§ 10-3.704. Application and Permit Procedures.

(a)

All commercial cannabis uses must obtain a City business license, a City Commercial Cannabis Permit, and a state license prior to commencing commercial operations. Additional permits or entitlements may be required depending on construction or improvements necessary to a building or site.

(b)

The total number of Commercial Cannabis Permits granted for each state license type may be established by City Council Resolution or within this chapter.

(c)

The City may refuse to issue any discretionary or ministerial permit, license, variance or other entitlement, which is sought pursuant to this article, including zoning clearance for a building permit, where the property upon which the use or structure is proposed is in violation of the Modesto Municipal Code, or any other local, state or federal law.

(d)

No property interest, vested right, or entitlement to receive a future permit to operate a commercial cannabis use shall ever inure to the benefit of such permit holder as such permits are revocable. Permits issued pursuant to this article are not transferable to another individual or as to another physical location without City approval.

(e)

Operator/Permit Holder Qualifications. All Cannabis Permit holders and cannabis business operators must meet the following minimum qualifications. The City reserves the right to require additional qualifications through the Cannabis Permit application procedure.

(1)

Commercial Cannabis Permit holders and business operators must be twenty-one (21) years of age or older.

(2)

Commercial Cannabis Permit holders and business operators shall be subject to background search by the California Department of Justice and local law enforcement.

(3)

Permits for commercial cannabis uses shall not be permitted for operators with felony convictions, as specified in subdivision (c) of Section 667.5 of the Penal Code, and subdivision (c) of Section 1192.7 of the Penal Code. Permits for commercial cannabis uses shall not be permitted for operators with criminal convictions that substantially relate to the qualifications, functions, or duties of the business or profession, including a felony conviction involving fraud, deceit, or embezzlement or a criminal conviction for the sale or provision of illegal controlled substances to a minor.

(4)

Commercial Cannabis Permit holders must meet the minimum qualifications established by the state for the applicable state license type.

(f)

Commercial Cannabis Permits.

(1)

Commercial Cannabis Permits shall require City Council approval or the approval of a Cannabis Permit Review Committee made up of three (3) City Council members appointed by a majority of the entire Council. Permit applicants must meet all operator and application requirements to be considered for permit issuance by the City Council or Cannabis Permit Review Committee.

(2)

City staff shall provide notice in accordance with Section 10-9.201 at least ten (10) days prior to the City Council's or Cannabis Permit Review Committee's consideration of the permit.

(3)

Findings for denial of permit. A commercial cannabis permit may be denied if any of the following findings are made:

(i)

The application does not meet all requirements of this article.

(ii)

Approval would very likely result in harm to public safety, health, or welfare.

(iii)

Potential negative impacts of the use cannot be mitigated with conditions or through this article's requirements.

(4)

Appeals.

(i)

If a Cannabis Permit Review Committee is appointed, applicants may appeal its decisions on Cannabis Permits to the full City Council in writing in accordance with Section 10-9.302. The City Council's decision on such appeals shall be final.

(ii)

If no Cannabis Permit Review Committee is appointed, City Council decisions on Cannabis Permits shall be final.

(5)

Commercial Cannabis Permits shall be valid for two (2) years, although the City may require an annual permit fee.

(6)

No Commercial Cannabis Permit holder may commence commercial operations until the necessary state license(s) is obtained. "Commercial operations" does not include tenant improvements or other necessary pre-operational activities. "Commercial Operations" means participating in commercial cannabis activities which require a state license. Commercial Cannabis Permits may contain additional conditions.

(7)

Commercial Cannabis Permit fees shall be set by Resolution of the City Council.

(8)

Conditions of approval may be placed on commercial cannabis permits, including a requirement to comply with design guidelines related to cannabis uses.

(g)

Cannabis Permit Application Procedure.

(1)

The City Manager, or his or her designee, may design application forms and procedures specific to each permitted license type, including online permitting, and require inspections of proposed facilities before issuing a permit under this article. Such procedures may include a request for proposal (RFP) process for certain license types where deemed necessary.

(2)

Applications shall be reviewed by City staff or qualified consultants, as designated by the City Manager. Such review may include a scoring or ranking system. Applications failing to meet minimum qualifications or scoring requirements may not be submitted to the City Council or Cannabis Permit Review Committee for consideration.

(3)

Applicants providing false or misleading information in the permitting process will result in rejection of the application and/or nullification or revocation of any issued permit.

(4)

Applications shall require, at a minimum, the following:

(i)

All necessary information related to the business its operators, including names, birth dates, addresses, social security or tax identification numbers, relevant criminal history, relevant work history, names of businesses owned or operated by the applicant within the last ten (10) years, investor and/or partner information, and APN number of the parcel upon which the business will be located. Such private information will be exempt from disclosure to the public, pursuant to applicable law, to protect an individual's privacy interests and public health and safety.

(ii)

Written (and notarized) permission from the property owner and/or landlord to operate a commercial cannabis use on the site.

(iii)

Operating Plan.

(iv)

Security Plan as required under Section 10-3.706.

(v)

Site Plans.

(vi)

Air Quality Information. When deemed necessary by City staff for purposes of compliance with CEQA or state cannabis regulations, the applicant shall provide a calculation of the businesses anticipated emissions of air pollutants. The applicant shall also provide assurance that the business will comply with all Best Management Practices established by the San Joaquin Valley Air Pollution Control District ("SJVAPCD"). No Cannabis Permit shall be issued to any business that would exceed the thresholds of significance established by the SJVAPCD for evaluating air quality impacts under the California Environmental Quality Act for either operation or construction. Applicants are encouraged to design their project so as to minimize or avoid air pollutant emissions.

(vii)

Greenhouse Gas Emissions. When deemed necessary by City staff for purposes of compliance with CEQA, the applicant shall provide calculations of the anticipated greenhouse gas emissions for the operation of the business and, where applicable, the operation of the business. The applicant shall further demonstrate compliance with any applicable state, regional, or local plan for the reduction of greenhouse gas emissions. No cannabis permit shall be granted for any business that would violate any state, regional, or local plan for the reduction of greenhouse gases, nor shall any cannabis permit be issued where the construction and/or operation of the business would exceed any applicable threshold of significance for greenhouse gas emissions under the California Environmental Quality Act.

(viii)

Hazardous Materials Information. To the extent that the applicant intends to use any hazardous materials in its operations, the applicant shall provide a hazardous materials management plan that complies with all federal, state, and local requirements for management of such substances. "Hazardous materials" includes any hazardous substance regulated by any federal, state, or local laws or regulations intended to protect human health or the environment from exposure to such substances.

(ix)

Water Supply Information. When deemed necessary by the City Engineer, the applicant shall demonstrate to the satisfaction of the City Engineer that sufficient water supply exists for the use.

(x)

Wastewater Information. When deemed necessary by the City Engineer, the applicant shall demonstrate to the satisfaction of the City Engineer that sufficient wastewater capacity exists for the proposed use.

(xi)

Signed Affidavit. The property owner and applicant, if other than the property owner, shall sign the application and shall include affidavits agreeing to abide by and conform to the conditions of the permit and all provisions of the Modesto Municipal Code pertaining to the establishment and operation of the commercial cannabis use, including, but not limited to, the provisions of this article. The affidavit(s) shall acknowledge that the approval of the Commercial Cannabis Permit shall, in no way, permit any activity contrary to the Modesto Municipal Code, or any activity which is in violation of any applicable laws.

(xii)

Signed indemnity provision, as established in Section 10-3.711(e) of this article.

(Ord. No. 3684-C.S., § 4, effective 2-15-18)