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(a) Authorized activities. A Cannabis Testing Facility Permit authorizes the Permittee to engage in the Commercial testing of Medicinal Cannabis and Cannabis Products and Adult Use Cannabis and Cannabis Products.
(b) Operating Standards. In addition to the operating requirements set forth in Section 1618 of this Article 16, a Cannabis Testing Facility shall:
(1) Notify the Department of Public Health and Office of Cannabis of any tests performed on Cannabis or Cannabis Products Cultivated or Manufactured by a Cannabis Business located in San Francisco where the Cannabis batch fails the testing requirements established by state regulation within five business days of conducting such test. Such notification shall include the name, State license number and local Permit number of the Manufacturer that provided the Cannabis to be tested, and information related to the test results, reason for failure, and any applicable track and trace information;
(2) Notify the Office of Cannabis within 24 hours of conducting a test if a sample that was Cultivated, Manufactured, or supplied by a Cannabis Business located in San Francisco is found to contain levels of a contaminant not allowable by the State that could be injurious to human health if Consumed. The Office of Cannabis shall provide this information to appropriate City and state departments, including but not limited to the Department of Public Health;
(3) Notify the Office of Cannabis within one business day after receipt of notice that accreditation as a Cannabis Laboratory has been denied, suspended or revoked; and
(4) Employ at least one full-time employee responsible for quality control.
(Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018)
(a) Authorized activities. A Cannabis Distributor Permit authorizes the Permittee to engage in the Commercial Distribution of Medicinal Cannabis and Adult Use Cannabis, provided that the Permittee is both an A-licensee and an M-licensee. A Cannabis Distributor that holds only an A-license may engage in the Commercial Distribution of Adult Use Cannabis and Cannabis Products only. A Cannabis Distributor that holds only an M-License may engage in the Commercial Distribution of Medicinal Cannabis and Cannabis Products only.
(b) Operating Standards. In addition to the operating requirements set forth in Section 1618 of this Article 16, a Cannabis Distributor shall comply with the following operating standards:
(1) A Cannabis Distributor shall inspect all Cannabis and Cannabis Products received by it for quality assurance prior to Distribution.
(2) A Cannabis Distributor shall Distribute Cannabis and Cannabis Products by Commercial Vehicle only. Distribution by non-Commercial Vehicles, drones, human powered vehicles, and unmanned vehicles is prohibited.
(3) If a Cannabis Distributor receives notice that any Cannabis or Cannabis Products that are currently or were previously in the Cannabis Distributor’s possession, and that were either Cultivated or Manufactured by a Cannabis Business located in San Francisco or intended for possible distribution or sale to a Cannabis Business located in San Francisco, have been tested and have failed any requirements established by state regulation, the Cannabis Distributor shall notify the Department of Public Health and the Office of Cannabis as soon as practicable, and no later than 48 hours after the Cannabis Distributor receives notice of those results. Such notification shall include, to the extent available to the Cannabis Distributor, the name, State license number, and local Permit number of the Manufacturer that provided the Cannabis to be tested, the test results, reason for failure, and any applicable track and trace information.
(a) Authorized activities. A Cannabis Microbusiness Permit authorizes the Permittee to engage in the Commercial Cultivation, Manufacture, Distribution, and Sale (either as a Storefront Retail Cannabis Business or a Delivery-Only Cannabis Business Retailer) of Medicinal Cannabis and Cannabis Products and Adult Use Cannabis and Cannabis Products, provided that the Permittee is both an A-licensee and an M-licensee. A Cannabis Microbusiness that holds only an A-license may engage in the aforementioned Commercial activities relating to Adult Use Cannabis and Cannabis Products only. A Cannabis Microbusiness that holds only an M-License may engage in the aforementioned Commercial activities relating to Medicinal Cannabis and Cannabis Products only.
(b) Operating Standards. In addition to the operating requirements set forth in Section 1618, a Cannabis Microbusiness shall comply with the operating standards set forth in Sections 1623, 1624, 1626, and and either Section 1628 or Section 1629 of this Article 16
, and shall comply with the following additional operating standards:
(1) A Cannabis Microbusiness shall conduct no less than three of the following four categories of Commercial activity on the same Premises: Cultivation, Manufacture, Distribution, and Sale.
(2) The area on which a Cannabis Microbusiness Cultivates Cannabis must be less than 10,000 square feet.
(3) The use of Volatile Solvents by a Cannabis Microbusiness is prohibited.
(a) Authorized activities.
(1) A Medicinal Cannabis Retailer permit authorizes the Permittee to engage in the retail Sale of Medicinal Cannabis and Medicinal Cannabis products only.
(2) A Cannabis Retailer permit requires the Permittee to engage in the retail Sale of both Medicinal and Adult Use Cannabis and Cannabis Products.
(3) A Storefront Cannabis Retailer permit does not authorize the Permittee to engage in the Delivery of Cannabis or Cannabis Products to Customers unless the Director has authorized the Permittee to engage in deliveries, as set forth in Section 1622 of this Article 16.
(1) A Storefront Cannabis Retailer must be operated from a fixed place of business. It may not be operated out of a bus, truck, car, van, or any other mobile location or location that is capable of being mobile.
(2) A Storefront Cannabis Retailer shall post staff at the point of entry to the Premises to confirm that all Customers who enter are not underage, as set forth in Section 1619 of this Article 16.
(3) A Storefront Cannabis Retailer must make available to Customers a fact sheet relating to safe Consumption of Cannabis and Cannabis Products, to be produced by the Department of Public Health.
(4) A Storefront Cannabis Retailer shall not employ or enter into any agreements with any physicians who recommend Medicinal Cannabis or with any third party that employs physicians who recommend Medicinal Cannabis.
(5) A Storefront Cannabis Retailer licensed to sell Adult Use Cannabis may not Sell more than 28.5 grams of non-concentrated Adult Use Cannabis or eight grams of concentrated Adult Use Cannabis Products to a Customer in the same business day.
(6) A Storefront Cannabis Retailer licensed to sell Medicinal Cannabis may not Sell more than eight ounces of Medicinal Cannabis or 12 immature Cannabis plants to a Customer in the same business day, unless the Customer provides a Physician’s Recommendation requiring a greater amount.
(7) A Storefront Cannabis Retailer may not:
(A) Allow Customers on the Premises during hours of closure;
(B) Store Cannabis or Cannabis Products in any location other than on the permitted Premises;
(C) Sell Cannabis or Cannabis Products through a drive-up window;
(D) Give away or Sell pressurized containers of butane or other materials that could be used in the home production of Cannabis extract.
(8) A Storefront Cannabis Retailer may accept returns of Cannabis and Cannabis Products that were previously sold by the Storefront Cannabis Business, but shall not resell Cannabis or Cannabis Products that have been returned. A Storefront Cannabis Retailer shall treat any Cannabis and Cannabis Products that are abandoned on the Premises as a return. A Storefront Cannabis Retailer shall destroy all Cannabis and Cannabis Products that have been returned as required by the State of California.
(9) A Storefront Cannabis Retailer must maintain an electronic age verification device to determine the age of any individual attempting to purchase Cannabis or Cannabis Products, which device shall be used for the Sale of the Cannabis or Cannabis Products to the Customer. The device shall be maintained in operational condition and all employees shall be instructed in its use. Cannabis and Cannabis products shall not be sold to a Customer if the electronic age verification device is not functioning.
(10) All operating standards applicable to Sales of Cannabis and Cannabis Products that are made on the Premises of the Cannabis Business shall apply equally to Sales that are made by Delivery pursuant to Section 1622.
CODIFICATION NOTE
(a) Authorized Activities. A Delivery-Only Cannabis Retailer permit requires the Permittee to engage in the Delivery and Sale of both Medicinal Cannabis and Cannabis Products and Adult Use Cannabis and Cannabis Products.
(b) Only Delivery Authorized. The Premises of a Delivery-Only Cannabis Retailer must be closed to the public and all Sales must be conducted exclusively by Delivery. A Delivery-Only Cannabis Retailer may not permit entry on to its Premises by Customers.
(c) Operating Standards. In addition to the operating requirements set forth in Section 1618, a Delivery-Only Cannabis Retailer shall comply with the following additional operating requirements:
(1) A Delivery-Only Cannabis Retailer licensed to sell Adult Use Cannabis may not Sell more than 28.5 grams of non-concentrated Adult Use Cannabis or eight grams of concentrated Adult Use Cannabis Products to a Customer in the same business day.
(2) A Delivery-Only Cannabis Retailer licensed to sell Medicinal Cannabis may not Sell more than eight ounces of Medicinal Cannabis or 12 immature Cannabis plants, in the same business day, unless the Customer provides a Physician’s Recommendation requiring a greater amount.
(3) All inventory must be stored on the Premises.
(4) A Delivery-Only Cannabis Retailer may not employ or enter into any agreements with any physicians who recommend Medicinal Cannabis or with any third party that employs physicians who recommend Medicinal Cannabis.
(5) A Delivery-Only Cannabis Retailer must provide to all Delivery personnel a remote electronic age verification device to determine the age of any individual attempting to purchase Cannabis or Cannabis Products, which device shall be used upon the Delivery of the Cannabis or Cannabis Products to the Customer. The device shall be maintained in operational condition and all employees shall be instructed in its use. Cannabis and Cannabis products shall not be Delivered to a Customer if the electronic age verification device is not functioning.
(a) Any member of the Office of Cannabis, the Police Department, the Department of Public Health, the Department of Building Inspection, the Planning Department, and/or any other Referring Department (collectively, “Inspecting Departments”) may enter and inspect the Premises of any Cannabis Business and any vehicle used for the purpose of Distribution or Delivery, to determine whether the Cannabis Business is operating in compliance with State law or this Article 16 (including compliance with conditions on the permit).
(b) Pursuant to this Section 1630, the Inspecting Departments shall have access to the Cannabis Business Premises, video footage, business records, data, inventory levels and information relating to Customers, vendors, Cannabis Products, plans and agreements (collectively, “Confidential Information”). To the extent authorized by law, an Inspecting Department shall not disclose Confidential Information to the public, and shall use the Confidential Information only for purposes specified in this Article 16 or other laws and regulations of the City specifically related to the City Permittees from whom such Confidential Information has been received. Notwithstanding the foregoing, the City may disclose Confidential Information:
(1) As may be required by the California Public Records Act or the San Francisco Sunshine Ordinance or other state or City law, or pursuant to a valid subpoena or court order; or
(2) In connection with any City enforcement proceeding relating to compliance with laws specifically applicable to Cannabis Businesses, but only to the extent the Confidential Information is relevant to the proceeding.
(c) The Police Department may conduct random, onsite “sting” operations on the Premises of Cannabis Retailers to determine compliance with Section 1619 of this Article 16. In conducting these inspections, the Police Department may enlist the assistance of persons under 21 years of age.
(Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018)
(a) If the Director determines that a Cannabis Business is operating in violation of this Article 16 (which is deemed in the entirety of this Section 1631 to include a violation of a permit condition and/or a violation of the rules and regulations adopted pursuant to this Article), the Director may issue a Notice of Violation to the Cannabis Business, the owner of real property where the violation occurred, and/or any other Persons the Director deems responsible for causing the violation.
(b) The Notice of Violation shall include the following information:
(1) That the Director has made a determination that the Cannabis Business is operating in violation of this Article 16;
(2) The alleged acts or failures to act that constitute the basis for the Director’s determination;
(3) That the Director intends to take enforcement action against the Cannabis Business, owner of real property, and/or any other Person deemed responsible for causing the violation(s), and the nature of that action, including the administrative penalty and enforcement costs to be imposed, additional conditions on Cannabis Business Permit(s) that may be imposed, and/or the suspension or revocation of Cannabis Business Permit(s);
(4) That the Cannabis Business, owner of real property, and/or any other Person deemed responsible for causing the violation(s) has the right to request a hearing before the Director within 15 days after the Notice of Violation is mailed, and that the written request for hearing must state facts demonstrating that:
(A) If the violation is disputed, the Cannabis Business was operating in compliance with this Article 16 and/or the rules and regulations adopted pursuant to this Article; and
(B) Whether or not the violation is disputed, the Cannabis Business is currently operating in compliance with this Article 16 and/or the rules and regulations adopted pursuant to this Article, and has taken reasonable steps to prevent violations similar to the alleged violation(s), and arranged for the Director to re-inspect the Cannabis Business to confirm such reasonable steps. Where no such showing has been made, any Person or entity served with a notice or order by the Director setting forth the nature of the violation of this Article, such person shall be presumed, in subsequent administrative and/or civil proceedings, not to have corrected such violation.
(c) If no request for a hearing is filed with the Director within the appropriate period, or the request for hearing does not include the information required by subsection (b)(4) of this Section 1631, the right to request a hearing shall be deemed waived, and the Director’s determination shall become final and effective 15 days after the Notice of Violation was mailed. The Director shall issue an order imposing the enforcement action and mail the order to the Persons served with the Notice of Violation. In subsequent civil proceedings, such violations shall be presumed not to have been corrected. Where no hearing is timely requested, an order suspending, revoking, or imposing additional conditions on a permit is final. The failure of the Person on whom the Notice of Violation is served to request a hearing shall constitute a failure to exhaust administrative remedies and shall preclude the Person from obtaining judicial review of the validity of the enforcement action.
(d) Upon a timely request for a hearing that includes the information required by subsection (b)(4) of this Section 1631, the Director shall, within 15 days of the request, notify the requester of the date, time, and place of the hearing. The Director shall make available to the requester the photographs and other recorded evidence obtained in support of the Notice of Violation as well as a copy of the report prepared by the Director’s designee, if any, to support the Notice of Violation. Such hearing shall be held no later than 60 days after the Director receives the request, unless time is extended by mutual agreement of the requester and the Director.
(e) The Director shall conduct the hearing, or a hearing officer may be designated, who shall have the same authority as the Director to hear and decide the case and make any orders consistent with this Article 16. The Cannabis Business, owner of real property, or other Person(s) deemed responsible for causing the violation(s) may present evidence for consideration, subject to any rules adopted by the Director or hearing officer for the orderly conduct of the hearing. Within 30 days of the conclusion of the hearing, the Director or hearing officer shall render a decision in the form of a written order, which the Director shall promptly serve on the Cannabis Business, owner of real property, or any other Persons charged in the Notice of Violation. The order shall state whether the Notice of Violation has been upheld (in whole or in part), and the enforcement action taken against each party.
(f) If the order directs the Cannabis Business, owner of real property, or other person to pay an administrative penalty and/or enforcement costs, such amount shall be paid within ten days from the mailing of the order; the order shall inform the recipient of such deadline for payment.
(g) If the order suspends or revokes a permit, or imposes additional permit conditions, it may be appealed to the Board of Appeals in the manner prescribed in Article 1 of the Business and Tax Regulations Code; the order shall inform the recipient of such right to appeal.
(Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018)
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