft, to a standard satisfactory to the enforcement officer. 6. All cannabis cultivation outside of any building must be fully enclosed by an opaque fence at least six feet in height. The fence must be adequately secure to prevent unauthorized entry. Bushes, hedgerows, plastic sheeting, tarps, or cloth material shall not constitute an adequate fence under this subsection. Premises larger than five acres are exempt from this fencing provision so long as all other standards and conditions of subsection (G) of this section are complied with and any barriers used are otherwise consistent with the municipal code. Ordinance No. 21- ______ Page 13 of 19 7. Each building or outdoor area in which the cannabis plants are cultivated shall be set back at least ten feet from all boundaries of the premises. Such setback distance shall be measured in a straight line from the building in which the cannabis plants are cultivated, or, if the cannabis plants are cultivated in an outdoor area, from the fence required by subsection (G)(6) to the boundary line of the premises. 8. The designated cannabis cultivation area must not be visible from any public right-of- way. 9. If the person cultivating cannabis plants on any premises is not the owner of the premises, such person shall submit a letter from the owner(s) consenting to the cannabis cultivation on the parcel. This letter shall be examined by the enforcement officer, and shall then be returned to the submitter. The County shall prescribe forms for such letters. 10. Parolees or probationers shall not live on the premises unless the parolees or probationers have received confirmation from the court that he is allowed to use medical cannabis while on parole or probation pursuant to Health & Safety Code section 11362.795 which shall be subject to verification by the enforcement officer. 11. Qualified patients for whom the cannabis plants are being cultivated shall have valid Medical cannabis Identification Cards issued by the Riverside County Department of Public Health. Any primary caregiver cultivating cannabis plants for a qualified patient shall have a copy of the qualified patient’s valid Medical cannabis Identification Card issued by the Riverside County Department of Public Health which shall be kept on the premises. 12. The address for the premises must be posted and plainly visible from the public right-of-way. 13. The cannabis cultivation site shall not be upon any premises containing a child care center, church, or youth-oriented facility. H. There shall be a limited exemption from enforcement for violations of this ordinance by authorized persons for small amounts of cannabis cultivation for their own recreational use in all residential zone classifications when all of the following conditions and standards are complied with: 1. The premises shall contain a legally permitted private residence. Any private residence where cultivation occurs shall remain at all times a residence with legal and functioning cooking, sleeping and sanitation facilities with proper ingress and egress. 2. Cultivation of no more than six cannabis plants per private residence. 3. All cannabis plants must be reasonably secured to prevent access by minors or theft, to a standard satisfactory to the enforcement officer. 4. All cannabis cultivation outside of any building must be fully enclosed by an opaque fence at least six feet in height. The fence must be adequately secure to prevent unauthorized entry. Bushes, hedgerows, plastic sheeting, tarps, or cloth material shall not constitute an adequate fence under this subsection. Premises larger than five (5) acres are exempt from this fencing provision so long as all other standards and Ordinance No. 21- ______ Page 14 of 19 conditions of subsection (H) of this section are complied with and any barriers used are otherwise consistent with the municipal code. 5. Each building or outdoor area in which the cannabis plants are cultivated shall be set back at least ten feet from all boundaries of the premises. Such setback distance shall be measured in a straight line from the building in which the cannabis plants are cultivated, or, if the cannabis plants are cultivated in an outdoor area, from the fence required by subsection (H)(4) to the boundary line of the premises. 6. The designated cannabis cultivation area must not be visible from any public right-of- way. 7. If the person cultivating cannabis plants on any premises is not the owner of the premises, such person shall submit a letter from the owner(s) consenting to the cannabis cultivation on the parcel. This letter shall be examined by the enforcement officer, and shall then be returned to the submitter. The County shall prescribe forms for such letters. 8. Parolees or probationers shall not live on the premises unless the parolees or probationers have received confirmation from the court that he is allowed to use medical cannabis while on parole or probation pursuant to Health & Safety Code section 11362.795 which shall be subject to verification by the enf orcement officer. 9. The address for the premises must be posted and plainly visible from the public right - of-way. 10. The cannabis cultivation site shall not be upon any premises containing a child care center, church, or youth-oriented facility. 17.156.110 Cannabis manufacturing A. Interior Only. Cannabis manufacturing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No cannabis manufacturing shall be visible from any public right-of-way. B. Operational Requirements. 1. Manufacturers are limited to certain equipment, methods, solvents, gases and mediums when creating medical cannabis extracts. 2. Manufacturing facilities with a state license of a Type-6 (non-volatile) or a Type 7 (volatile) classification may be allowed to operate under this chapter. 3. All equipment, systems and manufacturing processes must meet or exceed all applicable State and Federal requirements and regulations regarding air, water, health and safety, and handling, processing and storage of hazardous materials, solvents, gases and waste. No manufacturing facility shall commence operations or be issued any form of certificate of occupancy without first obtaining all required fire, environmental, health and safety, planning, and building certificates, permits and approvals required under the City’s municipal code and all other applicable County, State and Federal regulations. Ordinance No. 21- ______ Page 15 of 19 4. Manufacturers shall not use any Class I or Class II solvents, as those terms are defined in Federal Drug Administration Guidance, Table I, published in the Federal Register on December 24, 1997 (62 FR 67377), for extraction. 5. Manufacturers shall use butanes, ethanol, carbon dioxide, propane, heptane or other solvents exhibiting low to minimal potential human health-related toxicity for extraction, or other methods approved by the State of California. 6. All extraction manufacturing using hydrocarbons shall be conducted with a professionally certified closed loop extraction system conforming to current American Society of Mechanical Engineers (ASME) standards and ratings for pressure vessels and shall be operated in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present. 7. All extraction manufacturing using CO2 shall be conducted in a professionally certified CO2 based extraction system conforming to current ASME standards and ratings for pressure vessels with a pressure rating at all points being at or above 600 pounds per square inch, and shall be operated in an environment with proper ventilation. 8. All other methods of extraction shall be conducted in an environment appropriate to the solvent being used, with consideration to proper ventilation and ignition source controls. 9. Manufacturers may use heat, screens, presses, steam distillation, ice water, and other methods of extraction without employing solvents or gases to create kief, hashish, bubble hash, or vegetable oils or fats derived from natural sources, and other extracts. 10. Manufacturers using extract to create ingestible products shall only use food- grade ingredients. C. Ph.D. Chemist. As a condition of obtaining a City-issued medical cannabis regulatory permit and conditional use permit, a cannabis business permittee of a manufacturing facility desiring to operate under this chapter shall first verify that the cannabis business permittee employs or contracts with a person who has a Ph.D. in chemical sciences or related field of study and who shall supervise the design, installation and operation of the facility’s systems and manufacturing processes. Such person shall inspect the premises on a quarterly basis and provide such inspection report to the City. The cannabis business permittee shall submit to the City a written statement that he or she certifies under penalty of perjury that the name of the employee/contractor is true and correct. The employee/contractor shall also submit a written statement that he or she certifies under penalty of perjury his or her educational qualifications and verifying that the supervisor is employed or contracted to supervise the design, installation and operation of the facility’s systems and manufacturing processes. D. State Regulations. In the event the State of California implements health and safety regulations applicable to medical cannabis manufacturing facilities, upon implementation of such State regulations, all medical cannabis manufacturing facilities operators shall immediately implement the State regulations. Should there be a conflict between the provisions of this chapter and the State regulations, the State regulations shall control. Ordinance No. 21- ______ Page 16 of 19 E. Manufacturing Facility Restricted. 1. No cannabis manufacturing permittee shall open their facility to the public. 2. No cannabis manufacturing permittee shall allow anyone on the manufacturing site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the facility site at all times when any other person, except for security guards, is on the site. 4. While on the manufacturing site, managers and staff of the cannabis testing laboratory permittee must wear their cannabis testing identification badge, issued by the city, at all times. 5. Any person other than managers or staff who are on the manufacturing site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. F. Retail Sales Prohibited. No person shall conduct any retail sales of any good or services on or from a permitted cannabis manufacturing site unless a dispensary and/or distribution facility has also been approved to operate in conjunction with the manufacturing facility. Retail sales shall only occur within the dispensary and/or distribution portion of the facility. 17.156.120 Cannabis testing laboratory A. Interior Only. Cannabis testing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No cannabis manufacturing shall be visible from any public right-of-way. B. Operational Requirements. A cannabis testing laboratory site shall comply with the following requirements: 1. Entrances. All entrances into the buildings on the laboratory site shall be locked at all times with entry controlled by the cannabis testing laboratory permitee’s managers and staff. 2. Main Entrance and Lobby. The laboratory site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the testing areas. 3. Testing Area. All testing areas in any building on the laboratory site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis testing laboratory permittee. Ordinance No. 21- ______ Page 17 of 19 4. Transport Area. Each building with a testing area shall have an area designed for the secure transfer of cannabis from a vehicle to the testing area. 5. Storage area. Each building with a testing area shall have adequate storage space for cannabis that has been tested or is waiting to be tested. The storage areas shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis testing laboratory permittee. C. Laboratory Site Restricted. 1. No cannabis testing laboratory permittee shall open their laboratory site to the public. 2. No cannabis testing laboratory permittee shall allow anyone on the laboratory site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the laboratory site at all times when any other person, except for security guards, is on the site. 4. While on the laboratory site, managers and staff of the cannabis testing laboratory permittee must wear their cannabis testing identification badge, issued by the City, at all times. 5. Any person other than managers or staff who are on the laboratory site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. D. Retail Sales Prohibited. No person shall conduct any retail sales of any good or services on or from a permitted cannabis testing laboratory site. 17.156.130 Site Security A. Site Security. Each cannabis use business shall submit a site security plan which must include the following: 1. Security Surveillance Cameras. Security surveillance cameras and a video recording system must be installed to monitor all doors into the buildings on the site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of- way. The cameras and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the site. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive. 2. Security Video Recording and Retention. Video from the security surveillance cameras must be recording at all times (24 hours a day, seven days a week) and the recording shall be maintained for at least 30 days. The video recordings shall be made available to the City upon request. Ordinance No. 21- ______ Page 18 of 19 3. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems must be installed and maintained in good working condition. The alarm system must include a private security company that is required to respond to every alarm. B. Site security plan must be submitted with the conditional use permit planning application and approved prior to occupancy. 17.156.140 Prohibited Activity A. Consumption prohibited. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, the site. B. Alcohol prohibited. No cannabis distribution permittee or manager shall cause or permit the sale, distribution, or consumption of alcoholic beverages on the distribution facility property; hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages; or operate a business on or adjacent to the distribution facility property that sells alcoholic beverages. No alcoholic beverages shall be allowed or stored on the distribution facility property. C. Juveniles prohibited. 1. No juvenile shall be on the site (except within dispensary facilities if the juvenile has a valid medical prescription) or operate a cannabis facility in any capacity, including but not limited to, as a manager, staff, employee, contractor, or volunteer. 17.156.150 Signs A. Signs inside cannabis dispensary facilities. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis dispensary facilities where they will be visible to members and customers in the normal course of a transaction, stating: 1. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” 2. “Juveniles are prohibited from entering this property unless they are a qualified patient, or a primary caregiver.” 3. “Neither the City of Lake Elsinore, nor any other governmental agency, has tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.” B. Signs inside cannabis distribution, cultivation and manufacturing facilities. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis distribution, cultivation and manufacturing facilities where they will be visible to members and customers in the normal course of a transaction, stating: 1. “The distribution, cultivation and/or manufacturing area of this business is not open to the public.” Ordinance No. 21- ______ Page 19 of 19 2. “Juveniles are prohibited from entering this property.” 3. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” C. Signs inside cannabis testing laboratory facilities. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis testing laboratory facilities where they will be visible to members and customers in the normal course of a transaction, stating: 1. “This site is not open to the public.” 2. “Retail sales of any goods and services are prohibited.” 3. “Juveniles are prohibited from entering this property.” 4. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” D. Signs shall not obstruct the entrance or windows of the dispensary. 17.156.160 Enforcement. Violations of this chapter shall be considered a public nuisance, and may be enforced according to the procedures set forth in Chapter 8.18 and by the enforcement remedies conferred upon the City by Civil Code Section 3494, Code of Civil Procedure Section 731, Government Code Section 38773, or other lawful authority. Nothing in this provision is intended to impair any viable legal defense to a person using or in possession of medical Cannabis pursuant to the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time. 17.156.170 M-1 and M-2 District Zones. Should there be a conflict between the provisions of this chapter and LEMC Chapters 17.136 or 17.140, this chapter shall control. PROPOSED REVISIONS; SUPERCEDE AND REPLACE WITH THIS Red underlined text – new Black text – codified 17.156 language, may be reorganized Strike out text – proposed deleting codified text Chapter 17.156 CANNABIS USES Sections: 17.156.010 Purpose and intent. 17.156.020 Interpretation and applicability. 17.156.030 Definitions. 17.156.040 Permitted locations. 17.156.050 Limitation on uses. 17.156.060 Permits required 17.156.070 Cannabis business permit. 17.156.080 Cannabis dispensaries. 17.156.090 Cannabis distribution. 17.156.100 Cannabis cultivation. 17.156.110 Cannabis manufacturing. 17.156.120 Cannabis testing laboratory. 17.156.130 Site Security. 17.156.140 Prohibited activity. 17.156.150 Signs. 17.156.160 Enforcement. 17.156.170 M-1 and M-2 zoning districts. 17.156.180 Severability. . 17.156.010 Purpose and intent. The purpose and intent of this chapter are to regulate the dispensing, cultivation, processing, manufacturing, testing and distribution of medical and recreational cannabis in a manner that protects the public health, safety and welfare of the City and mitigates the costs to the community of the oversight of these activities. Nothing in this chapter shall be construed to: allow persons to engage in conduct that endangers others or causes a public nuisance; or allow any activity relating to the cultivation, manufacturing, testing, distribution or consumption of cannabis that is otherwise illegal under California law. 17.156.020 Interpretation and applicability. Operation of cannabis facilities within the City shall be permitted upon the application and approval of both a City-issued conditional use permit pertaining to the location of the facility in accordance with the criteria and procedures set forth in this chapter and the City’s municipal code, upon application and subject to such additional regulations as may be promulgated pursuant to this chapter. A. The cultivation, processing, and distribution of cannabis in the City is controlled by the provisions of this chapter. Page 2 of 17 B. Nothing in this chapter is intended, nor shall it be construed, to burden any defense to criminal prosecution otherwise afforded by California law. C. Nothing in this chapter is intended, nor shall it be construed, to preclude a landlord from limiting or prohibiting cannabis cultivation, consumption, processing, and distribution or other related activities by tenants. D. Nothing in this chapter is intended, nor shall it be construed, to exempt any cannabis - related activity from any applicable local or State construction, environmental, electrical, plumbing, land use, labor or employment laws or any other building or land use standards or permitting requirements. E. Nothing is this chapter is intended, nor shall it be construed, to make legal any sale, cultivation, transportation, manufacture, or other use of cannabis that is otherwise prohibited or non-compliant under California law, as amended from time to time. F. All medical cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities and/or recreational cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities within City limits shall be subject to the provisions of this chapter, regardless of whether the use existed or occurred prior to adoption of this chapter. 17.156.030 Definitions. When used in this chapter, the following words shall have the meanings ascribed to them in this section. 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 regulatory provision. Words and phrases not specifically defined in this chapter shall have the meanings ascribed to them by the following sources: A. The CUA of 1996 (California Health and Safety Code Section 11362.5), and as may be amended from time to time; B. The MMPA (California Health and Safety Code Sections 11362.7 through 11362.83); C. The MMRSA (California Business and Professions Code Sections 19300 through 19355) as may be amended from time to time; D. The AMUA (Proposition 64, The Adult Use of cannabis Act). “Cannabis” has the same meaning as in California Health, Safety Code Section 11018 and Proposition 64, Cannabis Legalization as may be amended from time to time. For the purpose of this chapter, “cannabis” does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. “Cannabis business” means any use that conducts medical cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities and/or recreational cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities. “Cannabis business permit” means a specific permit required for any commercial operation of any cannabis oriented business subject to the approval of a conditional use permit. Page 3 of 17 “Cannabis cultivation” means the planting, growing, harvesting, drying or processing of any cannabis plants or any part thereof, for medical use consistent with the Compassionate Use Act (California Health and Safety Code Section 11362.5), the Medical Cannabis Program Act (California Health and Safety Code Section 11362.7 et seq.), and Proposition 64, Cannabis Legalization. “Cannabis dispensary” means any facility or location where medical cannabis or recreational cannabis is made available to or distributed by or distributed to one or more individuals operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Cannabis distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of medical cannabis and/or recreational cannabis products between entities, including delivery to end users, operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Cannabis testing laboratory” laboratories” means a facility for testing, analysis, and/or research. Similar types of lab uses include medical labs, soils, materials testing labs, and forensic labs. Laboratories are a necessary component of the cannabis licensing scheme because testing is required to be done on each cannabis crop to determine constituents such as cannabinols (CBD’s), tetrahydrocannabinol (THC), pesticide residuals, mold, and fungus. “Cannabis manufacturing facility” means a facility where the production of medical cannabis or recreational cannabis concentrate, and/or the preparation, propagation, or compounding of manufactured medical cannabis, either directly or indirectly or by extr action methods or independently by means of chemical synthesis, or the packaging or repackaging of medical cannabis or recreational cannabis products, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid condition use permit, and a development agreement if applicable, all issued in accordance with this chapter and the City’s municipal code, and operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Cannabis use” means any business that conducts cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities. “Delivery” shall have the same meaning as the definition set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time. "Gross proceeds" means the value proceeding or accruing from the sale of tangible property and/or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. “Indoor” means any location within the City that is within a fully enclosed, occupied (as defined in this section) dwelling, dwelling unit or housing unit. “Occupied” means currently, presently, and lawfully utilized in accordance with an issued certificate of occupancy. Page 4 of 17 “Outdoor” means any location within the City that is not within a fully enclosed, occupied (as defined in this section) dwelling, dwelling unit or housing unit. “Parcel” means any parcel of real property that may be separately sold in compliance with the Subdivision Map Act (California Government Code Section 66410 et seq.). “Private residence” means a house, apartment unit, mobile home or other similar dwelling, and includes any accessory structure that is fully enclosed, secure and located upon the grounds of the private residence. “School” means any educational facility which primarily provides educational services to individuals under the age of 18. 17.156.040 Permitted Locations. A. Permitted Locations. Cannabis uses shall only be located in the Limited Manufacturing (M-1) or General Manufacturing (M-2) zoning districts. 17.156.050 Limitation on uses. A. There shall be no more than 10 cannabis use facilities combined within the M-1 zone district and the M-2 zone district. In the event that the City has approved 10 or more cannabis uses as provided herein, an applicant may elect to submit an application with a request for a finding of public convenience that an additional permit should be issued. Such request shall include a statement by the applicant demonstrating how the public convenience will be served by issuance of additional cannabis uses. The following criteria will be considered as part of the findings for a Conditional Use Permit in evaluating the applicant’s request for a determination of public convenience. 1. The proposed use is located no closer than 500 feet from any one existing cannabis use or 1,000 feet from any two existing cannabis uses as measured from the property line. 2. Identify the special and unusual circumstances present to justify a new cannabis business when similar businesses exist nearby, or how it will provide a needed service not currently being met. 3. Provide/demonstrate how the economic benefit of the cannabis business outweighs potential negative impacts to the community. 4. Demonstrate reasonable efforts to seek community input on the proposed cannabis business. 5. The proposed use is not located in an existing targeted law enforcement area as documented by specific and abnormally high general health and safety indicators that have some nexus with alcohol use or substance abuse. 6. The proposed use is not within a crime reporting area that exhibits an excess amount of alcohol or substance abuse related crimes, greater than a 20 percent increase of the reported crimes from the previous year. 7. The proposed use is consistent with the direction and policies set forth by the Council. Page 5 of 17 B. Cannabis uses shall not be located within 1,000 feet of any school, community center, or park. 17.156.060 Permits required. A. Permits Required. All cannabis uses shall obtain the following prior to operation: 1. Valid City-issued conditional use permit 2. Cannabis business permit 3. Building permit(s) 4. City-issued certificate of occupancy 17.156.070 Cannabis business permit. A. Except as otherwise set forth in this chapter, it shall be unlawful for any person or entity to operate, in or upon any property, a cannabis business without first obtaining all required State licenses and a business license or permits issued by the City. Each State license type available in the MMRSA or AMUA is eligible to apply for a cannabis business permit. Unless otherwise set forth in this chapter, no person shall engage in a cannabis business without possessing all applicable State licenses and all applicable City permits and licenses. Revocation of a State license shall constitute grounds for the City to suspend or revoke any permit or license issued by the City. B. All cannabis business permittees must at all times maintain liability insurance having aggregate policy limits in an amount not less than $1,000,000. C. The City may impose an annual cannabis business permit fee at a rate set by a Council resolution. D. All cannabis business permittees shall be subject to an annual regulatory inspection by the City to ensure compliance with all of the applicable provisions of this chapter. E. It shall be unlawful for the owner of a building to allow the use of any portion of a building by a cannabis business unless the tenant has a valid cannabis business permit, or has applied for and not been denied, a cannabis business permit. Each owner of a building whose tenant is a cannabis business permit applicant shall execute an acknowledgement that the applicant has the owner's permission and consent to operate a cannabis business at the subject property. F. Cannabis Business Permit displayed. Any cannabis use shall display its current valid cannabis business permit issued in accordance with this chapter at all times inside the lobby or waiting area of the main entrance to the site, in a conspicuous manner so that it may be readily seen by all persons entering the site. G. The cannabis business permittee shall retain financial reports on an annual basis detailing the gross proceeds of the business for a minimum of five (5) years and shall provide the reports to the City at its request. 17.156.080 Cannabis dispensaries. Page 6 of 17 A. Cannabis dispensaries shall be permitted as an accessory use to either a cannabis cultivation facility or cannabis manufacturing facility. In no case shall either the gross floor area of the The dispensary shall not exceed 25 percent of the total area of the business. or 50 percent of gross proceeds of the business. B. Storage. A cannabis dispensary shall have adequate locked storage on the dispensary property, identified and approved as a part of the security plan, for after-hours storage of cannabis. Cannabis shall be stored at the dispensary property in secured rooms that are completely enclosed or in a safe that is bolted to the floor. C. Signs. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis dispensary where they will be visible to members and customers in the normal course of a transaction, stating: 1. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” 2. “Juveniles are prohibited from entering this property unless they are a qualified patient, or a primary caregiver. and they are in the presence of their parent or legal guardian.” 3. “Neither the City of Lake Elsinore, nor any other governmental agency, has tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.” 4. Signs on the cannabis dispensary building shall not obstruct the entrance or windows of the dispensary. D. Dispensary Site Restricted. 1. All entrances into a cannabis dispensary’s building shall be locked from the exterior at all times with entry controlled by dispensary personnel. 2. A manager must be on the cannabis dispensary site at all times that, when any other person, except for security guards, is on the site. 3. While on the cannabis dispensary site, managers and staff of the cannabis dispensary permittee must wear their City-issued cannabis dispensary identification badge at all times. 4. Any person other than managers or staff shall be escorted by a manager at all times while in the medical cannabis dispensary building. E. Delivery Prohibited. A cannabis dispensary shall not provide any form of delivery service. All distribution of cannabis must be conducted within the enclosed building areas of the dispensary property. F. Criminal History. No cannabis dispensary permittee or manager of a dispensary shall operate a dispensary if he or she has been convicted of a felony, or is currently on parole or probation for the sale or distribution of a controlled substance. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Page 7 of 17 Notwithstanding the above, a person may not be denied the ability to obtain a permit or operate a dispensary solely on the basis that the person has been convicted of a felony if the person has obtained a certificate of rehabilitation (expungement of felony record) under California law or similar Federal statute or State law under which the expungement was granted. G. Hours of Operation. The maximum hours of operation for a medical cannabis dispensary shall be daily from 7:00 a.m. to 9:00 10:00 p.m. unless the more restrictive hours have been imposed as a condition of the cannabis business permit or conditional use permit. 17.156.090 Cannabis distribution A. Limitation of Use. Cannabis distribution shall be permitted as an accessory use to either a cannabis cultivation facility or cannabis manufacturing facility. In no case shall either the gross floor area of the dispensary The distribution use shall not exceed 25 percent of the total area of the business. or 50percent of gross proceeds of the business. B. Storage. A cannabis distribution facility shall have adequate locked storage on the distribution property, identified and approved as a part of the security plan, for after-hours storage of cannabis. Cannabis shall be stored at the distribution property in secured rooms that are completely enclosed or in a safe that is bolted to the floor. C. Distribution Facility Site Restricted. 1. All entrances into a cannabis distribution facility’s building shall be locked from the exterior at all times with entry controlled by distribution facility personnel. 2. No cannabis distribution facility permittee shall allow anyone in the distribution facility building, except for qualified patients, primary caregivers, persons with identification cards, managers, staff, and other persons with bona fide purposes for being in the distribution facility, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the cannabis distribution facility site at all times that when any other person, except for security guards, is on the site. 4. While on the cannabis distribution facility site, managers and staff of the medical cannabis dispensary permitee must wear their City-issued cannabis distribution facility identification badge at all times. 5. Any person other than managers or staff shall be escorted by a manager at all times while in the medical cannabis distribution facility building. D. Delivery. Delivery is allowed in conjunction with a legal cannabis distribution facility. E. Criminal History. No cannabis distribution permittee or manager of a dispensary shall operate a dispensary if he or she has been convicted of a felony, or is currently on parole or probation for the sale or distribution of a controlled substance. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Notwithstanding the above, a person may not be denied the ability to obtain a permit or operate a distribution facility solely on the basis that the person has been convicted of a felony if the Page 8 of 17 person has obtained a certificate of rehabilitation (expungement of felony record) under California law or similar federal statute or state law under which the expungement was granted. F. Hours of Operation. The maximum hours of operation for a cannabis distribution facility shall be daily from 7:00 a.m. to 9:00 10:00 p.m. unless the more restrictive hours have been imposed as a condition of the cannabis business permit or conditional use permit. 17.156.100 Cannabis cultivation. A. No person owning, renting, leasing, occupying or having charge or possession of any parcel shall cause or allow such parcel to be used for the outdoor cultivation, except as provided herein, of any cannabis plant. B. Cannabis Cultivation shall be limited to interior areas. No person owning, renting, leasing, occupying, or having charge or possession of any parcel shall cause or allow indoor cultivation of Cannabis on such parcel to be visible from any street, sidewalk, or other place freely accessible by the public. C. Cultivation Site Buildings. A cultivation site shall comply with the following requirements: 1. Entrances. All entrances into the buildings on the cultivation site shall be locked at all times with entry controlled by the cannabis cultivation permitee’s managers and staff. 2. Main entrance and lobby. The cultivation site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the cultivation areas. 3. Cultivation area. All cultivation areas in any building on the cultivation site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis cultivation permittee. 4. Transport area. Each building with a cultivation area shall have an area designed for the secure transfer of cannabis from the cultivation area to a vehicle for transportation. 5. Storage area. Each building with a cultivation area shall have adequate storage space for cannabis that has completed the cultivation process or is otherwise not being cultivated. The storage areas shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis cultivation permittee. D. Compliance with Building, Fire Code and Permitting Requirements. Any person(s) cultivating cannabis with the use of grow lights, fans, ventilation devices or any other electrical or mechanical equipment shall comply with all applicable building and fire code requirements adopted by the City of Lake Elsinore, and shall obtain all permits required for such installation. E. Cultivation Site Restricted. 1. No cannabis cultivation permittee shall open their cultivation site to the public. Page 9 of 17 2. No cannabis cultivation permittee shall allow anyone on the cultivation site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. No cannabis cultivation permittee shall allow anyone on the site, except for managers, staff, and other persons with a bonafide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the cultivation site at all times that when any other person, except for security guards, is on the site. 4. While on the cultivation site, managers and staff of the cannabis cultivation permittee must wear their cannabis cultivation identification badge, issued by the city, at all times. 5. Any person other than managers or staff who are on the cultivation site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. F. Retail Sales Prohibited. No person shall conduct any retail sales of any good or services on or from a permitted cultivation site unless a dispensary and/or distribution facility has also been approved to operate in conjunction with the cultivation facility. Retail sales shall only occur within the dispensary and/or distribution portion of the facility. G. There shall be a limited exemption from enforcement for violations of this ordinance by primary caregivers and qualified patients for small amounts of cannabis cultivation for their own medical use in all residential zone classifications when all of the following conditions and standards are complied with: 1. The premises shall contain a legally permitted.single-family dwelling. private residence. Any private residence where cultivation occurs shall remain at all times a residence with legal and functioning cooking, sleeping and sanitation facilities with proper ingress and egress. 2. Cultivation of no more than 12 cannabis plants. In the event a qualified patient has a primary caregiver cultivating cannabis plants for the qualified patient, only one primary caregiver may cultivate no more than 12 cannabis plants for that qualified patient at any one time. In no circumstances shall a qualified patient have multiple primary caregivers cultivating cannabis plants for the qualified patient at the same time. 3. Two qualified patient limit to aggregate cannabis plant count for a maximum total of 24 cannabis plants per premises. 4. At least one qualified patient or one primary caregiver must live on the premises. 5. All cannabis plants must be reasonably secured to prevent access by minors or theft, to a standard satisfactory to the enforcement officer. 6. All cannabis cultivation outside of any building must be fully enclosed by an opaque fence at least six feet in height. The fence must be adequately secure to prevent unauthorized entry. Bushes, hedgerows, plastic sheeting, tarps, or cloth material shall not constitute an adequate fence under this subsection. Premises larger than five acres are Page 10 of 17 exempt from this fencing provision so long as all other standards and conditions of subsection (S) (G) of this section are complied with and any barriers used are otherwise consistent with the municipal code. 7. Each building or outdoor area in which the cannabis plants are cultivated shall be set back at least ten feet from all boundaries of the premises. Such setback distance shall be measured in a straight line from the building in which the cannabis plants are cultivated, or, if the cannabis plants are cultivated in an outdoor area, from the fence required by subsection (S)(G)(6) to the boundary line of the premises. 8. The designated cannabis cultivation area must not be visible from any public right-of- way. 9. If the person cultivating cannabis plants on any premises is not the owner of the premises, such person shall submit a letter from the owner(s) consenting to the cannabis cultivation on the parcel. This letter shall be examined by the enforcement officer, and shall then be returned to the submitter. The County shall prescribe forms for such letters. 10. Parolees or probationers shall not live on the premises unless the parolees or probationers have received confirmation from the court that he is allowed to use medical cannabis while on parole or probation pursuant to Health & Safety Code section 11362.795 which shall be subject to verification by the enforcement officer. 11. Qualified patients for whom the cannabis plants are being cultivated shall have valid Medical cannabis Identification Cards issued by the Riverside County Department of Public Health. Any primary caregiver cultivating cannabis plants for a qualified patient shall have a copy of the qualified patient’s valid Medical cannabis Identification Card issued by the Riverside County Department of Public Health which shall be kept on the premises. 12. The address for the premises must be posted and plainly visible from the public right- of-way. 13. The cannabis cultivation site shall not be within a multi-dwelling building. 14. The cannabis cultivation site shall not be upon any premises located within 1,000 feet of any school, community center, or park. 15. The cannabis cultivation site shall not be upon any premises containing a child care center, church, or youth-oriented facility. H. There shall be a limited exemption from enforcement for violations of this ordinance by authorized persons for small amounts of cannabis cultivation for their own recreational use in all residential zone classifications when all of the following conditions and standards are complied with: 1. The premises shall contain a legally permitted single-family dwelling. private residence. Any private residence where cultivation occurs shall remain at all times a residence with legal and functioning cooking, sleeping and sanitation facilities with proper ingress and egress. 2. Cultivation of no more than six cannabis plants per dwelling.private residence. Page 11 of 17 3. All cannabis plants must be reasonably secured to prevent access by minors or theft, to a standard satisfactory to the enforcement officer. 4. All cannabis cultivation outside of any building must be fully enclosed by an opaque fence at least six feet in height. The fence must be adequately secure to prevent unauthorized entry. Bushes, hedgerows, plastic sheeting, tarps, or cloth material shall not constitute an adequate fence under this subsection. Premises larger than five (5) acres are exempt from this fencing provision so long as all other standards and conditions of subsection (T) (H) of this section are complied with and any barriers used are otherwise consistent with the municipal code. 5. Each building or outdoor area in which the cannabis plants are cultivated shall be set back at least ten feet from all boundaries of the premises. Such setback distance shall be measured in a straight line from the building in which the cannabis plants are cultivated, or, if the cannabis plants are cultivated in an outdoor area, from the fence required by subsection (T)(H)(4) to the boundary line of the premises. 6. The designated cannabis cultivation area must not be visible from any public right-of- way. 7. If the person cultivating cannabis plants on any premises is not the owner of the premises, such person shall submit a letter from the owner(s) consenting to the cannabis cultivation on the parcel. This letter shall be examined by the enforcement officer, and shall then be returned to the submitter. The County shall prescribe forms for such letters. 8. Parolees or probationers shall not live on the premises unless the parolees or probationers have received confirmation from the court that he is allowed to use medical cannabis while on parole or probation pursuant to Health & Safety Code section 11362.795 which shall be subject to verification by the enforcement officer. 9. The address for the premises must be posted and plainly visible from the public right- of-way. 10. The cannabis cultivation site shall not be within a multi-dwelling building. 11. The cannabis cultivation site shall not be upon any premises located within 1,000 feet of any school, community center, or park. 12. The cannabis cultivation site shall not be upon any premises containing a child care center, church, or youth-oriented facility. 17.156.110 Cannabis manufacturing A. Interior Only. Cannabis manufacturing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No cannabis manufacturing shall be visible from any public right-of-way. B. Operational Requirements. Page 12 of 17 1. Manufacturers are limited to certain equipment, methods, solvents, gases and mediums when creating medical cannabis extracts. 2. Manufacturing facilities with a state license of a Type-6 (non-volatile) or a Type 7 (volatile) classification may be allowed to operate under this chapter. 3. All equipment, systems and manufacturing processes must meet or exceed all applicable State and Federal requirements and regulations regarding air, water, health and safety, and handling, processing and storage of hazardous materials, solvents, gases and waste. No manufacturing facility shall commence operations or be issued any form of certificate of occupancy without first obtaining all required fire, environmental, health and safety, planning, and building certificates, permits and approvals required under the City’s municipal code and all other applicable County, State and Federal regulations. 4. Manufacturers shall not use any Class I or Class II solvents, as those terms are defined in Federal Drug Administration Guidance, Table I, published in the Federal Register on December 24, 1997 (62 FR 67377), for extraction. 5. Manufacturers shall use butanes, ethanol, carbon dioxide, propane, heptane or other solvents exhibiting low to minimal potential human health-related toxicity for extraction, or other methods approved by the State of California. 6. All extraction manufacturing using hydrocarbons shall be conducted with a professionally certified closed loop extraction system conforming to current American Society of Mechanical Engineers (ASME) standards and ratings for pressure vessels and shall be operated in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present. 7. All extraction manufacturing using CO2 shall be conducted in a professionally certified CO2 based extraction system conforming to current ASME standards and ratings for pressure vessels with a pressure rating at all points being at or above 600 pounds per square inch, and shall be operated in an environment with proper ventilation. 8. All other methods of extraction shall be conducted in an environment appropriate to the solvent being used, with consideration to proper ventilation and ignition source controls. 9. Manufacturers may use heat, screens, presses, steam distillation, ice water, and other methods of extraction without employing solvents or gases to create kief, hashish, bubble hash, or vegetable oils or fats derived from natural sources, and other extracts. 10. Manufacturers using extract to create ingestible products shall only use food-grade ingredients. C. Ph.D Chemist. As a condition of obtaining a City-issued medical cannabis regulatory permit and conditional use permit, a cannabis business permittee of a manufacturing facility desiring to operate under this chapter shall first verify that the cannabis business permittee employs or contracts with a person who has a Ph.D in chemical sciences or related field of study Page 13 of 17 and who shall supervise the design, installation and operation of the facility’s systems and manufacturing processes. Such person shall inspect the premises on a quarterly basis and provide such inspection report to the City. The cannabis business permittee shall submit to the City a written statement that he or she certifies under penalty of perjury that the name of the employee/contractor is true and correct. The employee/contractor shall also submit a written statement that he or she certifies under penalty of perjury his or her educational qualifications and verifying that the supervisor is employed or contracted to supervise the design, installation and operation of the facility’s systems and manufacturing processes. D. State Regulations. In the event the State of California implements health and safety regulations applicable to medical cannabis manufacturing facilities, upon implementation of such State regulations, all medical cannabis manufacturing facilities operators shall immediately implement the State regulations. Should there be a conflict between the provisions of this chapter and the State regulations, the State regulations shall control. E. Manufacturing Facility Restricted. 1. No cannabis manufacturing permittee shall open their facility to the public. 2. No cannabis manufacturing permittee shall allow anyone on the manufacturing site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the facility site at all times that when any other person, except for security guards, is on the site. 4. While on the manufacturing site, managers and staff of the cannabis testing laboratory permittee must wear their cannabis testing identification badge, issued by the city, at all times. 5. Any person other than managers or staff who are on the manufacturing site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. F. Retail Sales Prohibited. No person shall conduct any retail sales of any good or services on or from a permitted cannabis manufacturing site unless a dispensary and/or distribution facility has also been approved to operate in conjunction with the manufacturing facility. Retail sales shall only occur within the dispensary and/or distribution portion of the facility. 17.156.120 Cannabis testing laboratory A. Interior Only. Cannabis testing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No cannabis manufacturing shall be visible from any public right- of-way. B. Operational Requirements. A cannabis testing laboratory site shall comply with the following requirements: 1. Entrances. All entrances into the buildings on the laboratory site shall be locked at all times with entry controlled by the cannabis testing laboratory permitee’s managers and staff. Page 14 of 17 2. Main Entrance and Lobby. The laboratory site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the testing areas. 3. Testing Area. All testing areas in any building on the laboratory site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis testing laboratory permittee. 4. Transport Area. Each building with a testing area shall have an area designed for the secure transfer of cannabis from a vehicle to the testing area. 5. Storage area. Each building with a testing area shall have adequate storage space for cannabis that has been tested or is waiting to be tested. The storage areas shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis testing laboratory permittee. C. Laboratory Site Restricted. 1. No cannabis testing laboratory permittee shall open their laboratory site to the public. 2. No cannabis testing laboratory permittee shall allow anyone on the laboratory site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the laboratory site at all times that when any other person, except for security guards, is on the site. 4. While on the laboratory site, managers and staff of the cannabis testing laboratory permittee must wear their cannabis testing identification badge, issued by the City, at all times. 5. Any person other than managers or staff who are on the laboratory site m ust sign in, wear a visitor badge, and be escorted on the site by a manager at all times. D. Retail Sales Prohibited. No person shall conduct any retail sales of any good or services on or from a permitted cannabis testing laboratory site. 17.156.130 Site Security A. Site Security. Each cannabis use business shall submit a site security plan approved by the Sheriff’s Department which must include the following: Page 15 of 17 1. Security Surveillance Cameras. Security surveillance cameras and a video recording system must be installed to monitor all doors into the buildings on the site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the site. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive. 2. Security Video Recording and Retention. Video from the security surveillance cameras must be recording at all times (24 hours a day, seven days a week) and the recording shall be maintained for at least 30 days. The video recordings shall be made available to the City upon request. 3. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems must be installed and maintained in good working condition. The alarm system must include a private security company that is required to respond to every alarm. B. Site security plan must be submitted with the conditional use permit planning application and approved prior to occupancy. 17.156.140 Prohibited Activity A. Consumption prohibited. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, the site. B. Alcohol prohibited. No cannabis distribution permittee or manager shall cause or permit the sale, distribution, or consumption of alcoholic beverages on the distribution facility property; hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages; or operate a business on or adjacent to the distribution facility property that sells alcoholic beverages. No alcoholic beverages shall be allowed or stored on the distribution facility property. C. Juveniles prohibited. 1. No juvenile shall be on the site (except within dispensary facilities if the juvenile has a valid medical prescription) or operate a cannabis facility in any capacity, including but not limited to, as a manager, staff, employee, contractor, or volunteer. 17.156.150 Signs A. Signs inside cannabis dispensary facilities. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis dispensary facilities where they will be visible to members and customers in the normal course of a transaction, stating: 1. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” Page 16 of 17 2. “Juveniles are prohibited from entering this property unless they are a qualified patient, or a primary caregiver.” and they are in the presence of their parent or legal guardian.” 3. “Neither the City of Lake Elsinore, nor any other governmental agency, has tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.” B. Signs inside cannabis distribution, cultivation and manufacturing facilities. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis distribution, cultivation and manufacturing facilities where they will be visible to members and customers in the normal course of a transaction, stating: 1. “This site is not open to the public.” “The distribution, cultivation and/or manufacturing area of this business is not open to the public.” 2. “Juveniles are prohibited from entering this property.” 3. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” C. Signs inside cannabis testing laboratory facilities. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis testing laboratory facilities where they will be visible to members and customers in the normal course of a transaction, stating: 1. “This site is not open to the public.” 2. “Retail sales of any goods and services are prohibited.” 3. “Juveniles are prohibited from entering this property.” 4. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” D. Signs on the cannabis dispensary building shall not obstruct the entrance or windows of the dispensary. 17.156.160 Enforcement. Violations of this chapter shall be considered a public nuisance, and may be enforced according to the procedures set forth in Chapter 8.18 and by the enforcement remedies conferred upon the City by Civil Code Section 3494, Code of Civil Procedure Section 731, Government Code Section 38773, or other lawful authority. Nothing in this provision is intended to impair any viable legal defense to a person using or in possession of medical Cannabis pursuant to the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time. 17.156.170 M-1 and M-2 District Zones. Page 17 of 17 Should there be a conflict between the provisions of this chapter and LEMC Chapters 17.136 or 17.140, this chapter shall control. 17.156.180 Severability Should any part, term, or provision of this chapter be decided by any court or competent jurisdiction to be illegal or in conflict with any law of the State, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining portions or provisions shall not be affected thereby. 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 1/16 Chapter 17.156 CANNABIS USES Sections: 17.156.010 Purpose and intent. 17.156.020 Interpretation and applicability. 17.156.030 Definitions. 17.156.040 Cannabis business permit. 17.156.050 Cannabis dispensaries. 17.156.060 Cannabis distribution. 17.156.070 Cannabis cultivation. 17.156.080 Cannabis manufacturing. 17.156.090 Cannabis testing laboratory. 17.156.100 Enforcement. 17.156.110 M-1 and M-2 district zones. Prior legislation: Ords. 1173 and 1348; Code 1987 §§ 17.69.010 – 17.69.030. 17.156.010 Purpose and intent. The purpose and intent of this chapter are to regulate the dispensing, cultivation, processing, manufacturing, testing and distribution of medical and recreational cannabis in a manner that protects the public health, safety and welfare of the City and mitigates the costs to the community of the oversight of these activities. Nothing in this chapter shall be construed to: allow persons to engage in conduct that endangers others or causes a public nuisance; or allow any activity relating to the cultivation, manufacturing, testing, distribution or consumption of cannabis that is otherwise illegal under California law. [Ord. 1383 § 4, 2017]. 17.156.020 Interpretation and applicability. Operation of cannabis facilities within the City shall be permitted upon the application and approval of both a City-issued conditional use permit pertaining to the location of the facility in accordance with the criteria and procedures set forth in this chapter and the City’s municipal code, upon application and subject to such additional regulations as may be promulgated pursuant to this chapter. A. The cultivation, processing, and distribution of cannabis in the City is controlled by the provisions of this chapter. B. Nothing in this chapter is intended, nor shall it be construed, to burden any defense to criminal prosecution otherwise afforded by California law. C. Nothing in this chapter is intended, nor shall it be construed, to preclude a landlord from limiting or prohibiting cannabis cultivation, consumption, processing, and distribution or other related activities by tenants. D. Nothing in this chapter is intended, nor shall it be construed, to exempt any cannabis-related activity from any applicable local or State construction, environmental, electrical, plumbing, land use, labor or employment laws or any other building or land use standards or permitting requirements. 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 2/16 E. Nothing in this chapter is intended, nor shall it be construed, to make legal any sale, cultivation, transportation, manufacture, or other use of cannabis that is otherwise prohibited or noncompliant under California law, as amended from time to time. F. All medical cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities and/or recreational cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities within City limits shall be subject to the provisions of this chapter, regardless of whether the use existed or occurred prior to adoption of this chapter. [Ord. 1383 § 4, 2017]. 17.156.030 Definitions. When used in this chapter, the following words shall have the meanings ascribed to them in this section. 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 regulatory provision. Words and phrases not specifically defined in this chapter shall have the meanings ascribed to them by the following sources: A. The CUA of 1996 (California Health and Safety Code Section 11362.5), and as may be amended from time to time; B. The MMPA (California Health and Safety Code Sections 11362.7 through 11362.83); C. The MMRSA (California Business and Professions Code Sections 19300 through 19355) as may be amended from time to time; D. The AMUA (Proposition 64, The Adult Use of Cannabis Act). “Cannabis” has the same meaning as in California Health and Safety Code Section 11018 and Proposition 64, Cannabis Legalization, as may be amended from time to time. For the purpose of this chapter, “cannabis” does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. “Cannabis business” means any use that conducts medical cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities and/or recreational cannabis cultivation, dispensaries, distribution, testing, and manufacturing facilities. “Cannabis business permit” means a specific permit required for any commercial operation of any cannabis- oriented business subject to the approval of a conditional use permit. “Cannabis cultivation” means the planting, growing, harvesting, drying or processing of any cannabis plants or any part thereof for medical use consistent with the Compassionate Use Act (California Health and Safety Code Section 11362.5), the Medical Cannabis Program Act (California Health and Safety Code Section 11362.7 et seq.), and Proposition 64, Cannabis Legalization. “Cannabis dispensary” means any facility or location where medical cannabis or recreational cannabis is made available to or distributed by or distributed to one or more individuals operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Cannabis distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of medical cannabis and/or recreational cannabis products between entities, including delivery to end users, operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Cannabis laboratories” means a facility for testing, analysis, and/or research. Similar types of lab uses include medical labs, soils, materials testing labs, and forensic labs. Laboratories are a necessary component of the 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 3/16 cannabis licensing scheme because testing is required to be done on each cannabis crop to determine constituents such as cannabinols (CBDs), tetrahydrocannabinol (THC), pesticide residuals, mold, and fungus. “Cannabis manufacturing facility” means a facility where the production of medical cannabis or recreational cannabis concentrate, and/or the preparation, propagation, or compounding of manufactured medical cannabis or recreational cannabis, either directly or indirectly or by extraction methods or independently by means of chemical synthesis, or the packaging or repackaging of medical cannabis or recreational cannabis products, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid conditional use permit, and a development agreement if applicable, all issued in accordance with this chapter and the City’s municipal code, and operating in strict accordance with the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time, and subject to the provisions of this chapter and the City’s municipal code. “Gross proceeds” means the value proceeding or accruing from the sale of tangible property and/or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. “Indoor” means any location within the City that is within a fully enclosed, occupied (as defined in this section) dwelling, dwelling unit or housing unit. “Occupied” means currently, presently, and lawfully utilized in accordance with an issued certificate of occupancy. “Outdoor” means any location within the City that is not within a fully enclosed, occupied (as defined in this section) dwelling, dwelling unit or housing unit. “Parcel” means any parcel of real property that may be separately sold in compliance with the Subdivision Map Act (California Government Code Section 66410 et seq.). “School” means any educational facility which primarily provides educational services to individuals under the age of 18. [Ord. 1383 § 4, 2017]. 17.156.040 Cannabis business permit. A. Except as otherwise set forth in this chapter, it shall be unlawful for any person or entity to operate, in or upon any property, a cannabis business without first obtaining all required State licenses and a business license or permits issued by the City. Each State license type available in the MMRSA or AMUA is eligible to apply for a cannabis business permit. Unless otherwise set forth in this chapter, no person shall engage in a cannabis business without possessing all applicable State licenses and all applicable City permits and licenses. Revocation of a State license shall constitute grounds for the City to suspend or revoke any permit or license issued by the City. B. All cannabis business permittees must at all times maintain liability insurance having aggregate policy limits in an amount not less than $1,000,000. C. The City may impose an annual cannabis business permit fee at a rate set by a Council resolution. D. All cannabis business permittees shall be subject to an annual regulatory inspection by the City to ensure compliance with all of the applicable provisions of this chapter. E. It shall be unlawful for the owner of a building to allow the use of any portion of a building by a cannabis business unless the tenant has a valid cannabis business permit, or has applied for and not been denied a cannabis business permit. Each owner of a building whose tenant is a cannabis business permit applicant shall execute an acknowledgement that the applicant has the owner’s permission and consent to operate a cannabis business at the subject property. 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 4/16 F. The City shall issue a maximum of five cannabis business permits within the M-1 zone district and a maximum of five cannabis business permits within the M-2 zone district. In the event that the City has issued the maximum number of cannabis business permits as provided herein, a cannabis business permit applicant may elect to submit an application with a request for a finding of public convenience that an additional permit should be issued in excess of the maximum number as provided herein. Such request shall include a statement by the applicant demonstrating how the public convenience will be served by issuance of additional cannabis business permits. 1. The following criteria will be considered by the City’s Director of Community Development in evaluating the applicant’s request for a determination of public convenience. a. Identify the special and unusual circumstances present to justify a new cannabis business when similar businesses exist nearby, or how it will provide a needed service not currently being met. b. Prove/demonstrate how the economic benefit of the cannabis business outweighs potential negative impacts to the community as a whole. c. Demonstrate reasonable efforts to seek community input on the proposed cannabis business. 2. The Director of Community Development may request additional information in making a public convenience determination. 3. The Director of Community Development may refuse to make a determination of public convenience if any of the following instances occur: a. The proposed use is to be located in an existing targeted law enforcement area as documented by specific and abnormally high general health and safety indicators that have some nexus with alcohol use or substance abuse. b. The proposed use is within a crime reporting area that exhibits an excess amount of alcohol or substance abuse related crimes, greater than a 20 percent increase of the reported crimes from the previous year. c. The proposed use is inconsistent with the direction and policies set forth by the Council. [Ord. 1383 § 4, 2017]. 17.156.050 Cannabis dispensaries. A. Permitted Locations. Cannabis dispensaries shall only be located in the M-1 or M-2 zoning districts. B. Cannabis dispensaries shall be permitted as an accessory use to either a cannabis cultivation facility or cannabis manufacturing facility. In no case shall either the gross floor area of the dispensary exceed 25 percent of the total area of the business or 50 percent of gross proceeds of the business. C. Permits Required. Dispensaries shall only be permitted when either a cannabis cultivation facility or cannabis manufacturing facility has obtained a valid City-issued conditional use permit, building permit and the issuance of certificate of occupancy. D. Cannabis Business Permit. Cannabis dispensaries shall only be permitted when either a cannabis cultivation facility or cannabis manufacturing facility has obtained a valid City-issued cannabis business permit. E. The cannabis business permittee shall submit to the City a financial report on a yearly basis detailing the gross proceeds of the business. F. Storage. A cannabis dispensary shall have adequate locked storage on the dispensary property, identified and approved as a part of the security plan, for after-hours storage of cannabis. Cannabis shall be stored at the dispensary property in secured rooms that are completely enclosed or in a safe that is bolted to the floor. 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 5/16 G. Site Security. Each dispensary site security plan approved by the Sheriff’s Department must include the following: 1. Security Surveillance Cameras. Security surveillance cameras and a video recording system must be installed to monitor all doors into the buildings on the site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the site. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive. 2. Security Video Recording and Retention. Video from the security surveillance cameras must be recording at all times (24 hours a day, seven days a week) and the recording shall be maintained for at least 30 days. The video recordings shall be made available to the City upon request. 3. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems must be installed and maintained in good working condition. The alarm system must include a private security company that is required to respond to every alarm. H. Cannabis Business Permit. The dispensary permittee shall display its current valid cannabis business permit issued in accordance with this chapter inside the lobby or waiting area of the main entrance to the dispensary site. The permit shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the dispensary site. I. Signs. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis dispensary where they will be visible to members and customers in the normal course of a transaction, stating: 1. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the dispensary is prohibited.” 2. “Juveniles are prohibited from entering this property unless they are a qualified patient or a primary caregiver and they are in the presence of their parent or legal guardian.” 3. “Neither the City of Lake Elsinore, nor any other governmental agency, has tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.” 4. Signs on the cannabis dispensary building shall not obstruct the entrance or windows of the dispensary. J. Dispensary Site Restricted. 1. All entrances into a cannabis dispensary’s building shall be locked from the exterior at all times with entry controlled by dispensary personnel. 2. A manager must be on the cannabis dispensary site at all times that any other person, except for security guards, is on the site. 3. While on the cannabis dispensary site, managers and staff of the cannabis dispensary permittee must wear their City-issued cannabis dispensary identification badge at all times. 4. Any person other than managers or staff shall be escorted by a manager at all times while in the cannabis dispensary building. K. Juveniles Prohibited. No juvenile shall be on the dispensary site or operate a cannabis dispensary in any capacity, including, but not limited to, as a manager, staff, employee, contractor, or volunteer. 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 6/16 L. Delivery Prohibited. A cannabis dispensary shall not provide any form of delivery service. All distribution of cannabis must be conducted within the enclosed building areas of the dispensary property. M. Cannabis Consumption Prohibited. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, the dispensary site. N. Alcohol Prohibited. No cannabis dispensary or manager shall cause or permit the sale, distribution, or consumption of alcoholic beverages on the dispensary property; hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages; or operate a business on or adjacent to the dispensary property that sells alcoholic beverages. No alcoholic beverages shall be allowed or stored on the dispensary property. O. Criminal History. No cannabis dispensary permittee or manager of a dispensary shall operate a dispensary if he or she has been convicted of a felony, or is currently on parole or probation for the sale or distribution of a controlled substance. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Notwithstanding the above, a person may not be denied the ability to obtain a permit or operate a dispensary solely on the basis that the person has been convicted of a felony if the person has obtained a certificate of rehabilitation (expungement of felony record) under California law or similar Federal statute or State law under which the expungement was granted. P. Hours of Operation. The maximum hours of operation for a cannabis dispensary shall be daily from 7:00 a.m. to 9:00 p.m. unless the more restrictive hours have been imposed as a condition of the cannabis business permit or conditional use permit. [Ord. 1383 § 4, 2017]. 17.156.060 Cannabis distribution. A. Permitted Locations. Cannabis distribution shall only be located in the M-1 or M-2 zoning districts. B. Limitation of Use. Cannabis distribution shall be permitted as an accessory use to either a cannabis cultivation facility or cannabis manufacturing facility. In no case shall either the gross floor area of the distribution facility exceed 25 percent of the total area of the business or 50 percent of gross proceeds of the business. C. Permits Required. Cannabis distribution shall only be permitted when either a cannabis cultivation facility or cannabis manufacturing facility has obtained a valid conditional use permit, building permit and issuance of a certificate of occupancy. D. Cannabis Business Permit. Cannabis distribution shall only be permitted when either a cannabis cultivation facility or cannabis manufacturing facility has obtained a valid City-issued cannabis business permit. E. Yearly Reporting. The cannabis business permittee shall submit to the City a financial report on a yearly basis detailing the gross proceeds of the business. F. Storage. A cannabis distribution facility shall have adequate locked storage on the distribution facility property, identified and approved as a part of the security plan, for after-hours storage of cannabis. Cannabis shall be stored at the distribution facility property in secured rooms that are completely enclosed or in a safe that is bolted to the floor. G. Site Security. Each distribution site security plan approved by the Sheriff’s Department must include the following: 1. Security Surveillance Cameras. Security surveillance cameras and a video recording system must be installed to monitor all doors into the buildings on the site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the site. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive. 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 7/16 2. Security Video Recording and Retention. Video from the security surveillance cameras must be recording at all times (24 hours a day, seven days a week) and the recording shall be maintained for at least 30 days. The video recordings shall be made available to the City upon request. 3. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems must be installed and maintained in good working condition. The alarm system must include a private security company that is required to respond to every alarm. H. Cannabis Business Permit. The distribution permittee shall display its current valid cannabis business permit issued in accordance with this chapter inside the lobby or waiting area of the main entrance to the distribution site. The permit shall be displayed at all times in a conspicuous place so that all persons entering the site may readily see it. I. Signs. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the cannabis distribution site where they will be visible to members and customers in the normal course of a transaction, stating: 1. “Smoking, ingesting or consuming cannabis on this property or within 20 feet of the distribution facility is prohibited.” 2. “Juveniles are prohibited from entering this property unless they are a qualified patient or a primary caregiver and they are in the presence of their parent or legal guardian.” 3. “Neither the City of Lake Elsinore, nor any other governmental agency, has tested or inspected any cannabis product for pesticides, or other regulated contaminants, distributed at this location.” 4. Signs on the cannabis distribution facility building shall not obstruct the entrance or windows of the distribution facility. J. Distribution Facility Site Restricted. 1. All entrances into a cannabis distribution facility’s building shall be locked from the exterior at all times with entry controlled by distribution facility personnel. 2. No cannabis distribution facility permittee shall allow anyone in the distribution facility building, except for qualified patients, primary caregivers, persons with identification cards, managers, staff, and other persons with bona fide purposes for being in the distribution facility, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the cannabis distribution facility site at all times that any other person, except for security guards, is on the site. 4. While on the cannabis distribution facility site, managers and staff of the cannabis distribution facility permittee must wear their City-issued cannabis distribution facility identification badge at all times. 5. Any person other than managers or staff shall be escorted by a manager at all times while in the cannabis distribution facility building. K. Juveniles Prohibited. No juvenile shall be on the distribution site or operate a cannabis testing laboratory in any capacity, including, but not limited to, as a manager, staff, employee, contractor, or volunteer. L. Cannabis Consumption Prohibited. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, the site. M. Alcohol Prohibited. No cannabis distribution permittee or manager shall cause or permit the sale, distribution, or consumption of alcoholic beverages on the distribution facility property; hold or maintain a license from the 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 8/16 State Division of Alcoholic Beverage Control for the sale of alcoholic beverages; or operate a business on or adjacent to the distribution facility property that sells alcoholic beverages. No alcoholic beverages shall be allowed or stored on the distribution facility property. N. Criminal History. No cannabis distribution permittee or manager of a distribution facility shall operate a distribution facility if he or she has been convicted of a felony, or is currently on parole or probation for the sale or distribution of a controlled substance. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Notwithstanding the above, a person may not be denied the ability to obtain a permit or operate a distribution facility solely on the basis that the person has been convicted of a felony if the person has obtained a certificate of rehabilitation (expungement of felony record) under California law or similar federal statute or state law under which the expungement was granted. O. Hours of Operation. The maximum hours of operation for a cannabis distribution facility shall be daily from 7:00 a.m. to 9:00 p.m. unless the more restrictive hours have been imposed as a condition of the cannabis business permit or conditional use permit. [Ord. 1383 § 4, 2017]. 17.156.070 Cannabis cultivation. A. No person owning, renting, leasing, occupying or having charge or possession of any parcel shall cause or allow such parcel to be used for the outdoor cultivation of any cannabis plant. B. Cannabis cultivation shall be limited to interior areas. No person owning, renting, leasing, occupying, or having charge or possession of any parcel shall cause or allow indoor cultivation of cannabis on such parcel to be visible from any street, sidewalk, or other place freely accessible by the public. C. Permitted Locations. Cannabis cultivation facilities involving the cultivation of mature flowering cannabis plants shall only be located in the M-1 or M-2 zoning districts in the City. D. On-site smoking, ingestion, or consumption of cannabis or alcohol shall be prohibited. E. Permits Required. Cannabis cultivation facilities shall obtain a City-issued conditional use permit, building permit and the issuance of a certificate of occupancy prior to the establishment of the use. F. Cannabis Business Permit. Cultivators shall obtain a valid City-issued cannabis business permit. G. The cannabis business permittee shall submit to the City a financial report on a yearly basis detailing the gross proceeds of the business. H. Cultivation Site Buildings. A cultivation site shall comply with the following requirements: 1. Entrances. All entrances into the buildings on the cultivation site shall be locked at all times with entry controlled by the cannabis cultivation permittee’s managers and staff. 2. Main Entrance and Lobby. The cultivation site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the cultivation areas. 3. Cultivation Area. All cultivation areas in any building on the cultivation site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis cultivation permittee. 4. Transport Area. Each building with a cultivation area shall have an area designed for the secure transfer of cannabis from the cultivation area to a vehicle for transportation. 5. Storage Area. Each building with a cultivation area shall have adequate storage space for cannabis that has completed the cultivation process or is otherwise not being cultivated. The storage areas shall be 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 9/16 separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis cultivation permittee. I. Compliance with Building, Fire Code and Permitting Requirements. Any person(s) cultivating cannabis with the use of grow lights, fans, ventilation devices or any other electrical or mechanical equipment shall comply with all applicable building and fire code requirements adopted by the City of Lake Elsinore, and shall obtain all permits required for such installation. J. Cultivation Site Security. Each cultivation site security plan approved by the Sheriff’s Department must include the following: 1. Security Surveillance Cameras. Security surveillance cameras and a video recording system must be installed to monitor all doors into the buildings on the cultivation site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the cultivation site. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive. 2. Security Video Recording and Retention. Video from the security surveillance cameras must be recording at all times (24 hours a day, seven days a week) and the recording shall be maintained for at least 30 days. The video recordings shall be made available to the city upon request. 3. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems must be installed and maintained in good working condition. The alarm system must include a private security company that is required to respond to every alarm. K. Display of Cannabis Cultivation Permit. The cannabis cultivation permittee shall display its current valid cannabis cultivation permit issued in accordance with this chapter inside the lobby or waiting area of the main entrance to the cultivation site. The permit shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the cultivation site. L. Signs. A cannabis cultivation permittee shall post in the lobby of the cultivation site signs that state the following: 1. “This site is not open to the public.” 2. “Retail sales of any goods and services is prohibited.” 3. “Juveniles are prohibited from entering this site.” 4. “Smoking, ingesting, or consuming cannabis on or within 20 feet of this site is prohibited.” Each sign described in this subsection (L) must be at least eight inches by 10 inches in size and must be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the cultivation site. M. Cultivation Site Restricted. 1. No cannabis cultivation permittee shall open their cultivation site to the public. 2. No cannabis cultivation permittee shall allow anyone on the cultivation site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the cultivation site at all times that any other person, except for security guards, is on the site. 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 10/16 4. While on the cultivation site, managers and staff of the cannabis cultivation permittee must wear their cannabis cultivation identification badge, issued by the City, at all times. 5. Any person other than managers or staff who are on the cultivation site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. N. The cannabis cultivation site shall not be upon any premises located within 1,000 feet of any school, community center, or park. O. Juveniles Prohibited. No juvenile shall be on the cultivation site or operate a cannabis cultivation business in any capacity, including, but not limited to, as a manager, staff, employee, contractor, or volunteer. P. Retail Sales Prohibited. No person shall conduct any retail sales of any goods or services on or from a permitted cultivation site. Q. Cannabis Consumption Prohibited. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, the cultivation site. R. Alcohol Prohibited. No person shall possess, consume, or store any alcoholic beverage on the cultivation site. S. There shall be a limited exemption from enforcement for violations of this chapter by authorized persons for small amounts of cannabis cultivation for their own recreational use in all residential zone classifications when all of the following conditions and standards are complied with: 1. The premises shall contain a legally permitted single-family dwelling. 2. Cultivation of No More Than 12 Cannabis Plants. In the event a qualified patient has a primary caregiver cultivating cannabis plants for the qualified patient, only one primary caregiver may cultivate no more than 12 cannabis plants for that qualified patient at any one time. In no circumstances shall a qualified patient have multiple primary caregivers cultivating cannabis plants for the qualified patient at the same time. 3. Two qualified patient limit to aggregate cannabis plant count for a maximum total of 24 cannabis plants per premises. 4. At least one qualified patient or one primary caregiver must live on the premises. 5. All cannabis plants must be reasonably secured to prevent access by minors or theft, to a standard satisfactory to the enforcement officer. 6. All cannabis cultivation outside of any building must be fully enclosed by an opaque fence at least six feet in height. The fence must be adequately secure to prevent unauthorized entry. Bushes, hedgerows, plastic sheeting, tarps, or cloth material shall not constitute an adequate fence under this subsection. Premises larger than five acres are exempt from this fencing provision so long as all other standards and conditions of this subsection (S) are complied with and any barriers used are otherwise consistent with the municipal code. 7. Each building or outdoor area in which the cannabis plants are cultivated shall be set back at least 10 feet from all boundaries of the premises. Such setback distance shall be measured in a straight line from the building in which the cannabis plants are cultivated, or, if the cannabis plants are cultivated in an outdoor area, from the fence required by subsection (S)(6) of this section to the boundary line of the premises. 8. The designated cannabis cultivation area must not be visible from any public right-of-way. 9. If the person cultivating cannabis plants on any premises is not the owner of the premises, such person shall submit a letter from the owner(s) consenting to the cannabis cultivation on the parcel. This letter shall 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 11/16 be examined by the enforcement officer, and shall then be returned to the submitter. The County shall prescribe forms for such letters. 10. Parolees or probationers shall not live on the premises unless the parolees or probationers have received confirmation from the court that they are allowed to use cannabis while on parole or probation pursuant to Health and Safety Code Section 11362.795, which shall be subject to verification by the enforcement officer. 11. Qualified patients for whom the cannabis plants are being cultivated shall have valid medical cannabis identification cards issued by the Riverside County Department of Public Health. Any primary caregiver cultivating cannabis plants for a qualified patient shall have a copy of the qualified patient’s valid medical cannabis identification card issued by the Riverside County Department of Public Health, which shall be kept on the premises. 12. The address for the premises must be posted and plainly visible from the public right-of-way. 13. The cannabis cultivation site shall not be within a multi-dwelling building. 14. The cannabis cultivation site shall not be upon any premises located within 1,000 feet of any school, community center, or park. 15. The cannabis cultivation site shall not be upon any premises containing a child care center, church, or youth-oriented facility. T. There shall be a limited exemption from enforcement for violations of this chapter by authorized persons for small amounts of cannabis cultivation for their own recreational use in all residential zone classifications when all of the following conditions and standards are complied with: 1. The premises shall contain a legally permitted single-family dwelling. 2. Cultivation of no more than six cannabis plants per dwelling. 3. All cannabis plants must be reasonably secured to prevent access by minors or theft, to a standard satisfactory to the enforcement officer. 4. All cannabis cultivation outside of any building must be fully enclosed by an opaque fence at least six feet in height. The fence must be adequately secure to prevent unauthorized entry. Bushes, hedgerows, plastic sheeting, tarps, or cloth material shall not constitute an adequate fence under this subsection. Premises larger than five acres are exempt from this fencing provision so long as all other standards and conditions of this subsection (T) are complied with and any barriers used are otherwise consistent with the municipal code. 5. Each building or outdoor area in which the cannabis plants are cultivated shall be set back at least 10 feet from all boundaries of the premises. Such setback distance shall be measured in a straight line from the building in which the cannabis plants are cultivated, or, if the cannabis plants are cultivated in an outdoor area, from the fence required by subsection (T)(4) of this section to the boundary line of the premises. 6. The designated cannabis cultivation area must not be visible from any public right-of-way. 7. If the person cultivating cannabis plants on any premises is not the owner of the premises, such person shall submit a letter from the owner(s) consenting to the cannabis cultivation on the parcel. This letter shall be examined by the enforcement officer, and shall then be returned to the submitter. The County shall prescribe forms for such letters. 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 12/16 8. Parolees or probationers shall not live on the premises unless the parolee or probationer has received confirmation from the court that he is allowed to use cannabis while on parole or probation pursuant to Health and Safety Code Section 11362.795, which shall be subject to verification by the enforcement officer. 9. The address for the premises must be posted and plainly visible from the public right-of-way. 10. The cannabis cultivation site shall not be within a multi-dwelling building. 11. The cannabis cultivation site shall not be upon any premises located within 1,000 feet of any school, community center, or park. 12. The cannabis cultivation site shall not be upon any premises containing a child care center, church, or youth-oriented facility. [Ord. 1383 § 4, 2017]. 17.156.080 Cannabis manufacturing. A. Permitted Locations. Cannabis manufacturing facilities shall only be located in the M-1 or M-2 zoning districts. B. Permits Required. Cannabis manufacturing facilities shall obtain a City-issued conditional use permit, building permit and the issuance of a certificate of occupancy prior to the establishment of the use. C. Cannabis Business Permit. Cannabis manufacturing facilities shall obtain a City-issued cannabis business permit. D. The cannabis business permittee shall submit to the City a financial report on a yearly basis detailing the gross proceeds of the business. E. Interior Only. Cannabis manufacturing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No cannabis manufacturing shall be visible from any public right-of-way. F. On-site smoking, ingestion, or consumption of cannabis or alcohol shall be prohibited. G. Operational Requirements. 1. Manufacturers are limited to certain equipment, methods, solvents, gases and mediums when creating cannabis extracts. 2. Manufacturing facilities with a state license of a Type 6 (nonvolatile) or a Type 7 (volatile) classification may be allowed to operate under this chapter. 3. All equipment, systems and manufacturing processes must meet or exceed all applicable State and Federal requirements and regulations regarding air, water, health and safety, and handling, processing and storage of hazardous materials, solvents, gases and waste. No manufacturing facility shall commence operations or be issued any form of certificate of occupancy without first obtaining all required fire, environmental, health and safety, planning, and building certificates, permits and approvals required under the City’s municipal code and all other applicable County, State and Federal regulations. 4. Manufacturers shall not use any Class I or Class II solvents, as those terms are defined in Federal Drug Administration Guidance, Table I, published in the Federal Register on December 24, 1997 (62 FR 67377), for extraction. 5. Manufacturers shall use butanes, ethanol, carbon dioxide, propane, heptane or other solvents exhibiting low to minimal potential human health-related toxicity for extraction, or other methods approved by the State of California. 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 13/16 6. All extraction manufacturing using hydrocarbons shall be conducted with a professionally certified closed loop extraction system conforming to current American Society of Mechanical Engineers (ASME) standards and ratings for pressure vessels and shall be operated in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present. 7. All extraction manufacturing using CO2 shall be conducted in a professionally certified CO2 based extraction system conforming to current ASME standards and ratings for pressure vessels with a pressure rating at all points being at or above 600 pounds per square inch, and shall be operated in an environment with proper ventilation. 8. All other methods of extraction shall be conducted in an environment appropriate to the solvent being used, with consideration to proper ventilation and ignition source controls. 9. Manufacturers may use heat, screens, presses, steam distillation, ice water, and other methods of extraction without employing solvents or gases to create kief, hashish, bubble hash, or vegetable oils or fats derived from natural sources, and other extracts. 10. Manufacturers using extract to create ingestible products shall only use food-grade ingredients. H. Ph.D. Chemist. As a condition of obtaining a City-issued cannabis regulatory permit and conditional use permit, a cannabis business permittee of a manufacturing facility desiring to operate under this chapter shall first verify that the cannabis business permittee employs or contracts with a person who has a Ph.D. in chemical sciences or related field of study and who shall supervise the design, installation and operation of the facility’s systems and manufacturing processes. Such person shall inspect the premises on a quarterly basis and provide such inspection report to the City. The cannabis business permittee shall submit to the City a written statement that he or she certifies under penalty of perjury that the name of the employee/contractor is true and correct. The employee/contractor shall also submit a written statement that he or she certifies under penalty of perjury his or her educational qualifications and verifying that the supervisor is employed or contracted to supervise the design, installation and operation of the facility’s systems and manufacturing processes. I. State Regulations. In the event the State of California implements health and safety regulations applicable to cannabis manufacturing facilities, upon implementation of such State regulations, all cannabis manufacturing facilities operators shall immediately implement the State regulations. Should there be a conflict between the provisions of this chapter and the State regulations, the State regulations shall control. J. Site Security. Each site security plan approved by the Sheriff’s Department must include the following: 1. Security Surveillance Cameras. Security surveillance cameras and a video recording system must be installed to monitor all doors into the buildings on the site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the site. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive. 2. Security Video Recording and Retention. Video from the security surveillance cameras must be recording at all times (24 hours a day, seven days a week) and the recording shall be maintained for at least 30 days. The video recordings shall be made available to the City upon request. 3. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems must be installed and maintained in good working condition. The alarm system must include a private security company that is required to respond to every alarm. K. Cannabis Business Permit. The cannabis manufacturing permittee shall display its current valid cannabis business permit issued in accordance with this chapter inside the lobby or waiting area of the main entrance to 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 14/16 the manufacturing site. The permit shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the manufacturing site. L. Signs. A cannabis manufacturing facility permittee shall post in the lobby of the manufacturing site signs that state the following: 1. “This site is not open to the public.” 2. ”Retail sales of any goods and services is prohibited.” 3. “Juveniles are prohibited from entering this site.” 4. “Smoking, ingesting, or consuming cannabis on or within 20 feet of this site is prohibited.” Each sign described in this subsection (L) must be at least eight inches by 10 inches in size and must be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the manufacturing site. M. Manufacturing Facility Restricted. 1. No cannabis manufacturing permittee shall open their facility to the public. 2. No cannabis manufacturing permittee shall allow anyone on the manufacturing site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the facility site at all times that any other person, except for security guards, is on the site. 4. While on the manufacturing site, managers and staff of the cannabis manufacturing facility permittee must wear their cannabis testing identification badge, issued by the City, at all times. 5. Any person other than managers or staff who is on the manufacturing site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. N. Juveniles Prohibited. No juvenile shall be on the manufacturing site or operate a cannabis manufacturing facility in any capacity, including, but not limited to, as a manager, staff, employee, contractor, or volunteer. O. Retail Sales Prohibited. No person shall conduct any retail sales of any good or services on or from a permitted cannabis manufacturing site. P. Cannabis Consumption Prohibited. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, the site. Q. Alcohol Prohibited. No person shall possess, consume, or store any alcoholic beverage on the site. [Ord. 1383 § 4, 2017]. 17.156.090 Cannabis testing laboratory. A. Permitted Locations. Cannabis testing laboratories shall only be located in the M-1 or M-2 zoning districts. B. Permits Required. Cannabis testing laboratories shall obtain a City-issued conditional use permit, building permit and certificate of occupancy prior to the establishment of the use. C. Cannabis Business Permit. Cannabis testing laboratories shall obtain a cannabis business permit. D. Yearly Reporting. The cannabis business permittee shall submit to the City a financial report on a yearly basis detailing the gross proceeds of the business. 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 15/16 E. Interior Only. Cannabis testing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No cannabis testing laboratories shall be visible from any public right-of-way. F. Operational Requirements. A cannabis testing laboratory site shall comply with the following requirements: 1. Entrances. All entrances into the buildings on the laboratory site shall be locked at all times with entry controlled by the cannabis testing laboratory permittee’s managers and staff. 2. Main Entrance and Lobby. The laboratory site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the testing areas. 3. Testing Area. All testing areas in any building on the laboratory site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis testing laboratory permittee. 4. Transport Area. Each building with a testing area shall have an area designed for the secure transfer of cannabis from a vehicle to the testing area. 5. Storage Area. Each building with a testing area shall have adequate storage space for cannabis that has been tested or is waiting to be tested. The storage areas shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis testing laboratory permittee. G. Site Security. Each laboratory site security plan approved by the Sheriff’s Department must include the following: 1. Security Surveillance Cameras. Security surveillance cameras and a video recording system must be installed to monitor all doors into the buildings on the laboratory site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the laboratory site. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive. 2. Security Video Recording and Retention. Video from the security surveillance cameras must be recording at all times (24 hours a day, seven days a week) and the recording shall be maintained for at least 30 days. The video recordings shall be made available to the City upon request. 3. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems must be installed and maintained in good working condition. The alarm system must include a private security company that is required to respond to every alarm. H. Cannabis Business Permit. The cannabis testing laboratory permittee shall display its current valid cannabis business permit issued in accordance with this chapter inside the lobby or waiting area of the main entrance to the laboratory site. The permit shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the laboratory site. I. Signs. A cannabis testing laboratory permittee shall post in the lobby of the laboratory site signs that state the following: 1. “This site is not open to the public.” 2. ”Retail sales of any goods and services is prohibited.” 7/14/2021 Chapter 17.156 CANNABIS USES https://www.codepublishing.com/CA/LakeElsinore/#!/LakeElsinore17/LakeElsinore17156.html#17.156 16/16 3. “Juveniles are prohibited from entering this site.” 4. “Smoking, ingesting, or consuming cannabis on or within 20 feet of this site is prohibited.” Each sign described in this subsection (I) must be at least eight inches by 10 inches in size and must be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the laboratory site. J. Laboratory Site Restricted. 1. No cannabis testing laboratory permittee shall open their laboratory site to the public. 2. No cannabis testing laboratory permittee shall allow anyone on the laboratory site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters. 3. A manager must be on the laboratory site at all times that any other person, except for security guards, is on the site. 4. While on the laboratory site, managers and staff of the cannabis testing laboratory permittee must wear their cannabis testing identification badge, issued by the City, at all times. 5. Any person other than managers or staff who is on the laboratory site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. K. Juveniles Prohibited. No juvenile shall be on the laboratory site or operate a cannabis testing laboratory in any capacity, including, but not limited to, as a manager, staff, employee, contractor, or volunteer. L. Retail Sales Prohibited. No person shall conduct any retail sales of any goods or services on or from a permitted cannabis testing laboratory site. M. Cannabis Consumption Prohibited. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, the laboratory site. N. Alcohol Prohibited. No person shall possess, consume, or store any alcoholic beverage on the laboratory site. [Ord. 1383 § 4, 2017]. 17.156.100 Enforcement. Violations of this chapter shall be considered a public nuisance, and may be enforced according to the procedures set forth in Chapter 8.18 LEMC and by the enforcement remedies conferred upon the City by Civil Code Section 3494, Code of Civil Procedure Section 731, Government Code Section 38773, or other lawful authority. Nothing in this provision is intended to impair any viable legal defense to a person using or in possession of cannabis pursuant to the CUA, the MMPA, the MMRSA, and the AMUA as may be amended from time to time. [Ord. 1383 § 4, 2017]. 17.156.110 M-1 and M-2 district zones. Should there be a conflict between the provisions of this chapter and Chapter 17.136 or 17.140 LEMC, this chapter shall control. [Ord. 1383 § 4, 2017]. Mobile Version PA #District Corporate Name Contact Address APN Size Current Status Occupancy Approval Application PA 2018-34 BD Syndicate Shawn Belschner 504 Central Avenue 377-420-002 6,141 Fully operational. 11/21/2019 12/11/2018 4/13/2018 PA 2018-44 BD Medcare Farms Garin Heslop 29395 Hunco Bldg A 377-120-043 35,264 Partially operational, ETA to build out 12-18 months. 1/1/2020 12/11/2018 4/16/2018 PA 2020-84 BD Kind Delivery Jarret Hale 571-H Crane Street 377-410-032 3,754 Fully operational. 7/30/2020 4/28/2020 1/30/2020 PA 2018-39 BD Mr. Nice Guy Joesph Martin 311 Minthorn 370-220-003, 019, and 021 8,500 Fully operational. 9/30/2020 12/11/2018 4/13/2018 PA 2018-45 BD The Highest Craft Nick Wolin 571 Crane Avenue D, E and F 377-410-034, 377-410-031, 377-410-020 10,723 Partially operational, ETA to build out 6-9 months. Paying full fees on total area approved. 11/4/2020 12/11/2018 4/16/2018 PA 2018-38 BD The Healing Tree Darren Hagen 480 Third St.377-140-027 20,891 Partially operational, ETA to build out 6-9 months. Paying full fees on total area approved. 11/13/2020 12/11/2018 4/16/2018 PA 2018-37 EL The Modern Leaf Josh Grant 31877 Corydon 370-051-008 2,074 Fully operational. 6/16/2019 12/11/2018 4/16/2018 87,347 PA #District Corporate Name Contact Address APN Size Current Status Exp Date Approval Application PA 2018-33 EL Licensing/Syndicat e Part 2 Shawn Belschner 31885 Corydon 370-031-17, 018 and 019 5,000 Building permits have been issued, pending first inspection. 3/17/2021 12/11/2018 03/17/2019 4/16/2018 10/31/19 PA 2018-36 EL VERT Saif Alchi 31875 Corydon 370-051-008 & 031 8,099 Plan Check comments returned on 7/28/21, pending resubmittal. 8/25/2022 12/11/2018 4/13/2018 PA 2018-41 BD Trustin Solutions Justin Shively 510 Crane Street 377-430-028 5,521 Building permits have been issued, pending first inspection. 12/11/2021 12/11/2018 4/13/2018 PA 2018-40 EL Brighter Systems Justin Shively 31887 Corydon STE 150 370-301-012 and 013 9,000 Under construction. 12/11/2021 12/11/2018 4/13/2018 PA 2019-28 BD Roots 2 Harvest Ted Kingston 29370 Hunco Way 377-220-024 12,411 Issued 11/20/20, last inspection 7/13/21 12/10/2021 12/10/2019 4/18/2019 PA 2019-81 BD Tree Haus David Lemme 18532 Pasadena 377-430-023 4,892 Issued 1/4/21, last inspection 5/3/21 4/14/2022 4/14/2020 12/17/2019 PA 2019-78 EL VISTA PRIME George Sadler 31875 Corydon 370-051-010 5,369 Plan Check comments returned on 4/13/21, pending resubmittal. 6/2/2022 6/2/2020 10/31/2019 PA 2019-31 BD Rahman, ASSC.Bill Rahman 233 Minthorn 377-120-032 17,037 Grading permits issued, Building Permits issued, last passed inspection was 7/29/21.6/2/2022 6/2/2020 5/13/2019 PA 2019-13 EL Alba Systems Gil Alba 31879 Corydon Suite 150 370-051-025 2,350 Plan Check comments returned on 6/21/21, pending resubmittal. 4/14/2022 4/14/2020 5/17/2019 PA 2020-86 BD Stellar House Joel Carrillo 570 Central Avenue 377-410-037 6,810 Issued 4/21/21, last inspection 5/13/21.11/10/2022 11/10/2020 2/13/2020 PA 2020-98 EL SCCC Group Hazelina Laskey 31889 Corydon STE 170 4,925 In plancheck. Comments returned 1/14/21, pending resubmittal. New contractor as of 6/8/21.1/12/2023 1/12/2021 7/7/2020 PA 2018-37 EL Grant Expansion Joshua Grant STE 150 370-051-030 4,450 Plans approved 3/30/21, pending permit issuance.11/10/2022 11/10/2020 10/11/2019 PA 2018-35 BD Trucc Brandi Smith Central/Pasadena 377-120-059 24,000 CC approved, waiting Plancheck submission. 4/13/2023 4/13/2021 4/17/2018 109,864 PA 2018-46 BD LECANNA Paul Cadaret 540 Third Street 377-430-050 11,612 DA review commenced. DA comments returned 6/15/21.4/25/2018 11,612 Summary of Cannabis Facilities by Status Operational Approved, Not Operational In Process Total Total Total Cannabis Business Status Updated 8/02/21 City Council Cannabis Subcommittee Report August 2, 2021 The City Council Cannabis Subcommittee has evaluated the City Council findings in connection with Ordinance No. 1437 adopted on August 11, 2020, with Ordinance No. 1438 adopted on September 22, 2020, with Ordinance No. 1447 and additional information presented by City staff and makes the following findings and determinations: (a) the City has made a conscientious effort to plan for specific uses within all zone districts and to anticipate conflicts between competing land uses in order to protect the public’s health, safety and welfare; and (b) for the benefit of applicants and residents of the City alike, it is critical that appropriate regulations to implement the General Plan Land Use Element objectives and policies are established within the City’s Zoning Ordinance; and (c) revisions to the City’s existing cannabis regulations are warranted to improve and clarify the regulatory framework, address the negative secondary effects that could result in the proliferation and potential concentration of cannabis businesses within existing manufacturing zones, and address the potential conflicts between competing land uses in order to protect the public’s health, safety and welfare; and (d) a revised ordinance has been prepared that consolidates standards that are applicable to all cannabis business types which were previously spread across multiple sections of the ordinance. The changes include:  Section 17.156.040 specifies the location of Cannabis Facilities as being permitted in either the Limited Manufacturing (M-1) or General Manufacturing (M-2) zoning district.  Section 17.156.060 consolidates into general provisions permits required (valid City issued Conditional Use Permit, cannabis business permit, building permit, and City issued certificate of occupancy).  Section 17.156.070 consolidates Business Permit regulations into general provisions because the requirement is applicable to all cannabis business types.  Section 17.156.130 consolidates site security into general provisions because the requirement is applicable to all cannabis business types.  Section 17.156.140 consolidates prohibited activities (consumption prohibited, alcohol, juveniles on site) into general provisions because the requirement is applicable to all cannabis business types.  Section 17.156.150 consolidates on-site signage; all standards consistent with existing ordinance for each business type. (e) the revised ordinance also proposes changes to better reflect the City’s practices, add clarity and update the ordinance, including:  Definitions (17.156.030) have been added or modified.  Site security plans for all facilities have been updated.  Eliminated requirement that accessory use (dispensaries and distribution) be limited to 50% of gross proceeds of the business.  Added clarification that delivery services are allowed in conjunction with a dispensary.  Removed reference of allowing anyone in a distribution facility except those with medical cards, qualified patients, primary caregivers, persons with identification cards, etc. The removal of text is a cleanup since distribution facilities are closed to the public.  Added language to clarify retail sales are allowed in conjunction with cultivation and/or manufacturing facilities only when a dispensary and/or distribution facility has also been approved to operate in conjunction with the cultivation facility and that sales only occur within the dispensary and/or distribution portion of the facility.  Added language to recognize outdoor cultivation is allowed within residential areas (for medical and recreational purposes).  Added clarification that cultivation is allowed in private residences consistent with State law.  Removed prohibition of cultivating cannabis in a multi-dwelling unit and the required 1000- foot buffer from schools, community centers, or parks, in order to be consistent with State law.  Removed requirement that operators submit of an annual financial report to the City. The new requirement allows operators to retain financial records for 5 years, with submittal to the City upon request. (f) the revised ordinance also proposes changes in how the program is designed centered on the addition of 17.156.050 “Limitation On Uses” and expanded operational hours for retail uses:  Modified the maximum of 5 cannabis businesses in Limited Manufacturing (M-1) zone and 5 cannabis businesses in General Manufacturing (M-2) zone, to a maximum of 10 businesses citywide within the M-1 and M-2 zones.  In order to exceed the maximum of 10 businesses, a finding of public convenience must be made by the Planning Commission and City Council (rather than the Community Development Director) as part of the consideration for a Conditional Use Permit. The public convenience finding includes consideration of whether the new facility is within 500 feet from any one existing cannabis use or 1,000 feet from any 2 cannabis uses.  Expanded the 1,000-foot buffer from sensitive receptors of schools, community centers, or parks to all types of cannabis businesses (existing ordinance only requires for cultivation).  Extended hours of operation from closing at 9:00 pm to 10:00 pm, for dispensaries an d distribution facilities consistent with hours of operation of surrounding jurisdictions (Wildomar and Riverside County). (g) the Subcommittee recommends that the City Council adopt the proposed ordinance with the modifications to the City’s cannabis regulations described above; and (h) the Subcommittee recognizes that the City’s evaluation of the impacts of cannabis facilities during the moratorium is limited by the fact that of the 19 cannabis facilities approved by the City Council with a combined operating area of approximately 197,211 SF, only seven (7) have opened with a combined area of approximately 87,347 SF; and (i) the Subcommittee recommends that City staff continue to monitor the buildout of the remaining unopened facilities to ascertain potential impacts to the surrounding business community and report back to the Subcommittee if any adverse impacts are identified. PA 2018-40 Brighter Systems PA 2018-33 IE Licensing PA 2018-37 Modern Leaf PA 2018-36 VERT PA 2019-33 Alba Systems PA 2019-78 Vista Prime PA 2020-98 SCCC Group PA 2018-37 Grant Expansion CE R E A L S T MISSION TRLCORYDON STWAITE ST LEMON ST GA R D E N S T Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GISUser Community City of Lake Elsinore East Lake District Cannabis Application Locations´0 0.070.035 Miles Prepared by: City of Lake Elsinore GIS June 22, 2021 Data Sources: County of Riverside GIS City of Lake Elsinore GIS Stateplane NAD 83 LEGEND Operational Cannabis Sites Cannabis Application Locations, Approved, Not Operational BUSINESS DISTRICT PA 2018-44 Medcare Farms PA 2020-84 Kind Delivery PA 2018-34 Syndicate PA 2018-41 Trustin Solutions PA 2018-39 Mr. Nice Guy PA 2018-38 The Healing Tree PA 2019-28 Roots 2 Harvest PA 2018-35 Trucc PA 2018-46 LECANNA PA 2019-81 Tree Haus PA 2019-31 Rahman and Associates PA 2018-45 The Highest Craft PA 2020-86 Stellar House I- 1 5SH-7410TH STCHANEY STMI N T H O R N S T FLINT S T RYA N A V E 2ND STDE X T E R A V E PALM DRFOSTER ST KEE A V E THIRD STC A M I N O D E L N O R T E STRI C K L A N D A V E SHRIER DR SILVER STLAK E S H O R E D R I-1 5 S B O N STEC H E R A V E REID ST I-1 5 N B O N I- 1 5 S B O F F I- 1 5 N B O F F POTTER Y S T CO L L I E R A V E MC BRIDE AVE CRANE STCA M B E R N A V E DAVIS STDE BRASK AVE BARKSCHAT DRLATTA AVEBROMLEY AVE HUNCO WAYMOHR STPA S A D E N A S TCENTRAL STCO O L I D G E A V E BA K E R S T TURNBULL AVE B U N K E R S T WASSON C A N Y O N R DILLINOIS ST HILL A V E MC BURNEY AVE TR E L E V E N A V E B A U M A V E S K Y L I N E D R MAIN STCAL K I N S A V E DIANA LNM O R T O N A V EBAY STBUTTERS AVEMILLER STPREVOST AVELEWIS STALLAN STADAM AVEGEDGE AVECOWELL STWALNUT A V E RIVERSIDE DR MOUNTAIN VIEWHOWLETT AVE O L E A N D E R A V E BEN E D I C T A V E HEIM AVE LINDSAY STBARBER STDE X T E R P L BAS T R O N A V E G U T K A E S A V EHEAD CIRCANYON DR HAMLET C IR EDWARDS AV E CHAMPION AVEGRANT CIRI-15 N B O N CRANE STI- 1 5 S B O F F I- 1 5 CO L L I E R A V E I-1 5 N B O F F SH - 7 4 THIRD STSource: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GISUser Community City of Lake Elsinore Business District Cannabis Application Locations´0 0.20.1 Miles Prepared by: City of Lake Elsinore GIS June 22, 2021 Data Sources: County of Riverside GIS City of Lake Elsinore GIS Stateplane NAD 83 LEGEND Operational Cannabis Sites Cannabis Application Locations, Approved, Not Operational Cannabis Applications - In Process PA 2018-40 Brighter Systems PA 2018-33 IE Licensing PA 2018-37 Modern Leaf PA 2018-36 VERT PA 2019-33 Alba Systems PA 2019-78 Vista Prime PA 2020-98 SCCC Group PA 2018-37 Grant Expansion CE R E A L S T MISSION TRLCORYDON STWAITE ST LEMON ST GA R D E N S T CO M O S T JARO DRJO ANN CTETHEN RD VALENCIA STCHRISTOPHER LNSource: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GISUser Community ´0 0.10.05 Miles Prepared by: City of Lake Elsinore GIS June 22, 2021 Data Sources: County of Riverside GIS City of Lake Elsinore GIS Stateplane NAD 83 LEGEND Operational Cannabis Sites Cannabis Application Locations, Approved, Not Operational 500-Foot Radius 1,000-Foot Radius City of Lake Elsinore East Lake District Cannabis Application Locations - With 500 and 1,000 Radiii BUSINESS DISTRICT %&'(15 PA 2018-44 Medcare Farms PA 2020-84 Kind Delivery PA 2018-34 Syndicate PA 2018-41 Trustin Solutions PA 2018-39 Mr. Nice Guy PA 2018-38 The Healing Tree PA 2019-28 Roots 2 Harvest PA 2018-35 Trucc PA 2018-46 LECANNA PA 2019-81 Tree Haus PA 2019-31 Rahman and Associates PA 2018-45 The Highest Craft PA 2020-86 Stellar House I- 1 5 FLINT S TSH-7410TH STCHANEY STRYA N A V E MI N T H O R N S T POTTER Y S T LAK E S H O R E D R DE X T E R A V E 2ND STPOE STTHIRD STC A M I N O D E L N O R T E SUMNER A V E SHRIER DR PALM DRFOSTER ST KEE A V E DAVIS STSTRI C K L A N D A V E MOHR STI-15 S B O N STECHER AVE MAIN STSILVER STWASSON CANYON RDMC BRIDE AVE LEWIS STDE BRASK AVE RILEY STHEALD A V E CA M B E R N A V E BROMLEY AVE ELSINORE HILLS RDREID ST I-15 N B O N I- 1 5 S B O F FILLINOIS ST I- 1 5 N B O F F CO L L I E R A V ECRANE STTURNBULL AVE LANGSTAFF STBAR K S C H A T D R LOWELL STLATTA AVESPRING STDIANA LNADAM AVEHUNCO WAYPA S A D E N A S T TOWNSEND STCO O L I D G E A V E RIVERSIDE DR SCRIVENER STB U N K E R S T MATICH STHILL A V E MC BURNEY A V E TR E L E V E N A V E ELLIS STB A U M A V E SK Y L I N E D R CA L K I N S A V EDEMPSEY AVEHER B E R T S T WHITEHALL STMORTON AVEBAY ST BUTTERS AVEPREVO S T A V E BEN E D I C T A V E ALLAN STGEDGE AVECOWELL STWALNUT A V E SUNNY SLOPE A V E GENTZ ST VIA GARDA HEIM AVE LINDSAY STBARBER STB A K E R S T HEAD CIRHAMLET CIRCHAMPION AVEGRANT CIRI-1 5 BA K E R S T I-15 N B O N SILVER STCO L L I E R A V ECRANE STI- 1 5 S B O F F I-1 5 N B O F F SH - 7 4 SU M N E R A V E Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GISUser Community ´0 0.250.125 Miles Prepared by: City of Lake Elsinore GIS June 22, 2021 Data Sources: County of Riverside GIS City of Lake Elsinore GIS Stateplane NAD 83 LEGEND Operational Cannabis Sites Cannabis Application Locations, Approved, Not Operational Cannabis Applications - In Process Ortega_High_School 500-Foot Radius 1,000-Foot Radius City of Lake Elsinore Business District Cannabis Application Locations - With 500 and 1,000 Combined Radiii