(b) Notwithstanding any provision in this Article 33, starting January 1, 2018, a person may not file and the Department of Public Health may not accept an application for a medical cannabis dispensary permit.
(c) Notwithstanding any provision in this Article 33, starting April 1, 2018, a medical cannabis dispensary is not authorized by this Article 33 to engage in the cultivation of cannabis.
(d) Notwithstanding any provision in this Article 33, starting on the effective date of the ordinance in Board File Number 171042 establishing Article 16 of the Police Code, a medical cannabis dispensary that meets the eligibility criteria set forth in subsection (e) of this Section 3322 may Sell Adult Use Cannabis and Cannabis Products for a period of 120 days, provided the medical cannabis dispensary:
(1) Applies for and receives a State Cannabis License authorizing the retail Sale of Adult Use Cannabis;
(2) Receives a determination from the Planning Department that the Sale of Adult Cannabis on the Premises is in compliance with the Planning Code;
(3) Complies with all of the requirements and prohibitions imposed on Cannabis Retailers under Article 16 of the Police Code and its implementing rules and regulations, any violation of which shall be treated as a violation of this Article 33, subject to the penalties set forth in Sections 3314 and 3315;
(4) Complies with subsection (c) of Section 1605 of the Police Code;
(5) Submits to the Director a “Good Neighbor Policy,” as described in subsection (b)(19) of Section 1609 of the Police Code, and a “Security Plan,” as defined in Section 1602 of the Police Code, along with written verification from the Office of Cannabis that the Director of the Office of Cannabis, or the Director’s designee, has determined that the policy and plan are adequate to enhance public safety and neighborhood needs;
(6) For medical cannabis dispensaries that have more than 10 employees, demonstrates to the satisfaction of the Director that within 120 days of the effective date of the ordinance in Board File Number 171042 establishing Article 16 of the Police Code, at least 30% of all Business Work Hours are performed by workers who meet at least three of the criteria set forth in subsection (b)(4) of Section 1604 of the Police Code; and
(7) Submits to the Director of the Office of Cannabis a written, actionable “Equity Plan” describing the concrete steps the medical cannabis dispensary will take to encourage and support the establishment and growth of Equity Operators, as defined in Section 1604 of the Police Code; provide employment opportunities to persons that have been disproportionately impacted by the criminalization of cannabis; and otherwise further the City’s equity goals. A medical cannabis dispensary with multiple locations must submit a separate and distinct Equity Plan for each location at which it operates.
(e)* The authorization to Sell Adult Use Cannabis and Cannabis Products set forth in subsection (d) of this Section 3322 applies only to medical cannabis dispensaries that satisfy any of the following criteria:
(1) The medical cannabis dispensary received a valid permit under this Article 33 prior to January 5, 2018;
(2) The medical cannabis dispensary received a valid permit under this Article 33 prior to July 1, 2019, and submitted an application for such a permit before July 20, 2017; or
(3) The medical cannabis dispensary received a valid permit under this Article 33 prior to December 31, 2019, and demonstrates to the satisfaction of the Director that it operated in compliance with local law and the Compassionate Use Act of 1996, and was forced to discontinue operations as a result of federal prosecution or threat of federal prosecution.
(f) The Director may extend the authorization to Sell Adult Use Cannabis for additional 120-day periods beyond the 120-day period set forth in subsection (d) of this Section 3322 upon a finding that:
(1) The Office of Cannabis has not had sufficient time to review and process applications for Cannabis Business Permits under Article 16 of the Police Code; and
(2) The medical cannabis dispensary has demonstrated good faith compliance with its Equity Plan to the satisfaction of the Director of the Office of Cannabis.
The Director’s authority under this subsection (e)1
to extend 120-day periods for authorization to sell Adult Use Cannabis may be exercised only at intervals of approximately 120 days, as to each distinct 120-day period. Thus, for example, the Director may not simultaneously authorize two consecutive 120-day extensions for the same medical cannabis dispensary.
(g) For purposes of Section 26050.1 of the California Business and Professions Code, a valid medical cannabis dispensary permit shall serve as a valid license, permit, or other authorization to engage in the retail sale of medicinal cannabis, medicinal cannabis products, adult use cannabis, and adult use cannabis products at the permitted location, but shall not serve as a valid license, permit, or other authorization to engage in the commercial cultivation of cannabis of any kind.
(h) Notwithstanding any provision in this Article 33, a permittee that holds a valid State Cannabis License authorizing the retail Sale of Medicinal Cannabis may operate at a profit, and may change its corporate form from a collective or cooperative to any other corporate form, provided that it provides notice to the Director of such change, as set forth in subsection (b)(5) of Section 3311.
CODIFICATION NOTE
*Editor’s Note:
As stated in Section 3 of Ord. 302-18, “to the maximum extent permitted by law, the amendments made to Section 3322(e) of the Health Code under the ordinance in Board File No. 180912 shall be retroactive to December 4, 2018.”
As stated in Section 3 of Ord. 302-18, “to the maximum extent permitted by law, the amendments made to Section 3322(e) of the Health Code under the ordinance in Board File No. 180912 shall be retroactive to December 4, 2018.”
This Article 33 shall expire by operation of law on December 31, 2021. All permits authorizing the operation of a Medical Cannabis Dispensary issued under this Article 33 shall be rendered invalid after December 31, 2018, except for those permits issued under this Article 33 where the permit holder has applied for a Police Code Article 16 permit, which shall be rendered invalid on December 31, 2021. Upon expiration of the Article, the City Attorney shall cause it to be removed from the Health Code.