San José Police Department
Cannabis Regulations
Public Safety, Finance, and Strategic Support Committee Meeting February 15, 2024
Item (d)5
Presenters:
Wendy Sollazzi, Division Manager
Sergeant David Woolsey
2 www.sanjoseca.gov
Public Safety, Finance, and Strategic Support
Committee Direction
• Provide an update on the following topics:
• The possibility of aligning San José’s regulations with State regulations, including but not limited to, Identification Badge Requirements while maintaining the age of purchase at 21 years in San José; and
• Comparing San José’s annual fees for cannabis operations with other jurisdictions.
3 www.sanjoseca.gov
Comparison of Cannabis Regulations
• San José’s regulations originally drafted in 2014
• State of California regulation of commercial cannabis businesses began in 2018
• California's program was designed to allow local regulation and taxation
• Empowers municipalities to regulate at the local level • If regulations conflict, the strictest regulation prevails • Enables Cities and Counties to regulate issues important to each community
4 www.sanjoseca.gov
Age Comparison
• Purchase, Employment, and Verification
San José Regulations State Regulations Alignment
Adult Use Purchase 21 and older 21 and older Aligned
Medicinal Use Purchase 21 and older 18 and older Not aligned Employment 21 and older 21 and older Aligned
Verification Method Electronic ID scanning Inspecting ID Not aligned 5 www.sanjoseca.gov
Identification Badge Comparison
• Background and Display Requirements
San José Regulations* State Regulations** Alignment
Owners more than 10% 20% or more Not Aligned
Board Members Yes Yes Aligned
Corporate Officers Yes Yes Aligned
Managers Yes Yes Aligned
Drivers Yes No Not Aligned
Employees Yes No Not Aligned
* San Jose requires a badge issued by the Police Department be displayed which represents the individual has been backgrounded. ** State requires a badge issued by the business be displayed. 6 www.sanjoseca.gov
Security Comparison
• Alarms, Secure Storage, and Video Surveillance
San Jose Regulations State Regulations Alignment
Alarm UL Listed Mercantile Burglar
Alarm System
Alarm monitored by alarm
company or agent
Not Aligned
Alarm Response Prescribed Response No specified timeliness and nature of response
Not Aligned
Product Storage Stored Indoors Stored Indoors Aligned
Secure Storage Stored in a safe, vault, or
other secure storage
Not specific Not Aligned
Storefront
Video Surveillance
Required; Retained 30 days Required; Retained 90 days Not Aligned Delivery Vehicle
Video Surveillance
Required; Dual facing
video camera system
Not Required Not Aligned
7 www.sanjoseca.gov
Comparison of Operating Fees or Permits
Number of Businesses or Permits Annual Operating Fee
San José 16 Businesses
(plus up to 10 equity allowed)
Per Business
$139,406
Mountain View 1 Business
(maximum of 3 allowed)
Per Business
$139,619
Oakland 266 Businesses
(including 106 equity)
Per Permit ranging from
$509.75 to $17,618*
Sacramento 291 Permits
(including 41 equity)
21 Permit Types ranging from
$2,590 to $36,800 each*
San Francisco 108 Permits
(including 40 equity)
Per Activity
$5,000*
* one business may hold multiple permits or have multiple activities; the fee paid by each business varies based on the number of permits/activities 8 www.sanjoseca.gov
Cannabis Regulation Annual Operating Fee
FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Police 3.94 3.38 4.89 5.17 5.11 5.11 5.07 5.02
Finance 1.75 1.69 1.69 1.54 1.34 1.19 0.98 0.98
CMO 0.14 0.10 0.22 - - - - -
CAO 3.50 2.70 2.27 1.15 1.15 1.04 1.04 0.74
PBCE 2.00 1.91 0.94 1.09 0.81 0.81 0.33 0.51
Total FTE 11.33 9.78 10.01 8.95 8.41 8.15 7.42 7.25
Annual Fee* $149,132 $131,846 $150,610 $138,148 $143,333 $147,645 $130,345 $139,406 * Intended to be 100% cost recovery
9 www.sanjoseca.gov
Resources: San Jose – Police Department
ILLEGAL SALES OF CANNABIS, MUSHROOMS, FENTANYL, AND OTHER ILLEGAL
SUBSTANCES
• If you witness drug dealing, call 9-1-1 or 408-277-8911. • If you suspect (but don't see) drug dealing, call (408) 277-8900 or submit a tip online:
https://www.sjpd.org/services/automated-services/contact-form?strtopic=drugs • Under the “Topic” dropdown, please select “Drug Enforcement/Narcotics”
COMPLAINTS ABOUT REGISTERED CANNABIS BUSINESSES
• Contact the Division of Cannabis Regulation
• https://sjpd.org/exo/dcr
• Email: [email protected]
• Phone: 408-537-1420
10 www.sanjoseca.gov
Resources: San Jose – PBCE
CODE ENFORCEMENT
• Respond to municipal code violations on private property such as zoning, building, and blight violations.
• Address unregistered cannabis businesses, cannabis cultivated for personal use, or cannabis odor.
• Service requests
• https://www.sanjoseca.gov/your-government/departments-offices/planning-building-codeenforcement/code-enforcement/request-service-check-status/code-service-request-form • Email: [email protected]
• Phone: 408-535-7770
11 www.sanjoseca.gov
Resources: State of California
DEPARTMENT OF CANNABIS CONTROL (DCC)
• Investigates complaints of unlicensed or illegal cannabis activity • Stops the sale of cannabis to minors
• Prevents unsafe products from entering the cannabis market • To file a complaint with the State: https://cannabis.ca.gov/resources/file-complaint/
OFFICE OF YOUTH TOBACCO ENFORCEMENT (OYTE)
• Investigates flavored tobacco and sales to minors
• https://www.cdph.ca.gov/Programs/CEH/DFDCS/Pages/OfficeofYouthTobaccoEnforcement.aspx • Email: [email protected]
• Phone: 1-800-5-ASK-4-ID (800-527-5443)
12 www.sanjoseca.gov
Future Cannabis Regulatory Program Review
• Staff is scheduled to review and discuss the possibility of expanding the San José Police Department Division of
Cannabis Regulation’s responsibilities to include regulating licensed tobacco retailers at the Public Safety, Finance, and Strategic Support Committee meeting on April 18, 2024.
13 www.sanjoseca.gov
Staff Recommendation
• Accept the report on how San José’s cannabis regulations compare to State of California regulations and how San José’s cannabis business annual operating fee compares to other jurisdictions.
San José Police Department
Cannabis Regulations
Public Safety, Finance, and Strategic Support Committee Meeting February 15, 2024
Item (d)5
Presenters:
Wendy Sollazzi, Division Manager
Sergeant David Woolsey