HomeMy WebLinkAboutRequest for City Council Direction on Regulatory Framework a 2000 Main Street,
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City of Huntington Beach
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File #: 22-565 MEETING DATE: 7/5/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Travis K. Hopkins, Assistant City Manager
PREPARED BY: Grace Yoon-Taylor, Senior Administrative Analyst
Subject:
Consider placing cannabis business taxation and regulation measures for voter approval on
the November 8, 2022 General Municipal Election ballot; Request for City Council direction on
regulatory framework and proposed ordinances on commercial cannabis activities
Statement of Issue:
Since passage of the Compassionate Use Act of 1996, the Medical Marijuana Program Act, and
Medicinal and Adult-Use Cannabis Regulation and Safety Act, many California cities have allowed
cannabis-related businesses to operate within their jurisdictions. Consequently, the State and these
municipalities have developed regulations and licensing structures to regulate various types of
cannabis business activities within their jurisdictions. In contrast, Huntington Beach prohibits all
forms of commercial cannabis activities. However, the City Council (or voters by ballot initiative) has
the discretion to permit and regulate such businesses.
In November and December 2021, two private parties filed separate cannabis petitions to legalize
cannabis sales and commercial activities in Huntington Beach without gathering City Council or staff
input. Upon receiving the petitions, the City Council established a three-member ad-hoc
subcommittee consisting of Councilmembers Bolton, Kalmick, and Peterson in order to develop a
cannabis program that would be tailored to the needs and interests of the Huntington Beach
community. The subcommittee worked with staff, cannabis industry representatives, and local
stakeholders to learn about best management practices in similar cities. Subsequently, the
subcommittee presented their preliminary framework during a February 15, 2022 Study Session.
On March 1, 2022, the City Council voted to place a measure on the 2022 Primary Election ballot
asking city voters whether to adopt a cannabis business tax, which is a special tax levied upon retail
and non-retail business gross receipts for the specific purposes of supporting the City's (a) police
services for public safety and (b) homelessness prevention and behavioral services. This approach,
if approved by 2/3 of voters, would provide an opportunity for the City to maintain some level of local
control over a future cannabis program.
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At that time, staff was also directed to return to the City Council with the implications of various
unresolved policy areas associated with commercial cannabis activities for further consideration. The
ad-hoc subcommittee met to consider those policy areas and developed a regulatory framework
outlined in the draft ordinances (Attachment I and II).
The City has solicited feedback from residents, businesses, and community stakeholders on the
proposed regulatory framework through a community forum hosted on June 9, 2022 and by
accepting written comments via email and the City's website until June 13, 2022.
Based on the official election results from the OC Registrar of Voters, 64.58% of Huntington Beach
ballots cast towards the "City of Huntington Beach Cannabis Business Tax Measure," also known as,
Measure A, were in favor. However, the measure is short of the 2/3 (66.7%) of votes required to pass
and the measure will not carry.
City staff is recommending that the City present two ballot measures on the November 2022 General
Election asking voters whether the City should allow and regulate retail and non-retail cannabis
businesses and if allowed, impose local excise taxes on such commercial activities (up to 6% on their
gross receipts of cannabis retailers and up to 1% to non-retailers) as a General Tax.
This balanced approach will extend to voters authority as to whether commercial cannabis activities
should be permitted and taxed. At the same time, it maintains the City Council's ability to develop
policy positions and allow timely flexibility to respond to ever-evolving the State laws and market
condition, without necessitating the delay and expense of initiating a municipal election.
City Council direction is now requested to determine as to how cannabis regulatory ordinances
should be adopted and whether the City should place ballot tax measures on the November Election
ballot. The City Council is also asked to provide more direction on key policy areas related to
regulating cannabis businesses, such as the number of permits to be issued, zoning and buffer
restrictions, and feedback on the draft ordinances (Attachment I and II).
Financial Impact:
The estimated cost of placing two City Council-sponsored ballot measures concerning cannabis
business taxation and regulation on the November 2022 General Election would be approximately
$25,000 based on the estimated pages required. Adequate funds are available in the City's General
Fund business unit 10040101 if this option is selected.
Per the OC Registrar of Voters, narrowing the range to a final cost will depend on a few other factors
including: the total number of entities placing items on the ballot and thereby sharing in certain
election costs; the number of ballot pages required for the City's measure at approximately $8,500 for
every 2 pages/3,000 words; and expenses such as postage, printing, and other forms of cost
recovery.
Recommended Action:
A) Direct staff to prepare and return to the City Council for adoption a resolution placing a City-
sponsored measure on the November 8, 2022 General Election ballot, asking voters if the City
should allow and regulate a limited number of cannabis retailers and non-retailers for medical and
recreational to operate in areas zoned for cannabis commercial activity within Huntington Beach; and,
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B) Direct staff to prepare and return to the City Council regulatory and zoning ordinances regarding
commercial business activities for City Council adoption and the City's Commercial Cannabis
Regulations to be adopted by City Council resolution; and,
C) Direct staff to prepare and return to the City Council for adoption a resolution placing a City-
sponsored cannabis general tax measure, at the same rates as presented to voters on June 7, 2022
on the November 8, 2022 General Election ballot as a General Tax.
Alternative Action(s):
The City Council may choose one or more of the following alternative actions:
1. Do not direct staff to place a City-sponsored ballot measure on the November 8, 2022 General
Election asking voters if the City should allow and regulate a limited number of cannabis
businesses in the City but prepare and return to the City Council regulatory and zoning
ordinances for City Council adoption only; and/or
2. Direct staff to place portions of the regulatory and zoning ordinances on the November ballot
measure; and/or
3. Do not direct staff to place a City-sponsored cannabis tax measure on the November 8, 2022
General Election ballot as a General Tax.
It must be noted that the City must submit all November ballot measures and ancillary materials
(including a City Council resolution(s)) to the Orange County Registrar's Office by August 12, 2022
for the November 8, 2022 General Election ballot.
Analysis:
Regulatory Ordinances Adopted by Voters and Council
Comprehensive business and land use regulations for commercial cannabis activities in Huntington
Beach can help preserve the quality of life for residents, mitigate negative impacts of the illicit market,
drive diverse economic opportunities, and implement the City's General Plan. Such ordinances and
regulations can give the City authority over licensing, enhance accountability for security and product
safety, and reduce intervention from State and Federal governments.
With these goals in mind, the City Council can place a ballot measure on the November 2022
election asking voters if the City should allow and regulate cannabis retail and non-retail businesses
in areas zoned for such commercial activities within Huntington Beach. If voters approve the
measure, it is recommended that the Council adopt regulatory and zoning ordinances implementing
the measure.
This approach leaves for voters to determine whether retail and commercial cannabis activities
should be permitted in Huntington Beach. It will maintain the City Council's ability to develop policy
positions while allowing flexibility to accommodate the City's specific needs timely and respond with
local code amendments as the State's cannabis laws are revised, without necessitating the delay and
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expense of a municipal ballot measure designed to comply with evolving State legislation.
Commercial Cannabis Regulation Adopted by Council
Administrative regulations will be developed for City Council adoption by ordinance that specifies and
govern the following:
o Application and renewal procedure
o Pre-operational requirements and operational standards for all permitted cannabis
facilities including security, fire safety, and code enforcement related requirements.
■ Refer to Attachment III: Draft Commercial Cannabis Regulation
o Other administrative procedures necessary to implement the purpose of proposed
regulatory ordinance and zoning code
Implementation regulation would be adopted by Council resolution, similar to a fee schedule for cost
recovery on related City expenses. This approach will provide opportunities for input from the City
Council and the public and enhance transparency the way the intents of the City ordinances would be
interpreted and implemented.
The proposed ordinances would not take effect until such regulations, processes, and fees are
promulgated.
Cannabis Business Tax
The Measure A on June 7, 2022 Primary Election has failed to reach the requisite 2/3 of votes
required to pass it.
The City Council has the option of placing a tax measure on the November ballot as a general tax
with proceeds going to the General Fund for general municipal services. It is envisioned that the
measure would be similar to the Measure A, asking voters if the City should impose local excise
taxes up to 6% on the gross receipts of cannabis retailers and up to 1% to non-retailers, but a
general tax. This taxation allows flexibility for the City Council to adjust tax rates between minimum
and maximum voter-approved rates for each types of cannabis businesses to address yet
unpredictable, emerging industry conditions.
A simple majority of the electorate is required to pass a general tax.
Feedback on the key highlights of the proposed draft ordinances (Attachment I and II) include:
Cannabis Industry Types
• Retail types permitted
o Storefront dispensaries and delivery-only facilities are permitted
o Commercial activities for adult-use and medicinal cannabis/cannabis products
• Non-Retailers (Indoor Cultivation, Manufacturing, Testing Lab, and Distribution) are permitted
• Outdoor cultivation and microbusinesses will be prohibited
• Cannabis events/event organizers will be prohibited
Number of Permits
• Retailers up to 10 permits
• Non-retail permits regulated by zoning restrictions without a cap
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• A separate permit is required for each type of commercial cannabis activity.
• Limit 1 license type per owner (e.g. 1 owner can apply for 1 retailer and 1 manufacturer
permit)
• No more than 1 application per property/premise.
• A no-warehousing provision, requiring that permittee must begin operation within 1 year after
permit is granted, otherwise the license is revoked.
• A permit is valid for 1 year from the date of issuance and expires unless renewed.
• Non-transferable to others within 3 years and transferees must submit the same permit
application information to the City and pay applicable fees.
Zoning and Buffer Restrictions
• Retailers
0 Allowed in the Commercial, Specific Plan Areas and Industrial Zone with buffer
restrictions
0 Exclude Downtown (SP5) and the Sunset Beach Specific Plan (SP17) areas
0 Exclude Coastal Overlay Zone
0 Delivery-only retailers can locate only in the Industrial Zone
0 Permitted in multistore front buildings
0 No buffer requirement between shops
0 Buffer Distance: 1,000 ft. from high and middle schools (6-12), 600 ft. from K-5, parks,
licensed commercial day care centers, and youth centers.
0 Buffer Measurement: Buffers are measured from occupied premises of businesses to
the property line of sensitive receptors mentioned above.
• Non-Retailers
0 Allowed in the Industrial Zone only.
0 Buffer restrictions will be same as retailers above.
Application and Permitting Process
• City will develop a rubric in accordance with the policy goals of the ordinances and consider a
selection committee comprising of City staff and third-party evaluators.
• Application process will be two-step process with its ultimate goal to identify high-quality
operators with financial capacity and experiences.
0 Step 1: Applicants will be initially screened by a set of criteria to be placed on the
Eligibility List. Such minimum qualification criteria include:
I. Complete application packet and application fees paid to the City
II. Sworn affidavit and evidence that the proposed business location meets the
zoning criteria
III. Proof of ownership or control of the business site
IV. A refundable security deposit of a fixed amount set forth by the City Council
V. Proof of having at least 4 current licenses (various types) in California, one of
which must be retail if applying for retail permits
VI. Proof of having an identified local philanthropy partner that benefits the City
o Step 2: Applicants on the Eligibility List will be evaluated on a merit point system.
Similar to RFP/RFQ process, a points-rubric will evaluate the applicants' qualifications.
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I. Criteria including but not limited to: ownership structure, owner qualifications,
capitalization plan, business and operation plan, traffic/circulation/parking plan,
safety and security plan, community benefits package, and etc.
II. Applicants must score from an average of all scores at or above a minimum
percentage of the total available points (for example, 70% or 80%) set by the
City Commercial Cannabis Regulation.
o City Manager has authority to either deny, approve, or conditionally approve an
application for a permit and his/her decision will be final and not appealable.
o Applicants whose permit is revoked, suspended, or not renewed can appeal to the
City's Hearing Officer and proceed with the hearing.
• Permittees must enter into a Commercial Cannabis Operating Agreement with the City setting
forth the terms and conditions under which the facility will operate.
• Permittees must obtain/maintain a valid business license from Finance Department and work
with the Community Development, Police, and Fire Department staff to meet all the
requirements outlined on the ordinances including public safety and fire plans and inspections.
Fire Safety, Security and Code Enforcement Measures
Strict security requirements outlined in the Commercial Cannabis Regulation (Attachment III)
• 24/7 security guards on the premises unless alternative security is authorized by HBPD
• 24-hour security video monitoring for all entrances, exits, and all interior spaces
• Extensive background checks for owners and employees
• Customer check-in and age verification (21+) at the entrance
• No consumption allowed onsite or near premises
• Subject to inspections by authorized City personnel and grant access to surveillance videos
and records at any time
• City can board any doors and windows associated with illegal cannabis businesses
• City can shut off the electric or water service to businesses in violation
• Continued joint effort between HBPD, Fire, Code Enforcement, County and State agencies to
shut down illegal operations in the City.
Additional Community Feedback for the Council's Consideration
Through various channels, community members shared their feedback for the City Council's
consideration as followings. Depending on the City Council's direction, all or some of this feedback
may be incorporated into the final ordinances.
L For medicinal cannabis businesses and customers, the City could:
a. Allow medicinal cannabis sales to medical patients under 21 (18+ with a valid
medical card and ID) similar to the State's regulation; and/or
b. Differentiate tax rates and apply a lower tax rate for medicinal cannabis products
as compared to adult-use, recreational cannabis sales; and/or
C. Permit cannabis businesses to donate medical products to veterans per SB34.
ll. Operation Hours: the City could extend the operation hours of storefront retailers from
6am to 10pm following the State requirement (draft language allows it to be from 8am -
8pm). This could be consistent with retail deliveries.
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lll. Buffer measurements: buffer distance could be measured from property line to property
line, instead of the occupied premises to the property line. All the other zoning and buffer
distances are being measured and enforced as such. An alternative is to measure buffers
from premises to premises.
IV. Pre-application requirement to have at least 4 local cannabis permits or State licenses,
one of which must be retail for retailers. For.retail applicants: although the intent of this
provision is to identify most experienced operators with proven track records and "staying"
power and provide an efficient process, it may alienate local businesses and un-level the
playing field that favors the biggest operators, who may also have the highest prices to
consumers. The City could consider eliminating or lowering the number of required
permits/licenses and/or adding other alternatives to assess applicants' qualification such as
years of operating successful businesses.
V. Local residency requirement and/or preference: The proposed ordinance includes a
local hiring preference in the application process as one of the merit-based criteria, but the
City could further support local residents and business owners by adding the following
components:
a. The City could require that business owner(s) have been Huntington Beach
residents for at least 3 years and/or at least 51% of their employees are residents;
and/or
b. The City could allocate two permits of 10 permits or allow two additional permits
(total of 12) to "Locals only-Equity" businesses that get processed after the first ten
and lower the entry points/less restrictive requirements.
Vl. Location/Property Requirement: The City could consider not requiring proof of
ownership or site control of a property to lower entry barriers for small businesses and
widen the application pool (e.g. West Hollywood). However, it may create a situation
where applicants go through vigorous application process but cannot open a business due
to lack of viable property in areas zoned for cannabis commercial activity within the City
limit.
Environmental Status:
Not Applicable.
Strategic Plan Goal:
Economic Development & Housing
Attachment(s):
1. DRAFT Ordinance to Amend the HBMC Chapter 5
2. DRAFT Legislative Draft to Amend HBZSO
3. DRAFT Commercial Cannabis Regulation
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[Disclaimer: This document is still under administrative review and is subject to change.]
DRAFT
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE CHAPTER
5. BUSINESS LICENSES AND REGULATIONS OF THE HUNTINGTON BEACH
MUNICIPAL CODE BY ADDING SECTION 5.130 TO PERMIT AND REGULATE A
LIMITED NUMBER OF COMMERCIAL CANNABIS BUSINESSES
WHEREAS, in November 2016, a majority of the voters of the City of Huntington
Beach voted in favor of Proposition 64, which legalized the recreational adult used of
cannabis in California for individuals twenty-one (21) years age and older. Since the
passage of Prop 64 and the Control, Regulate and Tax Adult Use of Marijuana Act
(AUMA), the State and other cities have developed regulations and licensing structures; and
WHEREAS, in June 2017, the California Legislature passed Senate Bill (SB) 94
repealing Medical and Adult Use Cannabis Regulation Act(MAUCRSA) entirely and
merged certain portions of that law with AUMA to create a more comprehensive regulatory
structure for both medicinal and adult-use cannabis; and
WHEREAS, SB 94 created a new comprehensive regulatory system for all
Commercial Cannabis Activities; and
WHEREAS, the City of Huntington Beach has the constitutional charter City
authority to enact nuisance, health, and safety, and land use regulations regarding
Commercial Cannabis Activities; and
WHEREAS, the City of Huntington Beach has historically prohibited all forms of all
Commercial Cannabis Activities anywhere in the City notwithstanding State Law
requirement to allow the indoor cultivation of six or fewer non-medical marijuana plants in
private residences; and
WHEREAS, in November and December 2021, two separate initiative petitions to
legalize the manufacture and sale of cannabis were filed by private parties with the City
Clerk's office. If passed, the initiatives would remove regulatory control from the City
cannabis; and
WHEREAS, the City Council wishes to maintain the City's ability to develop
important policy positions, business and land use regulations to preserve the quality of life
for Huntington Beach residents, visitors, and business community; and
WHEREAS, the City Council established a three-member Ad-hoc subcommittee in
December 2021 to work with the staff, cannabis industry, and stakeholders to assess best
practices and provide recommendations for an Ordinance to set the regulatory framework
for cannabis businesses. The recommendations were presented to the City Council on
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February 15, 2022; and
WHEREAS, on March 1, 2022, the City Council voted to place a ballot measure on
the July 7, 2022 Primary Election, also known as, Measure A, asking voters whether or not
to adopt a Special Tax on Cannabis retail and non-retail business.
WHEREAS, the City now wishes to create a comprehensive, regulatory structure to
allow for medicinal and adult-use cannabis businesses in Huntington Beach in accordance
with this Chapter and state law that in part, mitigates potential negative impacts, prevents
cannabis from reaching minors or the illicit market, preserves public health and safety,
protects the environment, drives diverse economic opportunities, and implements the City's
General Plan; and
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
ordain as follows:
SECTION 1. Chapter 5. Business License and Regulations of the Huntington Beach
Municipal Code will be hereby amended and a new Section 5.130 of the Huntington Beach
Municipal Code shall be added.
HUNGTINGTON BEACH MUNICIPAL CODE
CHAPTER 5.130. CANNABIS BUSINESS REGULATION
5.130.010 Purpose
5.130.020 Fees and Taxes
5.130.030 Commercial Cannabis Authorization and Restriction
5.130.040 Definitions
5.130.050 Procedures to Conduct Commercial Cannabis Activity at a Commercial Cannabis
Facility
5.130.060 Number of Commercial Cannabis Permits and Location
5.130.070 Consumption of Use Prohibited on Site and In Public—Cannabis Event Prohibited
5.130.080 Minors
5.130.090 Sale of Cannabis Products or Cannabis accessories by vending machine prohibited.
5.130.100 Regulations and Inspection
5.130.110 Recordkeeping and Reporting
5.130.120 Fees Deemed Debt to City of Huntington Beach
5.130.130 Permit Holder, Owners, Operators Responsible for Violations
5.130.140 Violations Declared a Public Nuisance
5.130.150 Suspension of Service for City Purposes or for Violations for Law
5.130.160 Each Violation a Separate Offense
5.130.170 Criminal Penalties
5.130.180 Administrative Penalties
5.130.190 Remedies Cumulative and Not Excusive
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5.130.010 Purpose
This Chapter creates a Cannabis Business regulatory structure that is consistent with the
Medicinal Adult-Use Cannabis Recreation and Safety Act, Business and Professions Code §§
26000, et seq., (hereinafter, "MAUCRSA"), as well as land use regulations to protect the City's
neighborhoods, residents, and businesses from negative impacts. Further, this Chapter will
regulate the indoor cultivation, manufacturing, processing, testing, distribution, transportation,
retail sale and delivery of cannabis and cannabis-related products in a manner that is responsible
and protects the health, safety, and welfare of the residents of Huntington Beach, and that is
consistent with the rules and regulations imposed by State Law.
Nothing in this Chapter is intended to allow persons to engage in conduct that endangers others
or constitutes a public nuisance. The requirements of this Chapter are in addition to any other
permits, licenses or approvals required to conduct business in Huntington Beach or under State,
County, or other law.
5.130.020 Fees and Taxes
All Commercial Cannabis Facilities shall pay all applicable fees and taxes including the
following:
A. Commercial Cannabis Permit Deposit. Applicants shall submit a refundable deposit to
secure the permit application in a fixed amount set by council resolution. The deposit
shall be returned in full to the Applicants 30 days from the approval or denial of the
permit application. An interest incurred during the application and review process shall
be retained by the City.
B. Commercial Cannabis Permit Application Fees. Applicants shall pay a non-refundable
fee as set by council resolution to cover the cost of processing an application or amended
application for a Commercial Cannabis Permit.
C. Commercial Cannabis Permit Renewal Fees. Applicants for renewal permits shall submit
a non-refundable fee as set by council resolution to cover the cost of processing an
application or amended application for annual renewal of the Commercial Cannabis
Permit.
D. Business License Taxes.A Commercial Cannabis Business shall at all times maintain a
current and valid City of Huntington Beach business license and shall pay all business
license taxes prior to receiving a Cannabis Permit.
E. Cannabis Business Tax or Business Tax. A Commercial Cannabis Business shall pay
special taxes levied for engaging in a Cannabis Business in the City, approved by the
voters of the City of Huntington Beach.
F. All required federal and State taxes.
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G. All required transfer taxes and/or fees.
5.130.030 Commercial Cannabis Authorization and Restriction
A. Minimum Standards Applicable to Commercial Cannabis Activity
Any standards, requirements, and regulations established by the State of California, or
any of its departments or divisions, shall be the minimum standards applicable in the City
of Huntington Beach to all Commercial Cannabis Activity.
B. Unauthorized Commercial Cannabis Activities Prohibited
Except as specifically authorized by this Chapter,the commercial Cultivation,
dispensing, Manufacturing, Processing, storing, laboratory testing, labeling, sale,
Delivery, Distribution or transportation (other than provided under Bus. & Prof. Code
section 2609(e)), of Cannabis or Cannabis Products is expressly prohibited in the City of
Huntington Beach.
C. Compliance with Laws
Nothing in this Chapter shall be construed as authorizing any actions that violate federal,
State or local law with respect to the operation of a Commercial Cannabis Facility. It
shall be the responsibility of the Owner(s) and/or operator(s) of a Commercial Cannabis
Facility to ensure that the Facility is, at all times, operating in a manner compliant with
all applicable federal, State and local laws, as they may be augmented or amended from
time to time, as well as any specific, additional operating procedures or requirements
which may be imposed as conditions of approval of a Commercial Cannabis Permit.
D. Conflict of Law
This Chapter is not intended to intended to interfere with, abrogate, or annul any other
ordinance, resolution, regulation, statue or other provision of law. In the event of any
conflict between the provisions of this Chapter and any other applicable State or local law
or regulation, the most restrictive provision shall control.
5.130.040 Definitions
When used in this Chapter, the following words shall have the meanings ascribed to them as set
forth herein. The definitions of terms below shall be consistent with the definitions contained in
the MAUCRSA. Any term used in this Chapter that is not defined below shall have the same
meaning contained in the MAUCRSA.
A. Applicant. A person or entity applying for a Commercial Cannabis Permit. In the
context of an annual renewal, Applicant shall mean a person or entity applying to renew
a Permit.
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B. Application Period. A period beginning when an application for a Commercial
Cannabis Permit is received by the City and ending when the application is considered
to be administratively complete and any applicable fees have been paid.
C. Cannabis. 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" shall not include "industrial hemp,"unless otherwise specified.
D. Cannabis Business. A person or entity engaged in Commercial Cannabis Activity.
E. Cannabis Event. A public or private event where compensation is provided or
exchange, either directly or indirectly or as part of an admission or other fee for service,
for the provision, hosting, promotion or conduct of the event where consumption of
cannabis is part of the activities.
F. Cannabis Product. Raw Cannabis that has undergone a process whereby the raw
agricultural product has been transformed into a concentrate,an edible product, or a
topical product. "Cannabis Product" also means Cannabis Products as defined by
Section 11018.1 of the California Health and Safety Code and is not limited to
medicinal Cannabis Products.
G. City Manager. The City Manager of the City of Huntington Beach or his or her
designee.
H. Commercial Cannabis Activity. Having the same meaning as set forth in Business and
Professions Code § 26001, as it may be amended from time to time. Commercial
Cannabis Activity includes Cultivation, possession, Manufacture, Distribution,
Processing, storing, laboratory testing, packaging, labeling, transportation, Delivery, or
sale of Cannabis and Cannabis Products.
I. Commercial Cannabis Facility. A business that has obtained a Commercial Cannabis
Permit from the City of Huntington Beach to conduct a Commercial Cannabis Activity,
and that is subject to the regulations set forth in State Law and this Chapter.
J. Commercial Cannabis Operating Agreement. An agreement, in a form approved by the
City Attorney, entered into by and between the City and a Commercial Cannabis
Facility governing the operation of the Facility which shall, among other things, specify
terms for local hiring and sourcing, community benefits, public safety, and payment of
fees and other charges to compensate the City for impacts on City services, and such
other terms and conditions as will protect and promote the public health, safety, and
welfare.
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K. Commercial Cannabis Permit or Permit. A regulatory permit issued by the City
pursuant to this Chapter to a Commercial Cannabis Business, and which is required
before any Commercial Cannabis Activity may be conducted in the City. The initial
permit and annual renewal of a Commercial Cannabis Permit is made expressly
contingent upon the business' ongoing compliance with all of the requirements of this
Chapter and any regulations adopted by the City governing the Commercial Cannabis
Activity at issue.
L. Commercial Cannabis Regulations. The regulations issued by the City Manager and
approved by [TBD] relating to the application or renewal of a Commercial Cannabis
Permit and/or the oversight and operation of Commercial Cannabis Facilities in the
City.
M. Commercial Day Care Center. Having the same meaning set forth in the Huntington
Beach Zoning and Subdivision Ordinance Section 204.08 F. Large-Family Day Care
and 204.08 G. General Day Care. Section 204.06 A. Limited Day Care is excluded.
N. Cultivation. Any activity involving the planting, growing, harvesting, drying,
curing, grading, or trimming of Cannabis and includes,but is not limited to,the
operation of an indoor,outdoor,mixed light,or nursery. All Outdoor Cultivation
including mixed light and nursey shall be prohibited in the City.
O. Cultivator. A Licensee that engages in Cultivation activities.
P. Delivery. The commercial transfer of Cannabis or Cannabis Products to a customer
located at a physical address. "Delivery" also includes the use by a Retailer of any
technology platform used to transfer or sell Cannabis other than at the Retail Facility.
Q. Distribution.Activities including the procurement, sale, and transport of Cannabis
and Cannabis Products between other licensed Cannabis Businesses.
R. Distributor. A Licensee that engages in Distribution activities.
S. Eligibility List. A list of applicants who have met all the minimum qualifying
requirements set forth by the City to be considered for further Commercial Cannabis
Permit approval process.
T. Employ 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.
U. Hearing Officer. Having the same meaning set forth in Section 1.18.020 of the
Huntington Beach Municipal Code.
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V. Indoor Cultivation. The Cultivation of Cannabis inside a permanent enclosed building
or structure.
W. Labor Peace Agreement. A written agreement between an Owner and any bona fide
labor organization that, at a minimum, prohibits labor organizations and members from
engaging in picketing, work stoppages,boycotts, and any other economic interference
with the Owner's business. This agreement means that Owner has agreed not to disrupt
efforts by the bona fide labor organizer to communicate with, and attempt to organize
and represent the Owner's employees. The Agreement shall provide the bona fide
labor organizer access at all reasonable time to areas in which Owner's Employees
work, for the purpose of meeting with Employees to discuss their right to
representation, employment rights under State Law, and terms and conditions of
employment. This type of agreement shall not mandate a particular method of election
or certification of the bona fide labor organization.
X. License or State License. A license issued by the State of California pursuant to
California Business and Professionals Code Section 26050 and all other applicable
State Laws required for operating a Cannabis Business.
Y. Licensee. An individual or entity that has obtained a State License.
Z. Manufacture or Manufacturing. The production, preparation, propagation, or
compounding of Cannabis or Cannabis Products either directly or indirectly or by
extraction methods, or independently by means of chemical synthesis, or by a
combination of extraction and chemical synthesis at a fixed location that packages or
repackages Cannabis or Cannabis Products or labels or relabels their containers.
AA. Manufacturer. A Licensee that engages in Manufacturing activities.
BB. Microbusiness. A single business to integrate more than one (1) of the permitted types
of Cannabis Businesses and engage in such Commercial Cannabis Activities in the City
from one permitted premises.
CC. Outdoor Cultivation. The Cultivation of Cannabis outside a permanent enclosed
building or structure.
DD. Owner. Having the same meaning as set forth in Business and Professions Code section
26001(am), as it may be amended from time to time, and shall generally mean an
individual or entity with at least a twenty percent(20%) Ownership interest in a
business engaged in Commercial Cannabis Activity.
EE. Parks. Having the same meaning set forth in the Huntington Beach Zoning and
Subdivision Ordinance Section 204.08 N.
FF. Permittee. The holder of a valid City-issued Commercial Cannabis Permit.
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GG. Premise. A designated structure(s) and land specified in the application that is owned,
leased, or otherwise held under the control of the applicant or licensee where the
commercial cannabis activity will be or is conducted. The premises shall be a
contiguous area and shall only be occupied by one licensee.
HH. Processing. A Cultivation site that conducts only trimming, drying, curing, grading,
packaging, or labeling of Cannabis, industrial hemp and non-manufactured Cannabis
Products.
Il. Responsible Person. Having the same meaning set forth in Section 1.18.020 of the
Huntington Beach Municipal Code.
JJ. Retail, Retailer, or Retail Facility. A licensed premises where Cannabis, Cannabis
Products, or devices for the use of Cannabis or Cannabis Products are offered, either
individually or in any combination for Retail sale, including an establishment that
delivers Cannabis or Cannabis Products as part of a Retail sale.
KK. Schools. Having the same meaning set forth in the Huntington Beach Zoning and
Subdivision Ordinance Section 204.08 Q.
LL. State. The State of California.
MM. Tax Administrator. The City Manager of the City of Huntington Beach or his or her
designee.
NN. Testing Laboratory. A Cannabis Business that(i) offers or performs tests of Cannabis
and Cannabis 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; (v) is licensed by the California Department of Cannabis Control
or other State agency required by law.
00. Track and Trace System. A program for reporting the movement of cannabis and
cannabis products through the distribution chain established by the California
Department of Cannabis Control in accordance with section 26067 of the Medicinal
and Adult-Use Cannabis Regulation and Safety Act.
PP. Youth Center. Any public or private facility that is primarily used to host recreational
or social activities for minors such as private youth membership organizations,
nonprofit organizations primarily serving youth, or clubs, social service teenage club
facilities. "Youth Center" shall not include any private martial arts, yoga, ballet, music
or similar studio of this nature nor shall it include any private athletic training facility,
pizza parlor, restaurant, video arcade, or doctor's office primarily serving children.
5.130.050 Procedures to Conduct Commercial Cannabis Activity at a Commercial
Cannabis Facility
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A. Commercial Cannabis Permit Required.
A Commercial Cannabis Permit shall be required for each type of Commercial Cannabis
Activity. Only one Permit type per Owner shall be issued.
In order to operate in the City, Commercial Cannabis Businesses must also obtain:
1) A valid City business license to conduct such business or activity;
2) A valid Commercial Cannabis Permit issued by the City of Huntington Beach
pursuant to this Chapter;
3) A valid Cannabis License issued by the State of California authorizing such
business or activity in the City;
4) A valid certificate of occupancy issued by the City's Community Development
Department to conduct the Commercial Cannabis Activity at the premises
identified in the permit; and
5) Commercial Cannabis Operating Agreement with the City.
B. Commercial Cannabis Operating Agreement Required.
Applicants for a Commercial Cannabis Permit shall be required to enter into a
Commercial Cannabis Operating Agreement with the City setting forth the contractual
obligations under which the Commercial Cannabis Facility will operate that are in
addition to any and all other requirements of this Chapter.
C. Application Process and Requirements
1) [TBD: The City Manager or the City Council] is authorized to prepare and
promulgate a City's Commercial Cannabis Regulations that govern the application
process and requirements.
2) Any individual or entity that seeks to operate a Commercial Cannabis Facility shall
submit an application on a form prepared by the City together with a non-refundable
application fee established by resolution of the City Council.
3) Application Submittal Time Frame: the Application Period(s) will be established by
the City Manager. Any individual may only submit one application per permit type,
per Application Period, for a Commercial Cannabis Permit.
4) In part, any individual or entity that seeks to operate a Commercial Cannabis Facility
must meet the following MIMIMUM qualifications to be placed on the Eligibility
List:
a. All application documents completed and submitted within the Application
Period and applicable fees paid.
b. Sworn affidavit and evidence that the proposed location of the Cannabis
Business on the application meets the zoning criteria established in this
Chapter and in the zoning code.
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c. Proof of Ownership or control of the site upon which the Cannabis Business is
to operate.
d. Proof of having at least 4 current Commercial Cannabis Business permits or
licenses (various types) in California, one of which must be retail.
e. A refundable security deposit of a fixed amount set forth by the City Council
via resolution.
f. Proof of having identified at least one 501(c)(3) nonprofit organization who
has been in operation for three (3) years as a local philanthropy partner that
benefits the City of Huntington Beach.
g. Demonstrate that the Permittee has all applicable federal, State, county or City
license or permits, etc.
Applications that do not meet such minimum qualifying requirements will not receive
further consideration in the approval process. Applications on the Eligibility List shall
be reviewed by the City Manager in accordance with the standards and criteria set
forth in the City's Commercial Cannabis Regulations. Because the Commercial
Cannabis Permit confers no property interest, the Applicant is hereby informed that
the City Manager at his or her sole discretion may approve or deny a permit
Applicant.
Notwithstanding, when reviewing the applications for ultimate permit approval, such
review will be based on a merit point system or equivalent quantitative evaluation
scale tied to each set of review criteria as further defined in this ordinance or
regulations, including but not limited to:
a. Ownership structure including all financial interest holders
b. Owner qualifications including prior successful experience operating a
commercial Cannabis Business in compliance with all local and State Law
requirements
c. Site plan/diagram of the premises
d. Capitalization plan
e. Business and operation plan that may include Employee training, ordering
systems, and other standard operating procedures, including inventory control
procedure, quality control procedure, transportation process, Cannabis waste
management procedures, etc.
f. Traffic/Circulation/Parking/Curbside Pick-up Plan
g. Safety and security plan for the Commercial Cannabis Facility
h. Community Benefit Plan
i. Local Hire/Sourcing programs
j. Labor Peace Agreement
k. Other criteria established by the City's Commercial Cannabis Regulations.
5) The specific criteria and weighting (points per criteria) for each permit category will
be determined prior to the commencement of the Application Period and posted
publicly. The City's Commercial Cannabis Regulations shall establish a minimum
qualification score threshold for Applicants to meet before issuing any permits.
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6) The City Manager may establish a selection committee comprised of at least three
evaluators from the City and/or external consultants who will review and score
applications based on the criteria set forth, conduct interviews if necessary, and
determine top applications in each permit category.
7) The City reserves the right to reject any or all applications. The City further reserves
the right to request and obtain additional information from any Applicant submitting
an application.
D. City Manager Authority to Approve or Deny Permit
The City Manager shall either deny, approve, or conditionally approve an application for
a Commercial Cannabis Permit. The City Manager's decision shall be final. The City
Manager shall provide the Applicant with written notice of his/her decision.
1) If an application is denied, a new application may not be filed for one (1)year from
the date of the denial.
2) If a Commercial Cannabis Permit is approved or conditionally approved, it shall be
valid for a term of twelve (12) months from the date it is issued, unless renewed as
provided in this Chapter. A Commercial Cannabis Permit does not confer any
property interest, entitlement or vested right and shall not run with the land.
3) In addition to the Regulations, the City Manager has the authority to deny an
application and/or reduce points awarded for a Commercial Cannabis Permit for the
reasons, including but not limited to:
a. The Applicant has not provided the information required on the application form.
b. The Applicant has not met a minimum set of points required and set by the City's
Commercial Cannabis Regulations.
c. The Applicant has falsified or made misrepresentations in the application.
d. The Applicant has previously failed to comply with any of the requirements set
forth in this Chapter.
e. The Applicant has failed to comply with State Law and/or remit taxes as required
by the Revenue and Taxation Code.
f. The Applicant has denied the City or the State access to the licensed premises.
g. The Applicant has previously operated an illegal Cannabis dispensary or business.
h. The approval could result in harm to the public health, safety, or welfare.
E. Expiration and Renewal Process and Requirements
1) A Commercial Cannabis Permit is valid for one (1) year from the date of issuance. It
may not be transferred, does not run with the land, and is valid only at the original
business site unless a transfer is approved by the City pursuant to the requirements of
this Chapter and the Huntington Beach Zoning and Subdivision Code (HBZSO).
Once a permit is obtained, the Permittee can apply annually for renewal. Renewal of
permits is not guaranteed.
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2) An application for renewal of a Commercial Cannabis Permit shall be filed at least
sixty (60) calendar days, but not more than 120 calendar days,prior to the expiration
date of the current Permit on an application renewal form prepared by the City
Manager. The City's Commercial Cannabis Regulations shall set forth the renewal
application process, including the applicable deadlines and renewal requirements.
The renewal application shall generally request or require confirmation of
information required for new applications, and may be subject to the same site
inspection and City staff approvals required for new applications.
3) The Applicant shall pay a fee in an amount to be set by the City Council resolution to
offset the cost of processing a renewal application, together with any costs incurred
by the City to administer the program created under this Chapter. The City Council
shall establish the renewal fee by resolution.
4) An application for renewal of a Commercial Cannabis Permit may be denied for any
of the following reasons:
a. The application was filed less than sixty (60) days or more than 120 days before
expiration of the Permit.
b. The Commercial Cannabis Permit or State License has been suspended or
revoked at the time of the application.
c. The Commercial Cannabis Facility has not been in regular and continuous
operation in the ninety (90) days prior to the renewal application.
d. The Applicant has failed to remit taxes as required under the Huntington Beach
Municipal Code Chapter 5.25 Cannabis Business Tax.
e. The Commercial Cannabis Facility has failed to conform to the requirements of
this Chapter, the City's Commercial Cannabis Regulations, its Commercial
Cannabis Operating Agreement, the conditions imposed as part of zoning
requirements, or State Law.
£ The Applicant fails or is unable to renew its State License.
g. For any of the reasons set forth in Chapter 5.130.050(E)(3).
5) The City Manager is authorized to make all decisions concerning the renewal of a
Commercial Cannabis Permit. In determining whether to renew a Permit, the City
Manager is authorized to impose additional conditions on the Permit, if deemed
necessary to ensure compliance with State or local laws and regulations or to preserve
the public health, safety or welfare.
6) The City Manager's decision to approve, conditionally approve, or deny an
application to renew a Commercial Cannabis Permit may be appealed as provided in
this Chapter.
7) If a renewal application is denied, a person may file an application for a new Permit
pursuant to this Chapter no sooner than one (1) year from the date of the denial.
F. Revocation, Modification and Suspension Requirements.
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1) Commercial Cannabis Permits may be suspended, revoked or modified by the City
Manager based upon any of the following:
a. A violation of any State or local law, rule, regulation requirement and/or standard,
including but not limited to the provisions of this Chapter, the City's Commercial
Cannabis Regulations, the Commercial Cannabis Operating Agreement, or the
Huntington Beach Municipal Code.
b. A determination that the Applicant falsified or misrepresented information on its
Commercial Cannabis Permit application or renewal application.
c. An unauthorized transfer of Ownership or change of location of a Commercial
Cannabis Facility.
d. A determination that there is an imminent threat to public health, safety, or
welfare of the City.
2) Suspension of a State License shall immediately suspend the ability of a Commercial
Cannabis Facility to operate within the City. The City may, at its sole and absolute
discretion, reinstate the Commercial Cannabis Facilities Permit if the State reinstates
or reissues the State License. Should the State revoke or terminate the License of a
Commercial Cannabis Facility, such revocation or termination shall automatically
revoke or terminate the Commercial Cannabis Permit and the ability of a Commercial
Cannabis Facility to operate within the City of Huntington Beach. Upon notification
by the State, a Permittee shall notify the City immediately in writing of State
proceedings to revoke or suspend a State License. If a Permittee fails to do so, the
City Manager may impose a daily fine not to exceed one thousand dollars ($1,000)
for each day notification is delayed.
3) The City Manager's determination to suspend, modify, or revoke a Commercial
Cannabis Permit shall be effective immediately upon written notice from the City,
and shall not be stayed in the event an appeal is filed.
4) The City Manager's determination to suspend, modify or revoke a Commercial
Cannabis Permit may be appealed as provided in this Chapter.
5) During a period of license suspension, the commercial Cannabis Business shall
remove from public view all Cannabis and Cannabis Products, and shall not conduct
any Commercial Cannabis Activity.
6) Pursuant to Business and Professions Code Section 26200 (c), the City Manager or
his or her designee shall promptly notify the California Department of Cannabis
Control upon the City's revocation of any local license, permit, or authorization for a
State Licensee to engage in Commercial Cannabis Activity within the City.
G. Transfer of Commercial Cannabis Facility or Permit
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1) It shall be unlawful for any person to transfer a Commercial Business Permit to a
location not specified on the permit, or to operate a Cannabis Business at any place or
location other than that identified on the permit issued pursuant to this chapter.
2) Any transfer a Commercial Cannabis Permit, or change in the ownership, business
structure, or operational control of a Commercial Cannabis Facility, either directly or
indirectly, in violation of this section shall be null and void except the cases set forth
by this chapter.
3) No transfer shall occur pursuant to this Section for three (3) years from the date a
Permit was first issued to an Owner or operator of a Commercial Cannabis Facility.
4) No Owner or Permittee shall transfer his/her/its Ownership or control of a
Commercial Cannabis Facility or any rights acquired under a Commercial Cannabis
Permit, to another person without written notification to the City. Such notification
shall be provided a minimum of sixty(60) days before the proposed transfer and shall
be accompanied by a new Commercial Cannabis Transfer Permit application that
contains the information required in the City's Commercial Cannabis Regulations,
which shall be similar to the information required of Applicants for new Permits. The
application must be scored above the lowest final average score of the successful
Applicants from the previous Application Period and the minimum qualification score
threshold.
Prior to or concurrent with the submission of said application the transferee shall
obtain all required business licenses, post all required security deposits, acquire all
necessary, certificates, permits or other licenses allowing the doing of any act that
the person paying or holding the same would not otherwise be entitled to do; and
any permit, license, variance or other instrument of approval or evidence that any
conditions exist as required by any other section of this Code or by any statute or
code provisions of the State must first be obtained or complied with before the
doing of any act or thing for which it is required.
The City Manager shall have sixty (60) days from receipt of the required information
to make a determination on the transfer request, which time shall not begin to run
until a completed transfer application packet is submitted to the City. The City
Manager may approve, deny, or conditionally approve the transfer request.
5) A fee as established by resolution of the City Council shall be payable for each such
application involving transfer of any interest in an existing commercial Cannabis
business. The provisions of this section shall apply to any person, firm, or entity
applying for a Commercial Cannabis Permit for premises previously used as such
establishment.
6) Any such transfer of any interest in an existing commercial Cannabis Business or
any application for an extension or expansion of the building or other place of
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business of the commercial Cannabis business shall require inspection and
compliance set forth in this Chapter.
H. Relocation of Commercial Cannabis Facility
1) Neither a Commercial Cannabis Facility nor its Permit shall be transferred or
relocated from one premises to another without the City Manager's prior written
consent, which must be requested a minimum of ninety (90) days before the proposed
relocation. The request will be processed in accordance with the City's Commercial
Cannabis Regulations and the City Manager may require the Permittee to submit
additional application materials for the new location. A Permittee shall not operate
from a new location unless and until it applies for and receives written approval from
the City Manager, who has discretion to approve, conditionally approve, or deny the
request.
2) A transfer or relocation of a Commercial Cannabis Facility or its Permit from one
premises to another in violation of this section shall be null and void and is grounds
for suspension or revocation of the Permit.
3) Any transfer or relocation location that occurs pursuant to this Section shall be
subject to a transfer fee that is established by the City Council by resolution.
I. Appeal Procedure
1) Qualification and ranking decisions of the City concerning any aspect of the
qualification or ranking process to obtain a Commercial Cannabis Permit shall not be
appealable and may not be challenged by writ or mandate to any superior court.
2) Unless specifically provided elsewhere to the contrary, whenever an appeal is
provided for in this Chapter from a decision of the City Manager or his/her
designee(s), the appeal shall be conducted as prescribed in this Chapter.
3) Within ten (10) calendar days after the date of a decision of the City Manager or
his/her designee(s) to revoke, suspend, or not to renew a Commercial Cannabis
Permit, a Permittee may appeal such action by filing a written appeal with the City
Clerk setting forth the reasons for contesting the decision.
4) At the time of filing, the appellant shall pay the designated appeal fee established by
resolution of the City Council.
5) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing
before the City's Hearing Officer. The Hearing Officer shall hear the matter de novo,
and shall conduct the hearing pursuant to the procedures set forth by the City.
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6) The appeal shall be held within a reasonable time after the date the appeal is filed.
The City shall notify the appellant of the time and location of the hearing at least ten
(10) days prior to the date of the hearing.
7) At the hearing, the appellant may present any information it deems relevant to the
decision appealed. The formal rules of evidence and procedure applicable in a court
of law shall not apply to the hearing.
8) At the conclusion of the hearing the Hearing Officer may affirm, reverse or modify
the decision appealed. The decision of the Hearing Officer shall be final.
5.130.060 Number of Commercial Cannabis Permits & Location
A. Maximum Number of Commercial Cannabis Permits
The City Manager shall be authorized to issue the following number of Commercial
Cannabis Permits for each type of Commercial Cannabis Activity:
1) Retail: Up to 10 total Commercial Cannabis Permits for storefront Retailer, Delivery
only, and storefront/Delivery Retailers may be issued. No more than one (1) Retail
Permits shall be issued to the same Owner(s).
2) Indoor Cultivation: There shall be no limit on the number of Cannabis Business
Permits issued for Indoor Cultivation.No more than one (1) Indoor Cultivation
Permits shall be issued to the same Owner(s). A Commercial Cannabis Permit for
Indoor Cultivation shall not authorize any individual to engage in any Outdoor
Cultivation.
3) Manufacturing: There shall be no limit on the number of Cannabis Business Permits
issued for Cannabis Manufacturing. No more than one (1) Manufacturing Permits
shall be issued to the same Owner(s).
4) Distribution: There shall be no limit on the number of Cannabis Business Permits
issued for Cannabis Distribution. No more than one (1) Distribution Permits shall be
issued to the same Owner(s).
5) Testing Laboratories: There shall be no limit on the number of Cannabis Business
Permits issued for Cannabis Testing Laboratories. No more than one (1) Testing
Laboratory Permits shall be issued to the same Owner(s).
6) Outdoor Cultivation including but not limited to cultivation in greenhouses, hoop
structures, and by mixed light: Prohibited
7) Microbusiness: Prohibited.
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B. Location and Separation Requirements
A Commercial Cannabis Facility must meet the Separation Requirements (Permitted
Zones and Separation Requirements) set forth by the Huntington Beach Zoning and
Subdivision Ordinance (HBZSO) Section 204.18 to obtain a valid Commercial Cannabis
Permit and operate in the City.
5.130.070. Consumption or Use Prohibited on Site and In Public—Cannabis event
prohibited.
A. It is unlawful for any person or entity:
1) To sell, give, exchange, dispense, or distribute Cannabis or Cannabis Products for on-
site consumption, use, or sampling on any business premises except trade samples
given to other Permittees as the State allows; or
2) To consume or use Cannabis or Cannabis Products, whether by smoking, vaping,
inhaling, eating, drinking or any other means:
i. In, on or about the premises of any commercial Cannabis Business;
ii. In, on or about any publicly owned or operated property; any place open to
or accessible by the public; any place smoking is prohibited; or any place
visible from any public place with normal unaided vision;
iii. In, on,or about any other business, club, cooperative or commercial event,
regardless if open to the public or only to members, ticket holders or event
invitees;
iv. Any location where an entry or other fee is charged to attendees or to the
host or where a thing of value or consideration is received or exchanged,
directly or indirectly, for or related to the provision of Cannabis.
B. It is unlawful for any person to conduct a Cannabis Event in the City.
C. Outdoor Commercial Cannabis Activities prohibited. Outdoor storage, harvesting, dying,
processing, or manufacturing of commercial Cannabis or Cannabis Products is
prohibited.
5.130.080. Minors
A. No person under twenty-one (21) years of age shall be allowed on the premises of a
commercial Cannabis Business even if accomplished by a parent or guardian.
B. No person, business, or other entity conducting a Commercial Cannabis Activity shall
employ any person who is not at least twenty-one (21) years of age.
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5.130.090. Sale of Cannabis Products or Cannabis accessories by vending machine
prohibited.
A. No person shall locate, install, keep, maintain or use, or permit the location, installation,
keeping, maintenance or use on his, her or its premises of, any cannabis vending machine
used or intended to be used for the purpose of selling any Cannabis, Cannabis Products,
or Cannabis accessories therefrom.
B. No person, business, or other entity shall sell, offer for sale, or display for sale any
Cannabis Product by means of a self-service display of vending machine. All cannabis
products shall be offered for sale exclusively by means of vendor/employee assistance.
5.130.100. Regulations and Inspection
A. Commercial Cannabis Regulations
[TBD: The City Manager or the City Council] is authorized to establish City's
Commercial Cannabis Regulations governing the Commercial Cannabis Permit
application and renewal criteria and processes, the regulation and oversight of
Commercial Cannabis Facilities, the operational requirements imposed on such Facilities,
and any other subject determined to be necessary to carry out the purposes of this
Chapter. Compliance with the City's Commercial Cannabis Regulations is required to
engage in Commercial Cannabis Activity, and failure to do so is grounds for revocation,
suspension or non-renewal of a Commercial Cannabis Permit, as well as the other
penalties set forth in this Chapter.
B. Inspection
The City Manager is charged with enforcing the provisions of this Chapter and may enter
the location of a Commercial Cannabis Facility at any time, without notice, and inspect
the location of any Commercial Cannabis Facility as well as any records required to be
maintained pursuant to this Chapter or under applicable provisions of State Law.
C. Commercial Cannabis Facilities are subject to routine fire and life safety inspections at
the inspection frequency identified in the Huntington Beach Fire Department's
Community Risk Assessment.
5.130.110. Recordkeeping and Reporting
A. Maintenance and City Access to Records: All records shall be maintained by the
commercial Cannabis Business for a period of at least five (5) years and shall be made
available by the commercial Cannabis Business to an authorized City of Huntington
Beach representative upon request. In addition to all other formats that the commercial
Cannabis Business may maintain, these records shall be stored by the business at the
location in a printed format in a fire-proof safe or filing cabinet. Any loss, damage or
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destruction of the records shall be reported to the Police Department within twenty-four
(24) hours of the loss, destruction or damage.
B. Audit. It shall be the duty of every Owner and operator of a Commercial Cannabis
Business to keep all records as may be necessary to determine the amount of tax due
hereunder. The Tax Administrator shall have the right to inspect such records at all
reasonable times. At the time of permit renewal, each Owner and operator shall submit
to the City a financial audit of the business's operations conducted by an independent
certified public accountant. Each Permittee shall be subject to a regulatory compliance
review and financial audit as determined by the Chief Finance Officer or his/her
designee.
C. Owner& Employee Registry. Each Owner and operator of a Commercial Cannabis
Business shall maintain a current register of the names and the contact information of
anyone owning or holding an interest in the business, and separately of all the officers,
managers, Employees, agents, and volunteers currently employed or otherwise engaged
by the business. The register shall be provided to the City upon a reasonable request.
D. Reporting and Tracking of Product and of Gross Sales. All Commercial Cannabis
Businesses shall create and maintain an active and functional account within the Track
and Trace system prior to engaging in any Commercial Cannabis Activity. A commercial
Cannabis Business must record all Commercial Cannabis Activity in such system as
required by State Law.
E. Each commercial Cannabis Business shall have in place a point-of-sale tracking system
to track and to report on all aspects of the commercial Cannabis Business including, but
not limited to, such matters as Cannabis tracking, inventory data, and gross sales (by
weight and by sale) and shall ensure that such information is compatible with the City's
recordkeeping systems. The system must have the capability to produce historical
transactional data for review by the City. All information provided to the City pursuant to
this subsection shall be confidential and shall not be disclosed, except as may otherwise
be required under law.
5.130.120. Fees Deemed Debt to City of Huntington Beach
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt
to the City that is recoverable via an authorized administrative process as set forth in the
Huntington Beach Municipal Code, or in any court of competent jurisdiction.
5.130.130. Permit Holder, Owners, Operators Responsible for Violations
The person to whom a Permit is issued pursuant to this Chapter, as well as each and every Owner
and operator of a Commercial Cannabis Facility, shall be responsible for all violations of this
Chapter, State Law, the Huntington Beach Municipal Code and/or of the City's Commercial
Cannabis Regulations by the Facility, whether committed by the Permittee or any Employee or
agent of the Permittee.
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5.130.140. Violations Declared a Public Nuisance
Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a
public nuisance.
5.130.150. Suspension of Service for City Purposes or for Violations of Law
1. The City reserves the right at any time to shut off the electric or water service for the
purpose of making extensions or repairs or for other purposes. The City may
discontinue water or electric service to any premises which is being used in violation of
any ordinance of the City or of any law of the State of California or of the United States
and shall not be required to re-establish the service until the unlawful use ceases and the
fee for reconnection has been paid.
2. The City reserves the right to board any doors and windows associated with any
Commercial Cannabis Activity operation that is observed to be operating without
approval and issuance of a Commercial Cannabis Permit and Certificate of Occupancy.
5.130.160. Each Violation a Separate Offense
Each and every violation of this Chapter shall constitute a separate violation and shall be subject
to all remedies and enforcement measures authorized by the Huntington Beach Municipal Code.
Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive
relief, with any Permit issued pursuant to this Chapter being deemed null and void, and the City
entitled to disgorgement or payment of any monies unlawfully obtained, costs of abatement,
costs of investigation, attorney fees, and any other relief or remedy available at law or in equity.
The City may also pursue any and all remedies and actions available and applicable under State
and local laws for any violations committed by the Commercial Cannabis Facility Owner,
operator or persons related to, or associated with,the Commercial Cannabis Facility.
Additionally, when there is determined to be an imminent threat to public health, safety or
welfare, the City Manager or the Chief of Police or his/her designee(s), may take immediate
action to temporarily suspend a Commercial Cannabis Permit issued by the City, and close down
the Commercial Cannabis Facility pending a hearing before the City Hearing Officer.
5.130.170. Criminal Penalties
Each and every violation of the provisions of this Chapter may, in the discretion of the City
Attorney, be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed
one thousand dollars ($1,000) or imprisonment in the county jail for a period of not more than
twelve (12) months, or by both such fine and imprisonment. Each day a violation is committed or
permitted to continue shall constitute a separate offense.
5.130.180 Administrative Penalties
201Page
900
The fine for violations of any provision of this chapter shall be one thousand dollars ($1,000.00)
for each violation. Each separate day in which a violation exists may be considered a separate
violation.
The fine amounts set forth above may be modified, from time to time, by city council resolution.
In no event shall such fine amounts exceed the amounts authorized by State law.
5.130.190 Remedies Cumulative and Not Exclusive
The remedies provided herein are not to be construed as exclusive remedies. The City is
authorized to pursue any proceedings or remedies provided by law.
SECTION 2. Further, no Commercial Cannabis Permit applications shall be accepted by
the City until administrative regulations and processes are approved by the City Manager and
published on the City website.
SECTION 3. Severability. If any section of this Ordinance is determined to be
unenforceable, invalid, or unlawful, such determination shall not affect the enforceability of the
remaining provisions of this Ordinance.
SECTION 4. CEQA. This ordinance is exempt from the California Environmental
Quality Act pursuant to Title 14 California Code of Regulations Sections 15061(b)(3) and 15378,
in that it can be seen with certainty that the Municipal Code amendments propose no activity that
may have a significant effect on the environment and will not cause a direct physical change in
the environment or a reasonably foreseeable indirect physical change in the environment.
SECTION 5. This ordinance shall become effective 30 days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereof held on the day of 92022.
211Page
901
[Disclaimer: This document is still under administrative review and is subject to change.]
DRAFT
EXHIBIT 1
HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE
CHAPTER 204 USE CLASSIFICATIONS
204.02 Applicability
Not Amended.
204.04 Uses Not Classified
Not Amended
204.06 Residential Use Classifications
Not Amended.
204.08 Public and Semipublic Use Classifications
Not Amended.
204.10 Commercial Use Classifications
Not Amended.
204.12 Industrial Use Classifications
Not Amended.
204.14 Accessory Use Classifications
Not Amended.
204.16 Temporary Use Classifications
Not Amended.
204.18 Prohibited Uses Mediea-1 M ar-i;,,.,n Businesses
A. Purpose.in order-to expressly infor-m the publie that any distribution of mar-quana4y
Medical Mar-quana Businesses, Golleetives, Cooperatives or Dispensaries, ete.,iS pFohibited in
the City of Huntington Beaeh,the City is adding this express prohibition to the Zoning and—
Subdivision —Minanee.
B. Definitions.L`OF pDr-poses of this seetion the following teFm is defined:
1•, .tit sfr et fa ;1;t„ ehielo business,sty idenee, or- flag f, ;1;t,.
used,in full „ in aFt as a,.1aee at o in whieh marijuana is Ala traded a
bar-ter-ed fOF iD any way,made available,loeated,stored, displayed,plaeed OF eultivat
C. Ai edi .,l ram., ., Businesses, Colleetives, Cooperatives or-DispensaFies. ATiedia sal
902
named,matter-how so
is not a permitted use in any zoning distriet or speeifie plan in the City.
it shall be unlawful for any per-son oF entit�,to 7 manage, establish,
Business,Colleetive, 7
established, it shall be unia
for any per-son to permit to be eondueted, operated,
owned or managed as a
7 employee, 7 7 7
Business, Colleetive,
CoopeFative or-DispeftSaFy in the City.
D. Public Nuisanee.Any use or-eondition eaused or permitted to exist in violation of any of
the provisions of this ar-tiele is hereby deelaFed a publie nuisanee and may be abated by t
a. Enforcement.
City,1. Violation of this Chapter 204 of the Huntington Beaeh Zoning and Subdivision
Munieipal Code ineluding the Zoning and Subdivision Or-di --
2. Nothing in this ar-tiele in any way limits any other-r-emedies that Fnay be available to
the 7
for-violations of this artiele.
7 but aFe not limited to,
.ad..a;.a;str.atiye ^;t^tions (4059 511e Al1CQ 6nc A13 7 10/17 A175 3��0 4183 10/19)
7 7 7 7
A Daar.a.as., In order-to expressly inf..,-m the publ;..that., ..1^OF distribution of..on
Businesses, 7
Dispensaries,Cooperatives or •7
howeveF named is prohibited in the City of Huntin"
Beaeh7 the Cit�,is adding this express prohibition to the Zoning and Subdivision •
B. Definitions. Unless othenwise speeifieally defined herein,
the definitions eontained within
Adult Use of Mar;;aa.a .a A..t shall apply to this Or-d;aa.aaa...a
• Commemial non fnedieal fHaFquana business, eolleetive,
c000per-ative or-
dispensary means any 7 7 faeility,vehiele, business,store. eo OP9
residence, or similar faeility used, 7
(inehad;.ag m .a for- e at;.aaa.al use) ; sold, r.a ^tdd7^xe .a.a.a^hd7 bartered f r in Hny
way, made available,loeated,stoFed, displayed,plaeed oF eultivated, •
foregoing if used in eonneetion with the sale or-distribution of non medieal MaFqUaffa.
neluding any of t
concentrate,a pr-oeess whereby the plant mateFift!has been tr-ansfoFmed into a 7
heat not limited to aatr.at.ad .ah; edible t.a f
7 c7^ ^ ^ r o pr-oduet eontaining
k or concentrated eannabis and other-ingredients.
C. Businesses,na 7
Dispensaries. Cooperatives oF
Business,ana 7
CoopeFatiN'e Or
903
business,Dispensary or-any other-sueh
no matter how so named,
zoning distr-iet or-speeifie plan in the City.it shall be unlawful for-any per-son or-entity to is not a permitted use in any
manage, establish, 7
Colleetive7 7
established, it shall be unlawful for any per-son to permit to be
eondueted, operated, 7 owneF, employee,
eontFaetor-7 agent oF volunteeF, 7
Business, Colleetive,
Cooperative OF DiSpenSaFy in the C4ty-.
D. Non Medieal Alarquana Deliveries. Delivery of non medieal mar-quana is not a permitted
or entitlement foF 7 7
establishment, shall be appr-oved or-issued foF the
E. Publie Nuisanee.Any use or-eondition eaused or-peirmitted to exist in violation of any o
F. Enforcement.
1 Violation of this Chanter 204 of the Huntington Reaeh Zoning and Subdivision
City,Alunieipal Code ineluding the Zoning and Subdivision Or-di - -
2. Nothing in this seetion in any way limits any other remedies that may be available to
the oF any penalty that may be imposed by the City,fOF ViOlatiOHS Of this seetion.
cneh additional remedies;nelnae but a of limited to f er
7 7 netiye r elie
'
administrative e;tat;ons (4137 10/17 A1^75 3/1� 4142_10/19)
7 7
Cultivation-
A. Purpose. purpose and intent of this seet;on is to regulate the enitiyation of non_
rnov
e.lieal m nanner that n otents the health, and. ,safety and of the
outside,eommunity. Health and Safety CodeSeetion 11362.2 authorizes the City to adopt reason
aeeessory StFuetur-e to a pr-ivate r-esidence. That section also authorizes the City to compketely
as long as the California Attor-oey
General has not made a determination that the non medieal use of mar-quana is!awful in
This seetion is not intended to interfere with the right of an individual 24 yeftFS of age or-ol-d—e-r-
t possess ,lt;.ateinon-medieal MaFij .ide.l for by Proposition 64 This et;a
is at intended to n.le ,i lent legal authority to grow fion ait is intended simply to impose reasonable regulations on the cultivation of H
uia,ui
7
Furthermore,
it is the purpose and intent of this seetion to r-equiFe that non medieal ma
allowed to be nit,.ate.l pursuant to Dr s;tion 64 only he slo
"arui a.u7
enelosed7 and ventilated 7 so as not to be visible to the general 7
health, to pr-ovide for
the safety and welfare of the 7
properties;plants from impaeting adjacent
and to ensure that -own in the C"
904
B. Definitions For-the purposes of this soot:.... the following definitions shall apply Hinle�
the eontext eleady indieates other-wise.if a WOFd is not defined in this seetion, and not
other-wise defined in state law,the eommon and OFdiflaFy MeaffiRg of the word shall apply-.
�. Cultivation means the planting, harvesting .a.-.�;�...�. 0
f R Rf 7
i plants of any part thereof.-
2. Fully enelosed and seeur-e structure means a spaee within a building that eomplies
with the applieable Building Code and Zoning and Subdivision OFdinanee, and has a
eomplete r-oof enelosur-e supported by eonneeting walls extending Ifom the ground to t
r-o
of a foundation slob o equivalent hose to wh;eh the flee.•: seeur-ed by belts ofsifni
attaehments,is seeur-e against unauthorized f
through, and is aeeessible only through one of
more loeliable door-s.Walls and roof must be eonstfueted of solid mateAMS that eannOt
be easity broken and must be eonstrueted with non tFaRSpar-entmaterial.
2 indoo,.� ... ;ide a ully enelooe.l en seeure ot.-..tur-e o .within o side„t:el
'. fully a.arcaaa
oft
4. No ea; el ,,, mar-quana that; intended to he used for
ea:eel purposes PUFsoa..t to Health and corer.,Cede cootie,. 111362.1 et
• > growing, haFvesting,
drying
or pFoeessing of non medieal mar-quana plants or any part thereof PUFSUaflt tO Health
and Safet-py Code. Seetion 11362.1 et seq., as those
time.
6. Outdoors means y loeot:on within the Cit.,that; not within e_fully enelosed e.,a
seeure motr etuFe
7. Per-son means any individual,partner-ship,e _partnership,f:,. , o ebony joint
stoek > > > eolleetive, eoopefative,
or
...h:..ot:on thereof in whatever-f,-M of eho..oeter
unit,
a mobile home of other simi
dwelling.
C. Cultivation of no„ me.l:eel m The following. ,.lt; shall
,,,,,,,,,,,,,, e err e � s a apply to the
lt' t' of„ edi el maFquana within the Cit.,•
1. Cultivation Not in Complianee-With this Section. it is deelared to be unlawful an-,
7 leasing,
of any par-eel of premises within any zoning district or-speeffie plan in the City to
lt' t non di el ieept a prov:.le.l fO iR th;o Code No peFSOR Othe
than an individual 11 years of age OF older-may engage in the cultivation of non medieat
F
• Outdoof Cultivation.it is unlawful and owning,
City,leasing, 0- -- .I. —1 having possession of any legal pareel o . ithin any zonting
diStFiet of specifie plan in the City tO eaUSe OF allow such par-eel OF premises to be used
for the outdooF eultivation of non medieal mar-**
zoning distriets and speeifie plans of the
exeept for-residential zones,mixed use
905
an approved &t enCe.Anr cQrti iitivi-iuic-hc-ir cviP:iuicc-rith this Sccti
vi
and state law-.
4. indoor Cultiation�a P-rivate.Resid-ogee. The indoor-eultivation of non nedieal
esidential zone, mixed use zone, OF iH a eommer-eial zone on a par-eel o
Vith an approved private residenee, shall only be eondueted within a fully
in eonfor-manee with the following M-i-n-iffl-i-iffl---;t-A-ndaFds:
a. The pr-imaFy use of the property shell he for-a r-esidenee. Non medieal
b. All areas used f. e„ltiy t;o„ of non medieal mar-quana shell a ..1y with the
Huntington Beaeh Munieipal Code ineluding the Zoning and Subdivision
OFdinanee, as well as applieable law.
• indoor grow lightsf
Building, 200 watts per light, and shall eomply with
the Cal&Fnia
EleetFieal and FiFe Codes as adopted by the Cit�,. Lights
fiFe spFinlde
• (CO-,, butane, >
eultivation of non medieal mar-quana must have a ventilation and filtFatiOft SyStefn
installed that shall pr-event mar-quana plant odor-s fFom exiting the interior-of the
str-uetur-e and that shall eomply with the Huntington Beaeh Munieipal foF eultivation of non medieal mar-quana is prohibited.
premises,ineluding the Zoning and Subdivision OFdinanee.
ijuana shall be loeated in the r-ear-yar-d area of the par-eel or-
and m
maintain a minimum 10 foot setbaek f-Fom any property line as well as any o
..lieahle development standards of the zoning list.-iet The. Fd WheFe the f lly
least six feet in height. Thi hall not apply to eultivati Ur-r-ing in a
g. Adequate meehanieal loeiring oF eleetr-oftie seeur-ity systems must be installed as
oFt of the fully e„elosed and seeffe stmeture or-the residential st.-ueta, to
the eommeneement of eultivation.
h. .l Non medieal m „ltiyat,o„ shell he limited to six .,!ants per-
te
n
.iside$Ceor a fully enclosed-and seCur-e StFuet$re. The limit of six plants per-pFiVa
residenee Shall apply FegaFdless of how many individuals reside at the pFiva
r-esidenee.
amine residential stmeture shall remain at all times a Fesidenee, .:ith legal and
functioning eook4ag, sleeping and sanitation f-aeilities with pr-op i - El
egress. These r-ooms shall not be used for non medieal mar-quana effitivation WheFe
eh eultiyatSo„ will prevent the;,-primarya foF a ok4ng of meals, sleeping
906
J. Cultivation of non medieal mar-quana shall only take plaee on impenious
k. FFOM a publie right of way,there shall be no exterior-evidenee of non Medieal
struretur-e or-inside a residential stmetur-e, shall not be aeeessible to per-sons undeF
21 years of agL-
within the residential StFUetur-e shall be obtained and shall be kept on the pFemises,
and available for-inspeetion by the Chief of Poliee or hisiher- designee.
n. A 2AAOB!C- POFtable fire extinguisher that eomplies with the regulations and
standaf!ds adopted by the state fire mar-shal and applieable!am,, shall be kept in the
eultivation o- -- - . - --idential StMetHfe,the portable fire extinguisher shall be
D. Public Nuisanee.Any use or-eondition eaused oF permitted to exist in violation of an),o
n. E ff f .ee nt
City,1. Violation of this Chapter-204 of the Huntington Bearoh Zoning and Subdivision
the Munieipal Code ineluding the Zoning and Subdivision Or-dinanee.
2. Nothing in this seeti I y limits any otheF remedies that may We
available to the or-any penalty that may be imposed by the City,
for-violations
f this Beet;,,.. Sueh additional r-emedies;,,..1„de but., of limited to injunetive
relief of administrative eitations (4 i 37 1 nip 7 4175 3 n o 4183 1 0/ o)
907
EXHIBIT 2
HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE
CHAPTER 211 COMMERCIAL DISTRICTS
211.02 Commercial Districts Established
The purpose of the commercial districts is to implement the General Plan and Local Coastal
Program commercial land use designations. Three commercial zoning districts are established
by this chapter as follows:
A. The CO Office Commercial District provides sites for offices for administrative, financial,
professional, medical and business needs.
B. The CG General Commercial District provides opportunities for the full range of retail and
service businesses deemed suitable for location in Huntington Beach.
C. The CV Visitor Commercial District implements the Visitor Serving Commercial land use
designation within the coastal zone and provides uses of specific benefit to coastal visitors.
More specifically, the CV district provides opportunities for visitor-oriented commercial activities,
including specialty and beach related retail shops, restaurants, hotels, motels, theaters,
museums, and related services.(3334-6/97, 3774-10/07, 4038-12/14, 4174-3/19)
211.04 CO, CG, and CV Districts—Land Use Controls
In the following schedules, letter designations are used as follows:
"P" designates use classifications permitted in commercial districts.
"L" designates use classifications subject to certain limitations prescribed by the "Additional
Provisions" that follow.
"PC" designates use classifications permitted on approval of a conditional use permit by the
Planning Commission.
"ZA" designates use classifications permitted on approval of a conditional use permit by the
Zoning Administrator.
"TU" designates use classifications allowed upon approval of a temporary use permit.
"P/U" for an accessory use means that the use is permitted on the site of a permitted use, but
requires a conditional use permit on the site of a conditional use.
908
Use classifications that are not listed are prohibited. Letters in parentheses in the "Additional
Provisions" column refer to provisions following the schedule or located elsewhere in the Zoning
Ordinance. Where letters in parentheses are opposite a use classification heading, referenced
provisions shall apply to all use classifications under the heading.
CO, CG, and CV Districts: Land Use Controls
P= Permitted
L= Limited(see Additional Provisions)
PC=Conditional use permit approved by Planning Commission
ZA=Conditional use permit approved by Zoning Administrator
TU =Temporary use permit
P/U = Requires conditional use permit on site of conditional use
-= Not Permitted
CO CG CV Additional Provisions
Residential J Q (R)(V
Group Residential PC PC PC
Multifamily Residential - - PC
Public and Semipublic J ( R V
Clubs and Lodges P P -
Conununity and Human Services
Drug Abuse Centers - PC -
Primary Health Care L-11 L-11 Emergency Kitchens - L-2 Emergency Shelters - L-2 -
Residential Alcohol Recovery,General - PC -
Residential Care,General ZA ZA -
Convalescent Facilities ZA ZA Cultural Institutions L-14 L-14 L-14
Day Care,General L-3 L-3 -
Day Care,Large-Family P P - Y
Emergency Health Care L-2 L-2 -
Government Offices P P ZA
Heliports PC PC PC B
Hospitals PC PC -
Park&Recreation Facilities L-9 L-9 L-9
Public Safety Facilities ZA ZA ZA
Religious Assembly ZA ZA PC
Schools,Public or Private PC PC -
Utilities,Major PC PC PC
Utilities,Minor P P P L
Commercial Uses J Q R
909
CO CG CV Additional Provisions
Ambulance Services - ZA -
Animal Sales&Services L-16
Animal Boarding - ZA -
Animal Grooming - P -
Animal Hospitals - ZA -
Animals—Retail Sales - P -
Equestrian Centers CG Zone - PC - (S
Pet Cemetery - PC -
Artists' Studios P P P
Banks and Savings&Loans P P P
With Drive-Up Service P P P
Building Materials and Services - P -
Catering Services P P P
Commercial Cannabis Facilit L-4 L-4 L-4
Commercial Filming P P P (F
Commercial Recreation and Entertainment - PC PC D
Communication Facilities L-13 L-13 L-13
Eating and Drinking Establishments P P P
W/Alcohol ZA ZA ZA N
W/Drive Through - P P
W/Live Entertainment ZA ZA ZA W Y
W/Dancing PC PC PC (H
W/Outdoor Dining ZA ZA ZA X
Food&Beverage Sales - P L-12
W/Alcoholic Beverage Sales - ZA ZA (N
Funeral&Interment Services - ZA -
Laboratories L-1 L-1 -
Maintenance&Repair Services - P -
Marine Sales and Services - P P
Nurseries - ZA -
Offices,Business&Professional P P P
Offices,Medical&Dental P P P
Pawn Shops - ZA -
Personal Enrichment Services L-10 L-10 -
Personal Services P P P
Research&Development Services L-1 ZA -
Retail Sales - P P U V
Secondhand Appliances/Clothing - P -
Swap Meets,Indoor/Flea Markets - PC - T
Swap Meets,Recurring - ZA -
Tattoo Establishments - ZA -
Travel Services P P P
Vehicle Equipment/Sales&Services
Automobile Rentals - L-8 L-8 L-12
Automobile Washing - ZA -
Commercial Parkin - ZA ZA P
Service Stations - PC PC E
Vehicle Equip.Repair - L-5 -
Vehicle Equip. Sales&Rentals ZA ZA - L-12
Vehicle Storage,Impound Yards - PC - AA
910
CO CG CV Additional Provisions
Vehicle Storage,Off-Site Auto Dealers - P/ZA - L-17 BB
Vehicle Storage,Recreational Vehicles - ZA - (CC)
Offices for Vehicle Equip. Sales&Rentals L-15 L-15 -
Visitor Accommodations
Bed&Breakfast Inns ZA ZA ZA (K
Hotels,Motels - PC PC I
Condominium-Hotel - - PC (Z
Fractional Ownership Hotel
Quasi Residential
Timeshares - PC - I
Residential Hotel - PC - J
Single Room Occupancy - PC -
Industrial (Q)(R V
Industry,Custom - L-6 L-6
Accessory Uses J V
Accessory Uses&Structures P/U P/U P/U
Temporary Uses F J V
Animal Shows - TU -
Circus and Carnivals and Festivals - TU -
Commercial Filming,Limited - P P M
Real Estate Sales P P P
Retail Sales,Outdoor - TU TU M
Seasonal Sales TU TU TU M
Tent Event - P -
Trade Fairs - P -
Nonconforming Uses G V
CO, CG, and CV Districts: Additional Provisions
L-1 Permitted if the space is 5,000 square feet or less; allowed with Neighborhood Notification
pursuant to Chapter 241 if the laboratory space exceeds 5,000 square feet.
L-2 Allowed with a conditional use permit from the Zoning Administrator if the space is 5,000
square feet or less; allowed with a conditional use permit from the Planning Commission if the
space exceeds 5,000 square feet. (See Section 230.52, Emergency Shelters.)
L-3 Allowed with a conditional use permit from the Zoning Administrator if the space is 2,500
square feet or less; allowed with a conditional use permit from the Planning Commission if the
space exceeds 2,500 square feet.
L-4 ReseNed. Refer to Section 230.54 Commercial Cannabis Facilities.
NO FURTHER CHANGES TO HBZSO CHAPTER 211 PROPOSED
REMAINDER OMITTED FROM LEGISLATIVE DRAFT
911
EXHIBIT 3
HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE
CHAPTER 212 INDUSTRIAL DISTRICTS
212.02 Industrial Districts Established
Three Industrial zoning districts are established by this chapter as follows:
A. The IG General Industrial District provides sites for the full range of manufacturing,
industrial processing, resource and energy production, general service, and distribution.
B. The IL Limited Industrial District provides sites for moderate- to low-intensity industrial
uses, commercial services and light manufacturing.
C. The RT Research and Technology District provides sites for manufacturing, research and
development, technology, and professional offices in addition to traditional industrial uses.
These three districts will herein be referred to as the "Industrial Districts." (3254-10/94, 4039-
12/14, 4183-10/19)
212.04 IG, IL, and RT Districts—Land Use Controls
In the following schedules, letter designations are used as follows:
"P" designates use classifications permitted in the Industrial Districts.
"L" designates use classifications subject to certain limitations prescribed by the "Additional
Provisions" which follow.
"PC" designates use classifications permitted on approval of a conditional use permit by the
Planning Commission.
"ZA" designates use classifications permitted on approval of a conditional use permit by the
Zoning Administrator.
"TU" designates use classifications allowed upon approval of a temporary use permit by the
Zoning Administrator.
"P/U" for an accessory use means that the use is permitted on the site of a permitted use, but
requires a conditional use permit on the site of a conditional use.
912
Use classifications that are not listed are prohibited. Letters in parentheses in the "Additional
Provisions" column refer to requirements following the schedule or located elsewhere in this
zoning code. Where letters in parentheses are opposite a use classification heading, referenced
provisions shall apply to all use classifications under the heading.
IG, IL, and RT Districts: Land Use Controls
P = Permitted
L = Limited (see Additional Provisions)
PC = Conditional use permit approved by Planning Commission
ZA = Conditional use permit approved by Zoning Administrator
TU = Temporary use permit
P/U = Requires conditional use permit on site of conditional use
- = Not Permitted
Additional
IG IL RT Provisions
Residential
Group Residential PC PC PC (I
Public and Semipublic (A)(L
Community and Human Service Facilities P P P K
Day Care,General ZA ZA ZA
Heliports PC PC PC
Maintenance&Service Facilities ZA ZA ZA
Public Safety Facilities P P P
Religious Assembly ZA ZA ZA
Schools,Public or Private L-6 L-6 L-6
Utilities,Major PC PC PC
Utilities,Minor L-7 L-7 L-7 O
Commercial Uses D L
Ambulance Services ZA ZA ZA
Animal Sales and Services
Animal Boarding ZA ZA ZA
Animal Hospitals ZA ZA ZA
Artists' Studios P P P
Banks and Savings and Loans L-1 L-1 L-1
Building Materials and Services P P P
Catering Services - P P
Commercial Cannabis Facilit L-3 L-3 L-3
Commercial Filming ZA ZA ZA
Commercial Recreation and Entertainment L-2 L-2 PC
Communication Facilities L-12 L-12 L-12
913
Additional
IG IL RT Provisions
Eating&Drinking Establishments L-2 L-2 L-2
w/Live Entertainment ZA ZA ZA (R
w/Alcohol ZA ZA ZA
Food&Beverage Sales ZA ZA ZA
Hospitals and Medical Clinics - PC PC
Laboratories P P P
Maintenance&Repair Services P P P
Marine Sales and Services P P P
Nurseries P P P
Offices,Business&Professional L-10 L-10 L-10 C
Personal Enrichment L-9 L-9 L-9
Personal Services L-1 L-1 L-1
Quasi-Residential PC PC PC J)
Research&Development Services P P P
Sex-Oriented Businesses(regulated by Ch. 5.70) L-11 L-11 L-11
Sex-Oriented Businesses(regulated by Ch.5.60 PC PC PC
Swap Meets,Indoor/Flea Markets PC PC PC P
Vehicle/Equipment Sales&Services
Service Stations L-4 L-4 L-4
Vehicle/Equipment Repair P P P
Vehicle/Equipment Sales/Rentals L-5 L-5 L-5
Vehicle Storage,Impound Yards PC PC PC T
Vehicle Storage,Off-Site Auto Dealers P/ZA P/ZA P/ZA H U W
Vehicle Storage,Recreational Vehicles P/ZA P/ZA P/ZA H (V
Visitor Accommodations ZA ZA ZA
Warehouse and Sales Outlets L-8 L-8 L-8
Industrial See Chapter 204 B L M
Industry,Custom P P P
Industry,General P P P
Industry,Limited P P P
Industry,R&D P P P
Wholesaling,Distribution&Storage
150,000 square feet or less P P P
Greater than 150,000 square feet P P ZA
RT Flex Space - - P
Alcoholic Beverage Manufacturing P ip I P L-13
Accessory Uses
Accessory Uses and Structures P/U P/U P/U C
Temporary Uses
Commercial Filming,Limited P P P S
Real Estate Sales P P P
Trade Fairs P P P E
Nonconforming Uses (F
IG, IL, and RT Districts: Additional Provisions
914
L-1 Only allowed upon approval of a conditional use permit by the Zoning Administrator for a
mixed use project, subject to the following requirements:
A. Minimum site area: three acres.
B. Maximum commercial space: 35% of the gross floor area and 50% of the ground floor
area of buildings fronting on an arterial highway.
C. Phased development: 25% of the initial phase must be designed for industrial
occupancy. For projects over 500,000 square feet, the initial phase must include five
percent of the total amount of industrial space or 50,000 square feet of industrial space,
whichever is greater.
L-2 Permitted only when designed and operated for principal use by employees of the
surrounding industrial development as an ancillary use to a primary industrial use. When
designed for general public use, permitted after considering vehicular access and complying
with minimum parking requirements.
L-3 Reserved. Refer to Section 230.54 Commercial Cannabis Facilities.
L-4 Only fueling stations offering services primarily oriented to businesses located in an
Industrial District are allowed with a conditional use permit by the Planning Commission.
L-5 No new or used automobile, truck or motorcycle retail sales are permitted.
L-6 Only schools offering higher education curriculums are allowed with conditional use permit
approval by the Planning Commission. No elementary or secondary schools are permitted.
L-7 Recycling operations as an accessory use are permitted if more than 150 feet from R
districts; recycling operations as an accessory use less than 150 feet from R districts or
recycling operations as a primary use are allowed upon approval of a conditional use permit by
the Zoning Administrator. See Section 230.44, Recycling Operations.
L-8 Allowed upon conditional use permit approval by the Planning Commission when a single
building with a minimum area of 100,000 square feet is proposed on a site fronting an arterial.
The primary tenant shall occupy a minimum 95% of the floor area and the remaining 5% may be
occupied by secondary tenants.
L-9 Permitted if the space is 5,000 square feet or less; allowed by conditional use permit from
the Zoning Administrator if the space is over 5,000 square feet.
L-10 Accessory administrative, management, regional or headquarters offices incidental to a
primary industrial use within the IG and IL Districts are limited to 10% of the floor area of the
primary industrial use. Accessory office uses incidental to a primary use within the RT District
are limited to 30% of the floor area of the primary use.
Accessory office spaces exceeding the limits above shall require a conditional use permit to the
Zoning Administrator supported by a parking demand study for all uses on site.
915
Medical/dental offices, insurance brokerage offices, and real estate brokerage offices, except for
on-site leasing offices, are not permitted in any Industrial District.
L-11 Allowed subject to the following requirements:
A. A proposed sex-oriented business shall be at least 500 feet from any residential use,
school, park and recreational facility, or any building used for religious assembly
(collectively referred to as a "sensitive use") and at least 750 feet from another sex-oriented
business. For purposes of these requirements, all distances shall be measured from the lot
line of the proposed sex-oriented business to the lot line of the sensitive use or the other
sex-oriented business. The term "residential use" means any property zoned RL, RM,
RMH, RH, RMP, and any properties with equivalent designations under any specific plan.
To determine such distances the applicant shall submit for review a straight line drawing
depicting the distances from the lot line of the parcel of land on which the sex-oriented
business is proposed which includes all the proposed parking and:
1. The lot line of any other sex-oriented business within 750 feet of the lot line of the
proposed sex-oriented business; and
2. The lot line of any building used for religious assembly, school, or park and
recreational facility within 500 feet of the lot line of the proposed sex-oriented
business; and
3. The lot line of any parcel of land zoned RL, RM, RMH, RH, and RMP and any
parcels of land with equivalent designations under any specific plans within 500 feet of
the lot line of the proposed sex-oriented business.
B. The front fagade of the building, including the entrance and signage, shall not be
visible from any major, primary or secondary arterial street as designated by the circulation
element of the General Plan adopted May 1996, with the exception of Argosy Drive.
C. Prior to or concurrently with applying for a building permit and/or a certificate of
occupancy for the building, the applicant shall submit application for Community
Development Department staff review of a sex-oriented business zoning permit with the
drawing described in subsection A, a technical site plan, floor plans and building
elevations, and application fee. Within 10 days of submittal, the Director shall determine if
the application is complete. If the application is deemed incomplete, the applicant may
resubmit a completed application within 10 days. Within 30 days of receipt of a completed
application, the Director shall determine if the application complies with the applicable
development and performance standards of the Huntington Beach Zoning and Subdivision
Ordinance. Said standards include but are not limited to the following:
1. Chapter 203, Definitions; Chapter 212, Industrial Districts; Chapter 230, Site
Standards; Chapter 231, Off-Street Parking and Loading Provisions; Chapter 232,
Landscape Improvements; and Chapter 236, Nonconforming Uses and Structures.
2. Section 233.08(B), Signs. Signage shall conform to the standards of the
Huntington Beach Zoning and Subdivision Ordinance except:
916
a. Such signs shall contain no suggestive or graphic language, photographs,
silhouettes, drawings, statues, monuments, sign shapes or sign projections, or
other graphic representations, whether clothed or unclothed, including without
limitation representations that depict"specified anatomical areas" or"specified
sexual activities"; and
b. Only the smallest of the signs permitted under Section 233.08(B) shall be
visible from any major, primary or secondary arterial street, such streets shall be
those designated in the circulation element of the General Plan adopted May
1996, with the exception of Argosy Drive.
3. Compliance with Huntington Beach Municipal Code Chapter 5.70.
D. The Director shall grant or deny the application for a sex-oriented business zoning
permit for a sex-oriented business. There shall be no administrative appeal from the
granting or denial of a permit application thereby permitting the applicant to obtain prompt
judicial review.
E. Ten working days prior to submittal of an application for a sex-oriented business
zoning permit for staff review, the applicant shall: (1) cause notice of the application to be
printed in a newspaper of general circulation; and (2)give mailed notice of the application
to property owners within 1,000 feet of the proposed location of the sex-oriented business;
and (3) the City of Huntington Beach, Department of Community Development by first class
mail.
The notice of application shall include the following:
1. Name of applicant;
2. Location of proposed sex-oriented business, including street address (if known)
and/or lot and tract number;
3. Nature of the sex-oriented business, including maximum height and square
footage of the proposed development;
4. The City Hall telephone number for the Department of Community Development
to call for viewing plans;
5. The date by which any comments must be received in writing by the Department
of Community Development. This date shall be 10 working days from staff review
submittal; and
6. The address of the Department of Community Development.
F. A sex-oriented business may not apply for a variance pursuant to Chapter 241 nor a
special sign permit pursuant to Chapter 233.
G. A sex-oriented business zoning permit shall become null and void one year after its
date of approval unless:
917
1. Construction has commenced or a certificate of occupancy has been issued,
whichever comes first; or
2. The use is established.
H. The validity of a sex-oriented business zoning permit shall not be affected by changes
in ownership or proprietorship provided that the new owner or proprietor promptly notifies
the Director of the transfer.
I. A sex-oriented business zoning permit shall lapse if the exercise of rights granted by it
is discontinued for 12 consecutive months.
L-12 For wireless communication facilities see Section 230.96, Wireless Communication
Facilities. All other communication facilities permitted.
L-13 Alcoholic Beverage Manufacturing Requirements.
1. Alcoholic Beverage Manufacturing uses without eating and drinking for public sales or
service are permitted.
2. A maximum 1,000 square feet of indoor and/or outdoor eating and drinking area per
business shall be permitted through an Administrative Permit with Neighborhood
Notification pursuant to Chapter 241.
3. Indoor and/or outdoor eating and drinking areas greater than 1,000 square feet per
business shall require a conditional use permit by the Zoning Administrator.
(A) Repealed.
(B) A conditional use permit from the Zoning Administrator is required for any new use or
enlargement of an existing use, or exterior alterations and additions for an existing use
located within 150 feet of an R district. The Director may waive this requirement if there is
no substantial change in the character of the use which would affect adjacent residential
property in an R District.
(C) Accessory office uses greater than the maximum allowable percentage of the floor
area of the primary industrial use shall require a conditional use permit from the Zoning
Administrator and a parking demand study demonstrating the adequate provision of on-site
parking for all uses contained onsite.
(D) In IG and IL Districts only, commercial space excluding business and professional
office, not to exceed 25% of the floor area of the primary industrial use, is allowed with a
conditional use permit from the Zoning Administrator, provided that it is intended primarily
to serve employees of the industrial use, no exterior signs advertise the adjunct use, the
adjunct use is physically separated from the primary industrial use, and the primary
industrial fronts on an arterial.
(E) See Section 241.22, Temporary Use Permits.
918
(F) See Chapter 236, Nonconforming Uses and Structures.
(G) Reserved.
(H) Permitted pursuant to an Administrative Permit if the property is 300 feet or more from
a parcel used or zoned for residential development. Permitted pursuant to a conditional use
permit from the Zoning Administrator if less than 300 feet from a parcel used or zoned for
residential development.
(1) Limited to facilities serving workers employed on-site.
(J) Limited to single room occupancy uses. (See Section 230.46.)
(K) Limited to emergency shelters. (See Section 230.52, Emergency Shelters.)
(L) Development of vacant land and/or additions of 10,000 square feet or more in floor
area; or additions equal to or greater than 50% of the existing building's floor area; or
additions to buildings on sites located within 300 feet of a residential zone or use for a
permitted use requires approval of a conditional use permit from the Zoning Administrator.
The Community Development Director may refer any proposed addition to the Zoning
Administrator if the proposed addition has the potential to impact residents or tenants in the
vicinity (e.g., increased noise, traffic).
(M) Major outdoor operations require conditional use permit approval by the Planning
Commission. Major outside operations include storage yards and uses utilizing more than
one-third of the site for outdoor operation.
(N) See Section 230.40, Helicopter Takeoff and Landing Areas.
(0) See Section 230.44, Recycling Operations.
(P) See Section 230.50, Indoor Swap Meets/Flea Markets.
(Q) See L-11(A) relating to locational restrictions.
(R) Non-amplified live entertainment greater than 300 feet from a residential zone or use
shall be permitted without a conditional use permit. Neighborhood Notification requirements
when no entitlement required pursuant to Chapter 241.
(S) Subject to approval by the Police Department, Public Works Department, and Fire
Department and the Community Development Director.
(T) In all districts, storage areas shall be screened from view on all sides by a solid wall
made of either block, masonry, wood, vinyl or other similar material. The wall shall not be
less than six feet in height and set back a minimum 10 feet from abutting streets with the
entire setback area permanently landscaped and maintained.
(U) In all districts, storage areas shall be screened from view on all sides adjacent to a
public right-of-way by a solid wall made of either brick, block, masonry, wood, vinyl or other
919
similar material. The wall shall include a minimum 10-foot return on all sides. The wall shall
not be less than six feet in height and set back a minimum 10 feet from abutting streets
with the entire setback area permanently landscaped and maintained.
(V) In all districts, storage areas shall be screened from view on all sides adjacent to a
public right-of-way by a solid wall made of either block, masonry, wood, vinyl or other
similar material. The wall shall include a minimum ten foot return on all sides. The wall shall
not be less than six feet in height and set back a minimum 10 feet from abutting streets
with the entire setback area permanently landscaped and maintained. Screening on the
remaining sides shall be evaluated based on proposed site conditions as determined
during the entitlement process.
(W) Auto storage uses on public agency owned property shall be permitted by right
pursuant to submittal of a Parking Area Plan. See Section 231.26. (3254-10/94, 3378-2/98,
3523-2/02, 3568-9/02, 3703-3/05, 3708-6/05, 3724-02/06, 3788-12/07, 3843-11/09, 3860-
2/10, 4039-12/14, 4092-10/16, 4183-10/19, 4198-3/20)
NO FURTHER CHANGES TO HBZSO CHAPTER 212 PROPOSED
REMAINDER OMITTED FROM LEGISLATIVE DRAFT
920
EXHIBIT 4
HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE
CHAPTER 230 SITE STANDARDS
Article H. Nonresidential Districts
230.32 Service Stations
Not Amended
230.34 Housing of Goods
Not Amended
230.36 Transportation Demand Management
Not Amended
230.38 Game Centers
Not Amended
230.40 Helicopter Takeoff and Landing Areas
Not Amended
230.42 Bed and Breakfast Inns
Not Amended
230.44 Recycling Operations
Not Amended
230.46 Single Room Occupancy
Not Amended
230.48 Equestrian Centers
Not Amended
230.50 Indoor Swap Meets/Flea Markets
Not Amended
230.52 Emergency Shelters
Not Amended
230.54 Reserved Commercial Cannabis Facilities
921
A. Purpose
It is the purpose and intent of this Chapter 230.54 to implement State Law, which includes,
but is not limited to. the provisions of the Medicinal Adult-Use Cannabis Recreation and
Safety Act, Business and Professions Code §§ 26000, of seq., as it may be augmented and
amended from time to time (hereinafter, '`MAUCRSA"), while imposing regulations on
the use of land to protect the City's neighborhoods, residents, and businesses from negative
impacts. It is a further purpose and intent of this Chapter 230.54 to regulate the indoor
cultivation, retail sale, delivery, manufacturing, processing. testing, and distribution of
cannabis and cannabis-related products in a manner which is responsible, which protects
the health, safety, and welfare of the residents of Huntington Beach,and which is consistent
with the rules and regulations imposed by State Law. Nothing in this Chapter 230.54 is
intended to authorize the possession, use, sale, or provision of cannabis for purposes which
violate State Law.
In addition, nothing in this Chapter permits persons to engage in conduct that endangers
others or constitutes a public nuisance. The requirements of this Chapter are in addition to
any other permits, licenses or approvals required to conduct business in Huntington Beach
or under State.. County, or other law.
B. Location of Commercial Cannabis Facilities
Applicants for Commercial Cannabis Permits must meet all minimum qualifications outlined
in the standards and criteria set forth in Chapter 5.130 Cannabis Business Regulation of the
Huntington Beach Municipal Code (HBMC).
1. Location and Separation Requirements
A Commercial Cannabis Facility that meets the Separation Requirements identified in
Table 1 (Permitted Zones and Separation .Requirements), and has obtained a valid
Commercial Cannabis Permit and Operating Agreement per the HBMC may locate
on any of the following parcels:
a. Parcels designated by the General Plan and Zoning Code for Industrial land
uses, and
b. Parcels designated by the General Plan and Zoning Code for Commercial
land use, and
c. Parcels designated by the General Plan and Zoning Code for mixed-use.
d. Commercial Cannabis Businesses are prohibited in the Downtown Specific
Plan (SP5) area, the Sunset Beach Specific Plan (SP17) area, and properties
within the Coastal Zone Overlay.
e. No Commercial Cannabis Facility shall be located within one thousand
(1000) feet as measured from occupied premises to the property line of any
middle or high school (grades 6-12 whether public, private, or charter) or six
hundred (600) feet, as measured from the occupied premises to the property
line of any K-5 school, licensed commercial day care center, youth center, or
park.
922
f. Outdoor cultivation is expressly prohibited in all zoning districts in the City.
g. Cannabis Deliveries within the City of Huntington Beach are prohibited,
unless the Delivery originated from a Retailer located in Huntington Beach
that has obtained a valid Commercial Cannabis Permit, or if the Retailer is
located outside the City of Huntington Beach, and has obtained a business
license from the City of Huntington Beach.
Permitted Zones and Separation Requirements
Commercial
Cannabis Zoning Permit Type(s)
Facility State License Type District Buffer Zone Required
Type
Type 1 A (Indoor<5000 SF). 600 feet away from
Type 2A (Indoor 5001-10.000 K-5 schools, day Commercial
care centers, youth Cannabis Permit,
Cultivation— SF), Type 3A Indoor 10.001- Industrial centers, and parks. State License:
Indoor 22,000), Type 4 (Nursery— 1000 feet away Huntington Beach
Indoor Only). Type 5A (Indoor
22,000+ SF) from all other Business License
schools.
Type 1 (Outdoor<5000 SF),
Type 1 B (Mixed Light<5000
SF), Type 2 (Outdoor 5001-
10,000 SF); Type 213 (Mixed
Light 5001-10.000 SF); Type 3
Cultivation— (Outdoor 1.0,001-22.000 SF); Prohibited N/A N/A
Outdoor Type 3B (Artificial Light
10,001-22,000 SF); Type 4
(Nursery—Outdoor), Type 5
(Outdoor 22,000+ SF); Type 513
(Mixed Light 22,000+SF)
Delivery— Non Type 9 (non-storefront);Type 10 Huntington Beach
Huntington (storefront), Type 10A (less than N/A N/A
Business License
Beach Retailer 3 retailers)
Type 9:
Retailer must
be located in
Industrial Retailer must
obtain Commercial
Delivery— Type 9 (non-storefront);Type 10 Zone Cannabis Permit,
Huntington (storefront); Type l0A (less than N/A
State License;
Beach Retailer 3 retailers) Type 10. 10A:
Both Huntington Beach
Commercial Business License
and Industrial
Zones
Distribution Type I 1 (distribution); Type 13 Industrial 600 feet away from Commercial
(transportation) K-5 schools, day Cannabis Permit;
923
care centers. youth State License:
centers. and parks. Huntington Beach
1000 feet away Business License
from all other
schools.
600 feet away from
K-5 schools. day Commercial
Type 6 (non-volatile); Type 7 care centers, youth Cannabis Permit;
Manufacturing (volatilc); Type N; Type P; Type Industrial centers, and parks. State License:
S 1000 feet away HuntinLton Beach
from all other Business License
schools.
Microbusinesses Type 12 Prohibited N/A N/A
Type 9:
Retailer must
be located in 600 feet awav from
Industrial K-5 schools. day Commercial
Type 9 (non-storefront);Type 10 Zone care centers, youth Cannabis Permit:
Retailer (storefront); Type l0A (less than centers, and parks. State License:
3 retailers) Type 10, 10A: 1000 feet away Huntington Beach
Both from all other Business License
Commercial schools.
and Industrial
Zones
600 feet away from
K-5 schools. day Commercial
Testing care centers, youth Cannabis Permit:
Laboratory Type 8 Industrial centers, and parks. State License,
1000 feet away Huntington Beach
from all other Business License
schools.
Event Event organizer or Temporary Prohibited
Cannabis Event
230.56 Reserved
230.58 Reserved
230.60 Reserved
924
** WORKING DRAFT *x
CITY OF HUNTINGTON BEACH
COMMERCIAL CANNABIS REGULATIONS
Pursuant to the authority granted under Chapter 5.130 of the Huntington Beach Municipal Code
and under state law, the City Manager and designee (or approved via Council Resolution) hereby
promulgates there Regulations necessary to carry out the purposes of Chapter 5.130 and which
shall apply in addition to the requirements set forth in Chapter 5.130 and applicable local and
state law.
In the absence of, specific provisions in the HBMC or these Regulations, the relevant laws and
regulations of the State of California shall apply.
The City Commercial Cannabis Regulations shall govern the following areas:
• Commercial Cannabis Permit application and renewal criteria and processes,
• Regulation and oversight of Commercial Cannabis Facilities,
• Operational requirements imposed on such Facilities, and
• Any other subject determined to be necessary to carry out the purposes of Chapter 5.130
of the Huntington Beach Municipal Code.
Compliance with the City's Commercial Cannabis Regulations is required to engage in
Commercial Cannabis Activity, and failure to do so is grounds for revocation, suspension or non-
renewal of a Commercial Cannabis Permit, as well as the other penalties set forth in Chapter
5.130 of the Huntington Beach Municipal Code.
Section I. Application and Approval Procedures
TBD
Section 2.Application Requirements
TBD
Section 3. Premises Requirements
TBD
Section 4. General Operational Standards.
A. Pre-Operational Requirements
Prior to commencing operations, and as a precondition for commencing such operations,
a Commercial Cannabis Facility and its Owners and operators shall:
1) Obtain any and all required land use entitlements and approvals and comply with
any California Environmental Quality Act requirements related thereto.
2) Be subject to a mandatory building inspection and obtain all required permits and
approvals that would otherwise be required for any business of the same size and
1 1 P a g e
925
intensity operating in the Industrial or Commercial zone. This includes but is not
limited to obtaining any required building permit(s), certificates of occupancy, Fire
Department approvals, and other zoning and land use permit(s) and approvals.
3) Remedy any expired building permits for the subject tenant space.
4) The Huntington Beach Fire Department shall perform a fire and life safety
inspection prior to occupancy of the facility. Any deficiencies identified during the
inspection shall be corrected prior to approval of occupancy. Any hazardous
materials that will be used or stored within a facility must be disclosed to the
Huntington Beach Fire Department.
5) Execute an agreement, in a form approved by the City Attorney, agreeing to
indemnify, defend (at Applicant's sole cost and expense), and hold the City of
Huntington Beach, and its officers, officials, employees, representatives, and agents,
harmless, from any and all claims, losses, damages, injuries, liabilities or losses
which arise out of, or which are in any way related to, the City's issuance or failure
to issue a Commercial Cannabis Permit, the City's decision to approve or its refusal
to approve the operation of the Commercial Cannabis Facility, the process used by
the City in making its decision, or the alleged violation of any federal, State or local
laws by the Commercial Cannabis Facility or any of its Owners, officers, Employees
or agents.
6) Obtain and consistently maintain insurance at coverage limits and with conditions
thereon determined necessary and appropriate by the City Attorney.
7) Obtain a Commercial Cannabis Permit and pay all fees and charges required by the
City or any other local, State, or federal agency for the operation of a Commercial
Cannabis Facility.
8) Comply with all State and local laws and regulations, including but not limited to the
requirements of Chapter 5.130 of the Huntington Beach Municipal Code, the City
Commercial Cannabis Regulations, the requirements of the Commercial Cannabis
Permit, and State Law.
9) Obtain a valid State Licenses allowing for the operation of a Commercial Cannabis
Facility.
10) Apply for and obtain a City of Huntington Beach business licenses.
B. Operational Standards Applicable to All Cannabis Facilities
While engaged in Commercial Cannabis Activities, all Commercial Cannabis Facilities
shall comply with the following operational requirements:
2 1 P a g e
926
1) Conform to the City's General Plan, any applicable specific plans, master plans, and
design requirements.
2) Comply with all applicable zoning and related development standards.
3) Dual Permits Posted and Visible. A copy of the Commercial Cannabis Permit issued
by the City pursuant to Chapter 5.130 of the Huntington Beach Municipal Code,
together with a copy of the appropriate State License(s) for the Commercial
Cannabis Activity being conducted, shall be posted and readily visible to the public
at all time, at each location where Commercial Cannabis Activity occurs.
4) Any Permittee shall keep the Commercial Cannabis Permit in or upon the
Permittee's business vehicles the business permit or other form of Licenses as
designated by the City Manager issued for such vehicle.
5) Any Permittee transacting and carrying on business but not operating at a fixed place
of business in the City shall keep the Commercial Cannabis Permit upon his or her
person at all times while transacting and carrying on such business and have in or
upon each of the Permittee's business vehicles, at the time of operation in this City,
the business permit or other form of Licenses as designated by the City Manager
issued for such vehicles.
6) Be sited and/or operated in a manner that prevents cannabis odors from being
detected off site. Commercial cannabis activities shall not create offensive or
excessive odors, dust,heat, noise, light,glare, smoke, traffic, or hazards due to the
use or storage of materials, processes, products or wastes, or other unreasonable
impacts to people of normal sensitivity living, working or lawfully present in the
vicinity of the commercial facility. Commercial Cannabis Facilities shall be
constructed in a manner that promotes quality design and construction, and
consistency with the surrounding properties.
7) Be provided with adequate electricity, sewerage, disposal, water, fire protection and
storm drainage facilities for the intended purpose.
8) Maintain sufficient security measures to deter and prevent the unauthorized entrance
into areas containing Cannabis or Cannabis Products, and to deter and prevent the
theft of Cannabis or Cannabis Products at the Commercial Cannabis Facility,
consistent with State Law.
9) Cooperate with the City if it makes a request, upon reasonable notice to the
Commercial Cannabis Facility, to inspect or audit the effectiveness of any security
plan or of any other requirement of this Section.
10) Production of Originals for Inspection. Any Owner, operator, Employee or person in
charge of a Commercial Cannabis Activity shall produce for inspection and copying,
upon request of an authorized City personnel during normal operating hours, the
3 1 P a g e
927
original of the current and valid Commercial Cannabis Permit and the appropriate,
current and valid Licenses(s) of the State of California for the Commercial Cannabis
Activities or commercial Cannabis Businesses being conducted.
11) Refrain from displaying Cannabis Products or graphics depicting Cannabis or
Cannabis Products so as to be visible from the exterior of any property issued a
Commercial Cannabis Permit, or on any of the vehicles owned or used as part of the
Commercial Cannabis Facility.
12) Refrain from displaying any signage, packaging, or other display that is "attractive"
to minors as defined by State Law, as well as from any outdoor storage or display of
Cannabis or Cannabis Products.
13) Provide the City with the name, telephone number of an on-site Employee or Owner
to whom emergency notice can be provided at any hour of the day.
14) Prohibit any person under the age of twenty-one (21) years old from entering upon
the Commercial Cannabis Facility premises or being employed by the Commercial
Cannabis Facility.
15) Prohibit the sale, dispensing, or consumption of alcoholic beverages or tobacco
products on or about the premises of the Commercial Cannabis Facility.
16) Permitted Commercial Cannabis Facilities shall not receive, store, hold or sell
Cannabis or Cannabis Products unless the cannabis and cannabis products are
labeled and packaged as required by State law and regulations.
17) Permitted Commercial Cannabis Facilities are prohibited from giving away any
amount of Cannabis or Cannabis Products and are prohibited from providing
coupons as part of a business promotion.
18) Ensure that the Commercial Cannabis Facility is monitored at all times by web-
based closed circuit television for security purposes and maintain and provide the
City with access to those recordings as provided in the City Commercial Cannabis
Regulations.
19) If the Commercial Cannabis Facility employs two (2) or more Employees (computed
as "full time"non-supervisorial Employee equivalent positions where an Employee
full time equivalent works 1700 hours per year), enter into a Labor Peace Agreement
and provide City with evidence of such Labor Peace Agreement within ninety (90)
days following the date when the number of Employees exceed two (2) full-time
positions.
20)Signage. Every entrance to licensed commercial Cannabis Business shall be clearly
and legibly posted with the following notice: "ENTRY ONTO THESE PREMISES
4 1 P a g e
928
BY PERSONS UNDER 21. YEARS OF AGE IS PROHIBITED BY LAW. VALID
PHOTO ID REQUIRED."
21) Comply with the City's Commercial Cannabis Regulations and any Commercial
Cannabis Facility operational requirements or regulations as are determined by the
City Manager to be necessary to protect the public health, safety and welfare.
22) Background Check. Pursuant to California Penal Code Sections 111 05(b)(11) and
13300(b )( 11 ), which authorizes city authorities to access state and local summary
criminal history information for employment, licensing, or certification purposes;
and authorizes 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 person listed as an owner,
manager, supervisor, employee, or volunteer of the commercial cannabis business
must submit fingerprints and other information deemed necessary by the Police
Chief or his/her designee for a background check by the Huntington Beach Police
Department. Pursuant to California Penal Code Sections 111 05(b) (11) and
13300(b) (11), which require that there be a requirement or exclusion from
employment, licensing, or certification based on specific criminal conduct on the
part of the subject of the record. No person shall be issued a permit to operate a
commercial cannabis business or a related work permit unless they have first cleared
the background check, as determined by the Police Chief or his/her designee, as
required by this Section. A fee for the cost of the background investigation, which
shall be the actual cost to the City to conduct the background investigation as it
deems necessary and appropriate, shall be paid at the time the application for a
commercial cannabis permit is submitted.
23) Employee breakrooms, eating areas, changing facilities, locker rooms and bathrooms
shall be completely separated from areas where Cannabis is stored.
C. Security and Safety Measures Applicable to All Commercial Cannabis Facilities
1) Each Commercial Cannabis Facility shall have a security plan approved by the Chief
of Police or designee prior to issuance of a Commercial Cannabis Permit.
2) A permitted Commercial Cannabis Facility shall implement sufficient security
measures to deter and prevent the unauthorized entrance into areas containing
Cannabis or Cannabis Products, and to deter and prevent the theft of Cannabis or
Cannabis Products at the Commercial Cannabis Facility. Except as may otherwise be
determined by the City Manager or his/her designee, these security measures shall
include, but shall not be limited to, all of the following:
a. Preventing individuals from remaining on the premises of the Commercial
Cannabis Facility if they are not engaging in an activity directly related to the
permitted operations of the Commercial Cannabis Activities.
5 1 P a g e
929
b. Establishing limited access areas accessible only to authorized Commercial
Cannabis Facility personnel.
c. Except for live growing plants that are being cultivated at a Cultivation site, all
Cannabis and Cannabis Products shall be stored in a secured and locked room,
safe, display case, or vault. All Cannabis and Cannabis Products, including live
plants that are being cultivated, shall be kept in a manner as to prevent
diversion, theft, and loss.
Outdoor storage of Cannabis or Cannabis Products is prohibited. All Cannabis
and Cannabis Products must be stored on the licensed premises.
d. Installing 24-hour security surveillance cameras of at least 1080P to monitor all
entrances and exits to and from the premises, all interior spaces within the
Commercial Cannabis Facility which are open and accessible to the public, all
interior spaces where Cannabis, cash or currency, is being stored for any period
of time on a regular basis and all interior spaces where diversion of Cannabis
could reasonably occur. The Permittee shall be responsible for ensuring that
the security surveillance camera's footage is available upon demand by the
City. Video recordings shall be maintained for a minimum of ninety (90) days
and shall be made available to the City Manager or his/her designee upon
request.
e. Electronic copies of video must be made available to the Huntington Beach
Police Department(HBPD) within 48 hours of request without a search
warrant, court order, or subpoena. Digital recordings shall be made available
for viewing on-scene upon request by police personnel conducting
investigations. Video shall be of sufficient quality for effective prosecution of
any crime found to have occurred on the site of the Commercial Cannabis
Facility. The business is required to have someone able to operate the system
on duty during all business hours.
f. The facility shall maintain a map of the camera locations, the direction of
camera coverage, and assigned camera numbers at the premises.
g. Sensors shall be installed to detect entry and exit from all secure areas.
h. Panic buttons shall be installed in all Commercial Cannabis Facilities.
i. Commercial Cannabis Facilities shall have a professionally installed,
maintained, and monitored alarm system.
j. Any bars installed on the windows or the doors of the Commercial Cannabis
Facility shall be installed only on the interior of the building.
6 1 P a g e
930
k. Security personnel shall be on-site 24 hours a day unless alternative security is
authorized by the City Manager or his/her designee. Security personnel must
be licensed by the State of California Bureau of Security and Investigative
Services personnel and shall be subject to the prior review and approval of the
City Manager or his/her designee, with such approval not to be unreasonably
withheld.
1. Each Commercial Cannabis Facility shall have the capability to remain secure
during a power outage and shall ensure that all access doors are not solely
controlled by an electronic access panel to ensure that locks are not released
during a power outage.
3) Each Commercial Cannabis Facility shall identify a designated security representative
or liaison to the City of Huntington Beach, who shall be reasonably available to meet
with the City Manager or his/her designee at any time regarding any security related
measures or and operational issues.
4) As part of the application and permitting process, each Commercial Cannabis Facility
shall have a storage and transportation plan describing in detail the procedures for
safely and securely storing and transporting all Cannabis, Cannabis Products, and any
currency.
5) The City, County, or any investigating official shall have the right to enter the
premises of Commercial Cannabis Facility from time to time during regular business
hours to conduct reasonable inspections to enforce compliance with Chapter 5.130 of
the Huntington Beach Municipal Code and with building, fire, electrical, plumbing,
and/or State and local health and safety regulations.
6) No person shall refuse to permit or interfere with a lawful inspection of the
establishment by City or County investigating officials.
7) A Commercial Cannabis Facility shall notify the City Manager or his/her designee
within twenty-four(24) hours after discovering any of the following:
a. Significant discrepancies identified during inventory. The level of significance
shall be determined by the regulations promulgated by the City Manager or
his/her designee.
b. Diversion,theft, loss, or any criminal activity involving the Commercial
Cannabis Facility or any agent or Employee of the facility.
c. The loss or unauthorized alteration of records related to Cannabis, registering
qualifying patients, primary caregivers, or Employees or agents of the
Commercial Cannabis Facility.
d. Any other breach of security.
D. Additional Operational Standards Applicable to Cannabis Retailers
7 1 P a g e
931
1) Cannabis Retailers shall be open to the public between the hours of 8:00 a.m. and
8:00 p.m. daily.
2) All structures included as part of the permitted Commercial Cannabis Facility shall be
permanently affixed to land by a method that would normally cause the structure to
ordinarily remain affixed for an indefinite period of time. Cannabis Retailers shall
not operate from a vehicle or non-permanent structure.
3) Commercial Cannabis Retailers shall provide at least one (1) private security
personnel during all hours of operation who is licensed by the State of California
Bureau of Security and Investigative Services and possesses a valid California
Department of Consumer Affairs "security guard card."
4) No non-Cannabis food or concessions shall be sold or distributed at the Premises.
5) Shipments of Cannabis and Cannabis Products may only be accepted during regular
business hours.
6) A permitted Commercial Cannabis Retail Facility shall have twelve (12) months after
Permit issuance by the City of Huntington Beach to commence operations unless
permitted by the City.
E. Additional Operational Standards Applicable to Cannabis Retail Deliveries
1) Hours of delivery shall be limited to between 6 a.m. and 10 p.m. daily.
2) Commercial Cannabis Retail Deliveries may be made only from a Commercial
Cannabis Retail Facility permitted by the City in compliance with Chapter 5.130 of
the Huntington Beach Municipal Code and State Law. Deliveries from Cannabis
Retailers located outside the City of Huntington Beach are prohibited, unless the
Retailer obtains a Huntington Beach Business Licenses,
3) Cannabis and Cannabis Product shall only be delivered to a residential dwelling, or to
a commercial building or structure being lawfully used for lodging or temporary
dwelling purposes (e.g.,hotels or motels) if such Delivery is expressly permitted by
the Owner of the building or structure. Deliveries shall not be made to, or through the
use of, any kiosk or temporary building or structure, nor for purposes of re-sale of the
Cannabis and Cannabis Product that is delivered.
4) All Employees who deliver Cannabis and Cannabis Product shall have valid
identification and a copy of the Commercial Cannabis Retail Facility Permit and State
Licenses at all times while making Deliveries.
5) During Delivery, the Delivery Employee shall maintain a physical or electronic copy
of the Delivery request and shall make it available upon request by the licensing
8 1 P a g e
932
authority and law enforcement officers. The Delivery request documentation shall
comply with State Law.
6) A Commercial Cannabis Retail Facility shall maintain a list of all Deliveries,
including the address delivered to, the amount and type of product delivered, and any
other information required by State Law.
F. Additional Operational Standards Applicable to Cannabis Manufacturers
1) Any Manufacturing that will be conducted by a commercial Cannabis Manufacturer
shall be included on the Commercial Cannabis Permit application. No additional
Manufacturing activity shall be conducted without notifying the City Manager, after
which a determination will be made if the new activity may commence with or
without modification to the Commercial Cannabis Permit or if a new Commercial
Cannabis Permit is required.
2) At all times, the commercial Cannabis Manufacturing facility shall comply with all
State regulations for Cannabis Manufacturing. Signage shall be posted regarding the
type(s) of chemicals and products being used at the Manufacturing facility such as
materials safety data sheet requirements.
3) Commercial Cannabis Manufacturing facilities shall not contain an exhibition or
product sales area or allow for Retail Distribution of products at that location.
4) Extraction equipment and extraction processes utilizing hydrocarbon solvents shall be
located in a room or area dedicated to extraction.
5) All commercial Cannabis Manufacturing facilities shall submit plans to the
Huntington Beach Fire Department showing that the facility is compliant with the
applicable California Fire Code at permit issuance. The submittal shall disclose all
materials, identify any hazardous processes within the facility, and identify all fire
protection systems that are required for the facility.
6) Outdoor Manufacturing of Cannabis or Cannabis Products is prohibited.
G. Additional Operational Standards Applicable to Cannabis Distributors
1) A Distributor shall ensure that Cannabis and Cannabis Products are stored in
compliance with applicable State Laws and regulations in conformity with all
applicable track and trace systems required by the State.
H. Additional Operation Standards Applicable to Cannabis Cultivators
1) There shall be no exterior evidence of Cannabis Cultivation from a public right-of-
way. The Building Official may impose additional specific requirements to meet the
9 1 P a g e
933
California Building Code and Fire Code, including but not limited to installation of
fire suppression sprinklers.
2) Compliance with Section 13149 of Water Code as enforced by the State Water
Resources Control Board is required.
3) Pesticides and fertilizers shall be properly labeled, stored, and applied to avoid and
prevent contamination through erosion, leakage, or inadvertent damage from rodents,
pests, or wildlife.
4) All commercial Cannabis Cultivation facilities shall submit plans to the Huntington
Beach Fire Department showing that the facility is compliant with the applicable
California Fire Code at permit issuance. The submittal shall disclose all hazardous
materials, identify any hazardous processes within the facility, and identify all fire
protection systems that are required for the facility.
5) Commercial Cannabis Cultivation facilities shall not contain an exhibition or product
sales area or allow for Retail Distribution of products at that location.
I. Additional Operational Standards Applicable to Cannabis Testing Laboratories.
1) A Licensed Cannabis Testing Laboratory and/or its Owners or Employees may not
hold an interest in any other Cannabis Business except another Testing Laboratory
business.
2) All Cannabis Testing Laboratories shall be accredited by an appropriate accrediting
agency as approved by the State.
3) The cannabis testing laboratory operating plan demonstrates proper protocols and
procedures for statistically valid sampling methods and accurate certification of
cannabis and cannabis products for potency, purity, pesticide residual levels, mold,
and other contaminants according to adopted industry standards.
4) All commercial Cannabis Testing Laboratory facilities shall submit plans to the
Huntington Beach Fire Department show that the facility is compliant with the
applicable California Fie Code at permit issuance. The submittal shall disclose all
hazardous materials, identify any hazardous processes within the facility, and identify
all fire protection systems that are required for the facility.
101Page
934
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City of Huntington Beach
Cannabis Regulatory -
Framework Er Draft Ordinances
City Council Meeting
July 5, 2022 -
COMMUNICATION
Meeft Date:
Background - City of Huntington Beack
• Two private parties have filed separate cannabis petitions requesting that the City
prepare documents allowing their proposed regulations to be placed before the voters
of Huntington Beach for consideration.
o November 3, 2021 — Huntington Beach Cannabis Taxation and Regulation Act
o December 2, 2021 — Huntington Beach Cannabis Regulation & Land Use Measure
• On December 21, 2021 Study Session, the City Council formed an ad-hoc
subcommittee, consisting of Councilmembers Bolton, Kalmick and Peterson, to further
assess, research and present a balanced cannabis regulatory framework for the
Council's consideration.
• On February 15, 2022 Study Session, the Subcommittee presented the preliminary
framework to the City Council.
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July 5,2022 City Council Meeting 2
ysF�011NTY CP��O
Background - Continued
On March 1, 2022, the City Council voted to June 7, 2022 Primary Election
• Election Result— Measure A
place a measure on the 2022 Primary
Election ballot, Measure A: Cannabis
-YES NO
Business Tax Measure.
❑ Retail tax: up to 6%
❑ Non-retail tax: up to 1% 35.4%
❑ Special Tax with revenues being
restricted to Police and Homeless & 64.6%
Behavioral Services
❑ 100% cost recovery on city expenses
through fees, approved by the City
Council via resolution.
a�NTINGTO
July 5, 2022 City
c+
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ycf 00ONTY CP`\oe
Background - Continued
• The City Council directed staff and the Subcommittee members to discuss the
implications of various unresolved policy and regulatory matters associated with cannabis
and report back to the City Council.
• The City has solicited input from residents,
businesses, and community stakeholders on
the proposed regulatory framework through '
k
various channels:
s• Individual meetings and site tours of
permitted cannabis facilities in other cities ll� �-
❖ Community forum held on June 9, 2022 •
❖ By accepting written comments via email
and the City website.
,�N(INGTO
July 51 2022 City Council Meeting
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Cannabis laws adopted by Voters and Council
City staff is recommending that the City:
❑ Place two ballot measures on the November 2022 General Election asking
voters whether the City should allow and regulate retail and non-retail cannabis
businesses; and if allowed, impose local excise taxes on such commercial
activities as General Tax.
❑ Develop regulatory and zoning ordinances for City Council adoption and the
City's Commercial Cannabis Regulations for Council resolution adoption.
❖ Extend to voters authority as to whether and how commercial cannabis activities are
permitted.
❖ Maintain the City Council's ability to develop policy positions while allowing timely
flexibility to respond to the ever-evolving State's laws and market condition without
necessitating the delay and expense of conducting a municipal election.
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Key Features of Cannabis Regulatory Framework
0 Cannabis Industry Types
OF
RETAILERS • Storefront dispensaries • Sales on vehicles/mobile stores,
(w/delivery) kiosk, or temporary structures
➢ Up to 10 permits
• Non-storefront, delivery- • Sale by vending machine
only facilities
NON-RETAILERS • Indoor Cultivation • Outside cultivation
No cap but controlled by • Manufacturing • microbusinesses
zoning and buffer
restrictions • Testing Labs • Cannabis events/event
organizers
• Distribution • Drive-in or drive-through (per the
State)
Key Features of Cannabis Regulatory Framework
I
Zones & Buffer Restrictions Retail
Commercial Locations
• Retailers
o Storefront dispensaries: allowed in the
Commercial Zone and Specific Plan
Areas with buffer restrictions
n�
o Non-storefront/delivery-only retailers V.
(Type 9): allowed only in the Industrial
Zone with buffers -
r
o Exclude Downtown (SP5) and Sunset t -
Beach Specific Plan (SP17)
..w.,� T
o Exclude Coastal Overlay Zone
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July 5,
9,
4. 2022 City Council
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Key Features of Cannabis Regulatory Framework
Zones & Buffer Restrictions
• Retailers — Buffer Distance: Non-Retail
Industrial Locations
1,000 ft. from high & middle schools; and _
A- 600 ft. from K-5 schools (inclusive of all
public, private, and charter schools); and -
600 ft. from parks, licensed commercial -
daycare centers, and youth centers. I
• Non-Retailers
o Allowed in the Industrial Zone with buffer
restrictions that are same as retailers. _
V,ONTI 4GTG
- ' zJuly 5,2022 City Council
e
9$c�UGUNTV`P`to
Key Features of Cannabis Regulatory Framework
SECURITY MEASURE AND OPERATIONAL REQUIREMENTS
Ago ftv
e 0 WON 10 4D 40 10
24/7 Video Extensive No Customer City Comprehensive
security monitoring background consumption check-in personnel state and local
guards on inside& checks far allowed and age may access permitting
the outside of owners& onsite or near verification vsurveillance ideos at any process
promises building employees premises (21+)
tints
axxTiecro
July 5,2022 City Council Meeting
41,�:
Additional Community Feedback
1. Medicinal cannabis businesses and customers
11. Operation Hours
Ill. Buffer measurements
IV. Local residency requirement and/or preference
V. Pre-application requirement to have at least 4 local permits or State
licenses, one of which must be retail for retailers for retail applicants
V1. Location/Property Requirement
June 21,2022 City Council Meeting 10
UN
The City's Approach to Cannabis Businesses
rem M
Ballot Measures
1. Permit and regulate a
limited number of cannabis 1. Regulatory Business - - •
retailers and non-retailers Ordinances
in areas zoned? Commercial Cannabis
Regulation that specifics
2. Land Use Ordinances and governs:
2. Impose a local excise tax -Application and renew
on commercial cannabis procedures
activities as a General Tax
- Operational Standards
- Other necessary
administrative components
Recommended Actions:
A) Direct staff to prepare and return to the City Council to adopt a resolution placing a
City-sponsored ballot measure on the November 8, 2022 General Election, asking
voters if the City should allow and regulate cannabis retailers and non-retailers for
both medical and recreational to operate in areas zoned for cannabis commercial
activity within Huntington Beach; and
B) Direct staff to prepare and return to the City Council regulatory and zoning
ordinances regarding commercial cannabis activities for City Council adoption and
the City's Commercial Cannabis Regulations to be adopted by Council resolution,
and
C) Direct staff to prepare and return to the City Council to adopt a resolution placing a
City-sponsored cannabis tax measure on the November 8, 2022 General Election
ballot as a General Tax.
N�HiIN�rO
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CouncilJune 21,2022 City
F
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QUESTIONS?
17, 1909,
UNT
Moore, Tania
From: dad2st@aol.com
Sent: Tuesday, July 5, 2022 9:29 AM
To: supplementalcomm@surfcity-hb.org
Subject: Cannabis
City Council
I URGE you all to vote NO placing on the ballot any future cannabis sales and taxation development in HB. The last thing
we need is more people driving, walking, riding bikes and sitting
all around town stoned on smoking weed.
A reply will be appreciated
Chuck Burns
Huntington Beach
714 369-7384
SUPPLEMENTAL
COMMUNICATION
Aged ibm No. jai laa ���-�
898
2000 Main Street,
` Huntington Beach, CA
92648
t
_ City of Huntington Beach honvwn TIVY-c To
6 I 1909
(f'ETZE)P,soN- / WEAt7,
File #: 22-444 MEETING DATE: 6/21/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Sean Joyce, Interim City Manager
VIA: Travis K. Hopkins, Assistant City Manager
PREPARED BY: Grace Yoon-Taylor, Senior Administrative Analyst
Subject:
Request for City Council direction on regulatory framework and ordinances on commercial
cannabis activities
Statement of Issue:
Since passage of the Compassionate Use Act of 1996, the Medical Marijuana Program Act, and
Medicinal and Adult-Use Cannabis Regulation and Safety Act, many California cities have allowed
cannabis-related businesses to operate within their jurisdictions. Consequently, the State and these
municipalities have developed regulations and licensing structures to regulate various types of
cannabis business activities within their jurisdictions. In contrast, Huntington Beach prohibits all
forms of commercial cannabis activities. However, the City Council (or voters by ballot initiative) has
the discretion to permit and regulate such businesses.
In November and December 2021, two private parties filed separate cannabis petitions to legalize
cannabis sales and commercial activities in Huntington Beach without gathering City Council or staff
input. Upon receiving the petitions, the City Council established a three-member ad-hoc
subcommittee consisting of Councilmembers Bolton, Kalmick, and Peterson in order to develop a
cannabis program that would be tailored to the needs and interests of the Huntington Beach
community. The subcommittee worked with staff, cannabis industry representatives, and local
stakeholders to learn about best management practices in similar cities. Subsequently, the
subcommittee presented their preliminary framework during a February 15, 2022 Study Session.
On March 1, 2022, the City Council voted to place a measure on the 2022 Primary Election ballot
asking city voters whether to adopt a cannabis business tax, which is a special tax levied upon retail
and non-retail business gross receipts for the specific purposes of supporting the City's (a) police
services for public safety and (b) homelessness prevention and behavioral services. This approach,
if approved by 2/3 of voters, would provide an opportunity for the City to maintain some level of local
control over a future cannabis program.
At that time, staff was also directed to return to the City Council with the implications of various
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unresolved policy areas associated with commercial cannabis activities for further consideration. The
ad-hoc subcommittee met to consider those policy areas and developed a regulatory framework
outlined in the draft ordinances (Attachment I and II).
The City has solicited feedback from residents, businesses, and community stakeholders on the
proposed regulatory framework through a community forum hosted on June 9, 2022 and by
accepting written comments via email and the City's website until June 13, 2022.
Based on unofficial election results from the OC Registrar of Voters website as of June 15, 2022,
approximately 64.57% of Huntington Beach voters approved "City of Huntington Beach Cannabis
Business Tax Measure," also known as, Measure A. However, as of the date of the drafting of this
item, the measure is short of the 2/3 (66.7%) of votes required to pass.
City staff is recommending that the City present two ballot measures on the November 2022 General
Election asking voters whether the City should allow and regulate retail and non-retail cannabis
businesses and if allowed, impose local excise taxes on such commercial activities (up to 6% on their
gross receipts of cannabis retailers and up to 1% to non-retailers) as a General Tax.
This balanced approach will extend to voters authority as to whether commercial cannabis activities
should be permitted and taxed. At the same time, it maintains the City Council's ability to develop
policy positions and allow timely flexibility to respond to ever-evolving the State laws and market
condition, without necessitating the delay and expense of initiating a municipal election.
City Council direction is now requested to determine as to how cannabis regulatory ordinances
should be adopted and whether the City should place ballot tax measures on the November Election
ballot. The City Council is also asked to provide more direction on key policy areas related to
regulating cannabis businesses, such as the number of permits to be issued, zoning and buffer
restrictions, and feedback on the draft ordinances (Attachment I and II).
Financial Impact:
The estimated cost of placing two City Council-sponsored ballot measures concerning cannabis
business taxation and regulation on the November 2022 General Election would be approximately
$25,000 based on the estimated pages required. Adequate funds are available in the City's General
Fund business unit 10040101 if this option is selected.
Per the OC Registrar of Voters, narrowing the range to a final cost will depend on a few other factors
including: the total number of entities placing items on the ballot and thereby sharing in certain
election costs; the number of ballot pages required for the City's measure at approximately $8,500 for
every 2 pages/3,000 words; and expenses such as postage, printing, and other forms of cost
recovery.
Recommended Action:
A) Direct staff to prepare and return to the City Council for adoption a resolution placing a City-
sponsored ballot measure on the November 8, 2022 General Election, asking voters if the City
should allow and regulate cannabis retailers and non-retailers for medical and recreational to operate
in areas zoned for cannabis commercial activity within Huntington Beach; and,
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B) Direct staff to prepare and return to the City Council regulatory and zoning ordinances regarding
commercial business activities for City Council adoption and the City's Commercial Cannabis
Regulations to be adopted by City Council resolution; and,
C) Direct staff to prepare and return to the City Council for adoption a resolution placing a City-
sponsored cannabis general tax measure, at the same rates as presented to voters on June 7, on the
November 8, 2022 General Election ballot as a General Tax.
Alternative Action(s):
The City Council may choose one or more of the following alternative actions:
1. Do not direct staff to place a City-sponsored ballot measure on the November 8, 2022 General
Election asking voters if the City should allow and regulate cannabis businesses in the City but
prepare and return to the City Council regulatory and zoning ordinances for City Council
adoption only; and/or
2. Direct staff to place portions of the regulatory and zoning ordinances on the November ballot
measure; and/or
3. Do not direct staff to place a City-sponsored cannabis tax measure on the November 8, 2022
General Election ballot as a General Tax.
It must be noted that the City must submit all November ballot measures and ancillary materials
(including a City Council resolution(s)) to the Orange County Registrar's Office by August 12, 2022
for the November 8, 2022 General Election ballot.
Analysis:
Regulatory Ordinances Adopted by Voters and Council
Comprehensive business and land use regulations for commercial cannabis activities in Huntington
Beach can help preserve the quality of life for residents, mitigate negative impacts of the illicit market,
drive diverse economic opportunities, and implement the City's General Plan. Such ordinances and
regulations can give the City authority over licensing, enhance accountability for security and product
safety, and reduce intervention from State and Federal governments.
With these goals in mind, the City Council can place a ballot measure on the November 2022
election asking voters if the City should allow and regulate cannabis retail and non-retail businesses
in areas zoned for such commercial activities within Huntington Beach. If voters approve the
measure, it is recommended that the Council adopt regulatory and zoning ordinances implementing
the measure.
This approach leaves for voters to determine whether retail and commercial cannabis activities
should be permitted in Huntington Beach. It will maintain the City Council's ability to develop policy
positions while allowing flexibility to accommodate the City's specific needs timely and respond with
local code amendments as the State's cannabis laws are revised, without necessitating the delay and
expense of a municipal ballot measure designed to comply with evolving State legislation.
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Commercial Cannabis Regulation Adopted by Council
Administrative regulations will be developed for City Council adoption by ordinance that specifies and
govern the following:
o Application and renewal procedure
o Pre-operational requirements and operational standards for all permitted cannabis
facilities including security, fire safety, and code enforcement related requirements.
■ Refer to Attachment III: Draft Commercial Cannabis Regulation
o Other administrative procedures necessary to implement the purpose of proposed
regulatory ordinance and zoning code
Implementation regulation would be adopted by Council resolution, similar to a fee schedule for cost
recovery on related City expenses. This approach will provide opportunities for input from the City
Council and the public and enhance transparency the way the intents of the City ordinances would be
interpreted and implemented.
The proposed ordinances would not take effect until such regulations, processes, and fees are
promulgated.
Cannabis Business Tax
Based on the unofficial election results of OC Registrar of Voters as of June 15, 2022, 64.57% of
Huntington Beach voters supported "City of Huntington Beach Cannabis Business Tax Measure,"
also known as, Measure A, on June 7, 2022 Primary Election. However, as of the date of writing this
report it has failed to reach the requisite 2/3 of votes required to pass the Measure A.
The City Council has the option of placing a tax measure on the November ballot as a general tax
with proceeds going to the General Fund for general municipal services. It is envisioned that the
measure would be similar to the Measure A, asking voters if the City should impose local excise
taxes up to 6% on the gross receipts of cannabis retailers and up to 1% to non-retailers, but a
general tax. This taxation allows flexibility for the City Council to adjust tax rates between minimum
and maximum voter-approved rates for each types of cannabis businesses to address yet
unpredictable, emerging industry conditions.
A simple majority of the electorate is required to pass a general tax.
Feedback on the key highlights of the proposed draft ordinances (Attachment I and II) include:
Cannabis Industry Types
• Retail types permitted
o Storefront dispensaries and delivery-only facilities are permitted
o Commercial activities for adult-use and medicinal cannabis/cannabis products
• Non-Retailers (Indoor Cultivation, Manufacturing, Testing Lab, and Distribution) are permitted
• Outdoor cultivation and microbusinesses will be prohibited
• Cannabis events/event organizers will be prohibited
Number of Permits
• Retailers up to 10 permits
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• Non-retail permits regulated by zoning restrictions without a cap
• A separate permit is required for each type of commercial cannabis activity.
• Limit 1 license type per owner (e.g. 1 owner can apply for 1 retailer and 1 manufacturer
permit)
• No more than 1 application per property/premise.
• A no-warehousing provision, requiring that permittee must begin operation within 1 year after
permit is granted, otherwise the license is revoked.
• A permit is valid for 1 year from the date of issuance and expires unless renewed.
• Non-transferable to others within 3 years and transferees must submit the same permit
application information to the City and pay applicable fees.
Zonin_g and Buffer Restrictions
• Retailers
o Allowed in the Commercial, Specific Plan Areas and Industrial Zone with buffer
restrictions
o Exclude Downtown (SP5) and the Sunset Beach Specific Plan (SP17) areas
o Exclude Coastal Overlay Zone
o Delivery-only retailers can locate only in the Industrial Zone
o Permitted in multistore front buildings
o No buffer requirement between shops
o Buffer Distance: 1,000 ft. from high and middle schools (6-12), 600 ft. from K-5, parks,
licensed commercial day care centers, and youth centers.
o Buffer Measurement: Buffers are measured from occupied premises of businesses to
the property line of sensitive receptors mentioned above.
• Non-Retailers
o Allowed in the Industrial Zone only.
o Buffer restrictions will be same as retailers above.
Application and Permitting Process
• City will develop a rubric in accordance with the policy goals of the ordinances and consider a
selection committee comprising of City staff and third-party evaluators.
• Application process will be two-step process with its ultimate goal to identify high-quality
operators with financial capacity and experiences.
o Step 1: Applicants will be initially screened by a set of criteria to be placed on the
Eligibility List. Such minimum qualification criteria include:
I. Complete application packet and application fees paid to the City
II. Sworn affidavit and evidence that the proposed business location meets the
zoning criteria
III. Proof of ownership or control of the business site
IV. A refundable security deposit of a fixed amount set forth by the City Council
V. Proof of having at least 4 current licenses (various types) in California, one of
which must be retail if applying for retail permits
VI. Proof of having an identified local philanthropy partner that benefits the City
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File #: 22-444 MEETING DATE: 6/21/2022
o Step 2: Applicants on the Eligibility List will be evaluated on a merit point system.
Similar to RFP/RFQ process, a points-rubric will evaluate the applicants' qualifications.
I. Criteria including but not limited to: ownership structure, owner qualifications,
capitalization plan, business and operation plan, traffic/circulation/parking plan,
safety and security plan, community benefits package, and etc.
II. Applicants must score from an average of all scores at or above a minimum
percentage of the total available points (for example, 70% or 80%) set by the
City Commercial Cannabis Regulation.
o City Manager has authority to either deny, approve, or conditionally approve an
application for a permit and his/her decision will be final and not appealable.
o Applicants whose permit is revoked, suspended, or not renewed can appeal to the
City's Hearing Officer and proceed with the hearing.
• Permittees must enter into a Commercial Cannabis Operating Agreement with the City setting
forth the terms and conditions under which the facility will operate.
• Permittees must obtain/maintain a valid business license from Finance Department and work
with the Community Development, Police, and Fire Department staff to meet all the
requirements outlined on the ordinances including public safety and fire plans and inspections.
Fire Safety, Security and Code Enforcement Measures
Strict security requirements outlined in the Commercial Cannabis Regulation (Attachment III)
• 24/7 security guards on the premises unless alternative security is authorized by HBPD
• 24-hour security video monitoring for all entrances, exits, and all interior spaces
• Extensive background checks for owners and employees
• Customer check-in and age verification (21+) at the entrance
• No consumption allowed onsite or near premises
• Subject to inspections by authorized City personnel and grant access to surveillance videos
and records at any time
• City can board any doors and windows associated with illegal cannabis businesses
• City can shut off the electric or water service to businesses in violation
• Continued joint effort between HBPD, Fire, Code Enforcement, County and State agencies to
shut down illegal operations in the City.
Additional Community Feedback for the Council's Consideration
Through various channels, community members shared their feedback for the City Council's
consideration as followings. Depending on the City Council's direction, all or some of this feedback
may be incorporated into the final ordinances.
1. For medicinal cannabis businesses and customers, the City could:
a. Allow medicinal cannabis sales to medical patients under 21 (18+ with a valid
medical card and ID) similar to the State's regulation; and/or
b. Differentiate tax rates and apply a lower tax rate for medicinal cannabis products
as compared to adult-use, recreational cannabis sales; and/or
C. Permit cannabis businesses to donate medical products to veterans per S1334.
ll. Operation Hours: the City could extend the operation hours of storefront retailers from
6am to 10pm following the State requirement (draft language allows it to be from 8am -
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File #: 22-444 MEETING DATE: 6/21/2022
8pm). This could be consistent with retail deliveries.
111. Buffer measurements: buffer distance could be measured from property line to property
line, instead of the occupied premises to the property line. All the other zoning and buffer
distances are being measured and enforced as such. An alternative is to measure buffers
from premises to premises.
IV. Pre-application requirement to have at least 4 local cannabis permits or State licenses,
one of which must be retail for retailers. For retail applicants: although the intent of this
provision is to identify most experienced operators with proven track records and "staying"
power and provide an efficient process, it may alienate local businesses and un-level the
playing field that favors the biggest operators, who may also have the highest prices to
consumers. The City could consider eliminating or lowering the number of required
permits/licenses and/or adding other alternatives to assess applicants' qualification such as
years of operating successful businesses.
V. Local residency requirement and/or preference: The proposed ordinance includes a
local hiring preference in the application process as one of the merit-based criteria, but the
City could further support local residents and business owners by adding the following
components:
a. The City could require that business owner(s) have been Huntington Beach
residents for at least 3 years and/or at least 51% of their employees are residents;
and/or
b. The City could allocate two permits of 10 permits or allow two additional permits
(total of 12) to "Locals only-Equity" businesses that get processed after the first ten
and lower the entry points/less restrictive requirements.
VI. Location/Property Requirement: The City could consider not requiring proof of
ownership or site control of a property to lower entry barriers for small businesses and
widen the application pool (e.g. West Hollywood). However, it may create a situation
where applicants go through vigorous application process but cannot open a business due
to lack of viable property in areas zoned for cannabis commercial activity within the City
limit.
Environmental Status:
Not Applicable.
Strategic Plan Goal:
Economic Development & Housing
Attachment(s):
1. DRAFT Ordinance to Amend the HBMC Chapter 5
2. DRAFT Legislative Draft to Amend HBZSO
3. DRAFT Commercial Cannabis Regulation
City of Huntington Beach Page 7 of 7 Printed on 6/16/2022
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City Council/ ACTION AGENDA June 21, 2022
Public Financing Authority
approval during the November 8, 2022 General Election; and,
B) Direct staff to prepare and return ballot measure language and all other materials required for
submittal to the County for City Council consideration; and,
C) Recognize the Committee's work and dissolve the Committee per HBMC 2.100.010.
Approved all amendments taken by straw votes 6-0-1 (Peterson-Absent)
Proposed Measure 1— Charter Amendments to "improve wording, make minor
clarifications, and modify administrative processes"— Item Ws 1-11 revising Charter
Sections 300, 303(a), 303(b), 303(c), 303(d), 304(a), 306, 311(d), 312(a), 312(b), 312(c),
400(d), 601, 604, 612(c), 801(e), and 804
Proposed Measure 2- Charter Amendments to "clarify the roles and responsibilities of the
City Attorney, Clerk and Treasurer"—Item Ws 1 and 2 revising Charter Sections 309, 310,
and 311
Proposed Measure 3— Charter Amendments "remaining amendments proposed by the
Committee"—Item #1 revising Charter Section 300
Proposed Measure 4— Charter Amendments "suggested from City Representatives"—
Item #5 revising Charter Sections 304(b), 309, 310(new), and bring back clarification on
310(a)(2)(B)
At approximately 11:07 PM, a motion was approved 6-0-1 (Peterson-Absent) to continue the
meeting past the hour of 11:00 PM.
24. 22-444 TABLED TO JULY 5 Request for City Council direction on regulatory
framework and ordinances on commercial cannabis activities
Recommended Action:
SpeRseFed ballet measure GR the Nevember 8, 2022 G;eneraal Eler_AOR, asking vAters if the G_4y_
C)
the R 2022 General Elent'en hallr_# o a General Tax
Motion to table to July 5 approved as amended 6-0-1 (Peterson-Absent)
COUNCILMEMBER ITEMS
25. 22-548 Item submitted by Councilmembers Kalmick and Moser approved as
amended - Senior Mobile Home Rental Assistance Program
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[Disclaimer: Tliis document is still under administrative review and is subject to change.]
DRAFT
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE CHAPTER
5. BUSINESS LICENSES AND REGULATIONS OF THE HUNTINGTON BEACH
MUNICIPAL CODE BY ADDING SECTION 5.130 TO PERMIT AND REGULATE A
LIMITED NUMBER OF COMMERCIAL CANNABIS BUSINESSES
WHEREAS, in November 2016, a majority of the voters of the City of Huntington
Beach voted in favor of Proposition 64, which legalized the recreational adult used of
cannabis in California for individuals twenty-one (21) years age and older. Since the
passage of Prop 64 and the Control, Regulate and Tax Adult Use of Marijuana Act
(AUMA), the State and other cities have developed regulations and licensing structures; and
WHEREAS, in June 2017, the California Legislature passed Senate Bill (SB) 94
repealing Medical and Adult Use Cannabis Regulation Act(MAUCRSA) entirely and
merged certain portions of that law with AUMA to create a more comprehensive regulatory
structure for both medicinal and adult-use cannabis; and
WHEREAS, SB 94 created a new comprehensive regulatory system for all
Commercial Cannabis Activities; and
WHEREAS, the City of Huntington Beach has the constitutional charter City
authority to enact nuisance, health, and safety, and land use regulations regarding
Commercial Cannabis Activities; and
WHEREAS, the City of Huntington Beach has historically prohibited all forms of all
Commercial Cannabis Activities anywhere in the City notwithstanding State Law
requirement to allow the indoor cultivation of six or fewer non-medical marijuana plants in
private residences; and
WHEREAS, in November and December 2021, two separate initiative petitions to
legalize the manufacture and sale of cannabis were filed by private parties with the City
Clerk's office. If passed, the initiatives would remove regulatory control from the City
cannabis; and
WHEREAS, the City Council wishes to maintain the City's ability to develop
important policy positions, business and land use regulations to preserve the quality of life
for Huntington Beach residents, visitors, and business community; and
WHEREAS, the City Council established a three-member Ad-hoc subcommittee in
December 2021 to work with the staff, cannabis industry, and stakeholders to assess best
practices and provide recommendations for an Ordinance to set the regulatory framework
for cannabis businesses. The recommendations were presented to the City Council on
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February 15, 2022; and
WHEREAS, on March 1, 2022, the City Council voted to place a ballot measure on
the July 7, 2022 Primary Election, also known as, Measure A, asking voters whether or not
to adopt a Special Tax on Cannabis retail and non-retail business.
WHEREAS, the City now wishes to create a comprehensive, regulatory structure to
allow for medicinal and adult-use cannabis businesses in Huntington Beach in accordance
with this Chapter and state law that in part, mitigates potential negative impacts, prevents
cannabis from reaching minors or the illicit market, preserves public health and safety,
protects the environment, drives diverse economic opportunities, and implements the City's
General Plan; and
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
ordain as follows:
SECTION 1. Chapter 5. Business License and Regulations of the Huntington Beach
Municipal Code will be hereby amended and a new Section 5.130 of the Huntington Beach
Municipal Code shall be added.
HUNGTINGTON BEACH MUNICIPAL CODE
CHAPTER 5.130. CANNABIS BUSINESS REGULATION
5.130.010 Purpose
5.130.020 Fees and Taxes
5.130.030 Commercial Cannabis Authorization and Restriction
5.130.040 Definitions
5.130.050 Procedures to Conduct Commercial Cannabis Activity at a Commercial Cannabis
Facility
5.130.060 Number of Commercial Cannabis Permits and Location
5.130.070 Consumption of Use Prohibited on Site and In Public—Cannabis Event Prohibited
5.130.080 Minors
5.130.090 Sale of Cannabis Products or Cannabis accessories by vending machine prohibited.
5.130.100 Regulations and Inspection
5.130.110 Recordkeeping and Reporting
5.130.120 Fees Deemed Debt to City of Huntington Beach
5.130.130 Permit Holder, Owners, Operators Responsible for Violations
5.130.140 Violations Declared a Public Nuisance
5.130.150 Suspension of Service for City Purposes or for Violations for Law
5.130.160 Each Violation a Separate Offense
5.130.170 Criminal Penalties
5.130.180 Administrative Penalties
5.130.190 Remedies Cumulative and Not Excusive
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5.130.010 Purpose
This Chapter creates a Cannabis Business regulatory structure that is consistent with the
Medicinal Adult-Use Cannabis Recreation and Safety Act, Business and Professions Code §§
26000, et seq., (hereinafter, "MAUCRSA"), as well as land use regulations to protect the City's
neighborhoods, residents, and businesses from negative impacts. Further, this Chapter will
regulate the indoor cultivation, manufacturing, processing, testing, distribution, transportation,
retail sale and delivery of cannabis and cannabis-related products in a manner that is responsible
and protects the health, safety, and welfare of the residents of Huntington Beach, and that is
consistent with the rules and regulations imposed by State Law.
Nothing in this Chapter is intended to allow persons to engage in conduct that endangers others
or constitutes a public nuisance. The requirements of this Chapter are in addition to any other
permits, licenses or approvals required to conduct business in Huntington Beach or under State,
County, or other law.
5.130.020 Fees and Taxes
All Commercial Cannabis Facilities shall pay all applicable fees and taxes including the
following:
A. Commercial Cannabis Permit Deposit. Applicants shall submit a refundable deposit to
secure the permit application in a fixed amount set by council resolution. The deposit
shall be returned in full to the Applicants 30 days from the approval or denial of the
permit application. An interest incurred during the application and review process shall
be retained by the City.
B. Commercial Cannabis Permit Application Fees. Applicants shall pay a non-refundable
fee as set by council resolution to cover the cost of processing an application or amended
application for a Commercial Cannabis Permit.
C. Commercial Cannabis Permit Renewal Fees. Applicants for renewal permits shall submit
a non-refundable fee as set by council resolution to cover the cost of processing an
application or amended application for annual renewal of the Commercial Cannabis
Permit.
D. Business License Taxes. A Commercial Cannabis Business shall at all times maintain a
current and valid City of Huntington Beach business license and shall pay all business
license taxes prior to receiving a Cannabis Permit.
E. Cannabis Business Tax or Business Tax. A Commercial Cannabis Business shall pay
special taxes levied for engaging in a Cannabis Business in the City, approved by the
voters of the City of Huntington Beach.
F. All required federal and State taxes.
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G. All required transfer taxes and/or fees.
5.130.030 Commercial Cannabis Authorization and Restriction
A. Minimum Standards Applicable to Commercial Cannabis Activity
Any standards, requirements, and regulations established by the State of California, or
any of its departments or divisions, shall be the minimum standards applicable in the City
of Huntington Beach to all Commercial Cannabis Activity.
B. Unauthorized Commercial Cannabis Activities Prohibited
Except as specifically authorized by this Chapter, the commercial Cultivation,
dispensing, Manufacturing, Processing, storing, laboratory testing, labeling, sale,
Delivery, Distribution or transportation (other than provided under Bus. & Prof. Code
section 2609(e)), of Cannabis or Cannabis Products is expressly prohibited in the City of
Huntington Beach.
C. Compliance with Laws
Nothing in this Chapter shall be construed as authorizing any actions that violate federal,
State or local law with respect to the operation of a Commercial Cannabis Facility. It
shall be the responsibility of the Owner(s) and/or operator(s) of a Commercial Cannabis
Facility to ensure that the Facility is, at all times, operating in a manner compliant with
all applicable federal, State and local laws, as they may be augmented or amended from
time to time, as well as any specific, additional operating procedures or requirements
which may be imposed as conditions of approval of a Commercial Cannabis Permit.
D. Conflict of Law
This Chapter is not intended to intended to interfere with, abrogate, or annul any other
ordinance, resolution,regulation, statue or other provision of law. In the event of any
conflict between the provisions of this Chapter and any other applicable State or local law
or regulation, the most restrictive provision shall control.
5.130.040 Definitions
When used in this Chapter, the following words shall have the meanings ascribed to them as set
forth herein. The definitions of terms below shall be consistent with the definitions contained in
the MAUCRSA. Any term used in this Chapter that is not defined below shall have the same
meaning contained in the MAUCRSA.
A. Applicant. A person or entity applying for a Commercial Cannabis Permit. In the
context of an annual renewal, Applicant shall mean a person or entity applying to renew
a Permit.
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B. Application Period. A period beginning when an application for a Commercial
Cannabis Permit is received by the City and ending when the application is considered
to be administratively complete and any applicable fees have been paid.
C. Cannabis. 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" shall not include "industrial hemp," unless otherwise specified.
D. Cannabis Business. A person or entity engaged in Commercial Cannabis Activity.
E. Cannabis Event. A public or private event where compensation is provided or
exchange, either directly or indirectly or as part of an admission or other fee for service,
for the provision, hosting, promotion or conduct of the event where consumption of
cannabis is part of the activities.
F. Cannabis Product. Raw Cannabis that has undergone a process whereby the raw
agricultural product has been transformed into a concentrate,an edible product, or a
topical product. "Cannabis Product" also means Cannabis Products as defined by
Section 11018.1 of the California Health and Safety Code and is not limited to
medicinal Cannabis Products.
G. City Manager. The City Manager of the City of Huntington Beach or his or her
designee.
H. Commercial Cannabis Activity. Having the same meaning as set forth in Business and
Professions Code § 26001, as it may be amended from time to time. Commercial
Cannabis Activity includes Cultivation, possession, Manufacture, Distribution,
Processing, storing, laboratory testing, packaging, labeling, transportation, Delivery, or
sale of Cannabis and Cannabis Products.
1. Commercial Cannabis Facility. A business that has obtained a Commercial Cannabis
Permit from the City of Huntington Beach to conduct a Commercial Cannabis Activity,
and that is subject to the regulations set forth in State Law and this Chapter.
J. Commercial Cannabis Operating Agreement. An agreement, in a form approved by the
City Attorney, entered into by and between the City and a Commercial Cannabis
Facility governing the operation of the Facility which shall, among other things, specify
terms for local hiring and sourcing, community benefits, public safety, and payment of
fees and other charges to compensate the City for impacts on City services, and such
other terms and conditions as will protect and promote the public health, safety, and
welfare.
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K. Commercial Cannabis Permit or Permit. A regulatory permit issued by the City
pursuant to this Chapter to a Commercial Cannabis Business, and which is required
before any Commercial Cannabis Activity may be conducted in the City. The initial
permit and annual renewal of a Commercial Cannabis Permit is made expressly
contingent upon the business' ongoing compliance with all of the requirements of this
Chapter and any regulations adopted by the City governing the Commercial Cannabis
Activity at issue.
L. Commercial Cannabis Regulations. The regulations issued by the City Manager and
approved by [TBD] relating to the application or renewal of a Commercial Cannabis
Permit and/or the oversight and operation of Commercial Cannabis Facilities in the
City.
M. Commercial Day Care Center. Having the same meaning set forth in the Huntington
Beach Zoning and Subdivision Ordinance Section 204.08 F. Large-Family Day Care
and 204.08 G. General Day Care. Section 204.06 A. Limited Day Care is excluded.
N. Cultivation. Any activity involving the planting, growing, harvesting, drying,
curing, grading, or trimming of Cannabis and includes,but is not limited to,the
operation of an indoor,outdoor,mixed light,or nursery. All Outdoor Cultivation
including mixed light and nursey shall be prohibited in the City.
O. Cultivator. A Licensee that engages in Cultivation activities.
P. Delivery. The commercial transfer of Cannabis or Cannabis Products to a customer
located at a physical address. "Delivery" also includes the use by a Retailer of any
technology platform used to transfer or sell Cannabis other than at the Retail Facility.
Q. Distribution.Activities including the procurement, sale, and transport of Cannabis
and Cannabis Products between other licensed Cannabis Businesses.
R. Distributor. A Licensee that engages in Distribution activities.
S. Eligibility List. A list of applicants who have met all the minimum qualifying
requirements set forth by the City to be considered for further Commercial Cannabis
Permit approval process.
T. Employee. 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.
U. Hearing Officer. Having the same meaning set forth in Section 1.18.020 of the
Huntington Beach Municipal Code.
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V. Indoor Cultivation. The Cultivation of Cannabis inside a permanent enclosed building
or structure.
W. Labor Peace Agreement. A written agreement between an Owner and any bona fide
labor organization that, at a minimum, prohibits labor organizations and members from
engaging in picketing, work stoppages, boycotts, and any other economic interference
with the Owner's business. This agreement means that Owner has agreed not to disrupt
efforts by the bona fide labor organizer to communicate with, and attempt to organize
and represent the Owner's employees. The Agreement shall provide the bona fide
labor organizer access at all reasonable time to areas in which Owner's Employees
work, for the purpose of meeting with Employees to discuss their right to
representation, employment rights under State Law, and terms and conditions of
employment. This type of agreement shall not mandate a particular method of election
or certification of the bona fide labor organization.
X. License or State License. A license issued by the State of California pursuant to
California Business and Professionals Code Section 26050 and all other applicable
State Laws required for operating a Cannabis Business.
Y. Licensee. An individual or entity that has obtained a State License.
Z. Manufacture or Manufacturing. The production, preparation,propagation, or
compounding of Cannabis or Cannabis Products either directly or indirectly or by
extraction methods, or independently by means of chemical synthesis, or by a
combination of extraction and chemical synthesis at a fixed location that packages or
repackages Cannabis or Cannabis Products or labels or relabels their containers.
AA. Manufacturer. A Licensee that engages in Manufacturing activities.
BB. Microbusiness. A single business to integrate more than one (1) of the permitted types
of Cannabis Businesses and engage in such Commercial Cannabis Activities in the City
from one permitted premises.
CC. Outdoor Cultivation. The Cultivation of Cannabis outside a permanent enclosed
building or structure.
DD. Owner. Having the same meaning as set forth in Business and Professions Code section
26001(am), as it may be amended from time to time, and shall generally mean an
individual or entity with at least a twenty percent(20%) Ownership interest in a
business engaged in Commercial Cannabis Activity.
EE. Parks. Having the same meaning set forth in the Huntington Beach Zoning and
Subdivision Ordinance Section 204.08 N.
FF. Permittee. The holder of a valid City-issued Commercial Cannabis Permit.
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GG. Premise. A designated structure(s) and land specified in the application that is owned,
leased, or otherwise held under the control of the applicant or licensee where the
commercial cannabis activity will be or is conducted. The premises shall be a
contiguous area and shall only be occupied by one licensee.
HH. Processing. A Cultivation site that conducts only trimming, drying, curing, grading,
packaging, or labeling of Cannabis, industrial hemp and non-manufactured Cannabis
Products.
II. Responsible Person. Having the same meaning set forth in Section 1.18.020 of the
Huntington Beach Municipal Code.
JJ. Retail, Retailer, or Retail Facility. A licensed premises where Cannabis, Cannabis
Products, or devices for the use of Cannabis or Cannabis Products are offered, either
individually or in any combination for Retail sale, including an establishment that
delivers Cannabis or Cannabis Products as part of a Retail sale.
KK. Schools. Having the same meaning set forth in the Huntington Beach Zoning and
Subdivision Ordinance Section 204.08 Q.
LL. State. The State of California.
MM. Tax Administrator. The City Manager of the City of Huntington Beach or his or her
designee.
NN. Testing Laboratory. A Cannabis Business that(i) offers or performs tests of Cannabis
and Cannabis 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; (v) is licensed by the California Department of Cannabis Control
or other State agency required by law.
00. Track and Trace System. A program for reporting the movement of cannabis and
cannabis products through the distribution chain established by the California
Department of Cannabis Control in accordance with section 26067 of the Medicinal
and Adult-Use Cannabis Regulation and Safety Act.
PP. Youth Center. Any public or private facility that is primarily used to host recreational
or social activities for minors such as private youth membership organizations,
nonprofit organizations primarily serving youth, or clubs, social service teenage club
facilities. "Youth Center" shall not include any private martial arts, yoga, ballet, music
or similar studio of this nature nor shall it include any private athletic training facility,
pizza parlor, restaurant, video arcade, or doctor's office primarily serving children.
5.130.050 Procedures to Conduct Commercial Cannabis Activity at a Commercial
Cannabis Facility
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A. Commercial Cannabis Permit Required.
A Commercial Cannabis Permit shall be required for each type of Commercial Cannabis
Activity. Only one Permit type per Owner shall be issued.
In order to operate in the City, Commercial Cannabis Businesses must also obtain:
1) A valid City business license to conduct such business or activity;
2) A valid Commercial Cannabis Permit issued by the City of Huntington Beach
pursuant to this Chapter;
3) A valid Cannabis License issued by the State of California authorizing such
business or activity in the City;
4) A valid certificate of occupancy issued by the City's Community Development
Department to conduct the Commercial Cannabis Activity at the premises
identified in the permit; and
5) Commercial Cannabis Operating Agreement with the City.
B. Commercial Cannabis Operating Agreement Required.
Applicants for a Commercial Cannabis Permit shall be required to enter into a
Commercial Cannabis Operating Agreement with the City setting forth the contractual
obligations under which the Commercial Cannabis Facility will operate that are in
addition to any and all other requirements of this Chapter.
C. Application Process and Requirements
1) [TBD: The City Manager or the City Council] is authorized to prepare and
promulgate a City's Commercial Cannabis Regulations that govern the application
process and requirements.
2) Any individual or entity that seeks to operate a Commercial Cannabis Facility shall
submit an application on a form prepared by the City together with a non-refundable
application fee established by resolution of the City Council.
3) Application Submittal Time Frame: the Application Period(s) will be established by
the City Manager. Any individual may only submit one application per permit type,
per Application Period, for a Commercial Cannabis Permit.
4) In part, any individual or entity that seeks to operate a Commercial Cannabis Facility
must meet the following MIMIMUM qualifications to be placed on the Eligibility
List:
a. All application documents completed and submitted within the Application
Period and applicable fees paid.
b. Sworn affidavit and evidence that the proposed location of the Cannabis
Business on the application meets the zoning criteria established in this
Chapter and in the zoning code.
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c. Proof of Ownership or control of the site upon which the Cannabis Business is
to operate.
d. Proof of having at least 4 current Commercial Cannabis Business permits or
licenses (various types) in California, one of which must be retail.
e. A refundable security deposit of a fixed amount set forth by the City Council
via resolution.
f. Proof of having identified at least one 501(c)(3) nonprofit organization who
has been in operation for three (3) years as a local philanthropy partner that
benefits the City of Huntington Beach.
g. Demonstrate that the Permittee has all applicable federal, State, county or City
license or permits, etc.
Applications that do not meet such minimum qualifying requirements will not receive
further consideration in the approval process. Applications on the Eligibility List shall
be reviewed by the City Manager in accordance with the standards and criteria set
forth in the City's Commercial Cannabis Regulations. Because the Commercial
Cannabis Permit confers no property interest, the Applicant is hereby informed that
the City Manager at his or her sole discretion may approve or deny a permit
Applicant.
Notwithstanding, when reviewing the applications for ultimate permit approval, such
review will be based on a merit point system or equivalent quantitative evaluation
scale tied to each set of review criteria as further defined in this ordinance or
regulations, including but not limited to:
a. Ownership structure including all financial interest holders
b. Owner qualifications including prior successful experience operating a
commercial Cannabis Business in compliance with all local and State Law
requirements
c. Site plan/diagram of the premises
d. Capitalization plan
e. Business and operation plan that may include Employee training, ordering
systems, and other standard operating procedures, including inventory control
procedure, quality control procedure, transportation process, Cannabis waste
management procedures, etc.
f. Traffic/Circulation/Parking/Curbside Pick-up Plan
g. Safety and security plan for the Commercial Cannabis Facility
h. Community Benefit Plan
i. Local Hire/Sourcing programs
j. Labor Peace Agreement
k. Other criteria established by the City's Commercial Cannabis Regulations.
5) The specific criteria and weighting (points per criteria) for each permit category will
be determined prior to the commencement of the Application Period and posted
publicly. The City's Commercial Cannabis Regulations shall establish a minimum
qualification score threshold for Applicants to meet before issuing any permits.
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6) The City Manager may establish a selection committee comprised of at least three
evaluators from the City and/or external consultants who will review and score
applications based on the criteria set forth, conduct interviews if necessary, and
determine top applications in each permit category.
7) The City reserves the right to reject any or all applications. The City further reserves
the right to request and obtain additional information from any Applicant submitting
an application.
D. City Manager Authority to Approve or Deny Permit
The City Manager shall either deny, approve, or conditionally approve an application for
a Commercial Cannabis Permit. The City Manager's decision shall be final. The City
Manager shall provide the Applicant with written notice of his/her decision.
1) If an application is denied, a new application may not be filed for one (1) year from
the date of the denial.
2) If a Commercial Cannabis Permit is approved or conditionally approved, it shall be
valid for a term of twelve (12) months from the date it is issued, unless renewed as
provided in this Chapter. A Commercial Cannabis Permit does not confer any
property interest, entitlement or vested right and shall not run with the land.
3) In addition to the Regulations, the City Manager has the authority to deny an
application and/or reduce points awarded for a Commercial Cannabis Permit for the
reasons, including but not limited to:
a. The Applicant has not provided the information required on the application form.
b. The Applicant has not met a minimum set of points required and set by the City's
Commercial Cannabis Regulations.
c. The Applicant has falsified or made misrepresentations in the application.
d. The Applicant has previously failed to comply with any of the requirements set
forth in this Chapter.
e. The Applicant has failed to comply with State Law and/or remit taxes as required
by the Revenue and Taxation Code.
f. The Applicant has denied the City or the State access to the licensed premises.
g. The Applicant has previously operated an illegal Cannabis dispensary or business.
h. The approval could result in harm to the public health, safety, or welfare.
E. Expiration and Renewal Process and Requirements
1) A Commercial Cannabis Permit is valid for one (1) year from the date of issuance. It
may not be transferred, does not run with the land, and is valid only at the original
business site unless a transfer is approved by the City pursuant to the requirements of
this Chapter and the Huntington Beach Zoning and Subdivision Code (HBZSO).
Once a permit is obtained, the Permittee can apply annually for renewal. Renewal of
permits is not guaranteed.
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2) An application for renewal of a Commercial Cannabis Permit shall be filed at least
sixty (60) calendar days, but not more than 120 calendar days, prior to the expiration
date of the current Permit on an application renewal. form prepared by the City
Manager. The City's Commercial Cannabis Regulations shall set forth the renewal
application process, including the applicable deadlines and renewal requirements.
The renewal application shall generally request or require confirmation of
information required for new applications, and may be subject to the same site
inspection and City staff approvals required for new applications.
3) The Applicant shall pay a fee in an amount to be set by the City Council resolution to
offset the cost of processing a renewal application, together with any costs incurred
by the City to administer the program created under this Chapter. The City Council
shall establish the renewal fee by resolution.
4) An application for renewal of a Commercial Cannabis Permit may be denied for any
of the following reasons:
a. The application was filed less than sixty(60) days or more than 120 days before
expiration of the Permit.
b. The Commercial Cannabis Permit or State License has been suspended or
revoked at the time of the application.
c. The Commercial Cannabis Facility has not been in regular and continuous
operation in the ninety (90) days prior to the renewal application.
d. The Applicant has failed to remit taxes as required under the Huntington Beach
Municipal Code Chapter 5.25 Cannabis Business Tax.
e. The Commercial Cannabis Facility has failed to conform to the requirements of
this Chapter,the City's Commercial Cannabis Regulations, its Commercial
Cannabis Operating Agreement, the conditions imposed as part of zoning
requirements, or State Law.
f. The Applicant fails or is unable to renew its State License.
g. For any of the reasons set forth in Chapter 5.130.050(E)(3).
5) The City Manager is authorized to make all decisions concerning the renewal of a
Commercial Cannabis Permit. In determining whether to renew a Permit, the City
Manager is authorized to impose additional conditions on the Permit, if deemed
necessary to ensure compliance with State or local laws and regulations or to preserve
the public health, safety or welfare.
6) The City Manager's decision to approve, conditionally approve, or deny an
application to renew a Commercial Cannabis Permit may be appealed as provided in
this Chapter.
7) If a renewal application is denied, a person may file an application for a new Permit
pursuant to this Chapter no sooner than one (1) year from the date of the denial.
F. Revocation, Modification and Suspension Requirements.
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1) Commercial Cannabis Permits may be suspended, revoked or modified by the City
Manager based upon any of the following:
a. A violation of any State or local law, rule, regulation requirement and/or standard,
including but not limited to the provisions of this Chapter, the City's Commercial
Cannabis Regulations, the Commercial Cannabis Operating Agreement, or the
Huntington Beach Municipal Code.
b. A determination that the Applicant falsified or misrepresented information on its
Commercial Cannabis Permit application or renewal application.
c. An unauthorized transfer of Ownership or change of location of a Commercial
Cannabis Facility.
d. A determination that there is an imminent threat to public health, safety, or
welfare of the City.
2) Suspension of a State License shall immediately suspend the ability of a Commercial
Cannabis Facility to operate within the City. The City may, at its sole and absolute
discretion, reinstate the Commercial Cannabis Facilities Permit if the State reinstates
or reissues the State License. Should the Staterevoke or terminate the License of a
Commercial Cannabis Facility, such revocation or termination shall automatically
revoke or terminate the Commercial Cannabis Permit and the ability of a Commercial
Cannabis Facility to operate within the City of Huntington Beach. Upon notification
by the State, a Permittee shall notify the City immediately in writing of State
proceedings to revoke or suspend a State License. If a Permittee fails to do so, the
City Manager may impose a daily fine not to exceed one thousand dollars ($1,000)
for each day notification is delayed.
3) The City Manager's determination to suspend, modify, or revoke a Commercial
Cannabis Permit shall be effective immediately upon written notice from the City,
and shall not be stayed in the event an appeal is filed.
4) The City Manager's determination to suspend, modify or revoke a Commercial
Cannabis Permit may be appealed as provided in this Chapter.
5) During a period of license suspension, the commercial Cannabis Business shall
remove from public view all Cannabis and Cannabis Products, and shall not conduct
any Commercial Cannabis Activity.
6) Pursuant to Business and Professions Code Section 26200 (c), the City Manager or
his or her designee shall promptly notify the California Department of Cannabis
Control upon the City's revocation of any local license, permit, or authorization for a
State Licensee to engage in Commercial Cannabis Activity within the City.
G. Transfer of Commercial Cannabis Facility or Permit
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1) It shall be unlawful for any person to transfer a Commercial Business Permit to a
location not specified on the permit, or to operate a Cannabis Business at any place or
location other than that identified on the permit issued pursuant to this chapter.
2) Any transfer a Commercial Cannabis Permit, or change in the ownership, business
structure, or operational control of a Commercial Cannabis Facility, either directly or
indirectly, in violation of this section shall be null and void except the cases set forth
by this chapter.
3) No transfer shall occur pursuant to this Section for three (3) years from the date a
Permit was first issued to an Owner or operator of a Commercial Cannabis Facility.
4) No Owner or Permittee shall transfer his/her/its Ownership or control of a
Commercial Cannabis Facility or any rights acquired under a Commercial Cannabis
Permit, to another person without written notification to the City. Such notification
shall be provided a minimum of sixty(60) days before the proposed transfer and shall
be accompanied by a new Commercial Cannabis Transfer Permit application that
contains the information required in the City's Commercial Cannabis Regulations,
which shall be similar to the information required of Applicants for new Permits. The
application must be scored above the lowest final average score of the successful
Applicants from the previous Application Period and the minimum qualification score
threshold.
Prior to or concurrent with the submission of said application the transferee shall
obtain all required business licenses, post all required security deposits, acquire all
necessary, certificates, permits or other licenses allowing the doing of any act that
the person paying or holding the same would not otherwise be entitled to do; and
any permit, license, variance or other instrument of approval or evidence that any
conditions exist as required by any other section of this Code or by any statute or
code provisions of the State must first be obtained or complied with before the
doing of any act or thing for which it is required.
The City Manager shall have sixty (60) days from receipt of the required information
to make a determination on the transfer request, which time shall not begin to run
until a completed transfer application packet is submitted to the City. The City
Manager may approve, deny, or conditionally approve the transfer request.
5) A fee as established by resolution of the City Council shall be payable for each such
application involving transfer of any interest in an existing commercial Cannabis
business. The provisions of this section shall apply to any person, firm, or entity
applying for a Commercial Cannabis Permit for premises previously used as such
establishment.
6) Any such transfer of any interest in an existing commercial Cannabis Business or
any application for an extension or expansion of the building or other place of
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business of the commercial Cannabis business shall require inspection and
compliance set forth in this Chapter.
H. Relocation of Commercial Cannabis Facility
1) Neither a Commercial Cannabis Facility nor its Permit shall be transferred or
relocated from one premises to another without the City Manager's prior written
consent, which must be requested a minimum of ninety (90) days before the proposed
relocation. The request will be processed in accordance with the City's Commercial
Cannabis Regulations and the City Manager may require the Permittee to submit
additional application materials for the new location. A Permittee shall not operate
from a new location unless and until it applies for and receives written approval from
the City Manager, who has discretion to approve, conditionally approve, or deny the
request.
2) A transfer or relocation of a Commercial. Cannabis Facility or its Permit from one
premises to another in violation of this section shall be null and void and is grounds
for suspension or revocation of the Permit.
3) Any transfer or relocation location that occurs pursuant to this Section shall be
subject to a transfer fee that is established by the City Council by resolution.
1. Appeal Procedure
1) Qualification and ranking decisions of the City concerning any aspect of the
qualification or ranking process to obtain a Commercial Cannabis Permit shall not be
appealable and may not be challenged by writ or mandate to any superior court.
2) Unless specifically provided elsewhere to the contrary, whenever an appeal is
provided for in this Chapter from a decision of the City Manager or his/her
designee(s), the appeal shall be conducted as prescribed in this Chapter.
3) Within ten (10) calendar days after the date of a decision of the City Manager or
his/her designee(s) to revoke, suspend, or not to renew a Commercial Cannabis
Permit, a Permittee may appeal such action by filing a written appeal with the City
Clerk setting forth the reasons for contesting the decision.
4) At the time of filing, the appellant shall pay the designated appeal fee established by
resolution of the City Council.
5) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing
before the City's Hearing Officer. The Hearing Officer shall hear the matter de novo,
and shall conduct the hearing pursuant to the procedures set forth by the City.
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6) The appeal shall be held within a reasonable time after the date the appeal is filed.
The City shall notify the appellant of the time and location of the hearing at least ten
(10) days prior to the date of the hearing.
7) At the hearing, the appellant may present any information it deems relevant to the
decision appealed. The formal rules of evidence and procedure applicable in a court
of law shall not apply to the hearing.
8) At the conclusion of the hearing the Hearing Officer may affirm, reverse or modify
the decision appealed. The decision of the Hearing Officer shall be final.
5.130.060 Number of Commercial Cannabis Permits & Location
A. Maximum Number of Commercial Cannabis Permits
The City Manager shall be authorized to issue the following number of Commercial
Cannabis Permits for each type of Commercial Cannabis Activity:
1) Retail: Up to 10 total Commercial Cannabis Permits for storefront Retailer, Delivery
only, and storefront/Delivery Retailers may be issued. No more than one (1) Retail
Permits shall be issued to the same Owner(s).
2) Indoor Cultivation: There shall be no limit on the number of Cannabis Business
Permits issued for Indoor Cultivation. No more than one (1) Indoor Cultivation
Permits shall be issued to the same Owner(s). A Commercial Cannabis Permit for
Indoor Cultivation shall not authorize any individual to engage in any Outdoor
Cultivation.
3) Manufacturing: There shall be no limit on the number of Cannabis Business Permits
issued for Cannabis Manufacturing. No more than one (1) Manufacturing Permits
shall be issued to the same Owner(s).
4) Distribution: There shall be no limit on the number of Cannabis Business Permits
issued for Cannabis Distribution. No more than one (1) Distribution Permits shall be
issued to the same Owner(s).
5) Testing Laboratories: There shall be no limit on the number of Cannabis Business
Permits issued for Cannabis Testing Laboratories. No more than one (1) Testing
Laboratory Permits shall be issued to the same Owner(s).
6) Outdoor Cultivation including but not limited to cultivation in greenhouses, hoop
structures, and by mixed light: Prohibited
7) Microbusiness: Prohibited.
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B. Location and Separation Requirements
A Commercial Cannabis Facility must meet the Separation Requirements (Permitted
Zones and Separation Requirements) set forth by the Huntington Beach Zoning and
Subdivision. Ordinance (HBZSO) Section 204.18 to obtain a valid Commercial Cannabis
Permit and operate in the City.
5.130.070. Consumption or Use Prohibited on Site and In Public—Cannabis event
prohibited.
A. It is unlawful for any person or entity:
1) To sell, give, exchange, dispense, or distribute Cannabis or Cannabis Products for on-
site consumption, use, or sampling on any business premises except trade samples
given to other Permittees as the State allows; or
2) To consume or use Cannabis or Cannabis Products,whether by smoking, vaping,
inhaling, eating, drinking or any other means:
i. In, on or about the premises of any commercial Cannabis Business;
ii. In, on or about any publicly owned or operated property; any place open to
or accessible by the public; any place smoking is prohibited; or any place
visible from any public place with normal unaided vision;
iii. In,on, or about any other business, club, cooperative or commercial event,
regardless if open to the public or only to members, ticket holders or event
invitees;
iv. Any location where an entry or other fee is charged to attendees or to the
host or where a thing of value or consideration is received or exchanged,
directly or indirectly, for or related to the provision of Cannabis.
B. It is unlawful for any person to conduct a Cannabis Event in the City.
C. Outdoor Commercial Cannabis Activities prohibited. Outdoor storage, harvesting, dying,
processing, or manufacturing of commercial Cannabis or Cannabis Products is
prohibited.
5.130.080. Minors
A. No person under twenty-one (21) years of age shall be allowed on the premises of a
commercial Cannabis Business even if accomplished by a parent or guardian.
B. No person, business, or other entity conducting a Commercial Cannabis Activity shall
employ any person who is not at least twenty-one (21) years of age.
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5.130.090. Sale of Cannabis Products or Cannabis accessories by vending machine
prohibited.
A. No person shall locate, install, keep, maintain or use, or permit the location, installation,
keeping, maintenance or use on his, her or its premises of, any cannabis vending machine
used or intended to be used for the purpose of selling any Cannabis, Cannabis Products,
or Cannabis accessories therefrom.
B. No person, business, or other entity shall sell, offer for sale, or display for sale any
Cannabis Product by means of a self-service display of vending machine. All cannabis
products shall be offered for sale exclusively by means of vendor/employee assistance.
5.130.100. Regulations and Inspection
A. Commercial Cannabis Regulations
[TBD: The City Manager or the City Council] is authorized to establish City's
Commercial Cannabis Regulations governing the Commercial Cannabis Permit
application and renewal criteria and processes, the regulation and oversight of
Commercial Cannabis Facilities, the operational requirements imposed on such Facilities,
and any other subject determined to be necessary to carry out the purposes of this
Chapter. Compliance with the City's Commercial Cannabis Regulations is required to
engage in Commercial Cannabis Activity, and failure to do so is grounds for revocation,
suspension or non-renewal of a Commercial Cannabis Permit, as well as the other
penalties set forth in this Chapter.
B. Inspection
The City Manager is charged with enforcing the provisions of this Chapter and may enter
the location of a Commercial Cannabis Facility at any time, without notice, and inspect
the location of any Commercial Cannabis Facility as well as any records required to be
maintained pursuant to this Chapter or under applicable provisions of State Law.
C. Commercial Cannabis Facilities are subject to routine fire and life safety inspections at
the inspection frequency identified in the Huntington Beach Fire Department's
Community Risk Assessment.
5.130.110. Recordkeeping and Reporting
A. Maintenance and City Access to Records: All records shall be maintained by the
commercial Cannabis Business for a period of at least five (5) years and shall be made
available by the commercial Cannabis Business to an authorized City of Huntington
Beach representative upon request. In addition to all other formats that the commercial
Cannabis Business may maintain, these records shall be stored by the business at the
location in a printed format in a fire-proof safe or filing cabinet. Any loss, damage or
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destruction of the records shall be reported to the Police Department within twenty-four
(24) hours of the loss, destruction or damage.
B. Audit. It shall be the duty of every Owner and operator of a Commercial Cannabis
Business to keep all records as may be necessary to determine the amount of tax due
hereunder. The Tax Administrator shall have the right to inspect such records at all
reasonable times. At the time of permit renewal, each Owner and operator shall submit
to the City a financial audit of the business's operations conducted by an independent
certified public accountant. Each Permittee shall be subject to a regulatory compliance
review and financial audit as determined by the Chief Finance Officer or his/her
designee.
C. Owner& Employee Registry. Each Owner and operator of a Commercial Cannabis
Business shall maintain a current register of the names and the contact information of
anyone owning or holding an interest in the business, and separately of all the officers,
managers, Employees, agents, and volunteers currently employed or otherwise engaged
by the business. The register shall be provided to the City upon a reasonable request.
D. Reporting and Tracking of Product and of Gross Sales. All Commercial Cannabis
Businesses shall create and maintain an active and functional account within the Track
and Trace system prior to engaging in any Commercial Cannabis Activity. A commercial
Cannabis Business must record all Commercial Cannabis Activity in such system as
required by State Law.
E. Each commercial Cannabis Business shall have in place a point-of-sale tracking system
to track and to report on all aspects of the commercial Cannabis Business including, but
not limited to, such matters as Cannabis tracking, inventory data, and gross sales (by
weight and by sale) and shall ensure that such information is compatible with the City's
recordkeeping systems. The system must have the capability to produce historical
transactional data for review by the City. All information provided to the City pursuant to
this subsection shall be confidential and shall not be disclosed, except as may otherwise
be required under law.
5.130.120. Fees Deemed Debt to City of Huntington Beach
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt
to the City that is recoverable via an authorized administrative process as set forth in the
Huntington Beach Municipal Code, or in any court of competent jurisdiction.
5.130.130. Permit Holder, Owners, Operators Responsible for Violations
The person to whom a Permit is issued pursuant to this Chapter, as well as each and every Owner
and operator of a Commercial Cannabis Facility, shall be responsible for all violations of this
Chapter, State Law, the Huntington Beach Municipal Code and/or of the City's Commercial
Cannabis Regulations by the Facility, whether committed by the Permittee or any Employee or
agent of the Permittee.
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5.130.140. Violations Declared a Public Nuisance
Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a
public nuisance.
5.130.150. Suspension of Service for City Purposes or for Violations of Law
1. The City reserves the right at any time to shut off the electric or water service for the
purpose of making extensions or repairs or for other purposes. The City may
discontinue water or electric service to any premises which is being used in violation of
any ordinance of the City or of any law of the State of California or of the United States
and shall not be required to re-establish the service until the unlawful use ceases and the
fee for reconnection has been paid.
2. The City reserves the right to board any doors and windows associated with any
Commercial Cannabis Activity operation that is observed to be operating without
approval and issuance of a Commercial Cannabis Permit and Certificate of Occupancy.
5.130.160. Each Violation a Separate Offense
Each and every violation of this Chapter shall constitute a separate violation and shall be subject
to all remedies and enforcement measures authorized by the Huntington Beach Municipal Code.
Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive
relief, with any Permit issued pursuant to this Chapter being deemed null and void, and the City
entitled to disgorgement or payment of any monies unlawfully obtained, costs of abatement,
costs of investigation, attorney fees, and any other relief or remedy available at law or in equity.
The City may also pursue any and all remedies and actions available and applicable under State
and local laws for any violations committed by the Commercial Cannabis Facility Owner,
operator or persons related to, or associated with,the Commercial Cannabis Facility.
Additionally, when there is determined to be an imminent threat to public health, safety or
welfare, the City Manager or the Chief of Police or his/her designee(s), may take immediate
action to temporarily suspend a Commercial Cannabis Permit issued by the City, and close down
the Commercial Cannabis Facility pending a hearing before the City Hearing Officer.
5.130.170. Criminal Penalties
Each and every violation of the provisions of this Chapter may, in the discretion of the City
Attorney, be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed
one thousand dollars ($1,000) or imprisonment in the county jail for a period of not more than
twelve (12) months, or by both such fine and imprisonment. Each day a violation is committed or
permitted to continue shall constitute a separate offense.
5.130.180 Administrative Penalties
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The fine for violations of any provision of this chapter shall be one thousand dollars ($1,000.00)
for each violation. Each separate day in which a violation exists may be considered a separate
violation.
The fine amounts set forth above may be modified, from time to time, by city council resolution.
In no event shall such fine amounts exceed the amounts authorized by State law.
5.130.190 Remedies Cumulative and Not Exclusive
The remedies provided herein are not to be construed as exclusive remedies. The City is
authorized to pursue any proceedings or remedies provided by law.
SECTION 2. Further, no Commercial Cannabis Permit applications shall be accepted by
the City until administrative regulations and processes are approved by the City Manager and
published on the City website.
SECTION 3. Severability. If any section of this Ordinance is determined to be
unenforceable, invalid, or unlawful, such determination shall not affect the enforceability of the
remaining provisions of this Ordinance.
SECTION 4. CEQA. This ordinance is exempt from the California Environmental
Quality Act pursuant to Title 14 California Code of Regulations Sections 15061(b)(3) and 15378,
in that it can be seen with certainty that the Municipal Code amendments propose no activity that
may have a significant effect on the environment and will not cause a direct physical change in
the environment or a reasonably foreseeable indirect physical change in the environment.
SECTION 5. This ordinance shall become effective 30 days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereof held on the day of , 2022.
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[Disclaimer: This document is still under administrative review and is subject to change.]
DRAFT
EXHIBIT 1
HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE
CHAPTER 204 USE CLASSIFICATIONS
204.02 Applicability
Not Amended.
204.04 Uses Not Classified
Not Amended
204.06 Residential Use Classifications
Not Amended.
204.08 Public and Semipublic Use Classifications
Not Amended.
204.10 Commercial Use Classifications
Not Amended.
204.12 Industrial Use Classifications
Not Amended.
204.14 Accessory Use Classifications
Not Amended.
204.16 Temporary Use Classifications
Not Amended.
204.18 PFoiibited Uses--Aledie-al -Businesses
A. Purpose. in order to expFessly infor-m the public that any distribution of mar�uafla by
the City of Huntington Beaeh,the City is adding this express prohibition to the Zoning and
Subdivision Or-dinanee.
—R. Deflinitions.For purposes of this seetion,the folio-wing term is definedi!
used,in full oF in part,as a place at or-in whieh mar-quana is sold,traded, exehanged5
ti ,.t, d for- any ., ,ad available,to ate >stored, displayed,pl ed or eulti atemu,Marquana ineluding any of the for-egoing if used in conneetion with the distFibution of mar-quana.
Business, Collective, CoopeFative or DispensaFy or any otheF sueh business,--no
926
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manage,matter-how so named,is not a peFmitted use in any zoning distr-iet oF speeifie plan in the City.
it shall be unlawf4d foF any per-son or-entity to own, establish,
> ,
it shall be unla
for any per-son to permit to be established, > operated,
owned or-managed as a
landlor-d> owneF, employee, > > ,
Business, Colleetive,
Cooper-ative or Dispensary in the City.
P. Publie Nuisanee. Any use or-eondition eaused or-permitted to exist in violation of any o
E. Enforcement.
Munieipal Code ineluding the Zoning and Subdivision Or-di
2. Nothing in this ar-tiele in an),way limits any otheF Femedies that may be available to
the City, oF any penalt�,that may be imposed by the City,for-violations o'this ar-tiele.
>but are not limited to,
administf•^+;,,^ ..;t..tions (4959 5/15 4954 6/15 4137 19/17 4175 3/19 4183 19/19)
A. Purpose. in order-to eXpFeSSIY WOFM the publie that any sale or-distFibution of non
Cooperatiiis oF Dispensafies,et...,1,.,..,..yer-named; prohibited in the !tilt, of HuntingtdispensaFy means any
Beaeh,the City is adding this express pFohibition to the Zoning and Subdivision Or-dinanee.
B. Definitions. Unless otheFwise speeifieally defined heFein,the definitions roontained within
Adult Use of A4af!quana Aet shall apply to thiS OFdinanee.
> stmeture,faeility,vehiele,business, store, eo op.
Fesidenee> ,
sold,in full or-in part,as a plaee at or-in whieh mar-quana
traded, exehanged,
bar-ter-ed foF in any
.1 available,located, stor-...1 displayed,..1...•^.1 o „1t...ato.a inelud;,.g n of tli.�e
foregoing if used in eonnection with the sale or-distribution of non medieal MaFquaHaz
a proeess wheFeby the plant material has been tFansfor-med into a eoneentrate, ,-
but not limited > >
or-an edible or-topieal produet eontaining
i or-eoneentr-ated eannabis and other-ingredients.
DispenSaFies• 7
Cooperative or-
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928
manage,Dispensary or any other-sueh business, no matter-how so named,is not a permitted use in afty
zoning distr-iet or-speeifie plan in the City. it shall be unlawful for-any per-son oF entity to own,
establish, >
Colleetive> CoopeFative oF Dispensary.Also,
established, it shall be unlawful for any per-soft to permit to be
eondueted, ,
> >
Me.l,eal Mara a„a Business, Colleetiye Cooperatiye o..Dispe„sa-y in the !4ty
D. Non Medieal Mar-quana Deliver-ies. Delivery of non medical fnar-quana is not a permitted
or-entitlement , s lieense, shall be appFoved or-issued foF the
E. Publie Nuisanee.Any use OF eondition eaused or-permitted to exist in violation of any o
the pr-ovisions of this seetion is hereby deelar-ed a publie nuisanee and may be abated by the
Qt�:
1 Violation of this Chapter-794 of the Huntington Reaeh Zoning and Subdivision
Alunieipal Code ineoluding the Zoning and Subdivision Or-dinanee.
7. Nothing in this seetio„ y limits a other v medies that may he available to
sany
the City, or-anypenalty that may be imposed by the Cit., fe.-violations of this seetio„
C h additional r-eme.l;es i„elude but a of limited to injunetive relief
administrative e;tatio„s (4137 19/17f 4175 3/19 4183 19/19)
204.22 No„ Ale.l;eal Ma,-ii.,a„a Cultivate„
A. Purpose. The purpose and intent of this seet;o is to regulate the_e„ltiyatio„ of„on
medieal ma *j nanner-that proteets the health, safety and welfare of the
eommunity. Health and Safety Code Seetion 11362.2 authorizes the City to adopt reason
aeeessor-y stmeture to a private residenee. That seetion also authorizes the City to eomptetely
prohibit the eultivation of non medieal mar�uana outside, as long as the California AttOFnff
General has not made a determination that the non fnedieal use of MaFquana is laWful in
This seetion is not intended to inteFfeFe with the right of an individual 21 years of age or-olde-r
to possess or eultivate non medieal 9 provided for-by Pr-oposition 64. This seetion
is t intended to anyper-son „.le „ale„t la al a»ther;ty to grow non e.li al
it is intended e Feasona le regulations on the eultivation of n
F th it is the purpose and intent of this seetin_ to require that„ e.lieal m
f
enelosed
7
the health, safety and welfare of the publie; to prevent odOF eFeated by non fnedieal mar-i'
and ventilated stmetures, so as not to be visible to the general publie; to provide foF and to ensure that -own in the City
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B. Definitions.For the purposes of this seetion,the following definitions shall apply un
the eontext elear-ly indieates other-wise. if a word is not d—e-f-ined—in this and not
othenwise defined in state law,the eommon and ordinary meaning of the'A,oFd shall ftppl�-.
• Cultivation means the planting,gFowing, harwesting,
plants o an art thereof
with the applireable Building Code and Zoning and Subdivision 2. Fully enelosed and seeur-e stmeture fneans a spaee within a building that eomplies
and has a
offoundationa foundation slab o Talent base to aa.hieh the floor; seeur-ed by bolts ^ similar
and is aecessible only thFough one or-
7
through,moFe loeliable doors.Walls and roof must be eOHStFUeted of solid materials that eannot
be easily bFoken and must be eoRStFueted with non tr-anspaFent •
3. inao A e a fully enelosea and seeuFe otrnetnre or_within ., sidential
oT
4. Non medieal MaFij maFquana that; intended to he used for non
medieal PUFPoses pursuant to Health and Safety Code Seetion 111362.1 et seq.
C No ea; al m nit;a at;o o the planting,, , ':.nwi.aab, a.a yaaag
OF pr-oreessing of non medieal marquana plants oF any part thereof pursuant to Health
and rCede Seetie n 41363.1 et seq., as those seetions may be amended f-Fom time to
time.
6. n ataoerS means y loeation within the f i-I that; not within a fully enelosed aseeuire .0
tetra etnre
7 Per-son means any individual,partnership, eo partnership,firm, assoeiation,joint
f limited liability eOFPOFatiOB, f
eooper-ative, or
.nbinat;on thereof in whatever fora:: o eharaeter
8 D t Fes'.l n fneans a house an artment,unit a mobile home o_ other si _lar
dwelling
C. Cultivation of non Fnedieal fflaFqUaHa. The following regulations shall apply to the
lt' t' f non e.lieal maFquana within the Cit:a.
1. Cultivation Not in Complianee-With this Seetion. it is deelaFed to be unlawffil and
public nuisanee for-an., I fleasing,
F afly PaFee1 oF premises within any zoning distr et o a ;fin_.ale in the City to
than an individual 21 years of age OF od.ler m engage in the eultiyatio of„ edieal
2.
!1 t.lOOF C— lt' t'OR.it; unlawful and a_ hl' F y a V
a
leasing,
o- - .I. —1 having possession of any legal pareel o . ithin any zoning
distr-iet or speeifie plan in the City to eause or-allow such par-eel OF pFemises to be used
for-the outdoor eultivation of non fnedieal mar-4
2 indoor Cultivation.indoor- lt' non .l t' f ' prohibited 1 all
� a' •�
zoning distriets and speeifle plans of the City, exeept foF residential zones, mixed use
> zones,
929
930
an appr-oved private r-esidenee.All effitivation must be in eompliance with this seetion
and state la
ift a Fesidential zone, mixed use zone ner-eial zone on a par-eel or
vith an appr-oved private r-esidenee, shall on!),be eondueted within a fully
in eonfor-manee with the following minimum standards.!
a'he pFiMar-y e of the property shall be for-a residene^• No meth^^1
h All areas usea f ultiyat;on of non mea;eal fnarquana shall a ply with the
Huntington Beaeh Alunieipal Code ineluding the Zoning and Subdivision
n,.a:r.anee as well a plieablo lair,
e. indoor- =,lights shall not a eea 1,200 watts per light' and shall comply with
the California Building,Eleetrieal and Fire Codes as adopted by the City. hig4tts
shall be loeated away from eombustible fnater-ials and a minimum of 30 inehes fr-oFn
fire spr-inlier-,.-
d.
The, of gas pr-oa„ets rrn
e. Any fully enelosed and seeur-e struetwe or residential structure used fo
eultivation of non medieal mar-quana must have a ventilation and filtration system
installed that shall prevent mar-quana plant odor-s 4om exiting the interior-of the
stFueture and that shall eomplywith the Huntington Beaeb Municipal Code,-
ineluding the Zoning and Subdivision Or-dinanee.
mar-quana shall be loreated in the FeaF yard area of the par-eel or-. a must
tain a minimum 10 foot th k fFem a PFOPer•tr,line a well a other•
applieable development standards of the zoning distr-iet. The yar-d wheFe the fully
least six feet in height. Thi hall not apply to eultivation oeeur-ring in a
gar-age.
g. Adequate meehanieai joek4ag or- eleetronie seeur-ity systems must be installed as
the eommeneement of eultivation.
h N a' l mar-quanarlti ati shall he limited to six plants MrJr
kte residence, Fegardless of whether the MaFljUaRa is eultivated inside the
r-esidenee shall apply regardless of how many individuals reside at the priva
siaa
i. The residential struetwe shall remain at all times a residenee,with legal and
f t' a 1 a, sleeping and sanitation faeilit.es with pr-op i r.a
These r-ooms shall not be used for-non medieal maFquana eultivation WheFe
sueh egress. It' t• •11 pr-event their-primary e for a r,a oki of meals, sleepingand
930
931
J. Cultivation of non medieal MaFqUaHa shall only take place on impervious
k. From a publie right of way,theFe shall be no exterior-evidenee of non medieal-
Ativation oeetir-FiRg on the par-eel.
NAM- M-edieal mar-quana eultivation area,whether-in a fully enelosed and secure
str-uetur-e or inside a residential struetur-e, shall not be aeeessible to per-sons under-
71 years of age-.
zia.
UUa.;ttaaa a aat of the property owner-to aaalt;..ate n aaaa.l;aal aa.
within the residential str-uetur-e shall be obtained and shall be kept on the pFemises,
and available Faa.; aat;aaa by the Chief aFDal;aa OF h;s/heF de ;standaFds adopted by the state fire maFshal and applieable .taaaa
n. A 2A!IOB;C- portable fire extinguisher that eomplies with the regulations and
f
shall be kept in the
it D hl'c�ATui�air .l a a permitted to exist; violation of any athe provisions of this seetion is hereby deelar-ed a publie nuisanee and may be abated by the
v—Tcaua
CitT
E. Ti nfora aat
1. Violation of this Chapter-204 of the Huntington Beaeh Zoning and Subdivision
the Alunieipal Code ineluding the Zoning and Subdivision Or-dinanee.
7 Nothing;.a this saat;aa, limits any �-c.aus may va.
available to the City, penalty that may ha imposed b ,the City Fa violations
� J, avi:aa,aua,a,aas
of this • >but are not limited to,
injunctive
relief administrative citations (413 7 10/17 f 4175 3/10,4142_10/19)
931
932
EXHIBIT 2
HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE
CHAPTER 211 COMMERCIAL DISTRICTS
211.02 Commercial Districts Established
The purpose of the commercial districts is to implement the General Plan and Local Coastal
Program commercial land use designations. Three commercial zoning districts are established
by this chapter as follows:
A. The CO Office Commercial District provides sites for offices for administrative, financial,
professional, medical and business needs.
B. The CG General Commercial District provides opportunities for the full range of retail and
service businesses deemed suitable for location in Huntington Beach.
C. The CV Visitor Commercial District implements the Visitor Serving Commercial land use
designation within the coastal zone and provides uses of specific benefit to coastal visitors.
More specifically, the CV district provides opportunities for visitor-oriented commercial activities,
including specialty and beach related retail shops, restaurants, hotels, motels, theaters,
museums, and related services. (3334-6/97, 3774-10/07, 4038-12/14, 4174-3/19)
211.04 CO, CG, and CV Districts—Land Use Controls
In the following schedules, letter designations are used as follows:
"P" designates use classifications permitted in commercial districts.
"L" designates use classifications subject to certain limitations prescribed by the "Additional
Provisions" that follow.
"PC" designates use classifications permitted on approval of a conditional use permit by the
Planning Commission.
"ZA" designates use classifications permitted on approval of a conditional use permit by the
Zoning Administrator.
"TU" designates use classifications allowed upon approval of a temporary use permit.
"P/U" for an accessory use means that the use is permitted on the site of a permitted use, but
requires a conditional use permit on the site of a conditional use.
932
933
Use classifications that are not listed are prohibited. Letters in parentheses in the "Additional
Provisions" column refer to provisions following the schedule or located elsewhere in the Zoning
Ordinance. Where letters in parentheses are opposite a use classification heading, referenced
provisions shall apply to all use classifications under the heading.
CO, CG, and CV Districts: Land Use Controls
P= Permitted
L= Limited (see Additional Provisions)
PC= Conditional use permit approved by Planning Commission
ZA=Conditional use permit approved by Zoning Administrator
TU =Temporary use permit
P/U = Requires conditional use permit on site of conditional use
= Not Permitted
CO CG CV Additional Provisions
Residential Q R V
Group Residential PC PC PC
Multifamily Residential - - PC
Public and Semipublic J R V
Clubs and Lodges P P Community and Human Services
Drug Abuse Centers - PC
Primary Health Care L-11 L-11 Emergency Kitchens - L-2 Emergency Shelters - L-2 -
Residential Alcohol Recovery,General - PC -
Residential Care,General ZA ZA -
Convalescent Facilities ZA ZA Cultural Institutions L-14 L-14 L-14
Day Care,General L-3 L-3 -
Day Care,Large-Family P P - Y
Emergency Health Care L-2 L-2 -
Government Offices P P ZA
Heliports PC PC PC (B
Hospitals PC PC -
Park&Recreation Facilities L-9 L-9 L-9
Public Safety Facilities ZA ZA ZA
Religious Assembly ZA ZA PC
Schools,Public or Private PC PC -
Utilities,Major PC PC PC
Utilities,Minor P P P L
Commercial Uses J (Q)(R
933
934
CO CG CV Additional Provisions
Ambulance Services - ZA -
Animal Sales&Services L-16
Animal Boarding - ZA -
Animal Grooming - P -
Animal Hospitals - ZA -
Animals—Retail Sales - P Equestrian Centers(CG Zone) - PC - (S
Pet Cemetery - PC -
Artists' Studios P P P
Banks and Savings&Loans P P P
With Drive-Up Service P P P
Building Materials and Services - P
Catering Services P P P
Commercial Cannabis Facilitv L-4 L-4 L-4
Commercial Filming P P P (F
Commercial Recreation and Entertainment - PC PC D
Communication Facilities L-13 L-13 L-13
Eating and Drinking Establishments P P P
W/Alcohol ZA ZA ZA (N
W/Drive Through - P P
W/Live Entertainment ZA ZA ZA (W)(Y
W/Dancing PC PC PC H
W/Outdoor Dining ZA ZA ZA (X
Food&Beverage Sales - P L-12
W/Alcoholic Beverage Sales - ZA ZA N
Funeral&Interment Services - ZA -
Laboratories L-1 L-1 -
Maintenance&Repair Services - P -
Marine Sales and Services - P P
Nurseries - ZA -
Offices,Business&Professional P P P
Offices,Medical&Dental P P P
Pawn Shops - ZA -
Personal Enrichment Services L-10 L-10 -
Personal Services P P P
Research&Development Services L-1 ZA -
Retail Sales - P P (U)(V
Secondhand Appliances/Clothing - P -
Swap Meets,Indoor/Flea Markets - PC - (T
Swap Meets,Recurring - ZA -
Tattoo Establishments - ZA
Travel Services P P P
Vehicle Equipment/Sales&Services
Automobile Rentals - L-8 L-8 L-12
Automobile Washing - ZA -
Commercial Parkin - ZA ZA (P
Service Stations - PC PC E
Vehicle Equip.Repair - L-5 -
Vehicle Equip. Sales&Rentals ZA ZA - L-12
Vehicle Storage,Impound Yards - PC - AA
934
935
CO CG CV Additional Provisions
Vehicle Storage,Off-Site Auto Dealers - P/ZA - L-17 (BB)
Vehicle Storage,Recreational Vehicles - ZA - (CC)
Offices for Vehicle Equip. Sales&Rentals L-15 L-15 -
Visitor Accommodations
Bed&Breakfast Inns ZA ZA ZA (K
Hotels,Motels - PC PC (I
Condominium-Hotel - - PC Z
Fractional Ownership Hotel
Quasi Residential
Timeshares - PC - (I
Residential Hotel - PC - J
Single Room Occupancy - PC -
Industrial J Q (R V
Industry,Custom - L-6 L-6
Accessory Uses J V
Accessory Uses&Structures P/U P/U P/U
Temporary Uses F J (V
Animal Shows - TU -
Circus and Carnivals and Festivals - TU -
Commercial Filming,Limited - P P M
Real Estate Sales P P P
Retail Sales,Outdoor - TU TU (M
Seasonal Sales TU TU TU M
Tent Event - P -
Trade Fairs - P -
Nonconforming Uses G J V
CO, CG, and CV Districts: Additional Provisions
L-1 Permitted if the space is 5,000 square feet or less; allowed with Neighborhood Notification
pursuant to Chapter 241 if the laboratory space exceeds 5,000 square feet.
L-2 Allowed with a conditional use permit from the Zoning Administrator if the space is 5,000
square feet or less; allowed with a conditional use permit from the Planning Commission if the
space exceeds 5,000 square feet. (See Section 230.52, Emergency Shelters.)
L-3 Allowed with a conditional use permit from the Zoning Administrator if the space is 2,500
square feet or less; allowed with a conditional use permit from the Planning Commission if the
space exceeds 2,500 square feet.
L-4 Reserved. Refer to Section 230.54 Commercial Cannabis Facilities.
NO FURTHER CHANGES TO HBZSO CHAPTER 211 PROPOSED
REMAINDER OMITTED FROM LEGISLATIVE DRAFT
935
936
EXHIBIT 3
HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE
CHAPTER 212 INDUSTRIAL DISTRICTS
212.02 Industrial Districts Established
Three Industrial zoning districts are established by this chapter as follows:
A. The IG General Industrial District provides sites for the full range of manufacturing,
industrial processing, resource and energy production, general service, and distribution.
B. The IL Limited Industrial District provides sites for moderate- to low-intensity industrial
uses, commercial services and light manufacturing.
C. The RT Research and Technology District provides sites for manufacturing, research and
development, technology, and professional offices in addition to traditional industrial uses.
These three districts will herein be referred to as the"Industrial Districts." (3254-10/94, 4039-
12/14, 4183-10/19)
212.04 IG, IL, and RT Districts—Land Use Controls
In the following schedules, letter designations are used as follows:
"P" designates use classifications permitted in the Industrial Districts.
"L" designates use classifications subject to certain limitations prescribed by the "Additional
Provisions" which follow.
"PC" designates use classifications permitted on approval of a conditional use permit by the
Planning Commission.
"ZA" designates use classifications permitted on approval of a conditional use permit by the
Zoning Administrator.
"TU" designates use classifications allowed upon approval of a temporary use permit by the
Zoning Administrator.
"P/U" for an accessory use means that the use is permitted on the site of a permitted use, but
requires a conditional use permit on the site of a conditional use.
936
937
Use classifications that are not listed are prohibited. Letters in parentheses in the "Additional
Provisions" column refer to requirements following the schedule or located elsewhere in this
zoning code. Where letters in parentheses are opposite a use classification heading, referenced
provisions shall apply to all use classifications under the heading.
IG, IL, and RT Districts: Land Use Controls
P = Permitted
L = Limited (see Additional Provisions)
PC = Conditional use permit approved by Planning Commission
ZA = Conditional use permit approved by Zoning Administrator
TU = Temporary use permit
P/U = Requires conditional use permit on site of conditional use
- = Not Permitted
Additional
IG IL RT Provisions
Residential
Group Residential PC PC PC I
Public and Semipublic (A)(L
Community and Human Service Facilities P P P K
Day Care,General ZA ZA ZA
Heliports PC PC PC (N
Maintenance&Service Facilities ZA ZA ZA
Public Safety Facilities P P P
Religious Assembly ZA ZA ZA
Schools,Public or Private L-6 L-6 L-6
Utilities,Major PC IPC PC
Utilities,Minor L-7 L-7 L-7 O
Commercial Uses D L
Ambulance Services ZA ZA ZA
Animal Sales and Services
Animal Boarding ZA ZA ZA
Animal Hospitals ZA ZA ZA
Artists' Studios P P P
Banks and Savings and Loans L-1 L-1 L-I
Building Materials and Services P P P
Catering Services - P P
Commercial Cannabis Facility L_-3, L_3 L-3
Commercial Filming ZA ZA ZA
Commercial Recreation and Entertainment L-2 L-2 PC
Communication Facilities L-12 L-12 L-12
937
938
Additional
IG IL RT Provisions
Eating&Drinking Establishments L-2 L-2 L-2
w/Live Entertainment ZA ZA ZA (R
w/Alcohol ZA ZA ZA
Food&Beverage Sales ZA ZA ZA
Hospitals and Medical Clinics - PC PC
Laboratories P P P
Maintenance&Repair Services P P P
Marine Sales and Services P P P
Nurseries P P P
Offices,Business&Professional L-10 L-10 L-10 (C
Personal Enrichment L-9 L-9 L-9
Personal Services L-1 L-1 L-1
Quasi-Residential PC PC PC (J
Research&Development Services P P P
Sex-Oriented Businesses(regulated by Ch. 5.70) L-11 L-11 L-11
Sex-Oriented Businesses(regulated by Ch. 5.60 PC PC PC Q
Swap Meets,Indoor/Flea Markets PC PC PC P
Vehicle/Equipment Sales&Services
Service Stations L-4 L-4 L-4
Vehicle/Equipment Repair P P P
Vehicle/Equipment Sales/Rentals L-5 L-5 L-5
Vehicle Storage,Impound Yards PC PC PC T
Vehicle Storage,Off-Site Auto Dealers P/ZA P/ZA P/ZA H U W
Vehicle Storage,Recreational Vehicles P/ZA P/ZA P/ZA H (V
Visitor Accommodations ZA ZA ZA
Warehouse and Sales Outlets L-8 L-8 L-8
Industrial(See Chapter 204) (B)(L M
Industry,Custom P P P
Industry,General P P P
Industry,Limited P P P
Industry,R&D P P P
Wholesaling,Distribution&Storage
150,000 square feet or less P P P
Greater than 150,000 square feet P P ZA
RT Flex Space - - P
Alcoholic Beverage Manufacturing P P P L-13
Accessory Uses
Accessory Uses and Structures P/U P/U P/U C
Temporary Uses
Commercial Filming,Limited P P P S
Real Estate Sales P P P
Trade Fairs P P P (E
Nonconforming Uses (F
IG, IL, and RT Districts: Additional Provisions
938
939
L-1 Only allowed upon approval of a conditional use permit by the Zoning Administrator for a
mixed use project, subject to the following requirements:
A. Minimum site area: three acres.
B. Maximum commercial space: 35% of the gross floor area and 50% of the ground floor
area of buildings fronting on an arterial highway.
C. Phased development: 25% of the initial phase must be designed for industrial
occupancy. For projects over 500,000 square feet, the initial phase must include five
percent of the total amount of industrial space or 50,000 square feet of industrial space,
whichever is greater.
L-2 Permitted only when designed and operated for principal use by employees of the
surrounding industrial development as an ancillary use to a primary industrial use. When
designed for general public use, permitted after considering vehicular access and complying
with minimum parking requirements.
L-3 Reid. Refer to Section 230.54 Commercial Cannabis Facilities.
L-4 Only fueling stations offering services primarily oriented to businesses located in an
Industrial District are allowed with a conditional use permit by the Planning Commission.
L-5 No new or used automobile, truck or motorcycle retail sales are permitted.
L-6 Only schools offering higher education curriculums are allowed with conditional use permit
approval by the Planning Commission. No elementary or secondary schools are permitted.
L-7 Recycling operations as an accessory use are permitted if more than 150 feet from R
districts; recycling operations as an accessory use less than 150 feet from R districts or
recycling operations as a primary use are allowed upon approval of a conditional use permit by
the Zoning Administrator. See Section 230.44, Recycling Operations.
L-8 Allowed upon conditional use permit approval by the Planning Commission when a single
building with a minimum area of 100,000 square feet is proposed on a site fronting an arterial.
The primary tenant shall occupy a minimum 95% of the floor area and the remaining 5% may be
occupied by secondary tenants.
L-9 Permitted if the space is 5,000 square feet or less; allowed by conditional use permit from
the Zoning Administrator if the space is over 5,000 square feet.
L-10 Accessory administrative, management, regional or headquarters offices incidental to a
primary industrial use within the IG and IL Districts are limited to 10% of the floor area of the
primary industrial use. Accessory office uses incidental to a primary use within the RT District
are limited to 30% of the floor area of the primary use.
Accessory office spaces exceeding the limits above shall require a conditional use permit to the
Zoning Administrator supported by a parking demand study for all uses on site.
939
940
Medical/dental offices, insurance brokerage offices, and real estate brokerage offices, except for
on-site leasing offices, are not permitted in any Industrial District.
L-11 Allowed subject to the following requirements:
A. A proposed sex-oriented business shall be at least 500 feet from any residential use,
school, park and recreational facility, or any building used for religious assembly
(collectively referred to as a "sensitive use") and at least 750 feet from another sex-oriented
business. For purposes of these requirements, all distances shall be measured from the lot
line of the proposed sex-oriented business to the lot line of the sensitive use or the other
sex-oriented business. The term "residential use" means any property zoned RL, RM,
RMH, RH, RMP, and any properties with equivalent designations under any specific plan.
To determine such distances the applicant shall submit for review a straight line drawing
depicting the distances from the lot line of the parcel of land on which the sex-oriented
business is proposed which includes all the proposed parking and:
1. The lot line of any other sex-oriented business within 750 feet of the lot line of the
proposed sex-oriented business; and
2. The lot line of any building used for religious assembly, school, or park and
recreational facility within 500 feet of the lot line of the proposed sex-oriented
business; and
3. The lot line of any parcel of land zoned RL, RM, RMH, RH, and RMP and any
parcels of land with equivalent designations under any specific plans within 500 feet of
the lot line of the proposed sex-oriented business.
B. The front fagade of the building, including the entrance and signage, shall not be
visible from any major, primary or secondary arterial street as designated by the circulation
element of the General Plan adopted May 1996, with the exception of Argosy Drive.
C. Prior to or concurrently with applying for a building permit and/or a certificate of
occupancy for the building, the applicant shall submit application for Community
Development Department staff review of a sex-oriented business zoning permit with the
drawing described in subsection A, a technical site plan, floor plans and building
elevations, and application fee. Within 10 days of submittal, the Director shall determine if
the application is complete. If the application is deemed incomplete, the applicant may
resubmit a completed application within 10 days. Within 30 days of receipt of a completed
application, the Director shall determine if the application complies with the applicable
development and performance standards of the Huntington Beach Zoning and Subdivision
Ordinance. Said standards include but are not limited to the following:
1. Chapter 203, Definitions; Chapter 212, Industrial Districts; Chapter 230, Site
Standards; Chapter 231, Off-Street Parking and Loading Provisions; Chapter 232,
Landscape Improvements; and Chapter 236, Nonconforming Uses and Structures.
2. Section 233.08(B), Signs. Signage shall conform to the standards of the
Huntington Beach Zoning and Subdivision Ordinance except:
940
941
a. Such signs shall contain no suggestive or graphic language, photographs,
silhouettes, drawings, statues, monuments, sign shapes or sign projections, or
other graphic representations, whether clothed or unclothed, including without
limitation representations that depict "specified anatomical areas" or "specified
sexual activities"; and
b. Only the smallest of the signs permitted under Section 233.08(B) shall be
visible from any major, primary or secondary arterial street, such streets shall be
those designated in the circulation element of the General Plan adopted May
1996, with the exception of Argosy Drive.
3. Compliance with Huntington Beach Municipal Code Chapter 5.70.
D. The Director shall grant or deny the application for a sex-oriented business zoning
permit for a sex-oriented business. There shall be no administrative appeal from the
granting or denial of a permit application thereby permitting the applicant to obtain prompt
judicial review.
E. Ten working days prior to submittal of an application for a sex-oriented business
zoning permit for staff review, the applicant shall: (1) cause notice of the application to be
printed in a newspaper of general circulation; and (2)give mailed notice of the application
to property owners within 1,000 feet of the proposed location of the sex-oriented business;
and (3) the City of Huntington Beach, Department of Community Development by first class
mail.
The notice of application shall include the following:
1. Name of applicant;
2. Location of proposed sex-oriented business, including street address (if known)
and/or lot and tract number;
3. Nature of the sex-oriented business, including maximum height and square
footage of the proposed development;
4. The City Hall telephone number for the Department of Community Development
to call for viewing plans;
5. The date by which any comments must be received in writing by the Department
of Community Development. This date shall be 10 working days from staff review
submittal; and
6. The address of the Department of Community Development.
F. A sex-oriented business may not apply for a variance pursuant to Chapter 241 nor a
special sign permit pursuant to Chapter 233.
G. A sex-oriented business zoning permit shall become null and void one year after its
date of approval unless:
941
942
1. Construction has commenced or a certificate of occupancy has been issued,
whichever comes first; or
2. The use is established.
H. The validity of a sex-oriented business zoning permit shall not be affected by changes
in ownership or proprietorship provided that the new owner or proprietor promptly notifies
the Director of the transfer.
I. A sex-oriented business zoning permit shall lapse if the exercise of rights granted by it
is discontinued for 12 consecutive months.
L-12 For wireless communication facilities see Section 230.96, Wireless Communication
Facilities. All other communication facilities permitted.
L-13 Alcoholic Beverage Manufacturing Requirements.
1. Alcoholic Beverage Manufacturing uses without eating and drinking for public sales or
service are permitted.
2. A maximum 1,000 square feet of indoor and/or outdoor eating and drinking area per
business shall be permitted through an Administrative Permit with Neighborhood
Notification pursuant to Chapter 241.
3. Indoor and/or outdoor eating and drinking areas greater than 1,000 square feet per
business shall require a conditional use permit by the Zoning Administrator.
(A) Repealed.
(B) A conditional use permit from the Zoning Administrator is required for any new use or
enlargement of an existing use, or exterior alterations and additions for an existing use
located within 150 feet of an R district. The Director may waive this requirement if there is
no substantial change in the character of the use which would affect adjacent residential
property in an R District.
(C) Accessory office uses greater than the maximum allowable percentage of the floor
area of the primary industrial use shall require a conditional use permit from the Zoning
Administrator and a parking demand study demonstrating the adequate provision of on-site
parking for all uses contained onsite.
(D) In IG and IL Districts only, commercial space excluding business and professional
office, not to exceed 25% of the floor area of the primary industrial use, is allowed with a
conditional use permit from the Zoning Administrator, provided that it is intended primarily
to serve employees of the industrial use, no exterior signs advertise the adjunct use, the
adjunct use is physically separated from the primary industrial use, and the primary
industrial fronts on an arterial.
(E) See Section 241.22, Temporary Use Permits.
942
943
(F) See Chapter 236, Nonconforming Uses and Structures.
(G) Reserved.
(H) Permitted pursuant to an Administrative Permit if the property is 300 feet or more from
a parcel used or zoned for residential development. Permitted pursuant to a conditional use
permit from the Zoning Administrator if less than 300 feet from a parcel used or zoned for
residential development.
(1) Limited to facilities serving workers employed on-site.
(J) Limited to single room occupancy uses. (See Section 230.46.)
(K) Limited to emergency shelters. (See Section 230.52, Emergency Shelters.)
(L) Development of vacant land and/or additions of 10,000 square feet or more in floor
area; or additions equal to or greater than 50% of the existing building's floor area; or
additions to buildings on sites located within 300 feet of a residential zone or use for a
permitted use requires approval of a conditional use permit from the Zoning Administrator.
The Community Development Director may refer any proposed addition to the Zoning
Administrator if the proposed addition has the potential to impact residents or tenants in the
vicinity (e.g., increased noise, traffic).
(M) Major outdoor operations require conditional use permit approval by the Planning
Commission. Major outside operations include storage yards and uses utilizing more than
one-third of the site for outdoor operation.
(N) See Section 230.40, Helicopter Takeoff and Landing Areas.
(0) See Section 230.44, Recycling Operations.
(P) See Section 230.50, Indoor Swap Meets/Flea Markets.
(Q) See L-11(A) relating to locational restrictions.
(R) Non-amplified live entertainment greater than 300 feet from a residential zone or use
shall be permitted without a conditional use permit. Neighborhood Notification requirements
when no entitlement required pursuant to Chapter 241.
(S) Subject to approval by the Police Department, Public Works Department, and Fire
Department and the Community Development Director.
(T) In all districts, storage areas shall be screened from view on all sides by a solid wall
made of either block, masonry, wood, vinyl or other similar material. The wall shall not be
less than six feet in height and set back a minimum 10 feet from abutting streets with the
entire setback area permanently landscaped and maintained.
(U) In all districts, storage areas shall be screened from view on all sides adjacent to a
public right-of-way by a solid wall made of either brick, block, masonry, wood, vinyl or other
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similar material. The wall shall include a minimum 10-foot return on all sides. The wall shall
not be less than six feet in height and set back a minimum 10 feet from abutting streets
with the entire setback area permanently landscaped and maintained.
(V) In all districts, storage areas shall be screened from view on all sides adjacent to a
public right-of-way by a solid wall made of either block, masonry, wood, vinyl or other
similar material. The wall shall include a minimum ten foot return on all sides. The wall shall
not be less than six feet in height and set back a minimum 10 feet from abutting streets
with the entire setback area permanently landscaped and maintained. Screening on the
remaining sides shall be evaluated based on proposed site conditions as determined
during the entitlement process.
(W) Auto storage uses on public agency owned property shall be permitted by right
pursuant to submittal of a Parking Area Plan. See Section 231.26. (3254-10/94, 3378-2/98,
3523-2/02, 3568-9/02, 3703-3/05, 3708-6/05, 3724-02/06, 3788-12/07, 3843-11/09, 3860-
2/10, 4039-12/14, 4092-10/16, 4183-10/19, 4198-3/20)
NO FURTHER CHANGES TO HBZSO CHAPTER 212 PROPOSED
REMAINDER OMITTED FROM LEGISLATIVE DRAFT
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EXHIBIT 4
HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE
CHAPTER 230 SITE STANDARDS
Article II.Nonresidential Districts
230.32 Service Stations
Not Amended
230.34 Housing of Goods
Not Amended
230.36 Transportation Demand Management
Not Amended
230.38 Game Centers
Not Amended
230.40 Helicopter Takeoff and Landing Areas
Not Amended
230.42 Bed and Breakfast Inns
Not Amended
230.44 Recycling Operations
Not Amended
230.46 Single Room Occupancy
Not Amended
230.48 Equestrian Centers
Not Amended
230.50 Indoor Swap Meets/Flea Markets
Not Amended
230.52 Emergency Shelters
Not Amended
230.54 Commercial Cannabis Facilities
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A. Purpose
It is the purpose and intent of this Chapter 230.54 to implement State Law, which includes,
but is not limited to, the provisions of the Medicinal Adult-Use Cannabis Recreation and
Safety Act, Business and Professions Code §§ 26000. et seq., as it may be augmented and
amended from time to time (hereinafter, "MAUCRSA"), while imposing regulations on
the use of land to protect the City's neighborhoods, residents. and businesses from neoative
impacts. It is a further purpose and intent of this Chapter 230.54 to regulate the indoor
cultivation. retail sale. delivery, manufacturing, processing. testing, and distribution of
cannabis and cannabis-related products in a manner which is responsible, which protects
the health,safety.. and welfare of the residents of Huntington Beach,and which is consistent
with the rules and regulations imposed by State Law. Nothing in this Chapter 230.54 is
intended to authorize tine possession,use, sale, or provision of cannabis for purposes which
violate State Law.
In addition, nothing in this Chapter permits persons to engage in conduct that endangers
others or constitutes a public nuisance. The requirements of this Chapter are in addition to
any other permits, licenses or approvals required to conduct business in Huntington Beach
or under State. County, or other law.
B. Location of Commercial Cannabis Facilities
Applicants for Commercial Cannabis Permits must meet all minimum qualifications outlined
in the standards and criteria set forth in Chapter 5.130 Cannabis Business Regulation of the
Huntington Beach Municipal Code (HBMC).
1. Location and Separation Requirements
A Commercial. Cannabis Facility that meets the Separation Requirements identified in
Table 1 (Permitted Zones and Separation Requirements), and has obtained a valid
Commercial Cannabis Permit and Operating Agreement per the HBMC may locate
on any of the following parcels:
a. Parcels designated by the General Plan and Zoning Code for Industrial land
uses; and
b. Parcels designated by the General Plan and Zoning Code for Commercial
land use; and
c. Parcels designated by the General Plan and Zoning Code for mixed-use.
d. Commercial Cannabis Businesses are prohibited in the Downtown Specific
Plan (SP5) area, the Sunset Beach Specific Plan (SP17) area, and properties
within the Coastal Zone Overlay.
e. No Commercial Cannabis Facility shall be located within one thousand
(1000) feet as measured from occupied premises to the property line of any
middle or high school (grades 6-12 whether public, private, or charter) or six
hundred (600) feet, as measured from the occupied premises to tine property
line of any K-5 school, licensed commercial day care center, youth center. or
park.
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f. Outdoor cultivation is expressly prohibited in all zoning districts in the City.
Cannabis Deliveries within the City of Huntington Beach are prohibited,
unless the Delivery originated from a Retailer located in Huntington Beach
that has obtained a valid Commercial Cannabis Permit, or if the Retailer is
located outside the City of Huntington Beach, and has obtained a business
license froth the City of Huntington Beach.
Permitted Zones and Separation Requirements
Commercial
Cannabis State License Type Zoning Buffer Zone Permit Type(s)
Facility District Required
Type
Type I A (Indoor<5000 SF), 600 feet away from
Type 2A (Indoor 5001-10,000 K-5 schools, day Commercial
Cultivation— SF). Type 3A Indoor 10,001- care centers, youth Cannabis Permit_
Indoor 2?.000), Type 4 (Nursery— Industrial centers, and parks. State License;
1000 feet away Huntington Beach
Indoor Only), Type 5A (Indoor
from all other Business License
22.000+ SF) schools.
Type 1 (Outdoor<5000 SF),
Type 1 B (Mixed Light<5000
SF), Type 2 (Outdoor 5001-
10.000 SF), Type 2B (Mixed
Light 5001-10,000 SF); Type 3
Cultivation— (Outdoor 10,001-22.000 SF); Prohibited N/A N/A
Outdoor Type 3B (Artificial Light
10,001-22,000 SF); Type 4
(Nursery-Outdoor), Type 5
(Outdoor 22,000+ SF); Type 5B
(Mixed Light (22,000+SF
Delivery— Non Type 9 (non-storefront);Type 10 Huntington Beach
Huntington (storefront), Type IOA (less than N/A N/A
Beach Retailer 3 retailers) Business License
Type 9:
Retailer must
be located in
Retailer must
Industrial
obtain Commercial
Delivery— Type 9 (non-storefront);Type 10 Zone
Huntington (storefront), Type I OA (less than N/A Cannabis Permit;
Beach Retailer 3 State License
retailers) Type 10. 10A: ;
Both Huntington Beach
Commercial Business License
and Industrial
Zones
Distribution Type I 1 (distribution):Type 13 Industrial 600 feet away from Commercial
(trans portation) K-5 schools. day Cannabis Permit:
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care centers, youth State License:
centers. and parks. Huntington Beach
1000 feet away Business License
from all other
schools.
600 feet awav from
K-5 schools, day Commercial
Type 6 (non-volatile); Type 7 care centers, youth Cannabis Perniit:
Manufacturing (volatile); Type N; Type P; Tyke Industrial centers, and parks. State License:
S 1000 feet away Huntington Beach
from all other Business License
schools.
Microbusinesses Type 12 Prohibited N/A N/A
Type 9:
Retailer must
be located in 600 feet axvay from
Industrial K-5 schools, day Commercial
Type 9 (non-storefront);Type 10 Zone care centers,youth Cannabis Permit;
Retailer (storefront); Type I OA (less than centers, and parks. State License:
3 retailers) Type 10, 1OA: 1000 feet awav Huntington Beach
Both from all other Business License
Commercial schools.
and Industrial
Zones
600 feet away from
K-5 schools. day Commercial
care centers, youth Cannabis Permit:
Testing Type 8 Industrial centers, and parks. State License:
Laboratory 1000 feet away Huntington Beach
from all other Business License
schools.
Event Event organizer or Temporary prohibited
Cannabis Event
230.56 Reserved
230.58 Reserved
230.60 Reserved
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* WORKING DRAFT X�
CITY OF HUNTINGTON BEACH
COMMERCIAL CANNABIS REGULATIONS
Pursuant to the authority granted under Chapter 5.130 of the Huntington Beach Municipal Code
and under state law, the City Manager and designee (or approved via Council Resolution) hereby
promulgates there Regulations necessary to carry out the purposes of Chapter 5.130 and which
shall apply in addition to the requirements set forth in Chapter 5.130 and applicable local and
state law.
In the absence of, specific provisions in the HBMC or these Regulations, the relevant laws and
regulations of the State of California shall apply.
The City Commercial Cannabis Regulations shall govern the following areas:
• Commercial Cannabis Permit application and renewal criteria and processes,
• Regulation and oversight of Commercial Cannabis Facilities,
• Operational requirements imposed on such Facilities, and
• Any other subject determined to be necessary to carry out the purposes of Chapter 5.130
of the Huntington Beach Municipal Code.
Compliance with the City's Commercial Cannabis Regulations is required to engage in
Commercial Cannabis Activity, and failure to do so is grounds for revocation, suspension or non-
renewal of a Commercial Cannabis Permit, as well as the other penalties set forth in Chapter
5.130 of the Huntington Beach Municipal Code.
Section I. Application and Approval Procedures
TBD
Section 2. Application Requirements
TBD
Section 3. Premises Requirements
TBD
Section 4. General Operational Standards.
A. Pre-Operational Requirements
Prior to commencing operations, and as a precondition for commencing such operations,
a Commercial Cannabis Facility and its Owners and operators shall:
1) Obtain any and all required land use entitlements and approvals and comply with
any California Environmental Quality Act requirements related thereto.
2) Be subject to a mandatory building inspection and obtain all required permits and
approvals that would otherwise be required for any business of the same size and
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intensity operating in the Industrial or Commercial zone. This includes but is not
limited to obtaining any required building permit(s), certificates of occupancy, Fire
Department approvals, and other zoning and land use permit(s) and approvals.
3) Remedy any expired building permits for the subject tenant space.
4) The Huntington Beach Fire Department shall perform a fire and life safety
inspection prior to occupancy of the facility. Any deficiencies identified during the
inspection shall be corrected prior to approval of occupancy. Any hazardous
materials that will be used or stored within a facility must be disclosed to the
Huntington Beach Fire Department.
5) Execute an agreement, in a form approved by the City Attorney, agreeing to
indemnify, defend (at Applicant's sole cost and expense), and hold the City of
Huntington Beach, and its officers, officials, employees, representatives, and agents,
harmless, from any and all claims, losses, damages, injuries, liabilities or losses
which arise out of, or which are in any way related to, the City's issuance or failure
to issue a Commercial Cannabis Permit, the City's decision to approve or its refusal
to approve the operation of the Commercial Cannabis Facility, the process used by
the City in making its decision, or the alleged violation of any federal, State or local
laws by the Commercial Cannabis Facility or any of its Owners, officers, Employees
or agents.
6) Obtain and consistently maintain insurance at coverage limits and with conditions
thereon determined necessary and appropriate by the City Attorney.
7) Obtain a Commercial Cannabis Permit and pay all fees and charges required by the
City or any other local, State, or federal agency for the operation of a Commercial
Cannabis Facility.
8) Comply with all State and local laws and regulations, including but not limited to the
requirements of Chapter 5.130 of the Huntington Beach Municipal Code, the City
Commercial Cannabis Regulations, the requirements of the Commercial Cannabis
Permit, and State Law.
9) Obtain a valid State Licenses allowing for the operation of a Commercial Cannabis
Facility.
10) Apply for and obtain a City of Huntington Beach business licenses.
B. Operational Standards Applicable to All Cannabis Facilities
While engaged in Commercial Cannabis Activities, all Commercial Cannabis Facilities
shall comply with the following operational requirements:
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1) Conform to the City's General Plan, any applicable specific plans, master plans, and
design requirements.
2) Comply with all applicable zoning and related development standards.
3) Dual Permits Posted and Visible. A copy of the Commercial Cannabis Permit issued
by the City pursuant to Chapter 5.130 of the Huntington Beach Municipal Code,
together with a copy of the appropriate State License(s) for the Commercial
Cannabis Activity being conducted, shall be posted and readily visible to the public
at all time, at each location where Commercial Cannabis Activity occurs.
4) Any Permittee shall keep the Commercial Cannabis Permit in or upon the
Permittee's business vehicles the business permit or other form of Licenses as
designated by the City Manager issued for such vehicle.
5) Any Permittee transacting and carrying on business but not operating at a fixed place
of business in the City shall keep the Commercial Cannabis Permit upon his or her
person at all times while transacting and carrying on such business and have in or
upon each of the Permittee's business vehicles, at the time of operation in this City,
the business permit or other form of Licenses as designated by the City Manager
issued for such vehicles.
6) Be sited and/or operated in a manner that prevents cannabis odors from being
detected off site. Commercial cannabis activities shall not create offensive or
excessive odors, dust, heat, noise, light,glare, smoke, traffic, or hazards due to the
use or storage of materials, processes, products or wastes, or other unreasonable
impacts to people of normal sensitivity living, working or lawfully present in the
vicinity of the commercial facility. Commercial Cannabis Facilities shall be
constructed in a manner that promotes quality design and construction, and
consistency with the surrounding properties.
7) Be provided with adequate electricity, sewerage, disposal, water, fire protection and
storm drainage facilities for the intended purpose.
8) Maintain sufficient security measures to deter and prevent the unauthorized entrance
into areas containing Cannabis or Cannabis Products, and to deter and prevent the
theft of Cannabis or Cannabis Products at the Commercial Cannabis Facility,
consistent with State Law.
9) Cooperate with the City if it makes a request, upon reasonable notice to the
Commercial Cannabis Facility, to inspect or audit the effectiveness of any security
plan or of any other requirement of this Section.
10) Production of Originals for Inspection. Any Owner, operator, Employee or person in
charge of a Commercial Cannabis Activity shall produce for inspection and copying,
upon request of an authorized City personnel during normal operating hours, the
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original of the current and valid Commercial Cannabis Permit and the appropriate,
current and valid Licenses(s) of the State of California for the Commercial Cannabis
Activities or commercial Cannabis Businesses being conducted.
11) Refrain from displaying Cannabis Products or graphics depicting Cannabis or
Cannabis Products so as to be visible from the exterior of any property issued a
Commercial Cannabis Permit, or on any of the vehicles owned or used as part of the
Commercial Cannabis Facility.
12) Refrain from displaying any signage, packaging, or other display that is "attractive"
to minors as defined by State Law, as well as from any outdoor storage or display of
Cannabis or Cannabis Products.
13) Provide the City with the name, telephone number of an on-site Employee or Owner
to whom emergency notice can be provided at any hour of the day.
14) Prohibit any person under the age of twenty-one (21) years old from entering upon
the Commercial Cannabis Facility premises or being employed by the Commercial
Cannabis Facility.
15) Prohibit the sale, dispensing, or consumption of alcoholic beverages or tobacco
products on or about the premises of the Commercial Cannabis Facility.
16) Permitted Commercial Cannabis Facilities shall not receive, store, hold or sell
Cannabis or Cannabis Products unless the cannabis and cannabis products are
labeled and packaged as required by State law and regulations.
17) Permitted Commercial Cannabis Facilities are prohibited from giving away any
amount of Cannabis or Cannabis Products and are prohibited from providing
coupons as part of a business promotion.
18) Ensure that the Commercial Cannabis Facility is monitored at all times by web-
based closed circuit television for security purposes and maintain and provide the
City with access to those recordings as provided in the City Commercial Cannabis
Regulations.
19) If the Commercial Cannabis Facility employs two (2) or more Employees (computed
as "full time"non-supervisorial Employee equivalent positions where an Employee
full time equivalent works 1700 hours per year), enter into a Labor Peace Agreement
and provide City with evidence of such Labor Peace Agreement within ninety (90)
days following the date when the number of Employees exceed two (2) full-time
positions.
20)Signage. Every entrance to licensed commercial Cannabis Business shall be clearly
and legibly posted with the following notice: "ENTRY ONTO THESE PREMISES
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BY PERSONS UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. VALID
PHOTO ID REQUIRED."
21) Comply with the City's Commercial Cannabis Regulations and any Commercial
Cannabis Facility operational requirements or regulations as are determined by the
City Manager to be necessary to protect the public health, safety and welfare.
22) Background Check. Pursuant to California Penal Code Sections 111 05(b )(11) and
13300(b )( 11 ), which authorizes city authorities to access state and local summary
criminal history information for employment, licensing, or certification purposes;
and authorizes 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 person listed as an owner,
manager, supervisor, employee, or volunteer of the commercial cannabis business
must submit fingerprints and other information deemed necessary by the Police
Chief or his/her designee for a background check by the Huntington Beach Police
Department. Pursuant to California Penal Code Sections 111 05(b) (11) and
13300(b) (11), which require that there be a requirement or exclusion from
employment, licensing, or certification based on specific criminal conduct on the
part of the subject of the record. No person shall be issued a permit to operate a
commercial cannabis business or a related work permit unless they have first cleared
the background check, as determined by the Police Chief or his/her designee, as
required by this Section. A fee for the cost of the background investigation, which
shall be the actual cost to the City to conduct the background investigation as it
deems necessary and appropriate, shall be paid at the time the application for a
commercial cannabis permit is submitted.
23) Employee breakrooms, eating areas, changing facilities, locker rooms and bathrooms
shall be completely separated from areas where Cannabis is stored.
C. Security and Safety Measures Applicable to All Commercial Cannabis Facilities
1) Each Commercial Cannabis Facility shall have a security plan approved by the Chief
of Police or designee prior to issuance of a Commercial Cannabis Permit.
2) A permitted Commercial Cannabis Facility shall implement sufficient security
measures to deter and prevent the unauthorized entrance into areas containing
Cannabis or Cannabis Products, and to deter and prevent the theft of Cannabis or
Cannabis Products at the Commercial Cannabis Facility. Except as may otherwise be
determined by the City Manager or his/her designee, these security measures shall
include, but shall not be limited to, all of the following:
a. Preventing individuals from remaining on the premises of the Commercial
Cannabis Facility if they are not engaging in an activity directly related to the
permitted operations of the Commercial Cannabis Activities.
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b. Establishing limited access areas accessible only to authorized Commercial
Cannabis Facility personnel.
c. Except for live growing plants that are being cultivated at a Cultivation site, all
Cannabis and Cannabis Products shall be stored in a secured and locked room,
safe, display case, or vault. All Cannabis and Cannabis Products, including live
plants that are being cultivated, shall be kept in a manner as to prevent
diversion, theft, and loss.
Outdoor storage of Cannabis or Cannabis Products is prohibited. All Cannabis
and Cannabis Products must be stored on the licensed premises.
d. Installing 24-hour security surveillance cameras of at least 1080P to monitor all
entrances and exits to and from the premises, all interior spaces within the
Commercial Cannabis Facility which are open and accessible to the public, all
interior spaces where Cannabis, cash or currency, is being stored for any period
of time on a regular basis and all interior spaces where diversion of Cannabis
could reasonably occur. The Permittee shall be responsible for ensuring that
the security surveillance camera's footage is available upon demand by the
City. Video recordings shall be maintained for a minimum of ninety (90) days
and shall be made available to the City Manager or his/her designee upon
request.
e. Electronic copies of video must be made available to the Huntington Beach
Police Department(HBPD) within 48 hours of request without a search
warrant, court order, or subpoena. Digital recordings shall be made available
for viewing on-scene upon request by police personnel conducting
investigations. Video shall be of sufficient quality for effective prosecution of
any crime found to have occurred on the site of the Commercial Cannabis
Facility. The business is required to have someone able to operate the system
on duty during all business hours.
f. The facility shall maintain a map of the camera locations, the direction of
camera coverage, and assigned camera numbers at the premises.
g. Sensors shall be installed to detect entry and exit from all secure areas.
h. Panic buttons shall be installed in all Commercial Cannabis Facilities.
i. Commercial Cannabis Facilities shall have a professionally installed,
maintained, and monitored alarm system.
j. Any bars installed on the windows or the doors of the Commercial Cannabis
Facility shall be installed only on the interior of the building.
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k. Security personnel shall be on-site 24 hours a day unless alternative security is
authorized by the City Manager or his/her designee. Security personnel must
be licensed by the State of California Bureau of Security and Investigative
Services personnel and shall be subject to the prior review and approval of the
City Manager or his/her designee, with such approval not to be unreasonably
withheld.
1. Each Commercial Cannabis Facility shall have the capability to remain secure
during a power outage and shall ensure that all access doors are not solely
controlled by an electronic access panel to ensure that locks are not released
during a power outage.
3) Each Commercial Cannabis Facility shall identify a designated security representative
or liaison to the City of Huntington Beach, who shall be reasonably available to meet
with the City Manager or his/her designee at any time regarding any security related
measures or and operational issues.
4) As part of the application and permitting process, each Commercial Cannabis Facility
shall have a storage and transportation plan describing in detail the procedures for
safely and securely storing and transporting all Cannabis, Cannabis Products, and any
currency.
5) The City, County, or any investigating official shall have the right to enter the
premises of Commercial Cannabis Facility from time to time during regular business
hours to conduct reasonable inspections to enforce compliance with Chapter 5.130 of
the Huntington Beach Municipal Code and with building, fire, electrical, plumbing,
and/or State and local health and safety regulations.
6) No person shall refuse to permit or interfere with a lawful inspection of the
establishment by City or County investigating officials.
7) A Commercial Cannabis Facility shall notify the City Manager or his/her designee
within twenty-four(24) hours after discovering any of the following:
a. Significant discrepancies identified during inventory. The level of significance
shall be determined by the regulations promulgated by the City Manager or
his/her designee.
b. Diversion, theft, loss, or any criminal activity involving the Commercial
Cannabis Facility or any agent or Employee of the facility.
c. The loss or unauthorized alteration of records related to Cannabis, registering
qualifying patients, primary caregivers, or Employees or agents of the
Commercial Cannabis Facility.
d. Any other breach of security.
D. Additional Operational Standards Applicable to Cannabis Retailers
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1) Cannabis Retailers shall be open to the public between the hours of 8:00 a.m. and
8:00 p.m. daily.
2) All structures included as part of the permitted Commercial Cannabis Facility shall be
permanently affixed to land by a method that would normally cause the structure to
ordinarily remain affixed for an indefinite period of time. Cannabis Retailers shall
not operate from a vehicle or non-permanent structure.
3) Commercial Cannabis Retailers shall provide at least one (1)private security
personnel during all hours of operation who is licensed by the State of California
Bureau of Security and Investigative Services and possesses a valid California
Department of Consumer Affairs "security guard card."
4) No non-Cannabis food or concessions shall be sold or distributed at the Premises.
5) Shipments of Cannabis and Cannabis Products may only be accepted during regular
business hours.
6) A permitted Commercial Cannabis Retail Facility shall have twelve (12) months after
Permit issuance by the City of Huntington Beach to commence operations unless
permitted by the City.
E. Additional Operational Standards Applicable to Cannabis Retail Deliveries
1) Hours of delivery shall be limited to between 6 a.m. and 10 p.m. daily.
2) Commercial Cannabis Retail Deliveries may be made only from a Commercial
Cannabis Retail Facility permitted by the City in compliance with Chapter 5.130 of
the Huntington Beach Municipal Code and State Law. Deliveries from Cannabis
Retailers located outside the City of Huntington Beach are prohibited, unless the
Retailer obtains a Huntington Beach Business Licenses.
3) Cannabis and Cannabis Product shall only be delivered to a residential dwelling, or to
a commercial building or structure being lawfully used for lodging or temporary
dwelling purposes (e.g., hotels or motels) if such Delivery is expressly permitted by
the Owner of the building or structure. Deliveries shall not be made to, or through the
use of, any kiosk or temporary building or structure, nor for purposes of re-sale of the
Cannabis and Cannabis Product that is delivered.
4) All Employees who deliver Cannabis and Cannabis Product shall have valid
identification and a copy of the Commercial Cannabis Retail Facility Permit and State
Licenses at all times while making Deliveries.
5) During Delivery, the Delivery Employee shall maintain a physical or electronic copy
of the Delivery request and shall make it available upon request by the licensing
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authority and law enforcement officers. The Delivery request documentation shall
comply with State Law.
6) A Commercial Cannabis Retail Facility shall maintain a list of all Deliveries,
including the address delivered to, the amount and type of product delivered, and any
other information required by State Law.
F. Additional Operational Standards Applicable to Cannabis Manufacturers
1) Any Manufacturing that will be conducted by a commercial Cannabis Manufacturer
shall be included on the Commercial Cannabis Permit application. No additional
Manufacturing activity shall be conducted without notifying the City Manager, after
which a determination will be made if the new activity may commence with or
without modification to the Commercial Cannabis Permit or if a new Commercial
Cannabis Permit is required.
2) At all times, the commercial Cannabis Manufacturing facility shall comply with all
State regulations for Cannabis Manufacturing. Signage shall be posted regarding the
type(s) of chemicals and products being used at the Manufacturing facility such as
materials safety data sheet requirements.
3) Commercial Cannabis Manufacturing facilities shall not contain an exhibition or
product sales area or allow for Retail Distribution of products at that location.
4) Extraction equipment and extraction processes utilizing hydrocarbon solvents shall be
located in a room or area dedicated to extraction.
5) All commercial Cannabis Manufacturing facilities shall submit plans to the
Huntington Beach Fire Department showing that the facility is compliant with the
applicable California Fire Code at permit issuance. The submittal shall disclose all
materials, identify any hazardous processes within the facility, and identify all fire
protection systems that are required for the facility.
6) Outdoor Manufacturing of Cannabis or Cannabis Products is prohibited.
G. Additional Operational Standards Applicable to Cannabis Distributors
1) A Distributor shall ensure that Cannabis and Cannabis Products are stored in
compliance with applicable State Laws and regulations in conformity with all
applicable track and trace systems required by the State.
H. Additional Operation Standards Applicable to Cannabis Cultivators
1) There shall be no exterior evidence of Cannabis Cultivation from a public right-of-
way. The Building Official may impose additional specific requirements to meet the
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California Building Code and Fire Code, including but not limited to installation of
fire suppression sprinklers.
2) Compliance with Section 13149 of Water Code as enforced by the State Water
Resources Control Board is required.
3) Pesticides and fertilizers shall be properly labeled, stored, and applied to avoid and
prevent contamination through erosion, leakage, or inadvertent damage from rodents,
pests, or wildlife.
4) All commercial Cannabis Cultivation facilities shall submit plans to the Huntington
Beach Fire Department showing that the facility is compliant with the applicable
California Fire Code at permit issuance. The submittal shall disclose all hazardous
materials, identify any hazardous processes within the facility, and identify all fire
protection systems that are required for the facility.
5) Commercial Cannabis Cultivation facilities shall not contain an exhibition or product
sales area or allow for Retail Distribution of products at that location.
1. Additional Operational Standards Applicable to Cannabis Testing Laboratories.
1) A Licensed Cannabis Testing Laboratory and/or its Owners or Employees may not
hold an interest in any other Cannabis Business except another Testing Laboratory
business.
2) All Cannabis Testing Laboratories shall be accredited by an appropriate accrediting
agency as approved by the State.
3) The cannabis testing laboratory operating plan demonstrates proper protocols and
procedures for statistically valid sampling methods and accurate certification of
cannabis and cannabis products for potency, purity, pesticide residual levels, mold,
and other contaminants according to adopted industry standards.
4) All commercial Cannabis Testing Laboratory facilities shall submit plans to the
Huntington Beach Fire Department show that the facility is compliant with the
applicable California Fie Code at permit issuance. The submittal shall disclose all
hazardous materials, identify any hazardous processes within the facility, and identify
all fire protection systems that are required for the facility.
101Page
958
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City of Huntington Beach - Amw
Cannabis Regulatory
Framework & Draft Ordinances
City Council Meeting
June 21, 2022
suppLEMENTA,L
COMMUNICATION
Meeft Dom:
140m No.: ��
Background - City of Huntington Beach
• The City prohibits medicinal and recreational cannabis activities in the City.
o Exception: allowing/regulating non-medical marijuana cultivation per a private
residence up to six plants
• Two private parties have filed separate cannabis petitions requesting that the City
prepare documents allowing their proposed regulations to be placed before the voters
of Huntington Beach for consideration.
o November 3, 2021 — Huntington Beach Cannabis Taxation and Regulation Act
o December 2, 2021 — Huntington Beach Cannabis Regulation & Land Use Measure
• These initiative measures were created without City Council or staff input.
��N11NC?0
June 21,
O \,ccxvawarFe ti�
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Council
FUUNTY CPS\
Background - Continued
• On December 21 , 2021 Study Session, the City Council formed an ad-hoc
subcommittee, consisting of Councilmembers Bolton, Kalmick and Peterson, to
further assess, research and present a balanced cannabis regulatory framework
for the Council's consideration.
• On February 15, 2022 Study Session, the Subcommittee presented the preliminary
framework to the City Council.
• On March 1 , 2022, the City Council voted to place a measure on the 2022 Primary
Election ballot, Measure A: Cannabis Business Tax Measure, asking voters
whether to adopt a special tax levied on cannabis retail and non-retail businesses
if they were to be permitted.
��NTINGTO
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June 21, 2022 City Council Meeting 3
� _L x
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Background - Continued
The City Council directed staff and the Subcommittee members to discuss the
implications of various unresolved policy and regulatory matters associated with
cannabis and report back to the City Council.
The City has solicited input from residents, businesses, and community stakeholders
on the proposed regulatory framework through a community forum held on June 9,
2022 and by accepting written comments via email and the City website.
• Email: cannabis(Dsurfcity-hb.orq
• Website: www.huntingtonbeachca.gov/cannabis
City staff is presenting the draft regulatory ordinance and zoning text amendments for
the City Council's further direction.
NTING
June 21, 2022 City Council Meeting
I
oQ
9�cFNNTY CP�F
Background - Continued
MEASURE A:
Cannabis Business Tax
• Retail tax: up to 6%
• Non-retail tax: up to 1 % 35.400 ' ;.
• Special Tax with revenues being 64.6%
restricted to Police and Homeless &
Behavioral Services
• 100% cost recovery on city expenses
through fees, approved by the City As of6/20/2022
Council via resolution.
June 7, 2022 Primary Election — HB Voters
44 T IYG
O\ `MC011/OR�lE •�
June 21, 2022 City
.a F
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Council
F�oUNTY CP��
Cannabis laws adopted by Voters and Council
City staff is recommending that the City:
❑ Place two ballot measures on the November 2022 General Election asking
voters whether the City should allow and regulate retail and non-retail cannabis
businesses; and if allowed, impose local excise taxes on such commercial
activities as General Tax.
❖ Extend to voters authority as to whether and how commercial cannabis activities are
permitted.
❖ Maintain the City Council's ability to develop policy positions while allowing timely
flexibility to respond to the ever-evolving State's laws and market condition without
necessitating the delay and expense of conducting a municipal election.
❖ Cannabis Business Tax measure will be similar to the Measure A:
➢ Up to 6% on the gross receipts of retailers and up to 1 % to non-retailers but as
➢ General Tax, with proceeds going to the General Fund for general municipal
�%TINGT
services.
June 21,n_
2022 City Council
9�cF�UUNTV CP`\�oe
Cannabis Regulations adopted by Council resolution
The City will develop an administrative regulation that specifies and
governs:
❖ Application and renewal procedure
❖ Pre-operational requirements and operational standards including
security, fire safety, and code enforcement related requirements
•'• Other administrative procedures necessary to carry out the purpose of
the regulatory ordinance and zoning code.
TINGj�
O \NcoaroeeEo��
June 21, 2022 City Council Meeting 7
cF�NNTV'CPS\
Key Features of Cannabis Regulatory Framework
**IMPORTANT: These key features of working draft are based on the Subcommittee's
recommendations and subject to change"
Cannabis Industry Types
����IPERIVIITTE PROFITED
• Retailers — Storefront dispensaries • Sales on vehicles/mobile stores, kiosk, or
(w/delivery) temporary structures
• Retailers — Non-storefront, delivery- • Sale by vending machine
only facilities
• Non-Retailers — Indoor Cultivation • Outside cultivation
• Non-Retailers — Manufacturing • microbusinesses
• Non-Retailers — Testing Labs • Cannabis events/event organizers
• Non-Retailers — Distribution
TIN�T�
p`t .xcua�oRA 2B
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_ FJune 21, 2022 City Council • i
0 2
cF��NNTY CP��Fo
Key Features of Cannabis Regulatory Framework
Permitted Cannabis Business Types in the Supply Chain
X MICROBUSINESS
A combination of these types
♦ of business at one location
----- X EVENT ORGANIZERS
Indoor Only TESTING LAB Holding an event where
lcannabis will be sold
TESTING LAB
CULTIVATOR 0
me
(3rX3[= t
MANUFACTURER
DISTRIBUTOR
RETAIL CONSUMER
Key Features of Cannabis Regulatory Framework
Number of Permits:
• Retailers up to 10 permits
• Non-retailers controlled by zoning restrictions without a cap
➢ A separate permit will be required for each type of commercial cannabis activity.
➢ Limit 1 license type per owner (e.g. 1 owner can apply for 1 retailer and 1
manufacturer permit)
➢ No more than 1 application per property, per license type
➢ A permit will be valid for 1 year from the date of issuance and expires unless
renewed annually.
A no-warehousing provision, requiring that permittee must begin operation
within 1 year after permit is granted, otherwise the license will be revoked.
➢ Non-transferable to others in 3 years but transferees must submit the same
permit application information to the City and pay applicable fees.
��NTINgj
June 21, 2022 City Council Meeting 10
cFONNTY GP\o
Key Features of Cannabis Regulatory Framework
Zones & Buffer Restrictions 1 _ I
-i
I Retail
- - Commercial Locations
• Retailers �=
r -
o Storefront dispensaries: allowed in the -
Commercial, Specific Plan Areas, &
Industrial Zone with buffer restrictions
o Non-storefront/delivery-only retailers can
locate in the Industrial Zone with buffers
o Exclude Downtown (SP5) and Sunset
Beach Specific Plan (SP13) 1` 3
f
com�r�crnem-,a3 ameron 31 .F'
-CannErClal 011lte-11 GraDeNG I —
OConnrorcal Vodtt-?s praperues (�
O Dev9retM C-6.1
--bes
i
o Exclude Coastal Overlay Zone r
gNtN AMN 283 amperlles
6W from Grade K-6 Schools t ..
,GW from Grade 6-,2 Schools
6W'from Palls N
600'from C mmorcial Day Care
600'fr=Youth Cenlers
R
June 21, 2022 City Council Meeting
12
�DUNTI t
Key Features of Cannabis Regulatory Framework
Zones & Buffer Restrictions
i
• Retailers — Continued i Retail
Commercial Locations
o Permitted in multistore front buildings
o No buffer requirement between shops `
o Established businesses will be _
grandfathered to continue operation even .
if a new sensitive receptor opens within _ -
existing buffers
o Buffer Distance:
3 M
➢ 1 ,000 ft. from high & middle schools; and _ 1
_cm,mend c ned-e3 peperoes
➢ 600 ft. from K-5 schools (inclusive of all
• SpeciAc pbn[ammeraal Generm
ppublic, private, and charter schools and � � ,eae-25p
) Specific Plan A eC Use
®O.patW Are°°-263 pNper.
➢ 600 ft. from parks, licensed commercial �°hm 3�6,i�od, T
C,—I Day Care
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daycare centers, and youth centers. ��YpNhGnt-
�� ,ranvoerFa 2d
12
June 21, 2022 City Council Meeting
n
U S
9yc��UV A.
UNTCP�Foe
Key Features of Cannabis Regulatory Framework
Zones & Buffer Restrictions
Noil
Non-Retailers '•-• IndustrialReta Locations
o Allowed in the Industrial Zone with buffer r
restrictions that are same as retailers.
➢ 1 ,000 ft. from high & middle schools; _
➢ 600 ft. from K-5 schools; and -
➢ 600 ft. from parks, licensed rt
commercial daycare centers, and -
youth centers.
June 21,
-
e'+
ca =
2022 CityCouncil Meeting 13
9
ycFDUN71 CP�\De
Key Features ofCannabis Regulatory •
Permit Application an • Selection Process:
Merit-based (RFQ/RFA) application process to identify highest quality operators and make
the permitting process efficient and streamlined.
STEP 1 2 3
PRE-APPLICATION APPLICATION SITE PLAN REVIEW
SCREENING REVIEW AND INSPECTIONS
This review is required to Applicants on the Eligibility Applicants must meet all fire,
determine if applicants List are evaluated by a set planning and building
meet minimum of criteria and meet requirements and pass all
requirements set by the additional requirements inspections before final
City. and must be above a permits/certificates of occupancy
certain score (e.g. 70- are granted. A State cannabis
80%). license and H BAN I license
will be required.
Key Features of Cannabis Regulatory Framework
Permit Application and Selection Process:
STEP 1 to screen applicants for Eligibility List:
• Complete application with applicable fees paid to the City on time
• Sworn affidavit that the proposed location meets the zoning criteria
• Proof of ownership or control of the site upon which the cannabis business is to
operate
• Proof of having at least 4 current permits or licenses in CA, one of which must
be retail if applying for retail permits
• Refundable security deposit of a fixed amount set by the Council (e.g. $250K)
• Proof of having an identified local philanthropy partner that benefits the City
• No past violations
�NTINo
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June 21, 2022 City Council Meeting 15
F9n
- s
� UNTY CPS\
Key Features of Cannabis Regulatory Framework
Permit Application and Selection Process:
STEP 2 to evaluate applications on the Eligibility List based on a set of
evaluation criteria including:
• Ownership structure
• Owner qualifications including prior successful experience
• Capitalization plan
• Business and Operation plan that may include employee training, standard operating
procedures, ordering systems, etc.
• Traffic/Circulation/Parking Plan
• Safety and Security plan for the Commercial Cannabis Facility
• Labor Peace Agreement
• Community Benefit Plan
• Local Hire/Sourcing programs
• Other criteria established by the City's Commercial Cannabis Regulations.
a�NTIN6Tp
U 2022 City Council Meeting 16
Q�
9�GF�UUNTV CP��o
Key Features of Cannabis Regulatory Framework
SECURITY MEASURE AND OPERATIONAL REQUIREMENTS
Go
100
24/7 Video Extensive No Customer City Comprehensive
security monitoring background consumption check-in personnel state and local
guards on inside & checks for allowed and age may access permitting
the outside of owners & onsite or near verification surveillance process
premises building employees premises (21+
videos at any
time
"TING
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U
June 21, 2022 City Council Meeting 17
���OOONTY CP��o
Key Features of Cannabis Regulatory Framework
FIRE SAFETY REQUIREMENTS
• HBFD inspection required prior to occupancy
requirement.
• Commercial cannabis facilities must submit plans
demonstrating compliance with CA Fire Code,
identify any hazardous processes, and fire
protection systems. E6
• Commercial cannabis facilities are subject to E6
routine fire and life safety inspections at the E6
frequency identified in the HBFD's Community Risk
Assessment.
TINBTO
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U _ June 21, 2022 City Council
.
� Q
9ycF00UNTY CP`\�oQ
Key Features of Cannabis Regulatory Framework
CODE ENFORCEMENT
• All owners/operators must remedy any expired building permits for the subject
tenant space before being in operation.
• Permittees must carry and display a copy of the issued permits for public view.
• Refrain from displaying cannabis products or graphics to be visible from the exterior.
• The City shall board any doors and windows associated with illegal cannabis
businesses.
• The City may shut off the electric or water service to businesses in violation, in
addition to criminal and administrative penalties.
((��NTINGTp
June 21, 2022 City Council Meeting 19
O\ HCOAP09Ep��
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TN CP�F
Additional Community Feedback
1. Medicinal cannabis businesses and customers:
a. Allow medicinal cannabis sales to medical patients under 21 (18+ with a
valid medical card and ID) similar to the State; and/or
b. Differentiate tax rates and apply a lower tax rate for medicinal cannabis
products than adult-use, recreational cannabis sales; and/or
c. Permit cannabis businesses to donate medical products to veterans per
S B34.
ll. Operation Hours:
➢ Extend the operation hours of storefront retailers from 6am to 10pm
following the State requirement. This will be consistent with retail deliveries.
191INGr0
June 21, 2022 City Council Meeting 21
i F9
9 '
�cFDUNTY CP\oe
Additional Community Feedback
Ill. Buffer measurements:
a. From property line to property line, instead of the occupied premises to
the property line; or
b. From premises to premises.
IV. Pre-application requirement to have at least 4 local permits or State
licenses, one of which must be retail for retailers for retail applicants:
➢ Consider the number of required permits to a lower threshold or
alternatives to measure applicants' qualification such as years of
operating successful businesses.
TINGTO
0` MtOAtRRRE
June 21, 2022 City Council Meeting 22
U S
9ycFGUNTV CP\OQ
Additional Community Feedback
V. Local residency requirement and/or preference:
Support local residents and business owners by adding the following
components:
a. Requiring that business owner(s) have been Huntington Beach
residents for at least 3 years and/or at least 51 % of their employees are
residents; and/or
b. Allocating 2 permits out of total 10 permits or allow 2 additional permits
(total of 12) to "Locals only-Equity" businesses that get processed after
the first ten and lower the entry points/less restrictive requirements.
� 1TIN6Tp
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June 21, 2022 City Council Meeting 23
� UNTY CP �
Additional Community Feedback
Vl. Location/Property Requirement:
Consider not requiring a proof of ownership or site control of a property
➢ It could lower entry barriers for small businesses and widen the
application pool
➢ It may create a situation where applicants go through vigorous
application process but cannot open a business due to lack of the
viable property in areas zoned for cannabis commercial activity
within the City limit.
��NTINGTO
June 21, 2022 City Council Meeting 24
QF acoarcAVFo hd
> Q
c00UNTY CP`F
Recommended Actions:0
A) Direct staff to prepare and return to the City Council to adopt a resolution placing a
City-sponsored ballot measure on the November 8, 2022 General Election, asking
voters if the City should allow and regulate cannabis retailers and non-retailers for
both medical and recreational to operate in areas zoned for cannabis commercial
activity within Huntington Beach; and
B) Direct staff to prepare and return to the City Council regulatory and zoning
ordinances regarding commercial cannabis activities for City Council adoption and
the City's Commercial Cannabis Regulations to be adopted by Council resolution;
and
C) Direct staff to prepare and return to the City Council to adopt a resolution placing a
City-sponsored cannabis tax measure on the November 8, 2022 General Election
ballot as a General Tax.
(( T I NGTO,y
Q` yt°RPRMR)EO A
June 21, 2022 City Council Meeting 25
_ F
9n
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FOOUNTV CPS\
�\N1 I N GTD
\�ppRPORgTF10
QUESTIONSI
AUNTY GP
Moore, Tania
From: Jonatan Cvetko <jonatan@ucba.com>
Sent: Tuesday,June 21, 2022 2:48 PM
To: supplementalcomm@surfcity-hb.org; CITY COUNCIL
Subject: Public Comments Item#24 Cannabis Regulatory Framework
Attachments: Public Comment Item#24 Cannabis Regulatory Framework.pdf
Attached are public comments for Item#24 Cannabis Regulatory Framework for tonight's City Council
Meeting. Should it be more helpful, I have included it in the email as well.
Public Comment Item#24 Cannabis Regulatory Framework
6/21/22
To: Huntington Beach City Council
From: Jonatan Cvetko Executive Director
United Cannabis Business Association RE: Item#24 Cannabis Regulatory Framework
The United Cannabis Business Association is the primire cannabis trade association representing cannabis retailers
throughout the state. UCBA advocates responsible and equitable cannabis policy both on a state and local level. With the
overwhelming majority of local jurisdictions currently maintaining prohibition against legal cannabis activities,we wish
to acknowledge the progress that the City of Huntington Beach continues to pursue in regulating locally.Although we
support the intent behind the city's progress,we regret to inform you that we cannot support the current draft of the
ordinance as written and feel strongly that the policies put forward are inequitable.
We respectfully ask that the council consider the following concerns to amend the proposed ordinance accordingly.
#1 - Lack of Community Outreach
We strongly advise the council to hold additional community meetings to educate and receive feedback on the proposed
policies the council is considering. We are aware of only one recent town hall meeting in addition to tonight's city council
meeting that the community has had an opportunity to learn and participate in a meaningful conversation with the city.
We believe this to be a responsible step to take especially in light of the recent controversy that has been reported in
nearby jurisdictions that were pursuing cannabis regulations.There is no need to rush this ordinance without ample
opportunity for the community to participate in the process.
#2 - Local Ownership Prioritization
The draft ordinance does nothing to prioritize local ownership.Many cities including most recently National City have
chosen to provide an opportunity in prioritizing local ownership. At the recent town hall meeting multiple residents raised
concerns about the policies being exclusionary to local residents for a number of reasons. We would recommend that the
city council consider offering at least a portion of the licenses to be prioritized for local ownership. Doing so will provide
an equitable opportunity for Huntington Beach's residents.
1
#3 -Outside Delivery
The allowance of outside delivery remains unclear at the moment. In the draft Commercial Cannabis Regulations it states:
"Deliveries from Cannabis Retailers located outside the City of Huntington Beach are prohibited,unless the Retailer
obtains a Huntington Beach Business License. "
However it refers to the Draft Ordinance to Amend the HEMS Chapter 5 for that license,yet the language does not seem
to provide for a Business License for these activities. We respectfully request for clarity on this matter. Allowing outside
delivery is the responsible and equitable policy that benefits residents with additional legal access opportunities and
promotes fair competition that in turn provides an additional revenue stream for the city.
#4 - Property Requirement
Requiring a property as part of the application process has continuously proven to be bad policy. Doing so promotes
landlords to offer predatory pricing and similarly only favors the applicant with the most money, not necessarily the best
applicant for the city. The requirement of property has led to numerous lawsuits in other jurisdictions, including Los
Angeles, Pasadena and others. The City of West Hollywood avoided this issue by not requiring the property and in turn
required a timeline in which the operators need to acquire a property after their selection. We respect that the city's goals
are to encourage the businesses to be operational quickly,however the city is unable to guarantee that they can process the
applications in a timely manner nor can they guarantee against lawsuits being filed against the city which may delay the
issuing of those licenses and in turn require the applicants to continue to pay for their properties waiting for a resolve.
This has been experienced in a number of cities. We strongly advise against requiring a property as part of the application
process.
#5 -$250,000 Fee
It is important to note that local jurisdictions are prohibited from profiting on the fees of an application. While we
recognize the city's intent to refund the fee to those who don't proceed,the reality is that this fee is unjust and inequitable
to applicants. The fee should be set to reflect the actual cost of administering the application.
#6 - License Requirement
We strongly believe that the requirement of having 4 licenses(one of which needs to be retail)to apply for a retail license
is wholly unfair and out right inequitable. The legal industry is less than four years old and over 70%of local jurisdictions
maintain a ban. Fair and equal opportunities do not exist for the overwhelming majority of interested applicants to achieve
this standard. For the few who do,they too would never have had the opportunity to start much less grow should these
requirements had been in place for them when they acquired their first license.
You would never make a similar requirement of another similar type of business such as other retailers or restaurants. It is
simply unamerican to prohibit your own residents and the vast majority of interested applicants by implementing this
policy.
This policy is punitive and tonedeaf to the reality of the industry. It is purely a benefit to large cannabis businesses the
majority of which are not owned by those which have been the most prosecuted by the war against cannabis.
#7 - Labor Requirements
The state has already established a Labor Peace Requirement at the amount of 20 employees or more. We believe the state
has set the appropriate and responsible standard to promote strong and positive
employee focused protections from big business and see no reason the local jurisdiction should modify that standard,
specifically reducing it to a level of 2 employees.
2
A council member in Anaheim raised concerns about doing similarly when the special interest behind that effort
attempted to introduce the same. Summarized,the council member stated that they did not believe it was the local
government's responsibility to make such policies for private businesses, and questioned the constitutionality of doing so.
Labor laws such as these serve great value in protecting employees from large businesses. A policy such as this once
again proves to be inequitable and only promotes big business. We strongly advise that the LPA reflects the state's
requirements.
There are a number of other issues with the current draft of the ordinances,most concerning is the recognition of how
many of these policies were promoted in the outsider initiative in which the council had tried to fight against by pursuing
a special tax measure in the recent election. It raises concern as to why the ordinance seems to benefit the financial
backers of the initiative attempt. While we support the intent of the city's goal to regulate locally,unless the above items
are addressed and amended we cannot support the ordinance as written and will continue to work with the community to
ensure equitable policies that benefit the community as a whole prevail.
We remain open and available to offer our support in this process, Thank you for the consideration,
Jonatan Cvetko
Executive Director
United Cannabis Business Association
U C B A
UNITED CANNABIS BUSINESS ASSOCIATION
3
UCBA
UNITED CANNABIS BUSINESS ASSOCIATION
6/21/22
To: Huntington Beach City Council
From: Jonatan Cvetko
Executive Director
United Cannabis Business Association
RE: Item#24 Cannabis Regulatory Framework
The United Cannabis Business Association is the primire cannabis trade association representing
cannabis retailers throughout the state. UCBA advocates responsible and equitable cannabis policy both on a
state and local level. With the overwhelming majority of local jurisdictions currently maintaining prohibition
against legal cannabis activities, we wish to acknowledge the progress that the City of Huntington Beach
continues to pursue in regulating locally. Although we support the intent behind the city's progress, we regret
to inform you that we cannot support the current draft of the ordinance as written and feel strongly that the
policies put forward are inequitable.
We respectfully ask that the council consider the following concerns to amend the proposed ordinance
accordingly.
#1 - Lack of Community Outreach
We strongly advise the council to hold additional community meetings to educate and receive feedback
on the proposed policies the council is considering. We are aware of only one recent town hall meeting in
addition to tonight's city council meeting that the community has had an opportunity to learn and participate in a
meaningful conversation with the city. We believe this to be a responsible step to take especially in light of the
recent controversy that has been reported in nearby jurisdictions that were pursuing cannabis regulations.
There is no need to rush this ordinance without ample opportunity for the community to participate in the
process.
#2 -Local Ownership Prioritization
The draft ordinance does nothing to prioritize local ownership. Many cities including most recently
National City have chosen to provide an opportunity in prioritizing local ownership. At the recent town hall
meeting multiple residents raised concerns about the policies being exclusionary to local residents for a
number of reasons. We would recommend that the city council consider offering at least a portion of the
licenses to be prioritized for local ownership. Doing so will provide an equitable opportunity for Huntington
Beach's residents.
#3 -Outside Delivery
The allowance of outside delivery remains unclear at the moment. In the draft Commercial Cannabis
Regulations it states:
"Deliveries from Cannabis Retailers located outside the City of Huntington Beach are prohibited,
unless the Retailer obtains a Huntington Beach Business License. "
However it refers to the Draft Ordinance to Amend the HBMS Chapter 5 for that license, yet the language does
not seem to provide for a Business License for these activities. We respectfully request for clarity on this
matter. Allowing outside delivery is the responsible and equitable policy that benefits residents with additional
legal access opportunities and promotes fair competition that in turn provides an additional revenue stream for
the city.
#4 - Property Requirement
Requiring a property as part of the application process has continuously proven to be bad policy. Doing
so promotes landlords to offer predatory pricing and similarly only favors the applicant with the most money,
not necessarily the best applicant for the city. The requirement of property has led to numerous lawsuits in
other jurisdictions, including Los Angeles, Pasadena and others. The City of West Hollywood avoided this
issue by not requiring the property and in turn required a timeline in which the operators need to acquire a
property after their selection. We respect that the city's goals are to encourage the businesses to be
operational quickly, however the city is unable to guarantee that they can process the applications in a timely
manner nor can they guarantee against lawsuits being filed against the city which may delay the issuing of
those licenses and in turn require the applicants to continue to pay for their properties waiting for a resolve.
This has been experienced in a number of cities. We strongly advise against requiring a property as part of the
application process.
#5 -$260,000 Fee
It is important to note that local jurisdictions are prohibited from profiting on the fees of an application.
While we recognize the city's intent to refund the fee to those who don't proceed, the reality is that this fee is
unjust and inequitable to applicants. The fee should be set to reflect the actual cost of administering the
application.
#6 -License Reauirement
We strongly believe that the requirement of having 4 licenses (one of which needs to be retail)to apply
for a retail license is wholly unfair and out right inequitable. The legal industry is less than four years old and
over 70% of local jurisdictions maintain a ban. Fair and equal opportunities do not exist for the overwhelming
majority of interested applicants to achieve this standard. For the few who do, they too would never have had
the opportunity to start much less grow should these requirements had been in place for them when they
acquired their first license.
You would never make a similar requirement of another similar type of business such as other retailers
or restaurants. It is simply unamerican to prohibit your own residents and the vast majority of interested
applicants by implementing this policy.
This policy is punitive and tonedeaf to the reality of the industry. It is purely a benefit to large cannabis
businesses the majority of which are not owned by those which have been the most prosecuted by the war
against cannabis.
#7 -Labor Requirements
The state has already established a Labor Peace Requirement at the amount of 20 employees or more.
We believe the state has set the appropriate and responsible standard to promote strong and positive
employee focused protections from big business and see no reason the local jurisdiction should modify that
standard, specifically reducing it to a level of 2 employees.
A council member in Anaheim raised concerns about doing similarly when the special interest behind
that effort attempted to introduce the same. Summarized, the council member stated that they did not believe
it was the local government's responsibility to make such policies for private businesses, and questioned the
constitutionality of doing so.
Labor laws such as these serve great value in protecting employees from large businesses. A policy
such as this once again proves to be inequitable and only promotes big business. We strongly advise that the
LPA reflects the state's requirements.
There are a number of other issues with the current draft of the ordinances, most concerning is the
recognition of how many of these policies were promoted in the outsider initiative in which the council had tried
to fight against by pursuing a special tax measure in the recent election. It raises concern as to why the
ordinance seems to benefit the financial backers of the initiative attempt. While we support the intent of the
city's goal to regulate locally, unless the above items are addressed and amended we cannot support the
ordinance as written and will continue to work with the community to ensure equitable policies that benefit the
community as a whole prevail.
We remain open and available to offer our support in this process,
Thank you for the consideration,
Jonatan Cvetko
Executive Director
United Cannabis Business Association
Moore, Tania
From: Betty RIBITOWITZ <bettyribitowitz@gmail.com>
Sent: Tuesday,June 21, 2022 3:06 PM
To: supplementalcomm@surfcity-hb.org; CITY COUNCIL
Subject: cannabis retail
Good Afternoon:
I am hoping this email is received in time for the City Council this evening.
I have been a resident of Huntington Beach for many years and have seen many changes. Lately, I have been
interested in the Council decision about whether to allow legal cannabis dispensaries in our great city. This is
an issue where many are in favor of it but tend to be shy about voicing those opinions.
Let me preface this by saying I am not a user of cannabis products but I would definitely become one if I
suffered from an ailment in which cannabis has been proven to help. I am looking at this issue from a purely
economic and civic issue and I think HB should allow these legal businesses for the following reasons:
The tax revenue is estimated at a minimum of$1,000,000 per year. How many Peace Officers and/or Fire
Fighters could that fund? Probably at least 2, hopefully more.
Surf City USA is one of the most visited beaches in California and the Country. VISITORS ARE COMING
and will continue to come. We must pay to clean up,patrol, enforce laws and keep this city as a
destination/resort town so why not generate additional funds through these legitimate businesses?
I think we all need to brace ourselves for a recession so I would hate for the City Council to look back and say,
"we should have alllowed these businesses because that revenue would have certainly helped, especially in
times like theses."
I urge the city council to allow these small businesses to town. It is a "win-win", it will encourage people to
purchase these products the legal way, it is clearly a great tax revenue source, and this way at least the City
Council has a say in how this is implemented.
Thanks for listening,
Betty
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Switzer, Donna
From: Fikes, Cathy
Sent: Thursday, June 9, 2022 10:30 AM
To: Agenda Alerts
Subject: FW: my initial thoughts on the draft cannabis regulatory framework
-----Original Message-----
From: Mark Bixby<mark@bixby.org>
Sent: Wednesday,June 8, 2022 4:55 PM
To: Cannabis<cannabis@surfcity-hb.org>; CITY COUNCIL<city.council@surfcity-hb.org>
Subject: my initial thoughts on the draft cannabis regulatory framework
Hi city council and staff,
Here are my current thoughts about the draft cannabis legalization ordinances at
https://www.huntingtonbeachca.gov/residents/cannabis/.
Legalize via Ordinance or Ballot Measure?
While it remains to be seen whether the Measure A cannabis tax measure reaches the two-thirds super-majority vote
required to take effect to levy a tax,yesterday's primary election vote demonstrated strong majority support for
cannabis among those who voted.We do not need to hold another ballot measure on the question of legalization.
The will of the people is clear, and I support legalization by city council adoption of the necessary ordinances to retain
city council flexibility if amendments are necessary in the future to fine-tune the regulatory framework.
Inadvertent Regulation of CBD via Sloppy Draft Text
In HBMC 5.130.040, "Cannabis" is first defined to exclude industrial hemp,then right below it"Cannabis Business" is
defined to include hemp. Non-psychoactive CBD is most commonly derived from hemp, and so this wording forces all
CBD-only sellers(i.e., every grocery store and
drugstore) into cannabis licensing,which would be absurd. No part of cannabis legalization should impose regulatory
bureaucracy on the sale of CBD.
Non-local Delivery Inconsistency via Sloppy Draft Text
HBMC 5.130 considers all forms of delivery to be a Cannabis Business subject to the full local licensing process, but the
ZTA carves out delivery from non-local retailers and says that only a generic business license is required. State license
types are enumerated, but not explicitly required.The ZTA needs to explicitly declare that a state license is required for
non-local delivery operators.
I do want to see non-local delivery legalized to provide a competitive price check on local retail if the city is going to limit
local retail to only the big operators.And because there is no fixed physical presence and none of the potential
associated negative impacts from that with non-local delivery, it should be a lower bar for approval.
Non-local delivery should only require a standard business license that will be granted if the operator holds a valid state
license for delivery.
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Philanthropy Partner Requirement is Too Vague
HBMC 5.130.050(C)(4)(g) requires applicants to show proof of a "local philanthropy partner" that benefits the city.This
is too vague and could be abused in the absence of further specificity. I propose that philanthropy partners should be
limited to bona fide 501(c)(3)organizations.
Four Licenses is an Anti-Competitive Eligibility Threshold
I strongly oppose the HBMC 5.130.050(C)(4)(d) requirement for a cannabis permit applicant to already hold at least 4
current city permits or state licenses.This creates an un-level playing field that favors the biggest operators, and it has
been my experience as a retail consumer that the biggest operators may also have the highest prices.This will harm
consumers.
It is my understanding that the intent of this provision is two-fold, both to reduce the number of initial applicants so that
the city learning curve is not overwhelmed, and to limit the initial permits to those operators with proven track records
and staying power. I support both of those goals, and I do NOT support allowing permit applicants with zero prior
experience in the legal market.
Fortunately,the city could still accomplish these goals via a different approach.
I propose that the 4-permit requirement be replaced by a requirement to have continuously held and operated under
the same permits/licenses as being sought from HB for a period of 2-3 years.This will still block first-timers with no track
record but will allow a quality operator with a single permit and years of experience to grow their business by expanding
to HB,which is the kind of business that we should be pursuing as part of economic development policy.This should also
be easy as a quick screen early in the application review process before delving into the more time-consuming aspects of
application scoring.
With Great Power Comes Great Responsibility
The draft regulatory framework invests the city manager with exclusive decision-making authority driven by very
subjective and currently ill-defined criteria, and this authority is wielded out of public view and has huge financial
consequences for an applicant.This creates a perfect environment for a bad-faith applicant to attempt to subvert the
process via bribery or other methods of undue influence.
This is not a hypothetical scenario.The Los Angeles Times regularly reports on criminal bribery cases where cannabis
license applicants have paid large sums of money or other favors to staff and/or elected officials to gain approvals.
I propose the following changes to bring more sunshine and oversight into the process:
- The initial regulations and scoring criteria plus any amendments by the city manager must be publicly approved by a
vote of the city council.This will likely be infrequent.
- The city council should have the ability like they do for other low-level permits to appeal city manager cannabis
actions within 10 days up to a public de-novo city council hearing and vote.This will only happen as much as
councilmembers cause it to happen.
I look forward to further refinement of the draft cannabis regulatory framework.
Mark Bixby
mark@bixby.org
714-401-4526 cell
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