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(a) Cannabis Business Registration. The Office of Cannabis shall initiate a Cannabis Business Registration Period in order to collect information from Persons wishing to apply for Cannabis Business Permits. During the Cannabis Business Registration Period, such Persons shall have the opportunity to register with the Office of Cannabis, and to provide such information as may be required by the Director, including but not limited to:
(1) Information regarding the type(s) of Cannabis Business Permit(s) and State Cannabis License(s) for which they intend to apply in 2018;
(2) Information about the location of the proposed Cannabis Business, including but not limited to proof that the property owner has authorized the use of the property as a Cannabis Business;
(3) Copies of all applicable licenses, permits, certifications, and registrations issued by the City or the State and held by the Owner of the proposed business, including but not limited to Hazardous materials registrations, site permits, Business Registration Certificates, and/or Seller’s Permits; and
(4) Such other information, documents, and/or attestations as the Director may deem necessary or appropriate for registration.
(b) Registration a Condition of Eligibility for Temporary Cannabis Business Permit. Persons that do not register with the Office of Cannabis during the Cannabis Business Registration Period shall not be eligible to apply for or receive a Temporary Cannabis Business Permit, as set forth in subsection (d) of this Section 1605.
(c) Medical Cannabis Dispensaries.
(1) To ensure the continued availability of Medicinal Cannabis for individuals who qualify under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis, a Medical Cannabis Dispensary that holds a valid permit to operate from the Department of Public Health as of the effective date of this Article 16 may continue to operate as a Medical Cannabis Dispensary at the location identified in its Medical Cannabis Dispensary permit and consistent with the terms of Article 33 of the Health Code, provided that:
(A) The Owner of the Medical Cannabis Dispensary provides the Office of Cannabis with information identifying the type(s) of Cannabis Business Permits and State Cannabis Licenses for which the Owner intends to apply in 2018, and such other information as may be required by the Director;
(B) The Owner of the Medical Cannabis Dispensary applies for and obtains a temporary or permanent State Cannabis License;
(C) The Owner of the Medical Cannabis Dispensary applies for a Cannabis Business Permit within 30 days of the date that the Office of Cannabis makes such applications available; and
(D) The Owner of a Medical Cannabis Dispensary agrees to surrender its Medical Cannabis Dispensary permit to the Department of Public Health upon being awarded a Cannabis Business Permit.
(2) A Medical Cannabis Dispensary’s permit to operate, as issued under Article 33 of the Health Code, shall expire as a matter of law when it is surrendered to the Department of Public Health, as set forth in subsection (c)(1)(D) of this Section 1605, or upon the sunset of Article 33, whichever occurs sooner.
(d) Temporary Cannabis Business Permits. The Office of Cannabis shall make applications available for Temporary Cannabis Business Permits for all permit categories other than Storefront Cannabis Retailers. In order to be eligible for a Temporary Cannabis Business Permit, an Applicant must do all of the following:
(1) Submit an application, on a form to be prescribed by the Director;
(2) Demonstrate compliance with the Cannabis Business Registration process set forth in subsection (a) of this Section 1605;
(3) Demonstrate that as of September 26, 2017, the Applicant was engaging in Commercial Cannabis Activities relating to Medicinal Cannabis in the City and has continued to engage in such activities without interruption;
(4) Demonstrate that the proposed Cannabis Business complies with the Planning Code;
(5) Authorize and submit to the inspection of the proposed Premises by the Office of Cannabis, the Fire Department, the Department of Building Inspection, the Department of Public Health, and such other City departments, agencies, and offices as may be necessary to confirm that the proposed Cannabis Business will operate in compliance with law and with the applicable interim health and safety standards;
(6) Acknowledge the obligation to pay any non-refundable application and/or inspection fees that the Office of Cannabis and/or the Referring Departments may impose in connection with the application for a Temporary Cannabis Business Permit; and
(7) Demonstrate that the proposed Cannabis Business complies with applicable interim health and safety standards developed by the Director in consultation with the Department of Building Inspection, the Fire Department, the Police Department, and the Department of Public Health. The interim health and safety standards shall be sufficient to protect the health and safety of employees, neighbors, and Customers of the proposed Cannabis Business, and to prohibit unlawful access to Cannabis and Cannabis Products by underage individuals.
(e) Review, award, and denial of Temporary Cannabis Business Permits. The Director shall ensure that the Premises are inspected by all relevant City Departments, and shall review all documentation submitted by the Applicant for the Temporary Cannabis Business Permit in support of the application. If the application is incomplete, the Director shall advise the Applicant of the deficiencies, and give the Applicant 30 days in which to correct them. If the application is complete, the Director shall determine whether the Applicant has demonstrated compliance with subsection (d) of this Section 1605, and any implementing regulations. After determining whether the Applicant has met these standards, the Director shall either award, award with conditions, or deny the Temporary Cannabis Business Permit.
(f) Appeal of Denial of Application for Temporary Cannabis Business Permit. The decision of the Director to award, award with conditions, or deny a Temporary Cannabis Business Permit may be appealed to the Board of Appeals in the manner prescribed in Article 1 of the San Francisco Business and Tax Regulations Code.
(g) Activities Authorized by Temporary Cannabis Business Permit. A Temporary Cannabis Business Permit issued under this Section 1605 shall authorize the Permittee to engage in all of the activities authorized by a Cannabis Business Permit of the same category, as set forth in Sections 1623 - 1629 of this Article 16.
(h) Duration. A Temporary Cannabis Business Permit issued under this Section 1605 shall be valid for a period of 120 days and may be extended for additional 120-day periods at the discretion of the Director. Notwithstanding the prior sentence, the Director shall not issue a new temporary permit after January 1, 2019, and shall not extend the term of a Temporary Cannabis Business Permit issued to an applicant for a Cannabis Business Permit under this Article 16 past December 31, 2024.
(i) Temporary Cannabis Business Permit does not guarantee rights regarding a permanent permit. A Temporary Cannabis Business Permit does not obligate the Director to issue a permanent permit pursuant to Section 1615 of this Article 16, or create a vested right in the holder to either an extension of the temporary permit or to the granting of a subsequent permanent permit.
(j) Duty to apply for permanent permit. A Person that is awarded a Temporary Cannabis Business Permit under this Section 1605 must apply for a Cannabis Business Permit, as set forth in Section 1606, within 30 days of when the Office of Cannabis makes applications for such permits available. The Director shall not accept applications for Temporary Cannabis Business Permits after making applications for Cannabis Business Permits available.
(k) Registration of Pre-Existing Non-Conforming Operators. A Pre-Existing Non-Conforming Operator shall be eligible to receive technical assistance and apply for a Cannabis Business Permit, as set forth in Section 1606 of this Article 16, provided it registers with the Office of Cannabis during the Cannabis Business Registration Period and provides the following information and documentation:
(1) Information regarding the type(s) of Commercial Cannabis Activities that the operator conducts;
(2) Information regarding the type(s) of Cannabis Business Permit(s) and State Cannabis License(s) for which the operator intends to apply in 2018;
(3) Demonstration that as of September 26, 2017, the operator was engaging in Commercial Cannabis Activities relating to Medicinal Cannabis in the City;
(4) Copies of all applicable licenses, permits, certifications, and registrations issued by the City or the State and held by the Owner of the proposed business, including but not limited to Hazardous materials registrations, site permits, Business Registration Certificates, and/or Seller’s Permits;
(5) An affidavit or declaration made under penalty of perjury by an Owner certifying that the Pre-Existing Non-Conforming Operator will not engage in Commercial Cannabis Activities in a location where such activities are not authorized by or consistent with the Planning Code; and
(6) Such other information, documents, and/or attestations as the Director may deem necessary or appropriate for registration.
(Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 279-18, File No. 181041, App. 11/20/2018, Eff. 12/21/2018; Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 274-19, File No. 190842, App. 11/27/2019, Eff. 12/28/2019; Ord. 198-21, File No. 210865, App. 11/5/2021, Eff. 12/6/2021; Ord. 222-22, File No. 221002, App. 11/4/2022, Eff. 12/5/2022)
(a) Except as provided in subsection (b) of this Section 1606, the Director shall issue Cannabis Business Permits only to Applicants that meet one or more of the following criteria:
(1) Qualify as an Equity Applicant or an Equity Incubator;
(2) Possess a valid permit to operate a Medical Cannabis Dispensary issued pursuant to Article 33 of the Health Code prior to the effective date of the ordinance, in Board File Number 171042, establishing this Article 16;
(3) Were issued a Temporary Cannabis Business Permit under Section 1605 of this Article 16;
(4) Have demonstrated to the Director’s satisfaction that the Applicant operated in compliance with the Compassionate Use Act of 1996, and was forced to discontinue operations as a result of federal prosecution or threat of federal prosecution;
(5) Applied for a Medical Cannabis Dispensary Permit that required referral to and approval by the Planning Commission, and received approval from the Planning Commission prior to the effective date of the ordinance, in Board File Number 171042, establishing this Article 16;
(6) Registered with the Office of Cannabis as a Pre-Existing Non-Conforming Operator, as set forth in subsection (k) of Section 1605 of this Article 16; or
(7) Possessed a valid permit to operate a Medical Cannabis Dispensary, issued under Article 33 of the Health Code prior to January 6, 2018, or a valid Temporary Cannabis Business Permit, issued under Section 1605(d), but were forced to discontinue operations due to the termination of a lease, provided that:
(A) The lease terminated before December 31, 2018;
(B) The lease termination was not due to the lessee’s breach of the lease;
(C) The Owner of the proposed Cannabis Business is identical to the Owner of the former Medical Cannabis Dispensary; and
(D) The Permittee seeks an application for a Cannabis Business Permit no later than July 1, 2019.
(b) The Director may award a Cannabis Business Permit to an Applicant that does not meet the criteria set forth in subsection (a) of this Section 1606 if the total number of Cannabis Business Permits awarded to Equity Applicants in the permit category sought by the Applicant has reached 50% of the total number of Cannabis Business Permits awarded in that permit category.
(c) The Office of Cannabis shall review and process applications for Cannabis Business Permits in an order that reflects the Applicant’s priority category:
(1) First priority: applications from Equity Applicants that, independently or in combination with one or more other Equity Applicants, hold a 100% ownership interest in the Cannabis Business for which they have applied for a Cannabis Business Permit;
(2) Second priority: applications from current Temporary Cannabis Business Permitees1
that demonstrate to the satisfaction of the Director that they meet all of the following criteria:
(A) Hold Type 6, Type 7, or Type N licenses, within the meaning of 17 C.C.R. 40118, as may be amended from time to time, and current approval from the California Department of Public Health to operate as a “shared-use facility,” as defined in 17 C.C.R. 40190, as may be amended from time to time;
(B) Have current agreements allowing for use of a shared-use facility owned or leased by the Permittee by one or more current holders of Type S licenses, as defined in 17 C.C.R. 40190, as may be amended from time to time, that qualify as Equity Applicants under Section 1604(b) of this Article 16, and that are not owned or controlled by any Owner of the Permittee that owns or leases the shared-use facility; and
(C) Commit in the agreements described in subsection (c)(2)(B), above, to use of their shared-use facility by one or more Equity Applicants to a degree that the Director finds to be reasonable, taking into account the available space within the facility, the current use of the facility space by the Permitee’s 1
business, and the demand for shared-use facilities among Equity Applicants.
(3) Third priority: all Equity Applicants that do not meet the criteria for first or second priority processing;
(4) Fourth priority: applications from Equity Incubators;
(5) Fifth priority: applications from Applicants that meet the requirements of Section 1606(a)(4) or 1606(a)(6).
(7) Seventh priority: applications that demonstrate a commitment on the part of the Applicant to provide benefits to the community in which the Cannabis Business is located, including but not limited to workforce opportunities and community benefits contributions; and
(8) Eighth priority: all other applications.
(d) Each Owner Treated as Applicant. Unless this Article 16 specifically provides otherwise, each Owner of a Cannabis Business or proposed Cannabis Business shall be subject to the same obligations that this Article 16 imposes on an Applicant. Such obligations include, but are not limited to, the obligation to provide to the Director the information that this Article 16, and any regulations promulgated thereunder, require from an Applicant.
(e) As of the effective date of the ordinance in Board File No. 200144 enacting this subsection (e), the Director shall decline to accept for processing any new applications for Cannabis Business Permits under this Article 16 in the following categories: Cannabis Retailer, Storefront Cannabis Retailer, Delivery-Only Cannabis Retailer, Medicinal Cannabis Retailer, and Cannabis Microbusiness (to the extent relating to retail activity). No later than June 30, 2027, the Controller shall submit to the Board of Supervisors a report that analyzes various impacts of the moratorium on new applications for retail-related Cannabis Business Permits, including its financial impacts on the City and the City’s cannabis industry, operational impacts on the Office of Cannabis, and impacts on City neighborhoods.
(Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 301-19, File No. 191174, App. 12/20/2019, Eff. 1/20/2020; Ord. 176-21, File No. 210421, App. 10/29/2021, Eff. 11/29/2021; Ord. 106-23, File No. 200144, App. 6/23/2023, Eff. 7/24/2023)
CODIFICATION NOTE
1. So in Ord. 176-21.
(a) For the purpose of regulating the Commercial Cultivation, Manufacture, Testing, Distribution, Sale, and Delivery of Cannabis, the Director may issue the following permits:
(1) Cannabis Cultivation Facility;
(2) Cannabis Manufacturing Facility;
(3) Cannabis Testing Facility;
(4) Cannabis Distributor;
(5) Cannabis Microbusiness;
(6) Medicinal Cannabis Retailer;
(7) Cannabis Retailer;
(8) Delivery-Only Cannabis Retailer; and
(9) Cannabis Nursery.
(a) Permits Nontransferable. No permit issued under this Article 16 shall be transferable under any circumstances, including but not limited to the sale of the Cannabis Business.
(b) Permits Portable. A Cannabis Business Permittee that closes its Cannabis Business may retain its Cannabis Business Permit for up to 18 months from the date of closure, and may conduct Commercial Cannabis Activities under that permit at a different Premises provided:
(1) There is no change in ownership;
(2) The Referring Departments complete all necessary review and inspections of the new Premises, and report their determinations to the Office of Cannabis;
(3) The Permittee demonstrates that the new Premises complies with the requirements of this Article 16 and the Planning Code; and
(4) The Director finds that there are no grounds for denial of a Cannabis Business Permit, as set forth in subsections (d)-(e) of Section 1615 of this Article 16.
(c) Ownership; Changes in Ownership; Changes in Form or Structure.
(1) Any change affecting any ownership interest of a Cannabis Business, including, but not limited to, any change in ownership that affects an ownership interest of less than 20% of the Cannabis Business, must be promptly disclosed, in writing, to the Director.
(2) Any change affecting any ownership interest of a Cannabis Business that results in a Person holding an aggregate ownership interest of 20% or more of a Cannabis Business, when that Person did not previously hold an aggregate ownership interest of 20% or more in the Cannabis Business, shall require the Permittee to promptly obtain a permit amendment. Such permit amendment shall be reviewed by the Director in a manner consistent with subsection (c)(5), and shall not be granted unless the Director determines that, if the relevant Person (i.e., the Person who newly holds an aggregate ownership interest of 20% or more in the Cannabis Business) had been an Owner at the time the Permittee applied for a permit awarded under this Article 16, that permit would have been granted.
(3) Any change in the direction, control, or management of a Cannabis Business must be promptly disclosed, in writing, to the Director, and such change shall require the Permittee to promptly apply for and obtain a permit amendment. An application for such a permit amendment shall be reviewed by the Director consistent with subsection (c)(4), and shall not be granted unless the Director determines that, if the relevant Person (i.e., the Person newly exercising direction, control, or management with respect to the Cannabis Business) had been an Owner at the time the Permittee applied for a permit awarded under this Article 16, that permit would have been granted.
(4) A Permittee seeking a permit amendment as required under this subsection (c) shall pay the required filing fee for a permit amendment and provide such information, from the categories of information described in Section 1609, as may be required by the Director. The decision to grant or deny a permit amendment shall be entrusted to the Director’s discretion in the same manner, and subject to the same criteria, as the decision to grant or deny a permit as set forth in Section 1615, except as set forth in subsection (c)(9), below.
(5) Notwithstanding any other provision of this subsection (c), prior to the award of any Cannabis Business Permit, permanent or temporary, and for five years following the date on which the Director has acknowledged receipt of an application for a Cannabis Business Permit from a particular Applicant or Permittee, an aggregate ownership interest of 50% or more in that Applicant or Permittee may not be transferred to any Person or combination of Persons who were not Owners of the Permittee at the time that a Cannabis Business Permit was first awarded to that Applicant or Permittee under this Article 16. Nothing in this subsection (c)(5) shall prohibit a holder of a Temporary Cannabis Business Permit from transferring an aggregate ownership interest of 50% or more in the Permittee prior to the award of a permanent Cannabis Business Permit to that Permittee after five years have passed from the earliest date on which the Director acknowledged receipt of an application for a Cannabis Business Permit, whether temporary or permanent, from that Permittee. In the event that, prior to the award of a Cannabis Business Permit or prior to five years after the date on which the Director acknowledged receipt of the application for a Cannabis Business Permit from that Permittee, an aggregate ownership interest of 50% or more in a Permittee is transferred to any Person or combination of Persons who were not Owners of the Permittee at the time that a Cannabis Business Permit was awarded, in violation of this subsection (c)(5), and the Permittee fails to undo the prohibited ownership transfer within six months of receiving notification of such violation from the Director, the Permittee shall promptly surrender the permit to the Director. This restriction shall not apply to any testamentary or intestate transfer of ownership triggered by an Owner’s death. This obligation is not dependent on the Director’s requesting the surrender, but arises by operation of law six months following notice from the Director that the sale of the Cannabis Business has violated the transfer restriction in this subsection (c)(5). If the Permittee fails to surrender the permit to the Director, the Director may, after giving the Permittee notice by mail and electronically of the proposed action and an opportunity to respond, revoke the permit.
(6) A change in the form or structure of a Permittee shall not be considered a change affecting an ownership interest in a Cannabis Business for purposes of this subsection (c). Notwithstanding any other provision of this subsection (c), a Permittee may undertake any change in its form or structure, as long as the change in form or structure does not cause any change affecting an ownership interest. The Permittee must promptly disclose its change in form or structure, in writing, to the Director, and such change shall require the Permittee to promptly apply for and obtain a permit amendment as set forth in subsection (c)(4).
(7) Whenever, under this Article 16, an Owner is anything other than an individual, every individual who exercises direction, control, or management of that Owner shall also be treated as an Owner for purposes of this Article 16.
(8) Notwithstanding any other provision of this subsection (c), it shall not be considered a change affecting an ownership interest in a Cannabis Business if an individual transfers an ownership interest in a Cannabis Business to a Person that is entirely owned and controlled by that same individual, but any subsequent transfer of an ownership interest in that Person shall be considered a change affecting an ownership interest in the Cannabis Business. All transfers described in this subsection (c)(8) must be promptly disclosed, in writing, to the Director.
(9) Notwithstanding any other provision of this subsection (c), a Permittee must obtain a permit amendment if a change in ownership results in a decrease in an Equity Applicant’s ownership interest, as defined in Section 1604(b), in the Cannabis Business, a change in the Equity Applicant’s role as Chief Executive Officer or member of the Board of Directors, or a material change in the degree of the Equity Applicant’s participation in the direction, control, or management of the Cannabis Business. Applications for a permit amendment in accordance with this subsection (c)(9) must include the terms of the change in ownership. The Director shall require, as a condition of granting a permit amendment under this subsection where the combined ownership interest in the Cannabis Business by all verified Equity Applicants following the amendment would total less than 20%, that the Cannabis Business commit to take one or more specific actions to support the City’s equity goals as described in Section 1604(a) on an ongoing basis through the life of the Cannabis Business Permit. Applications for such a permit amendment shall include a detailed written description of the proposed equity action(s), the dates by which the Cannabis Business will take the action(s), an estimated dollar value for each action, and the dollar amount of gross sales of cannabis by the Cannabis Business during the most recently completed fiscal year. The Director shall not approve such permit amendment unless the Director finds that that proposed action(s) represent a substantial commitment to equity by the Cannabis Business for the life of the Cannabis Business Permit, taking into consideration the dollar amount of gross sales of cannabis by the Cannabis Business during the most recently completed fiscal year, and the Director’s assessment of the likely impact of the proposed action(s) in support of the City’s equity goals. In approving such permit amendment, the Director shall include as conditions of the amended permit specified equity action(s), and a further requirement that the Cannabis Business provide annual reports to the Director on or before February 1 of each year for the life of the Cannabis Business Permit, documenting the Cannabis Business’s action(s) taken during the prior calendar year to satisfy all permit conditions. Actions a Cannabis Business may propose in its permit application to satisfy the equity commitment required upon a reduction in the combined ownership interest in the Cannabis Business by all verified Equity Applicants below 20% include but are not limited to the following:
(A) Contributing, on an annual basis, an amount of cash, in-kind goods, services, and/or technical assistance equivalent to 1% of the gross sales of cannabis by the Cannabis Business during the most recently completed fiscal year prior to the submission of the application for permit amendment to one or more community organizations that serve equity goals, as described in Section 1604(a), and in which the Cannabis Business has no ownership or other financial interest;
(B) Providing training, mentorship, and employment opportunities to workers who meet at least three of the criteria set forth in Section 1604(b)(4);
(C) Ensuring that a substantial portion of Cannabis-related products promoted and/or sold by the Cannabis Business are sourced from businesses that are one of the following: (i) Equity Applicants that have been awarded Cannabis Business Permits (“Equity Operators”); or (ii) Cannabis Businesses that have been verified as the local equivalent of Equity Applicants or Equity Operators in jurisdictions outside San Francisco with a local equity program, as defined in Section 26240(e) of the California Business and Professions Code, as may be amended from time to time;
(D) Providing financial support, technical assistance, rent-free commercial space, and/or other support to one or more Equity Operators or Equity Applicants in which, or in whose Cannabis Businesses, no Owner of the Cannabis Business seeking a permit amendment has any ownership interest or other financial interest.
(d) Interim Cannabis Business Permits. Once the Director receives a surrendered Cannabis Business Permit to Operate, as set forth in subsection (b) of this Section 1608, the new Owner of the business may apply to the Director for an Interim Cannabis Business Permit, subject to any required Planning Department approvals, for a period not to exceed 90 days from the date of surrender (an “Interim Permit”). An Interim Permit may not be renewed. The Director may grant an Interim Permit provided that:
(1) The new Owner has submitted a completed application for a Cannabis Business Permit to the Office of Cannabis, and a completed application for a State Cannabis License to the appropriate State Licensing Authority;
(2) The new Owner applies for the same type of Cannabis Business Permit as was held by the prior Owner;
(3) The Premises to which the Cannabis Permit applies complies with all existing health, safety, and fire ordinances, and applicable state laws governing Cannabis Businesses; and
(4) An Interim Permit is necessary to ensure uninterrupted operations of a Cannabis Business at the Premises, or to minimize interruption of its operations.
(a) Application and Fee Required. Every Applicant for a Cannabis Business Permit shall:
(1) File an application with the Director upon a form provided by the Director;
(2) Provide such information as may be required by this Article 16 and any regulations promulgated thereto; and
(3) Pay a non-refundable application fee, unless the Applicant is eligible for a fee waiver or reduction, as authorized by ordinance.
(b) Information Required of All Applicants for Cannabis Business Permits. The application form for all Cannabis Business Permit Applicants shall require the Applicant to provide the following information and documentation:
(1) The name, street address, and parcel number of the business for which the permit is sought;
(2) The name, contact information, and address of the Applicant as follows:
(A) If the Applicant is a corporation, the name of the corporation as shown in its articles of incorporation; the date and place of incorporation; and the name and address of each officer or director;
(B) If the Applicant is a Person other than a publicly traded company, the name and address of every Person that directly or indirectly owns or controls 20% or more of the assets, ownership interests, or voting interests in that Person;
(3) The name of and contact information for the manager(s) who will, directly or through designees, be on the Premises during hours of operation;
(4) The name and address of each Person who appears on the business registration certificate for the Business for which a permit is sought;
(5) The name and address of each Person who has or will have authority or control over the Business and a brief statement of the nature and extent of such authority and control, if the Applicant has not otherwise provided this information in the application;
(6) The name, contact information, and address of the Person authorized to accept service of process;
(7) For all Owners, a complete set of fingerprints in the manner required by the Director for the purpose of conducting a criminal background check, and such additional information concerning the criminal histories of Owners, as may be required by the Director;
(8) Written verification that the owner of the real property where the Cannabis Business will be located has the authority to consent, and consents to its use as a Cannabis Business. Such written verification must be signed by the property owner or the owner’s agent, and must include the owner and agent’s contact information;
(9) Where the Applicant leases the Real Property, a copy of the lease;
(10) A determination from the Planning Department that the proposed use as a Cannabis Business is in compliance with the Planning Code;
(11) An Operations Plan that includes such information as may be required by the Director, including but not limited to:
(A) An odor mitigation plan;
(B) A Hazardous materials inventory;
(C) A power plan;
(D) A Security Plan;
(E) A track and trace compliance plan;
(F) A waste disposal plan; and
(G) A water management plan.
(12) For Applicants with 10 or more employees, each Applicant must agree that, as a condition of any permit awarded under this Article 16, the Applicant will enter into, and abide by the terms of, either of the following prior to the award of such a permit:
(A) A Labor Peace Agreement; or,
(B) A collective bargaining agreement with a Bona Fide Labor Organization.
(13) The Tax Collector account number associated with the Applicant’s business registration certificate issued by the Tax Collector in accordance with Article 12 of the Business and Tax Regulations Code;
(14) A copy of the Applicant’s Seller’s Permit, as may be required by Section 6067 of the California Revenue and Taxation Code, or where pending, proof of application therefor;
(15) A completed Permit Checklist upon a form provided by the Director;
(16) A detailed, scaled diagram of the proposed Premises that shows the boundaries of the property and all entrances, exits, interior partitions, walls, rooms, doorways, and common or shared entryways. The diagram must show the areas in which all Commercial Cannabis Activity will take place, including but not limited to areas where access will be limited to employees of the Cannabis Business and Customer access will be prohibited. If the proposed Premises consists of only a portion of property, the diagram shall reflect the Premises used for Cannabis activity and describe the use for the remaining portion of the property;
(17) Disclosure of all other previous and current Cannabis-related licenses and permits issued by or sought from the City, the State, and any out-of-state jurisdiction, including the date the permit or license was issued or denied, and the name of the permitting or licensing authority;
(18) A signed statement authorizing the Department of the Environment or, where applicable, the Public Utilities Commission to conduct an energy assessment within the first year of operation;
(19) A copy of a proposed Good Neighbor Policy, developed in consultation with the Office of Cannabis, under which the Applicant agrees to:
(A) Provide to residential and commercial neighbors located within 300 feet of the Cannabis Business the name, phone number, and email address of an onsite manager or community relations staff person who may be contacted concerning any problems associated with operation of the establishment;
(B) Maintain the Premises, adjacent sidewalk and/or alley in good condition at all times; and
(C) Prohibit loitering in or around the Premises, and post notifications on the Premises advising individuals of this prohibition.
(20) A staffing plan that includes an organizational chart, demonstrating the roles and responsibilities of each employee and the reporting structure;
(21) A Community Benefits Agreement for consideration by the Director that must, at a minimum:
(A) Commit to the development of a First Source Hiring Plan, as set forth in Section 1618 of this Article 16; and
(B) Describe the Applicant’s employment outreach, recruitment, and retention strategies for positions of employment not covered by the First Source Agreement; and
(C) Describe how the Applicant will work to encourage and support the establishment and growth of Equity Applicants, provide employment opportunities to persons that have been disproportionately impacted by the criminalization of Cannabis, and otherwise further the City’s equity goals.
(22) A statement from the Applicant that the Applicant will not Sell or maintain on the Premises Tobacco Products or alcoholic beverages;
(23) Documents demonstrating that the Applicant engaged in a Community Outreach Strategy to advise neighbors of its intent to seek a Cannabis Business Permit and to solicit input on its proposed Good Neighbor Policy. An Applicant’s Community Outreach Strategy must, at a minimum, address the requirements of subsection (b)(19)(A), include information about how neighbors may provide input on the content of the Applicant’s Good Neighbor Policy, and include sign-in sheets and minutes for any meetings held with neighbors. All materials and notices developed and distributed to neighbors by the Applicant as part of its Community Outreach Strategy must be translated into the languages required by the Language Access Ordinance, Administrative Code Chapter 91;
(24) For Applicants that submitted an Equity Plan, as set forth in Section 3322 of the Health Code, an Equity Progress Report describing the steps the Applicant has taken in compliance with and furtherance of its Equity Plan since its submission to the Director.
(25) Such further information as the Director requires regarding financial and lease arrangements, management authority, operational control of the Business or its Premises, or other matters, when such further information will assist the Director in his/her determination whether to grant or deny the permit;
(26) A statement signed by the Applicant under penalty of perjury, that the information provided is complete, true, and accurate; and
(27) A list of every Person with any financial, ownership, or other interest, as may be defined by the Director, in the Applicant, the proposed Cannabis Business, and any Owner of the proposed Cannabis Business, except that the Disrector may provide that remote or de minimis interests need not be disclosed.
(28) The Director may allow or require an Applicant to supplement, amend, or correct, any information provided under this Section 1609 within reasonable limits prescribed by the Director, without requiring a new application, except that an Applicant may not change the location of the Premises of the proposed Cannabis Business after the Premises have been inspected by the Office or a Referring Department.
(c) Additional Information Required of Applicants for Cannabis Cultivation Facility permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Cannabis Cultivation Facility permit shall also submit as part of its application:
(1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a State Cannabis License authorizing the Cultivation and/or Processing of Cannabis;
(2) A statement declaring the Applicant is an “agricultural employer” as defined by the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975, California Labor Code Section 1140.4, to the extent not prohibited by law;
(3) Information demonstrating the size of the planned Canopy, by square footage of Cultivation and/or Processing area(s), as applicable;
(4) Indication on the diagram of the proposed Premises of the location of any Hazardous materials and water storage;
(5) For Applicants that will engage in the Cultivation of Cannabis, a Cultivation Plan containing such information as may be required by the Director, including but not limited to:
(A) A list of pesticides to be used and quantities of pesticides to be stored on the Premises;
(B) A list of fertilizers to be used and quantities of fertilizers to be stored on the Premises;
(C) A list of any Hazardous materials to be stored on the Premises, and the quantities thereof;
(D) A copy of the Applicant’s Hazardous materials plan; and
(E) A list of propagative materials to be used for Cultivation.
(6) For Applicants that will engage in the Cultivation of Cannabis, a Water Plan containing such information as may be required by the Director, including but not limited to:
(A) Identification of the water source and supplier;
(B) Where applicable, the point of diversion;
(C) A general description of the area in which the water will be used; and
(D) A description of all water conservation measures.
(7) For Applicants that will engage in the Processing of Cannabis, an Operations Plan containing such information as may be required by the Director, including but not limited to:
(A) Identification of the equipment to be used on the Premises;
(B) A list of any Hazardous materials to be stored on the Premises, and the quantities thereof; and
(C) A copy of the Applicant’s Hazardous materials plan.
(8) A Power Plan containing such information as may be required by the Director, including but not limited to:
(A) The name of the energy generation provider;
(B) An indication of the percentage of electricity supplied from California-eligible renewable and large hydroelectric sources; and
(C) A description of all planned energy efficiency measures.
(d) Additional Information Required of Applicants for Cannabis Manufacturing Facility permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Cannabis Manufacturing Facility permit shall also submit as part of its application:
(1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a State Cannabis License authorizing the Manufacture of Cannabis;
(2) A Manufacturing Plan, containing such information as may be required by the Director, including but not limited to:
(A) A detailed description of all processes to be used for the extraction, packaging, and/or infusion of Cannabis;
(B) A list of any Hazardous materials stored on the Premises, and the quantities thereof;
(C) A copy of the Applicant’s Hazardous materials plan; and
(D) A description of all Cannabis Products that will be Manufactured on the Premises; and
(3) A statement from the Applicant acknowledging that non-Cannabis products will not be Manufactured on the Premises.
(e) Additional Information Required of Applicants for Cannabis Testing Facility permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Cannabis Testing Facility permit shall also submit as part of its application:
(1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a State Cannabis Testing Laboratory License;
(2) Evidence that the Applicant has obtained or has applied for ISO/IEC 17025 accreditation;
(3) A signed statement attesting that the Applicant has no economic interest in any Cannabis Businesses other than testing laboratories, such as the one for which the permit is sought;
(4) A Laboratory Operations Plan containing such information as may be required by the Director, including but not limited to:
(A) A description of sampling methods to be used; and
(B) A description of the chain of custody controls to be used.
(f) Additional Information Required of Applicants for Cannabis Distributor permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Cannabis Distributor permit shall also submit as part of its application:
(1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a State Distributor License authorizing the Distribution of Cannabis and Cannabis Products;
(2) A Distribution Plan containing such information as may be required by the Director, including but not limited to:
(A) Information identifying all locations where the Applicant will store Cannabis or Cannabis Products;
(B) The Vehicle Information Number for each vehicle that will be used to Distribute Cannabis and Cannabis Products, and proof of insurance therefor.
(3) A copy of the Applicant’s Cannabis Tax Permit, as may be required by Section 34014 of the California Revenue and Taxation Code, as may be amended from time to time, or if pending, proof of application therefor.
(g) Additional Information Required of Applicants for Cannabis Microbusiness permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Cannabis Microbusiness permit shall also submit as part of its application:
(1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a Cannabis Microbusiness License; and
(2) All documentation and information set forth in subsections (c), (d), (f), and either (h) or (i) of this Section 1609.
(h) Additional Information Required of Applicants for Storefront Cannabis Retailer permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Storefront Cannabis Retailer permit shall also submit as part of its application:
(1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a Retailer License.
(2) For Applicants that have held a valid Medical Cannabis Dispensary permit, documentation demonstrating whether the on-site Smoking of Cannabis was prohibited by the Planning Department or Planning Commission.
(3) A Storefront Cannabis Retailer Operations Plan containing such information as may be required by the Director, including but not limited to:
(A) A description of the methods to be used to secure against theft or misappropriation Cannabis Products that are not on display in the store; and
(B) A description of where and when shipments of Cannabis and Cannabis Products will be received, and the security measures that will be implemented to ensure the safety of the Retailer’s employees, and the public, and to protect against the theft of Cannabis and Cannabis Products;
(4) A description of how the Applicant will support the needs of Customers who qualify under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis, including but not limited to providing space where Customers may speak confidentially with employees of the Cannabis Business, and ensuring a sufficient supply of Medicinal Cannabis and Medicinal Cannabis Products;
(5) Indication of whether the Applicant intends to apply for a Cannabis Consumption permit, as set forth in Article 8A of the Health Code, and a description of the type(s) of Consumption that the Applicant proposes to allow on the Premises.
(6) A statement from the Applicant that the Applicant will not assign any name to the Cannabis Business that is likely to mislead members of the public into believing that the Cannabis Business is a business of a type that is legally permitted to sell products to minors, or is likely to entice minors to patronize the business.
(7) If the Applicant intends to Deliver Cannabis or Cannabis Products to Customers, the Applicant shall also provide:
(A) Information about the electronic platform, if any, to be used to receive and process orders for Cannabis and/or Cannabis Products;
(B) The Vehicle Information Number for each vehicle that will be used to Deliver Cannabis and Cannabis Products, and proof of insurance coverage therefor;
(C) A description of how the Applicant will confirm the age and identity of the Customer prior to and/or upon Delivery;
(D) A description of how the Applicant will confirm that a Customer is qualified under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis, prior to and/or upon Delivery of Medicinal Cannabis or a Medicinal Cannabis Product.
(E) A description of how the Applicant will track drivers and Delivery status.
(F) A statement from the Applicant affirming that the Applicant:
(i) Will provide training to all Delivery employees concerning the laws governing Sales and Deliveries of Cannabis and Cannabis Products;
(ii) Will take steps to ensure the personal safety of all Delivery employees; and
(iii) Understands that the Delivery of Cannabis or Cannabis Products by anyone other than an employee of the Applicant is a violation of this Article 16.
(8) If the Applicant intends to operate a Compassion Program, as set forth in subsection (aa) of Section 1618 of this Article 16, a description of the proposed terms and conditions of such program.
(i) Additional Information Required of Applicants for Delivery-Only Cannabis Retailer permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Delivery-Only Cannabis Retailer permit shall also submit as part of its application:
(1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a license authorizing the Delivery and Sale of Cannabis and/or Cannabis Products to Customers.
(2) A description of how the Applicant will support the needs of Customers who qualify under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis, including but not limited to ensuring a sufficient supply of Medicinal Cannabis and Medicinal Cannabis Products.
(3) A “Delivery-Only Cannabis Retailer Operations Plan” containing such information as may be required by the Director, including but not limited to:
(A) Where applicable, a description of the protocols it intends to implement to separately store, sell, and tax Medicinal and Adult Use Cannabis and Cannabis Products;
(B) A description of where and when shipments of Cannabis and Cannabis Products will be received, and the security measures that will be implemented to ensure the safety of the Business’ employees, and the public, and to protect against the theft of Cannabis and Cannabis Products;
(C) Information about the electronic platform, if any, to be used to receive and process orders for Cannabis and/or Cannabis Products;
(D) The Vehicle Information Number for each vehicle that will be used to Deliver Cannabis and Cannabis Products, and proof of insurance coverage therefor;
(E) A description of how the Applicant will confirm the age and identity of the Customer prior to and/or upon Delivery;
(F) A description of how the Applicant will confirm that a Customer is qualified under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis, prior to and/or upon Delivery of Medicinal Cannabis or a Medicinal Cannabis Product;
(G) A description of how the Applicant will track Delivery employees and Delivery status; and
(H) A statement from the Applicant affirming that the Applicant:
(i) Will provide training to all Delivery employees concerning the laws governing Sales and Deliveries of Cannabis and Cannabis products;
(ii) Will take steps to ensure the personal safety of all Delivery employees; and
(iii) Understands that the Delivery of Cannabis or Cannabis Products by anyone other than an employee of the Applicant is a violation of this Article 16.
(j) Additional Information Required of Applicants for Cannabis Nursery permits. In addition to the information required under subsection (b) of this Section 1609
, an Applicant for a Cannabis Nursery permit shall also submit as part of its application:
(1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a license authorizing the operation of a Cannabis Nursery.
(2) All documentation and information set forth in subsection (c) of this Section 1609.
(k) Upon receipt of an application for a Medicinal Cannabis Retailer or Cannabis Retailer permit, the Office of Cannabis shall post the name and location of the proposed Cannabis Business on its website, and shall update its website with information about the status of the application until such time as the application has been approved or denied. The Office of Cannabis shall also cause a notice to be posted on the site of the Premises associated with the aforementioned permit applications to notify neighbors that a Cannabis Business Permit is sought at that location, if such notice is not otherwise required by the Planning Code.
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