Port Hueneme Municipal Code Part A In General

This Chapter is adopted pursuant to the City's police powers and municipal affairs provision of the City Charter for the purpose of permitting commercial cannabis activity for medical and nonmedical purposes in compliance with State and local laws. Nothing in this Chapter is intended to, nor does, duplicate or conflict with applicable local, State, or, beyond the extent constitutionally permissible, federal laws.

(Ord. No. 797, § 4, 6-3-24)

A. It is unlawful for any person to engage in commercial cannabis activity without a valid Certificate of Approval issued pursuant to this Chapter for each location at which the activity is proposed to occur.

B. Unless otherwise provided by this Chapter, it is unlawful for any person to engage in commercial cannabis activity from other than a fixed location within the City's jurisdiction for which a Certificate of Approval has been obtained and remains in effect.

C. It is unlawful for any person to cause, permit, aid, abet, or conceal a violation of any provision of this Chapter.

(Ord. No. 797, § 4, 6-3-24)

Subject to applicable State law and this Chapter, commercial cannabis activity is permitted when approved by the City in accordance with this Chapter. Specifically, the following commercial cannabis activity may be allowed pursuant to a Certificate of Approval:

A. Sale;

B. Indoor cultivation;

C. Delivery;

D. Manufacturing;

E. Testing services;

F. Distribution; and

G. Cannabis lounges.

(Ord. No. 797, § 4, 6-3-24)

Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Chapter. Words and phrases undefined in this Chapter have the same meaning as set forth in the Adult Use of Marijuana Act; the Compassionate Use Act; the Medical Marijuana Program Act; the Medical Marijuana Regulation and Safety Act; or the "Control, Regulate and Tax Adult Use of Marijuana Act."

"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 marijuana. "Cannabis" also means marijuana as defined by Health and Safety Code Section 11018. "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 defined by Food and Agricultural Code Section 81000 of the or Health and Safety Code Section 11018.5. For purposes of this Code, "marijuana" has the same meaning as cannabis and the two (2) terms are used interchangeably.

"Cannabis lounge" means a discrete, licensed premise where cannabis goods may be purchased and smoked, ingested, or otherwise consumed within the confines of the premises.

"Certificate of Approval" or "certificate" means final approval granted for commencement of a commercial cannabis activity under this Chapter.

"Commercial cannabis activity" includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of medical cannabis or a medical cannabis product, or of nonmedical cannabis or nonmedical cannabis products, except as set forth in Business and Professions Code Section 19319, related to qualifying patients and primary caregivers.

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

"Delivery" means the commercial transfer of medical cannabis or medical cannabis products from a facility, up to an amount determined by the bureau, to a primary caregiver or qualified patient as defined in Health and Safety Code Section 11362.7, or a testing laboratory. "Delivery" also includes the use by a facility of any technology platform owned and controlled by the facility, or independently licensed under California law, which enables qualified patients or primary caregivers to arrange for or facilitate the commercial transfer by a licensed facility of medical cannabis or medical cannabis products.

"Director" means the City Manager, or designee.

"Distribution" shall have the meaning as provided in Section 26001(r) of the California Business and Professions Code, as amended from time to time.

"Distributor" is one holding a valid Certificate of Approval and license as for distribution activities.

"Employee" at a facility means any person who performs work at the facility, including but not limited to any owner, supervisor, worker or volunteer, whether paid or unpaid, full time or part-time. "Employ" means to hire or otherwise retain or allow a person to act as an employee. Incidental contractors and enforcement officials (as defined in this Chapter) shall not be considered employees.

"Enforcement official" means an employee of or contractor for the City, County, or State who is enters onto the premises of a facility for the purpose of implementing this Chapter or enforcing applicable laws.

"Facility" means a facility at which commercial cannabis activity occurs as authorized by this Chapter including, without limitation, a medical marijuana collective, a medical or nonmedical marijuana dispensary, a cannabis consumption lounge, a commercial cannabis distribution facility, a commercial cannabis cultivation facility, a testing service, or a manufacturing site for cannabis products.

"Identification card" means a document issued either by a governmental agency, e.g., the California Department of Health Services, or other valid documentation that identifies a person as someone authorized to engage in the medical use of marijuana, and that identifies the person's designated primary caregiver, if any.

"Implementing Resolution" means a resolution or resolutions adopted by the City Council which prescribes the application process, eligibility requirements and/or operational parameters governing commercial cannabis activity and/or cultivation of cannabis, as such resolutions may be revised, replaced or amended from time to time.

"Incidental contractors" means independent contractors who are brought in to a facility only occasionally and solely to perform specialized services generally applicable to non-cannabis businesses (e.g., pest control specialist, plumber, electrician, copier repair tech).

"Medical marijuana collective" means a collective, cooperative, association, dispensary or other entity, whether for profit or nonprofit in nature, that cultivates, distributes, dispenses, stores, exchanges, processes, delivers, makes available or gives away cannabis in the City for medical purposes to qualified patients, or primary caregivers of qualified patients pursuant to Health and Safety Code Section 11362.5 or any State regulations promulgated to implement the Compassionate Use Act of 1996. Medical Marijuana Collective does not include the following uses, so long as such uses comply with this Code and other applicable law:

A. A clinic licensed pursuant to Health and Safety Code Section 1200 et seq.

B. A health care facility licensed pursuant to Health and Safety Code Section 1250 et seq.

C. A residential care facility for persons with chronic life-threatening illness licensed pursuant to Health and Safety Code Section 1568.01 et seq.

D. A residential care facility for the elderly licensed pursuant to Health and Safety Code Section 1569 et seq.

E. A hospice or a home health agency licensed pursuant to Health and Safety Code Section 1725 et seq.

"Medical cannabis," medical cannabis product," or "cannabis product" has the same meaning as set forth in Business and Professions Code Section 19300.5(ag), as the same may be amended from time to time.

"Operations plan" means an operating plan approved by the Police Chief, that implements the standard requirements of this Chapter along with such additional, reasonable, criteria needed to protect public health and safety as determined by the Police Chief, based upon the size and location of the proposed facility.

"Person with an identification card" means an individual who is a qualified patient who has applied for and received a valid identification card.

"Personal cultivation", "cultivation for personal use" and similar terms mean cultivation of cannabis for personal use, whether medical or nonmedical, by (i) the cultivator, and/or (ii) if for medical use, by the cultivator's qualified patient, if the cultivator is the primary caregiver of the qualified patient.

"Police Chief" means the Police Chief, or designee.

"Primary caregiver" means the individual, designated by a qualified patient or by a person with an identification card, who has consistently assumed responsibility for the housing, health, or safety of that patient or person, and may include any of the following:

A. In any case in which a qualified patient or person with an identification card receives medical care or supportive services, or both, from a clinic licensed pursuant to Health and Safety Code Section 1200 et seq., a health care facility licensed pursuant to Health and Safety Code Section 1250 et seq., a residential care facility for persons with chronic life-threatening illness licensed pursuant to Health and Safety Code Section 1568.01 et seq., a residential care facility for the elderly licensed pursuant to Health and Safety Code Section 1569 et seq., a hospice, or a home health agency licensed pursuant to Health and Safety Code Section 1725 et seq., the owner or operator, or no more than three (3) employees who are designated by the owner or operator, of the clinic, facility, hospice, or home health agency, if designated as a primary caregiver by that qualified patient or person with an identification card.

B. An individual who has been designated as a primary caregiver by more than one (1) qualified patient or person with an identification card, if every qualified patient or person with an identification card who has designated that individual as a primary caregiver resides in the same city or county as the primary caregiver.

C. An individual who has been designated as a primary caregiver by a qualified patient or person with an identification card who resides in a city or county other than that of the primary caregiver, if the individual has not been designated as a primary caregiver by any other qualified patient or person with an identification card.

D. A primary caregiver must be at least twenty-one (21) years old, unless the primary caregiver is the parent of a minor child who is a qualified patient or a person with an identification card or the primary caregiver is a person otherwise entitled to make medical decisions under State law pursuant to Family Code Sections 6922, 7002, 7050, or 7120.

"Proof of identity" is defined as a means of proving the person seeking medical marijuana is the person's name in the doctor's recommendation or as the primary caregiver, and may include, by way of example, photograph identity materials, such as a valid California driver's license, California DMV identity card, or a US passport.

"Qualified patient" means a person who is entitled to the protections of Health and Safety Code Section 11362.5.

"School" means any public or private school providing instruction in kindergarten any grades 1 through 12. A school does not include any private school in which education is primarily conducted in private homes.

"Testing service" or "testing services" has the same meaning as "testing service" set forth in Health and Safety Code Section 26001.

(Ord. No. 797, § 4, 6-3-24)

To engage in commercial cannabis activity allowed by this Chapter, a person or entity must provide all information and comply with all requirements identified in the Implementing Resolution and obtain all of the following:

A. First, a Certificate of Approval as required by this Chapter.

B. After obtaining a Certificate of Approval issued by this Chapter, a person must thereafter obtain and maintain all required State of California commercial cannabis activity licenses required for the facility, e.g., a Type 6 (Manufacturer 1) license issued by the California Department of Consumer Affairs and/or a Type 10 or 10A (Dispensary) license issued by the California Department of Consumer Affairs, etc. as enumerated in Business and Professions Code Section 19300.7 or other applicable State law, once such licenses become available. Operation of the facility without a State license or licenses is permissible during the time such licenses are not available.

C. Background check approval from the City for each owner or other representative of the applicant and security guard of the facility, pursuant to Section 3985 of this Chapter.

D. After obtaining a Certificate of Approval, a person must thereafter, before commencing a commercial cannabis activity, obtain a Development Permit and any other permits and approvals required for the facility under Article X or other provision of this Code. Failure to obtain all entitlements outlined in this Chapter, any resolutions or regulations adopted in relation to this Chapter, or Article X of this Code, including, without limitation, a Certificate of Approval, discretionary development entitlements, a development agreement adopted by ordinance of the City Council, and a certificate of occupancy prior to engaging in commercial cannabis activity shall be a violation of this Chapter and shall constitute grounds for revocation or suspension of all entitlements. Notwithstanding the foregoing, the City may enforce violations of this Chapter through any legal means to abate violations of this Code and prevent illegal cannabis activities.

Notwithstanding any other provision of applicable law, unless extended or renewed, a Certificate of Approval will be rendered void should a person fail to obtain, within six (6) months following issuance of the Certificate of Approval, or thereafter maintain, the State license and other permits and approvals required by this section. The six-month period shall be extended by a reasonable amount of time to reflect delays due to State backlog if the applicant has filed for such a license or licenses, provided all information and fees required by the State have been provided to the State within the initial six-month period following issuance of the Certificate of Approval.

(Ord. No. 797, § 4, 6-3-24)

A. To protect public health and safety, and to further ensure that commercial cannabis activity permitted by this Chapter is in the public interest, the City may establish by Implementing Resolution and/or by administrative policies and procedures promulgated by the City Manager the procedures for determining the qualifications of persons allowed to apply for a Certificate of Approval or allowed to be employed at a facility. Any such resolution, policy or procedures may also (i) establish the application fees and method, including timing, for objectively evaluating and reaching a decision on applications for a Certificate of Approval pursuant to this Chapter, and (ii) establish operating standards and restrictions as the City may require from time to time.

B. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorize City authorities to access State and local summary criminal history information for employment, licensing, or certification purposes, and authorize access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every applicant for a Certificate of Approval (including owners and other representatives of the applicant), and security guards at the facility must submit fingerprints and other information deemed necessary by the Chief of Police or his/her designee(s) for a background check by the Port Hueneme Police Department. A fee for the cost of the background investigation, which shall be the actual cost to the City of Port Hueneme to conduct the background investigation as it deems necessary and appropriate, including City staff time and costs, shall be paid at the time the person submits for the background check.

C. In addition to any other qualifications, methods and procedures established for applicants pursuant to paragraph A above in this section, and except as permitted by the Police Chief on good cause shown, an applicant for a Certificate of Approval or for employment at a commercial cannabis activity shall be denied a Certificate of Approval and disqualified from employment at a facility if the background check or other information shows that the applicant:

1. Is dishonest or untrustworthy;

2. Has committed a felony or misdemeanor involving fraud, deceit or embezzlement;

3. Was convicted of a violent felony or crime of moral turpitude; or

4. Was convicted of unlawful activity under the Federal Controlled Substances Act, except for California medical cannabis-related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996, and where the conviction related solely to lack of legal authority to engage in the business.

D. Any transfer of an interest in a commercial cannabis activity or change in location of an established and approved cannabis business shall comply with the requirements of this Chapter and the Implementing Resolution.

(Ord. No. 797, § 4, 6-3-24)

Unless otherwise provided in the Certificate, a Certificate of Approval shall expire one (1) year following its issuance. All commercial cannabis activity at the facility shall cease upon expiration of the Certificate unless and until the Certificate is renewed or a new Certificate of Approval is issued pursuant to the Implementing Resolution. The renewal of the Certificate of Approval shall not be unreasonably withheld based upon the City's review of the applicant's compliance with conditions of approval, any regulations adopted by resolution or City requirement, changes in circumstances, operations or ownership or staffing, observing all relevant laws, ordinances and regulations, and such other factors as are reasonable.

(Ord. No. 797, § 4, 6-3-24)

A. To the fullest extent permitted by law, the City does not assume any liability whatsoever, with respect to approving any Certificate of Approval pursuant to this Code or the operation of any facility approved pursuant to this Code.

B. As a prerequisite to issuance of a Certificate of Approval, the applicant must:

1. Execute an agreement indemnifying the City from any claims, judgments, awards, damages, injuries, or liabilities of any kind arising out of or related to issuance of a Certificate of Approval and/or approval of a Development Permit or Ministerial Permit, or operation of the facility or the prosecution of the facility or its owners, managers, directors, officers, employees, or its qualified patients or primary caregivers for violation of federal or State laws;

2. Maintain insurance in the amounts and of the types that are reasonably acceptable to the City Manager or designee;

3. Name the City as an additionally insured on all City required insurance policies;

4. Agree to pay the reasonable fees and costs of legal counsel selected by the City to defend the City, its agents, officers, and/or employees against any claim described in subsection 3986(B)1 above; and

5. Agree to reimburse the City for any court costs and reasonable attorney fees the City may be required to pay as a result of any claim described in subsection 3986(B)1 above.

6. The agreements required by this subsection 3986(B) must be secured with sufficient insurance, as determined by the City Attorney, and a surety, as approved by the City Attorney, to adequately protect the City from any and all liability. The surety requirement may be waived in the discretion of the director if the applicant demonstrates sufficient net worth to adequately cover the liability exposure.

(Ord. No. 797, § 4, 6-3-24)