Chapter 5.80 — MEDICAL AND ADULT-USE CANNABIS DISPENSARY PERMITS

Footnotes: --- (8) ---

Editor's note— Ord. No. 13370, § 3, adopted May 17, 2016, amended Chapter 5.80 in its entirety to read as herein set out. Formerly, Chapter 5.80 pertained to similar subject matter, and derived from Ord. No. 13086, § 1, adopted July 26, 2011.

Editor's note— Ord. No. 13464, § 3, adopted November 28, 2017, changed the title of Chapter 15.80 from "Medical cannabis dispensary permits" to "Medical and adult-use cannabis dispensary permits."

The following words or phrases, whenever used in this Chapter, shall be given the following definitions:

A.

"Applicant" shall mean any individual or business entity that applies for a permit required by this Chapter.

B.

"Cannabis" or "Marijuana" shall have the same definition as Business and Professions Code Section 19300.5(f), as may be amended, which, as of March 2016, defines "cannabis" as all parts of the plant

Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound. Manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Health and Safety Code Section 11018, "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seeds of the plant which is incapable of germination. "Cannabis" does not mean "industrial hemp" as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code.

C.

"Cannabis" or "Retailer" shall mean a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale or in exchange for entrance to an event, to either adults over twenty-one (21) years of age, qualified patients or primary caregivers. This includes an establishment that delivers cannabis and cannabis products as part of a retail sale.

D.

"City Administrator" means the City Administrator of the City of Oakland or his/her designee.

E.

"Collective" means any association, affiliation, or establishment jointly owned and operated by its members, which facilitates the collaborative efforts of qualified patients and primary caregivers, as described in State law.

F.

"Commercial Zone" means any zone in the Planning Code with a name that contains the words "Commercial Zone."

G.

"Delivery" means the commercial transfer of cannabis or cannabis products from a dispensary to adults over twenty-one (21) years of age, a primary caregiver or qualified patient as defined in Section 11362.7 of the Health and Safety Code, or a testing laboratory. "Delivery" also includes the use by a dispensary of any technology platform that enables adults over twenty-one (21) years of age, qualified patients or primary caregivers to arrange for or facilitate the commercial transfer by a licensed dispensary of cannabis or cannabis products.

H.

"Non-storefront retailer" means a cannabis retailer that provides cannabis or cannabis products to adults over twenty-one (21) years of age, primary caregivers or qualified patients as defined in Section 11362.7 of the Health and Safety Code exclusively through delivery.

I.

"Equity Applicant" shall mean an Applicant whose ownership/owner:

Is an Oakland resident; and

In the last year, had an annual income at or less than eighty (80) percent of Oakland Average Medium Income (AMI) adjusted for household size; and

Either (i) has lived in any combination of Oakland police beats 2X, 2Y, 6X, 7X, 19X, 21X, 21Y, 23X, 26Y, 27X, 27Y, 29X, 30X, 30Y, 31Y, 32X, 33X, 34X, 5X, 8X and 35X for at least ten (10) of the last twenty (20) years or (ii) was arrested after November 5, 1996 and convicted of a cannabis crime committed in Oakland, California.

J.

"General Applicant" shall mean an Applicant other than an Equity Applicant.

K.

"Industrial Zone" means any zone in the Planning Code with a name that contains the words "Industrial Zone."

L.

"Medical Marijuana" or "Medical Cannabis" means marijuana authorized in strict compliance with Health and Safety Code Sections 11362.5, 11362.7 et seq., as such sections may be amended from time to time.

M.

"Ownership" shall mean the individual or individuals who:

(i)

With respect to for-profit entities, including without limitation corporations, partnerships, limited liability companies, has or have an aggregate ownership interest (other than a security interest, lien, or encumbrance) of fifty (50) percent or more in the entity.

(ii)

With respect to not for-profit entities, including without limitation a non-profit corporation or similar entity, constitutes or constitute a majority of the Board of Directors.

(iii)

With respect to collectives, has or have a controlling interest in the collective's governing body.

N.

"Parcel of Land" means a single contiguous parcel of real property as identified by the county assessor's parcel number (APN), which is used to identify real property and its boundaries for legal purposes.

O.

"Premises" shall have the same definition as California Business and Professions Code Section 26001, as may be amended, which as of March 2018, defines "Premises" as "the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted" but shall be construed to mean the portion of a property or structure where the commercial cannabis activity will be or is conducted.

P.

"Primary Caregiver" shall have the same definition as California Health and Safety Code Section 11362.7, as may be amended, which, as of March 2016, defines "Primary Caregiver" as an individual designated by a qualified patient or by a person with an identification card, who has consistently assumed responsibility for the housing, health, or safety of that patient or person, and may include a licensed health care facility, a residential care facility, a hospice, or a home health agency as allowed by California Health and Safety Code Section 11362.7(d)(1)—(3).

Q.

"Qualified Patient" shall have the same definition as California Health and Safety Code Section 11362.7 et seq., as may be amended, which, as of March 2016, means a person who is entitled to the protections of California Health and Safety Code Section 11362.5. For purposes of this Chapter, qualified patient shall include a person with an identification card, as that term is defined by California Health and Safety Code Section 11362.7 et seq.

R.

"Principal Street" means on interior lots, the street that abuts a lot. On corner lots and through lots, the principal street is the street that abuts the lot that is highest on the street hierarchy as defined in the Land Use and Transportation Element of the General Plan. Where streets have the same street hierarchy, the principal street shall be determined by the Zoning Administrator based on the street widths, traffic capacity, land uses, transit activity, bicycle and pedestrian uses, and control of intersections.

S.

"Smoking" shall have the same definition as Oakland Municipal Code Chapter 8.30, which as of March 2017 means "inhaling, exhaling, burning, or carrying any lighted cigar, cigarette, weed, or other combustible substance."

T.

"Youth Center" means a community or recreation facility that primarily serves persons eighteen (18) years or younger.

U.

"Work/Live" means permitted uses that fall under any of the following use activity or facility types of the Oakland Planning Code: Work/live unit (as defined in Subsection 17.73.040 B. in a CIX, IG, and IO Zone); or Work/live nonresidential facilities (as defined in Chapter 17.101E in a D-CE-5 Zone); or Live/work facilities (as defined in Chapters 17.65 and 17.101E in HBX and D-CE Zone); or Work/live nonresidential facilities (as defined in Chapters 17.65 and 17.101E in a D-CE-3 or D-CE-4 Zone); or Joint work and living quarters (as defined in Section 17.102.190); or Residentially-oriented joint living and working quarters (as defined in Section 17.102.195) or such unpermitted uses that involve a work and live component.

(Ord. No. 13775, § 2, 12-19-2023; Ord. 13478, § 3, 3-20-2018; Ord. 13464, § 3, 11-28-2017; Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

A.

Except for hospitals, research facilities, state licensed entities issued a special event permit under Section 9.52, or an entity authorized pursuant to Section 8.46.030, it is unlawful for any owner, operator, or association to own, conduct, operate, maintain, participate therein, or to cause or allow to be conducted, operated, or maintained, any dispensary, delivery or delivery only dispensary in or into the City unless there exists a valid business permit in compliance with the provisions of Chapter 5.02 and a permit issued under this Chapter. However, entities authorized under O.M.C. Chapter 8.46 must abide by the same requirements imposed herein on dispensaries.

B.

This Chapter, and the requirement to obtain a business permit, do not apply to the individual possession or cultivation of cannabis for personal use, nor does this Chapter and such requirement apply to the usage, distribution, cultivation or processing of cannabis by qualified patients or primary caregivers when such group is of three (3) or fewer individuals, and distributing, cultivating or processing the cannabis from a residential unit or a parcel of land. Such associations shall not be required to obtain a permit under Chapter 5.80, but must comply with applicable State law.

C.

The City Administrator shall issue no more than eight (8) new valid permits for the operation of dispensaries in the City per calendar year, with a minimum of half of the dispensary permits issued each calendar year issued to Equity Applicants. Delivery only dispensaries shall not be subject to these limits. Dispensary permits shall be issued through an equity permit process done in collaboration with the department of race and equity. No individual or entity shall have a direct or indirect interest in more than two (2) dispensary permits.

D.

In addition to the requirements specified in Section 5.02.020 for business permits, the application for a dispensary permit shall set forth the following information:

Unless the City Administrator in his/her discretion determines that the location will not impact the peace, order and welfare of the public evidence that the proposed location of such dispensary is not within six hundred (600) feet of a public or private school providing instruction in kindergarten or grades 1 to 12, inclusive (but not including any private school in which education is primarily conducted in private homes), another dispensary or youth center, unless the school or youth center moved into the area after the dispensary was issued a permit under this Chapter. The distance between facilities shall be measured via path of travel from the closest door of one (1) facility to the closest door of the other facility unless otherwise prescribed by state law. The proposed dispensary must be located in a commercial or industrial zone, or its equivalent as may be amended, of the City. The proposed delivery only dispensary must also be located in a Commercial or Industrial Zone, excluding the CN Neighborhood Center Commercial Zones and the D-BV Broadway Valdez District Commercial Zones, or their equivalent as may be amended, of the City. Delivery only dispensaries shall not occupy more than one thousand (1,000) square feet of ground floor storefront space in a building facing a Commercially zoned principal streets. The limitations on locations for delivery only dispensaries shall apply to those applicants who submit applications after the effective date of these amendments.

A plan of operations that will describe how the dispensary or delivery only dispensary will operate consistent with State law and the provisions of this Chapter, including but not limited to:

a.

Controls to ensure cannabis will be dispensed only to adults over twenty-one (21) years of age, qualified patients or primary caregivers, and

b.

Controls to acquire, possess, transport and distribute cannabis to and from State licensed cannabis entities.

A security plan, as a separate document, outlining the proposed security arrangements to deter and prevent unauthorized entrance into areas containing cannabis or cannabis products and theft of cannabis or cannabis products at the dispensary, in accordance with minimum security measures required by State law. The security plan shall be reviewed by the Police Department and the Office of the City Administrator and shall be exempt from disclosure as a public record pursuant to Government Code Section 6255(a).

A community beautification plan to reduce illegal dumping, littering, graffiti and blight and promote beautification of the adjacent community within fifty (50) feet of the dispensary or delivery-only dispensary.

If the applicant is an Equity Applicant, information documenting such status, as described in Section

Such other information deemed necessary to conduct any investigation or background check of the applicant, and for the City Administrator to determine compliance with this Chapter, the City's Municipal Code and Zoning Code.

a.

Background checks shall only apply to Dispensary and Delivery-Only Dispensary Applicants and they shall be limited to determining whether in the last seven (7) years an Applicant has been convicted or plead nolo contender or guilty to a violent offense or crime of fraud or deceit as defined by the City Administrator's administrative guidelines.

b.

Applicants with recent relevant convictions may still petition the City Administrator for reconsideration if they can demonstrate evidence of rehabilitation, such as participation in rehabilitative services and payment of restitution.

An applicant for a dispensary permit shall not be disqualified from receiving a permit under this Chapter on the ground that the applicant also operates or intends to operate in a cannabis-related field by providing additional, non-dispensary activities (such as cultivation).

E.

Applications for dispensaries shall be subject to a public hearing with public notice of the hearing in accordance with Section 5.02.050. While applications for delivery only dispensaries shall not be subject to a hearing requirement, such applications are subject to public notice and applicants must participate in a community meeting before the City Administrator issues a permit if the premises identified in the application are within three hundred (300) feet of a residential zone. This three-hundred-foot distance shall be determined via a straight line from the property line of the residential zone to the closest property line of the parcel on which the delivery only dispensary is to be located without regard to intervening structures. The City Administrator shall be the investigating official referred to in Section 5.02.030 to whom the application shall be referred. All general applicants shall pay an application fee, a permit fee, and all inspection and notification fees that may be required as part of the application process, as specified in the City's Master Fee Schedule. There shall be no application fee for equity applicants.

F.

All dispensary permits shall be special business permits and shall be issued for a term of one year. No property interest, vested right, or entitlement to receive a future license to operate a cannabis business shall ever inure to the benefit of such permit holder.

(Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 3, 11-28-2017; Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

A.

A dispensary must obtain a secondary onsite consumption permit in order for cannabis to be consumed on the premises of the dispensary.

B.

An onsite consumption permit may be issued at the discretion of the City Administrator to a permitted dispensary based on the operating history and business practices of the applicant, and/or any other factors that are deemed necessary to promote the peace, order and welfare of the public. An application for an onsite consumption permit may be denied for failure to meet requirements of the City Building Code, City Fire Code, City Planning Code, this chapter, and/or any violation of State or local law relevant to the operation of dispensaries. The application must specify whether or not consumption will include the combustion/smoking of cannabis and whether such use will occur at an indoor or outdoor location.

C.

The City Administrator shall establish conditions of approval for each onsite consumption permit, including, but not limited to, a parking plan, ventilation plan, anti-drugged driving plan, and set hours of operation. Set hours of operation may only be adjusted by submitting a written request to and obtaining approval from the City Administrator's Office.

Additionally, approval of an onsite consumption permit that allows for combustion/smoking at an indoor location is subject to the to the following requirements and shall be evaluated in consultation with the Fire Marshal and the Building Official:

A designated smoking room must have a separate heating, ventilation, and airconditioning (HVAC) system such that none of the air in the designated smoking room will be recirculated into other parts of the cannabis business' premises.

The air from a designated smoking room must be directly exhausted to the outdoors by a filtration system that, at a minimum, eliminates all odor and smoke.

Smoke from the designated smoking room must not drift to other portions of the premises.

The designated smoking room must be completely separated from the remainder of the premises by solid partitions or glazing without openings other than doors, and all doors leading to the designated smoking

room must be self-closing. All doors to the designated smoking room must be installed with a gasket to provide a seal where the door meets the stop.

A permittee with an onsite consumption permit may not require employees to enter the designated smoking room as a condition of their employment.

D.

The permit shall be subject to suspension or revocation in accordance with Section 5.80.070, and the owner/operator shall be liable for excessive police costs related to enforcement.

E.

The application fee and annual fee for the onsite consumption permit shall be specified in the City's Master Fee Schedule.

F.

All onsite consumption permits shall be special business permits and shall be issued for a term of one (1) year. No property interest, vested right, or entitlement to receive a future license to operate a cannabis business shall ever inure to the benefit of such permit holder as such permits are revocable at any time with our without cause by the City Administrator subject to Section 5.80.070.

(Ord. No. 13843, § 2, 5-20-2025; Ord. No. 13798, § 2, 6-18-2024; Ord. 13464, § 3, 11-28-2017; Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

A permit for a special event, as that term is defined in Chapter 9.52, involving the sale and/or consumption of cannabis, may be issued for the same location or the same individual or entity per calendar year. Such a permit shall be issued in accordance with State law and Chapter 9.52. This provision shall take effect January 1, 2024 and expire December 31, 2024.

On or after January 1, 2025, no more than twelve (12) permits for a special event, as that term is defined by Chapter 9.52, involving the sale and/or consumption of cannabis, may be issued for the same location or the same individual or entity per calendar year. Such a permit shall be issued in accordance with State law and Chapter 9.52.

(Ord. No. 13775, § 3, 12-19-2023; Ord. No. 13504, § 3, 10-2-2018)

Editor's note— Ord. No. 13775, § 3, adopted Dec. 19, 2023, amended the title of § 5.80.030 to read as herein set out. The former § 5.80.030 title pertained to special events.

The City Administrator shall establish administrative regulations for the permitting of dispensaries, delivery only dispensaries, and onsite consumption, and may set further standards for such operations and activities through administrative guidance and formal regulations. In order to maintain a dispensary or

delivery only dispensary permit in good standing, each dispensary and delivery only dispensary must meet all the operating criteria for the dispensing of cannabis required pursuant to State law, the City Administrator's administrative regulations, and this Chapter.

(Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 3, 11-28-2017; Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

Editor's note— See editor's note to § 5.80.030.

The City of Oakland shall not disclose any Applicant information to the federal government unless disclosure of such information is required by law including, but not limited to, a warrant, subpoena, or Court order. In addition, the City shall comply with the California Public Records Act (Government Code Section 5250 et seq.) and the City of Oakland's Sunshine Ordinance (Oakland Municipal Code Section 2.20.180 et seq.) and will protect privacy and safety to the extent permitted by law.

(Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 3, 11-28-2017)

Editor's note— See editor's note to § 5.80.030.

The City Administrator shall develop and implement performance and operating standards consistent with those set forth in Ordinance No. 12585 in the Office of the City Administrator Guidelines and shall modify such Guidelines from time to time as required by applicable law and consistent with public health, welfare and safety. Noncompliance of such operating standards shall constitute a breach of the permit issued hereunder and may render such permit suspended or revoked based upon the City Administrator's determination.

The following performance standards shall be included in the City Administrative regulations:

A.

No cannabis shall be smoked inside the premises of the dispensary except for the areas designated in an onsite consumption permit in good standing pursuant to Oakland Municipal Code Section 5.80.025.

B.

The dispensary shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages.

C.

Dispensaries must maintain a staff comprised of at least fifty (50) percent Oakland residents and twenty- five (25) percent Oakland residents in census tracts identified by the City Administrator as having high unemployment rates or low household incomes. The City Administrator's guidelines and regulations may provide details of these requirements, including for phasing in this requirement for existing facilities.

D.

Dispensaries and delivery only dispensaries that hire and retain formerly incarcerated current Oakland residents may apply for a tax credit or license fee reduction based on criteria established by the City Administrator.

E.

All dispensary employees and delivery only dispensary employees shall be paid a living wage as defined by O.M.C. Chapter 2.28.

F.

Dispensaries and delivery only dispensaries must implement a track and trace program as prescribed by state law that records the movement of cannabis and cannabis products in their custody and make these records available to the City Administrator upon request.

G.

No cannabis odors shall be detectable outside of the permitted facility.

H.

Delivery-Only dispensaries are not open to the public.

(Ord. No. 13843, § 3, 5-20-2025; Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 3, 11-28-2017; Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

Editor's note— See editor's note to § 5.80.030.

A.

Equity Criteria. Applicant ownership/owner must satisfy the following criteria:

Be an Oakland resident; and

In the last year, have had an annual income at or less than eighty (80) percent Oakland average median income (AMI) adjusted for household size; and

Either (i) has lived in any combination of Oakland Police Department Beats 2X, 2Y, 6X, 7X, 19X, 21X, 21Y, 23X, 26Y, 27X, 27Y, 29X, 30X, 30Y, 31Y, 32X, 33X, 34X, 5X, 8X and 35X for at least ten (10) of the last twenty (20) years; or (ii) was arrested after November 5, 1996 and convicted of a cannabis crime committed in Oakland, California.

B.

Review of Criteria.

Proof of Income shall be supported with federal tax returns and at least one (1) of 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, Medical/CALWORKs, or Supplemental Security Income or Social Security Disability (SSI/SSDI).

Residency must be for a total of ten (10) years in any combination of the designated Oakland police beats as set forth in Section 5.80.010 H.3. A minimum of two (2) of the documents listed below, evidencing ten (10) years of residency, shall be considered acceptable proof of residency. All residency documents must list the applicant's first and last name, and the Oakland residence address in the police beats set forth in Section 5.80.010 H.3:

• California driver's record; or

• California identification card record; or

• Property tax billing and payments; or

• Verified copies of state or federal income tax returns where an Oakland address within the police beats is listed as a primary address; or

• School records; or

• Medical records; or

• Banking records; or

• Oakland Housing Authority records; or

• Utility, cable or internet company billing and payment covering any month in each of the ten (10) years.

Proof of Conviction should be demonstrated through federal or state court records indicating the disposition of the criminal matter.

C.

Assistance. Equity Applicants will be eligible for participation in the Equity Assistance program, which will include industry specific technical assistance, business ownership technical assistance, no interest business start-up loans, grants, and waivers from City permitting fees. Equity applicants who previously met the income or residency requirements under Oakland Municipal Code Section 5.80.010 may receive equity assistance program services up to eight (8) years from the initial day they were verified as an equity applicant, regardless of their current income or residency.

D.

Initial Permitting Phase.

The period of time before the Equity Assistance Program referred to in O.M.C. 5.80.050(C), is established, funded and implemented shall be referred to as the Initial Permitting Phase.

At any point during the Initial Permitting Phase, a minimum of fifty (50) percent of all permits collectively issued under O.M.C. Chapters 5.80 and 5.81 shall be issued to Equity Applicants. This excludes the permits issued to the initial eight (8) dispensaries.

In the Initial Permitting Phase, a General Applicant will receive the next available General Applicant permit if it serves as an Equity Incubator by providing free real estate or rent to an Equity Applicant who obtains a cannabis permit. In order to receive this permitting priority, the General Applicant must also comply with the following conditions:

a.

The free real estate or rent shall be for a minimum of three (3) years.

b.

The Equity Applicant shall have access to a minimum of one thousand (1,000) square feet to conduct its business operations.

c.

The General Applicant must provide any City required security measures, including camera systems, safes, and alarm systems for the space utilized by the Equity Applicant.

d.

The General Applicant is otherwise compliant with all other requirements of O.M.C. Chapter 5.80 or 5.81.

If a General Applicant obtains a cannabis permit utilizing the Equity Incubator priority provisions of O.M.C.

and the Equity Applicant ceases its business operations, the General Applicant must:

a.

Notify the City Administrator within thirty (30) days of the Equity Applicant ceasing its business operations; and

b.

Re-apply for a cannabis permit subject to the permitting restrictions of this Chapter, including O.M.C.

Failure to notify the City Administrator, submit a new application and obtain a new cannabis permit as required under O.M.C. 5.80.050 D. is grounds for revocation and a violation of this Chapter.

E.

Transfer of Permit Issued to Equity Applicant.

Notwithstanding O.M.C. 5.02.070, an equity applicant may transfer their local authorization status or permit to a general applicant one (1) year after receipt of a cannabis permit or three (3) years after submitting a cannabis permit application, whichever occurs first.

The City Administrator may develop regulations to implement the transfer approval process.

(Ord. No. 13775, § 4, 12-19-2023; Ord. No. 13683, § 3, 4-19-2022; Ord. No. 13626, § 1, 12-1-2020; Ord. No. 13603, § 2, 6-20-2020; Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 3, 11-28-2017; Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

Editor's note— See editor's note to § 5.80.030.

A.

Unless exempted under O.M.C. 5.80.050, in addition to the dispensary application fee, the dispensary shall pay an annual regulatory fee. The dispensary shall post a copy of the dispensary permit and onsite consumption permit (if applicable) issued pursuant to this chapter in a conspicuous place in the premises approved as a dispensary at all times.

B.

The fees referenced herein shall be set by the Master Fee Schedule, as modified from time to time.

(Ord. No. 13504, § 3, 10-2-2018; Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

Editor's note— See editor's note to § 5.80.030.

Sales of cannabis that violate California law or this Chapter are expressly prohibited.

(Ord. 13464, § 3, 11-28-2017; Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

The City Administrator's decision to issue or deny a permit shall be subject to an appeal by the Applicant pursuant to Section 5.02.100, except that the appeal authorized in Section 5.02.100 shall be to an independent hearing officer and not the City Council. The request for an appeal must be made in writing within fourteen (14) days of the City Administrator's decision. The decision of the independent hearing officer shall be final and conclusive.

For suspensions or revocations of permits or local authorizations for temporary state licenses, the City shall follow the procedures set forth in Section 5.02.080, except that the City Administrator shall provide fourteen (14) days' notice of the hearing on the proposed action to suspend or revoke the permit. The appeal authorized in Section 5.02.080. shall be to an independent hearing officer, and such request for appeal must be made in writing within fourteen (14) days of the City Administrator's decision. The decision of the independent hearing officer shall be final and conclusive.

(Ord. No. 13504, § 3, 10-2-2018; Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

A.

Operation of a dispensary or delivery only dispensary in violation of California Health and Safety Code Section 11326.7, et seq., 11362.5, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and this Chapter are expressly prohibited. It is unlawful for any dispensary or delivery only dispensary in the City, or any agent, employee or representative of such dispensary or delivery only dispensary, to permit any breach of peace therein or any disturbance of public order or decorum by any tumultuous, riotous or disorderly conduct on the premises of the dispensary or during the delivery of cannabis.

B.

Except for uses established pursuant to Chapter 8.46, no use which purports to have distributed cannabis prior to the enactment of this chapter shall be deemed to have been a legally established use under the provisions of the Oakland Planning Code, this Code, or any other local ordinance, rule or regulation, and such use shall not be entitled to claim legal nonconforming status.

C.

Any violations of this chapter, including administrative regulations authorized by this chapter, may be subject to administrative citation, pursuant to Chapters 1.08 and 1.12, and other applicable legal, injunctive or equitable remedies.

(Ord. 13464, § 3, 11-28-2017; Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

A.

To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this chapter shall not become a personal liability of any public officer or employee of the City.

B.

To the maximum extent permitted by law, the permittees under this chapter shall defend (with counsel acceptable to the City), indemnify and hold harmless the City of Oakland, the Oakland City Council, and its respective officials, officers, employees, representatives, agents and volunteers (hereafter collectively called City) from any liability, damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings or judgment (including legal costs, attorneys' fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) (collectively called "action") against the City to attack, set aside, void or annual, any cannabis-related approvals and actions and comply with the conditions under which such permit is granted, if any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys' fees.

C.

Within ten (10) calendar days of the service of the pleadings upon the City of any action as specified in Subsection B. above, the permittee shall execute a letter of agreement with the City, acceptable to the Office of the City Attorney, which memorializes the above obligations. These obligations and the letter of agreement shall survive termination, extinguishment or invalidation of the cannabis-related approval. Failure to timely execute the letter of agreement does not relieve the applicant of any of the obligations contained in this section or any other requirements or performance or operating standards that may be imposed by the City.

(Ord. 13464, § 3, 11-28-2017; Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

A.

Permittees must provide the City Administrator with access to any licensed dispensary during normal business hours to verify compliance with this chapter.

B.

Permittees must provide the City Administrator with access to any and all financial information regarding the dispensary at any time, as needed to conduct an audit of the permittees under this chapter to verify tax compliance under Chapter 5.80 and/or gross receipts tax requirements.

C.

The City Administrator is authorized to examine the books, papers, tax returns and records of any permittee for the purpose of verifying the accuracy of any declaration made, or if no declaration was made, to ascertain the business tax due.

D.

The City Administrator is authorized to examine a person under oath, for the purpose of verifying the accuracy of any declaration made, or if no declaration was made, to ascertain the business tax, registration or permit fees due under this chapter. In order to ascertain the business tax, registration or permit fees due under this chapter, the City Administrator may compel, by administrative subpoena, the production of relevant books, papers and records and the attendance of all persons as parties or witnesses.

E.

Every permittee is directed and required to furnish to the City Administrator, the means, facilities and opportunity for making such financial examinations and investigations.

F.

Any permittee refusal to comply with this section shall be deemed a violation of this chapter, and administrative subpoenas shall be enforced pursuant to applicable law.

(Ord. No. 13424, § 3, 3-28-2017; Ord. No. 13370, § 3, 5-17-2016)

A.

Any permit issued under Oakland Municipal Code Chapters 5.80 and 5.81 may be utilized for medical or adult-use purposes as authorized by the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) provided the permit holder abide by the performance and operating standards promulgated by the City Administrator, which may contain distinct requirements for medical and adult-use operations. This authorization to conduct both medical and adult-use operations does not relieve an operator from all applicable tax obligations, including paying different tax rates for medical and adult-use activities.

B.

Permittees under Oakland Municipal Code Chapters 5.80 and 5.81 must notify the City Administrator, in a form determined by the City Administrator, whether they wish to conduct medical, adult-use or both activities prior to operating or renewing a permit. Permittees who wish to add or amend their cannabis operations must notify the City Administrator, in a form determined by the City Administrator, and the City Administrator shall grant said request after determining said permittee is in good standing with this Chapter and other relevant local or state requirements.

(Ord. 13464, § 3, 11-28-2017)

A.

For the purpose of qualifying for a temporary state license to conduct commercial cannabis activity pursuant to California Business and Professions Code Section 26050.1, the City Administrator shall only provide local authorization to the following:

Individuals or entities that have been issued a permit under Oakland Municipal Code Chapters 5.80 and 5.81.

Applicants with a pending application pursuant to Oakland Municipal Code Chapters 5.80 or 5.81 who have been approved by the Planning Department and Revenue Management Bureau.

B.

Temporary permits shall only be issued to applicants meeting the requirements of Oakland Municipal Code Section 5.80.120 A.2 above, and in compliance with the processing of permits during the Initial Permitting Phase of the Equity Permit Program, such that at any point in time a minimum of fifty (50) percent of all Applicants authorized under Oakland Municipal Code Sections 5.80.120 A.2 and 5.81.140 A.2 shall be issued to Equity Applicants. Likewise, a General Applicant that serves as an Equity Incubator will receive the next available General Applicant local authorization under Oakland Municipal Code Sections 5.80.120 A.2 and 5.81.140 A.2.

C.

Local authorization for Applicants under Oakland Municipal Code Sections 5.80.120 A.2 and 5.81.140 A.2 shall be provided based on the timing of the approvals received by the Planning Department and Revenue Management Bureau and the restrictions described under Oakland Municipal Code Sections 5.80.120 B and 5.81.140 B.

Nothing herein shall be construed to have the Planning Department or Revenue Management Bureau precondition any approval on the actions of another City Department. The Planning Department and Revenue Management Bureau are to act independently as quickly as practical to approve permit applicants. Approval from the Revenue Management Bureau shall be granted if the Applicant has a current business license. The foregoing includes businesses that are in the process of disputing taxes owed to the City of Oakland through the Revenue Management Bureau's formal appeals process.

(Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 3, 11-28-2017)

A.

No permit or local authorization shall be issued under O.M.C. Chapters 5.80 or 5.81 to a cannabis applicant at premises where either:

Work/Live use existed as of March 6, 2018; or

Residential use existed as of March 6, 2018.

In both the foregoing, this applies irrespective of any subsequent reconfiguration of the premises.

B.

A permit or local authorization may be issued under O.M.C. Chapters 5.80 or 5.81 to a cannabis applicant utilizing different premises within a parcel of land that also contains Work/Live or residential uses, so long as the cannabis applicant mitigates potential impacts, if possible, as directed by the City Administrator, Fire Marshall, and/or Building Official, including any mitigations required by the Fire Marshall and/or Building Official, and so long as volatile manufacturing may only take place in a separate building with approval of the Fire Marshall and Building Official and under such mitigations as they or the City Administrator may require.

C.

The City Administrator may develop further guidelines and operating standards to implement this Section.

(Ord. 13478, § 3, 3-20-2018)