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 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.
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)
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)
The City Manager may adopt reasonable administrative procedures
necessary to implement this chapter.
(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)