San Francisco County Municipal Code Art. 8A Cannabis Consumption Permits

Sec. 8A.1. Definitions. Sec. 8A.2. Permits for the On-Site Consumption of Cannabis. Sec. 8A.3. Cannabis Consumption Permit Types. Sec. 8A.4. Permit Applications and Awards. Sec. 8A.5. Payment of Annual License Fee. Sec. 8A.6. Operating Standards. Sec. 8A.7. Administrative Penalties; Permit Suspensions and Revocations; Notice of Violations; Hearing and Appeal. Sec. 8A.8. Rules and Regulations.

(a) Terms not defined in this Article 8A shall have the meaning attributed to them in Section 1602 of the Police Code. (b) As used in this Article 8A, the following words or phrases shall mean: “Designated Smoking Room” means a designated area on the Premises of a Cannabis Business where Customers may Smoke Cannabis. “Director” means the Director of the Department of Public Health, or his or her designee. “Permittee” means any person or business to whom a Cannabis Consumption Permit is issued under this Article 8A, and any authorized agent or designee of such person or business. “Pre-packaged Cannabis Product” means a Cannabis Product that is packaged by a cannabis business that holds a valid license from the state of California authorizing it to engage in the distribution or manufacture of Cannabis Products, and that is served to a customer in its original packaging. “Preparing” or “Preparation” means the heating, re-heating, or serving of Cannabis Products, and does not include cooking or infusing. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018)

It shall be unlawful to allow the Consumption of Cannabis or Cannabis Products on the Premises of a commercial business without obtaining and maintaining: (a) A permit therefor issued by the Department of Public Health; and (b) A Medicinal Cannabis Retailer, Cannabis Retailer, Cannabis Café, or Cannabis Microbusiness permit issued by the Office of Cannabis; and (c) A State Cannabis License. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026)

There are three types of permits available for the purpose of legalizing and regulating the Consumption of Cannabis Products on the Premises of commercial businesses: (a) Cannabis Consumption – Prepackaged Cannabis Products – No Preparation. A Permittee in possession of this permit type may allow the on-site Consumption of Pre-Packaged Cannabis Products but may not engage in the Preparation of Cannabis Products. (b) Cannabis Consumption – Limited Preparation of Cannabis Products. A Permittee in possession of this permit type may allow the on-site Consumption of Pre-Packaged Cannabis Products, and may also Prepare and allow the Consumption of Cannabis Products. (c) Cannabis Smoking. A Permittee in possession of this permit type may allow the on-site Smoking of Cannabis, and may also allow the Consumption of Pre-packaged Cannabis Products, and/or the Consumption of prepared Cannabis Products, subject to approval by the Director. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018)

(a) Every applicant for a Cannabis Consumption Permit shall file an application with the Director upon a form provided by the

Director and provide such additional information as may be required by the Director, in the exercise of his or her discretion. Every applicant shall pay a nonrefundable application fee, unless the applicant is eligible for a fee waiver or reduction, as authorized by ordinance. (b) A person may not file and the Director may not accept an application for a Cannabis Consumption Permit until after the Director has adopted rules, regulations, and/or guidelines to establish the minimum health and safety standards applicable to Permittees, as set forth in Section 8A.8. (c) Upon receipt of a complete application, the Director shall refer the application to the Planning Department, the Department of Building Inspection, and Fire Department (the “Referring Departments).1 The Referring Departments shall determine whether an inspection of the premises is warranted in light of the type of Cannabis Consumption Permit sought and any inspection history at the premises, and shall conduct inspections as may be required. Said departments shall advise the Director in writing whether they recommend approval or denial of the application for the Cannabis Consumption permit, and the basis for that recommendation. (d) Upon review of a complete application and consideration of the recommendations of the Referring Departments, the Director shall either grant or deny a permit, as specified in more detail in subsections (e) and (f) of this Section 8A.4. (e) In granting a permit, the Director may impose conditions as are, in his or her judgment, necessary to protect the health and safety of the Permittee’s employees and customers. (f) No Cannabis Consumption permit shall be issued if the Director finds that: (1) The applicant has provided materially false information or documents (which includes omitting material information or documents) in support of the application. (2) The applicant failed to submit a complete application and/or did not provide all of the information required in connection with the application. (3) The applicant has not demonstrated that it can meet the health and safety standards adopted by the Director under Section 8A.8. (4) The applicant for a Cannabis Smoking permit has not demonstrated to the Director’s satisfaction that the Designated Smoking Room meets or will meet the ventilation standards set forth in subsection (i) of Section 8A.6, or the ventilation standards set forth in subsection (g)(4) of this Section 8A.4, where applicable. (5) A Referring Department recommends that the application be denied and states a sound basis for such recommendation. (6) The on-site Consumption of Cannabis or Cannabis Products, if permitted, would not comply with all applicable laws, including but not limited to the Building, Planning, Housing, Police, Fire, and Health Codes, and the Medicinal and Adult Use Cannabis Regulation and Safety Act, 2017 Cal. Legis. Serv. Ch. 27 (S.B. 94), and its implementing regulations, as may be amended from time to time. (g) Notwithstanding anything in this Article 8A, a Medicinal Cannabis Retailer, Cannabis Retailer, or Cannabis Microbusiness that applies for a Cannabis Smoking Consumption Permit (“Cannabis Smoking Permit Applicant”) may allow Smoking on the Premises until such time as its application for a Cannabis Consumption permit has been approved or denied by the Director, provided that: (1) The Cannabis Smoking Permit Applicant previously held a permit to operate a Medical Cannabis Dispensary at the same location, issued by the Director under Article 33 of the Health Code, or demonstrates to the Director’s satisfaction that it had operated in compliance with the Compassionate Use Act of 1996, and was forced to discontinue operations as a result of federal prosecution or threat of federal prosecution; (2) The Cannabis Smoking Permit Applicant was not prohibited by the Planning Department, the Planning Commission, or the Director from allowing smoking on the premises of the formerly permitted Medical Cannabis Dispensary; (3) The Cannabis Smoking Permit Applicant submits its application for a Cannabis Smoking Consumption Permit not less than 30 days after such applications are made available by the Director; and (4) The Cannabis Smoking Permit Applicant demonstrates that it provides adequate ventilation within the structure such that doors and/or windows are not left open for such purposes resulting in odor emission from the premises. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) CODIFICATION NOTE

1. So in Ord. 230-17.

(a) The license fee for a Cannabis Consumption Permit shall be paid annually on or before March 31, in accordance with the provisions of Section 76.1 of the Business and Tax Regulations Code. (b) The annual license fee for a “Prepackaged Cannabis Products – No Preparation” Cannabis Consumption Permit shall be $800. (c) The annual license fee for a “Limited Preparation of Cannabis Products” Cannabis Consumption Permit shall be $1,000.

(d) The annual license fee for a “Cannabis Smoking” Cannabis Consumption Permit shall be $1,200. (e) Beginning with fiscal year 2018-2019, the annual license fees set pursuant to this Section 8A.5 may be adjusted each year on July 1, without further action by the Board of Supervisors. Not later than April 1 of each year, the Controller shall determine whether the current fees have produced or are projected to produce revenues sufficient to support the costs of licensing-related activities, and that the fees will not produce revenue that is significantly more than the costs of providing such services. The Controller shall, if necessary, adjust the fees upward or downward for the upcoming fiscal year as appropriate to ensure that the program recovers the costs of operation without producing revenue that is significantly more than such costs. The adjusted rates shall become operative on July 1. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 246-17, File No. 171153, App. 12/22/2017, Eff. 1/21/2018, Oper. 1/21/2018; Ord. 24-18, File No. 171311, App. 2/9/2018, Eff. 3/12/2018, Oper. 3/12/2018)

(a) No Permittee shall allow the on-site Consumption of Cannabis or Cannabis Products in a manner inconsistent with any permit condition imposed by the Director, or inconsistent with any rules, regulations, or guidelines promulgated by the Director under Section 8A.8. (b) Any employee or agent of the Department of Public Health may enter and inspect the Premises of a Permittee during business hours, without notice. (c) No Permittee shall authorize the on-site Consumption of Cannabis or Cannabis Products outside of the business’ operating hours, as such hours may be established by law or regulation or required as a condition of the permit. (d) Permittees shall post one or more notices of sufficient size, lettering, and prominence to advise customers that the Consumption of Cannabis Products on the sidewalk or in other areas adjacent to the Premises is prohibited. (e) Access to the area where the Consumption of Cannabis Products is allowed shall be restricted to persons 21 years of age and older, or persons 18 years of age and older if the Permittee is authorized to Sell Medicinal Cannabis Products. (f) Cannabis Consumption shall not be visible from any public place or any nonage-restricted area on the Premises. (g) The sale and Consumption of alcohol or tobacco products are not allowed on the Premises. (h) A Permittee shall comply with laws governing Cannabis Businesses and retail food establishments, including but not limited to the California Retail Food Code and Article 8 of the Health Code, where applicable. (i) A Designated Smoking Room must meet the following ventilation standards: (1) The Designated Smoking room must have a separate heating, ventilation, and air-conditioning (HVAC) system such that none of the air in the Designated Smoking Room will be recirculated into other parts of the Cannabis Business’ Premises. (2) 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. (3) Smoke from the Designated Smoking Room must not drift to other portions of the Premises. (4) 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. (5) The Designated Smoking Room must meet such other health and safety standards as are adopted by the Director under Section 8A.8 of this Article 8. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026)

REVOCATIONS; NOTICE OF VIOLATIONS; HEARING AND APPEAL. (a) Any Person who violates this Article 8A (which is deemed to include a violation of the rules, regulations, and guidelines adopted pursuant to this Article 8A) shall be subject to an administrative penalty imposed by order of the Director, not to exceed $1,000 for each violation, for each day such violation occurs. (b) The Director may revoke or suspend a Cannabis Consumption permit if the Director finds that the Permittee has engaged in conduct that violates this Article 8A or its implementing rules, regulations, and guidelines, or if the Director finds that the Permittee is being managed, conducted, or maintained in a way that threatens the health or safety of Customers, employees, or the public at large. (c) If the Director determines that a Cannabis Business is operating in violation of this Article 8A or rules, regulations, or guidelines

adopted pursuant to this Article, the Director shall issue a Notice of Violation to the Permittee. The Notice of Violation shall include the following information: the alleged act or failure to act that constitutes the basis for the Director’s determination; that the Director intends to take enforcement action against the Permittee, and the nature of that action, specifically, the administrative penalty to be imposed, additional permit conditions to be imposed, and/or suspension or revocation of the permit; and that the Permittee may request a hearing before the Director within 15 days after the Notice of Violation is mailed, to challenge the Director’s determination and/or the proposed enforcement action. (d) If no request for a hearing is timely filed with the Director, the right to request a hearing shall be deemed waived, and the Director’s determination shall become final and effective 15 days after the Notice of Violation was mailed. The failure of the Person on whom the Notice of Violation is served to request a hearing shall constitute a failure to exhaust administrative remedies and shall preclude the Person from obtaining judicial review of the validity of the enforcement action. (e) Upon a timely request for a hearing, the Director shall, within 15 days of the request, notify the requester of the date, time, and place of the hearing. (f) The Director shall conduct the hearing, or may designate a hearing officer who shall have the same authority as the Director to hear and decide the case. (g) An order after hearing to suspend or revoke a permit, or to impose additional permit conditions, may be appealed to the Board of Appeals in the manner prescribed in Article 1 of the Business and Tax Regulations Code; and such an order shall inform the recipient of this right to appeal. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018)

(a) The Director shall adopt rules, regulations, and/or guidelines to establish the minimum health and safety standards that businesses must maintain to be eligible to receive and maintain a Cannabis Consumption permit. Such health and safety standards shall be sufficient in the Director’s judgment to, among other things: protect the health and safety of consumers and employees of the cannabis business, prevent the ingestion of adulterated Cannabis Products, promote sanitary conditions in the Consumption and Preparation areas, and prevent food-borne diseases that might occur through unsafe food or Cannabis Product handling procedures. (b) The Director may adopt rules, regulations, and guidelines that are not inconsistent with this Article 8A, for the purpose of implementing and enforcing this Article. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018)