It is the purpose and intent of this chapter to regulate the retail sale of medicinal cannabis and nonmedicinal cannabis for adult use (including cannabis products, cannabis concentrate, and edible cannabis products) within the city of Coachella.

The regulations and prohibitions in this chapter are enacted to ensure the health, safety, and welfare of the residents of the city. The regulations and prohibitions herein, which are in compliance with the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "state law"), do not interfere with the use and possession of cannabis as authorized under state law.

Nothing in this chapter shall be construed to: (1) allow persons to engage in conduct that endangers others or causes a public nuisance, (2) allow any activity relating to the retail sale or use of cannabis that is otherwise illegal under California state law, or (3) interfere with the use and possession of cannabis as authorized under MAUCRSA.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)

For the purposes of this chapter, the following definitions shall apply.

"Applicant" means an owner that applies for a conditional use permit under this chapter.

"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indicia, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code.

"Cannabis concentrate" means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product's potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the California Health and Safety Code.

"Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

"City manager" means the city manager of the city of Coachella or designee.

"Conditional use permit" or "CUP" means a conditional use permit issued under this chapter.

"Customer" means a natural person twenty-one (21) years of age or older or a natural person eighteen (18) years of age or older who possesses a physician's recommendation, or a primary caregiver.

"Delivery" means the commercial transfer of cannabis or cannabis products to a customer.

"Edible cannabis product" means manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 of the California Food and Agricultural Code. An edible cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code. When the term "cannabis" is used in this chapter, it shall include "edible cannabis products."

"Non-retail microbusiness" means a commercial business that engages in indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and State law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities.

"Non-storefront retail microbusiness" means a commercial business that engages in non-storefront retail cannabis sales and at least two of the following commercial cannabis activities: indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and State law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities.

"Non-storefront retailer" means a cannabis retailer that provides cannabis exclusively through delivery.

"Owner" means any of the following:

(1)

A person with an aggregate ownership interest of twenty (20) percent or more in the applicant, unless the interest is solely a security, lien, or encumbrance;

(2)

The chief executive officer of a nonprofit or other entity;

(3)

A member of the board of directors of a nonprofit;

(4)

The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.

(5)

An individual entitled to a share of at least twenty (20) percent of the profits of the commercial cannabis business;

(6)

An individual that will be participating in the direction, control, or management of the person applying for a permit. Such an individual includes any of the following: a general partner of a commercial cannabis business that is organized as a partnership; a non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company; an officer or director of a commercial cannabis business that is organized as a corporation.

"Permittee" means any person holding a valid permit under this chapter. A permittee includes all representatives, agents, parent entities, or subsidiary entities of the permittee.

"Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.

"Premises" means the designated structures and land specified in the conditional use permit application or development agreement that are in the possession of an used by the applicant or permittee to conduct the retail cannabis business. The premises must be a contiguous area and may only be occupied by one permittee.

"Retail cannabis business" means a business that sells and/or delivers cannabis or cannabis products to customers, and includes the following business types: non-storefront retail microbusiness, non-storefront retailer, storefront retailer, and storefront retail microbusiness.

"Sell," "sale," and "to sell" include any transaction, whereby, for any consideration title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee to the permittee from who the cannabis or cannabis product was purchased.

"State license" means a license issued by the state of California, as listed in California Business and Professions Code Section 26050.

"Storefront retailer" means a business that has a storefront open to the public where cannabis or cannabis products are offered for retail sale to consumers, where delivery may or may not be included as part of the business's operation.

"Storefront retail microbusiness" means a commercial business that engages in retail cannabis sales and at least two of the following commercial cannabis activities: indoor cultivation of cannabis on an area less than ten thousand (10,000) square feet, Level 1 manufacturing, and distribution, provided such permittee can demonstrate compliance with all requirements imposed by this chapter and state law on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the permittee engages in such activities.

Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources:

(1)

The Compassionate Use Act of 1996 ("CUA");

(2)

The Medical Marijuana Program ("MMP"); and

(3)

The Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA").

(Ord. No. 1140, § 2(Exh. A), 7-10-19; Ord. No. 1161, § 14, 5-27-20; Ord. No. 1195, § 16, 7-27-22)

A.

The city may authorize a total of ten (10) storefront retailers and/or storefront retail microbusinesses and an unlimited number of non-storefront retailers and non-storefront retail microbusinesses to operate in the city of Coachella pursuant to section 17.84.040. No more than five storefront retailers and/or storefront retail microbusinesses may operate in Sub-Zone #1 (as described in Chapter 17.47). No more than two storefront retailers and/or storefront retail may operate in Sub-Zone #2 (as described in Chapter 17.47). The remaining storefront retailers and/or storefront retail microbusinesses, in addition to an unlimited number of non-storefront retailers and non-storefront retail microbusinesses that comply with the property development standards listed in Section 17.84.040(B), may operate in Sub-Zone #3 (as described in Chapter 17.47) and/or the M-S Manufacturing Service Zone (as described in Chapter 17.30), M-H Heavy Industrial Zone (as described in Chapter 17.72), and M-W Wrecking Yard Zone (as described in Chapter 17.34). If applications are submitted for a greater number of conditional use permits than are permitted by this section, selection among the applicants may be made by a process, and subject to criteria, established by city council resolution. Conditional use permits for all retail cannabis businesses shall be issued in accordance with the requirements in this chapter and Chapters 17.34, 17.46, and 17.47, as applicable.

B.

Prior to initiating operations and as a continuing requisite to operating a retail cannabis business, the owner shall obtain (i) conditional use permit from the city, (ii) a regulatory permit from the city manager and shall pay application fees as established by resolution adopted by the city council as amended, and (iii) a state license for each cannabis use authorized in the conditional use permit. Unless otherwise stated herein in this section, the provisions found in Chapter 17.74 entitled "Conditional Uses" shall apply.

C.

Changes in state license type, business owner, or operation will require an amendment to the approved conditional use permit.

D.

A retail cannabis business with a physical address outside of the city that wishes to deliver cannabis or cannabis products to a customer in the city is not required to obtain a conditional use permit under this chapter, but is required to obtain a city business license.

E.

This chapter does not apply to the individual possession of cannabis for personal adult use, as allowed by state law. Personal possession and use of cannabis in compliance with state law are permitted in the city of Coachella.

(Ord. No. 1140, § 2(Exh. A), 7-10-19; Ord. No. 1161, § 15, 5-27-20; Ord. No. 1195, § 17, 7-27-22)

A.

Location Restrictions. Retail cannabis businesses are allowed in the M-W Wrecking Yard Zone, as described in Chapter 17.34, the IP Industrial Park Overlay Zone, as described in Chapter 17.46, and the RC retail cannabis overlay zone, as described in Chapter 17.47.

B.

Distance Restrictions.

1.

Non-storefront businesses. A non-storefront retailer or non-storefront retail microbusiness shall have a minimum of one hundred (100) feet separation from any residential structure and be at least five hundred (500) feet from any other storefront retail or non-storefront retail cannabis business; and may not be located in the City's Pueblo Viejo District. For purposes of this chapter, "Pueblo Viejo District" shall be that area in the city bounded by Cesar Chavez Street to the south, First Street to the west, Grapefruit Boulevard to the north, and Nineth Street to the east.

2.

Storefront businesses. A storefront retailer or storefront retail microbusiness shall be located a minimum distance of eight hundred (800) feet away from Avenue 52. The distance shall be measured at the nearest point between any part of the building containing retail cannabis business and the Avenue 52 street right-of-way.

3.

Separation from schools. No retail cannabis business shall be located within two hundred fifty (250) feet of any public or private school (K-12), day care center, or youth center. The distance shall be measured from the nearest point between any part of the building containing the retail cannabis business to any lot line of the other use. For purposes of this paragraph, the following definitions shall apply:

a.

"Day care center" means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities and school age child care centers.

b.

"Youth center" means any public or private facility that is primarily used to house recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.

C.

No Drive-Thru Retail Cannabis Facilities. No retail cannabis business shall operate "drive-thru", "drive up", "window service" or similar facilities whereby a customer can order, purchase and receive retail cannabis without leaving his or her vehicle.

D.

Location of Customer Entrance. No retail cannabis business shall have a customer entrance that is adjacent to or directly across the street from a residentially zoned lot.

E.

State license(s). Every retail cannabis business shall submit to the city manager a copy of any and all of its state license(s). If any state license is suspended, modified, revoked, or expired, the permittee shall notify the city manager in writing within ten (10) calendar days.

F.

Building façade plan. Each CUP applicant must submit a building façade plan. Building façade plans shall include renderings of the exterior building elevations for all sides of the building. All building façades shall be tastefully done and in keeping with the high architectural quality and standards of the city of Coachella. The retail cannabis business facade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area.

G.

Compliance with Chapter 17.74. Except as required in this chapter, CUPs shall be reviewed, issued, denied, suspended, revoked, and/or renewed in accordance with Chapter 17.74 entitled "Conditional Uses." If any provision of this chapter conflicts with any provision of Chapter 17.74 of this code, the provision in this chapter shall control.

(Ord. No. 1140, § 2(Exh. A), 7-10-19; Ord. No. 1161, § 16, 5-27-20; Ord. No. 1195, § 18, 7-27-22)

At the time an applicant submits an application under this chapter, the applicant shall also supply an application fee in an amount to be determined by resolution by the city council, an executed reimbursement agreement on a form provided by the city to fully reimburse the city for all costs, expenses, and fees, including but not limited to attorney fees and consultant fees, incurred by the city related to the retail cannabis business, and a deposit in an amount as provided for in the reimbursement agreement terms.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)

All retail cannabis businesses are required to pay all applicable taxes, including a cannabis business tax pursuant to Chapter 4.31.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)

Any retail cannabis business that does not have a CUP, regulatory permit required under this code, and a state license(s) is expressly prohibited in all city zones and is hereby declared a public nuisance that may be abated by the city and is subject to all available legal remedies, including, but not limited to civil injunctions.

(Ord. No. 1140, § 2(Exh. A), 7-10-19; Ord. No. 1161, § 17, 5-27-20; Ord. No. 1195, § 19, 7-27-22)

CUPs may not be transferred, sold, assigned, or bequeathed expressly or by operation of law. Any attempt to directly or indirectly transfer a retail cannabis business CUP shall be unlawful and void, and shall automatically revoke the permit.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)

Any conditional use permit considered or issued pursuant to the provisions of this chapter may be denied, suspended, or revoked by the planning commission upon receiving satisfactory evidence that the applicant or permittee or owner, its agent(s), employee(s), or any person connected or associated with the applicant or permittee:

A.

Has knowingly made false statements in the applicant's application or in any reports or other supporting documents furnished by the applicant or permittee;

B.

Has failed to maintain a valid state license;

C.

Has failed to comply with any applicable provision of the Coachella Municipal Code, including, but not limited to this chapter, the city's building, zoning, health, and public safety regulations;

D.

Has failed to comply with any condition imposed on the conditional use permit; or

E.

Has allowed the existence of or created a public nuisance in violation of the Coachella Municipal Code.

(Ord. No. 1140, § 2(Exh. A), 7-10-19; Ord. No. 1195, § 20, 7-27-22)

City residents are permitted to cultivate cannabis on private residential property for personal use and in accordance with state law, subject to the following standards:

A.

Outdoor Cultivation.

1.

Cultivation for personal use is only permitted on private residential property developed with at least one residential dwelling unit. No more than six cannabis plants are permitted to be cultivated at a private residence. Property owners retain the right to prohibit renters from cultivation and any renter choosing to cultivate shall first obtain written authorization from the property owner to cultivate on site.

2.

Outdoor cultivation is limited to rear and side yard areas and only if screened by a solid block wall no less than six feet in height.

3.

Outdoor cultivation shall not be visible from surrounding public streets or adjoining properties. As such, cannabis plants may not grow above the height of the property line walls unless screened by another approved screening method.

4.

Outdoor cultivation within six hundred (600) feet of a school, daycare center, or youth center is prohibited.

B.

Indoor Cultivation.

1.

Indoor cultivation must have adequate ventilation. Structural ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation are required to obtain a building permit from the city's building and safety department.

2.

The use of volatile solvents, as defined in California Health and Safety Code Section 11362.3(d), including, but not limited to, butane, propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residence.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)

A.

In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, administrative penalties, permit suspension, and permit revocation.

B.

Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law.

C.

Violations of this chapter are hereby declared to be public nuisances.

D.

Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies.

E.

All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other remedy for the purpose of enforcing the provisions hereof.

(Ord. No. 1140, § 2(Exh. A), 7-10-19)