This chapter establishes the regulations for cannabis, to the extent allowed by state law, in a way that will minimize the impacts on the community and help pay for costs associated with the usage of a controlled substance. This chapter does not authorize or permit any conduct not allowed by state law.
(Ord. 443 § 1, 2016; Ord. 458 § 2, 2021)
A. 
The intent of this chapter is to regulate the cultivation, processing and dispensing of cannabis in a manner that protects the health, safety and welfare of the community.
B. 
This chapter is not intended to interfere with a qualified patient or primary caregiver's right to medical marijuana, as provided for in California Health and Safety Code Section 11362, nor criminalize the same. Medical marijuana for personal use shall be in conformance with the standards set forth in this title.
(Ord. 443 § 1, 2016; Ord. 458 § 2, 2021)
The owner and permittee of a cannabis business shall release the city of Lemon Grove, and its agents, officers, elected officials, and employees from any injuries, damages, or liabilities of any kind that result from any arrest or prosecution of cannabis business owners, operators, employees, primary caregiver or qualified patients for violation of state or federal laws in a form satisfactory to the manager of the community development department. In addition, the owner and permittee of a cannabis business shall indemnify and hold harmless the city of Lemon Grove and its agents, officers, elected officials, and employees for any claims, damages, or injuries brought by adjacent or nearby property owners or other third parties due to the operations at the cannabis business, and for any claims brought by any of their customers or qualified patients for problems, injuries, damages, or liabilities of any kind that may arise from the cannabis business provided at the in a form satisfactory to the manager of the community development department.
(Ord. 443 § 1, 2016; Ord. 458 § 2, 2021)
Cannabis businesses which dispense, deliver, process, manufacture, distribute, and cultivate cannabis shall be required to obtain a conditional use permit consistent with Section 17.28.050 prior to operation. The fact that an applicant possesses other types of state or city permits or licenses does not exempt the applicant from the requirement of obtaining a conditional use permit to operate a cannabis business.
(Ord. 443 § 1, 2016; Ord. 458 § 2, 2021)
The following words and phrases are italicized throughout this title and shall have the meanings found in this section.
"Cannabis"
means all parts of the plant Cannabis sativa Linnaeus, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include Industrial hemp, as defined in Section 11018.5 of the California Health and Safety Code, unless otherwise specified; or the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or other product.
"Cannabis accessories"
means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body.
"Cannabis business"
means any business activity involving cannabis or industrial hemp, including, but not limited to, cultivating, transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, testing, dispensing, retailing and wholesaling of cannabis, cannabis products, industrial hemp, industrial hemp products or of ancillary products and accessories, whether or not carried on for gain or profit.
"Cannabis product(s)"
means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or tropical product containing cannabis or concentrated cannabis and/or other ingredients. "Cannabis product(s)" also means cannabis products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medicinal cannabis products.
"Cultivation"
means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
"Delivery"
means the commercial transfer of cannabis or cannabis products to a customer by a dispensary or its authorized agents. "Delivery" includes the use by a dispensary of any technology platform owned and controlled by the retailer, or independently licensed under California law, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of cannabis or cannabis products.
"Director"
means a corporate officer, corporate board member, or employee with supervisory responsibilities of an authorized dispensary business that dispenses cannabis.
"Dispensary"
means a facility where cannabis, cannabis accessories, or cannabis products are offered, either individually or in any combination, for retail sale.
"Distribution"
means the procurement, sale, and transport of cannabis and cannabis products between licensed entities for commercial use purposes.
"Licensed physician"
means a person educated, clinically experienced, and licensed by the Medical Board of California, or the Osteopathic Medical Board of California to practice medicine.
"Manufacturer"
means the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or re-packages cannabis or cannabis products or labels or relabels its container.
"Medical marijuana" or "medical marijuana product"
means cannabis or cannabis product intended to be used, sold or sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, for a medical marijuana patient in California who possesses a physician's recommendation, or a medical marijuana identification card issued pursuant to Health and Safety Code Section 11362.71. Medical marijuana does not include recreational use.
"Medical marijuana identification card (MMIC)."
A document provided by the San Diego County medical marijuana identification card (MMIC) program pursuant to the State Department of Health Services that identifies a qualified patient authorized to engage in the medical use of marijuana and the person's designated primary caregiver, if any as per California Health and Safety Code Section 11362.7, and as may be amended.
"Microbusiness"
means a cannabis business licensed by the state of California to act as three or more of the following at the same licensed premises: a distributor, dispensary, manufacturer, or cultivator.
"Non-storefront retailer"
means a licensed retailer that conducts retail sales exclusively by delivery.
"Operations manual"
a manual that each dispensary shall develop, implement and maintain on the premises which contains requirements outlined in Section 17.32.090(C)(6).
"Person with an identification card"
means an individual who is a qualified patient who has applied for and received a valid identification card pursuant to this chapter and the California Health and Safety Code Section 11362.7, and as may be amended.
"Premises"
means a lot, parcel, tract or plot of land, together with the buildings, structures and appurtenances thereon.
"Primary caregiver"
means the individual or individuals designated by a qualified patient who has consistently assumed responsibility for the housing, health or safety of that qualified patient. As used herein, a primary caregiver may only grow, administer, transport, or engage in the activities regulated hereunder on behalf of the qualified patient for whom they have consistently assumed responsibility for the housing, health or safety of that qualified patient. A primary caregiver may engage in other activities as specifically enumerated herein.
"Protected uses"
are for purposes of computing distance separations from any public or private pre-schools and schools, licensed daycare facilities, any park or playground, alcohol and substance abuse treatment centers.
"Qualified patient"
means a person who has obtained a written recommendation or approval from a licensed physician to use cannabis for personal medical purposes.
"Regulated uses"
are for purposes of computing distance separations for cannabis businesses (with or without accessory cultivation uses) but excluding individual residential cultivation sites operated by qualified patients or primary caregivers and located solely in single-family residential zones.
"Research"
means the conduct of investigational activities that require cannabis and/or cannabis accessories in order to investigate opportunities for new cannabis products and/or develop new cannabis products.
(Ord. 443 § 1, 2016; Ord. 458 § 2, 2021)
The following information must be submitted with an application to request medical marijuana use in conformance to this section and the city of Lemon Grove. All documents which relate to the general provisions and the requirements listed in the submittal requirements must be included in the operations manual.
A. 
Physician/Patient Confidentiality. All processes and reviews conducted pursuant to this chapter shall preserve to the maximum extent possible all legal protection and privileges. Disclosure of any member information shall not be deemed a waiver of confidentiality of those records under any provision of state law.
B. 
Medical Marijuana Cultivation Permitted by Compassionate Use Act. All cultivation of marijuana for medical purposes shall not be declared unlawful by the city of Lemon Grove when said cultivation is conducted solely for the personal medical purposes of qualified patients as permitted by the state of California and as outlined in the following sections of this chapter.
(Ord. 443 § 1, 2016; Ord. 458 § 2, 2021)
In addition to the findings required for the granting of a conditional use permit by Section 17.28.050 of this title or minor use permit by Section 17.28.052 of this title, the decision making authority shall consider the following:
A. 
Whether the approval of the proposed use will violate the minimum requirements set forth in this chapter for distance separations between establishments which dispense, process or cultivate cannabis; and separations between establishments which dispense, process or cultivate cannabis and other specific regulated or protected land uses as set forth in this chapter.
B. 
Whether the proposed use complies with Title 17 of the Lemon Grove Municipal Code.
(Ord. 443 § 1, 2016; Ord. 458 § 2, 2021)
A. 
Zones. Dispensaries may be established by conditional use permit in the heavy commercial (HC), limited commercial (LC), general commercial (GC) and light industrial (LI) zones and subject to the distance requirements. Dispensaries are prohibited in mixed-use zones (Downtown Village Specific Plan and Central Commercial) and all residential zones (RLM, RL, RM, RMH).
B. 
Distance Requirements. An application may be submitted provided the proposed facility meets the required distance measurements. For purposes of measurements, all dispensaries are considered regulated uses and public parks as defined at Section 12.20.030 of Lemon Grove Municipal Code, playgrounds as defined at Section 18.28.020(V), of the Lemon Grove Municipal Code, licensed day care facilities as defined at Section 17.08.030 of Lemon Grove Municipal Code, schools as defined at California Health and Safety Code Section 11362.768, subdivision (h), and alcohol and substance abuse treatment centers are considered protected uses. Measurement is made between the closest property lines of the premises in which the regulated uses and protected uses are located. A regulated use must not be:
1. 
Within one thousand feet of any other regulated use which is located either inside or outside the jurisdiction of the city;
2. 
Within one thousand feet from any protected use which is located either inside or outside the jurisdiction of the city.
The measurement of distance between uses will take into account natural topographical barriers and constructed barriers such as freeways or flood control channels that would impede direct physical access between the uses. In such cases, the separation distance shall be measured as the most direct route around the barrier in a manner that establishes direct access.
C. 
Standards.
1. 
Background Check Required for Directors and Employees. The director and employees of a dispensary must obtain a background check through the California Department of Justice or the San Diego County sheriff's department prior to employment. Directors convicted of a serious felony, as defined in California Penal Code Section 1192.7, subdivision (c), and Health and Safety Code Section 11359 (Possession for sale) within the previous ten years shall not be eligible for a license. Other potential employees and volunteers convicted of the crimes identified in this section in the previous five years are ineligible for employment or participation. If during employment with the dispensary, a director or employee is convicted of a crime identified in this section shall be immediately dismissed from employment or required to resign as a corporate board member or officer. For purposes of this section, a conviction in another state that would have been a conviction equivalent under California law to those convictions specified in this section will disqualify the person from employment or volunteering at the dispensary.
2. 
Security Personnel Required. Dispensaries shall have at least one uniformed security guard on duty during operating hours that possess a valid Department of Consumer Affairs "Security Guard Card."
3. 
Community Relations Liaison Required. Dispensaries shall designate a community relations liaison (liaison) who shall be at least twenty-one years of age. The liaison may also be the director of the dispensary. To address community complaints or operational problems with the dispensaries, the individual designated as the community relations liaison shall provide his or her name, phone number and email address to the following:
a. 
Lemon Grove city manager;
b. 
San Diego County sheriff's department personnel supervising law enforcement activity in Lemon Grove;
c. 
All neighbors within one hundred feet of the dispensary.
4. 
Inspection of Premises. City code enforcement officers, San Diego sheriff's department staff, and any other employee of the city requesting admission for the purpose of determining compliance with the standards set forth in this section shall be given access to the premises. City and sheriff staff shall not retain information pertaining to individual patient records viewed during an inspection, and information related to individual patients shall not be made public. Inspectors will give reasonable notice of a scheduled inspection. Unannounced inspections of a dispensary may occur if city or sheriff's department staff have probable cause that the dispensary is violating the law.
5. 
Inspection Requirements. In order to facilitate verification that a dispensary operates pursuant to state and local laws, the following records must be maintained at the premises at all times and available for inspection by city code enforcement officers, San Diego sheriff's department staff, and any other employee of the city:
a. 
Client Records. The dispensary shall keep a record of its medical marijuana clients. The record shall include the following and shall be maintained for a two-year period:
i. 
Qualified patient member's name, name of primary caregiver when appropriate, and name of licensed physician recommending use of medical marijuana for the member.
b. 
Medical Marijuana Records. Dispensary shall keep a record of its medical marijuana transactions. The following records shall be maintained for a two-year period and labeling shall occur as specified:
i. 
A record identifying the source or sources of all medical marijuana currently on the premises or that has been on the premises during the two-year period preceding the current date. The record shall include the name of the cultivator or manufacturer and the address of the cultivation or manufacturing location.
ii. 
All medical marijuana at the premises must at all times be physically labeled with information that will allow for identification of the source of the medical marijuana.
iii. 
All medical marijuana at the premises shall be physically labeled with the monetary amount to be charged.
c. 
Financial Records. Dispensary shall maintain records of all transactions involving money and/or marijuana occurring at the premises. Records shall be maintained for a two-year period preceding the current date.
d. 
Employee Records. Dispensary shall maintain a record of each employee/volunteer and director. The record shall include name and background check verification. Records shall be maintained for a two-year period following the end of an employee's employment or director's relationship with the dispensary.
6. 
Operations Manual. The application for a conditional use permit shall include a detailed operations manual including, but not necessarily limited to, the following information:
a. 
Authorization for the city, its agents and employees, to seek verification of the information contained within the application;
b. 
A description of the staff screening process including appropriate background checks;
c. 
The hours and days of the week the dispensary will be open;
d. 
Text and graphic materials showing the site, floor plan and facilities of the dispensary. The material shall also show adjacent structures and land use;
e. 
A description of the security measures located on the premises, including, but not limited to, lighting, alarms, and automatic law enforcement notification;
f. 
A description of the screening, registration and validation process for qualified patients;
g. 
A description of qualified patient records acquisition and retention procedures;
h. 
The process for tracking medical marijuana quantities and inventory controls employed, including the source of medical marijuana (on-site cultivation, processing, or plant material, or processed products, received from outside sources);
i. 
Procedures to ensure accurate record keeping, including protocols to ensure that quantities purchased do not suggest re-distribution;
j. 
Other information required by the manager of the community services department.
7. 
Operating Standards. Dispensaries shall comply with all of the following operating standards. In addition to these standards, the dispensaries shall comply at all times with conditions outlined in the approved conditional use permit and the operational manual.
a. 
Dispensing cannabis to an individual more than once a day is prohibited;
b. 
Dispensaries shall only dispense medical marijuana to an individual qualified patient or primary caregiver who has a valid, verified licensed physician's recommendation, and if appropriate, a valid primary caregiver designation. The dispensary shall verify that the licensed physician's recommendation is current and valid;
c. 
On-site evaluation by a licensed physician for the purposes of obtaining a qualified status is prohibited;
d. 
Dispensaries shall display the client rules and/or regulations in a conspicuous place that is readily seen by all persons entering the dispensary. The client rules and/or regulations shall include, but are not limited to:
i. 
Each building entrance to a dispensary shall be clearly and legibly posted with a notice indicating that smoking, ingesting or consuming cannabis on the premises or in the vicinity of the dispensary is prohibited unless specifically authorized within the governing conditional use permit,
ii. 
The building entrance to a dispensary shall be clearly and legibly posted with a notice indicating criteria for entering the premises,
iii. 
The hours of operation for an authorized dispensary shall be limited to between six a.m. to ten p.m. or as specified within the conditional use permit,
iv. 
Dispensaries shall not permit the use or consumption of cannabis on site unless specifically authorized under the conditional use permit,
v. 
Dispensaries shall not permit the on-site display of unprocessed cannabis plants or representations of cannabis plants in any areas visible to the public,
vi. 
All signage for dispensaries shall require a sign permit from the city prior to installation. Signage shall not include any terminology (including slang) or symbols for cannabis,
vii. 
Dispensaries shall only permit the distribution of cannabis plant material and cannabis manufactured products from licensed sources as allowed by the approved conditional use permit;
e. 
Dispensaries shall maintain on the premises an on-site training curriculum capable of meeting employee, agents and volunteer training needs. The minimum training curriculum shall include professional conduct, ethics, and state and federal laws regarding patient confidentiality; specific procedural instructions for responding to an emergency, including robbery or violent incident.
f. 
Dispensaries shall maintain all necessary permits, and pay all appropriate taxes. Dispensaries shall also provide invoices to cultivators and manufacturers to ensure tax liability responsibility;
g. 
Dispensaries shall implement procedures as outlined in their approved operations manual;
h. 
Dispensaries shall submit an "annual performance review report" for review and approval by the community development department. The "annual performance review report" is intended to identify effectiveness of the approved conditional use permit, operations manual, and conditions of approval, as well as any proposed modification to procedures as deemed necessary. The manager of the community development department may review and approve amendments to the approved "operations manual"; and the frequency of the "annual performance review report." Cannabis cultivation and dispensing monitoring review fees pursuant to the current Master Fee Schedule shall accompany the "annual performance review report" for costs associated with the review and approval of the report;
i. 
Dispensaries shall maintain twenty-four-hour recorded video surveillance of the premises. Recordings shall be retained for ninety days for inspection by city staff. City staff must provide valid cause for viewing video surveillance. City staff must ensure that patient privacy is safeguarded. Video surveillance will not be shared with law enforcement except when formally requested as part of a law enforcement investigation directly involving the dispensary;
j. 
Sales of alcoholic beverages are prohibited;
k. 
Sales of tobacco and tobacco products are prohibited;
l. 
Sales of drug paraphernalia are prohibited;
m. 
The location of the dispensary shall include the installation of a centrally monitored alarm system;
n. 
Lighting shall be installed to adequately light the exterior and interior of the dispensary premises while in conformance with Section 17.28.080.
8. 
Source of Cannabis. A dispensary shall only dispense cannabis from the following sources and this information shall be included in the operations manual:
a. 
On-Site Cultivation, Manufacturing, and Distribution for Authorized Dispensary. If the conditional use permit authorizes on-site cannabis cultivation, manufacturing, or distribution at the dispensary, on-site cultivation, manufacturing, or distribution shall conform to the specific zone regulations, Section 17.24.060 Accessory Buildings and Uses, Section 17.32.100 of this chapter, and applicable Building and Fire Codes. The operations manual shall include information regarding the on-site cultivation, including, but not limited to:
i. 
Description of measures taken to minimize or offset energy use from the cultivation, processing, or manufacturing of cannabis on site; and
ii. 
Description of chemicals stored or used; and
iii. 
Description of any effluent discharged into the city's wastewater and/or stormwater system.
b. 
Licensed External Source. Dispensaries shall source their cannabis from licensed distributors and microbusinesses authorized to engage in distribution that have obtained a license from the state of California or equivalent document showing that the organization is operating in zoning and regulatory compliance from another jurisdiction for the cannabis cultivation or manufacturing.
(Ord. 443 § 1, 2016; Ord. 458 § 2, 2021)
The cultivation of cannabis for personal use shall be permitted in connection with a residence and meeting the minimum standards required by the state of California.
(Ord. 443 § 1, 2016; Ord. 458 § 2, 2021)
Cannabis cultivation, manufacturing, distribution, research and/or development may be permitted within an enclosed building in the light industrial (LI) zone subject to the issuance of a conditional use permit. The separation standards set forth in Section 17.32.090 shall only apply to cannabis cultivation, manufacturing, or distribution conducted at a dispensary where cannabis, cannabis accessories, or cannabis products are offered, either individually or in any combination, for retail sale.
Cannabis cultivation, manufacturing, distribution, research, and/or development may be established in conjunction with a dispensary in the heavy commercial (HC), limited commercial (LC), general commercial (GC) zones as an accessory use subject to the issuance of a conditional use permit.
(Ord. 458 § 2, 2021)
All activities involving the delivery of cannabis by a dispensary shall comply with regulations, restrictions and guidelines established by the state of California.
The delivery of cannabis from any dispensary to a retail or medical customer within the city shall only be permitted by a validly issued conditional use permit or as otherwise permitted by Section 17.32.130(F).
The delivery of cannabis from a dispensary or non-storefront retailer outside of the city to customers within the city shall be permitted from dispensaries and non-storefront retailers that have obtained a license from the state of California or equivalent document showing that the dispensary or non-storefront retailer is operating in zoning and regulatory compliance from another jurisdiction.
(Ord. 443 § 1, 2016; Ord. 458 § 2, 2021)
A. 
Administrative Citation and Revocation.
1. 
Any violation of this chapter occurs the city has the authority to immediately cite a dispensary for the violation. The dispensary is given one warning and if not corrected within seven calendar days, the city may issue an administrative citation of five hundred dollars per violation. The citations may escalate according to the schedules identified in Chapter 1.24 until and unless the violations have been corrected.
2. 
A use permit may be revoked according to Section 17.28.020(N) (Revocation of approvals and permits). Revocation proceedings may occur for noncompliance with the governing condition use permit or zoning clearance and any of the standards in this chapter.
B. 
Transfer of Use Permit. The rights of an approved use permit to operate a dispensary may be transferred to another dispensary as a use permit modification according to Section 17.28.020(M).
C. 
Appeals. Any applicant or other interested person may appeal a decision by the community development manager according to Section 17.28.020(I).
D. 
Fees. Applications filed under this chapter shall be reviewed and processed on a full cost recovery basis pursuant to the current Master Fee Schedule. The city council may amend the Master Fee Schedule from time to time to ensure for full cost recovery of administration of any permit issued under this chapter.
E. 
Amendments. Amendments to this chapter shall conform to the process identified in Section 17.28.080.
F. 
Modifications to an Approved Conditional Use Permit. A dispensary with an approved conditional use permit may add uses permitted by specific zoning districts subject to the issuance of a minor use permit described in Section 17.28.052.
(Ord. 443 § 1, 2016; Ord. 458 § 2, 2021)