Cannabis Information and Application Process

Workshop

City of Banning99 E. Ramsey StreetBanning, CA 92220

January 23, 20196:00 p.m.

Question Cards are available near the entrance. Please fill out if you have a question

Introductions• City Manager – Doug Schulze• Deputy City Manager – Rochelle Clayton• Interim Community Development Director –

Maryann Marks• Contract Planner - Cannabis Contact –Mark

de Manincor -• City Attorney’s Office– Maricela Marroquin

951-922-3160

Agenda Overview• City Background on Cannabis Measures &

Ordinances/Chapters • City Website – Dedicated Cannabis Page• Location requirements for cannabis businesses• Review 5 step process & required applications• Provide information on the fees and procedures• Provide information on the retailer lottery

Cannabis Ballot Measures• Measure N, a measure imposing a general tax on commercial

cannabis cultivation, manufacturing, and testing laboratory facilities.

1. Established an annual tax on commercial cannabis cultivation facilities in the amount of $15 per square foot of indoor area used to grow cannabis (“Canopy Space”). The City Council may increase this tax up to $25 per square foot of Canopy Space without further voter approval.

2. Established an annual tax on cannabis manufacturing and testing laboratory facilities in an amount equal to ten percent (10%) of the facility’s gross receipts.

• Measure O, a measure imposing a general tax on cannabis retail businesses.

3. Established an annual tax in an amount equal to ten percent (10%) of the cannabis retailer’s gross receipts. The City Council may increase this tax up to fifteen percent (15%) of the retailer’s gross receipts without further voter approval.

Cannabis Information

http://www.ci.banning.ca.us/539/Cannabis-Information

http://banning.ca.us/

• Manufacturing, Testing, Cultivation Regulatory Permit

• Manufacturing, Testing, Cultivation Conditional Use Permit (C.U.P.)

• Retail Sales Regulatory Permit• Retail Sales Conditional Use Permit

(C.U.P.)• Regulatory Process & Lottery• Schedule• Fees

Two Types of Businesses Commercial Cannabis Business (No limitation on number)

1. Cultivation

2. Level 1 Manufacturing

3.Testing laboratory facilities

Retail Cannabis Business (Limited to 3)1. Storefront that also allows deliveries

2.Delivery only businesses with no storefront sales

• Limited to Industrial zoning districts • 600 feet from

• residential zone• park• daycare center• youth center• public or private school (K-12 in

existence at time of CUP issuance).

Commercial Cannabis Zoning

• Highway Serving Commercial zoning district • 600 feet from

• day care center • youth center• public or private school K-12 • park

• 200 feet from • residential zoning district

Retail Cannabis Zoning

Cannabis ZoningCheck surrounding Zoning prior to entering into any agreements

Allowed in Banning Industrial Zones (I):• Testing laboratory: A laboratory that offers or performs tests of

cannabis goods. • Manufacturing Level 1: For sites that manufacture cannabis

products using nonvolatile solvents, or no solvents. • Medium Indoor: An indoor cultivation site of between 10,001 and

22,000 square feet of total canopy.

Testing, Manufacturing and, Cultivation Licenses

10

• Retailer: Sells cannabis goods to customers at its premises or by delivery.

• Retailer (nonstorefront): Sells and delivers cannabis goods to customers, but the licensed premises is not open to the public.

• Retailer must be a minimum of 800 square feet in size.• The Bureau of Cannabis Control has new regulations allowing

deliveries throughout the state.

Retailer Licenses11

Five Step Process1. Apply for a Cannabis License from the State Licensing Authority

– California state law requires that all commercial cannabis businesses hold a state license in order to operate in the commercial market.

2. Cannabis Business Regulatory Permit– Commercial– Retail

3. Cannabis Business Conditional Use Permit– Commercial– Retail

4. Cannabis Business License5. Obtain a State License

Local Fees and TaxesCannabis Business Regulatory Permit1. Commercial $4,700 (non-refundable)2. Retail $5,000 (non-refundable)

Cannabis Conditional Use Permit1. Commercial $10,000 (deposit based fee structure)2. Retail $10,000 (deposit based fee structure)

Business License (annual)1. Based on the number of employees

a) 1-5=$50, 6-10=$110, 11-15=$165, 16-20=$220, 21-25=$275, 26+persons=$330

• Retail is limited to one business for every 10,000 in population– Only three businesses will be permitted

• Eligible businesses will be selected through a lottery.

Limits on Cannabis Retailers14

The Regulatory Application Process

• The applications will be posted on the City website and available at the planning counter.

• All applications will be accepted by appointment only.– 951-922-3123

• During the appointment the application will be reviewed for completeness.

• All supporting documents and fees are required for acceptance.

• Incomplete applications will be reviewed and returned identifying items necessary for resubmittal.

951-922-3123

• Cannabis regulatory permit applications available beginning January 23, 2019.

• Appointments for Questions January 24, through February 15.

• Applications accepted 8 to 5, January 28, through February 22 by appointment only

• Applications will be processed from February 11 through February 22.

• Applicants will be notified by mail of their eligibility for the lottery by March 1st.

Regulatory Permit Schedule16

951-922-3160

For Commercial Cannabis Businesses

17

• For cannabis cultivation, manufacturing, and testing laboratory facilities only, the City Manager in consultation with the Chief of Police will issue or deny a cannabis regulatory permit within 45 days of receipt of a completed application.

• By March 1, 2019, all applicants with accepted applications will be notified of lottery eligibility

• Any applicant determined ineligible may file an appeal with the Community Development Department between March 4 and March 8.

• Any appeals will be heard during the week of March 11 thru March 15.

• If no appeals - the public lottery will be held on March 13, 2019.

• If any appeals are submitted, the public lottery will be held on March 19, 2019 (or as determined by the City Manager)

• These dates are subject to change

Retailer Lottery Schedule18

The Lottery(For Retail Businesses Only)

• The lottery will be conducted as follows:– Each eligible applicant will receive a lottery ball, with a unique number.– The lottery balls, in the lottery machine shall be pulled at random until all balls

are pulled. – The first three applicants balls that are pulled will be issued a cannabis

regulatory permit and will be eligible to apply for a cannabis conditional use permit (CUP).

– The remaining applicants will be placed on a waiting list in the order their ball is pulled.

– If any of the first three applicants withdraws or is denied a CUP within 1 year, the first applicant on the waiting list will be contacted for reevaluation and issuance of the regulatory permit.

– The process will continue, in order, until three cannabis conditional use permits have been issued.

The Regulatory Application

The Regulatory Application

The Regulatory ApplicationChecklist

The application shall include the following information in accordance with Banning Municipal Code Sections 5.33.030 F and 5.35.040 D. This information shall be submitted with the application, as a separate document.Description Included in the

Application?

1. Payment of the Cannabis Regulatory Permit Application Fee. Yes No

2. The type of cannabis business the applicant seeks to operate in the City, a description of the commercial cannabis activity that will be conducted on the premises, and a general description of the products that will be sold, manufactured, cultivated on the premises.

Yes No

3. A description of the statutory entity or business form that will serve as the legal structure for the cannabis business; a copy of its formation and organizing documents, including, but not limited to, articles of association, bylaws, partnership agreement, operating agreement, and fictitious business name statement; and the name and address of its agent for purposes of service of process.

Yes No

4. A list of every fictitious business name the cannabis business is operating under.

Yes No

5. The legal name of the applicant. Yes No

6. The current name and primary and secondary telephone numbers and email addresses of at least one twenty-four (24) hour on-call manager to address and resolve complaints and to respond to operating problems or concerns associated with the cannabis business

Yes No

7. If applicable, the business trade name (“DBA”) of the cannabis business.

Yes No

8. A list of the license types and the license numbers issued by any licensing authority to the applicant, or any other owner of the cannabis business, including the date the license was issued, the date the license will terminate and the licensing authority that issued the license.

Yes No

9. Has the applicant, or any owners of the cannabis business, been denied a license or had a license suspended or revoked by any licensing authority? The applicant shall identify the type of license applied for, the name of the licensing authority that denied the application, and the date of denial, suspension or revocation.

Yes No

10. Premise Information

a. The assessor’s parcel number

b. The physical address

c. The telephone number

d. The website address and email address of the cannabis business.

(If the cannabis business will be conducted on a lot that is vacant at the time that the application is submitted, then the applicant shall amend the application at such time that a physical address and telephone number is issued for the cannabis business.)

Yes

Yes

Yes

Yes

No

No

No

No

11. The cannabis business federal employer identification number.

Yes No

Includes all business and applicant information which is included on the application:• Type of business and description.

• Owner/Business entity Information.

• 24 hour on-call Contact.

• Premise information.

Regulatory ApplicationAttachments

1. List of everyone that is authorized to carry concealed weapons.

2. If applicant is landowner, a copy of the property title or deed.

3. Property owner consent for applicant to operate a cannabis business on the property (i.e. retailer, cultivation, manufacturing, testing laboratory). (Attachment –pg 8)

4. A copy of the following State licensing application to engage in commercial cannabis activity in the City:

– Cannabis retailer or testing laboratory - Bureau of Cannabis Control.– Cannabis cultivator - California Department of Food and Agriculture.– Cannabis manufacturer - California Department of Public Health.

5. Copy of receipt for DOC & NCIC fingerprint background check.

951-922-3160

The Regulatory ApplicationAttachments-contd.

6. Evidence of compliance with location restrictions: – Business and Professions Code section 26054.– Zoning restrictions set forth in Title 17 of the Banning Municipal Code.

7. Address of other premises owned or operated by applicant or any owner of a cannabis business.

8. All owners, applicants individual information sheets.9. A premises diagram per Title 16 of the CA Code of Regs. § 5006.10.Proposed hours of operation.11.Signed Authorization and Consent form. (Attachment –pg 9)12.Signed Hold Harmless Agreement. (Attachment –pg 9)13.Signed Applicant’s certification. (Attachment –pg 2)

951-922-3160

Commercial Businesses1. Security plan prepared by a licensed security company or individual 2. Plan describing air treatment system or odor elimination method 3. For cannabis cultivation facilities:

– a site plan & floor plan by registered civil engineer - identifying a minimum of 10,001 sf canopy space & maximum of 22,000 sf in size, with indoor only cultivation.

4. For cannabis manufacturing facilities:1. Description of manufacturing activity; 2. Type of activity that will be conducted (extraction, infusion, packaging, labeling);3. Description of extraction and/or infusion methods; and 4. Types of products that will be manufactured, packaged and labeled; 5. Statement that volatile solvents will not be used.

5. Cannabis laboratory testing facilities:1. Proof of ISO/IEC 17025 accreditation by an accrediting body.

Conditional Use Permit• To apply for a Conditional Use Permit, use the City of Banning

Uniform Application and check the box, Cannabis Conditional Use Permit.

– On the City of Banning Web Site and at City Hall.

• Fill out the application and provide the additional information required.

– Additional information requirements are included on the attachments.• Chapter 17.53 for Commercial Cannabis Businesses.• Chapter 17.54 for Retail Cannabis Businesses.

• Submit the application to the Community Development Department with a check for $10,000.

• Cannabis CUP requires approval from both the Planning Commission and City Council.

• The process takes approximately 4-8 months, determined by completeness of the submittal package.

CUP Additional Requirements• Additional information requirements on handout:

– Site plan w/ADA Compliance – Floor Plan w/ADA Compliance – Business Plan– Water Source Information– Electricity Demand– Neighborhood Context Map– Security Plan– Lighting Plan

The End

Questions or Comments?

http://www.ci.banning.ca.us/539/Cannabis-Information

http://banning.ca.us/