(1) “Applicant” means an owner seeking a cannabis permit pursuant to this chapter.

(2) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, 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. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” also means marijuana as defined by Section 11018 of the California Health and Safety Code, as enacted by Chapter 14017 of the Statutes of 1972. “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 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.

(3) “Cannabis permit” means a permit issued by the city to conduct a commercial cannabis production activity, including, but not limited to, a cultivation permit, distribution permit, manufacturing permit, microbusiness permit, or testing.

(4) “Cannabis permittee” means a person who holds a cannabis permit.

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

(6) “City” shall mean the city of Cudahy.

(7) “City code” means the city of Cudahy Municipal Code.

(8) “City manager” means the city manager of the city of Cudahy.

(9) “Cole Memo” means the August 29, 2013, United States Department of Justice memorandum offering guidance on federal enforcement priorities regarding cannabis.

(10) “Commercial cannabis activity(ies)” means the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and/or cannabis products.

(11) “Commercial cannabis production activity” means all forms of commercial cannabis activity except delivery, dispensing, and retail sale(s). “Delivery,” “dispensing,” and “retail sale(s)” are defined in the C definitions section of CMC 20.88.040.

(12) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

(13) “Cultivation permit” means a cannabis permit for the indoor cultivation of cannabis in accordance with the terms and conditions of this chapter and the development agreement for the applicable cannabis permit issued to the particular cultivation permittee.

(14) “Cultivation permittee” means an applicant who has applied for and has been issued a cultivation permit by the city pursuant to the terms and conditions of this chapter.

(15) “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.

(16) “Development agreement” means an agreement adopted pursuant to the Development Agreement Law (Government Code Section 65864 et seq.) and Chapter 20.28 CMC (Development Agreements), which provides agreed-upon community benefits to the city.

(17) “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between persons authorized to engage in permitted commercial cannabis activities.

(18) “Distribution permit” means, with respect to a distribution permittee, a cannabis permit for distribution in accordance with the terms and conditions of this chapter and the development agreement for the applicable cannabis permit issued to such distribution permittee.

(19) “Distribution permittee” means a person that has been issued a distribution permit by the city pursuant to the terms and conditions of this chapter.

(20) “Fully enclosed and secure structure” means a space within a building or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one or more lockable doors and is inaccessible to minors.

(21) “Good cause,” for purposes of refusing or denying a cannabis permit, for revoking a cannabis permit, or for refusing or denying a cannabis permit renewal or reinstatement, means: (a) the applicant has not obtained approval by the city council of a development agreement setting forth the general terms for the operation of commercial cannabis production activity or breaches a term or terms of a development agreement approved by the city council pursuant to this chapter; (b) the applicant or cannabis permittee has violated the terms, conditions, or provisions of this chapter, of state law, of any regulations or rules promulgated pursuant to state law or this chapter, any applicable local rules, regulations, or conditions placed upon its state license or cannabis permit; (c) the licensed premises have been operated in a manner that adversely affects the public health, safety, or welfare or the safety of the immediate neighborhood in which the commercial cannabis production activity is being conducted; (d) the applicant or cannabis permittee has knowingly made false statements, misrepresentations, or material omissions on an application form, renewal form, or other document submitted to the city; (e) the applicant or cannabis permittee’s criminal history does not indicate that the applicant or cannabis permittee is of good moral character or the applicant or cannabis permittee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the applicant or cannabis permittee. However, if the city has issued a cannabis permit to the applicant or cannabis permittee, the city shall not consider any criminal history of the applicant or cannabis permittee that was disclosed to or discovered by the city prior to issuance of the cannabis permit and is confirmed by the applicant or cannabis permittee. For any criminal history that was not disclosed to or discovered by the city prior to issuance of a cannabis permit, or that arose after the issuance of the cannabis permit, the city shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant or cannabis permittee, and shall evaluate the suitability of the applicant or cannabis permittee based upon such review. In determining which offenses are substantially related to the qualifications, functions, or duties of the applicant or cannabis permittee, the city shall consider factors set forth in Business and Professions Code Section 26057; (f) the applicant or cannabis permittee is employing or allowing to volunteer any person whose criminal history indicates that such person is not of good moral character; (g) the applicant or cannabis permittee fails to allow inspection by city officials of the security recordings, activity logs, business records, or other accessible records pertaining to the activities conducted on the applicable premises; or (h) the applicant or cannabis permittee allows for physician services to be conducted on the applicable premises.

(22) “Good moral character” means having a personal history that demonstrates the propensity to serve the public in a manner that reflects openness, honesty, fairness, and respect for the law and rights and well-being of others. In determining good moral character, the following standards shall apply: (a) a judgment of guilt in a criminal prosecution or a judgment in a civil action shall not be used, in and of itself, as proof of an individual’s lack of good moral character. Such judgment, however, may be used as evidence in the determination and, when so used, the individual shall be notified and shall be permitted to rebut the evidence by showing that, at the current time, he or she has the ability to, and is likely to, serve the public, in a fair, honest, and open manner, that he or she is rehabilitated, and/or that the substance of the former offense is not substantially related to the applicable commercial cannabis production activity; and (b) a prior conviction where the sentence, including any term of probation, incarceration, or supervised release is completed for the possession, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance, is not considered substantially related, and shall not be the sole ground for denial of a cannabis permit, except that any of the convictions set forth in Business and Professions Code Section 26057(b)(4)), as may be amended, shall be deemed substantially related to applicable commercial cannabis production activity.

(23) “Health and Safety Code” means the California Health and Safety Code, as amended from time to time.

(24) “Indoor” means within a fully enclosed and secure structure.

(25) “Manufacture” or “manufacturing” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product from such blends, extractions, or infusions.

(26) “Manufacturing permit” means a cannabis permit to manufacture in accordance with the terms and conditions of this chapter and the conditions of approval for the applicable cannabis permit issued to the particular manufacturing permittee.

(27) “Manufacturing permittee” means a person that has been issued a manufacturing permit by the city pursuant to the terms and conditions of this chapter.

(28) “Medicinal permittee” means a person who is issued a cannabis permit to engage in commercial cannabis production activity with respect to medicinal cannabis in accordance with applicable city law and state law, including MAUCRSA.

(29) “Microbusiness” means a commercial medicinal cannabis business facility of cultivation of medicinal cannabis on areas less than 10,000 square feet and also acts as a licensed distributor, manufacturer, and delivery-only retailer, pursuant to state law, including MAUCRSA. Microbusinesses shall not be open to the public for point-of-sale retail cannabis sales.

(30) “Microbusiness permit” means a cannabis permit to establish and conduct a microbusiness in accordance with the terms and conditions of this chapter and the conditions of the development agreement for the applicable cannabis permit issued to the particular microbusiness permittee.

(31) “Microbusiness permittee” means a person who has been issued a microbusiness permit by the city pursuant to the terms and conditions of this chapter.

(32) “Outdoors” means any location within the city that is not within a fully enclosed and secure structure.

(33) “Owner” means any of the following: (a) a person with an aggregate ownership interest of 20 percent or more in the person applying for a cannabis permit, unless the interest is solely a security, lien, or encumbrance; (b) the chief executive officer of a nonprofit or other entity; (c) a member of the boards of directors of a nonprofit; (d) an individual who will be participating in the direction, control, or management of the person applying for a cannabis permit.

(34) “Permit zone” means, with respect to a person holding a cannabis permit, the overlay zone described in Chapter 20.12 CMC where such cannabis permit type is permitted to operate pursuant to a development agreement with the city.

(35) “Person” includes any individual, entity, firm, copartnership, 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.

(36) “Physician services” means the consultation by a state-licensed physician of a patient with the possible recommendation by such physician of medicinal cannabis for such patient.

(37) “Premises” means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the cannabis permittee applicant or cannabis permittee where the commercial cannabis production activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one cannabis permittee.

(38) “Retail delivery” means the commercial transfer or delivery of cannabis or cannabis products to a customer, patient, primary caregiver or cannabis permittee.

(39) “Retail delivery establishment” means a location where cannabis or cannabis products are, either individually or in any combination, delivered pursuant to state law, including MAUCRSA.

(40) “Retail delivery permit” means a cannabis permit to deliver cannabis and cannabis products to customers, patients, and primary caregivers in accordance with the terms and conditions of this chapter and the conditions of the development agreement for the applicable cannabis permit issued to the particular retail delivery permittee.

(41) “Retail delivery permittee” means a person that has been issued a retail delivery permit by the city pursuant to the terms and conditions of this chapter.

(42) “State” means the state of California.

(43) “State law” means all laws of the state of California, including, but not limited to, all rules and regulations adopted by state agencies and state regulatory entities, including subsequent amendments to such laws, rules, and regulations.

(44) “State medicinal license” means a state license for medicinal commercial cannabis production activities issued pursuant to state law.

(45) “Testing” means the activities conducted by a testing laboratory.

(46) “Testing laboratory” means an accredited laboratory, facility, or entity in the city that offers or performs tests of medicinal cannabis or medicinal cannabis products in accordance with state law and city law.

(47) “Testing permit” means a cannabis permit for testing the quality and makeup of cannabis and cannabis products pursuant to the terms and conditions of this chapter and the conditions of the development agreement for the applicable cannabis permit issued to the particular testing permittee.

(48) “Testing permittee” means a person who has been issued a testing permit by the city pursuant to the terms and conditions of this chapter.

(49) “Volatile solvent” means a Class I flammable liquid as defined by the National Fire Protection Association, including butane and propane.

(50) “Youth center” means any public or private facility that is primarily used to host 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. (Ord. 730 § 9-15, 23, 24, 2022; Ord. 673 § 9, 2017).