APPROVED AS TO FORM AND LEGALITY
___________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
ORDINANCE NO. ________________C.M.S.
INTRODUCED BY THE ECONOMIC AND WORKFORCE DEVELOPMENT
DEPARTMENT
ORDINANCE AMENDING THE OAKLAND MUNICIPAL CODE BY:
(1) REMOVING THE LIMIT ON THE NUMBER OF SPECIAL EVENT
PERMITS INVOLVING THE SALE AND/OR CONSUMPTION OF
CANNABIS; (2) ADDING A PROVISION FOR THE TRANSFER OF A
CANNABIS PERMIT ISSUED TO AN EQUITY APPLICANT TO A
GENERAL APPLICANT ; (3) MAKING ADMINISTRATIVE CHANGES
ON THE PERMITTING OF COMMERCIAL CANNABIS ACTIVITY; AND
(4) MAKING CALIFORNIA ENVIRONMENTAL QUALITY ACT
FINDINGS
WHEREAS, the voters of the State of California approved Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) in November 2016; and
WHEREAS, Proposition 64 legalized the recreational use of cannabis in California for people 21 and older; and
WHEREAS, the City of Oakland (City) conducted the nation’s first race and equity analysis of the cannabis industry and adopted the nation’s first Equity Program in the Spring of 2017 with the goal of promoting equitable ownership and employment opportunities in the cannabis industry to address the disproportionate impacts of the war on drugs in marginalized communities of color; and
WHEREAS, seven years after the passage of Proposition 64, the regulated cannabis industry needs additional economic opportunities and regulatory flexibility; and
WHEREAS, the total gross receipts of Oakland cannabis operators have declined for three consecutive years, from $271,585,326.41 (two hundred and seventy-one million five hundred and eighty-five thousand three hundred and twenty-six dollars and forty-one cents) in 2021 to $201,050,628.58 (two hundred and one million fifty thousand six hundred and twenty- eight dollars and fifty-eight cents) in 2023; and
2 WHEREAS, under the City’s regulatory and policy framework for cannabis businesses, Equity Applicants, meaning cannabis business permit applicants who are Oakland residents. have an annual income at or less than eighty (80) percent Oakland average median income (AMI) adjusted for household size, and live in certain police area beats, are eligible for certain City benefits including grants and loans, and fee exemptions; and
WHEREAS, Equity Applicants in particular need further support as they are disproportionately impacted from the challenges of operating in the regulated market, which has included burglaries that deprive businesses of capital, product, and secure facilities; and
WHEREAS, following years of interactions with cannabis business operators, surveys of Equity Applicants, and input from the Cannabis Regulatory Commission on how best to expand opportunities and promote an equitable cannabis industry in the City of Oakland, City staff drafted this proposed legislation to expand opportunities for Oakland’s cannabis industry through three strategies; and
WHEREAS, these three strategies are:(1) Authorizing Equity Applicants to convert unpaid loans to grants; (2) allowing for the transfer of permits from Equity Applicants to general applicants; and (3) increasing the number of cannabis Special Event permits where the sale or consumption of cannabis occurs ; and
WHEREAS, authorizing Equity Applicants to transfer their cannabis business permits or “local authorization” status to general applicants after a period of time will help avoid or deter the immediate “flipping” of permits from Equity Applicants to general applicants, while providing equity applicants with the same options general applicants have to sell their business or take on additional investors in exchange for less ownership interest in their business after an initial period of operation; and
WHEREAS, increasing the number of cannabis Special Events where the consumption or sale of cannabis may occur will allow the City to approve repeat events at certain locations that are conducive to cannabis events and provide more economic opportunities for equity applicants to engage with consumers without the high overhead of a brick-and-mortar dispensary; and
WHEREAS, At the October 5, 2023 Cannabis Regulatory Commission (CRC), the CRC unanimously approved forwarding staff’s legislation to the City Council for its consideration; and
WHEREAS, state law authorizes local jurisdictions to approve cannabis Special Events and refers to them as “temporary cannabis events. ”(See Business and Professions Code Section 26200(e)(1)); and
WHEREAS, state law restricts cannabis consumption at a temporary cannabis event to persons at least 21 years of age or older (See Business and Professions Code Section 26200 (e)(5) and Cal. Code Regs. Title. 16, Section 5603(e)); and
3 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OAKLAND DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals. The City Council of the City of Oakland hereby determines that the preceding recitals are true and correct and an integral part of the Council’s decision to enact this legislation, and hereby adopts and incorporates them into this ordinance.
SECTION 2. Amendment of Oakland Municipal Code Section 5.80.010
Oakland Municipal Code Section 5.80.0 10 is repealed and reenacted as set forth below (chapter and section numbers and titles are indicated in bold type ; additions are indicated by underscoring and deletions are indicated by strike -through type; portions of the regulations not cited or not shown in underscoring or strike-through type are not changed):
5.80.010 Definitions.
The following words or phrases, whenever used in this chapter, shall be given the following definitions:
A. "Applicant" shall mean any individual or business entity that applies for a permit required by this chapter.
B. "Cannabis" or "Marijuana" shall have the same definition as Business and Professions Code Section 19300.5(f), as may be amended, which, as of March 2016, defines "cannabis" as all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound. Manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Health and Safety Code Section 11018, "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seeds of the plant which is incapable of germination. "Cannabis" does not mean "industrial hemp" as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code.
C. "Cannabis Dispensary" or "Dispensary Retailer” or “Retailer” shall mean a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale or in exchange for entrance to an event, to either adults over twenty-one (21) years of age, qualified patients or primary caregivers. This includes an establishment that delivers cannabis and cannabis products as part of a retail sale.
D. "City Administrator" means the City Administrator of the City of Oakland or his/her designee.
4 E. "Collective" means any association, affiliation, or establishment jointly owned and operated by its members, which facilitates the collaborative efforts of qualified patients and primary caregivers, as described in State law.
F. "Commercial Zone" means any zone in the Planning Code with a name that contains the words "Commercial Zone."
G. "Delivery" means the commercial transfer of cannabis or cannabis products from a dispensary to adults over twenty-one (21) years of age, a primary caregiver or qualified patient as defined in Section 11362.7 of the Health and Safety Code, or a testing laboratory. "Delivery" also includes the use by a dispensary of any technology platform that enables adults over twenty-one (21) years of age, qualified patients or primary caregivers to arrange for or facilitate the commercial transfer by a licensed dispensary of cannabis or cannabis products.
H. "Delivery Only Dispensary" “Non-storefront retailer” means a cannabis retailer that provides cannabis or cannabis products to adults over twenty-one (21) years of age, primary caregivers or qualified patients as defined in Section 11362.7 of the Health and Safety Code exclusively through delivery.
I. "Equity Applicant" shall mean an Applicant whose ownership/owner:
1. Is an Oakland resident; and
2. In the last year, had an annual income at or less than 80 percent of Oakland Average Medium Income (AMI) adjusted for household size; and
3. Either (i) has lived in any combination of Oakland police beats 2X, 2Y, 6X, 7X, 19X, 21X, 21Y, 23X, 26Y, 27X, 27Y, 29X, 30X, 30Y, 31Y, 32X, 33X, 34X, 5X, 8X and 35X for at least ten (10) of the last twenty (20) years or (ii) was arrested after November 5, 1996 and convicted of a cannabis crime committed in Oakland, California.
J. "General Applicant" shall mean an Applicant other than an Equity Applicant.
K. "Industrial Zone" means any zone in the Planning Code with a name that contains the words "Industrial Zone."
L. "Medical Marijuana" or "Medical Cannabis" means marijuana authorized in strict compliance with Health and Safety Code Sections 11362.5, 11362.7 et seq., as such sections may be amended from time to time.
M. "Ownership" shall mean the individual or individuals who:
(i) With respect to for-profit entities, including without limitation corporations, partnerships, limited liability companies, has or have an aggregate ownership interest (other than a security interest, lien, or encumbrance) of fifty (50) percent or more in the entity.
(ii) With respect to not for-profit entities, including without limitation a non-profit corporation or similar entity, constitutes or constitute a majority of the Board of Directors.
(iii) With respect to collectives, has or have a controlling interest in the collective's governing body.
5 N. "Parcel of Land" means a single contiguous parcel of real property as identified by the county assessor's parcel number (APN), which is used to identify real property and its boundaries for legal purposes.
O. "Premises" shall have the same definition as California Business and Professions Code Section 26001, as may be amended, which as of March 2018, defines "Premises" as "the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted" but shall be construed to mean the portion of a property or structure where the commercial cannabis activity will be or is conducted.
P. "Primary Caregiver" shall have the same definition as California Health and Safety Code Section 11362.7, as may be amended, which, as of March 2016, defines "Primary Caregiver" as an individual designated by a qualified patient or by a person with an identification card, who has consistently assumed responsibility for the housing, health, or safety of that patient or person, and may include a licensed health care facility, a residential care facility, a hospice, or a home health agency as allowed by California Health and Safety Code Section 11362.7(d)(1)—(3).
Q. "Qualified Patient" shall have the same definition as California Health and Safety Code Section 11362.7 et seq., as may be amended, which, as of March 2016, means a person who is entitled to the protections of California Health and Safety Code Section 11362.5. For purposes of this Chapter, qualified patient shall include a person with an identification card, as that term is defined by California Health and Safety Code Section 11362.7 et seq.
R. "Principal Street" means on interior lots, the street that abuts a lot. On corner lots and through lots, the principal street is the street that abuts the lot that is highest on the street hierarchy as defined in the Land Use and Transportation Element of the General Plan.
Where streets have the same street hierarchy, the principal street shall be determined by the Zoning Administrator based on the street widths, traffic capacity, land uses, transit activity, bicycle and pedestrian uses, and control of intersections.
S. "Smoking" shall have the same definition as Oakland Municipal Code Chapter 8.30, which as of March 2017 means "inhaling, exhaling, burning, or carrying any lighted cigar, cigarette, weed, or other combustible substance."
T. "Youth Center" means a community or recreation facility that primarily serves persons eighteen (18) years or younger.
U. "Work/Live" means permitted uses that fall under any of the following use activity or facility types of the Oakland Planning Code: Work/live unit (as defined in Subsection
17.73.040 B. in a CIX, IG, and IO Zone); or Work/live nonresidential facilities (as defined in Chapter 17.101E in a D-CE-5 Zone); or Live/work facilities (as defined in Chapters
17.65 and 17.101E in HBX and D-CE Zone); or Work/live nonresidential facilities (as defined in Chapters 17.65 and 17.101E in a D-CE-3 or D-CE-4 Zone); or Joint work and living quarters (as defined in Section 17.102.190); or Residentially-oriented joint living and working quarters (as defined in Section 17.102.195) or such unpermitted uses that involve a work and live component.
SECTION 3. Amendment of Oakland Municipal Code Section 5.80.030
6 Oakland Municipal Code Section 5.80.0 30 is repealed and reenacted as set forth below (chapter and section numbers and titles are indicated in bold type; additions are indicated by underscoring and deletions are indicated by strike -through type; portions of the regulations not cited or not shown in underscoring or strike-through type are not changed):
5.80.030 Special Events Involving the Sale and/or Consumption of Cannabis.
No more than twelve (12) A permits for a special event, as that term is defined in Chapter
9.52, involving the sale and/or consumption of cannabis, may be issued for the same location or the same individual or entity per calendar year. Such a permits shall be issued in accordance with state law and Chapter 9.52. This provision shall take effect January 1, 2024 and expire December 31, 2024.
On or after January 1, 2025, no more than twelve permits for a special event, as that term is defined by Chapter 9.52, involving the sale and/or consumption of cannabis, may be issued for the same location or the same individual or entity per calendar year. Such a permit shall be issued in accordance with state law and Chapter 9.52.
SECTION 4. Amendment of Oakland Municipal Code Section 5.80.050
Oakland Municipal Code Section 5.80.0 50 is repealed and reenacted as set forth below (chapter and section numbers and titles are indicated in bold type ; additions are indicated by underscoring and deletions are indicated by strike -through type; portions of the regulations not cited or not shown in underscoring or strike-through type are not changed):
5.80.050 Equity Permit Program.
A. Equity Criteria. Applicant ownership/owner must satisfy the following criteria:
1. Be an Oakland resident; and
2. In the last year, have had an annual income at or less than eighty (80) percent Oakland average median income (AMI) adjusted for household size; and
3. Either (i) has lived in any combination of Oakland Police Department Beats 2X, 2Y, 6X, 7X, 19X, 21X, 21Y, 23X, 26Y, 27X, 27Y, 29X, 30X, 30Y, 31Y, 32X, 33X, 34X, 5X, 8X and 35X for at least ten (10) of the last twenty (20) years; or (ii) was arrested after November 5, 1996 and convicted of a cannabis crime committed in Oakland, California.
B. Review of Criteria.
1. Proof of Income shall be supported with federal tax returns and at least one (1) of the following documents: two (2) months of pay stubs, current Profit and Loss Statement, Balance Sheet, or proof of current eligibility for General Assistance, Food Stamps, Medical/CALWORKs, or Supplemental Security Income or Social Security Disability (SSI/SSDI)
2. Residency must be for a total of ten (10) years in any combination of the designated Oakland police beats as set forth in Section 5.80.010 H.3. A minimum of two (2) of the 7 documents listed below, evidencing ten (10) years of residency, shall be considered acceptable proof of residency. All residency documents must list the applicant's first and last name, and the Oakland residence address in the police beats set forth in Section 5.80.010 H.3:
• California driver's record; or
• California identification card record; or
• Property tax billing and payments; or
• Verified copies of state or federal income tax returns where an Oakland address within the police beats is listed as a primary address; or • School records; or
• Medical Records; or
• Banking records; or
• Oakland Housing Authority records; or
• Utility, cable or internet company billing and payment covering any month in each of the ten (10) years.
3. Proof of Conviction should be demonstrated through federal or state court records indicating the disposition of the criminal matter.
C. Assistance. Equity Applicants will be eligible for participation in the Equity Assistance program, which will include industry specific technical assistance, business ownership technical assistance, no interest business start-up loans, grants, and waivers from City permitting fees. Equity applicants who previously met the income or residency requirements under Oakland Municipal Code Section 5.80.010 may receive equity assistance program services up to eight (8) years from the initial day they were verified as an equity applicant, regardless of their current income or residency.
D. Initial Permitting Phase.
1. The period of time before the Equity Assistance Program referred to in OMC
5.80.050(C), is established, funded and implemented shall be referred to as the Initial Permitting Phase
2. At any point during the Initial Permitting Phase, a minimum of fifty (50) percent of all permits collectively issued under OMC Chapters 5.80 and 5.81 shall be issued to Equity Applicants. This excludes the permits issued to the initial eight (8) dispensaries.
3. In the Initial Permitting Phase, a General Applicant will receive the next available General Applicant permit if it serves as an Equity Incubator by providing free real estate or rent to an Equity Applicant who obtains a cannabis permit. In order to receive this permitting priority, the General Applicant must also comply with the following conditions:
a. The free real estate or rent shall be for a minimum of three (3) years. b. The Equity Applicant shall have access to a minimum of one thousand (1,000) square feet to conduct its business operations.
8 c. The General Applicant must provide any City required security measures, including camera systems, safes, and alarm systems for the space utilized by the Equity Applicant.
d. The General Applicant is otherwise compliant with all other requirements of OMC Chapter 5.80 or 5.81.
4. If a General Applicant obtains a cannabis permit utilizing the Equity Incubator priority provisions of OMC 5.80.050 D.3. and the Equity Applicant ceases its business operations, the General Applicant must:
a. Notify the City Administrator within thirty (30) days of the Equity Applicant ceasing its business operations; and
b. Re-apply for a cannabis permit subject to the permitting restrictions of this Chapter, including OMC 5.80.050 D.2.
5. Failure to notify the City Administrator, submit a new application and obtain a new cannabis permit as required under OMC 5.80.050 D. is grounds for revocation and a violation of this Chapter.
E. Transfer of Permit Issued to Equity Applicant
1. Notwithstanding OMC 5.02.070, an Equity Applicant may transfer their local authorization status or permit to a General Applicant one year after receipt of a cannabis permit or three years after submitting a cannabis permit application, whichever occurs first.
2. The City Administrator may develop regulations to implement the transfer approval process.
SECTION 5. Amendment of Oakland Municipal Code Section 5.81.060
Oakland Municipal Code Section 5.8 1.060 is repealed and reenacted as set forth below (chapter and section numbers and titles are indicated in bold type ; additions are indicated by underscoring and deletions are indicated by strike -through type; portions of the regulations not cited or not shown in underscoring or strike-through type are not changed):
5.81.060 Equity Permit Program.
A. Equity Criteria. Applicant ownership/owner must satisfy the following criteria:
1. Is an Oakland resident; and
2. In the last year, had an annual income at or less than eighty (80) perfect Oakland Average Median Income (AMI) Adjusted for household size; and
3. Either (i) has lived in any combination of Oakland Police Department Beats 2X, 2Y, 6X, 7X, 19X, 21X, 21Y, 23X, 26Y, 27X, 27Y, 29X, 30X, 30Y, 31Y, 32X, 33X, 34X, 5X, 8X and 35X for at least ten of the last twenty years or (ii) was arrested after November 5, 1996 and convicted of a cannabis crime committed in Oakland, California.
B. Review of Criteria.
9 1. Proof of Income shall be supported with federal tax returns and at least one (1) of the following documents: two (2) months of pay stubs, current Profit and Loss Statement, Balance Sheet, or proof of current eligibility for General Assistance, Food Stamps, Medical/CALWORKs, or Supplemental Security Income or Social Security Disability (SSI/SSDI)
2. Residency must be for a total of ten (10) years in any combination of the designated Oakland police beats as set forth in Section 5.81.020 J.3. A minimum of two (2) of the documents listed below, evidencing ten (10) years of residency, shall be considered acceptable proof of residency. All residency documents must list the applicant's first and last name, and the Oakland residence address in the police beats set forth in Section 5.81.020 J.3.:
• California driver's record; or
• California identification card record; or
• Property tax billing and payments; or
• Verified copies of state or federal income tax returns where an Oakland address within the police beats is listed as a primary address; or • School records; or
• Medical Records; or
• Banking records; or
• Oakland Housing Authority records; or
• Utility, cable or internet company billing and payment covering any month in each of the ten (10) years.
3. Proof of Conviction should be demonstrated through federal or state court records indicating the disposition of the criminal matter.
C. Assistance. Equity Applicants will be eligible for participation in the Equity Assistance Program, which will include industry specific technical assistance, business ownership technical assistance, no interest business start-up loans, grants, and waivers from City permitting fees. Equity applicants who no longer satisfy the income or Oakland residency restrictions outlined in the definition of an equity applicant in OMC 5.80.010 may still receive equity assistance program services up to eight (8) years from the initial date they were verified as an equity applicant.
D. Initial Permitting Phase.
1. The period of time before the Equity Assistance Program referred to in OMC
5.81.060(C) is established, funded and implemented shall be referred to as the Initial Permitting Phase
2. At any point during the Initial Permitting Phase, a minimum of fifty (50) percent of all permits collectively issued under OMC Chapters 5.80 and 5.81 shall be issued to Equity Applicants. This excludes the permits issued to the initial eight (8) dispensaries.
3. In the Initial Permitting Phase, a General Applicant will receive the next available General Applicant permit if it serves as an Equity Incubator by providing free real 10 estate or rent to an Equity Applicant who obtains a cannabis permit. In order to receive this permitting priority, the General Applicant must also comply with the following conditions:
a. The free real estate or rent shall be for a minimum of three years. b. The Equity Applicant shall have access to a minimum of 1,000 square feet to conduct its business operations.
c. The General Applicant must provide any City required security measures, including camera systems, safes, and alarm systems for the space utilized by the Equity Applicant.
d. The General Applicant is otherwise compliant with all other requirements of OMC Chapter 5.80 or 5.81.
4. If a General Applicant obtains a cannabis permit utilizing the Equity Incubator priority provisions of OMC 5.81.060 (D) (3) and the Equity Applicant ceases its business operations, the General Applicant must:
a. Notify the City Administrator within thirty (30) days of the Equity Applicant ceasing its business operations.
b. Re-apply for a cannabis permit subject to the permitting restrictions of this Chapter, including OMC 5.80.050 (D) (2).
5. Failure to notify the City Administrator, submit a new application and obtain a new cannabis permit as required under OMC 5.80.050 (D) is grounds for revocation and a violation of this chapter.
E. Transfer of Permit Issued to Equity Applicant
1. Notwithstanding OMC 5.02.070, an Equity Applicant may transfer their local authorization status or permit to a General Applicant one year after receipt of a cannabis permit or three years after submitting a cannabis permit application, whichever occurs first.
2. The City Administrator may develop regulations to implement the transfer approval process.
SECTION 6. California Environmental Quality Act. The City Council independently finds and determines that this action does not constitute a “project” within the meaning of CEQA based on: (1) CEQA Guidelines, 14 California Code of Regulations, Section 15060(c)(2) because there is no potential that the legislation will result in a direct or reasonably foreseeable indirect physical change in the environment and (2) CEQA Guidelines, 14 California Code of Regulations, Section 15378 beca use it has no potential for resulting in either a direct physical change to the environment, or a reasonably foreseeable indirect physical change in the environment. Even if this action does comprise a project for CEQA analysis, the following CEQA Guidelines, 14 California Code of Regulations, exemptions apply to this action: (1) CEQA Guidelines Section 15061(b)(3) (general rule exemption), and (2) CEQA Guidelines section 15301 (existing facilities exemption), each of which provides a separate and independent basis for CEQA clearance and when viewed together provide an overall basis for CEQA clearance. The City’s Environmental Review Officer or designee shall file a Notice of Exemption with the appropriate state agencies.
11 SECTION 7. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaini ng portions of the Chapter. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, clause or phrase thereof irrespective of the fact that one or more other sections, subsections, clauses or phrases may be declared invalid or unconstitutional
SECTION 8. Effective Date. This ordinance shall become effective immediately on final adoption if it receives six or more affirmative votes; otherwise it shall become effective upon the seventh day after final adoption.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES – FIFE, GALLO, JENKINS, KALB, KAPLAN, RAMACHANDRAN, REID, AND
PRESIDENT FORTUNATO BAS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California
Date of Attestation:
3315592v1
12 NOTICE AND DIGEST
ORDINANCE AMENDING THE OAKLAND MUNICIPAL CODE BY:
(1) REMOVING THE LIMIT ON THE NUMBER OF SPECIAL EVENT
PERMITS INVOLVING THE SALE AND/OR CONSUMPTION OF
CANNABIS; (2) ADDING A PROVISION FOR THE TRANSFER OF A
CANNABIS PERMIT ISSUED TO AN EQUITY APPLICANT TO A
GENERAL APPLICANT; (3) MAKING ADMINISTRATIVE C HANGES
ON THE PERMITTING OF COMMERCIAL CANNABIS ACTIVITY; AND
(4) MAKING CALIFORNIA ENVIRONMENTAL QUALITY ACT
FINDINGS
This Ordinance would change the City of Oakland’s permitting requirements for cannabis businesses by removing the annual limit of twelve permits for Special Events involving the sale and/or consumption of cannabis. It would also allow for the transfer of a cannabis business permit issued to an equity applicant to a general applicant. It also amends certain terms and definitions and adopts California Environmental Quality Act exemption findings. Upon final adoption on second reading this ordinance will become effective immediately if it receives six or more affirmative votes; otherwise it shall become effective upon the seventh day after final adoption.