Commercial Cannabis Information

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The National City, City Council voted on September 17, 2019 to  draft an ordinance permitting, licensing, and regulating cannabis businesses in the City of National City.   

Currently, all commercial cannabis activity remains prohibited in the City of National City.  See National City Municipal Code section 10.14.010.

NOTE: Persons who have engaged in or facilitated unlawful cannabis activity will be prohibited from qualifying for cannabis business licenses in the City of National City. 

SUMMARY OF PROPOSED COMMERCIAL CANNABIS ACTIVITY

Cannabis Revenue Strategies
Staff Recommendation: focus on Development Agreements that create revenue for the General Fund and help implement community programs
Land Use Regulations
Staff Recommendation: move forward with drafting a regulatory ordinance that limits commercial cannabis activities to National City industrial zone without updating the zoning ordinance
Limit on Business Operations and Permitting Processes
Staff Recommendation: limit initial allowable cannabis activities to a total of 3 Microbusinesses and/or other combined licensed business types
Public Outreach and Workshops
Staff Recommendation: begin process for gathering input on the creation criteria of cannabis Development Agreements

 

Important Meetings 

City Council Budget Workshop April 24, 2019

City Council Meeting  September 17, 2019 

Community Cannabis Forum October 22, 2019

Cannabis Community Survey: October 15th - November 5th 

 

Commercial Cannabis Definitions: 

Indoor cannabis cultivation must be fully enclosed so that no natural light can come in, and no artificial light can seep out.  This is commonly done in industrial warehouse-type buildings.  Indoor cannabis cultivation facilities are generally indistinguishable from the outside and use air filtration systems to reduce or eliminate odors.

Cannabis manufacturing can involve a variety of processes to create a wide range of product types, including edibles, tinctures, (non-alcoholic) drinks, gummies, topicals, salves, and concentrates for smoking or vaping.  These products are commonly made using concentrated cannabis oil or resin, which can be extracted using either volatile solvents (like butane) or non-volatile solvents (like CO2).  These concentrates can also be extracted using mechanical, non-solvent methods.  A manufacturer may make their own concentrates to use in their products, or they may use concentrates purchased from another manufacturer or supplier.

Cannabis distribution includes the transportation of wholesale cannabis goods between licensed cannabis businesses such as cultivators, manufacturers, testing labs and retailers.  Distributors are responsible for ensuring that all cannabis products meet rigid testing, packaging and labeling requirements, and for ensuring that cannabis taxes are collected and remitted to the State.

Cannabis testing laboratories are responsible for testing all commercial cannabis products to ensure they meet safety standards before being sold to consumers.   Testing laboratories must test for THC content, CBD content, biological contamination, and for impurities such as solvent residue, pesticides and mold.  Owners or operators of cannabis testing laboratories are prohibited from having any financial interest in any other cannabis business.

Commercial cannabis retailers are the only businesses that can sell cannabis to consumers.  A cannabis retailer may have a storefront location where customers buy cannabis, or it may sell cannabis through a delivery service.  Storefront retailers may also offer delivery.  Non-storefront, delivery-only retailers must have a physical location, but it is not allowed to be open to the public.  Cannabis retailers can be licensed to sell cannabis for medicinal use, or adult recreational use, or both.  Cannabis retailers would only be allowed as an accessory use in conjunction with cultivation, manufacturing or distribution.

A cannabis microbusiness can engage in a combination of commercial cannabis activities including cultivation (less than 10,000 square feet), manufacturing, distribution and retail.  A microbusiness is required to comply with all rules for each of the selected business types.