Sec. 34.54. - Definitions.

The following definitions shall apply to the construction of this chapter unless the context is such that it is plain that a different meaning is intended:

Business shall include all activities engaged in or caused to be engaged in within the city, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer.

Calendar year means January 1 through December 31, of the same year.

Cannabis shall have the meaning set forth in Business and Professions Code section 26001(f) and 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 accessory shall have the meaning set forth in Health and Safety Code section 11018 and 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 the activity of any natural or legal person, business, or collective in the city relating to cannabis, including, but not limited to, nurseries, cultivation (excluding industrial hemp cultivation), transportation, distribution, manufacture, compounding, conversion, processing, preparation, testing, storage, packaging, delivery and sales (wholesale and/or retail sales) of cannabis, cannabis products, industrial hemp, or industrial hemp products or any accessories for the use of cannabis, cannabis products, or industrial hemp or industrial hemp products, whether or not carried on for gain or profit, whether for medical or recreational use, and whether or not such business is licensed by the state.

Cannabis nursery shall have the meaning set forth in Business and Professions Code section 26001(aj) and means a cannabis business that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.

Cannabis product shall have the meaning set forth in Health and Safety Code section 11018.1 and includes Cannabis or Industrial Hemp that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis or industrial hemp, or

an edible or topical product containing cannabis or industrial hemp or concentrated cannabis or industrial hemp and other ingredients.

Cannabis business tax or business tax, means the tax due pursuant to this article for engaging in a cannabis business in the city.

City means the City of Oceanside.

City attorney means the City Attorney of the City of Oceanside, or designee.

Commercial cannabis cultivation means cultivation conducted by, for, or as part of a cannabis business. Commercial cannabis cultivation does not include industrial hemp cultivation or cultivation for personal adult-use as authorized under the MAUCRSA, for which the individual receives no compensation whatsoever.

Cultivation shall have the meaning set forth in Business and Professions Code section 26001(l) and includes any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

Delivery shall have the meaning set forth in Business and Professions Code section 26001(p) and includes the commercial transfer of cannabis, cannabis products, industrial hemp or industrial hemp products to a customer. "Delivery" also includes the use by a retailer of any technology platform.

Distribution shall have the meaning set forth in Business and Professions Code section 26001(r) and includes the procurement, sale, and transport of cannabis and cannabis products between licensees. This shall include industrial hemp or industrial hemp products as determined by the state and/or City of Oceanside regulations that may be adopted or amended from time to time.

Employee means each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation.

Engaged in business as a cannabis business means the commencing, conducting, operating, managing or carrying on of a cannabis business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the city or coming into the city from an outside location to engage in such activities. A person shall be deemed engaged in business within the city if:

(1)

Such person or person's employee maintains a fixed place of business within the city for the benefit or partial benefit of such person;

(2)

Such person or person's employee owns or leases real property within the city for business purposes;

(3)

Such person or person's employee regularly maintains a stock of tangible personal property in the city for sale in the ordinary course of business;

(4)

Such person or person's employee regularly conducts solicitation of business within the city; or

(5)

Such person or person's employee performs work or renders services in the city.

The foregoing specified activities shall not be a limitation on the meaning of "engaged in business."

Evidence of doing business means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a cannabis business in the city.

Gross receipts except as otherwise specifically provided, means, whether designated as a sales price, royalty, rent, membership fee, ATM service fee, delivery fee, slotting fee, any other fee, vaping room service charge, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, services and property of any kind or nature) received or payable for sales of goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. However, the following shall be excluded from "gross receipts":

(1)

Cash discounts allowed and taken on sales.

(2)

Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

(3)

Such part of the sale price of property returned by purchasers to the seller as a refund by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;

(4)

Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded;

(5)

Amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected, provided the agent or trustee has furnished the tax

administrator with the names and addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustee;

(6)

Cash value of sales, trades or transactions between departments or units of the same business located in the City of Oceanside or if authorized by the tax administrator in writing in accordance with section 34.61;

(7)

Receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer's business;

(8)

Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible, provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered;

(9)

Retail sales of non-cannabis products, such as t-shirts, sweaters, hats, stickers, key chains, bags, books, posters, rolling papers, cannabis accessories such as pipes, pipe screens, vape pen batteries (without cannabis or industrial hemp) or other personal tangible property which the tax administrator has excluded in writing by issuing an administrative ruling per section 34.61 shall not be subject to the cannabis business tax under this section. However, any business activities not subject to this section as a result of an administrative ruling shall be subject to the appropriate business tax provisions of chapter 15 or any other title or chapter of this Code as determined by the tax administrator.

(10)

Any business which sells industrial hemp and/or hemp products or offers services or activities related to industrial hemp or hemp products and/or which is not required to obtain a cannabis or industrial hemp permit or license from the city or the state for the purpose of manufacturing, processing, packaging, transporting, distributing, testing or selling of industrial hemp either wholesale or retail shall be exempt from the cannabis tax provided that such business does not generate more than fifty (50) percent of their total gross receipts in the reporting period from the business from industrial hemp activities. However, the exemption may be amended by the city council by resolution or ordinance pursuant to section 34.55(b) to increase or decrease the percentage of the business's hemp and/or hemp products gross receipts reporting from zero to one hundred (100) percent. To the extent the gross receipts from the hemp activities do not meet the relevant percentage to be included, this exclusion shall reduce the gross receipts to zero. The business shall still be subject to appropriate business tax provisions of other chapters of the Oceanside City Code.

Industrial hemp means a crop that is limited to types of the plant Cannabis sativa L. having no more than three-tenths (0.3) of one (1) percent tetrahydrocannabinol (THC) contained in the dried flowering tops,

whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin produced therefrom.

Industrial hemp products means any raw hemp that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. "Hemp product" also means hemp products as defined by Section 11018.5 of the California Health and Safety Code.

Lighting means a source of light that is primarily used for promoting the biological process of plant growth. Lighting does not include sources of light that primarily exist for the safety or convenience of staff or visitors to the facility, such as emergency lighting, walkway lighting, or light admitted via small skylights, windows or ventilation openings.

Manufacture shall have the meaning set forth in Business and Professions Code section 26001(ag) and means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.

Medicinal cannabis or medicinal cannabis product means cannabis or a cannabis product, intended to be 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 medicinal cannabis patient in California who possesses a physician's recommendation, or a cannabis card issued pursuant to Health and Safety Code Section 11362.71.

Operation shall have the meaning set forth in Business and Professions Code section 26001(ak) and includes any act for which licensure is required under state law, or any commercial transfer of cannabis or cannabis products.

Person means an 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, whether organized as a non-profit or for-profit entity and includes the plural as well as the singular number.

Processing means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis, industrial hemp and nonmanufactured cannabis or hemp products.

Purchaser means the customer who is engaged in a transaction with a person subject to licensure under state law for purposes of obtaining cannabis or cannabis products.

Sale and sell shall have the meaning set forth in Business and Professions Code section 26001(as) and includes any transaction whereby, for any consideration, title to cannabis, cannabis products, industrial hemp or industrial hemp products is transferred from one (1) person to another, and includes the delivery of cannabis, industrial hemp or cannabis or industrial hemp 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, hemp or cannabis or industrial hemp products by a licensee to the licensee from whom the cannabis, hemp or cannabis or industrial hemp products was purchased.

State shall mean the State of California.

State license, license, or registration means a state license issued pursuant to California Business and Professions Code Section 26050, and all other applicable state laws, required for operating a cannabis business or regulations which may be adopted from time to time.

Tax administrator means the city manager or his/her designee.

Testing laboratory means a cannabis business that (i) offers or performs tests of cannabis, cannabis products, industrial hemp and/or industrial hemp products (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state and (v) is registered with the Bureau of Cannabis Control or other state agency.

(Ord. No. 20-OR0502-1, § 1, 8-19-2020)