California Growers Association meeting notes

1. Oakland Medical Cannabis
Ordinance Update
April 27, 2016
By Alex Zavell
Senior Regulatory Analyst
Robert A. Raich, P.C.
alex@robertraich.com

2. Two Ordinances
• 5.80 – Retail
• 5.81 – Non-retail
Both passed City Council Public Safety Committee on 4/26,
going to full City Council for first read on 5/3

3. Ordinance 5.80 – Retail Storefronts
– Replaces current limit of 8 storefronts with
authorization of 8 new licenses per year
• Can be located in zones that allow for
commercial and industrial activities.
• Annually renewed “Special Activity Permit” (not
a land use entitlement)
• Eliminates all mandatory distance requirements
except for 600 buffer from schools and youth
centers.
• Subject to a public hearing.
• Replaces strict distance buffers with
requirement that applicant demonstrate non-
impact.

4. 5.80 – Onsite Consumption
–Creates a new onsite consumption
permit
• Separate permit available only to
permitted dispensaries.
• Will allow for non-smoke (combustion)
ingestion – i.e. vaporizing and edible
consumption.
• Smoking prohibited “inside” the premises.

5. Ordinance 5.80 – Delivery
• Creates delivery-only licenses
– Can be located in same areas as storefront
dispensaries.
– No limit on number that can be issued.
– No public hearing required.
– Location cannot be open to the public – can
only make deliveries.

6. Dispensary Zones
MAPS FROM OLDER DRAFT OF ORDINANCE,
NOW OUT OF DATE – USED AS EXAMPLE

7. 5.81 – Non-Retail Licenses
• Annually renewed “Special Activity Permit” (not a
land use entitlement)
• Mostly mirrors MMRSA license-type categories.
• Does not distinguish sub-types within an activity
based on size (i.e. only one type of cultivation
permit – not type 1, type 2, type 3).
• Only sensitive use buffer is 600 feet buffer from
schools.
• No cap on the number of permits that can be
issued

8. Cultivation, Distribution, Testing, and
Transporting
Permitted in zones allowing light manufacturing or
research and development
MAPS FROM OLDER DRAFT OF ORDINANCE,
NOW OUT OF DATE – USED AS EXAMPLE

9. Non-Volatile Manufacturing
Permitted in zones allowing custom manufacturing
MAPS FROM OLDER DRAFT OF ORDINANCE,
NOW OUT OF DATE – USED AS EXAMPLE

10. Volatile Manufacturing
Permitted in zones allowing general manufacturing
MAPS FROM OLDER DRAFT OF ORDINANCE,
NOW OUT OF DATE – USED AS EXAMPLE

11. Permitted Activities and Zones
Type of Activity Zoning
Cultivation,
distribution, testing,
and transporting
Light manufacturing or
research and
development
Dispensary Commercial or
industrial
Non-volatile
manufacturing
Custom manufacturing
Volatile manufacturing General manufacturing

12. Zoning Concept: Conditional vs. By
Right
• Cannabis activities are allowed only in zones that
allow for the relevant manufacturing activity by right.
• Cannabis activities are prohibited in zones that would
require a conditional use permit for the
manufacturing activity. The City wants to avoid the
public hearings and land use entitlements involved
with CUPs.

13. Zoning Concept: Administrative
Discretion

14. Other Zoning Issues
• Multiple permits may be issued to a single parcel/
building.
• Compliance with building and fire codes required
independent of cannabis activity permit.
• Edible makers who fall under California Homemade Food
Act operator standards may be able to operate in
residential zones
• Residential cultivation is allowed by patients and
caregivers for non-commercial personal use, but will not
be permitted to enter the commercial supply chain

15. Permit and Regulatory Fees

16. Employee Hiring Provisions
• Staff must be 50% Oakland residents, with at
least 25% being Oakland residents from census
tracts identified by the City as high-
unemployment areas.
• Businesses that hire formerly incarcerated
Oakland residents can apply for a tax credit or
license fee reduction.
• City may develop phase-in of these
requirements for existing businesses

17. Ownership Requirements
• For dispensaries (5.80.020(e)):
– “Priority shall be given to dispensary applicants owned
and operated by Oakland residents, in particular
applicants owned and operated by Oakland residents in
census tracts identified by the City Administrator as
having high unemployment rates.”
• New amendment from 4/26 Public Safety
Committee:
– 50% of dispensary and cultivation licenses must be
issued to applicants with a majority shareholder stake
(>50%) from an Oakland census tract or police beat
heavily impacted by War on Drugs.

18. So, what about SF?