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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
DRAFT
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SAN JOSE AMENDING
CHAPTER 6.88 OF TITLE 6 OF THE SAN JOSE
MUNICIPAL CODE TO ADD DELIVERY-ONLY CANNABIS
BUSINESSES; ALLOW UP TO TEN NEW CANNABIS
BUSINESSES WITH EQUITY BUSINESS OWNERS;
ALLOW CURRENT CANNABIS BUSINESSES TO
DISPENSE FROM TWO LOCATIONS; AMEND THE
CANNABIS EQUITY ASSISTANCE PROGRAM; AND
MAKE OTHER TECHNICAL, NON-SUBSTANTIVE, OR
FORMATTING CHANGES
WHEREAS, an Initial Study/Negative Declaration was prepared in conformance with the California Environmental Quality Act of 1970 (CEQA), as amended, for this Ordinance under File Number PP21-002 (the “Initial Study/Negative Declaration”); and
WHEREAS, the City Council of the City of San José is the decision-making body for this Ordinance; and
WHEREAS, this Council of the City of San José has considered, approved and adopted said Initial Study/Negative Declaration under separate Council resolution prior to taking any approval actions on this Ordinance;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN JOSE:
SECTION 1. A new section is added to Chapter 6.88 of Title 6 of the San José Municipal Code, to be numbered, entitled and to read as follows:
6.88.203 Business entity
"Business entity" means any organization or enterprise including, but not limited to, a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation, association, or nonprofit organization, if the business entity or any parent, subsidiary, or otherwise related business entity has an interest in real property in San José, or does business or plans to do business or has done business in San José at any time during the two years prior to the date the disclosure statement is required to be filed.
SECTION 2. Section 6.88.205 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
6.88.205 Cannabis Activity
Each of the following is considered a "Cannabis Activity", whether for medical or non- medical use, or both:
A. Cultivating cannabis;
B. Processing cannabis, including packaging, trimming, and/or preparing cannabis for sale or distribution;
C. Manufacturing cannabis, including extraction of Concentrated Cannabis as well as infusion of cannabis into other products;
D. Distributing cannabis;
E. S, s elling or transferring cannabis at a dispensary or retail storefront;
D.F. D, delivering cannabis; or
GE. Testing cannabis.
SECTION 3. A new section is added to Chapter 6.88 of Title 6 of the San José Municipal Code, to be numbered, entitled and to read as follows:
6.88.212.5 Delivery-Only Business
“Delivery-Only Business” means a business which only delivers cannabis and does not operate a premises or location where transfers of cannabis to customers occur.
SECTION 4. Section 6.88.213 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.213 Dispensary
"Dispensary" means the property, Location, or Premises where transfers of medical cannabis to customers occur.
SECTION 5. Section 6.88.214 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.214 Dispense
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
"Dispense" means the transfer of Non-medical Cannabis to a person age twenty-one (21) and or older, or the transfer of Medical Cannabis to a Qualified Patient age twenty- one (21) or older or Primary Caregiver age twenty-one (21) or older.
SECTION 6. Section 6.88.217.3 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.217.3 Equity Business Owner
“Equity Business Owner” means an Owner, as defined by Section 6.88.255, who meets the criteria of Section 6.88.395.B. a Cannabis Business where fifty-one percent (51%) or more of the entity applying for a Cannabis Business Registration is owned by an individual that meets the criteria of subsections (A) and (B) of Section 6.88.395.
SECTION 7. A new section is added to Chapter 6.88 of Title 6 of the San José Municipal Code, to be numbered, entitled and to read as follows:
6.88.217.4 Equity Business Partnership
“Equity Business Partnership” means a Cannabis Business where fifty-one percent (51%) or more of the entity applying for a Cannabis Business Registration is owned and controlled in aggregate by individual partners, each of whom meets the criteria of Section 6.88.395.B.
SECTION 8. A new section is added to Chapter 6.88 of Title 6 of the San José Municipal Code, to be numbered, entitled and to read as follows:
6.88.217.5 Equity Cannabis Business
“Equity Cannabis Business” means a cannabis business where fifty-one percent (51%) or more of the business’s aggregate interest, legal or equitable, or otherwise, is owned and controlled by one or more Equity Business Owners.
SECTION 9. A new section is added to Chapter 6.88 of Title 6 of the San José Municipal Code, to be numbered, entitled and to read as follows:
6.88.217.6 Financial Interest in a Commercial Cannabis Business
“Financial Interest in a Commercial Cannabis Business” shall have the same meaning as § 15004 of the California Department of Cannabis Control regulations.
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
SECTION 10. Section 6.88.225 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.225 Manager
"Manager" means an individual who, directly or indirectly, is engaged in the management of a Cannabis Business, or any business entity owning a cannabis business, or any business entity owned by a cannabis business, as may be evidenced by the individual being responsible for the establishment, organization, registration, supervision, or oversight of the operation of the business and/or its employees, which oversight may include but not be limited to the following: performing the functions of president, vice president, board member, director, owner, operating officer, financial officer, secretary, treasurer, supervisor or manager.
SECTION 11. Section 6.88.242 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.242 Medical Cannabis Transfers
"Medical Cannabis Transfers" means:
A. The transfer of Medical Cannabis from a Primary Caregiver to that Primary Caregiver'’s Qualified Patient for such consideration as is sufficient to reimburse that Primary Caregiver for the Primary Caregiver'’s out-of-pocket expenses and for the Primary Caregiver'’s services;
B. Transfers of Medical Cannabis between two (2) Cannabis Businesses; CB. Transfers of Medical Cannabis from a Cannabis Business to a person aged twenty-one (21) or older in possession of a Physician's Recommendation for Medical Cannabis or in possession of a Medical Cannabis Identification Card as defined in Section 6.88.218 of this Code or a Primary Caregiver aged twenty-one (21) or older; or
DC. Any sale, transfer or barter of Medical Cannabis in exchange for money or any other thing of value whatsoever, including without limitation, donations, labor or services rendered.
SECTION 12. Section 6.88.255 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.255 Owner
"Owner" means any person having more than a ten percent (10%) aggregate interest, NVF:TLC:CER
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
legal or equitable, or otherwise, in a Cannabis Business. For purposes of this section, “aggregate” means the total ownership interest held by a single person through any combination of individually held ownership interests in a commercial cannabis business and ownership interests in an entity that has an ownership interest in the same commercial cannabis business. When a business entity is an owner in a commercial cannabis business, all entities and individuals with a financial interest in the entity shall be disclosed to the City Manager and may be considered owners of the commercial cannabis business. This includes all entities in a multi-layer business structure, as well as the chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust, and managing members or non-member managers of the entity. Each entity disclosed as having a financial interest must disclose the identities of persons holding financial interests until only individual persons remain.
SECTION 13. Section 6.88.287 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.287 Retail Storefront
"Retail Storefront" means the property, Location, or Premises where transfers of non- medical cannabis to customers occur.
SECTION 14. Section 6.88.300 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.300 Registration Required
A. No Cannabis Business shall operate in the City of San José unless and until it has first filed a registration application in accordance with the provisions of this Chapter, has paid all fees required by this Chapter, and has received a Notice of Completed Registration from the City Manager.
B. Effective January 1, 2018 or upon issuance of licenses by the State of California, no Cannabis Business shall operate in the City of San José unless and until it has first obtained the appropriate state license or licenses for the Cannabis Activity in which it is engaged.
C. It shall be unlawful for a Person to maintain, manage, operate, conduct, control or own a Cannabis Business unless the Cannabis Business is maintained and operated in strict compliance with a Notice of Completed Registration issued by the City Manager.
D. It shall be unlawful for a Person to maintain, manage, operate, conduct, control NVF:TLC:CER
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
or own a Cannabis Business unless the Cannabis Business is maintained and operated in strict compliance with state law, including without limitation, possessing any applicable state licenses.
E. Only a Medical Cannabis Collective or Medical Cannabis Business in possession of a Notice of Completed Registration from the City of San José as of December 18, 2015 and continually registered since that date is eligible to apply for and receive registration to cultivate, dispense, or deliver Medical and Non-medical Cannabis.
F. Notwithstanding Section 6.88.300.E., up to ten (10) new cannabis businesses may be registered to equity business owners and only to conduct transfers of cannabis to customers (i.e. not eligible to engage in cultivation, processing, manufacturing, distribution or testing). Up to five of these ten (10) cannabis businesses may be dispensaries and any number of the ten (10) may be delivery only businesses.
FG. To be eligible to register, a Cannabis Business must be able to provide a cannabis marijuana business tax return evidencing payment of any applicable taxes due to the City pursuant to Chapter 4.66 of this Code and have no outstanding compliance orders under Chapter 1.14 of this Code.
SECTION 15. Section 6.88.310 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.310 Number of Locations
A. No Cannabis Business shall dispense or deliver cannabis from more than one (1) Location in the City.
CB. A Cannabis Business may have up to two (2) Cultivation Sites in the City that are separate from the Location at which cannabis is dispensed.
C. A Cannabis Business, including a Dispensary, may have up to three (3) Manufacturing Sites in the City.
D. A Cannabis Business, including a Dispensary, may have up to three (3) Distribution Sites in the City.
E. A Cannabis Business may have up to three (3) Testing Laboratories in the City.
F. A Cannabis Business may have no more than three (3) Locations in the City for any combination of Cannabis Activities.
G. A Cannabis Business shall have a Notice of Completed Registration from the City for each Cannabis Activity and for each Location, and shall also have any applicable state license for each Cannabis Activity. A Cannabis Business shall comply with the provisions of this Chapter and of Title 20 of this Code at each of its Locations.
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
A. A Cannabis Business shall have a Notice of Completed Registration from the City for each Cannabis Activity and for each Location, and shall also have any applicable state license for each Cannabis Activity at each Location.
B. A Cannabis Business shall comply with the provisions of this Chapter and of Title 20 of this Code at each of its Locations.
C. All registered locations must remain registered to, and controlled by, the registered cannabis business listed on its Registration.
D. A Cannabis Business’s number of locations shall conform to the regulations and limitations set forth in Table 6.88-310.
Table 6.88-310
Number of Cannabis Business Locations
Business
registered on or
before December
18, 2015, and
continuously
registered since
that date
Business
registered after
December 18,
2015
Notes
Cultivation Up to 2 None
Processing Up to 2 Up to 2
Manufacturing Up to 2 Up to 2
Distributing Up to 2 Up to 2
Retail Storefront or
Dispensary
Up to 2 Up to 1
Delivery Up to 1 Up to 1 1, 2, 3
Testing Up to 2 Up to 2
MAXIMUM LOCATIONS 3 3 4
Notes:
1. Cannabis shall only be delivered from a location in an Industrial Zoning district.
2. Businesses registered on or before December 18, 2015 and continuously registered since that date: No Medical Cannabis Transfers or Non-medical Cannabis Transfers from more than two (2) locations, including from any delivery location(s).
3. Businesses registered after December 18, 2015: No Medical Cannabis Transfers or Non-medical Cannabis Transfers, via delivery or otherwise, from more than 1 location.
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
4. No cannabis business shall operate at more than three (3) locations in any combination of cannabis activities.
SECTION 16. Section 6.88.320 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.320 Registration Submittal
A. Registration with the City of San José to cultivate, dispense, or deliver Medical and Non-medical Cannabis is open only to those Medical Cannabis Collectives or Medical Cannabis Businesses in possession of a valid Notice of Completed Registration from the City of San José as of December 18, 2015 and continually registered since that date.
B. Notwithstanding Section 6.88.320.A., registration with the City of San Jose to dispense or deliver Medical and Non-medical Cannabis is open to Equity Business Owners as set forth in Section 6.88.300 and pursuant to the City Manager Regulations for Medical and Non-medical Cannabis.
BC. Registration with the City of San José to manufacture cannabis, distribute cannabis or test cannabis is open to any Cannabis Business.
CD. Registration applications must contain all information as required by the City Manager pursuant to the rules and regulations.
DE. Each Cannabis Business shall pay any applicable fee(s) related to its registration applications, as set forth in Section 6.88.380 and as required by the City Manager pursuant to the rules and regulations, prior to being issued a Notice of Completed Registration.
SECTION 17. Section 6.88.330 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.330 Registration Process
A. Registration review. Pursuant to Section 6.88.300, no Collective or Cannabis Business shall operate in the City of San José without a Notice of Completed Registration from the City Manager. A Collective or Cannabis Business desiring to obtain a Notice of Completed Registration shall file a registration application with the City Manager that shall contain such accurate, complete and truthful information as is required pursuant to the application process set forth in the regulations promulgated by the City Manager pursuant to Section 6.88.315.
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T-19040.016\ 1896774.docx 9
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
B. Consent for inspection of records and Location.
1. Required consent for inspection and copying of records. a. As part of the registration process, the Cannabis Business shall provide written consent for the inspection and copying by the Chief of Police, and any other City official charged with enforcing the provisions of this Code, of any recordings and records required to be maintained under this Chapter without requirement for a search warrant, subpoena or court order.
b. The Cannabis Business shall be subject to the inspection and copying set forth in Subsection 6.88.330. B.1.a. at any time and without notice during the Cannabis Business's hours of operation and at any other time upon reasonable notice.
c. Nothing in this Chapter requires the disclosure of any Qualified Patient's Private Medical Record.
2. Required consent for inspection of Location and Premises. a. As part of the registration process, the Cannabis Business shall provide written consent for the inspection of the Location and the Premises by the Chief of Police, and any other City official charged with enforcing the provisions of this Code, without requirement for a search warrant or court order.
b. The Cannabis Business Location and Premises shall each be subject to the inspection set forth in Subsection 6.88.330. B.2.a. at any time and without notice during hours of operation and at any other time upon reasonable notice.
C. Signatories to registration. The person or persons authorized to sign on behalf of and legally bind the Cannabis Business shall print his or her name and sign the registration application under penalty of perjury certifying that all the information contained therein, and any attachments thereto, is true, complete and correct.
D. Investigation and determination.
1. Upon receiving a Cannabis Business's registration application, the City Manager shall proceed to investigate the information provided by the Cannabis Business and evaluate the compliance of the Cannabis Business with the requirements of this Chapter.
2. The City Manager shall also investigate the Location and the Premises for the purpose of assuring that each Cannabis Business complies with the requirements of this Chapter, including, but not limited to Part 4, and all public health, safety, welfare and zoning laws set forth in this Code and in NVF:TLC:CER
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
state and local laws.
3. The Chief of Police shall also conduct a criminal background investigation on any Owner or Manager of the Cannabis Business and on any individual persons who participate in the cultivation, processing, manufacturing, transporting or dispensing of cannabis.
E. Disqualification from registration.
1. Any Cannabis Business may be disqualified from the registration process for any of the following reasons:
a. The Cannabis Business or any person applying on behalf of a Cannabis Business knowingly made a false statement of fact or omitted a fact required to be revealed in the registration process, or any amendment or report or other information required to be made thereunder;
b. The Cannabis Business Location or Premises is in violation of any building, zoning, health, safety or other provision of this Code; or of any state or local law which substantially affects the public health, welfare or safety;
c. The Cannabis Business violates or has violated the terms and conditions of any requirement of this Code or any state law related to the operation of a Cannabis Business, other than solely because of its existence after the effective date of this Chapter; d. The Cannabis Business or any one of its Owners or Managers have owned or leased a Location or Premises that has been the subject of an administrative, civil or criminal nuisance abatement action and court judgment or administrative determination finding the Location or Premises to be a nuisance within the past five (5) years;
e. The Cannabis Business was disqualified from the registration process under this Chapter on one or more of the grounds provided in this Section within five (5) years prior to the date of the current attempt to register;
f. The Cannabis Business's registration under this Chapter has become null and void within the past five (5) years for any of the reasons set forth in Section 6.88.350;
g. The Cannabis Business's registration, permit, license or any other authorization issued by the City or by any state or local agency and required to operate a cannabis Collective, cooperative, Dispensary, business or other such establishment, has been deemed null and void or has been suspended or revoked or otherwise nullified within the past five (5) years;
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
h. The Cannabis Business has conducted itself in a manner that creates or results in a public nuisance, as defined in Section
1.13.050 of this Code or Sections 3479 and 3480 of the California Civil Code, on or within three hundred (300) feet of the Location; i. If the Cannabis Business is a corporation, the corporation is not in good standing or authorized to do business in the state; j. The Cannabis Business conducted, conducts or anticipates conducting a Cannabis Business on a Location or Premises and such operation is prohibited under the terms of the lease for the Location or Premises or under the terms of another such document which memorializes the Cannabis Business's right to possess the Location or Premises;
k. The Cannabis Business has as an Owner, Manager, or has persons participating, whether directly or indirectly, in the cultivation, processing, manufacturing, transporting or dispensing of cannabis, who:
i. Are on parole or probation for the possession, sale, manufacture, use, distribution or transportation of a
controlled substance, excluding cannabis;
ii. Have been convicted of a crime of moral turpitude; or iii. Have been convicted of any misdemeanor or felony within the last ten (10) years involving the following:
1. The use of violence, force, fear, fraud or deception;
2. The unlawful possession, sale, manufacture, use,
distribution or transportation of a controlled
substance, excluding cannabis;
3. The use of money to engage in criminal activity; or
4. Theft; or
54. The unlawful possession or use of a firearm.
l. The Cannabis Business's operation from the Location or Premises results or will result in an imminent threat to the public'’s health, safety or welfare; or
m. If, based on the investigation conducted pursuant to this Section or Section 6.88.360, the City Manager finds that there are grounds for disqualification of a Cannabis Business because an Owner, Manager, or a person participating , whether directly or indirectly, in the cultivation, processing, manufacturing, transporting, dispensing, or testing of cannabis is found in violation of subsection E.1.k. above, and the Cannabis Business proves conclusively to the City Manager that it has terminated its relationship with that individual so that the individual is prohibited from being involved in the Cannabis Business as an Owner or Manager or individual
participating, whether directly or indirectly, in the cultivation, NVF:TLC:CER
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
processing, manufacturing, transporting, dispensing, or testing of cannabis on behalf of the Cannabis Business, then in the City Manager's discretion, the Cannabis Business may be allowed to continue the registration process, or amended registration process, as the case may be, subject to compliance with all other requirements of this Code.
2. Appeal procedure.
a. Notice of intended decision.
i. Upon determining the existence of any of the grounds for disqualification of an Owner, Manager, or individual person participating , whether directly or indirectly, in the cultivation, processing, manufacturing, transporting, dispensing, or testing of cannabis from the registration process pursuant to Section 6.88.330 E.1.m., the Chief of Police may issue to such individual, with a copy to the Cannabis Business, a notice of intended decision to disqualify.
ii. The notice of intended decision shall state all the grounds and reasons upon which the disqualification is based.
iii. The notice of intended decision shall advise that the disqualification shall become final unless the individual files a written request for hearing before the Chief of Police within the time period specified below.
iv. The notice of intended decision shall specify the effective date of the disqualification.
b. Procedure for hearing before the Chief of Police.
i. The written request for a hearing before the Chief of Police must be received by the Chief of Police within ten (10) calendar days of the date of service of the notice of intended decision to disqualify.
ii. The Chief of Police shall schedule a hearing which shall be held no later than thirty (30) calendar days after receipt of a timely request for hearing.
iii. The Chief of Police shall serve a notice of hearing on the individual not later than ten (10) calendar days prior to the scheduled date of the hearing.
iv. At the hearing before the Chief of Police, the individual shall be given the opportunity to present witnesses and
documentary evidence.
v. The hearing will be conducted informally and the technical rules of evidence shall not apply. Any and all evidence which the Chief of Police deems reliable, relevant and not unduly NVF:TLC:CER
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
repetitious may be considered.
c. Decision of the Chief of Police.
i. Within twenty (20) calendar days after the hearing, the Chief of Police shall serve a written decision sustaining, reversing or modifying his or her intended decision on the individual. ii. The decision by the Chief of Police after the hearing shall become final.
iii. The written statement of decision shall contain a notice setting out Section 1.16.010 of this Code.
F. Completed registration. After verification that all required application fees, as set forth in Section 6.88.380, have been timely and fully paid and that all necessary information has been provided and that the Cannabis Business is in compliance with all requirements of this Chapter, the City Manager shall notify the Cannabis Business that the annual operating fee and any applicable hourly inspection and/or investigative fee(s), as set forth in Section 6.88.380, are now due and payable to the City. Within ten (10) business days of receiving the Cannabis Business's payment of the annual operating fee, as set forth in Section 6.88.380, and any applicable hourly inspection or investigative fees, the City Manager shall mail a Notice of Completed Registration, and any subsequent updated registration, to the person authorized to accept service of process on behalf of the Cannabis Business.
G. Notice of disqualification. If the Cannabis Business has not paid the fees or taxes required by this Code, has not provided all necessary information, is not in compliance with all the requirements of this Code, or has otherwise been disqualified from the registration process, the City Manager shall mail notice to the person authorized to accept service of process on behalf of the cannabis business advising the Cannabis Business that it has been disqualified from the registration process.
SECTION 18. Section 6.88.360 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.360 Change in Location and Updated Registration Information
A. Any time a Cannabis Business changes any of its Locations or Premises, or adds an additional location, it shall, immediately upon obtaining a Zoning Code Verification Certificate pursuant to Title 20 of this Code, prior to beginning operations at the Location or Premises, apply to amend its registration with the City Manager. The Cannabis Business shall file an amended registration application with the City Manager for review along with payment of an NVF:TLC:CER
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
amendment application processing fee, as set forth in Section 6.88.380. A Cannabis Business may not begin operations at the new Location or Premises until it receives an amended Notice of Completed Registration and any associated State license for its new Location or Premises.
B. Within fifteen (15) calendar days of any other change in the information provided in the registration application which is not covered by Ssubsection Aa above or subsection C below, or any change in status of compliance with the provisions of this Chapter, or any change in the status of compliance with County or State laws and regulations, including any change in the Cannabis Business's ownership or management, the Cannabis Business shall file updated application forms containing all information that has changed with the City Manager for review along with payment of all applicable fees, as set forth in Section 6.88.380. Upon verification that all required fees have been paid, all necessary information has been provided, and that the Cannabis Business is in compliance with all requirements of this Chapter, the City Manager shall provide confirmation that the updated forms have been approved to the person authorized to accept service of process on behalf of the Cannabis Business.
C. Within fifteen (15) calendar days of any change in the information provided in the registration application regarding persons authorized to represent the Cannabis Business and regarding the Cannabis Business's agent for service of process, the Cannabis Business shall file with the City Manager written notification of such change.
D. The person authorized to sign on behalf of and legally bind the Cannabis Business shall print his or her name and sign any application form required to be updated, under penalty of perjury, certifying that all information contained in the updated application is true, complete and correct.
SECTION 19. Section 6.88.395 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.395 Eligibility for Equity Assistance Program
A. To be eligible for the Equity Assistance Program as an equity employee, an individual shall satisfy the following criteria:
1. Be a natural person; and
2. Reside in a San José neighborhood rated high, higher, or highest priority by the Metropolitan Transportation Commission’s Equity Priority Community program or a former Strong Neighborhoods Initiative NVF:TLC:CER
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
neighborhood in the City of San José; and
32. In the last year prior to employment with a cannabis business registered in the City of San José, have had an annual family household income at or below eighty percent (80%) of the Area Median Income (AMI) for Santa Clara County adjusted for family household size; and
43. The individual satisfies at least one of the following criteria:
a. Has lived in San José for at least four years in a San José neighborhood rated high, higher, or highest priority by the Metropolitan Transportation Commission’s Equity Priority Community program or a former Strong Neighborhoods Initiative neighborhood in the City of San José; a census tract where at least fifty-one percent (51%) of current residents have a household income at or below eight percent (80%) of the AMI for Santa Clara County; or
b. Has attended a San José public school (, or schools), for at least for years located in a census tract where at least fifty-one (51%) of current residents have a household income at or below 80% of the AMI for Santa Clara County for at least four years; or
bc. Was arrested or convicted for a crime relating to the sale, possession, use, or cultivation of cannabis in California, excluding those offenses which would be disqualifying for cannabis licensure under current State law; or
cd. Had a parent, guardian, child, or sibling convicted of a crime relating to the sale, possession, use, or cultivation of cannabis in the City of San JoséCalifornia, excluding those offenses which would be disqualifying for cannabis licensure under current State law; or
de. Is a person who experienced sexual assault, exploitation, domestic violence, and/or human trafficking while participating in the California cannabis industry.
B. To be eligible for the Equity Assistance Program as an equity business owner, an individual shall satisfy the following criteria: in subsection A above and the individual shall also have a minimum of fifty-one percent (51 %) ownership of the entity applying for a Cannabis Business Registration.
1. Be a natural person; and
2. Reside in a San José neighborhood rated high, higher, or highest priority by the Metropolitan Transportation Commission’s Equity Priority Community program or a former Strong Neighborhoods Initiative NVF:TLC:CER
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
neighborhood in the City of San José; and
3. In the year prior to submitting the application to be an equity business owner, the individual resided in a household with an income at or below 150% of the Area Median Income for San Jose; and
4. Holds a minimum of fifty-one percent (51%) or more ownership of the entity applying for a Cannabis Business Registration as an Equity Business Owner,; and
5. Either
a) Hhas lived for four years in a San José neighborhood rated high, higher, or highest priority by the Metropolitan Transportation Commission’s Equity Priority Community program or a former Strong Neighborhoods Initiative neighborhood in the City of San José; and,
or b) has attended a San José public elementary, middle, or high school for at least four years; and
6. Meets one of the following criteria:
a. Has worked in the cannabis industry in San Josée for at least two years between 2009 and the present; or
b. Was arrested or convicted for a crime relating to the sale, possession, use, or cultivation of cannabis in California, excluding those offenses which would be disqualifying for cannabis licensure under current State law; or
c. Had a parent, guardian, child, or sibling convicted of a crime relating to the sale, possession, use, or cultivation of cannabis in the California, excluding those offenses which would be disqualifying for cannabis licensure under current State law; or d. Is a person who experienced sexual assault, exploitation, domestic violence, and/or human trafficking while participating in the cannabis industry.
C. To be eligible for the Equity Assistance Program as an Equity Business Partnership, the partnership must meet the following criteria:
1. The aggregate ownership held by equity business partners must total fifty- one percent (51%) or more; and
2. Each equity business partner must satisfy the criteria set out in Subsection B above, except for Subsection B.4.
C. Review of eligibility criteria.
1.Proof of income shall be supported with federal tax returns and at least one (1) of NVF:TLC:CER
2-11-2022
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
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, MedicaI/CALWORKs, or Supplemental Security Income or Social Security Disability (SSI/SSDI).
2. Residency shall include proof of residency in any combination of qualifying San José census tracts pursuant to Section 6.88.395.A.3 for a minimum of four (4) years. A minimum of two (2) of the documents listed below, evidencing a minimum of four (4) years of residency, shall be considered acceptable proof of residency. All residency documents must list the first and last name of the equity business owner applicant or the equity employee applicant, and the San Jose residence address in a qualifying San José census tract pursuant to Section 6.88.395.A.3:
a. California Driver's record or Driver's License; or
b. California identification card record; or
c. Property tax billing and payments; or
d. Verified copies of State or federal income tax returns where a San Jose address within a qualifying San Jose census tract pursuant to Section
6.88.395.A.3 is listed as a primary address; or
e. School records; or
f. Medical records; or
g. Banking records; or
h. Utility, cable, or internet company billing and payment covering any month in each of the four (4) years.
3. Proof of conviction should be demonstrated through federal or State court records indicating the disposition of the criminal matter.
SECTION 20. Section 6.88.396 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.396 Assistance Available to Equity Employees and Equity Business Owners
Individuals applying as equity employees at a Cannabis Business or applying for a Cannabis Business Registration as an equity business owner or equity business partnership applicant, may be eligible to receive technical assistance, training for prospective employees, and other services dependent upon funding.
SECTION 21. Section 6.88.397 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.397 Regulations for Equity Assistance Program
The City Manager shall promulgate regulations pursuant to Section 6.88.315 to further establish an application process and procedures for the Equity Assistance Program.
Such regulations may include eligibility verification procedures and registration NVF:TLC:CER
2-11-2022
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
requirements.
SECTION 22. Section 6.88.420 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.420 Security
A. The Premises or Location shall be equipped with, and at all times be monitored by, a closed-circuit video surveillance recording system for security purposes.
The camera and recording system must be capable of and actually record with adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the Premises or Location.
1. The video surveillance recording system shall be fully functional prior to engaging in any Cannabis Activity at the Premises or Location.
2. The video surveillance recordings shall be maintained for a period of not less than thirty (30) days, or longer if required by state law, and shall be made available and accessible to the Chief of Police and any other City official charged with enforcing the provisions of this Code immediately upon request for review and copying, without the need for a search warrant, subpoena or court order.
3. The Cannabis Business shall provide the Chief of Police with remote access to the video surveillance recording system, including live and previously recorded video playback, at any time without a warrant, subpoena or court order.
B. The Premises or Location shall have separate fire and burglar alarm systems.
Both systems shall be fully functional at all times and prior to engaging in any Cannabis Activity at the Premises or Location. At a minimum, these systems shall cover the perimeter of the Premises or Location and shall focus on those areas where cannabis is cultivated, stored, manufactured, distributed, processed, tested or dispensed. Both systems shall comply with all requirements of Chapters
17.12, 17.68, and 17.78 of this Code and Title 24 of this Code.
1. The burglar alarm system shall be installed and programed to be a functionally complete burglar alarm system per the manufacturer's guidelines. The system shall be provided with secondary power and monitoring by a UL listed central station service.
2. The fire alarm system shall be an automatic fire alarm system that NVF:TLC:CER
2-11-2022
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
provides both fire department and occupant notification. Where an approved automatic sprinkler system is installed and the notification devices/appliances activate via sprinkler water flow, the sprinkler system may be used as fire detection for the alarm system. A minimum of one (1) manual fire alarm box shall be provided in an approved location to initiate a fire alarm signal. The system shall be provided with secondary power and monitoring by a UL listed central station service.
C. If the Cannabis Business maintains records in a printed format pursuant to Section 6.88.500, then the Premises shall contain at least one (1) fire-proof safe and all records required by this Chapter shall be stored in one (1) or more fire- proof safes.
D. Exterior lighting on the Premises and parking area lighting for the Location shall be balanced and shall not result in glare on adjoining properties, shall complement the security systems required in Subsections A and B above to ensure that all areas of the Location are visible, and shall provide increased lighting at all entrances to the Premises. The lighting required in this Subsection shall be turned on from dusk to dawn.
E. Cannabis shall be stored in buildings that are completely enclosed, and in a locked vault or safe, or other secured storage structure which is bolted to the floor or structure of the Premises in compliance with all building and fire provisions of this Code.
F. Windows and roof hatches of the Premises shall be secured from the inside with effective means so as to prevent unauthorized entry, and shall be equipped with latches or a similar mechanism that may be released quickly from the inside to allow exit in the event of emergency in compliance with all applicable provisions in the Code.
G. Exterior doors to the Premises shall remain locked from the outside to prevent unauthorized ingress to the Premises. Ingress shall be allowed by means of a remote release operated from within the Premises of the Cannabis Business. In all cases, doors shall remain openable from the inside to allow egress without the use of a key or special knowledge. Access-controlled egress doors shall comply with all requirements of Chapter 17.12 of this Code and Title 24 of this Code.
H. All areas of the Cannabis Business not open to the public shall be secured from unauthorized entry during public operating hours.
I. No person shall be in possession of any firearm while on the Premises or Location without having first obtained a license from the appropriate state or local NVF:TLC:CER
2-11-2022
T-19040.016\ 1896774.docx 20
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
agency authorizing the person to be in possession of such firearm.
J. Persons in possession of a firearm while on the Premises or Location must provide the City Manager and the Chief of Police, ten (10) days before bringing the firearm onto the Premises or Location, with the following:
1. A copy of the license issued to the person by the appropriate state or local agency authorizing him or her to possess such firearm;
2. A copy of his or her law enforcement identification (if he or she is employed by a law enforcement agency);
3. A copy of his or her California driver's license or California identification card; and
4. Any other information reasonably required by the Chief of Police to show that the individual is in compliance with the provisions of all laws regarding the possession and use of a firearm.
K. There shall be a minimum of one (1) Security Personnel on duty twenty-four (24) hours a day, seven (7) days a week at each of the Cannabis Business's Cultivation Sites.
KL. There shall be a minimum of one (1) Security Personnel at a dispensing Location during its hours of operation.
LM. The Security Personnel shall provide security inside the Premises, along the outside perimeter of the Premises, at parking sites immediately adjacent to the Premises and used by Customers of the Cannabis Business, and at sidewalks adjacent to the Cannabis Business's Location.
MN. All Security Personnel shall register and maintain valid registration status with the State of California's Department of Consumer Affairs. At no time shall any Security Personnel register with the state at any level that is less than that of a proprietary private security officer. Proof of application and registration for all Security Personnel shall be maintained by the Cannabis Business and shall consist of copies of all relevant documentation including the actual proof of registration.
NO. While on duty, all Security Personnel shall have a nameplate containing the Security Personnel's full name and the word "SECURITY" printed in bold, capital letters. The nameplate shall be exhibited prominently on the clothing, at chest level, and shall be visible and easily read at all times. As an alternative to a nameplate, the Security Personnel may wear clothing with his or her name and NVF:TLC:CER
2-11-2022
T-19040.016\ 1896774.docx 21
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
the word "SECURITY" embroidered in a contrasting color on the Security Personnel'’s outermost garment meeting the above specifications and located at chest level.
SECTION 23. Section 6.88.425 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.425 Identification Display Requirements
A. While at the Cannabis Business's Premises or Location, each Owner, Manager, and individual person engaged, whether directly or indirectly, in the cultivation, processing, manufacturing, distributing, testing, transporting, delivery, handling or dispensing of cannabis shall, at all times while engaged in the duties of his or her position for the Cannabis Business, wear in plain sight, on his or her person and above the waist, a valid identification badge, issued by the Chief of Police and containing such information, including a suitable photograph, as the Chief of Police may require.
B. While engaged, whether directly or indirectly, in the duties of his or her position for the Cannabis Business, but not at the Cannabis Business'’s Premises or Location, each Owner, Manager and individual person engaged in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis shall at all times have in his or her possession a valid identification badge, issued by the Chief of Police.
C. Upon request by the Chief of Police or any other City official charged with enforcing the provisions of this Code, or any state official charged with enforcing state law pertaining to Cannabis Businesses, each Owner, Manager and individual person engaged , whether directly or indirectly, in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis shall produce such valid identification badge for inspection.
D. No Owner, Manager, or individual person engaged, whether directly or indirectly, in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis shall engage in any activities on behalf of the Cannabis Business, without first obtaining a valid identification badge.
E. Identification badges shall expire one (1) year after the date of issuance.
F. Identification badges are the property of the City of San José and shall be immediately collected by the Cannabis Business upon termination of the NVF:TLC:CER
2-11-2022
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Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
Cannabis Business’s relationship with the Owner, Manager or individual person participating or involved in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis, or within twenty-four (24) hours of their expiration., or within twenty-four (24) hours of the termination of the Cannabis Business's relationship with the Owner, Manager, or individual person participating in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis.
G. Identification badges collected by the Cannabis Business pursuant to subsection F above shall be provided to the Chief of Police within seventy-two (72) hours of collection, expiration, or termination of the Cannabis Business'’s relationship with the Owner, Manager, or individual person participating , whether directly or indirectly, in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis.
H. Identification badges shall remain at the Cannabis Business'’s Premises when not in use.
I. Owners, Managers, and individual persons participating, whether directly or indirectly, in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis shall not take identification badges home or off- the Cannabis Business’s Premises, except in the case of traveling off-Premises on official business of the Cannabis Business, including delivery or transport of cannabis.
SECTION 24. Section 6.88.435 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.435 Cultivation Site
A. No cannabis shall be dispensed from a Cultivation Site, unless that site also serves as the Cannabis Business's sole registered dispensing Location.
B. Two (2) Cannabis Businesses may share a single Cultivation Site within the City of San José provided that the cannabis cultivated or manufactured by each Cannabis Business is kept separate. A shared Cultivation Site shall not be a Cannabis Business's sole dispensing Location and no cannabis shall be dispensed from a shared Cultivation Site.
C. A Cultivation Site that does not serve as the Cannabis Business's sole registered dispensing Location shall not be open to the public.
D. Every Cannabis Business shall maintain complete records regarding the amount NVF:TLC:CER
2-11-2022
T-19040.016\ 1896774.docx 23
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
of cannabis cultivated, processed, stored, manufactured or destroyed at its Cultivation Site or Sites. The amounts of Medical Cannabis and Non-medical Cannabis cultivated, processed, stored, manufactured or destroyed shall be identified and recorded separately.
E. The Cannabis Business shall maintain complete records regarding the transporting of cannabis to, from or between any of its Locations or other businesses licensed by the stateother Cannabis Businesses. Such records shall include, but not be limited to, the date and time the cannabis was transported, the amount of cannabis transported, whether the cannabis was Medical Cannabis or Non-medical Cannabis, whether the cannabis was in flower, concentrate or edible form, and the strain of cannabis transported.
F. All transporting of cannabis shall be conducted between the hours of 6:00 a.m. and midnight.
G. The City Manager shall promulgate regulations pursuant to Section 6.88.315 to ensure that Cannabis Businesses control, record, and track their cannabis throughout the cultivation, processing, manufacturing, transporting and dispensing processes in accordance with state law.
SECTION 25. Section 6.88.436 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.436 Manufacturing Site
A. No cannabis shall be dispensed from a Location that is only a Manufacturing Site.
B. Each Cannabis Business engaged in the Manufacture of Cannabis shall maintain complete records regarding the amount of cannabis received, processed, stored, manufactured or destroyed at its Manufacturing Site. The amounts of Medical Cannabis and Non-medical Cannabis received, processed, stored, manufactured or destroyed shall be identified and recorded separately.
C. Any Cannabis Business engaged in the Manufacture of Cannabis shall maintain complete records regarding the transporting of cannabis to, from or between any of its Locations or other businesses licensed by the stateother Cannabis Businesses. Such records shall include, but not be limited to, the date and time the cannabis was transported, the amount of cannabis transported, whether the cannabis was medical or non-medical, whether the cannabis was in flower, concentrate or edible form, and the strain of cannabis transported.
NVF:TLC:CER
2-11-2022
T-19040.016\ 1896774.docx 24
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
D. All cannabis shall be packaged in a tamper-evident, child-resistant package in accordance with Section 26120 of the Business and Professions Code and any other applicable state law or regulation.
E. All transporting of cannabis shall be conducted between the hours of 6:00 a.m. and midnight.
F. The City Manager shall promulgate regulations pursuant to Section 6.88.315 to require that any Cannabis Business engaged in the Manufacture of Cannabis control, record, and track cannabis under its ownership or control throughout the processing, manufacturing, and transporting processes in accordance with state law.
SECTION 26. Section 6.88.440 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.440 Cannabis Business Operations
A. Only a Dispensary or Retail Storefront shall be open to the public. Cannabis Business Locations that are not Dispensaries or Retail Storefronts shall not be open to the public. A Dispensary or Retail Storefront shall be open to the public during hours of the day that are in accordance with the regulations promulgated by the City Manager pursuant to Section 6.88.315.
B. All cannabis cultivated, processed, manufactured, obtained, purchased, dispensed or distributed by the Cannabis Business must be stored and dispensed in strict accordance with state law, this Chapter and other provisions of this Code.
C. All cannabis dispensed by a Cannabis Business must comply with all other provisions of this Chapter, all regulations promulgated by the City Manager pursuant to Section 6.88.315, and state law.
D. All contributions (whether in-kind, monetary or property) shall be fully documented, in writing, at the time of their receipt by the Cannabis Business and in accordance with Part 5 of this Chapter.
E. All sales and transfers of cannabis by a Medical or Non-medical Cannabis Business shall be fully documented, in writing, at the time of the sale or transfer.
F. Each Cannabis Business shall account for all monetary contributions or payments. Monetary contributions or payments shall be made by cash, personal check, cashier'’s check, debit card or credit card. All accountings, billings, and NVF:TLC:CER
2-11-2022
T-19040.016\ 1896774.docx 25
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
contributions (whether in-kind, monetary or property) shall be fully documented, in writing and in accordance with Part 5 of this Chapter, and shall be submitted to the Director of Finance on a quarterly basis.
G. No persons under the age of twenty-one (21) shall be allowed at the Location.
H. A Dispensary or Retail Storefront shall verify the age of every person entering the Premises with an Electronic Age Verification Device, excepting verified employees of the Dispensary; or verified employees of another Cannabis Business or State licensee; and City, County and/or State officials on official business.
I. No Medical Cannabis Transfers shall be made by a Cannabis Business to a person under the age of twenty-one (21).
J. No Medical Cannabis shall be provided, sold, or transferred to any person who is not a Qualified Patient or Primary Caregiver, and who is not age twenty-one (21) or older.
K. No Non-medical Cannabis shall be provided, sold, or transferred to any person who is not age twenty-one (21) or older.
L. Prior to transferring Medical or Non-medical Cannabis to any person, an Electronic Age Verification Device shall be used to determine the age of the person attempting to obtain cannabis, without exception. The Electronic Age Verification Device may be mobile or fixed, and must be able to retain a log of all scans that includes the following information: date, time, and age.
M. The electronic age verification log shall be kept for a minimum of one hundred eighty (180) days.
N. Notwithstanding any other provision of state law, no Medical Cannabis provided to a Primary Caregiver may be provided by the Primary Caregiver to any person other than the Primary Caregiver's Qualified Patient for whose care the Primary Caregiver is responsible.
O. No Cannabis Business shall cause or permit the sale, dispensing, or consumption of alcoholic beverages at the Premises and/or Location or in the parking area for the Premises and/or Location.
P. Cannabis may not be inhaled, smoked, eaten, ingested, vaped, or otherwise used or consumed at the Premises and/or Location, in the parking areas of the Premises and/or Location, within three hundred (300) feet of the Premises and/or NVF:TLC:CER
2-11-2022
T-19040.016\ 1896774.docx 26
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
Location on the public right-of-way, or in those areas restricted under the provisions of California Health and Safety Code Section 11362.79.
Q. No cannabis shall be taken into a restroom at the Premises and/or Location, including temporary restrooms in the parking areas of the Premises and/or Location.
R. Each Cannabis Business shall operate and maintain an on-site twenty-four (24)- hour landline telephone number at the Premises for receiving complaints and other inquiries regarding the Cannabis Business. A person engaged in the management of the Cannabis Business shall be responsible for receiving, logging, and responding to these complaints and other inquiries on a daily basis.
The log shall be maintained in the records of the Cannabis Business and in accordance with Part 5 of this Chapter.
S. None of the following items shall be allowed on the Premises or at the Location or in the parking area for the Premises or Location:
1. Any controlled substances, other than cannabis as defined herein;
2. Any paraphernalia used for the ingestion of any type of controlled substance, except for cannabis;
3. Alcoholic beverages; or
4. Firearms, except in strict compliance with federal, state and local laws and with Section 6.88.420.J.
T. A sign shall be posted in a conspicuous location inside the Premises advising, in English, Spanish and Vietnamese, the following: "Both the sale of cannabis and the diversion of cannabis to persons under age twenty-one (21) are violations of state law. The use of cannabis may impair a person's ability to operate a motor vehicle or heavy machinery. Loitering at the Location of a Cannabis Business for an illegal purpose is prohibited by California Penal Code Section 647(h). This Cannabis Business is registered in accordance with the laws of the City of San José."
U. All water used in any Cannabis Activity shall be legally obtained and shall be applied in accordance with state and local laws.
V. All electricity used in any Cannabis Activity shall be legally obtained and shall be used in accordance with state and local laws.
NVF:TLC:CER
2-11-2022
T-19040.016\ 1896774.docx 27
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
W. The extraction and refinement of chemical compounds from cannabis by way of a Solvent-based method utilizing compressed flammable gases or alcohol in violation of state law is prohibited. No Cannabis Business shall possess, dispense or transport any cannabis manufactured unlawfully. All extraction and refinement equipment used by a Cannabis Business shall be subject to review by, and approval of, the City pursuant to Chapter 17.12 of this Code or Title 24 of this Code.
X. Any hazardous materials shall be used and stored in full compliance with Chapter 17.68 of this Code.
Y. All activities conducted at a Cannabis Business shall at all times fully comport with the provisions of California Health & Safety Code Section 11362.5 et seq., the Compassionate Use Act, the Medical Marijuana Program Act, the Adult Use of Marijuana Act, the Medicinal and Adult-Use Cannabis Regulation and Safety Act, and any other applicable state laws or regulations, as the same may be amended from time to time; provided, however, that if there is a conflict between the provisions of this Code and the provisions of state law, the most restrictive law allowed to apply shall govern and control.
SECTION 27. Section 6.88.446 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.446 Mobile Dispensaries Prohibited
A. Only a Cannabis Business registered pursuant to this Chapter may dispense cannabis in the City of San José.
B. Except as provided in Subsection 6.88.445.B, a registered Cannabis Business may only dispense from its sole registered dispensing Location or Locations.
SECTION 28. Section 6.88.450 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.450 Owner, Manager and Individual Person Requirements
A. No Owner, Manager, or individual person who will be participating, whether directly or indirectly, in the cultivation, processing, manufacturing, distributing, testing, transporting, delivery, handling or dispensing of cannabis shall:
1. Be on parole or probation for the possession, sale, manufacture, use, distribution or transportation of a controlled substance, excluding cannabis;for the possession, sale, distribution or transportation of a NVF:TLC:CER
2-11-2022
T-19040.016\ 1896774.docx 28
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
controlled substance other than cannabis, or
2. Have been convicted of a crime of moral turpitude;, or
3. Have been convicted within the last ten (10) years of any misdemeanor or felony involving any one (1) of the following:
a. The use of violence, force, fear, fraud or deception; b. The unlawful possession, sale, manufacture, use, distribution or transportation of a controlled substance, other thanexcluding cannabis;
c. The use of money to engage in criminal activity; or
d. Theft; or
e. The unlawful possession or use of a firearm.
34. Be under the age of twenty-one (21).
B. A Cannabis Business shall ban, prohibit, or otherwise refuse entry to any Person violating the provisions of this Chapter.
C. A Cannabis Business shall maintain a log of persons banned, prohibited, or otherwise refused entry for violating the provisions of this Chapter. The log shall include any information required by the Chief of Police, including but not limited to the person'’s name (if available), brief description (if name is not available), date and time of the incident(s), section(s) of this Chapter violated, and the date the person was banned, prohibited, or otherwise refused entry.
D. Each Cannabis Business shall designate an On-site Designated Representative who shall be present during all hours of the Cannabis Business'’s operation. The On-Site Designated Representative shall meet the following minimum requirements:
1. Be a Manager for the Cannabis Business;
2. Comply with all laws and ordinances;
3. Carry on his or her person, at all times when he or she is functioning as the On-site Designated Representative, a valid government issued photo identification card or license;
4. Upon request by the Chief of Police, any other City official charged with enforcing the provisions of this Code, or any state official charged with enforcing state law regarding Cannabis Businesses, produce such photo identification card or license for inspection;
NVF:TLC:CER
2-11-2022
T-19040.016\ 1896774.docx 29
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
5. Be available at the telephone number identified in the registration as the on-site landline telephone number for the Premises;
6. Cooperate fully with the Chief of Police, any other City official charged with enforcing the provisions of this Code, or any state official charged with enforcing state law regarding Cannabis Businesses with any inquiry, inspection, request, or investigation necessary or appropriate to implement the requirements of this Code or to enforce any other state or local law;
7. Immediately report to the Chief of Police any violations of state or local law or conditions which the On-Site Designated Representative knows, or reasonably should know, exist on the Premises and at the Location and could result or have resulted in harm or an imminent threat of harm to the health, safety or general welfare of any person or member of the public; and
8. Immediately report to the Chief of Police and the County health department, any information indicating that any person experienced an adverse reaction to, or other difficulty related to, any cannabis procured from the Cannabis Business.
E. No Owner, Manager, or individual person participating, whether directly or indirectly, in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis shall fail to make a report to the Chief of Police, immediately upon discovery of any conduct which raises a reasonable suspicion that a misdemeanor or felony crime under the laws of the state has been committed on the Cannabis Business'’s Premises or Location.
F. No Owner, Manager, or individual person participating, whether directly or indirectly, in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis shall fail to report any conduct which raises a reasonable suspicion of a violation of this Chapter to the Chief of Police within twenty-four (24) hours of its discovery.
SECTION 29. Section 6.88.470 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.470 Public Safety and Safety of Location
A. Each Cannabis Business shall operate in a manner such that the cultivation of NVF:TLC:CER
2-11-2022
T-19040.016\ 1896774.docx 30
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
cannabis does not adversely affect the health or safety of nearby properties through creation of mold, mildew, dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, or other impacts.
B. Each Cannabis Business shall prevent the odor of cannabis from emanating beyond the walls of the Premises by utilizing appropriate air purification systems and air scrubbers wherever cannabis is cultivated, processed, manufactured, stored, tested, distributed or dispensed.
C. The cultivation of cannabis shall not create hazards due to the use or storage of materials, processes, products or wastes.
D. All electrical equipment used in the cultivation of cannabis shall be plugged directly into a wall outlet or otherwise hardwired. The use of extension cords to supply power to electrical equipment used in the cultivation of cannabis is prohibited.
E. Each and every Cannabis Business shall ensure that it has safe growing facilities., cChemicals and fertilizers are shall be properly stored, used, and disposed;, carbon dioxide levels are tested (if carbon dioxide is added to the air within the Cannabis Business'’s cultivation areas);, areas are properly vented;, and mold is tested and controlled.
SECTION 30. Section 6.88.840 of Chapter 6.88 of Title 6 of the San José Municipal Code is amended to read as follows:
6.88.840 Registration Nontransferable
A. No Person shall assign or transfer any Notice of Completed Registration issued under this Chapter and any attempt to assign or transfer any Notice of Completed Registration issued pursuant to this Chapter shall render the Notice of Completed Registration null and void.
B. Notwithstanding Subsection A above and Subsection 6.88.350 D, a Cannabis Business wishing to transfer ownership or management of the Cannabis Business may do so provided that:
1. The Cannabis Business shall submit all required forms, pay any associated fees, and follow any procedures specified in the City Manager regulations.
2. The Cannabis Business receives a new or amended Notice of Completed Registration confirming the change in ownership or management.
NVF:TLC:CER
2-11-2022
T-19040.016\ 1896774.docx 31
Council Agenda: 02-15-2022
Item Number: 8.1(c) and 10.2(c)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
REVISED – Per public comment received.
C. Notwithstanding Subsection B above, a Cannabis Equity Owner may not transfer ownership to a non-equity owner such that the total amount of equity ownership falls below fifty-one percent (51%) for a period of five (5) years following the original date of receipt of a Notice of Completed Registration.
D. Notwithstanding Subsection B above, a Cannabis Equity Business may not transfer shares of ownership to non-equity owners or partners such that the aggregate total of equity ownership falls below fifty-one percent (51%) for a period of five (5) years following the original date of receipt of a Notice of Completed Registration.
PASSED FOR PUBLICATION of title this _____ day of ___________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk