Chapter 26 — CANNABIS USE AND CULTIVATION

"Adult use of cannabis or cannabinoid preparations" means the use permitted by Section 11362.1 of the California Health and Safety Code.

"Cannabinoid preparations" 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.

"Cannabis" means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part thereof; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" does not include:

• (1) Industrial hemp, as defined in Section 11018.5 of the California Health and Safety Code; or

• (2) The weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink, or other products.

"Cannabis accessories" is defined as that term is defined in California Health and Safety Code Section 11018.2.

"Cannabis, adult-use" means cannabis or cannabis products intended to be sold for use by adults 21 years of age and over who do not possess physician's recommendation for the use of cannabis issued in accordance with the Compassionate Use Act of 1996 (California Health and Safety Code Section11362.5).

"Cannabis lounge" means a City-licensed facility where cannabis and cannabis products or goods may be smoked, vaped, or ingested within the confines of the facility.

"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

"Delivery" means the commercial transfer of cannabis or cannabinoid preparations to a customer. "Delivery" also includes the use by a retailer 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 cannabinoid preparations.

"Manufacture" means the production, preparation, or compounding of cannabis products, including extraction processes, infusion processes, the packaging or repackaging of manufactured cannabis or cannabis products, and labeling or relabeling the packages of manufactured cannabis or cannabis product.

"Manufacturing" or "manufacturing operation" means all aspects of the manufacture, extraction and/or infusion processes, including processing, preparing, holding, storing, packaging, or labeling of cannabis products. "Manufacturing" shall also include any processing, preparing, holding, or storing of components and ingredients.

"Medical use" of cannabis or cannabinoid preparations means the use permitted by the Compassionate Use Act (California Health and Safety Code Section11362.5) and the Medical Marijuana Program Act (California Health and Safety Code Section 11362.7 et seq.).

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City of Ojai, CA

PUBLIC WELFARE, MORALS, AND CONDUCT

§ 4-26.01

§ 4-26.03

"Microbusiness" means any commercial adult-use cannabis business that engages in commercial manufacturing, distribution, and retail sales of cannabis for adult-use and medical purposes.

"Person" includes any individual, firm, co-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.

"Primary caregiver" is defined as that term is defined in California Health and Safety Code Section 11362.7, subdivision (d).

"Qualified patient" means a seriously ill person who obtains a written recommendation from a physician licensed to practice medicine in the State of California to use cannabis for personal medical purposes. In addition, persons currently under the care of a physician for a "serious medical condition" as that term is defined in California Health and Safety Code Section11362.7, subdivision (h) are presumed to be "qualified patients."

Solvent, Non-Volatile. A "non-volatile solvent" means any solvent used in the extraction process that is not a volatile solvent, including carbon dioxide.

Solvent, Volatile. A "volatile solvent" means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures.

Any term defined in this section also means the very term as defined in the California Business and Professions Code or the California Health and Safety Code, unless otherwise specified.

(§ 2, Ord. 867, eff. November 15, 2016, as amended by § 2, Ord. 879, eff. December 28, 2017, § 2, Ord. 884, eff. June 21, 2018, § 2, Ord. 886, eff. August 9, 2018, § 2, Ord. 898, eff. June 27, 2019, § 2, Ord. 903, eff. October 10, 2019, and § 2, Ord. 939, eff. October 12, 2023)

Within the City's limits, no person may smoke or ingest cannabis or cannabinoid preparations in any public place or in any location where smoking tobacco is prohibited, except as provided in Section 4-26.10. Licensed and lawfully operating cannabis lounges are exempt from the smoking regulations of the Ojai Municipal Code, including this section and Chapter 5-10.

(§ 2, Ord. 867, eff. November 15, 2016, as amended by § 2, Ord. 879, eff. December 28, 2017, § 2, Ord. 884, eff. June 21, 2018, and § 3, Ord. 939, eff. October 12, 2023)

• (a) Except as specifically allowed by Sections 4-26.04, 4-26.06, 4-26.08, 4-26.09, and 4-26.10 of this Code and applicable State law, all cannabis activity, cultivation, and businesses shall be prohibited within the City of Ojai, regardless of any licenses issued under State law. This prohibition shall not prevent indoor cultivation of cannabis for personal use by a person over 21 years of age, conducted in accordance with applicable State law and inside a private residence or inside an accessory structure to a private residence located upon the grounds of the private residence. No person may cultivate industrial hemp for personal use.

• (b) Outdoor cultivation prohibited. No person may cultivate cannabis or industrial hemp outdoors in any zoning district of the City. No conditional use permit, building permit, variance, or any other permit or entitlement, whether ministerial or discretionary, shall be approved or issued for any such use or activity.

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City of Ojai, CA § 4-26.03

OJAI CODE

§ 4-26.04

• (c) Commercial indoor cannabis or industrial hemp cultivation prohibited. No person may cultivate cannabis or industrial hemp for any commercial purposes indoors or within a building, structure, shed, or other enclosure anywhere in any zoning district of the City. No conditional use permit, building permit, variance, or any other permit or entitlement, whether ministerial or discretionary, shall be approved or issued for any such use or activity.

• (§ 2, Ord. 867, eff. November 15, 2016, as amended by § 2, Ord. 879, eff. December 28, 2017, § 2, Ord. 884, eff. June 21, 2018, § 3, Ord. 898, eff. June 27, 2019, § 2, Ord. 903, eff. October 10, 2019, and § 4, Ord. 939, eff. October 12, 2023)

• (a) To the extent such a prohibition is permitted under California law, delivery of cannabis or cannabinoid preparations within the City for adult use is prohibited absent a City-issued commercial adult-use cannabis delivery license, regardless of any license or other authorization a person may have to engage in any commercial activity related to adult use cannabis outside of the City.

• (b) A person may deliver cannabis or cannabinoid preparations within the City for medical use if he or she first obtains a license from the City to do so. The City Manager or designee shall issue applications and processing guidelines and operating and security regulations for the City medical cannabis delivery license. No such license shall be issued prior to the release of these guidelines, and no license shall be granted that has not complied fully with the application and processing requirements.

• (c) A person may operate a medical cannabis dispensary if the person obtains a license from the City for such facility. The City Manager or designee shall issue applications and processing guidelines for the City medical cannabis business license. No such license shall be issued prior to the release of these guidelines, and no license shall be granted that has not complied fully with the application and processing requirements. The business in question must operate as a medical cannabis delivery service and/or medical dispensary service, providing cannabis to qualified patients and their primary caregivers. The business in question may not engage in any commercial activities related to adult use cannabis within the City's limits, unless the licensee also obtains a City license to operate a commercial adult-use cannabis dispensary. This is intended as a temporary measure, notwithstanding any other provision of the Ojai Municipal Code, to ensure the City's residents have safe and reliable access to medical cannabis while the City Council considers a more permanent cannabis policy. This section creates no vested right to engage in any such activity or business.

• (d) A person may operate a commercial adult-use cannabis dispensary or delivery service if the person obtains a license from the City for such facility. The City Manager or designee shall issue applications and processing guidelines for the City commercial adult-use cannabis business license. No such license shall be issued prior to the release of these guidelines, and no license shall be granted that has not complied fully with the application and processing requirements. The business in question must operate only as a commercial adult-use dispensary and/or delivery service for off-site consumption, without any on-site cannabis use or consumption, unless the cannabis dispensary operates a cannabis consumption lounge in compliance with Section 4-26.10. The business in question shall only sell cannabis and cannabis accessories to persons who are 21 years of age or older, and who are in possession of a valid government-issued identification card proving their

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City of Ojai, CA

PUBLIC WELFARE, MORALS, AND CONDUCT

§ 4-26.04

§ 4-26.06

age. The commercial adult-use cannabis dispensary shall not allow cannabis, cannabis products, or cannabis accessories on the dispensary site to be visible from the public right-of-way, the unsecured areas surrounding the buildings on the site, or the site's main entrance and lobby. A commercial adult-use cannabis dispensary or delivery service shall display at all times during business hours, its current valid commercial adult-use dispensary and/or delivery service City and State issued licenses in a conspicuous place so that they may be readily seen by all persons entering the business. All commercial adult-use cannabis dispensaries and/or delivery services shall comply with operating and security regulations issued by the City Manager or designee. Only three licenses for commercial adult-use cannabis dispensary and/or delivery services shall be issued. The City Manager shall only issue initial commercial adult-use cannabis dispensary and/or delivery service licenses to existing lawfully operating City and State licensed medical cannabis dispensaries and/or delivery services. This is intended as a temporary measure, notwithstanding any other provision of the Ojai Municipal Code, to ensure the City's residents have safe and reliable access to commercial adult-use cannabis while the City Council considers a more permanent cannabis policy. This section creates no vested right to engage in any such activity or business.

• (e) Cannabis dispensaries may only be located in the C-1 General Commercial Zoning District, M-1 and MPD Zones and may not be located in any other zone in the City. A maximum of three cannabis dispensaries are allowed in the City, which may be, but are not required to be, collocated with cannabis lounges under Section 4-26.10.

• (f) All cannabis deliveries and dispensaries, whether medical, adult-use, or both, must comply with the City of Ojai's application, operating, and security regulations, as adopted by the City Manager, all other applicable local laws, and all applicable State laws and regulations.

• (g) A City licensee shall operate as either a medical cannabis delivery and/or dispensary service or a medical and adult use cannabis delivery and/or dispensary service, if the licensee obtains all required State and City licenses. A commercial adult use cannabis delivery and/or dispensary service alone, without also providing medical cannabis, is prohibited.

(§ 2, Ord. 867, eff. November 15, 2016, as amended by § 2, Ord. 879, eff. December 28, 2017, § 2, Ord. 884, eff. June 21, 2018, § 2, Ord. 886, eff. August 9, 2018, and § 5, Ord. 939, eff. October 12, 2023)

• (a) Every act prohibited or declared unlawful by this chapter, and every failure to perform an act made mandatory by this chapter, shall be punishable as a misdemeanor or an infraction at the discretion of the City Attorney or the District Attorney, in accord with Ojai Municipal Code Section 1-2.03. In addition, any condition caused or permitted to exist in violation of any of the provisions of this chapter is a public nuisance subject to abatement as provided in this Code or under California law.

• (b) No conduct which is protected from criminal liability under State law shall be made criminal by this Code. Conduct or uses which violate the requirements of this chapter are hereby declared to be a public nuisance, and shall be subject to non-criminal remedies, including, but not limited to, administrative citations and abatement.

• (§ 2, Ord. 867, eff. November 15, 2016, as amended by § 2, Ord. 879, eff. December 28, 2017, and § 2, Ord. 884, eff. June 21, 2018)

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City of Ojai, CA § 4-26.06

OJAI CODE

§ 4-26.08

• (a) A person may operate a cannabis testing laboratory only if the person obtains a valid cannabis testing laboratory license from the City and obtains a valid cannabis Type 8 Testing Laboratory license from the State. The City Manager or designee shall issue applications and operating regulations for the City cannabis testing laboratory license. No such license shall be issued prior to the release of these regulations, and no license shall be granted that has not complied fully with the application and operating regulations.

• (b) A cannabis testing laboratory permittee shall only test cannabis in a fully enclosed building with adequate ventilation as determined necessary by the Building Official. A cannabis testing laboratory permittee shall not allow cannabis or cannabis products on the laboratory site to be visible from the public right-of-way, the unsecured areas surrounding the buildings on the site, or the site's main entrance and lobby and shall display its current valid cannabis testing laboratory permit issued in accordance with this section inside the lobby or waiting area of the main entrance to the laboratory site. The permit shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the lobby of the laboratory site. Cannabis testing laboratories shall not have any signage indicating the nature of their operations, except as may be required by applicable law.

• (c) No cannabis testing laboratory licensee shall open their laboratory site to the public and no cannabis testing laboratory permittee shall allow anyone on the laboratory site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, including contractors, inspectors, and cannabis transporters.

• (d) No person shall conduct any retail sales of any good or services on or from a permitted cannabis testing laboratory site. As required by State law, including Business and Professions Code Section 26053, subdivision (b), the owners and operators of a cannabis testing laboratory are prohibited from owning or operating any other cannabis business or entity, except another cannabis testing laboratory, and are prohibited from possessing any other State or local cannabis license, except for another cannabis testing laboratory license.

• (e) No person shall smoke, ingest, or otherwise consume cannabis in any form on or within the laboratory site or possess, consume, or store any alcoholic beverage on the laboratory site.

• (f) Cannabis testing laboratories must comply with the City of Ojai's operating regulations, as adopted by the City Manager, all other applicable local laws, and all applicable State laws and regulations.

• (§ 2, Ord. 884, eff. June 21, 2018)

The City Council shall, by resolution, establish a schedule of fees for cannabis license applications, amendments, inspections, renewals and other matters pertaining to this chapter. The schedule of fees may be changed or modified by resolution of the City Council. None of the above fees shall be prorated, or refunded in the event of a denial, suspension or revocation of the permit. Failure to pay the applicable fees is grounds for denial of an application. (§ 2, Ord. 884, eff. June 21, 2018)

• (a) A person may operate a cannabis microbusiness if the person obtains an annual valid

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City of Ojai, CA

PUBLIC WELFARE, MORALS, AND CONDUCT

§ 4-26.08

§ 4-26.08

cannabis microbusiness license from the City and obtains a valid Type 12 Microbusiness license from the State and limits their commercial cannabis activities to manufacturing, distribution, and retail sales. Commercial cannabis cultivation for any purpose is prohibited in any zoning district in the City, even if permissible under a State-issued Type 12 Microbusiness license. A maximum of three licenses for cannabis microbusinesses shall be issued and only to existing cannabis dispensaries lawfully operating in the City. The City Manager or designee shall issue applications and operating regulations for the City cannabis microbusiness licenses. No such license shall be issued prior to the release of these regulations, and no license shall be granted that has not complied fully with the application and operating regulations.

• (b) A microbusiness licensee shall only manufacture cannabis in a fully enclosed building with adequate and safe ventilation as determined necessary by the Building Official. A microbusiness licensee shall not allow cannabis or cannabis products on the manufacturing site to be visible from the public right-of-way, the unsecured areas surrounding the buildings on the site, or the site's main entrance and lobby, and shall display its current valid microbusiness license issued in accordance with this section inside the lobby or waiting area of the main entrance to the microbusiness site. The license shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the lobby of the manufacturing site. All cannabis manufacturing facilities within a microbusiness shall have a site security plan approved by the City Manager and Chief of Police.

• (c) No microbusiness licensee shall open their manufacturing site to the public and no persons shall be allowed on the site except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and Statelicensed cannabis distributors.

• (d) No person shall conduct any retail sales of any good or services on or from a cannabis manufacturing site except as a part of a microbusiness operating under a valid State-issued Type 12 license and a valid City-issued microbusiness license. A City microbusiness license will only be issued to an applicant who, at the time of their application, possesses a valid City-issued commercial adult-use or medical cannabis dispensary license.

• (e) No person under the age of 21 shall be on the manufacturing site or operate a cannabis microbusiness in any capacity, including, but not limited to, as a manager, staff, employee, contractor, or volunteer.

• (f) No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 50 feet of, the cannabis microbusiness and no person shall possess, consume, or store any alcoholic beverage on the cannabis microbusiness site.

• (g) Each cannabis microbusinesses shall be limited to a maximum of 7,500 square feet of area to conduct all of the businesses authorized under the microbusiness license, including the previously City licensed cannabis dispensary. Microbusiness facilities shall not have any signage indicating the nature of their operations, except as may be required by applicable law. Cannabis microbusinesses may only be located in the M-1 and MPD Zones and may not be located in any other zone in the City.

• (h) Cannabis manufacturing facilities, cannabis retail facilities, and cannabis distribution facilities within a microbusiness must comply with the City of Ojai's application, operating, and security regulations, as issued by the City Manager and approved by the City Council,

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City of Ojai, CA § 4-26.08

OJAI CODE

§ 4-26.09

all other applicable local laws, and all applicable state laws and regulations. Applicants for initial and renewal applications for City cannabis micro-business licenses must pay an application fee, set in the amount adopted by the City Council by resolution. Applicants for cannabis manufacturing licenses will be subject to City Manager approval and the City Manager shall develop application forms and guidelines along with specific criteria to review and approve applications for cannabis manufacturing businesses in the City. The City Manager shall have the discretion to approve only those applicants for available cannabis microbusiness licenses who meet all applicable requirements and who have demonstrated that the proposed cannabis microbusiness will not be adverse to and will best protect the public's health, safety, and welfare.

(§ 4, Ord. 898, eff. June 27, 2019)

• (a) A person may operate a cannabis manufacturing business if the person obtains an annual valid cannabis manufacturing license from the City and obtains a valid Type 6, 7, N, or P cannabis manufacturing license from the State. A maximum of two licenses for cannabis manufacturing businesses shall be issued and only to new applicants who do not possess any other cannabis business license issued by the City. A cannabis manufacturing business licensed under this section may only operate as a manufacturing and distribution or manufacturing-only facility and its licensees may not possess any cannabis delivery or dispensary licenses in the City. The City Manager or designee shall issue applications and operating regulations for the City cannabis manufacturing licenses. No such license shall be issued prior to the release of these regulations, and no license shall be granted that has not complied fully with the application and operating regulations.

• (b) A manufacturing licensee shall only manufacture cannabis in a fully enclosed building with adequate and safe ventilation as determined necessary by the Building Official. A manufacturing licensee shall not allow cannabis or cannabis products on the manufacturing site to be visible from the public right-of-way, the unsecured areas surrounding the buildings on the site, or the site's main entrance and lobby, and shall display its current valid manufacturing license issued in accordance with this section inside the lobby or waiting area of the main entrance to the manufacturing site. The license shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the lobby of the manufacturing site. All cannabis manufacturing facilities shall have a site security plan approved by the City Manager and Chief of Police.

• (c) No manufacturing licensee shall open their manufacturing site to the public and no persons shall be allowed on the site except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and Statelicensed cannabis distributors.

• (d) No person shall conduct any retail sales of any good or services on or from a cannabis manufacturing site.

• (e) No person under the age of 21 shall be on the manufacturing site or operate a cannabis manufacturing business in any capacity, including, but not limited to, as a manager, staff, employee, contractor, or volunteer.

• (f) No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 50 feet of, the manufacturing site and no person shall possess, consume, or store any

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City of Ojai, CA

PUBLIC WELFARE, MORALS, AND CONDUCT

§ 4-26.09

§ 4-26.10

alcoholic beverage on the manufacturing site.

• (g) Each cannabis manufacturing business shall be limited to a maximum of 4,000 square feet of area. Cannabis manufacturing businesses shall not have any signage indicating the nature of their operations, except as may be required by applicable law. Cannabis manufacturing businesses may only be located in the M-1 and MPD Zones and may not be located in any other zone in the City.

• (h) Cannabis manufacturing facilities must comply with the City of Ojai's application, operating, and security regulations, as issued by the City Manager and approved by the City Council, all other applicable local laws, and all applicable State laws and regulations. Applicants for initial and renewal applications for City cannabis manufacturing licenses must pay an application fee, set in the amount adopted by the City Council by resolution. Applicants for cannabis manufacturing licenses will be subject to City Manager approval and the City Manager shall develop application forms and guidelines along with specific criteria to review and approve applications for cannabis manufacturing businesses in the City. The City Manager shall have the discretion to approve only those applicants for available cannabis manufacturing licenses who meet all applicable requirements and who have demonstrated that the proposed cannabis manufacturing business will not be adverse to and will best protect the public's health, safety, and welfare.

• (§ 5, Ord. 898, eff. June 27, 2019)

• (a) Location criteria. A cannabis lounge shall be located in compliance with the following requirements:

  • (1) Cannabis lounges may only be located in the C-1 Zone east of Park Road on the north side of Ojai Avenue and east of South Fulton Street on the south side of Ojai Avenue, M-1 and MPD Zones and may not be located in any other zone in the City.

  • (2) Cannabis lounges shall have a dedicated separate entrance or internal connection to any cannabis dispensary, if collocated with a cannabis dispensary.

  • (3) The smoking, inhalation, consumption or ingestion of cannabis or cannabis goods shall not be visible from any public place or any area where minors may be present.

  • (4) The three allowed cannabis lounges may be located on the same premises as, or on separate premises from, the three existing cannabis dispensaries lawfully licensed by and operating in the City.

• (b) Consumption. Cannabis and cannabis products/goods may be sold on the premises of a cannabis lounge, subject to the requirements set forth in this chapter or other applicable provisions of this Code and State law. Customers may smoke, vape, ingest, or otherwise consume cannabis in the indoor and outdoor areas of the cannabis lounge. All cannabis and cannabis products sold must comply with applicable State law regarding cannabis products.

• (c) License. A maximum of three licenses for cannabis lounges shall be issued and only to existing cannabis dispensaries lawfully licensed by and operating in the City. The City Manager or designee shall issue applications and operating regulations for the City's cannabis lounges licenses. No such license shall be issued prior to the release of these regulations, and no license shall be granted that has not complied fully with the application

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City of Ojai, CA § 4-26.10

OJAI CODE

§ 4-26.10

and operating regulations and all applicable City and State laws.

• (d) Cannabis and food and beverages. Customers shall not be permitted to bring their own cannabis, cannabis products, alcohol, alcoholic products, tobacco, or tobacco products into any dispensary or cannabis lounge. Cannabis lounges shall permit customers to bring their own water into cannabis lounges and must provide water for free to customers. The on-site sale of food, non-alcoholic beverages, and food and nonalcoholic beverages infused with cannabis is permitted.

• (e) Tobacco. No sales of tobacco products or smoking or ingesting of tobacco shall be allowed in a cannabis lounge.

• (f) Alcohol. No alcoholic beverage sales or ingestion of alcohol products shall be allowed in a cannabis lounge.

• (g) All cannabis consumption lounges must comply with the City of Ojai's application, operating, and security regulations, as adopted by the City Manager, all other applicable local laws, and all applicable State laws and regulations.

• (§ 6, Ord. 939, eff. October 12, 2023)

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City of Ojai, CA

PUBLIC WELFARE, MORALS, AND CONDUCT

§ 4-27.01

§ 4-27.03