Cannabis Business
Ordinance Update
Item 10.2
Martina Davis, Acting Division Manager – Planning, Building and Code Enforcement
Wendy Sollazzi, Division Manager – Police Department
www.sanjoseca.gov
2 Title 20: Zoning Code Changes
Allow delivery-only in industrial areas
Allow new retail storefronts in commercial areas, not in industrial areas Change distance requirements
• Consider Downtown and Urban Villages separately
• Measure distance from Residential outside of Downtown or Urban Villages using Path of Travel
Replace existing exclusion areas with Police Beat Exclusion Area Remove Downtown ground floor restriction
Update Zoning Code Verification Certificate Process
www.sanjoseca.gov
3 Dispensaries Delivery-only
• Commercial Pedestrian
• Commercial Neighborhood
• Commercial General
• Combined Industrial/Commercial
• Downtown Primary Commercial
• Downtown Commercial Neighborhood Transition
• Main Street Commercial
• Main Street Ground Floor Commercial
• Mixed Use Commercial
• Transit Residential
• Urban Village Commercial
• Urban Village and
• Urban Residential districts
• Combined Industrial/Commercial
• Industrial Park
• Light Industrial
• Heavy Industrial
Proposed Updates to the Zoning Districts
Proposed Exclusion Areas for Retail
Storefronts:
Police Beat Exclusion Area where crime is
20% Higher than Citywide Average
4 www.sanjoseca.gov
5 Distances Proposed in Feet
Schools Day Care Center,
Youth Center
Community or
Recreation Centers,
Parks, Libraries
Rehab Center,
Emergency
Residential Shelter
Another
Cannabis
Storefront
Residential Use,
Religious Assembly,
Adult Daycare Center
Existing 1,000 1,000 1,000 500 50 150
Not in
Downtown or
Urban Village
1,000 1,000 1,000 500 1,000 300
Downtown 1,000 600 - - 500 -
Urban Village 1,000 1,000 - 500 500 -
Underline = Added by the Amendment Strikethrough = Removed by the Amendment Citywide
• 1,300 Delivery Locations
• 1,400 Retail Locations
Retail Locations
Delivery Locations
San José
6 www.sanjoseca.gov
7 CEQA
California Environmental Quality Act
• Initial Study & Negative Declaration
• No new environmental impacts
• Publicly circulated for 20 days
• No public comments
7 www.sanjoseca.gov
8 Proposed Regulatory Changes
1) Add delivery-only to the categories of regulated cannabis businesses
2) Allow up to ten (10) new cannabis retail businesses with equity business owners to register (only 5 of which may be storefronts) 3) Allow currently registered cannabis retail businesses to dispense cannabis from a total of two (2) storefront locations
www.sanjoseca.gov
9 Proposed 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
Dispensary or Retail Storefront Up to 2 Up to 1
Delivery Up to 1 Up to 1 A, B, C
Testing Up to 2 Up to 2
MAXIMUM LOCATIONS 3 3 D
Notes:
A. Cannabis shall only be delivered from a location in an Industrial Zoning district.
B. 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).
C. Businesses registered after December 18, 2015: No Medical Cannabis Transfers or Non-medical Cannabis Transfers, via delivery or otherwise, from more than 1 location.
D. No cannabis business shall operate at more than three (3) locations in any combination of cannabis activities. www.sanjoseca.gov
10 Item 10.2 Recommendations
(a) Adopt a resolution adopting the San José Cannabis Business Ordinance Update Negative Declaration;
(b) Approve an ordinance amending Title 20 of the San José Municipal Code to add delivery-only cannabis businesses and allow expansion of cannabis retail businesses into commercial areas, and other related changes;
(c) Approve an ordinance amending Chapter 6.88 of the San José Municipal Code to allow ten new cannabis equity businesses and allow currently registered cannabis retail businesses to dispense cannabis from a total of two locations, and other related changes