It is the purpose and intent of this chapter to permit and regulate commercial cannabis manufacturing, testing, distribution, indoor cultivation, and delivery uses and to preclude the outdoor cultivation of cannabis, and to preclude the opening, establishment, and/or operation of microbusinesses and storefront cannabis retail establishments, including medical cannabis cooperatives and collectives, in the City. Nothing in this chapter is intended to authorize the cultivation, possession, or use of cannabis in violation of state or federal law. This chapter acknowledges that commercial cannabis activity is illegal under federal law while granting limited immunity from local prosecution to those medical and nonmedical cannabis activities that do not violate the restrictions and limitations set forth in this section or California law.
(Ord. 1442 § 2, 2011; Ord. 1548 § 2, 2017; Ord. 1551 § 2, 2018; Ord. 1554 § 2, 2018)
The words and phrases included in this section shall have the following meanings, unless it is clearly apparent from the context that another meaning is intended:
“Cannabis operator permit” or “operator permit,”
means a permit issued by the City pursuant to this chapter for the operation of a commercial cannabis business allowed by this chapter within the City.
“Cannabis retail establishment” or “storefront cannabis retail establishment”
means a dispensary, operator, individual, establishment, provider, association or similar entity that operates out of a fixed location that it is open to the public and offers, dispenses, sells, exchanges, makes available, either individually or in any combination, cannabis or cannabis products to customers, patients, or primary caregivers pursuant to State law. For the purposes of this chapter, cannabis retail establishment and storefront cannabis retail establishment do not include delivery-only operations as defined by this chapter.
“Closed-loop system”
means a method of extracting cannabinoids and tetrahydrocannabinol (“THC”) from cannabis plant material in a sealed environment. The method involves the use of specific equipment, including tanks with attached tubes, recovery tanks, refrigerant scales and pumps, and recovery pumps in order to create more efficient extraction and confine flammable solvents to a closed environment and decrease the risk of explosion.
“Commercial cannabis uses”
means any commercial cannabis activity licensed pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”), including, but not limited to, cultivation, possession, distribution, laboratory testing, labeling, retail, delivery, sale or manufacturing of cannabis or cannabis products. Commercial cannabis uses also means any cannabis activity licensed pursuant to additional State laws regulating such businesses. Commercial cannabis uses shall not include cannabis activities carried out exclusively for one’s personal use that does not involve commercial activity or sales.
“Delivery-only”
means a commercial cannabis use that involves the transfer of cannabis or cannabis products from a fixed location that is not open to the public to a customer at a fixed address specified by the customer pursuant to the applicable state cannabis license.
“Delivery vehicle”
means a manned vehicle meeting all requirements in State laws and regulations used in the commercial transfer of cannabis or cannabis products from a fixed location to a fixed address specified by a customer.
“Distribution”
means the procurement, sale, and transport of cannabis and cannabis products between State cannabis licensees.
“Indoor commercial cannabis cultivation”
means cultivation of cannabis for commercial purposes within a fully enclosed, permanent, secure structure. Indoor commercial cannabis cultivation only includes cultivation that exclusively uses artificial lighting as licensed pursuant to State law. For the purposes of this chapter, indoor commercial cultivation does not include cultivation that is legally conducted pursuant to federally-regulated scientific research.
“Manufacturing”
means producing, preparing, propagating, blending, or compounding cannabis or cannabis products either directly or indirectly or by extraction methods, infusion methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or re-labels its container, or otherwise making or preparing cannabis products.
“Microbusiness”
means a commercial cannabis establishment engaged in the cultivation of cannabis on an area less than 10,000 square feet and possesses multiple permits to act as a licensed distributor, manufacturer that uses nonvolatile solvents or no solvents, and/or retailer under Division 10 of the California Business and Professions Code.
“Nonvolatile solvents”
means a solvent that is not or does not produce a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures.
“Operator”
means a natural person or entity responsible for the direction, control, management, operation of any State-licensed and locally-permitted commercial cannabis use.
“Owner”
means each person or entity having an ownership interest in or a financial interest in, a commercial cannabis business.
“Pre-clearance” or “pre-cleared”
means the process by which an applicant for a cannabis operator permit is authorized to seek a conditional use from the Planning Commission. If staff determines that an applicant meets the minimum qualifications and the operator permit application complies with all of the requirements outlined in this chapter, said operator permit application will be granted pre-clearance and the applicant will be authorized to seek a conditional use permit from the Planning Commission. Valid operator permits will only be issued after an applicant successfully obtains a conditional use permit from the Planning Commission.
“Testing”
means performing scientific analysis of cannabis or cannabis products to determine its chemical profile, the presence of contaminants, or other similar scientific or compositional information as a commercial enterprise.
“Volatile solvent”
means volatile organic compounds, including, but not limited to: (1) explosive gases, such as butane, propane, xylene, styrene, gasoline, kerosene, 02 or H2; and (2) dangerous poisons, toxins, or carcinogens, such as methanol, methylene chloride, acetone, benzene, toluene, and tri-chloroethylene as determined by the Fire Marshal.
(Ord. 1442 § 2, 2011; Ord. 1548 § 2, 2017; Ord. 1551 § 2, 2018; Ord. 1554 § 2, 2018)
A. 
Storefront Prohibited. A storefront cannabis retail establishment is not a permitted use and is prohibited in all zones throughout the City. No permit or any other applicable license or entitlement for use, nor any business license, shall be approved or issued for the establishment, maintenance or operation of a storefront cannabis retail establishment within the City. This prohibition shall not apply to a delivery-only retail cannabis operation operating under an issued state cannabis license for retailers.
B. 
Microbusiness Prohibited. A microbusiness is not a permitted use and is prohibited in all zones throughout the City. No permit or any other applicable license or entitlement for use, nor any business license, shall be approved or issued for the establishment, maintenance or operation of a cannabis microbusiness within the City.
C. 
Outdoor Cultivation. All outdoor cultivation of cannabis is prohibited in the City. The prohibition on outdoor cultivation of cannabis applies to cultivation of cannabis for any reason, including, but not limited to, personal, medical or commercial use. No permit or any other applicable license or entitlement for use, nor any business license, shall be approved or issued for the establishment, maintenance or operation of an outdoor cannabis cultivation site within the City.
D. 
Public Nuisance. The establishment, maintenance or operation of a storefront cannabis retail establishment, microbusiness, or the outdoor cultivation of cannabis within the City is declared to be a public nuisance and may be abated by the City either pursuant to the South San Francisco Municipal Code or any other available legal remedies, including, but not limited to, declaratory relief and civil injunctions.
(Ord. 1442 § 2, 2011; Ord. 1548 § 2, 2017; Ord. 1551 § 2, 2018; Ord. 1554 § 2, 2018)
Indoor commercial cannabis cultivation is permitted in the City subject to the following requirements:
A. 
Zones Where Permitted. Indoor commercial cannabis cultivation shall not be permitted anywhere in the City except east of Highway 101 in the following zoning districts: Business Commercial (BC), Business Technology Park (BTP), Bay West Cove Specific Plan District (BWCSPD), Gateway Specific Plan (GSPD), Mixed Industrial (MI), and Oyster Point Specific Plan District (OPSD).
B. 
Conditional Use Permit Required. Indoor commercial cannabis cultivation is only permitted in the zoning districts specified above with a conditional use permit approved by the Planning Commission.
C. 
Distance Requirements. Indoor commercial cannabis cultivation sites must be located in the zoning districts listed in subsection A. Indoor commercial cannabis cultivation must also be located a minimum of 600 feet from residential uses, schools, day care centers and youth centers. The terms “school,” “day care center,” and “youth center” shall have the same meaning as in State laws related to cannabis.
D. 
Operational Requirements.
1. 
Operator Permits. All indoor commercial cannabis cultivation operations must obtain and maintain a valid operator permit issued by the City pursuant to Section 20.410.009 prior to commencing any commercial cannabis activity for which a State cannabis license is required.
2. 
Compliance with Law. All indoor commercial cannabis cultivation activities must be conducted in accordance with all applicable State laws and regulations, as may be amended from time to time, and all applicable local laws and regulations.
3. 
Visibility. All cannabis, cannabis by-products, and any aspect of indoor cannabis cultivation activities that indicate the type of product(s) being cultivated shall not be visible from a public right-of-way and/or exterior of a structure.
4. 
Odor Control. Operators must install and maintain, in good working-order, air treatment or other ventilation systems to prevent odors generated from the cultivation of cannabis from being detected within 10 feet of the structure in which commercial cannabis cultivation occurs.
5. 
Labeling. All finished cannabis products must be labeled in compliance with applicable State laws and regulations.
6. 
Artificial Lighting. All commercial cultivation activities must be conducted exclusively using artificial lighting as licensed pursuant to State law.
7. 
Permanent Structures Only. All commercial cultivation activities must be conducted inside permanent, secure structures and may not be conducted in greenhouses, hoop houses, temporary or other similar structures, including, but not limited to, tents or modular sheds.
8. 
Quality Control Personnel. All indoor commercial cannabis cultivation sites must employ at least one full-time quality assurance compliance monitor who shall not hold a commercial cannabis license or have an ownership interest in a commercial cannabis licensee or the premises of a commercial cannabis licensee.
9. 
Renewable Energy Requirements. All indoor commercial cannabis cultivation operations must satisfy all electrical needs for the operation from renewable energy sources.
10. 
Security Plan Requirements for Indoor Commercial Cannabis Cultivation Sites. All indoor commercial cannabis cultivation sites must implement and maintain a security plan and surveillance system that complies with the requirements outlined in Section 20.410.010 herein.
11. 
Fire Safety Plan Requirements. All indoor commercial cannabis cultivation sites must comply with the provisions of a fire safety plan ensuring compliance with all applicable Fire Code and Building Code requirements prepared by a third-party engineer and approved by the City.
12. 
Liquid or Solid Wastes. Operators shall not discharge liquids and solids of any kind, whether directly or indirectly, into a public or private body of water, sewage system, watercourse, or into the ground, except in compliance with applicable regulations of the California Regional Water Quality Control Board.
E. 
Operating Agreement. The City shall require indoor commercial cannabis cultivation operations to enter into an operating agreement with the City, pursuant to Section 20.410.009 herein.
(Ord. 1548 § 2, 2017; Ord. 1554 § 2, 2018)
Commercial cannabis manufacturing is permitted in the City subject to the following requirements:
A. 
Zones Where Permitted. Commercial cannabis manufacturing activity shall not be permitted anywhere in the City except east of Highway 101 in the following zoning district: Mixed Industrial (MI).
B. 
Conditional Use Permit Required. Commercial cannabis manufacturing activity is only permitted in the zoning districts specified above with a conditional use permit approved by the Planning Commission.
C. 
Distance Requirements. Commercial cannabis manufacturing sites must be located in the zoning districts listed in subsection A. Commercial cannabis manufacturing must also be located a minimum of 600 feet from residential uses, schools, day care centers and youth centers. The terms “school,” “day care center” and “youth center” shall have the same meaning as in State laws related to cannabis.
D. 
Operational Requirements.
1. 
Operator Permits. All cannabis manufacturing operations must obtain and maintain a valid operator permit issued by the City pursuant to Section 20.410.009 prior to commencing any commercial cannabis activity for which a State cannabis license is required.
2. 
Compliance with Law. All cannabis manufacturing activities must be conducted in accordance with all applicable State laws and regulations, as may be amended from time to time, and all applicable local laws and regulations.
3. 
Visibility. All cannabis, cannabis products, and any aspect of the manufacturing of cannabis that indicates the type of product(s) being manufactured inside shall not be visible from the public right-of-way, exterior of the structure, and/or vehicle(s) where those commercial cannabis activities take place.
4. 
Odor Control. Operators must install and maintain, in good working-order, air treatment or other ventilation systems to prevent odors generated from the manufacture of cannabis and cannabis products from being detected within 10 feet of the structure in which commercial cannabis activity occurs.
5. 
Volatile Solvent Extraction. If a manufacturing process utilizes volatile solvents, then it is only permitted if it is conducted exclusively within a closed-loop system that meets all of the following requirements:
a. 
The system uses only solvents that are recognized as safe pursuant to the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Section 301 et seq.).
b. 
The system is designed to recapture and contain solvents during the manufacturing process, and otherwise prevent the off-gassing of solvents into the ambient atmosphere to mitigate the risks of ignition and explosion during the manufacturing process.
c. 
A licensed engineer certifies that the system was commercially manufactured, safe for its intended use, and built to codes of recognized and accepted good engineering practices, including, but not limited to, the American Society of Mechanical Engineers (ASME), the American National Standards Institute (ANSI), Underwriters Laboratories (UL), the American Society for Testing and Materials (ASTM), or OSHA Nationally Recognized Testing Laboratories (NRTLs).
d. 
The system has a certification document that contains the signature and stamp of a professional engineer and the serial number of the extraction unit being certified and such document is provided to the City.
6. 
Quality Control Personnel. All commercial cannabis manufacturing sites must employ at least one full-time quality assurance compliance monitor who shall not hold a commercial cannabis license or have an ownership interest in a commercial cannabis licensee or the premises of a commercial cannabis licensee.
7. 
Standard Operating Procedures. All commercial cannabis manufacturing sites must establish standard operating procedures and batch records that comply with current best manufacturing practices and applicable State laws and regulations.
8. 
Labeling. All finished cannabis products must be labeled in compliance with applicable State laws and regulations.
9. 
Child-Resistant Packaging. All cannabis products must be packaged in child-resistant containers prior to leaving the commercial manufacturing site in compliance with applicable State law and regulations.
10. 
Security Plan Requirements for Cannabis Manufacturing Sites. All commercial cannabis manufacturing sites must implement and maintain a security plan and surveillance system that complies with the requirements outlined in Section 20.410.010 herein.
11. 
Fire Safety Plan Requirements. All commercial cannabis manufacturing sites must comply with the provisions of a fire safety plan ensuring compliance with all applicable Fire Code and Building Code requirements prepared by a third-party engineer and approved by the City.
12. 
Liquid or Solid Wastes. Operators shall not discharge liquids and solids of any kind, whether directly or indirectly, into a public or private body of water, sewage system, watercourse, or into the ground, except in compliance with applicable regulations of the California Regional Water Quality Control Board.
E. 
Operating Agreement. The City shall require commercial cannabis manufacturing operations to enter into an operating agreement with the City, pursuant to Section 20.410.009 herein.
(Ord. 1551 § 2, 2018; Ord. 1554 § 2, 2018)
Commercial cannabis testing is permitted in the City subject to the following requirements:
A. 
Zones Where Permitted. Commercial cannabis testing activity shall not be permitted anywhere in the City except east of Highway 101 in the following zoning districts: Business Commercial (BC), Business Technology Park (BTP), Bay West Cove Specific Plan District (BWCSPD), Gateway Specific Plan (GSPD), Mixed Industrial (MI), and Oyster Point Specific Plan District (OPSD).
B. 
Conditional Use Permit Required. Commercial cannabis testing activity is only permitted in the zoning districts specified above with a conditional use permit approved by the Planning Commission.
C. 
Distance Requirements. Commercial cannabis testing sites must be located in the zoning districts listed in subsection A. Commercial cannabis testing sites must be located a minimum of 600 feet from residential uses, schools, day care and youth centers.
D. 
Operational Requirements.
1. 
Operator Permits. All cannabis testing operations must obtain and maintain a valid operator permit issued by the City pursuant to Section 20.410.009.
2. 
Compliance with Law. All cannabis testing activities must be conducted in accordance with all applicable State laws and regulations, as may be amended from time to time, and all applicable local laws and regulations.
3. 
Visibility. All cannabis, cannabis products, and any aspect of the testing of cannabis that indicates the type of product(s) being tested inside shall not be visible from the public right-of-way, exterior of the structure, and/or vehicle(s) where those commercial cannabis activities take place.
4. 
Odor Control. Operators must install and maintain, in good working-order, air treatment or other ventilation systems to prevent odors generated from the testing of cannabis and cannabis products from being detected within 10 feet of the structure in which commercial cannabis activity occurs.
5. 
Quality Control Personnel. All commercial cannabis testing sites must employ at least one full-time quality assurance compliance monitor who shall not hold a commercial cannabis license or have an ownership interest in a commercial cannabis licensee or the premises of a commercial cannabis licensee.
6. 
Testing Procedures. All testing activities must be conducted in accordance with industry-best practices and applicable State laws and regulations.
7. 
Testing Devices. All testing devices used at a testing site must be UL listed, or its equivalent, or be otherwise approved for its intended use by the City’s Building Official, Fire Department or other person as designated by the Chief Planner.
8. 
Accreditation Notification. All testing sites must maintain proper accreditation where applicable and must notify the Chief Planner, or designee, and the State Department of Public Health within one business day after the receipt of notice that the facility’s accreditation has been denied, suspended, or revoked.
9. 
Security Plan/Surveillance System. All commercial testing sites must implement and maintain a security plan and surveillance system that complies with the requirements outlined in Section 20.410.010 herein.
10. 
Fire and Safety Plan Requirements. All commercial testing sites must comply with the provisions of a fire safety plan ensuring compliance with all applicable Fire Code and Building Code requirements prepared by a third-party engineer and approved by the City.
11. 
Liquid or Solid Wastes. Operators shall not discharge liquids and solids of any kind, whether directly or indirectly, into a public or private body of water, sewage system, watercourse, or into the ground, except in compliance with applicable regulations of the California Regional Water Quality Control Board.
E. 
Operating Agreement. The City shall require commercial cannabis testing operations to enter into an operating agreement with the City, pursuant to Section 20.410.009 herein.
(Ord. 1551 § 2, 2018; Ord. 1554 § 2, 2018)
Cannabis distribution operations are permitted in the City subject to the following requirements:
A. 
Zones Where Permitted.
1. 
Distribution Permitted. Cannabis distribution operations are permitted to distribute to other properly licensed and permitted commercial cannabis operations throughout the City and to other jurisdictions where such activities are permitted.
2. 
Distribution Facility. Fixed locations for distribution facilities are prohibited everywhere in the City except east of Highway 101 in the following zoning district: Mixed Industrial (MI).
B. 
Conditional Use Permit Required. Distribution facilities are only permitted in the zoning districts specified above with a conditional use permit approved by Planning Commission.
C. 
Distance Requirements. Cannabis distribution operation sites must be located a minimum of 600 feet from residential uses, schools, day care and youth centers.
D. 
Operational Standards.
1. 
Scope of Permitted Service.
a. 
Types of Services. Operators may provide storage-only services, storage and distribution services, and/or distribution-only services.
b. 
Types of Customers. Operators may only provide the services outlined in subsection (D)(1)(a) to properly licensed and permitted cultivators, manufacturers, testers, retailers, or other distributors.
2. 
Operator Permits. All cannabis distribution operations must obtain and maintain a valid operator permit issued by the City pursuant to Section 20.410.009.
3. 
Compliance with Law. All cannabis distribution activities must be conducted in accordance with all applicable State laws and regulations, as may be amended from time to time, and all applicable local laws and regulations.
4. 
Visibility. All cannabis, cannabis products, and any aspect of the distribution of cannabis that indicates the type of product(s) being distributed shall not be visible from the public right-of-way, exterior of the structure, and/or vehicle(s) where those commercial cannabis activities take place.
5. 
In-Transit Requirements.
a. 
Distribution vehicles may only travel between the distribution facility location and the drop-off destinations while transporting cannabis and/or cannabis products.
b. 
Only operators and/or employees of operators may be present in the distribution vehicles while transporting cannabis or cannabis products.
c. 
All drivers shall carry valid identification and proof of employment at a permitted distribution facility.
d. 
All drivers shall carry an inventory log of cannabis and cannabis products being transported with the name and address of the ultimate destination for each unit of cannabis inventory.
6. 
Vehicle Registration with City Police Department. All distribution vehicles must be registered with the City Police Department.
7. 
Fire Safety Plan. All commercial distribution facility sites must comply with the provisions of a fire safety plan ensuring compliance with all applicable Fire Code and Building Code requirements prepared by a third-party engineer and approved by the City.
8. 
Recordkeeping Requirements. Operators shall keep and maintain the following records:
a. 
All distribution vehicle maintenance records.
b. 
All distribution vehicle ownership records.
c. 
All shipping manifests for completed and in-transit deliveries.
d. 
A contemporaneous inventory log.
e. 
Distribution log including location, time and driver.
f. 
Quality-assurance details for all cannabis and cannabis products stored and/or delivered by operator.
g. 
A log of any destruction or loss of any cannabis and/or cannabis products.
h. 
These records may be inspected by any officer of the City as permitted by law. Whenever possible, the inspection shall be conducted at a time and in a manner that minimizes any interference with the operation of the business.
i. 
These records are not maintained nor kept by the City. To the extent that any of these records come into the custody of the City, they shall be exempt from public disclosure in accordance with applicable law.
9. 
Security Plan/Surveillance System Requirements.
a. 
Security at Distribution Facility. All commercial distribution facility sites must implement and maintain a security plan and surveillance system that complies with the requirements outlined in Section 20.410.010 herein.
b. 
Security in Distribution Vehicles. All commercial distribution vehicles must comply with the following security requirements:
i. 
All cannabis and cannabis products shall be stored in a lockbox that is permanently secured to the vehicle during transport.
ii. 
All distribution vehicles shall include video and audio monitoring equipment that retains recordings for 30 days, has date and time stamped recordings, and video overlays that indicate which vehicle the recording is from.
iii. 
All distribution vehicles shall include cellular technology-based panic buttons or other emergency alert devices.
iv. 
All distribution vehicles shall be tracked by GPS locators that are monitored at the fixed distribution facility and retain logs of GPS locations for one year.
v. 
All distribution vehicles must be plainly marked and not include any overt or obvious indications of the products being distributed.
E. 
Operating Agreement. The City shall require commercial cannabis distribution operations to enter into an operating agreement with the City, pursuant to Section 20.410.009 herein.
(Ord. 1551 § 2, 2018; Ord. 1554 § 2, 2018)
Delivery-only operations are permitted in the City subject to the following requirements:
A. 
Zones Where Permitted.
1. 
Delivery Permitted. Commercial delivery of cannabis to a fixed address within City limits is permitted throughout the City except at the following locations: schools, day care centers, youth centers, public parks and open space, public buildings, eating or drinking establishments. All deliveries must be to a fixed address.
2. 
Fixed Delivery-Only Business Locations Permitted. Fixed locations for delivery-only cannabis businesses are prohibited everywhere in the City except east of Highway 101 in the following zoning districts: Business Commercial (BC), Business Technology Park (BTP), and Mixed Industrial (MI).
B. 
Conditional Use Permit Required. Fixed locations for delivery-only cannabis businesses are only permitted in the zoning districts specified above with a conditional use permit approved by Planning Commission.
C. 
Distance Requirements. Fixed delivery-only cannabis businesses shall be sited a minimum of 600 feet from residential uses, schools, day care centers and youth centers.
D. 
Operational Standards.
1. 
Operator Permits. All delivery-only cannabis operations must obtain and maintain a valid operator permit issued by the City pursuant to Section 20.410.009.
2. 
Compliance with Law. All delivery-only cannabis activities must be conducted in accordance with all applicable State laws and regulations, as may be amended from time to time, and all applicable local laws and regulations.
3. 
Visibility. All cannabis, cannabis products, and any aspect of the delivery of cannabis that indicates the type of product(s) being delivered shall not be visible from the public right-of-way, exterior of a structure, and/or vehicle(s) where those commercial cannabis activities take place.
4. 
All fixed locations for delivery-only operations must comply with the provisions of a fire safety plan ensuring compliance with all applicable Fire Code and Building Code requirements prepared by a third-party engineer and approved by the City.
5. 
Security in Vehicle.
a. 
All cannabis and cannabis products shall be stored in a lockbox that is permanently secured to the vehicle during transport.
b. 
All delivery vehicles shall include video and audio monitoring equipment that retains recordings for 30 days, has date and time stamped recordings, and video overlays that indicate which vehicle the recording is from.
c. 
All delivery vehicles shall include cellular technology-based panic buttons or other emergency alert devices.
d. 
All delivery vehicles shall be tracked by GPS locators that are monitored at the fixed delivery-only cannabis business location and retain logs of GPS locations for one year.
e. 
All delivery vehicles must be plainly marked and not include any overt or obvious indications of the products being distributed.
6. 
Security at Delivery-Only Business Locations. All delivery-only business location sites must implement and maintain a security plan and surveillance system that complies with the requirements outlined in Section 20.410.010 herein.
7. 
In-Transit Requirements.
a. 
Delivery vehicles may only travel between the delivery business locations and drop-off destinations while transporting cannabis and/or cannabis products.
b. 
Deliveries are only permitted during the hours specified under State law and/or regulations.
c. 
Only operators and/or employees of operators may be present in the delivery vehicle while transporting cannabis or cannabis products.
d. 
All drivers shall carry valid identification and proof of employment at a permitted delivery facility.
e. 
All drivers shall carry an inventory log of cannabis and cannabis products being transported.
8. 
Vehicle Registration with City Police Department. All delivery vehicles must be registered with the City Police Department.
9. 
Recordkeeping Requirements. Operators shall keep the following records:
a. 
All delivery vehicle maintenance records.
b. 
All delivery vehicle ownership records.
c. 
All shipping manifests for completed and in-transit deliveries.
d. 
A contemporaneous inventory log.
e. 
Delivery log including location, time and delivery driver.
f. 
Quality-assurance details for all cannabis and cannabis products stored and/or delivered by operator, destruction or loss of any cannabis and/or cannabis products.
E. 
Operating Agreement. The City shall require delivery-only operations to enter into an operating agreement with the City, pursuant to Section 20.410.009 herein.
(Ord. 1551 § 2, 2018)
A. 
Operator Permit Required. No person shall engage in commercial cannabis activity or operate a commercial cannabis business pursuant to this section without possessing a valid operator permit from the City and without possessing all other approvals or licenses that may be required pursuant to State law and regulations.
1. 
Additional permits or entitlements may be required depending on construction or improvements necessary for a building or site.
2. 
Regardless of the number of sites zoned for commercial cannabis operations in the City, the total number of commercial cannabis operator permits granted for each State license type may be established or limited by City Council Resolution.
3. 
The City may refuse to issue any discretionary or ministerial permit, license, variance or other entitlement, which is sought pursuant to this section, including zoning clearance for a building permit, where the property upon which the use or structure is proposed is in violation of the South San Francisco Municipal Code, or any other local, State or Federal law.
4. 
No property interest, vested right, or entitlement to receive a future permit to operate a commercial cannabis use shall ever inure to the benefit of such operator permit holder, as such permits are revocable. Operator permits issued pursuant to this section are specific to the operator, do not run with the land and are not transferable.
B. 
Permit Types. Prior to engaging in any commercial cannabis business, individuals must obtain an operator permit from the City corresponding to the category of activity or enterprise. The following permit types are available in the City:
1. 
Commercial cannabis manufacturing.
2. 
Commercial testing permit.
3. 
Indoor commercial cannabis cultivation permit.
4. 
Commercial cannabis distribution permit.
5. 
Commercial cannabis delivery-only permit.
C. 
Operator/Permit Holder Qualifications. All operator permit holders must meet the following minimum qualifications. The City reserves the right to require additional qualifications through the operator permit application procedures.
1. 
Operator permit holders and all employees and agents of said commercial cannabis business must be 21 years of age or older.
2. 
Operator permit holders and all employees and agents of said commercial cannabis business shall be subject to a background search by the California Department of Justice and local law enforcement.
3. 
Operator permits for commercial cannabis uses shall not be issued to any operators who have been convicted of a violent felony or any operators that have employees or agents that have been convicted of a violent felony. In addition, permits for commercial cannabis uses shall not be issued to operators (or operators that have employees or agents) who have been convicted of crimes (whether felony or misdemeanor) that involve crimes of moral turpitude.
4. 
Operator permit holders must meet the minimum qualifications established by this chapter and by the State for the applicable State license type.
D. 
Operator Permit Application. Applicants must submit applications to the Finance Director. Any confidential information submitted by applicants pursuant to this Section shall be marked as such. Confidential information submitted to the City may be withheld from public disclosure in accordance with applicable law. Applications shall include, at a minimum, the following:
1. 
Business Operators’ Information. All necessary information related to the business operator, including names, birth dates, addresses, social security numbers, relevant criminal history, relevant work history, names of businesses owned or operated by the applicant within the last 10 years, investor and/or partner information, and Assessor Parcel Number (APN) number of the parcel upon which the business will be located. Such private information will be exempt from disclosure to the public, pursuant to applicable law, to protect an individual’s privacy interests and public health and safety.
2. 
Payment of Application Fee. Applicants shall submit the application fee amount with their applications.
3. 
Property Owner Permission. Written (and notarized) permission from the property owner and/or landlord to operate a commercial cannabis use on the site.
4. 
Completed Business License Application. Each applicant shall submit proof that either the City has issued the applicant a business license or proof that the applicant has submitted a City business license application.
5. 
Volatile Solvent Closed-Loop System. If applicant is proposing a cannabis manufacturing operation utilizing volatile extraction, then plans for a closed-loop system certified and stamped by a professional engineer must be submitted.
6. 
Employee Roster. Each application shall submit an employee roster with the names and birth dates of each proposed employee of the operation with a signed authorization from each such employee authorizing the City to conduct a background check.
7. 
Operating Plan. Each application shall submit a detailed operating plan identifying the features of the proposed business.
8. 
Security plan as required under Section 20.410.010.
9. 
Site Plans. Each application shall submit a detailed site plan identifying the layout and configuration of the proposed operation, as well as any proposed improvements to the site.
10. 
Proof of Notice. Applicants must provide notice to properties and property owners within 300 feet of the boundaries of the property upon which the commercial cannabis business is proposed at least 15 days prior to submission of an application for a permit and must include proof of such notice with the operator permit application.
11. 
Air Quality. The applicant shall provide a calculation of the businesses anticipated emissions of air pollutants. The applicant shall also provide assurance that the business will comply with all rules identified by the Bay Area Quality Management District. No operator permit shall be issued to any business that would exceed the thresholds of significance established by the Bay Area Quality Management District for evaluating air quality impacts under the California Environmental Quality Act for either operation or construction. Applicants are encouraged to design their project so as to minimize or avoid air pollutant emissions.
12. 
Greenhouse Gas Emissions. The applicant shall provide calculations of the anticipated greenhouse gas emissions for the operation of the business. The applicant shall further demonstrate compliance with any applicable State, regional, or local plan for the reduction of greenhouse gas emissions. No operator permit shall be granted for any business that would violate any State, regional, or local plan for the reduction of greenhouse gases, nor shall any cannabis permit be issued where the construction and/or operation of the business would exceed any applicable threshold of significance for greenhouse gas emissions under the California Environmental Quality Act.
13. 
Hazardous Materials. To the extent that the applicant intends to use any hazardous materials in its operations, the applicant shall provide a hazardous materials management plan that complies with all Federal, State, and local requirements for management of such substances. “Hazardous materials” includes any hazardous substance regulated by any Federal, State, or local laws or regulations intended to protect human health or the environment from exposure to such substances.
14. 
Water Supply. The applicant shall demonstrate to the satisfaction of the City Engineer that sufficient water supply exists for the use. To the extent any proposed use intends on relying on groundwater supplies, the applicant shall demonstrate to the satisfaction of the City Engineer that the use will not result in net groundwater depletion.
15. 
Wastewater. The applicant shall demonstrate to the satisfaction of the City Engineer that sufficient wastewater capacity exists for the proposed use. To the extent the proposed use will result in agricultural or industrial discharges to the City’s wastewater system, the applicant shall provide a plan for meeting all Federal, State, and local requirements for such discharges. A Waste Water Management Plan shall be submitted identifying the amount of wastewater, excess irrigation and domestic wastewater anticipated, pre-treatment method (when applicable), as well as disposal method.
16. 
Signed Affidavit. The property owner and applicant, if other than the property owner, shall sign the application and shall include affidavits agreeing to abide by and conform to the conditions of the permit and all provisions of the South San Francisco Municipal Code pertaining to the establishment and operation of the commercial cannabis use, including, but not limited to, the provisions of this section. The affidavit(s) shall acknowledge that the approval of the operator permit shall, in no way, permit any activity contrary to the South San Francisco Municipal Code, or any activity which is in violation of any applicable laws.
17. 
Signed Indemnity Provision. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this chapter shall not become a personal liability of any public officer or employee of the City. To the maximum extent permitted by law, operators shall defend (with counsel acceptable to the City), indemnify and hold harmless the City of South San Francisco, the South San Francisco City Council, and its respective officials, officers, employees, representatives, agents and volunteers (hereafter collectively called “City”) from any liability, damages, costs, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings, prosecutions for violations of State or Federal law, or judgments (including legal costs, attorneys’ fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) (collectively called “action”) caused, in whole or in part, by operator’s operation of a commercial cannabis business in the City or associated with any action against the City to attack, set aside, void or annul, any cannabis-related approvals and/or determinations. The City may elect, in its sole discretion, to participate in the defense of said action, and the operator shall reimburse the City for its reasonable legal costs and attorneys’ fees. Operators shall be required to agree to the above obligations in writing and submit said writing as part of the operator permit application.
E. 
Permit Issuance, Validity, Rejection of Application, Revocation, Suspension, Renewal and Transfer.
1. 
Cannabis Operator Permit Issuance. Cannabis operator permits shall require approval of Finance Director or designee. Permit applicants must meet all operator and application requirements to be considered for permit issuance.
a. 
Cannabis operator permits shall be valid for one year from the date of issuance.
b. 
The City shall not issue any cannabis operator permit until the necessary State license(s) is obtained.
c. 
No cannabis operator permit holder may be issued until the applicant obtains a conditional use permit from the Planning Commission.
d. 
No cannabis operator permit shall be issued until the operator has paid all required fees and applicable local and state taxes. Cannabis operator permit fees shall be set by resolution of the City Council.
2. 
Operator Permit Issuance Procedure. The Finance Director, or designee, may design application forms and procedures specific to each permitted license type and require inspections of proposed facilities before issuing a permit under this chapter.
a. 
Applications shall be reviewed by City staff, as designated by the Finance Director for completeness, sufficiency, and consistency with minimum qualifications. Applicants failing to meet minimum qualifications or application requirements will not be permitted to seek a conditional use permit from the Planning Commission.
b. 
Relevant City staff will engage in an inspection of the site and all delivery vehicles to ensure compliance with the requirements of this chapter.
c. 
If staff determines that an applicant meets the minimum qualifications and the application complies with all of the requirements outlined in subsection D of this section and other applicable provisions of this chapter, said operator permit application will be granted pre-clearance and the applicant will be authorized to seek a conditional use permit from the Planning Commission. The applicant must seek a conditional use permit within one year from the date pre-clearance is issued. If an applicant has not sought a conditional use permit within the one-year period, the applicant’s pre-clearance status will expire and a new application will have to be submitted in order to seek a conditional use permit. The Finance Director may, in his or her sole discretion, extend an applicant’s pre-clearance status if the Finance Director determines that there is a reasonable basis for the delay and the information contained in the initial application is still accurate.
d. 
If a pre-cleared applicant successfully obtains a conditional use permit from the Planning Commission, the applicant will be issued an operator permit. If a pre-cleared applicant fails to obtain a conditional use, the City will not issue that applicant an operator permit. Conditional use permits issued for cannabis commercial operations are valid for a maximum of five years.
3. 
Rejection of Applications/Revocation or Suspension of Operator Permit. The Finance Director, or designee, has the authority and discretion to reject, suspend or revoke any application or permit. Applicants providing false or misleading information in the permitting process will result in rejection of the application and/or nullification or revocation of any issued permit. Grounds for rejection of application or suspension/revocation of permit, include, but are not limited to:
a. 
Providing incomplete, late, or unresponsive applications.
b. 
Making false or misleading statements to the City.
c. 
Any owner, employee, or agent having been convicted of a violent felony or crime of moral turpitude.
d. 
Any owner has had a cannabis-related license or approval revoked from another jurisdiction.
e. 
Failure to comply with any provisions of this chapter, the Zoning Code, State law, or any other applicable laws or regulations.
f. 
Unpaid fees, fines, or administrative penalties.
g. 
Facts or circumstances exist which indicate that the operation does or would very likely constitute a threat to public health, safety and/or welfare.
h. 
Failure to obtain the necessary planning approvals or revocation of said planning approval in accordance with this chapter and the Zoning Code.
i. 
The operation as proposed would violate any provision of State or local laws or regulations.
j. 
Failure to implement and maintain a Security Plan in conformance with Section 20.410.010.
k. 
Failure to implement and maintain a Fire Safety Plan in conformance with this chapter.
l. 
The applicant has engaged in unlawful, fraudulent, unfair or deceptive business acts or practices.
m. 
The applicant’s State license for commercial cannabis operations is suspended or revoked. The City shall not reinstate the permit until documentation is received showing that the State license has been reinstated or reissued. It shall be up to the City’s discretion whether the City reinstates any permit.
n. 
State law permitting the use for which the permit was issued is amended or repealed resulting in the prohibition of such use, or the City receives credible information that the Federal government will commence enforcement measures against such businesses and/or local governments that permit them.
4. 
Renewal. Operators must renew operator permits each year to continue operating in the City. The Finance Director shall have the authority and discretion to design renewal application procedures. Any renewal application shall require a site and vehicle inspection and submission of all of the information specified in subsection D of this section and approval of said application in accordance with the provisions of this chapter.
5. 
Transfer. Operator permits are personal to the operator and are non-transferrable. In the event that an operator sells, disposes of or otherwise conveys a cannabis business in the City, the purchaser or successor-in-interest shall obtain a new operator permit from the City prior to commencing operations. Purchasers and/or successors-in-interest are not required to obtain new conditional use permits for existing cannabis businesses provided that the transfer of the business occurs during the five-year term of the conditional use permit.
F. 
Operating Agreement. The City shall require an operating agreement as a condition of receiving an operator’s permit. Such operating agreement shall set forth the terms and conditions under which the commercial cannabis activity will operate, that are in addition to the requirements of the South San Francisco Municipal Code. The terms and conditions may include, but are not limited to, the payment of fees, charges, and contributions as mutually agreed, and any such other terms which promote the public health, safety, and welfare and mitigate negative impacts of such use.
G. 
Appeals. Applicants/operators may appeal the denial, suspension or revocation of a cannabis operator permit by filing a written notice of appeal with the City Manager or designee within 10 days after receipt of a denial or order of suspension or revocation from the Finance Director. The City Manager or designee shall hold a hearing within 30 days of receiving the request for appeal where the applicant and the City may present evidence regarding the denial, suspension or revocation of the permit. The City Manager or designee shall render his or her decision in writing on the appeal within 45 days after the date of the hearing. Said decision shall be final and no appeal may be taken to the City Council.
(Ord. 1551 § 2, 2018; Ord. 1554 § 2, 2018)
A. 
Approval of Security/Surveillance Plan. All applicants for commercial cannabis operator permits must submit a security plan demonstrating compliance with the provisions of this section. Prior to the issuance of any permit, the Chief of Police, or designee, must approve the security plan. Said plan must, in the Chief’s determination, demonstrate the applicant’s ability to operate a safe operation that does not encourage criminal activity and prevents the theft or diversion of cannabis.
B. 
Mandatory Elements of the Security Plan. To be eligible for approval, the security plan must provide for all of the following components:
1. 
Minimum Building Security Standards. Building security standards in compliance with Chapter 15.48 of the South San Francisco Municipal Code.
2. 
Robbery Alarm System. Installation and maintenance of a central station silent robbery alarm system that is hidden from plain view, but easily accessible to authorized personnel. Alarm systems shall be installed and maintained in compliance with Chapter 6.60 of the South San Francisco Municipal Code.
3. 
Burglary Alarm System. Installation and maintenance of a central station silent intrusion alarm system. The silent intrusion alarm system shall include contact sensors covering each entrance/exit, each skylight, as well as interior motion sensors. Alarm systems shall be installed and maintained in compliance with Chapter 6.60 of the South San Francisco Municipal Code.
4. 
Security Guards. Employment of at least one uniformed security guard present during normal business hours to include one-half hour before and after normal business hours. The security guard shall be charged with preventing violations of the law, reporting suspicious persons, vehicles, circumstances and all criminal offenses to the Police Department. Security guards shall be uniformed in such a manner so as to be readily identifiable as a security guard by the public and shall be duly licensed as a security guard as required by applicable provisions of the State law and per Chapter 6.62 of the South San Francisco Municipal Code. The sole purpose of the security guard shall be to provide for the protection and safety of the business and its authorized personnel and said guard shall not be required to perform additional, non-security related duties within the business. The Chief of Police reserves the right to review the number of guards and may require that the number of guards be increased or decreased as necessary.
5. 
Recordkeeping/Product Tracking. Implementation of a recordkeeping/product tracking system to ensure that all cannabis is accounted for and any loss or theft is easily discoverable in accordance with State law. These records shall be kept for at least one year.
6. 
Employee Roster. Operator must keep a current and updated employee roster on-file with the Police Department with the names and addresses of all Operator’s employees.
7. 
Video Surveillance System. Installation of a video surveillance system meeting the following criteria:
a. 
Cameras that record at a resolution of 1280 x 720 or higher;
b. 
Cameras that record in accurate color with a surveillance monitor that displays in accurate color;
c. 
Sufficient storage capacity to retain data from all cameras for a period of 30 days;
d. 
An on-site monitor no smaller than 15 diagonal inches for viewing of images;
e. 
The ability to view and record footage at the same time;
f. 
Accurate time and date stamps on recorded video images;
g. 
Locked and secure location of system to prevent destruction or tampering from customers or employees. Access to the system shall be restricted to management;
h. 
Cameras with clear and unobstructed view of the desired coverage areas;
i. 
A dedicated and secured power source to prevent intentional or accidental deactivation; and
j. 
Separate cameras dedicated to each processing area, loading or shipping area, each entrance/exit of the business, and the parking lot. The cameras shall be placed in locations that allow a clear, unobstructed view of the desired locations and shall be periodically evaluated to ensure compliance. Enough cameras shall be placed at each location to cover the entirety of the intended area to be captured.
8. 
Prohibition on External Signage. The business shall not display any external signage or other visual clues as to the nature of the business, including, but not limited to, green lights, depictions of marijuana leaves, “420,” or other common terms or symbols associated with cannabis.
9. 
Prohibition of On-Site Sales/Public Access. No access by the general public may occur. No on-site sales to any customers may occur.
10. 
Prohibition on Delivery Vehicle Signage. No pickup or delivery vehicles may contain or depict any signage or other visual clues as to the nature of the business, including, but not limited to, green lights, depictions of marijuana leaves, “420,” or other common terms or symbols associated with cannabis.
11. 
Prohibition on Cannabis in Plain View. All cannabis, cannabis products, and any aspect of the commercial cannabis operation that indicates the type of product(s) inside shall not be visible from the public right-of-way, exterior of the structure, and/or vehicle(s) where those commercial cannabis activities take place.
12. 
Prohibition on Advertising Business Address. The business shall not identify the business address in any communications, advertisements and marketing, as required under Chapter 15 of Division 10 of the California Business and Professions Code. The business may only display the business name and license number.
13. 
Unauthorized Access. All entrances to the building shall remain locked at all times to prevent unauthorized access from the exterior. The business shall utilize an electronic card key system to allow access for authorized personnel. The system shall record and log all entries/exits from the premises and such records must be retained for one year by the system.
14. 
Security of Loading/Shipping Areas. Loading/shipping areas shall have a double security door design that securely isolates the loading/shipping area from the main warehouse/processing area of the building when pickups or deliveries are made.
15. 
Drop Safes. Each cannabis business shall install, maintain, and use a time delay drop safe to store cash and limit the risk of robbery. Time delayed drop safes shall be rated at UL TL-15 or higher.
16. 
Odor Control System. The business shall install, maintain, and use an odor control system to prevent cannabis odors from escaping and being detected within 10 feet outside the building.
C. 
Implementation and On-Going Compliance. All businesses must implement and maintain the security systems and equipment required by this chapter in strict accordance with the approved security plan prior to commencing operations. If a business subject to this chapter does not meet or maintain the security standards required by this chapter, the business must take immediate steps to bring the security requirements into conformance with the provisions of this chapter. Failure to comply with the requirements of an approved security plan is grounds for revocation of a permit and cessation of operations.
(Ord. 1551 § 2, 2018)
The establishment, maintenance or operation of a storefront cannabis retail establishment, microbusiness, manufacturing facility, testing facility, distribution facility, delivery-only operation, indoor commercial cultivation operation, or outdoor cultivation of cannabis in violation of or in non-compliance with any of the requirements of this chapter or applicable provisions of State law or the Zoning Code or South San Francisco Municipal Code, is declared a public nuisance and, in addition to or in lieu of prosecuting a criminal action, shall be subject to any enforcement or abatement remedies available under the law and/or the City’s Municipal Code. In addition, the City may enforce the violation of this chapter by means of civil enforcement through a restraining order, a preliminary or permanent injunction or by any other means authorized by the law.
(Ord. 1551 § 2, 2018)
In the event that any provision of this chapter is in conflict with State law or regulations, as may be amended from time to time, said State law or regulation shall control to the extent that said State law or regulation preempts local regulations.
(Ord. 1551 § 2, 2018)