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(a) Cannabis Event Permits. In addition to the Cannabis Business Permits described elsewhere in this Article 16, the Director may, as set forth in this Section 1621.5, issue Cannabis Event Permits authorizing sales of cannabis or cannabis products to, and/or consumption of cannabis or cannabis products by, persons 21 years of age or older, in connection with temporary events. For purposes of this Section, “temporary events” shall be defined consistent with California Business and Professions Code Section 26200(e) and implementing regulations. Such events may be held in any location approved by the Director and otherwise consistent with applicable State and City laws, whether that location is on or off the Premises of a Cannabis Business.
(b) Applications. Each applicant for a Cannabis Event Permit shall file an application with the Director in such form as the Director may require, and provide the Director with a list that conforms to subsection (d) of all individuals and entities that will provide onsite sales of cannabis goods at the proposed event, an Event Permit Equity Plan as described in subsection (e), and any requested information concerning the applicant and related Persons, the proposed event, and other subjects that the Director deems relevant to the proposed event. Additionally, each applicant shall pay the application fee set forth in Section 249.20 of the Business and Tax Regulations Code.
(c) State Approval. A Cannabis Event Permit may be issued only to an applicant who holds an Event Organizer License issued by the California Bureau of Cannabis Control, or that is otherwise authorized by State law to organize temporary cannabis events.
(d) Qualifications for Retailers. Only individuals or entities that hold a Cannabis Business Permit, or an individual employed by a Cannabis Business Permit holder acting as an agent of that permit holder, may provide onsite sales of cannabis goods at the event, and only if said individuals and/or entities have been identified in the application for the Cannabis Event Permit. For purposes of this section, a “Cannabis Business Permit” shall include both a Cannabis Business Permit as defined in Section 1602 of this Code, and a Medical Cannabis Dispensary Permit issued under Article 33 of the Health Code that includes the authorization to Sell Adult Use Cannabis set forth in Section 3322(d), (e), and (f) of the Health Code. A Cannabis Event Permit may not be issued to an applicant unless the applicant identifies the individuals and/or entities that will provide onsite sales of cannabis goods at the event and affirms that said individuals and/or entities either hold a Cannabis Business Permit or are employed by a holder of a Cannabis Business Permit and will be acting as an agent of that permit holder.
(e) Equity Criteria for Cannabis Event Permit Applicants. As a condition of permit issuance, Applicants for Cannabis Event Permits must submit to the Director for review and approval a written “Event Permit Equity Plan,” in which the applicant describes the specific actions it will take to support the City’s equity goals as described in Section 1604(a), the dates by which the applicant will take the listed actions, and an estimated dollar value for each of the actions. Actions a Cannabis Event Permit applicant may take to satisfy this requirement include but are not limited to the following:
(1) Ensuring that a minimum of 30% of all work hours expended in preparing and executing the event that is the subject of the requested Cannabis Event Permit (the “Event”) are performed by workers who meet at least three of the criteria set forth in Section 1604(b)(4);
(2) Providing training and mentorship opportunities to workers who meet at least three of the criteria set forth in Section 1604(b)(4);
(3) Ensuring that a substantial portion of Cannabis-related products showcased and sold at the Event are provided by businesses that are one of the following: Equity Operators, as defined in Section 1604(c)(5)(A); Medical Cannabis Dispensary permit holders that have been verified as Equity Applicants under Section 1604; or Cannabis Businesses in jurisdictions outside San Francisco with a local equity program, as defined in Section 26240(e) of the California Business and Professions Code, that are classified as Equity Operators or the equivalent under the governing law of that jurisdiction; and/or
(4) Donating cash, in-kind goods, services, and/or technical assistance to community organizations that serve equity goals.
(f) Concurrence of Relevant City Departments. Whenever any other City department, office, agency, committee, commission, or official, or combination thereof (collectively, “City entity”) has issued a permit in connection with a temporary event, or has received an application for such a permit, or otherwise has the authority to issue permits or other approvals necessary for a temporary event, and an applicant seeks a Cannabis Event Permit in connection with that event, the Director shall consult with each such City entity before issuing any Cannabis Event Permit. In each such case, the Director shall not issue a Cannabis Event Permit unless each City entity determines, under the criteria it may otherwise use to grant or deny a permit in connection with the proposed event (including, but not limited to, any policy adopted by the City entity relating to cannabis sales and/or consumption at events) that the Cannabis Event Permit should issue, except that the Director may issue a permit conditioned upon approval by other City entities pending review by those other City entities.
(g) Temporary Waiver of Certain City Laws. A City entity described in subsection (f) may, in its discretion and after considering public health and public safety, temporarily waive, for a period not to exceed the duration of the proposed event, any City law that would restrict or prohibit smoking (including, but not limited to, Article 19 through Article 19L of the Health Code) in all or part of the proposed event space, or any other provision of the Administrative, Health, Park, or Police Codes that would otherwise restrict or prohibit the consumption of cannabis or cannabis products in all or part of the proposed event space. When any such City law is waived pursuant to this subsection (g), the event shall be deemed to be in compliance with the suspended City law for purposes of any City law requiring such compliance. This subsection (g) shall not be construed to authorize any waiver of State law.
(h) Discretionary Grant or Denial. Except as provided in subsections (c), (d), (f), and (k), the Director may grant a Cannabis Event Permit in his or her reasonable discretion, or may deny a Cannabis Event Permit in his or her reasonable discretion based on one or more of the following findings:
(1) The applicant has not sufficiently established that the sale or consumption of cannabis or cannabis products at the event would comply with all applicable State and City laws;
(2) The applicant has not sufficiently established that the sale or consumption of cannabis or cannabis products at the event would be consistent with public health or public safety;
(3) The applicant has not sufficiently established that the sale or consumption of cannabis or cannabis products at the event would not have adverse impacts on nearby neighborhoods or public spaces;
(4) The applicant has not taken steps sufficient to reasonably ensure that the only individuals and/or entities that will provide onsite sales of cannabis goods at the proposed event are those that have been identified on the application as either holding a Cannabis Business Permit or being employed by a holder of a Cannabis Business Permit and acting as an agent of that permit holder;
(5) The applicant has provided materially false or incomplete information in support of the application, or has otherwise engaged in conduct that gives the Director cause to doubt the applicant’s credibility or good faith;
(6) The applicant has not made a good faith effort to comply with its Event Permit Equity Plan, submitted under subsection (e);
(7) There is insufficient time to process the permit application adequately in advance of the proposed event; or
(8) There is other good cause to deny the permit.
(i) Permit Conditions. Any applicant awarded a Cannabis Event Permit shall be responsible for ensuring that the temporary event is conducted in compliance with all State and City laws applicable to the sale and consumption of cannabis at the event. The Director may impose any permit conditions that the Director deems conducive to the protection of public health and safety, the mitigation of potential adverse impacts on nearby neighborhoods or public spaces, and the prevention of underage or otherwise unlawful access to cannabis or cannabis products, or that otherwise would be conducive to the safe, lawful, and orderly operation of the proposed event.
(j) Enforcement and Implementation. Any or all of the following actions may be taken in conjunction with the implementation or enforcement of this Section 1621.5:
(1) The Director may require an event permitted under this Section 1621.5 to cause any sales or consumption of cannabis or cannabis products at the event to cease or otherwise be limited, without delay or within such other timeframe as the Director determines, if the Director determines that such action is necessary to protect public health or safety, or to ensure compliance with applicable State or City laws.
(2) The Director may require the holder of a Cannabis Event Permit to expel from the event any participant selling cannabis or cannabis products in a manner inconsistent with applicable State or City laws.
(3) Any violation of this Section 1621.5, or of applicable State or City laws, or of any permit condition imposed pursuant to this Section, or any material false statement made to the Director in connection with an application for a Cannabis Event Permit, may be punished as a violation of this Article 16, using procedures consistent with Sections 1631 and Section 1632.
(4) Any violation of this Section 1621.5, of applicable State or City laws, or of any permit condition imposed pursuant to this Section, or any material false statement made to the Director in connection with an application for a Cannabis Event Permit, may be cause for denial of any application for a Cannabis Business Permit submitted by the holder of the Cannabis Event Permit or by any other party responsible for the violation, for suspension or revocation of any existing Cannabis Event Permit, and for suspension or revocation of any other existing permit to engage in Commercial Cannabis Activity.
(k) Pilot Program. Prior to January 1, 2020, the Director may issue Cannabis Event Permits only in connection with events that meet all the following criteria:
(1) The event has previously been held on a regular basis;
(2) The event, in prior years, has received a City-issued permit; and
(3) At the event, in prior years, there has been significant unregulated cannabis sales or consumption, which the Director determines could be reduced or eliminated at the event by the issuance of a Cannabis Events Permit. Except as stated in the following paragraph, the restrictions imposed by this subsection (k) on the operation of this Section 1621.5 shall become inoperative on January 1, 2020.
The Director may extend the pilot program set forth in this subsection (k) one or more times, up to December 31, 2021, such that no Cannabis Event Permit may issue except as provided under this subsection (k) prior to the date the Director’s extension of the pilot program, if any, ends. The Director may extend the pilot program as provided herein only upon the Director’s written determination that, in light of other duties imposed on the Office of Cannabis, the Office lacks sufficient resources to process additional Cannabis Event Permit applications or to otherwise effectively regulate cannabis-related events.