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(Added by Ord. 111-04, File No. 040343, App. 7/1/2004; repealed by Ord. 56-15
, File No. 120967, App. 5/8/2015, Eff. 6/7/2015)
(Added by Ord. 111-04, File No. 040343, App. 7/1/2004; repealed by Ord. 56-15
, File No. 120967, App. 5/8/2015, Eff. 6/7/2015)
(Added by Ord. 15-06, File No. 051720, App. 1/20/2006; repealed by Ord. 56-15
, File No. 120967, App. 5/8/2015, Eff. 6/7/2015)
(Added by Ord. 111-04, File No. 040343, App. 7/1/2004; repealed by Ord. 56-15
, File No. 120967, App. 5/8/2015, Eff. 6/7/2015)
(a) In 1996, the voters of California approved Proposition 215, The Compassionate Use Act, allowing persons in need of cannabis for specified medical purposes to obtain and use cannabis.
(b) In 2001, the City adopted Resolution No. 955-01, declaring San Francisco to be a “sanctuary for medical cannabis.” In 2005, the City enacted Ordinance No. 275-05, Health Code Article 33, known as the Medical Cannabis Act, which implemented a local regulatory scheme for Medical Cannabis Dispensaries operating in San Francisco.
(c) In 2006, the City enacted Ordinance No. 297-06, Administrative Code Chapter 96B, making cannabis offenses by adults the lowest law enforcement priority in San Francisco.
(d) On August 29, 2013, in response to the number of states seeking to legalize cannabis, the United States Department of Justice issued a memorandum known as the Cole Memo, outlining federal cannabis enforcement priorities and specifying that the federal government would continue to rely on states and local law enforcement agencies to address cannabis activity through enforcement of their own narcotics laws.
(e) The federal law enforcement priorities articulated in the Cole Memo align with many of San Francisco’s priorities including: preventing the distribution of cannabis to minors; preventing cannabis sales revenue from going to criminal enterprises, gangs, and cartels; preventing the diversion of cannabis from states where it is legal to other states; preventing state-authorized cannabis activity from being used as a cover or pretext for the trafficking of other illicit drugs or activity; preventing violence and use of firearms in the cultivation and distribution of cannabis; preventing drugged driving and the exacerbation of other adverse public health consequences associated with cannabis use; preventing the cultivation of cannabis on public lands and the attendant public safety and environmental dangers posed by cannabis production on public lands; and preventing cannabis possession or use on federal property.
(f) On October 9, 2015, Governor Brown signed into law the Medical Marijuana Regulation and Safety Act (“MMRSA”), effective January 1, 2016, which established a comprehensive state licensing and regulatory framework for the cultivation, manufacturing, testing, distribution, transportation, dispensing, and delivery of medicinal cannabis, and which recognized the authority of local jurisdictions to prohibit or impose additional restrictions on commercial activities relating to medicinal cannabis. On June 27, 2016, Governor Brown signed into law Senate Bill 837, which amended MMRSA and renamed it the Medical Cannabis Regulation and Safety Act (“MCRSA”).
(g) On November 8, 2016, the voters of California approved Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA), which legalized the nonmedicinal use of cannabis for adults 21 years of age and older, created a state regulatory, licensing, and taxation system for non-medicinal cannabis businesses, and reduced penalties for cannabis-related crimes. San Francisco voters approved Proposition 64 at a rate of 74.3%, compared to 57.1% in the state overall.
(h) On November 9, 2016, Mayor Lee issued Executive Directive 16-05, entitled “Implementing Prop 64: Adult Use of Marijuana Act,” directing the Directors of Planning and Public Health, in collaboration with the San Francisco Cannabis State Legalization Task Force and other stakeholders, to lead the process of drafting the legislation required to fully and responsibly implement Proposition 64, including ordinances that address land use, local permitting, safety, and youth access.
(i) On June 27, 2017, Governor Brown signed into law the Medicinal and Adult-Use Cannabis Regulations and Safety Act (MAUCRSA), effective immediately, reconciling MCRSA and Proposition 64, unifying the adult-use and medicinal cannabis markets within the same regulatory regime, and making explicit the protection of the public to be the highest priority for all state licensing authorities in exercising their licensing, regulatory, and disciplinary functions under MAUCRSA. Under MAUCRSA, local jurisdictions may adopt and enforce ordinances to further regulate cannabis businesses, including zoning and permitting requirements and prohibitions on certain types of businesses.
(j) In 2015, the City enacted Ordinance No. 115-15, creating the San Francisco Cannabis State Legalization Task Force (“the Task Force”) to advise the Board of Supervisors, the Mayor, and other City departments on matters relating to the potential legalization of adult use cannabis. In December 2016, the Task Force submitted its Year I Report, and made recommendations related to Public Safety and Social Environment, Land Use and Social Justice, and Regulation and City Agency Framework for the City’s policymakers to consider.
(k) The Board of Supervisors intends to establish a comprehensive regulatory framework for medicinal cannabis and adult use cannabis. In furtherance of this goal, the Mayor’s FY2017-2018 budget, approved by the Board through its enactment of Ordinance No. 156-17, included appropriations for the establishment of an Office of Cannabis to coordinate with City departments and state agencies to develop policies and regulate the local cannabis industry to ensure that local public health, safety, and social justice goals are met. In addition, in July 2017, the City enacted Ordinance No. 168-17, Administrative Code Chapter 2A, Article XXVI, to establish an Office of Cannabis; to authorize the Director of the Office of Cannabis to issue permits to cannabis-related businesses; and to require the Director to collect permit application and annual license fees following the enactment of an ordinance establishing the amounts of those fees.
(l) In November 2017, the Office of Cannabis, the Office of the Controller, and the Human Rights Commission authored a Cannabis Equity Report, a copy of which is on file with the Clerk of the Board of Supervisors in File No. 171042. Among other things, the Cannabis Equity Report acknowledged that the War on Drugs, which included racially disproportionate arrests and incarceration, had disastrous impacts in San Francisco, including generational poverty, community degradation, disruption of family structures, and the loss of educational and employment opportunities. The Cannabis Equity Report found that:
(1) African Americans and Latinos in San Francisco have endured disproportionately higher felony drug arrests than persons of other races.
(2) Recent efforts to decriminalize specific drug-related activities have helped to narrow those gaps, but people of color still interact with the justice system at a rate far higher than white people in San Francisco.
(3) Even at today’s much lower rates of arrest and conviction, large racial disparities persist. In 2016, African Americans in San Francisco experienced felony drug arrest rates 10 times higher than San Franciscans of other races, and 2.4 times higher than African Americans elsewhere in California.
(4) Currently, Latino youth are twice as likely as African Americans, five times more likely than whites, and nearly 10 times more likely than Asian Americans to be arrested for a drug felony in San Francisco.
(5) While Proposition 64 clears the way for people with a conviction history involving cannabis crimes to enter the cannabis industry, a past criminal history can still present significant challenges, such as accessing financing or signing a lease agreement.
(m) The Board of Supervisors is committed to ensuring that the perspectives of communities that have been historically and disproportionately affected by federal drug enforcement policies are included and considered in all cannabis policy decisions.
(n) The Board of Supervisors is committed to fostering equitable access to participation in the cannabis industry for San Francisco-based small businesses and individuals by promoting ownership and stable employment opportunities in the industry.
(o) Through this Article 16, the Board of Supervisors intends to develop a regulatory framework that: reduces the illegal market for cannabis; minimizes the chances of social harm by protecting and promoting the health of all San Franciscans; limits youth access and exposure to cannabis and cannabis products; ensures safe consumption; maintains the City’s progressive clean air policies for residents, businesses, and their employees; creates equitable access to opportunities within the cannabis industry; and creates jobs and tax revenue for the City.
(Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018)
(a) This Article 16 shall be administered and enforced by the Office of Cannabis. The Director may adopt rules, regulations, and guidelines to carry out the provisions and purposes of this Article, including, but not limited to: operating guidelines designed to further the goals of reducing the illegal market for Cannabis and Cannabis Products, protecting and promoting the health of all San Franciscans, limiting youth access and exposure to Cannabis and Cannabis Products, ensuring safe consumption of Cannabis and Cannabis Products, and creating equitable access to opportunities within the Cannabis industry; hearing procedures; and standards for the imposition of administrative penalties, permit suspensions and permit revocations. The Director shall adopt rules, regulations, and guidelines to ensure that Storefront Cannabis Retailers and Delivery-Only Cannabis Retailers maintain and Sell an inventory of Medicinal Cannabis and Medicinal Cannabis Products that is sufficient in volume and variety to meet the diverse medical needs of qualified patients, including but not limited to guidelines addressing the availability of Cannabis flowers, and other specific forms of Cannabis or Cannabis Products.
(b) The Director is authorized to enter into agreements with State Licensing Authorities to enforce Division 10 of the California Business and Professions Code and its implementing regulations, consistent with Section 26202 of the California Business and Professions Code.
(Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018)
As used in this Article 16, the following words or phrases shall mean:
“A-license” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“A-licensee” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Adult Use Cannabis” means Cannabis or Cannabis Products intended for adults 21 years of age and over.
“Applicant” means an Owner applying for a Cannabis Business Permit under this Article 16.
"Bona Fide Labor Organization" means any organization or any agency or employee repre-sentation committee or any local unit thereof in which employees participate, and exists for the purpose, in whole or in part, of dealing with em-ployers concerning grievances, labor disputes, wages, hours of employment or conditions of work, which labor organization is not found to be or to have been financed in whole or in part, interfered with, dominated or controlled by the employer or any employer association.
“Bona Fide Order” means an order for the delivery of Cannabis or Cannabis Products to a Customer that includes this information supplied by the Customer: (a) the Customer’s name and date of birth; (b) the date Delivery is requested and the address of the real property where the Customer would like the items Delivered; (c) an itemization of the Cannabis items proposed for Delivery and the amount, quantity, and/or volume of each such item; and (d) a statement that the Cannabis or Cannabis Product is not for the purpose of resale.
“Bona Fide Proof of Identity and Age” means: (a) a valid document issued by a federal, state, or local government, or subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator’s license, that contains the name, date of birth, description of physical characteristics, and photo of the person; (b) a valid passport issued by the United States or by a foreign government; or (c) a valid identification card issued to a member of the United States Armed Forces that includes a date of birth and a photo of the person.
“Business Work Hours” means the total hours worked for a Cannabis Business by all workers, whether those workers are employed by the Cannabis Business or any subcontractor.
“Cannabis” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Cannabis Business” means any of the following: Cannabis Cultivation Facility, Cannabis Manufacturing Facility, Cannabis Testing Facility, Cannabis Distributor, Cannabis Microbusiness, Medicinal Cannabis Retailer, Cannabis Retailer, or Delivery-Only Cannabis Retailer.
“Cannabis Business Permit” means a permit to operate a specific type of Cannabis Business issued under this Article 16.
“Cannabis Business Registration Period” means the period of time during which Persons wishing to apply for Cannabis Business Permits may register with the Office of Cannabis, as set forth in Section 1605 of this Article 16.
“Cannabis Cultivation Facility” means a fixed place of business where Cannabis is Cultivated for Commercial purposes.
“Cannabis Distributor” means a fixed place of business where Cannabis and/or Cannabis Products are Distributed for Commercial purposes between Cannabis Businesses holding State Cannabis Licenses.
“Cannabis Manufacturing Facility” means a fixed place of business where Cannabis Products are Manufactured for Commercial purposes.
“Cannabis Microbusiness” means a fixed place of business where Cannabis and/or Cannabis Products are Cultivated, Manufactured, Distributed, and Sold to Customers.
“Cannabis Nursery” has the meaning set forth for the term “Nursery” in California Code of Regulations, Title 3, Division 8, Chapter 1, Sections 8000(w) and 8201(e), as amended from time to time.
“Cannabis Products” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Cannabis Retailer” means a fixed place of business where Cannabis and/or Cannabis Products are Sold to Customers.
“Cannabis Testing Facility” means a fixed place of business where Cannabis and/or Cannabis Products are tested for Commercial purposes.
“Canopy” means the designated area(s) at a permitted Premises that will contain Mature Plants.
“City” means the City and County of San Francisco.
“Commercial” means undertaken for Compensation.
“Commercial Cannabis Activity” includes the cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of Cannabis or Cannabis Products for Compensation, as provided for in this Article 16.
“Commercial Vehicle” has the meaning set forth in Section 260 of the California Vehicle Code, as may be amended from time to time.
“Compensation” means money or anything of value made as a payment, loan, advance, donation, contribution, deposit, forgiveness of debt, or gift.
“Consuming” or “Consumption” means Smoking, eating, drinking, chewing, applying topically, or otherwise ingesting.
“Cultivation” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Customer” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Delivery” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Delivery-Only Cannabis Retailer” means a fixed place of business from which Cannabis and/or Cannabis Products are Delivered and Sold to Customers.
“Director” means the Director of the Office of Cannabis, or his or her designee.
“Distribution” or “Distribute” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Hazardous material” has the meaning set forth in Section 1102 of the Health Code, as may be amended from time to time.
“Hazardous materials plan” has the meaning set forth in Section 1102 of the Health Code, as may be amended from time to time.
“Labor Peace Agreement” means an agreement between an Applicant and any Bona Fide Labor Organization that, at a minimum, prohibits such Bona Fide Labor Organization and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants’ business. As part of this Agreement, an Applicant also agrees not to disrupt efforts by such Bona Fide Labor Organization to communicate with, and attempt to organize and represent, the Applicant’s employees. The agreement shall provide such Bona Fide Labor Organization access at reasonable times to areas in which the Applicants’ employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. A Labor Peace Agreement shall not mandate a particular method of election or certification of a Bona Fide Labor Organization as an Applicant’s employees’ representative.
“Local Resident” means an individual who is domiciled, as defined by Section 349(b) of the California Elections Code, within the City for at least seven days immediately prior to commencing work for a Cannabis Business.
“M-license” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“M-licensee” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Manufacture” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Mature Plant” means a Cannabis plant that is flowering.
“Medicinal Cannabis” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Medical Cannabis Dispensary” means a cooperative or collective operating under the authority of a permit issued by the Director of Health under Article 33 of the Health Code.
“Medicinal Cannabis Retailer” means a fixed place of business where Medicinal Cannabis and/or Medicinal Cannabis Products are Sold to individuals who qualify under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis.
“Office” means the Office of Cannabis or any successor office or agency.
“Owner” means any of the following:
(a) A Person with an aggregate ownership interest of 20% or more in the Person applying for a Cannabis Business Permit or a Permittee, unless the interest is solely a security, lien, or encumbrance;
(b) The chief executive officer of a nonprofit or other entity;
(c) A member of the board of directors of a nonprofit; or
(d) A Person who will be participating in the direction, control, or management of the Person applying for a permit.
“Permittee” means any Person to whom a Cannabis Business Permit is issued under this Article 16, and any authorized agent or designee of such Person.
“Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other entity, or other group or combination acting as a unit. Person includes both the plural and singular.
“Physician’s Recommendation” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Pre-Existing Non-Conforming Operator” means a Cannabis Business that engaged in Commercial Cannabis Activities relating to Medicinal Cannabis as of September 26, 2017, in a location where such activities were not authorized by or consistent with the Planning Code.
“Premises” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Processing” means the drying, curing, trimming, or packaging of Cannabis. “Processing” does not include the growing, planting, or harvesting of Cannabis.
“Referring Department” means any City department, agency, office, board, or commission that is required by this Article 16, or its implementing regulations, to review an Applicant’s application for a Cannabis Business Permit prior to issuance of such permit by the Director.
“Security Guard” has the meaning set forth in Section 1060 of the Police Code, as may be amended from time to time.
“Security Plan” means a plan that adequately addresses the safety of persons and property at Cannabis Businesses, developed in consultation with the Police Department, and approved as a condition of the Cannabis Business Permit by the Director.
“Sell,” “sale,” and “to sell” have the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time.
“Smoke” or “Smoking” has the meaning set forth in Section 11362.3 of the California Health and Safety Code, as may be amended from time to time.
“State Cannabis License” means a license to engage in a Commercial Cannabis Activity, issued pursuant to Division 10 of the California Business and Professions Code.
“State Licensing Authority” means the state agency responsible for the issuance, renewal, or reinstatement of a State Cannabis License.
“Storefront Cannabis Retailer” means either of the following: Medicinal Cannabis Retailer or Cannabis Retailer.
“Temporary Cannabis Business Permit” means a Permit issued by the Director under Section 1605 of this Article 16 authorizing the Temporary Permit holder to engage in time-limited Commercial Activities.
“Tobacco Products” has the meaning set forth in Section 19H.2 of the Health Code, as may be amended from time to time.
“Volatile Solvent” has the meaning set forth in Section 26130(b) of the California Business and Professions Code, as may be amended from time to time.
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