TO: CITY COUNCIL FROM: Councilmember Maya Esparza
SUBJECT: SEE BELOW DATE: 2/15/2022
Approved Maya Esparza Date: 2/11/2022
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SUBJECT: PP21-002 - Amendment to Title 20 and Title 6 of the San José Municipal Code (Cannabis Business Zoning Ordinance and Business Licenses and Regulations) RECOMMENDATION:
Direct the City Manager to add a requirement that new applicants or renewing applicants demonstrate compliance with state law by submitting a copy of a labor peace agreement with a bona fide labor organization as part of their initial registration packet and/or annual renewal. This provision would be added to the City Manager’s Regulations for cannabis registration. If a cannabis business failed to provide the documentation, the Division of Cannabis Regulation would be unable to issue a Notice of Completed Registration
o Direct Staff to include the following definitions:
“Labor Peace Agreement” means an agreement between an Applicant and any Bona Fide Labor Organization that, at a minimum, prohibits such Bona Fide Labor Organization and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicants’ business. As part of this Agreement, an Applicant also agrees not to disrupt efforts by such Bona Fide Labor Organization to communicate with, and attempt to organize and represent, the Applicant’s employees. The agreement shall provide such Bona Fide Labor Organization access at reasonable times to areas in which the Applicants’ employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. A Labor Peace Agreement shall not mandate a particular method of election or certification of a Bona Fide Labor Organization as an Applicant’s employees’ representative.
COUNCIL AGENDA: 2/15/2022
FILE: 22-152
Item: 10.2
"Bona Fide Labor Organization" means any organization or any agency or employee representation committee or any local unit thereof in which employees participate, and exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, hours of employment or conditions of work, which labor organization is not found to be or to have been financed in whole or in part, interfered with, dominated or controlled by the employer or any employer association. Furthermore, the Bona Fide Labor Organization must currently have members in California.
Direct Staff to return to Council with language limiting each Council District to six (6) non-delivery only Cannabis Collectives/Businesses locations.
BACKGROUND
Labor Peace Agreement with a Bona Fide Labor Organization While the State is currently the enforcement arm ensuring Cannabis Collectives/Businesses enter into Labor Peace Agreements, Staff’s analysis shows limited enforcement of this requirement has led to few Cannabis Collectives/Businesses in San Jose complying with State law.
Furthermore, as noted in Staff’s memorandum, one Cannabis Collectives/Business in San Jose has already found a loophole in State law by executing a Labor Peace Agreement with an organization that is not affiliated with the American Federation of Labor and Congress of International Organization (AFL-CIO).
With the State’s limited enforcement capacity, the City must ensure Cannabis Collectives/Businesses comply with such requirements by including a copy of the labor peace agreement with a bona fide labor organization as part of their initial registration packet and/or annual renewal.
Additionally, including definitions of a “Labor Peace Agreement” and a “Bona Fide Labor Organization” provides clarity for Cannabis Collectives/Businesses while ensuring these agreements are achieving its intended goal of protecting and supporting employees of Cannabis Collectives/Businesses.
The City shall determine the Labor Peace Agreement is with a Bona Fide Labor Organization by confirming with the South Bay Central Labor Council, AFL-CIO.
Cap on Number of Cannabis Collectives/Businesses per Council District As outlined in Staff’s memorandum, the current cannabis program was intentionally drafted to limit allowable locations for Cannabis Collectives/Businesses to industrial zoned properties through requirements such as vertical integration. The City further limited allowable locations for Cannabis Collectives/Businesses by excluding certain industrial areas including the North San Jose Development Policy Boundary, the International Business Park Boundary, and the Edenvale Area Development Policy Boundary. These limitations all but required cannabis businesses to saturate certain areas within the City resulting in District 7 having over 60% of all cannabis businesses in San Jose.
In March 2019, the City Council directed Staff to present options for implementation of a cap on the number of retail Cannabis Collectives/Businesses in District 7. While some proposed limitations help address the saturation of Cannabis Collectives/Businesses in District 7, the recent policy change from measuring 150 linear feet to residential to 300 feet path of travel to residential allows for further saturation in District 7.
Our intent is to not limit allowable locations Citywide, however, capping Council Districts to 6 non-delivery only cannabis business locations will ensure District 7 is not further saturated and will enable more equitable accessibility Citywide, thus satisfying the City Council’s March 2019 direction. This action should not affect current Cannabis Collective/Business locations.