Chapter 5.81 — MEDICAL AND ADULT-USE CANNABIS CULTIVATION, MANUFACTURING AND OTHER

FACILITY PERMITS[9]

Footnotes: --- (9) ---

Editor's note— Ord. No. 13371, § 3, adopted May 17, 2016, amended Chapter 5.81 in its entirety to read as herein set out. Formerly, Chapter 5.81 pertained to medical cannabis cultivation facility permits, and derived from Ord. No. 13033, § 3, adopted July 27, 2010.

Editor's note— Ord. No. 13464, § 4, adopted November 28, 2017, changed the title of Chapter 15.81 from "Medical cannabis cultivation, manufacturing and other facility permits" to "Medical and adult-use cannabis cultivation, manufacturing and other facility permits."

A.

The City Council, based on evidence presented to it in the proceedings leading to the adoption of this chapter hereby finds that the lack of regulation of medical cannabis facilities other than cannabis dispensaries, including unregulated cultivation, manufacturing and processing of cannabis in the City has caused and is causing ongoing impacts to the community. These impacts include disparities in enforcement of drug laws, damage to buildings containing indoor cannabis cultivation facilities, including improper and dangerous electrical alterations and use, inadequate ventilation leading to mold and mildew, increased frequency of home-invasion robberies and similar crimes, and that many of these impacts have fallen disproportionately on residential neighborhoods. These impacts have also created an increase in response costs, including code enforcement, building, fire, and police staff time and expenses.

B.

The City acknowledges that the voters of the State have provided an exemption to prosecution for the cultivation, possession of cannabis for medical purposes under the Compassionate Use Act (CUA), but that the CUA does not address land use or building code impacts or issues arising from the resulting increase in cannabis cultivation within the City.

C.

The City acknowledges that sales of cannabis are subject to taxation by both the City and the State and that the California State Board of Equalization (BOE) is also requiring that businesses engaging in such retail transactions hold a seller's permit.

D.

The primary purpose and intent of this Chapter is to regulate non-dispensary cannabis facilities, including the cultivation of cannabis, in a manner that protects the public health, safety and welfare of the community, as authorized by the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).

(Ord. 13464, § 3, 11-28-2017; Ord. No. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, adopted May 17, 2016)

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

A.

"Applicant" as used only in this chapter shall be any individual or business entity that applies for a permit required under this chapter.

B.

"Batch" as used only in this chapter shall be defined by the City Administrator to mean a discrete quantity of dried cannabis produced and sold together.

C.

"Cannabis" or "Marijuana" as used only in this chapter shall be the same, and as may be amended, as is defined in Section 5.80.010.

D.

"Cannabis concentrate" as used only in this chapter shall mean manufactured cannabis that has undergone a process to concentrate the cannabinoid active ingredient, thereby increasing the product's potency.

E.

"Cannabis Dispensary" as used only in this chapter shall be the same, and as may be amended, as is defined in Section 5.80.010 and is also referred to herein as "dispensary."

F.

"City Administrator" as used only in this chapter shall mean the City Administrator for the City of Oakland and his or her designee.

G.

"Cultivate" as used only in this chapter shall mean to plant, grow, harvest, dry, cure, grade or trim cannabis in an area greater than two-hundred and fifty square feet of total area within one parcel of land.

H.

"Distribute" as used only in this chapter shall mean the procurement, sale, and transport of cannabis and medical cannabis products between State licensed cannabis entities.

I.

"Edible cannabis product" as used only in this chapter shall mean manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum.

J.

"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 of the last twenty years or (ii) was arrested after November 5, 1996 and convicted of a cannabis crime committed in Oakland.

K.

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

L.

"Infuse" as used only in this Chapter shall mean to produce edible cannabis products or topical products through means other than extraction.

M.

"Manufactured Cannabis" as used only in this Chapter shall mean raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product.

N.

"Manufacture" as used only in this Chapter shall mean to produce, prepare, propagate, or compound manufactured cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis.

O.

"Medical Cannabis Collective" as used only in this Chapter shall be the same, and as may be amended, as is defined in Section 5.80.010.

P.

"Medical Marijuana" or "Medical Cannabis" as used only in this Chapter shall be the same, and as may be amended, as is defined in Section 5.80.010.

Q.

"Ownership" as used only in this Chapter 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.

R.

"Package" as used only in this Chapter shall mean to package or repackage cannabis products or label or relabel cannabis product containers or wrappers.

S.

"Parcel of Land" as used only in this Chapter shall be the same, and as may be amended, as is defined in

T.

"Permittees" as used only in this Chapter are individuals or businesses that have obtained a permit under this Chapter to cultivate, distribute, manufacture, test or transport.

U.

"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.

V.

"Primary Caregiver" as used only in this Chapter shall be the same, and as may be amended, as is defined in Section 5.80.010.

W.

"Qualified Patient" as used only in this Chapter shall be the same, and as may be amended, as is defined in

X.

"Testing" as used only in this Chapter shall mean the conducting of analytical testing of cannabis, cannabis-derived products, hemp, or hemp-derived products.

Y.

"Topical Cannabis" as used only in this chapter shall mean a product intended for external use such as with cannabis-enriched lotions, balms and salves.

Z.

"Transport" as used only in this Chapter means the transfer of medical cannabis or medical cannabis products from the permitted business location of one (1) licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity, as defined by State law.

AA.

"Transporter" as used only in this Chapter means a person licensed to transport medical cannabis or medical cannabis products between State-licensed medical cannabis facilities.

BB.

"Volatile Solvents" as used only in this Chapter shall mean those solvents used in the cannabis manufacturing process determined to be volatile by the California Department of Public Health or Oakland Fire Department.

CC.

"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 residential 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 living and work 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. 13504, § 3, 10-2-2018; Ord. 13478, § 3, 3-20-2018; Ord. 13464, § 3, 11-28-2017; Ord. No. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, adopted May 17, 2016)

A.

Except for hospitals and research facilities that obtain written permission for cannabis cultivation under federal law, it is unlawful to cultivate, distribute, manufacture, test or transport without a valid business permit issued pursuant to the provisions of this chapter. Possession of other types of State or City permits or licenses does not exempt an applicant from the requirement of obtaining a permit under this chapter.

B.

The City Administrator shall issue, as detailed below, special business permits forcannabis cultivation, distributing, manufacturing, testing and transporting. All General Applicants shall pay any necessary fees including without limitation application fees, inspection fees and regulatory fees that may be required hereunder.

C.

All cultivation, distribution, manufacturing, testing and transporting 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.

D.

Cultivation, distribution, manufacturing, testing, and transporting permits shall only be granted to entities operating legally according to State law.

E.

More than one cannabis operator may situate on a single parcel of land, however, each operator will be required to obtain a permit for their applicable permit category.

F.

No proposed use under this Chapter shall be located within a six hundred (600) feet of any public or private school providing instruction in kindergarten or grades one (1) to twelve (12), inclusive (but not including any private school in which education is primarily conducted in private homes) unless the school moved into the area after the cannabis use 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.

G.

An applicant for a permit under this chapter shall not be disqualified from receiving a permit on the ground that the applicant also operates or intends to operate in an additional cannabis related field, such as a dispensary.

(Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 3, 11-28-2017; Ord. No. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, adopted May 17, 2016)

Editor's note— Ord. No. 13425, § 3, adopted March 28, 2017, changed the title of section 5.81.030 from "Permit required" to "Business permit and application required." The historical notation has been preserved for reference purposes.

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. 13464, § 4, 11-28-2017)

A.

Proposed cultivation, distribution, testing or transporting locations shall be in areas where "light manufacturing industrial," "research and development," or their equivalent use, is permitted by right under the Oakland Planning Code, as may be amended; provided, however, that no vested or other right shall inure to the benefit of any cultivation, distribution, testing or transporting facility permittee.

B.

In addition to the aforementioned location restrictions, these activities may locate at the same site of a dispensary permitted under Chapter 5.80. However, these activities may not locate along the street frontage where it may impede pedestrian oriented retail, reduce the size of the dispensary, operate without a dispensary, or operate under a project sponsor other than the dispensary.

C.

The maximum size of any areas of cultivation shall not exceed any limitations or restrictions set forth in State law.

(Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 4, 11-28-2017; Ord. No. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, adopted May 17, 2016)

A.

Proposed locations for manufacturing, packaging and infusion of cannabis products using nonvolatile solvents shall be in areas where "custom manufacturing industrial," or its equivalent use, is permitted by right under the Oakland Planning Code, as may be amended, or in residential zones if the manufacturing is compliant with the restrictions imposed on cottage food operators under the California Homemade Food Act, Chapter 6.1 (commencing with Section 51035) of Part 1 of Division 1 of Title 5 of the Government Code. Applicants seeking to engage in the production of infused edible cannabis products and topicals may be located in commercial zones where commercial kitchens are allowed.

In addition to the aforementioned location restrictions, these activities may locate at the same site of a dispensary permitted under Chapter 5.80. However, these activities may not locate along the street frontage where it may impede pedestrian oriented retail, reduce the size of the dispensary, operate without a dispensary, or operate under a project sponsor other than the dispensary.

B.

Proposed locations for manufacturing of cannabis products using volatile solvents shall be in areas where "general manufacturing industrial" or its equivalent use, is permitted by right under the Oakland Planning Code, as may be amended.

(Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 4, 11-28-2017; Ord. No. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, adopted May 17, 2016)

Editor's note— Ord. No. 13464, § 4, adopted November 28, 2017, changed the title of section 5.81.045 from "Manufacturing of medical marijuana" to "Manufacturing of cannabis." The historical notation has been preserved for reference purposes.

A.

All General applicants shall pay an application fee as specified in the Master Fee Schedule. There shall be no application fee for Equity Applicants.

B.

All applicants shall submit written information to the City Administrator that shall include, as applicable, plans for security, odor mitigation, waste disposal, pest management, product testing, worker safety and compensation, local hiring, non-diversion of product, facility location, applicant complaint history, criminal background checks, plan for minimizing environmental impacts, compliance with City building and fire codes, and any additional information deemed necessary by the City Administrator. The City Administrator may design application forms specific to each permitted category and require inspections of proposed facilities before issuing a permit under this chapter.

Background checks shall only apply to 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.

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.

C.

The City Administrator shall establish criteria for minimizing the carbon footprint, environmental impact and resource needs of permitted facilities. Applicants that demonstrate they can satisfy these environmental criteria, such as cultivators seeking to operate greenhouse facilities, will be given preference in the processing of their application.

D.

All applicants shall demonstrate compliance with State law, during the course of the permit application procedure described under this section, prior to issuing any permit, and upon the issuance of a permit, thereafter.

E.

Applications for cannabis uses that identify premises located within three hundred (300) feet of a residential zone shall be subject to public notice and applicants must participate in a community meeting before the City Administrator issues a permit. 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 cannabis use 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 subject to this public hearing requirement shall pay any additional public noticing fees. There shall be no application fee for equity applicants.

(Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 4, 11-28-2017; Ord. No. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, 5-17-2016)

A.

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

Is an Oakland resident; and

In the last year, had an annual income at or less than eighty (80) perfect 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 of the last twenty 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 5.81.020 J.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 5.81.020 J.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 no longer satisfy the income or Oakland residency restrictions outlined in the definition of an equity applicant in O.M.C. 5.80.010 may still receive equity assistance program services up to eight (8) years from the initial date they were verified as an equity applicant.

D.

Initial Permitting Phase.

The period of time before the Equity Assistance Program referred to in O.M.C. 5.81.060(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.

a.

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

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, § 5, 12-19-2023; Ord. No. 13683, § 4, 4-19-2022; Ord. No. 13626, § 1, 12-1-2020; Ord. No. 13603, § 3, 6-30-2020; Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 4, 11-28-2017; Ord. No. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, 5-17-2016)

A.

Facilities permitted under this Chapter shall not be open to the public. The City Administrator shall establish operating and performance standards as well as administrative regulations for permittees under this Chapter. The City Administrator may set further standards for such operations and activities through administrative guidance and formal regulations. In order to maintain a permit in good standing, operators under this Chapter must meet all the operating criteria for the required pursuant to State law, the City Administrator's administrative regulations, and this Chapter. The intent of these operating and performance standards is to minimize any negative effects and enhance the benefits of permitted facilities on the surrounding community.

B.

The following standards shall be included in the City Administrator's regulations:

No cannabis or cannabis odors shall be detectable by sight or smell outside of a permitted facility.

Permitted facilities must install security cameras capable of documenting activity inside and outside the facility, as determined by the Oakland Police Department.

Permitted facilities must implement 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 cannabis facility.

Permitted facilities that hire and retain formerly incarcerated Oakland residents may apply for a tax credit or license fee reduction based on criteria established by the City Administrator.

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

Permitted facilities 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.

C.

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.

(Ord. No. 13504, § 3, 10-2-2018; Ord. 13464, § 4, 11-28-2017; Ord. No. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, adopted May 17, 2016)

A.

The City Administrator shall be provided access to any licensed cannabis cultivation, manufacturing, and other facility during normal business hours to verify compliance with this chapter.

B.

The City Administrator shall be provided access to any and all financial information at any time, as needed to conduct an audit of the permittees under this chapter to verify tax compliance under Chapter 5.81

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.

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.

D.

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

E.

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. 13504, § 3, 10-2-2018; Ord. 13464, § 4, 11-28-2017; Ord. No. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, adopted May 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 strictly 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. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, adopted May 17, 2016)

A collective or cooperative of qualified patients or primary caregivers, may cultivate medical cannabis covering an area of no more than two hundred fifty (250) square feet inside a residential unit or if in a nonresidential building on one (1) parcel of land.

Adults twenty-one (21) years or older may also cultivate up to six (6) plants within a single private residence, or upon the grounds of a private residence.

In the absence of a permit under this Chapter, such cultivation shall be subject to the following operating standards:

A.

Cultivation, processing, possession, and/or manufacturing of cannabis in any residential areas shall be limited to adults twenty-one (21) years or older, qualified patients, primary caregivers, and medical cannabis collectives or cooperatives comprised of no more than three (3) qualified patients and/or their primary caregivers. Every member of the medical cannabis collective or cooperative shall possess an identification card issued by the County of Alameda, or the State of California, or another agency recognized by the City pursuant to California Health and Safety Code Section 11362.7 et seq.

B.

The indoor cultivation, processing, possessing, and/or manufacturing of cannabis in residential areas shall conform to the following standards:

The residential facility shall remain at all times a residence with legal and functioning cooking, sleeping and sanitation facilities. Cannabis cultivation, processing, possession, and/or manufacturing shall remain at all times secondary to the residential use of the property;

Cultivation possession, processing and/or manufacturing of cannabis in residential areas shall occur only in a secured residence occupied by the qualified patient or primary caregiver;

No individual residential facility or other facility housing the cultivation, processing and/or manufacturing of cannabis shall contain more than two hundred and fifty (250) square feet of cultivation area;

If required by the building or fire code, the wall(s) adjacent to the indoor cultivation area shall be constructed with 5/8" Type X fire resistant drywall;

The cultivation area shall be in compliance with the current adopted edition of the California Building Code;

The cultivation area shall not adversely affect the health or safety of the residence or nearby properties through creation of mold, mildew, dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, or other impacts, or be hazardous because of the use or storage of materials, processes, products or wastes;

All high amperage electrical equipment (exceeding six (6) amps) used in the cultivation of medical cannabis, (e.g., lighting and ventilation) shall be plugged directly into a wall outlet or otherwise hardwired; the use of extension cords to supply power to high amperage electrical equipment (exceeding six (6) amps) used in the cultivation of medical cannabis is prohibited;

Any electrical rewiring or remodeling shall first require an electrical permit from the City;

The use of butane gas products for personal use cannabis cultivation is prohibited; and

From a public right-of-way, there shall be no exterior evidence of medical cannabis cultivation occurring at the property.

(Ord. 13464, § 3, 11-28-2017; Ord. No. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, adopted May 17, 2016)

A.

Any cultivating, infusing, manufacturing, packaging, testing, or transporting without a permit under this Chapter is expressly prohibited. No use that purports to have cultivated, distributed, manufactured, tested or transported cannabis shall be deemed to have been a legally established use under the provisions of the Oakland Planning Code, the Oakland Municipal Code, or any other local ordinance, rule or regulation, and such use shall not be entitled to claim a vested right, legal nonconforming or other similar status.

B.

Any violations of 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. No. 13504, § 3, 10-2-2018; Ord. 13464, § 3, 11-28-2017; Ord. No. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, adopted May 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. 13425, § 3, 3-28-2017; Ord. No. 13371, § 3, adopted May 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. 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, § 4, 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 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 5.81.140 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 O.M.C. 5.80.120 B. and O.M.C. 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, § 4, 11-28-2017)

A.

General Limitations for Work/Live or Residential Uses. 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.

Limitations on Cultivation for Work/Live or Residential Uses. In addition to the restrictions described in Section (A), the City of Oakland shall not issue any permits or approvals for cannabis cultivation on the same parcel of land where either:

Work/live use existed as of June 1, 2023; or

Residential use existed as of June 1, 2023.

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

C.

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

(Ord. 13478, § 4, 3-20-2018; Ord. No. 13751, § 2, 7-1-2023)