Oceanside advances cannabis licensing program
Council votes 3-2 to drop location requirement from application, while storefront licensing is expected to finalize in August and possibly fast-track current businesses
OCEANSIDE — The city is still working through its cannabis storefront retail licensing program, but it is expected to be finalized on Aug. 6.
The council, though, did approve removing the location requirement from the initial application and scoring process and including a collective bargaining agreement in a 3-2 vote on Wednesday, with Mayor Esther Sanchez and Councilman Peter Weiss opposed.
Regardless, the city is pursuing to allow up to four retail dispensaries a business license to operate storefronts. Currently, the city has issued 20 cannabis local licenses for other purposes, with three currently active between two companies — MedLeaf and Left Coast.
The council debate centered on several elements with the most pressing being access to cannabis by kids and storefronts near schools and parks. Sanchez pushed for retail shops to be at least one-half mile from schools or parks, while another proposal show 1,000-foot buffer zones. The staff recommendation put a hard prohibition of no stores within 349 feet of residential use, up to 549 feet of an elementary or middle school, or 999 feet from any high school.
“We need these protections for the youth,” Sanchez said. “People buy for kids. My big concern is edibles because that’s not something you can easily get on the black market. We would be creating a business, again in the community, that would set those communities back. The youth don’t want it near the schools.”
As for the timeline, Dane Thompson, an associate planner, staff could open the application window in fall, licenses may be issued in winter, conditional use permits reviewed by the City Council in fall 2026, and 2027-28 is the deadline for businesses to become operational. Additionally, operators would not be allowed to sell their licenses for four years, he said.
The city has been grappling with the issue since 2023, although voters approved Measure M in 2020 to allow the city to impose taxes on cannabis businesses. On April 19, 2023, the council directed staff to develop a program for two licenses for storefronts, which has evolved to four.
During Wednesday’s meeting, the council also approved to direct staff to look at including points in the application scoring process for applicants who commit to implementing a collective bargaining agreement among employees.
As for the location requirement, those are addressed within the city’s conditional use permit process. Buffer zones are established, although the council amend those distances around areas such as schools.
A representative for the United Food and Commercial Workers Local 135 urged the council to approve a collective bargaining agreement. Councilman Eric Joyce said the city should require the two current operators to have a labor peace agreement, which would align with the CBA to allow employees to unionize without interference from the company.
However, City Attorney Steven Burke Jr. cautioned Joyce and council regarding labor or union requirements. Burke said a federal court (U.S. District Court for the District of Oregon) ruled Oregon’s Measure 119 unconstitutional on May 20 and granted a permanent injunction.
The measure requires dispensaries to enter into labor peace agreements or remain neutral toward unionization. The court ruled the measure violated the Supremacy Clause, was preempted by the National Labor Relations Act and violated the First Amendment suppressing employer speech by forcing them to remain neutral.
Burke said California law also requires an LPA, but it could be in jeopardy with the Oregon ruling, so he urged a careful approach for the council.
Staff also went over the fee structure, which includes $12,100.96 for the applications, plus nearly $20,000 in other fees.
The council also struggled with where retail stores should be located and what distance they should be from schools, kids and residences. Councilman Jimmy Figueroa said after-school programs and commercial areas popular with kids should not be considered.
Joyce said the Coastal Zone should be considered as there is a “big” stretch along outside the 1,000-foot buffer proposal. However, he said he was not comfortable with creating “clusters” where several stores would be located in close proximity to one another.
Additionally, the council and staff also discussed a pathway to “fast-track” the two current operators in the city since they’ve been operating for the past five years. Those two businesses will not have to go through the full city process, as of now, would have to submit an application and fulfill the completeness screening, according to City Planner Serge Medina.
“For five years we’ve been in business,” said Karen Hannawi, co-owner of MedLeaf said. “I have one request — clearly define specific steps and timelines starting as soon as possible for the two existing licenses to move to CUP (conditional use permit) and open up the license for retail store location by 2026, not 2027 or 2028. This moment has been almost three years in the making.”
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