San Francisco County Municipal Code Art. 16 Regulation of Cannabis

Sec. 1600. Findings and Purpose. Sec. 1601. Administration and Enforcement. Sec. 1602. Definitions. Sec. 1603. Permits Required. Sec. 1604. Equity Program. Sec. 1605. Transition Provision. Sec. 1606. Applications for Cannabis Business Permits. Sec. 1607. Cannabis Business Permits. Sec. 1608. Transfer of Permit; Portability of Permit; Sale of Cannabis Business; Change in Ownership; Interim Cannabis Business Permits. Sec. 1609. Permit Applications. Sec. 1610. Withdrawal of Application. Sec. 1611. Permittee’s Responsibility for Acts of Employees and Agents. Sec. 1612. Incorporation of Requirements of Local Approvals. Sec. 1613. Limits on Permits. Sec. 1614. Referral of Application to Departments and Agencies. Sec. 1615. Issuance and Denial of Cannabis Business Permits. Sec. 1616. Payment of Annual License Fee. Sec. 1617. Compliance with Permit Conditions. Sec. 1618. Eligibility and Operating Standards Applicable to All Cannabis Businesses. Sec. 1619. Prohibition on Entry by and Sales to Underage Persons; Prohibition on Misleading Business Names. Sec. 1620. Consumption of Cannabis and Cannabis Products on the Premises of Cannabis Businesses. Sec. 1621. Tours. Sec. 1621.5. Events. Sec. 1622. Deliveries of Cannabis and Cannabis Products to Customers. Sec. 1623. Cannabis Cultivation Facilities. Sec. 1624. Cannabis Manufacturing Facilities. Sec. 1625. Cannabis Testing Facilities. Sec. 1626. Cannabis Distributors. Sec. 1627. Cannabis Microbusinesses. Sec. 1628. Storefront Cannabis Retailers. Sec. 1628.5. Cannabis Cafés. Sec. 1629. Delivery-Only Cannabis Retailers. Sec. 1630. Inspections. Sec. 1631. Notice of Violation; Hearing and Appeal. Sec. 1632. Administrative Penalties and Enforcement Costs. Sec. 1633. Permit Suspensions and Revocations. Sec. 1634. Additional Administrative Enforcement Orders. Sec. 1635. Nuisance.

Sec. 1636. Enforcement by City Attorney. Sec. 1637. Public Health Education Campaign. Sec. 1638. Access to Summary Criminal History Information. Sec. 1639. Equity Incubator Employers’ Criminal History Inquiry. Sec. 1640. Undertaking for the General Welfare. Sec. 1641. Severability.

Editor’s Notes: The sections of this Article are numbered out of sequence with the other articles of this Code. Former Art. 16 (“Regulations for Motor Vehicles for Hire”) was repealed by Ord. 56-15, File No. 120967, approved May 8, 2015, effective June 7, 2015. For current provisions relating to vehicles for hire, see Transportation Code Article 1100. SEC. 1075. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) Editor's Note: For sections designated 1075.1 through 1075.14, see Article 15.7 above.

(Added by Ord. 303-08, File No. 081383, App. 12/16/2008; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) Editor's Notes: This Code includes two sections designated "1075.1." For the section entitled "Definition of Event Promoter," see Article 15.7 above. SEC. 1076. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 64-97, App. 3/6/97; Ord. 111-04, File No. 040343, App. 7/1/2004; Ord. 287-08, File No. 081340, App. 12/5/2008; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1077. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 106-99, File No. 990006, App. 5/7/99; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1078. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 15-06, File No. 051720, App. 1/20/2006; repealed by Ord. 45-11, File No. 101422, App. 3/10/2011) SEC. 1079. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 228-02, File No. 020678, App. 12/5/2002; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1080. [REPEALED.]

(Added by Ord. 562-88, App. 12/27/88; amended by Ord. 88-99, File No. 981443, App. 4/30/99; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1081. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 111-04, File No. 040343, App. 7/1/2004; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Ord. 181-06, File No. 060539, App. 7/14/2006; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1082. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1083. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1084. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1085. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1086. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1087. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1088. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 88-99, File No. 981443, App. 4/30/99; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

SEC. 1089. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; Repealed by Ord. 45-11, File No. 101422, App. 3/10/2011) SEC. 1090. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1091. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1092. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1093. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1094. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1095. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1096. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1097. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1098. [REPEALED.]

(Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 312, File No. 081009, App. 12/19/2008) SEC. 1099. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1100. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1101. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1102. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1103. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1105. [REPEALED.] (Added by Ord. 72-00, File No. 000416, App. 4/28/2000; repealed by Ord. 45-11, File No. 101422, App. 3/10/2011) SEC. 1107. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1108. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1109. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

SEC. 1110. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 45-11, File No. 101422, App. 3/10/2011) SEC. 1120. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1121. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 111-04, File No. 040343, App. 7/1/2004; Ord. 58-08, File No. 080231, App. 4/10/2008; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1122. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1123. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1124. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 366-98, App. 12/18/98; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1125. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 88-99, File No. 981443, App. 4/30/99; Ord. 100-04, File No. 040301, App. 6/4/2004; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1126. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1127. [REPEALED.]

(Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1135. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 245-91, App. 6/26/91; Ord. 114-96, App. 3/13/96; Ord. 213-97, App. 6/6/97; Ord. 188-98, App. 6/12/98; Ord. 136-00, File No. 000391, App. 6/16/2000; Ord. 84-02, File No. 011716, App. 5/31/2002; Ord. 228-02, File No. 020678, App. 12/5/2002; repealed by Ord. 45-11, File No. 101422, App. 3/10/2011)

(Added by Ord. 362-98, App. 12/18/98; amended by Ord. 228-02, File No. 020678, App. 12/5/2002; Ord. 204-03, File No. 030998, App. 8/8/2003; Ord. 256-03, File No. 031608, App. 11/7/2003; Ord. 26-08, File No. 071371, App. 3/6/2008; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 26-08, File No. 071371, App. 3/6/2008; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 26-08, File No. 071371, App. 3/6/2008; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1136. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1137. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 188-98, App. 6/12/98; Ord. 228-02, File No. 020678, App. 12/5/2002; Ord. 17-09, File No. 081505, App. 1/21/2009; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 228-02, File No. 020678, App. 12/5/2002; amended by Ord. 118-06, File No. 060708, App. 6/14/2006; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1138. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1139. [REPEALED.]

(Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1140. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1141. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1142. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 45-11, File No. 101422, App. 3/10/2011) SEC. 1143. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 312-08, File No. 081009, App. 12/19/2008; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1144. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1145. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 45-11, File No. 101422, App. 3/10/2011) SEC. 1146. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1147. [REPEALED.] (Added by Ord. 76-94, App. 2/18/94; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 76-94, App. 2/18/94; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 76-94, App. 2/18/94; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 76-94, App. 2/18/94; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 76-94, App. 2/18/94; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 76-94, App. 2/18/94; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 76-94, App. 2/18/94; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 363-98, App. 12/18/98; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 301-98, App. 10/9/98; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 365-98, App. 12/18/98; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1148. [REPEALED.] (Added by Ord. 64-97, App. 3/6/97; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 64-97, App. 3/6/97; amended by Ord. 246-97, App. 6/13/97; Ord. 105-99, File No. 982077, App. 5/7/99; Ord. 173-00, File No. 000798, App. 7/14/2000; Ord. 78-02, File No. 012131, App. 5/24/2002; Ord. 101-04, File No. 040302, App. 6/4/2004; Ord. 111-04, File No. 040343, App. 7/1/2004; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 64-97, App. 3/6/97; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 64-97, App. 3/6/97; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 64-97, App. 3/6/97; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 64-97, App. 3/6/97; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 27-04, File No. 032052, App. 2/19/2004; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1150. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1151. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1152. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1153. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

SEC. 1154. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1155. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1156. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1157. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1158. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1159. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 122-93, App. 4/29/93; repealed by Ord. 54-03, File No. 021885, App. 4/11/2003) SEC. 1160. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1161. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1165. [REPEALED.] (Added by Ord. 15-06, File No. 051720, App. 1/20/2006; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) (Former Sec. 1165 added by Ord. 562-88, App. 12/27/88; repealed by Ord. 15-06, File No. 051720, App. 1/20/2006) SEC. 1166. [REPEALED.]

(Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 287-08, File No. 081340, App. 12/5/2008) SEC. 1170. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 287-08, File No. 081340, App. 12/5/2008) SEC. 1171. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; repealed by Ord. 287-08, File No. 081340, App. 12/5/2008) SECS. 1175 - 1180. [REDESIGNATED.] (Renumbered as Secs. 1225 to 1230 by Ord. 287-08, File No. 081340, App. 12/5/2008) SECS. 1183 - 1183.40. [REPEALED.] (Repealed by Ord. 287-08, File No. 081340, App. 12/5/2008) SEC. 1185. [REPEALED.] (Added by Ord. 562-88, App. 12/27/88; amended by Ord. 106-99, File No. 990006, App. 5/7/99; Ord. 15-06, File No. 051720, App. 1/20/2006; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1186. [REPEALED.] (Added by Ord. 111-04, File No. 040343, App. 7/1/2004; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1187. [REPEALED.] (Added by Ord. 111-04, File No. 040343, App. 7/1/2004; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

(Added by Ord. 15-06, File No. 051720, App. 1/20/2006; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015) SEC. 1188. [REPEALED.] (Added by Ord. 111-04, File No. 040343, App. 7/1/2004; repealed by Ord. 56-15 , File No. 120967, App. 5/8/2015, Eff. 6/7/2015)

SEC. 1600. FINDINGS AND PURPOSE. (a) In 1996, the voters of California approved Proposition 215, The Compassionate Use Act, allowing persons in need of cannabis for specified medical purposes to obtain and use cannabis. (b) In 2001, the City adopted Resolution No. 955-01, declaring San Francisco to be a “sanctuary for medical cannabis.” In 2005, the City enacted Ordinance No. 275-05, Health Code Article 33, known as the Medical Cannabis Act, which implemented a local regulatory scheme for Medical Cannabis Dispensaries operating in San Francisco. (c) In 2006, the City enacted Ordinance No. 297-06, Administrative Code Chapter 96B, making cannabis offenses by adults the lowest law enforcement priority in San Francisco. (d) On August 29, 2013, in response to the number of states seeking to legalize cannabis, the United States Department of Justice issued a memorandum known as the Cole Memo, outlining federal cannabis enforcement priorities and specifying that the federal government would continue to rely on states and local law enforcement agencies to address cannabis activity through enforcement of their own narcotics laws. (e) The federal law enforcement priorities articulated in the Cole Memo align with many of San Francisco’s priorities including: preventing the distribution of cannabis to minors; preventing cannabis sales revenue from going to criminal enterprises, gangs, and cartels; preventing the diversion of cannabis from states where it is legal to other states; preventing state-authorized cannabis activity from being used as a cover or pretext for the trafficking of other illicit drugs or activity; preventing violence and use of firearms in the cultivation and distribution of cannabis; preventing drugged driving and the exacerbation of other adverse public health consequences associated with cannabis use; preventing the cultivation of cannabis on public lands and the attendant public safety and environmental dangers posed by cannabis production on public lands; and preventing cannabis possession or use on federal property. (f) On October 9, 2015, Governor Brown signed into law the Medical Marijuana Regulation and Safety Act (“MMRSA”), effective January 1, 2016, which established a comprehensive state licensing and regulatory framework for the cultivation, manufacturing, testing, distribution, transportation, dispensing, and delivery of medicinal cannabis, and which recognized the authority of local jurisdictions to prohibit or impose additional restrictions on commercial activities relating to medicinal cannabis. On June 27, 2016, Governor Brown signed into law Senate Bill 837, which amended MMRSA and renamed it the Medical Cannabis Regulation and Safety Act (“MCRSA”). (g) On November 8, 2016, the voters of California approved Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA), which legalized the nonmedicinal use of cannabis for adults 21 years of age and older, created a state regulatory, licensing, and taxation system for non-medicinal cannabis businesses, and reduced penalties for cannabis-related crimes. San Francisco voters approved Proposition 64 at a rate of 74.3%, compared to 57.1% in the state overall. (h) On November 9, 2016, Mayor Lee issued Executive Directive 16-05, entitled “Implementing Prop 64: Adult Use of Marijuana Act,” directing the Directors of Planning and Public Health, in collaboration with the San Francisco Cannabis State Legalization Task Force and other stakeholders, to lead the process of drafting the legislation required to fully and responsibly implement Proposition 64, including ordinances that address land use, local permitting, safety, and youth access. (i) On June 27, 2017, Governor Brown signed into law the Medicinal and Adult-Use Cannabis Regulations and Safety Act (MAUCRSA), effective immediately, reconciling MCRSA and Proposition 64, unifying the adult-use and medicinal cannabis markets within the same regulatory regime, and making explicit the protection of the public to be the highest priority for all state licensing authorities in exercising their licensing, regulatory, and disciplinary functions under MAUCRSA. Under MAUCRSA, local jurisdictions may adopt and enforce ordinances to further regulate cannabis businesses, including zoning and permitting requirements and prohibitions on certain types of businesses. (j) In 2015, the City enacted Ordinance No. 115-15, creating the San Francisco Cannabis State Legalization Task Force (“the Task Force”) to advise the Board of Supervisors, the Mayor, and other City departments on matters relating to the potential legalization of adult use cannabis. In December 2016, the Task Force submitted its Year I Report, and made recommendations related to Public Safety and Social Environment, Land Use and Social Justice, and Regulation and City Agency Framework for the City’s policymakers to consider. (k) The Board of Supervisors intends to establish a comprehensive regulatory framework for medicinal cannabis and adult use cannabis. In furtherance of this goal, the Mayor’s FY2017-2018 budget, approved by the Board through its enactment of Ordinance No. 156-17, included appropriations for the establishment of an Office of Cannabis to coordinate with City departments and state agencies to develop policies and regulate the local cannabis industry to ensure that local public health, safety, and social justice goals are met. In addition, in July 2017, the City enacted Ordinance No. 168-17, Administrative Code Chapter 2A, Article XXVI, to establish an Office of Cannabis; to authorize the Director of the Office of Cannabis to issue permits to cannabis-related businesses; and to require the Director to collect permit application and annual license fees following the enactment of an ordinance establishing the amounts of those fees. (l) In November 2017, the Office of Cannabis, the Office of the Controller, and the Human Rights Com

stablish an Office of Cannabis; to authorize the Director of the Office of Cannabis to issue permits to cannabis-related businesses; and to require the Director to collect permit application and annual license fees following the enactment of an ordinance establishing the amounts of those fees. (l) In November 2017, the Office of Cannabis, the Office of the Controller, and the Human Rights Commission authored a Cannabis Equity Report, a copy of which is on file with the Clerk of the Board of Supervisors in File No. 171042. Among other things, the Cannabis Equity Report acknowledged that the War on Drugs, which included racially disproportionate arrests and incarceration, had disastrous impacts in San Francisco, including generational poverty, community degradation, disruption of family structures, and the loss of educational and employment opportunities. The Cannabis Equity Report found that: (1) African Americans and Latinos in San Francisco have endured disproportionately higher felony drug arrests than persons of other races. (2) Recent efforts to decriminalize specific drug-related activities have helped to narrow those gaps, but people of color still interact with the justice system at a rate far higher than white people in San Francisco.

(3) Even at today’s much lower rates of arrest and conviction, large racial disparities persist. In 2016, African Americans in San Francisco experienced felony drug arrest rates 10 times higher than San Franciscans of other races, and 2.4 times higher than African Americans elsewhere in California. (4) Currently, Latino youth are twice as likely as African Americans, five times more likely than whites, and nearly 10 times more likely than Asian Americans to be arrested for a drug felony in San Francisco. (5) While Proposition 64 clears the way for people with a conviction history involving cannabis crimes to enter the cannabis industry, a past criminal history can still present significant challenges, such as accessing financing or signing a lease agreement. (m) The Board of Supervisors is committed to ensuring that the perspectives of communities that have been historically and disproportionately affected by federal drug enforcement policies are included and considered in all cannabis policy decisions. (n) The Board of Supervisors is committed to fostering equitable access to participation in the cannabis industry for San Francisco-based small businesses and individuals by promoting ownership and stable employment opportunities in the industry. (o) Through this Article 16, the Board of Supervisors intends to develop a regulatory framework that: reduces the illegal market for cannabis; minimizes the chances of social harm by protecting and promoting the health of all San Franciscans; limits youth access and exposure to cannabis and cannabis products; ensures safe consumption; maintains the City’s progressive clean air policies for residents, businesses, and their employees; creates equitable access to opportunities within the cannabis industry; and creates jobs and tax revenue for the City. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1601. ADMINISTRATION AND ENFORCEMENT. (a) This Article 16 shall be administered and enforced by the Office of Cannabis. The Director may adopt rules, regulations, and guidelines to carry out the provisions and purposes of this Article, including, but not limited to: operating guidelines designed to further the goals of reducing the illegal market for Cannabis and Cannabis Products, protecting and promoting the health of all San Franciscans, limiting youth access and exposure to Cannabis and Cannabis Products, ensuring safe consumption of Cannabis and Cannabis Products, and creating equitable access to opportunities within the Cannabis industry; hearing procedures; and standards for the imposition of administrative penalties, permit suspensions and permit revocations. The Director shall adopt rules, regulations, and guidelines to ensure that Storefront Cannabis Retailers and Delivery-Only Cannabis Retailers maintain and Sell an inventory of Medicinal Cannabis and Medicinal Cannabis Products that is sufficient in volume and variety to meet the diverse medical needs of qualified patients, including but not limited to guidelines addressing the availability of Cannabis flowers, and other specific forms of Cannabis or Cannabis Products. (b) The Director is authorized to enter into agreements with State Licensing Authorities to enforce Division 10 of the California Business and Professions Code and its implementing regulations, consistent with Section 26202 of the California Business and Professions Code. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1602. DEFINITIONS. As used in this Article 16, the following words or phrases shall mean: “A-license” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “A-licensee” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Adult Use Cannabis” means Cannabis or Cannabis Products intended for adults 21 years of age and over. “Applicant” means an Owner applying for a Cannabis Business Permit under this Article 16. "Bona Fide Labor Organization" means any organization or any agency or employee repre-sentation committee or any local unit thereof in which employees participate, and exists for the purpose, in whole or in part, of dealing with em-ployers concerning grievances, labor disputes, wages, hours of employment or conditions of work, which labor organization is not found to be or to have been financed in whole or in part, interfered with, dominated or controlled by the employer or any employer association. “Bona Fide Order” means an order for the delivery of Cannabis or Cannabis Products to a Customer that includes this information supplied by the Customer: (a) the Customer’s name and date of birth; (b) the date Delivery is requested and the address of the real property where the Customer would like the items Delivered; (c) an itemization of the Cannabis items proposed for Delivery and the amount, quantity, and/or volume of each such item; and (d) a statement that the Cannabis or Cannabis Product is not for the purpose of resale. “Bona Fide Proof of Identity and Age” means: (a) a valid document issued by a federal, state, or local government, or subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator’s license, that contains the name, date of birth, description of physical characteristics, and photo of the person; (b) a valid passport issued by the United States or by a foreign government; or (c) a valid

identification card issued to a member of the United States Armed Forces that includes a date of birth and a photo of the person. “Business Work Hours” means the total hours worked for a Cannabis Business by all workers, whether those workers are employed by the Cannabis Business or any subcontractor. “Cannabis” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Cannabis Business” means any of the following: Cannabis Café, Cannabis Cultivation Facility, Cannabis Manufacturing Facility, Cannabis Testing Facility, Cannabis Distributor, Cannabis Microbusiness, Medicinal Cannabis Retailer, Cannabis Retailer, or Delivery- Only Cannabis Retailer. “Cannabis Business Permit” means a permit to operate a specific type of Cannabis Business issued under this Article 16. “Cannabis Business Registration Period” means the period of time during which Persons wishing to apply for Cannabis Business Permits may register with the Office of Cannabis, as set forth in Section 1605 of this Article 16. “Cannabis Café” means a fixed place of business where Cannabis and/or Cannabis Products are Sold to Customers exclusively for the purpose of Consumption on the premises. “Cannabis Cultivation Facility” means a fixed place of business where Cannabis is Cultivated for Commercial purposes. “Cannabis Distributor” means a fixed place of business where Cannabis and/or Cannabis Products are Distributed for Commercial purposes between Cannabis Businesses holding State Cannabis Licenses. “Cannabis Manufacturing Facility” means a fixed place of business where Cannabis Products are Manufactured for Commercial purposes. “Cannabis Microbusiness” means a fixed place of business where Cannabis and/or Cannabis Products are Cultivated, Manufactured, Distributed, and Sold to Customers. “Cannabis Nursery” has the meaning set forth for the term “Nursery” in California Code of Regulations, Title 3, Division 8, Chapter 1, Sections 8000(w) and 8201(e), as amended from time to time. “Cannabis Products” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Cannabis Retailer” means a fixed place of business where Cannabis and/or Cannabis Products are Sold to Customers but does not include a Cannabis Café. “Cannabis Testing Facility” means a fixed place of business where Cannabis and/or Cannabis Products are tested for Commercial purposes. “Canopy” means the designated area(s) at a permitted Premises that will contain Mature Plants. “City” means the City and County of San Francisco. “Commercial” means undertaken for Compensation. “Commercial Cannabis Activity” includes the cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of Cannabis or Cannabis Products for Compensation, as provided for in this Article 16. “Commercial Vehicle” has the meaning set forth in Section 260 of the California Vehicle Code, as may be amended from time to time. “Compensation” means money or anything of value made as a payment, loan, advance, donation, contribution, deposit, forgiveness of debt, or gift. “Consuming” or “Consumption” means Smoking, eating, drinking, chewing, applying topically, or otherwise ingesting. “Cultivation” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Customer” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Delivery” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Delivery-Only Cannabis Retailer” means a fixed place of business from which Cannabis and/or Cannabis Products are Delivered and Sold to Customers. “Director” means the Director of the Office of Cannabis, or his or her designee. “Distribution” or “Distribute” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Hazardous material” has the meaning set forth in Section 1102 of the Health Code, as may be amended from time to time. “Hazardous materials plan” has the meaning set forth in Section 1102 of the Health Code, as may be amended from time to time. “Labor Peace Agreement” means an agreement between an Applicant and any Bona Fide Labor Organization that, at a minimum, prohibits such Bona Fide Labor Organization and members from engaging in picketing, work stoppages, boycotts, and any other economic

interference with the applicants’ business. As part of this Agreement, an Applicant also agrees not to disrupt efforts by such Bona Fide Labor Organization to communicate with, and attempt to organize and represent, the Applicant’s employees. The agreement shall provide such Bona Fide Labor Organization access at reasonable times to areas in which the Applicants’ employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. A Labor Peace Agreement shall not mandate a particular method of election or certification of a Bona Fide Labor Organization as an Applicant’s employees’ representative. “Local Resident” means an individual who is domiciled, as defined by Section 349(b) of the California Elections Code, within the City for at least seven days immediately prior to commencing work for a Cannabis Business. “M-license” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “M-licensee” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Manufacture” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Mature Plant” means a Cannabis plant that is flowering. “Medicinal Cannabis” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Medical Cannabis Dispensary” means a cooperative or collective operating under the authority of a permit issued by the Director of Health under Article 33 of the Health Code. “Medicinal Cannabis Retailer” means a fixed place of business where Medicinal Cannabis and/or Medicinal Cannabis Products are Sold to individuals who qualify under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis. “Office” means the Office of Cannabis or any successor office or agency. “Owner” means any of the following: (a) A Person with an aggregate ownership interest of 20% or more in the Person applying for a Cannabis Business Permit or a Permittee, unless the interest is solely a security, lien, or encumbrance; (b) The chief executive officer of a nonprofit or other entity; (c) A member of the board of directors of a nonprofit; or (d) A Person who will be participating in the direction, control, or management of the Person applying for a permit. “Permittee” means any Person to whom a Cannabis Business Permit is issued under this Article 16, and any authorized agent or designee of such Person. “Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other entity, or other group or combination acting as a unit. Person includes both the plural and singular. “Physician’s Recommendation” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Pre-Existing Non-Conforming Operator” means a Cannabis Business that engaged in Commercial Cannabis Activities relating to Medicinal Cannabis as of September 26, 2017, in a location where such activities were not authorized by or consistent with the Planning Code. “Premises” has the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Processing” means the drying, curing, trimming, or packaging of Cannabis. “Processing” does not include the growing, planting, or harvesting of Cannabis. “Referring Department” means any City department, agency, office, board, or commission that is required by this Article 16, or its implementing regulations, to review an Applicant’s application for a Cannabis Business Permit prior to issuance of such permit by the Director. “Security Guard” has the meaning set forth in Section 1060 of the Police Code, as may be amended from time to time. “Security Plan” means a plan that adequately addresses the safety of persons and property at Cannabis Businesses, developed in consultation with the Police Department, and approved as a condition of the Cannabis Business Permit by the Director. “Sell,” “sale,” and “to sell” have the meaning set forth in Section 26001 of the California Business and Professions Code, as may be amended from time to time. “Smoke” or “Smoking” has the meaning set forth in Section 11362.3 of the California Health and Safety Code, as may be amended from time to time. “State Cannabis License” means a license to engage in a Commercial Cannabis Activity, issued pursuant to Division 10 of the California Business and Professions Code.

“State Licensing Authority” means the state agency responsible for the issuance, renewal, or reinstatement of a State Cannabis License. “Storefront Cannabis Retailer” means either of the following: Medicinal Cannabis Retailer or Cannabis Retailer. “Temporary Cannabis Business Permit” means a Permit issued by the Director under Section 1605 of this Article 16 authorizing the Temporary Permit holder to engage in time-limited Commercial Activities. “Tobacco Products” has the meaning set forth in Section 19H.2 of the Health Code, as may be amended from time to time. “Volatile Solvent” has the meaning set forth in Section 26130(b) of the California Business and Professions Code, as may be amended from time to time. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 133-18, File No. 180321, App. 6/14/2018, Eff. 7/15/2018; Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 301-19, File No. 191174, App. 12/20/2019, Eff. 1/20/2020; Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026) SEC. 1603. PERMITS REQUIRED. (a) It shall be unlawful to engage in any Commercial Cannabis Activity or to operate a Cannabis Business within the City without obtaining and maintaining: (1) A permit therefor issued by the Office of Cannabis; (2) A license therefor issued by a State Licensing Authority pursuant to Division 10 of the California Business and Professions Code; and (3) Any such other licenses, permits, certifications, or registrations that may be required by State or City law. (b) It shall be unlawful for any Person to engage in any Commercial Cannabis Activity for which a permit has been granted under this Article 16 if such permit has been revoked, or during any period in which such permit is suspended. (c) If any license, permit, certification, or registration required for the operation of a Cannabis Business is denied, suspended, modified, revoked, or expired, the Cannabis Business and any Referring Department responsible for the action shall notify the Director of such action in writing within two business days. (d) It shall be unlawful for any Person who is required to surrender a permit upon the sale of a Cannabis Business, as required by Section 1608 of this Article 16, to fail to do so. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1604. EQUITY PROGRAM. (a) The Director, in consultation with the Human Rights Commission, shall implement an Equity Program designed to foster equitable access to participation in the cannabis industry, including equitable access to promotional and ownership opportunities in the industry. The Equity Program shall provide assistance to communities unfairly burdened by the War on Drugs, and shall be designed to ensure full and equal access to resources and opportunities made available as a result of Proposition 64. In particular, the Cannabis Equity Program shall provide support to individuals who have experienced social indicators that exacerbate inequities, and shall create strategies to uplift communities where those inequities have been concentrated. (b) Equity Applicants. The Equity Program shall offer priority permit processing, as provided in Section 1606, to an individual who meets the following Equity Criteria (“Equity Applicant”): (1) Is a natural person; (2) At the time of application, has assets, excluding non-liquid assets and retirement accounts, that do not exceed asset limits established by the Director; (3) Submits an application for a Cannabis Business Permit in any of the following capacities: (A) As the sole owner/operator of the Applicant; (B) As an individual with an ownership interest of at least 40% in the corporate Applicant, and who is also the Chief Executive Officer of the corporate Applicant; (C) As an individual with an ownership interest of at least 51% in the corporate Applicant; or (D) As the Executive Director or member of the board of directors of a not-for-profit Applicant where a majority of the members of the board of directors satisfy the requirements of subsections (b)(2) and (4) of this Section 1604; and (4) Meets three or more of the following additional criteria: (A) At the time of application, is a member of a household that earns no more than 80% of the San Francisco Area Median Income,

adjusted for household size; (B) During the period 1971-2016, was arrested for, convicted of, or adjudged to be a ward of the juvenile court for any crime under the laws of California or any other jurisdiction relating to the sale, possession, use, manufacture, or cultivation of Cannabis; (C) After 1995, either lost housing in San Francisco, as evidenced by eviction, foreclosure, or revocation of housing subsidy; resided in permanent supportive housing, as defined in Administrative Code Section 20.54.2, in San Francisco; stayed overnight at a Navigation Center, as described in Administrative Code Chapter 106, in San Francisco, for 90 non-consecutive days; stayed overnight at a Shelter, as defined in Administrative Code Section 20.41, in San Francisco, for 90 non-consecutive days; or resided in a City-funded Single Room Occupancy building; (D) Has a parent, sibling, or child who, during the period 1971-2016, was arrested for, convicted of, or adjudged to be a ward of the juvenile court for any crime under the laws of California or any other jurisdiction relating to the sale, possession, use, manufacture, or cultivation of Cannabis; (E) Attended a school under the jurisdiction of the San Francisco Unified School District for five years, either consecutively or in total, during the period 1971-2016; or (F) During the period 1971-2016, lived for at least five years, either consecutively or in total, in San Francisco census tracts where at least 17% of the households had incomes at or below the federal poverty level, as determined by the Director. For purposes of Section 1604(b)(3), an “ownership interest” in the corporate Applicant shall include a right, proportionate to the interest held, to share in the business’s profits, including dividends, distributions, or other payments; a right, proportionate to the interest held, to the proceeds of a sale of the business’s assets, liquidation of the business, merger of the business into another business, or another transaction that would signify the end of the original business; and a right, proportionate to the interest held, to vote on fundamental decisions relating to the business. (c) Equity Incubators. The Equity Program shall offer priority permit processing, as provided in Section 1606, to Equity Incubators. For purposes of this Article 16, an Equity Incubator is an Applicant that does not qualify as an Equity Applicant, but that submits with its Cannabis Business Permit application a Cannabis Equity Incubator Agreement in which it identifies no less than one Equity Applicant in which, or in whose Cannabis Business, the Equity Incubator and its Owner(s) have no ownership interest or profit-sharing arrangement; agrees to provide any such identified Equity Applicant commercial space and security resources or, in either or both cases, the fair market value of same on a continuous basis for a total of no less than three years, beginning at any time after the Director verifies that the Equity Applicant has received all necessary approvals to begin building out its commercial space for use as a Cannabis Business; and commits to comply with the following additional operating requirements on a continuous basis for no less than three years, beginning no later than the date the Equity Incubator begins its operation as a Cannabis Business: (1) Ensure that at least 30% of all Business Work Hours are performed by Local Residents. Business Work Hours performed by residents of states other than California shall not be considered in calculation of the number of Business Work Hours to which this requirement applies; (2) Ensure that at least 50% of the Equity Incubator’s employees satisfy the requirements of subsection (b)(4) of this Section 1604; (3) Provide a community investment plan demonstrating engagement with businesses and residents located within 500 feet of the site of the proposed Cannabis Business; (4) Provide the identified Equity Applicant, directly or indirectly, with community outreach services, security services for the Equity Applicant’s Premises, and any support necessary for the Equity Applicant to comply with the Good Neighbor Policy required in Section 1609(b)(19); and (5) Comply with one of the following additional operating requirements: (A) Submit to the Director for review and approval a written, actionable “Equity Incubator Plan” describing how the Equity Incubator will encourage and support the establishment and growth of Equity Applicants in which, or in whose Cannabis Business, the Equity Incubator Applicant and its Owner(s) have no ownership interest or profit sharing arrangement, including but not limited to any Equity Applicant identified in the Equity Incubator Plan, by, among other things, providing business plan guidance, operations consulting, personnel, or1 and/or technical assistance. The services listed in the Equity Incubator Plan must be enumerated, and include an estimated dollar value of those services. The aggregate dollar value of the services must equal or exceed the sum of (i) 10% of the rent for, or, if the Equity Incubator owns the Equity Incubator’s Premises, 10% of the rental market value of, the Equity Incubator’s Premises, and (ii) the annual total costs of security services at the Equity Incubator’s premises. On or before March 1 of each year, the Equity Incubator shall submit to the Director an annual report covering the prior calendar year, signed by both the Equity Incubator and the Equity Applicant, describing the services provided under this subsection (c)(5)(A); or (B) Provide an Equity Applicant in which, or in whose Cannabis Business, the Equity Incubator Applicant and its Owner(s) have no ownership interest or profit-sharing arrangement with rent-free commercial space either adjacent to the Equity Incubator’s Premises or off- site, in which the Equity Applicant may condu

cant, describing the services provided under this subsection (c)(5)(A); or (B) Provide an Equity Applicant in which, or in whose Cannabis Business, the Equity Incubator Applicant and its Owner(s) have no ownership interest or profit-sharing arrangement with rent-free commercial space either adjacent to the Equity Incubator’s Premises or off- site, in which the Equity Applicant may conduct its Cannabis Business. If such rent-free commercial space is provided off-site, the Equity Incubator must provide the greater of 800 square feet or the equivalent of at least 10% of the square footage of the Equity Incubator’s Premises. If such rent-free commercial space is provided adjacent to the Equity Incubator’s Premises, the Equity Incubator must provide either 800 square feet or the equivalent of at least 10% of the square footage of the Equity Incubator’s Premises. The Equity Incubator’s provision of this rent-free commercial space to an Equity Applicant may begin at any time after the Director verifies that the Equity Applicant has received all necessary approvals to begin building out its commercial space for use as a Cannabis Business, and the three-year minimum period in which the Equity Incubator must continue to provide rent-free space to the Equity Applicant shall be dated from the Equity Applicant’s earliest use of that rent-free space. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 301-19, File No. 191174, App. 12/20/2019, Eff. 1/20/2020; Ord. 176-21, File No. 210421, App. 10/29/2021, Eff. 11/29/2021)

CODIFICATION NOTE

1. So in Ord. 176-21. SEC. 1605. TRANSITION PROVISION. (a) Cannabis Business Registration. The Office of Cannabis shall initiate a Cannabis Business Registration Period in order to collect information from Persons wishing to apply for Cannabis Business Permits. During the Cannabis Business Registration Period, such Persons shall have the opportunity to register with the Office of Cannabis, and to provide such information as may be required by the Director, including but not limited to: (1) Information regarding the type(s) of Cannabis Business Permit(s) and State Cannabis License(s) for which they intend to apply in 2018; (2) Information about the location of the proposed Cannabis Business, including but not limited to proof that the property owner has authorized the use of the property as a Cannabis Business; (3) Copies of all applicable licenses, permits, certifications, and registrations issued by the City or the State and held by the Owner of the proposed business, including but not limited to Hazardous materials registrations, site permits, Business Registration Certificates, and/or Seller’s Permits; and (4) Such other information, documents, and/or attestations as the Director may deem necessary or appropriate for registration. (b) Registration a Condition of Eligibility for Temporary Cannabis Business Permit. Persons that do not register with the Office of Cannabis during the Cannabis Business Registration Period shall not be eligible to apply for or receive a Temporary Cannabis Business Permit, as set forth in subsection (d) of this Section 1605. (c) Medical Cannabis Dispensaries. (1) To ensure the continued availability of Medicinal Cannabis for individuals who qualify under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis, a Medical Cannabis Dispensary that holds a valid permit to operate from the Department of Public Health as of the effective date of this Article 16 may continue to operate as a Medical Cannabis Dispensary at the location identified in its Medical Cannabis Dispensary permit and consistent with the terms of Article 33 of the Health Code, provided that: (A) The Owner of the Medical Cannabis Dispensary provides the Office of Cannabis with information identifying the type(s) of

Cannabis Business Permits and State Cannabis Licenses for which the Owner intends to apply in 2018, and such other information as may be required by the Director; (B) The Owner of the Medical Cannabis Dispensary applies for and obtains a temporary or permanent State Cannabis License; (C) The Owner of the Medical Cannabis Dispensary applies for a Cannabis Business Permit within 30 days of the date that the Office of Cannabis makes such applications available; and (D) The Owner of a Medical Cannabis Dispensary agrees to surrender its Medical Cannabis Dispensary permit to the Department of Public Health upon being awarded a Cannabis Business Permit. (2) A Medical Cannabis Dispensary’s permit to operate, as issued under Article 33 of the Health Code, shall expire as a matter of law when it is surrendered to the Department of Public Health, as set forth in subsection (c)(1)(D) of this Section 1605, or upon the sunset of Article 33, whichever occurs sooner. (d) Temporary Cannabis Business Permits. The Office of Cannabis shall make applications available for Temporary Cannabis Business Permits for all permit categories other than Storefront Cannabis Retailers. In order to be eligible for a Temporary Cannabis Business Permit, an Applicant must do all of the following: (1) Submit an application, on a form to be prescribed by the Director; (2) Demonstrate compliance with the Cannabis Business Registration process set forth in subsection (a) of this Section 1605; (3) Demonstrate that as of September 26, 2017, the Applicant was engaging in Commercial Cannabis Activities relating to Medicinal Cannabis in the City and has continued to engage in such activities without interruption; (4) Demonstrate that the proposed Cannabis Business complies with the Planning Code; (5) Authorize and submit to the inspection of the proposed Premises by the Office of Cannabis, the Fire Department, the Department of Building Inspection, the Department of Public Health, and such other City departments, agencies, and offices as may be necessary to confirm that the proposed Cannabis Business will operate in compliance with law and with the applicable interim health and safety standards; (6) Acknowledge the obligation to pay any non-refundable application and/or inspection fees that the Office of Cannabis and/or the Referring Departments may impose in connection with the application for a Temporary Cannabis Business Permit; and (7) Demonstrate that the proposed Cannabis Business complies with applicable interim health and safety standards developed by the Director in consultation with the Department of Building Inspection, the Fire Department, the Police Department, and the Department of Public Health. The interim health and safety standards shall be sufficient to protect the health and safety of employees, neighbors, and

Customers of the proposed Cannabis Business, and to prohibit unlawful access to Cannabis and Cannabis Products by underage individuals. (e) Review, award, and denial of Temporary Cannabis Business Permits. The Director shall ensure that the Premises are inspected by all relevant City Departments, and shall review all documentation submitted by the Applicant for the Temporary Cannabis Business Permit in support of the application. If the application is incomplete, the Director shall advise the Applicant of the deficiencies, and give the Applicant 30 days in which to correct them. If the application is complete, the Director shall determine whether the Applicant has demonstrated compliance with subsection (d) of this Section 1605, and any implementing regulations. After determining whether the Applicant has met these standards, the Director shall either award, award with conditions, or deny the Temporary Cannabis Business Permit. (f) Appeal of Denial of Application for Temporary Cannabis Business Permit. The decision of the Director to award, award with conditions, or deny a Temporary Cannabis Business Permit may be appealed to the Board of Appeals in the manner prescribed in Article 1 of the San Francisco Business and Tax Regulations Code. (g) Activities Authorized by Temporary Cannabis Business Permit. A Temporary Cannabis Business Permit issued under this Section 1605 shall authorize the Permittee to engage in all of the activities authorized by a Cannabis Business Permit of the same category, as set forth in Sections 1623 - 1629 of this Article 16. (h) Duration. A Temporary Cannabis Business Permit issued under this Section 1605 shall be valid for a period of 120 days and may be extended for additional 120-day periods at the discretion of the Director. Notwithstanding the prior sentence, the Director shall not issue a new temporary permit after January 1, 2019, and shall not extend the term of a Temporary Cannabis Business Permit issued to an applicant for a Cannabis Business Permit under this Article 16 past December 31, 2024. (i) Temporary Cannabis Business Permit does not guarantee rights regarding a permanent permit. A Temporary Cannabis Business Permit does not obligate the Director to issue a permanent permit pursuant to Section 1615 of this Article 16, or create a vested right in the holder to either an extension of the temporary permit or to the granting of a subsequent permanent permit. (j) Duty to apply for permanent permit. A Person that is awarded a Temporary Cannabis Business Permit under this Section 1605 must apply for a Cannabis Business Permit, as set forth in Section 1606, within 30 days of when the Office of Cannabis makes applications for such permits available. The Director shall not accept applications for Temporary Cannabis Business Permits after making applications for Cannabis Business Permits available. (k) Registration of Pre-Existing Non-Conforming Operators. A Pre-Existing Non-Conforming Operator shall be eligible to receive technical assistance and apply for a Cannabis Business Permit, as set forth in Section 1606 of this Article 16, provided it registers with the Office of Cannabis during the Cannabis Business Registration Period and provides the following information and documentation: (1) Information regarding the type(s) of Commercial Cannabis Activities that the operator conducts; (2) Information regarding the type(s) of Cannabis Business Permit(s) and State Cannabis License(s) for which the operator intends to apply in 2018; (3) Demonstration that as of September 26, 2017, the operator was engaging in Commercial Cannabis Activities relating to Medicinal Cannabis in the City; (4) Copies of all applicable licenses, permits, certifications, and registrations issued by the City or the State and held by the Owner of the proposed business, including but not limited to Hazardous materials registrations, site permits, Business Registration Certificates, and/or Seller’s Permits; (5) An affidavit or declaration made under penalty of perjury by an Owner certifying that the Pre-Existing Non-Conforming Operator will not engage in Commercial Cannabis Activities in a location where such activities are not authorized by or consistent with the Planning Code; and (6) Such other information, documents, and/or attestations as the Director may deem necessary or appropriate for registration. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 279-18, File No. 181041, App. 11/20/2018, Eff. 12/21/2018; Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 274-19, File No. 190842, App. 11/27/2019, Eff. 12/28/2019; Ord. 198-21, File No. 210865, App. 11/5/2021, Eff. 12/6/2021; Ord. 222-22, File No. 221002, App. 11/4/2022, Eff. 12/5/2022) SEC. 1606. APPLICATIONS FOR CANNABIS BUSINESS PERMITS. (a) Except as provided in subsection (b) of this Section 1606, the Director shall issue Cannabis Business Permits only to Applicants that meet one or more of the following criteria: (1) Qualify as an Equity Applicant or an Equity Incubator; (2) Possess a valid permit to operate a Medical Cannabis Dispensary issued pursuant to Article 33 of the Health Code prior to the effective date of the ordinance, in Board File Number 171042, establishing this Article 16; (3) Were issued a Temporary Cannabis Business Permit under Section 1605 of this Article 16; (4) Have demonstrated to the Director’s satisfaction that the Applicant 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; (5) Applied for a Medical Cannabis Dispensary Permit that required referral to and approval by the Planning Commission, and received approval from the Planning Commission prior to the effective date of the ordinance, in Board File

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; (5) Applied for a Medical Cannabis Dispensary Permit that required referral to and approval by the Planning Commission, and received approval from the Planning Commission prior to the effective date of the ordinance, in Board File Number 171042, establishing this Article

16; (6) Registered with the Office of Cannabis as a Pre-Existing Non-Conforming Operator, as set forth in subsection (k) of Section 1605 of this Article 16; or (7) Possessed a valid permit to operate a Medical Cannabis Dispensary, issued under Article 33 of the Health Code prior to January 6, 2018, or a valid Temporary Cannabis Business Permit, issued under Section 1605(d), but were forced to discontinue operations due to the termination of a lease, provided that: (A) The lease terminated before December 31, 2018; (B) The lease termination was not due to the lessee’s breach of the lease; (C) The Owner of the proposed Cannabis Business is identical to the Owner of the former Medical Cannabis Dispensary; and (D) The Permittee seeks an application for a Cannabis Business Permit no later than July 1, 2019. (b) The Director may award a Cannabis Business Permit to an Applicant that does not meet the criteria set forth in subsection (a) of this Section 1606 if the total number of Cannabis Business Permits awarded to Equity Applicants in the permit category sought by the Applicant has reached 50% of the total number of Cannabis Business Permits awarded in that permit category. (c) The Office of Cannabis shall review and process applications for Cannabis Business Permits in an order that reflects the Applicant’s priority category: (1) First priority: applications from Equity Applicants that, independently or in combination with one or more other Equity Applicants, hold a 100% ownership interest in the Cannabis Business for which they have applied for a Cannabis Business Permit; (2) Second priority: applications from current Temporary Cannabis Business Permitees1 that demonstrate to the satisfaction of the Director that they meet all of the following criteria: (A) Hold Type 6, Type 7, or Type N licenses, within the meaning of 17 C.C.R. 40118, as may be amended from time to time, and current approval from the California Department of Public Health to operate as a “shared-use facility,” as defined in 17 C.C.R. 40190, as may be amended from time to time; (B) Have current agreements allowing for use of a shared-use facility owned or leased by the Permittee by one or more current holders of Type S licenses, as defined in 17 C.C.R. 40190, as may be amended from time to time, that qualify as Equity Applicants under Section 1604(b) of this Article 16, and that are not owned or controlled by any Owner of the Permittee that owns or leases the shared-use facility; and (C) Commit in the agreements described in subsection (c)(2)(B), above, to use of their shared-use facility by one or more Equity Applicants to a degree that the Director finds to be reasonable, taking into account the available space within the facility, the current use of the facility space by the Permitee’s 1 business, and the demand for shared-use facilities among Equity Applicants. (3) Third priority: all Equity Applicants that do not meet the criteria for first or second priority processing; (4) Fourth priority: applications from Equity Incubators; (5) Fifth priority: applications from Applicants that meet the requirements of Section 1606(a)(4) or 1606(a)(6). (6) Sixth priority: applications from Applicants that were operating in compliance with the Compassionate Use Act of 1996 before September 1, 2016 or that meet the requirements of Section 1606(a)(5), or that hold or previously held Temporary Cannabis Business Permits under Section 1605(d); (7) Seventh priority: applications that demonstrate a commitment on the part of the Applicant to provide benefits to the community in which the Cannabis Business is located, including but not limited to workforce opportunities and community benefits contributions; and (8) Eighth priority: all other applications. (d) Each Owner Treated as Applicant. Unless this Article 16 specifically provides otherwise, each Owner of a Cannabis Business or proposed Cannabis Business shall be subject to the same obligations that this Article 16 imposes on an Applicant. Such obligations include, but are not limited to, the obligation to provide to the Director the information that this Article 16, and any regulations promulgated thereunder, require from an Applicant. (e) As of the effective date of the ordinance in Board File No. 200144 enacting this subsection (e), the Director shall decline to accept for processing any new applications for Cannabis Business Permits under this Article 16 in the following categories: Cannabis Retailer, Storefront Cannabis Retailer, Delivery-Only Cannabis Retailer, Medicinal Cannabis Retailer, and Cannabis Microbusiness (to the extent relating to retail activity). No later than June 30, 2027, the Controller shall submit to the Board of Supervisors a report that analyzes various impacts of the moratorium on new applications for retail-related Cannabis Business Permits, including its financial impacts on the City and the City’s cannabis industry, operational impacts on the Office of Cannabis, and impacts on City neighborhoods. (f) Temporary Eligibility Criteria for Cannabis Café Permits. (1) For one year following the effective date of the ordinance in Board File No. 260281, the Director may only accept for processing or issue a permit in response to an application for a Cannabis Café permit that meets all of the following criteria: (A) The permit Applicant either holds a valid Storefront Cannabis Retailer permit or has the same Owners as a separate entity, identified by name and permit number in the application, that holds a valid Storefront Cannabis Retailer permit. (B) If the Cannabis Café permit Applicant does not hold a Storefront Cannabis Retailer permit and has an Equity Applicant as an

Owner, the application must document that the Equity Applicant is an Owner of the Cannabis Café permit Applicant and that the Equity Applicant’s ownership interest in the Applicant entity is equal to or greater than either: (i) 20%; or (ii) the Equity Applicant’s percentage ownership in the Storefront Cannabis Retailer Permittee that has the same Owners as the Applicant entity. (C) The Storefront Cannabis Retailer Permittee identified in the application is not connected, within the meaning of subsection (f)(1) (A), with any other Cannabis Café permittee or pending Cannabis Café permit application. Notwithstanding the foregoing, prior to permit issuance, the Director may, for good cause, allow a Cannabis Café permit applicant to withdraw the application and submit a replacement application for a different location while maintaining their place in the processing queue. In no event, however, shall the Director issue a Cannabis Café permit to an Applicant whose associated Storefront Cannabis Retailer permittee is already associated with a current Cannabis Café permittee within the meaning of subsection (f)(1)(A). (2) One year after the effective date of the ordinance in Board File No. 260281, the City Attorney may cause this subsection (f) to be removed from the Police Code. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 301-19, File No. 191174, App. 12/20/2019, Eff. 1/20/2020; Ord. 176-21, File No. 210421, App. 10/29/2021, Eff. 11/29/2021; Ord. 106-23, File No. 200144, App. 6/23/2023, Eff. 7/24/2023; Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026) CODIFICATION NOTE

1. So in Ord. 176-21. SEC. 1607. CANNABIS BUSINESS PERMITS. (a) For the purpose of regulating the Commercial Cultivation, Manufacture, Testing, Distribution, Sale, and Delivery of Cannabis, the Director may issue the following permits: (1) Cannabis Cultivation Facility; (2) Cannabis Manufacturing Facility; (3) Cannabis Testing Facility; (4) Cannabis Distributor; (5) Cannabis Microbusiness; (6) Medicinal Cannabis Retailer; (7) Cannabis Retailer; (8) Delivery-Only Cannabis Retailer; (9) Cannabis Nursery; and (10) Cannabis Café. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; Ord. 301-19, File No. 191174, App. 12/20/2019, Eff. 1/20/2020; Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026) SEC. 1608. TRANSFER OF PERMIT; PORTABILITY OF PERMIT; SALE OF CANNABIS BUSINESS; CHANGE IN OWNERSHIP; INTERIM CANNABIS BUSINESS PERMITS. (a) Permits Nontransferable. No permit issued under this Article 16 shall be transferable under any circumstances, including but not limited to the sale of the Cannabis Business. (b) Permits Portable. A Cannabis Business Permittee that closes its Cannabis Business may retain its Cannabis Business Permit for up to 18 months from the date of closure, and may conduct Commercial Cannabis Activities under that permit at a different Premises provided: (1) There is no change in ownership; (2) The Referring Departments complete all necessary review and inspections of the new Premises, and report their determinations to the Office of Cannabis; (3) The Permittee demonstrates that the new Premises complies with the requirements of this Article 16 and the Planning Code; and (4) The Director finds that there are no grounds for denial of a Cannabis Business Permit, as set forth in subsections (d)-(e) of Section 1615 of this Article 16. (c) Ownership; Changes in Ownership; Changes in Form or Structure. (1) Any change affecting any ownership interest of a Cannabis Business, including, but not limited to, any change in ownership that

affects an ownership interest of less than 20% of the Cannabis Business, must be promptly disclosed, in writing, to the Director. (2) Any change affecting any ownership interest of a Cannabis Business that results in a Person holding an aggregate ownership interest of 20% or more of a Cannabis Business, when that Person did not previously hold an aggregate ownership interest of 20% or more in the Cannabis Business, shall require the Permittee to promptly obtain a permit amendment. Such permit amendment shall be reviewed by the Director in a manner consistent with subsection (c)(5), and shall not be granted unless the Director determines that, if the relevant Person (i.e., the Person who newly holds an aggregate ownership interest of 20% or more in the Cannabis Business) had been an Owner at the time the Permittee applied for a permit awarded under this Article 16, that permit would have been granted. (3) Any change in the direction, control, or management of a Cannabis Business must be promptly disclosed, in writing, to the Director, and such change shall require the Permittee to promptly apply for and obtain a permit amendment. An application for such a permit amendment shall be reviewed by the Director consistent with subsection (c)(4), and shall not be granted unless the Director determines that, if the relevant Person (i.e., the Person newly exercising direction, control, or management with respect to the Cannabis Business) had been an Owner at the time the Permittee applied for a permit awarded under this Article 16, that permit would have been granted. (4) A Permittee seeking a permit amendment as required under this subsection (c) shall pay the required filing fee for a permit amendment and provide such information, from the categories of information described in Section 1609, as may be required by the Director. The decision to grant or deny a permit amendment shall be entrusted to the Director’s discretion in the same manner, and subject to the same criteria, as the decision to grant or deny a permit as set forth in Section 1615, except as set forth in subsection (c)(9), below. (5) Notwithstanding any other provision of this subsection (c), prior to the award of any Cannabis Business Permit, permanent or temporary, and for five years following the date on which the Director has acknowledged receipt of an application for a Cannabis Business Permit from a particular Applicant or Permittee, an aggregate ownership interest of 50% or more in that Applicant or Permittee may not be transferred to any Person or combination of Persons who were not Owners of the Permittee at the time that a Cannabis Business Permit was first awarded to that Applicant or Permittee under this Article 16. Nothing in this subsection (c)(5) shall prohibit a holder of a Temporary Cannabis Business Permit from transferring an aggregate ownership interest of 50% or more in the Permittee prior to the award of a permanent Cannabis Business Permit to that Permittee after five years have passed from the earliest date on which the Director acknowledged receipt of an application for a Cannabis Business Permit, whether temporary or permanent, from that Permittee. In the event that, prior to the award of a Cannabis Business Permit or prior to five years after the date on which the Director acknowledged receipt of the application for a Cannabis Business Permit from that Permittee, an aggregate ownership interest of 50% or more in a Permittee is transferred to any Person or combination of Persons who were not Owners of the Permittee at the time that a Cannabis Business Permit was awarded, in violation of this subsection (c)(5), and the Permittee fails to undo the prohibited ownership transfer within six months of receiving notification of such violation from the Director, the Permittee shall promptly surrender the permit to the Director. This restriction shall not apply to any testamentary or intestate transfer of ownership triggered by an Owner’s death. This obligation is not dependent on the Director’s requesting the surrender, but arises by operation of law six months following notice from the Director that the sale of the Cannabis Business has violated the transfer restriction in this subsection (c)(5). If the Permittee fails to surrender the permit to the Director, the Director may, after giving the Permittee notice by mail and electronically of the proposed action and an opportunity to respond, revoke the permit.Where a permittee has applied for both a Cannabis Café permit and a Storefront Cannabis Retailer permit, the “earliest date on which the Director acknowledged receipt of an application for a Cannabis Business Permit” shall be calculated with reference to the application for the Storefront Cannabis Retailer Permit. (6) A change in the form or structure of a Permittee shall not be considered a change affecting an ownership interest in a Cannabis Business for purposes of this subsection (c). Notwithstanding any other provision of this subsection (c), a Permittee may undertake any change in its form or structure, as long as the change in form or structure does not cause any change affecting an ownership interest. The Permittee must promptly disclose its change in form or structure, in writing, to the Director, and such change shall require the Permittee to promptly apply for and obtain a permit amendment as set forth in subsection (c)(4). (7) Whenever, under this Article 16, an Owner is anything other than an individual, every individual who exercises direction, control, or management of that Owner shall also be treated as an Owner for purposes of this Article 16. (8) Notwithstanding any other provision of this subsection (c), it shall not be considered a change affecting an ownership interest in a Cannabis Business if an individual transfers an ownership interest in a Cannabis Business to a Person that is entirely owned and controlled by that same individual

management of that Owner shall also be treated as an Owner for purposes of this Article 16. (8) Notwithstanding any other provision of this subsection (c), it shall not be considered a change affecting an ownership interest in a Cannabis Business if an individual transfers an ownership interest in a Cannabis Business to a Person that is entirely owned and controlled by that same individual, but any subsequent transfer of an ownership interest in that Person shall be considered a change affecting an ownership interest in the Cannabis Business. All transfers described in this subsection (c)(8) must be promptly disclosed, in writing, to the Director. (9) Notwithstanding any other provision of this subsection (c), a Permittee must obtain a permit amendment if a change in ownership results in a decrease in an Equity Applicant’s ownership interest, as defined in Section 1604(b), in the Cannabis Business, a change in the Equity Applicant’s role as Chief Executive Officer or member of the Board of Directors, or a material change in the degree of the Equity Applicant’s participation in the direction, control, or management of the Cannabis Business. Applications for a permit amendment in accordance with this subsection (c)(9) must include the terms of the change in ownership. The Director shall require, as a condition of granting a permit amendment under this subsection where the combined ownership interest in the Cannabis Business by all verified Equity Applicants following the amendment would total less than 20%, that the Cannabis Business commit to take one or more specific actions to support the City’s equity goals as described in Section 1604(a) on an ongoing basis through the life of the Cannabis Business Permit. Applications for such a permit amendment shall include a detailed written description of the proposed equity action(s), the dates by which the Cannabis Business will take the action(s), an estimated dollar value for each action, and the dollar amount of gross sales of cannabis by the Cannabis Business during the most recently completed fiscal year. The Director shall not approve such permit amendment unless the Director finds that that proposed action(s) represent a substantial commitment to equity by the Cannabis Business for the life of the Cannabis Business Permit, taking into consideration the dollar amount of gross sales of cannabis by the Cannabis Business during the most recently completed fiscal year, and the Director’s assessment of the likely impact of the proposed action(s) in support of the City’s equity goals. In approving such permit amendment, the Director shall include as conditions of the amended permit specified equity action(s), and a further requirement that the Cannabis Business provide annual reports to the Director on or before February 1 of each year for the life of the Cannabis Business Permit, documenting the Cannabis Business’s action(s) taken during the prior calendar year to satisfy all permit

conditions. Actions a Cannabis Business may propose in its permit application to satisfy the equity commitment required upon a reduction in the combined ownership interest in the Cannabis Business by all verified Equity Applicants below 20% include but are not limited to the following: (A) Contributing, on an annual basis, an amount of cash, in-kind goods, services, and/or technical assistance equivalent to 1% of the gross sales of cannabis by the Cannabis Business during the most recently completed fiscal year prior to the submission of the application for permit amendment to one or more community organizations that serve equity goals, as described in Section 1604(a), and in which the Cannabis Business has no ownership or other financial interest; (B) Providing training, mentorship, and employment opportunities to workers who meet at least three of the criteria set forth in Section 1604(b)(4); (C) Ensuring that a substantial portion of Cannabis-related products promoted and/or sold by the Cannabis Business are sourced from businesses that are one of the following: (i) Equity Applicants that have been awarded Cannabis Business Permits (“Equity Operators”); or (ii) Cannabis Businesses that have been verified as the local equivalent of Equity Applicants or Equity Operators in jurisdictions outside San Francisco with a local equity program, as defined in Section 26240(e) of the California Business and Professions Code, as may be amended from time to time; (D) Providing financial support, technical assistance, rent-free commercial space, and/or other support to one or more Equity Operators or Equity Applicants in which, or in whose Cannabis Businesses, no Owner of the Cannabis Business seeking a permit amendment has any ownership interest or other financial interest. (d) Interim Cannabis Business Permits. Once the Director receives a surrendered Cannabis Business Permit to Operate, as set forth in subsection (b) of this Section 1608, the new Owner of the business may apply to the Director for an Interim Cannabis Business Permit, subject to any required Planning Department approvals, for a period not to exceed 90 days from the date of surrender (an “Interim Permit”). An Interim Permit may not be renewed. The Director may grant an Interim Permit provided that: (1) The new Owner has submitted a completed application for a Cannabis Business Permit to the Office of Cannabis, and a completed application for a State Cannabis License to the appropriate State Licensing Authority; (2) The new Owner applies for the same type of Cannabis Business Permit as was held by the prior Owner; (3) The Premises to which the Cannabis Permit applies complies with all existing health, safety, and fire ordinances, and applicable state laws governing Cannabis Businesses; and (4) An Interim Permit is necessary to ensure uninterrupted operations of a Cannabis Business at the Premises, or to minimize interruption of its operations. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 176-21, File No. 210421, App. 10/29/2021, Eff. 11/29/2021; Ord. 48-23, File No. 230162, App. 4/14/2023, Eff. 5/15/2023; Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026) SEC. 1609. PERMIT APPLICATIONS. (a) Application and Fee Required. Every Applicant for a Cannabis Business Permit shall: (1) File an application with the Director upon a form provided by the Director; (2) Provide such information as may be required by this Article 16 and any regulations promulgated thereto; and (3) Pay a non-refundable application fee, unless the Applicant is eligible for a fee waiver or reduction, as authorized by ordinance. (b) Information Required of All Applicants for Cannabis Business Permits. The application form for all Cannabis Business Permit Applicants shall require the Applicant to provide the following information and documentation: (1) The name, street address, and parcel number of the business for which the permit is sought; (2) The name, contact information, and address of the Applicant as follows: (A) If the Applicant is a corporation, the name of the corporation as shown in its articles of incorporation; the date and place of incorporation; and the name and address of each officer or director; (B) If the Applicant is a Person other than a publicly traded company, the name and address of every Person that directly or indirectly owns or controls 20% or more of the assets, ownership interests, or voting interests in that Person; (3) The name of and contact information for the manager(s) who will, directly or through designees, be on the Premises during hours of operation; (4) The name and address of each Person who appears on the business registration certificate for the Business for which a permit is sought; (5) The name and address of each Person who has or will have authority or control over the Business and a brief statement of the nature and extent of such authority and control, if the Applicant has not otherwise provided this information in the application; (6) The name, contact information, and address of the Person authorized to accept service of process;

(7) For all Owners, a complete set of fingerprints in the manner required by the Director for the purpose of conducting a criminal background check, and such additional information concerning the criminal histories of Owners, as may be required by the Director; (8) Written verification that the owner of the real property where the Cannabis Business will be located has the authority to consent, and consents to its use as a Cannabis Business. Such written verification must be signed by the property owner or the owner’s agent, and must include the owner and agent’s contact information; (9) Where the Applicant leases the Real Property, a copy of the lease; (10) A determination from the Planning Department that the proposed use as a Cannabis Business is in compliance with the Planning Code; (11) An Operations Plan that includes such information as may be required by the Director, including but not limited to: (A) An odor mitigation plan; (B) A Hazardous materials inventory; (C) A power plan; (D) A Security Plan; (E) A track and trace compliance plan; (F) A waste disposal plan; and (G) A water management plan. (12) For Applicants with 10 or more employees, each Applicant must agree that, as a condition of any permit awarded under this Article 16, the Applicant will enter into, and abide by the terms of, either of the following prior to the award of such a permit: (A) A Labor Peace Agreement; or, (B) A collective bargaining agreement with a Bona Fide Labor Organization. (13) The Tax Collector account number associated with the Applicant’s business registration certificate issued by the Tax Collector in accordance with Article 12 of the Business and Tax Regulations Code; (14) A copy of the Applicant’s Seller’s Permit, as may be required by Section 6067 of the California Revenue and Taxation Code, or where pending, proof of application therefor; (15) A completed Permit Checklist upon a form provided by the Director; (16) A detailed, scaled diagram of the proposed Premises that shows the boundaries of the property and all entrances, exits, interior partitions, walls, rooms, doorways, and common or shared entryways. The diagram must show the areas in which all Commercial Cannabis Activity will take place, including but not limited to areas where access will be limited to employees of the Cannabis Business and Customer access will be prohibited. If the proposed Premises consists of only a portion of property, the diagram shall reflect the Premises used for Cannabis activity and describe the use for the remaining portion of the property; (17) Disclosure of all other previous and current Cannabis-related licenses and permits issued by or sought from the City, the State, and any out-of-state jurisdiction, including the date the permit or license was issued or denied, and the name of the permitting or licensing authority; (18) A signed statement authorizing the Department of the Environment or, where applicable, the Public Utilities Commission to conduct an energy assessment within the first year of operation; (19) A copy of a proposed Good Neighbor Policy, developed in consultation with the Office of Cannabis, under which the Applicant agrees to: (A) Provide to residential and commercial neighbors located within 300 feet of the Cannabis Business the name, phone number, and email address of an onsite manager or community relations staff person who may be contacted concerning any problems associated with operation of the establishment; (B) Maintain the Premises, adjacent sidewalk and/or alley in good condition at all times; and (C) Prohibit loitering in or around the Premises, and post notifications on the Premises advising individuals of this prohibition. (20) A staffing plan that includes an organizational chart, demonstrating the roles and responsibilities of each employee and the reporting structure; (21) A Community Benefits Agreement for consideration by the Director that must, at a minimum: (A) Commit to the development of a First Source Hiring Plan, as set forth in Section 1618 of this Article 16; and (B) Describe the Applicant’s employment outreach, recruitment, and retention strategies for positions of employment not covered by the First Source Agreement; and (C) Describe how the Applicant will work to encourage and support the establishment and growth of Equity Applicants, provide employment opportunities to persons that have been disproportionately impacted by the criminalization of Cannabis, and otherwise further the City’s equity goals.

(22) A statement from the Applicant that the Applicant will not Sell or maintain on the Premises Tobacco Products or alcoholic beverages; (23) Documents demonstrating that the Applicant engaged in a Community Outreach Strategy to advise neighbors of its intent to seek a Cannabis Business Permit and to solicit input on its proposed Good Neighbor Policy. An Applicant’s Community Outreach Strategy must, at a minimum, address the requirements of subsection (b)(19)(A), include information about how neighbors may provide input on the content of the Applicant’s Good Neighbor Policy, and include sign-in sheets and minutes for any meetings held with neighbors. All materials and notices developed and distributed to neighbors by the Applicant as part of its Community Outreach Strategy must be translated into the languages required by the Language Access Ordinance, Administrative Code Chapter 91; (24) For Applicants that submitted an Equity Plan, as set forth in Section 3322 of the Health Code, an Equity Progress Report describing the steps the Applicant has taken in compliance with and furtherance of its Equity Plan since its submission to the Director. (25) Such further information as the Director requires regarding financial and lease arrangements, management authority, operational control of the Business or its Premises, or other matters, when such further information will assist the Director in his/her determination whether to grant or deny the permit; (26) A statement signed by the Applicant under penalty of perjury, that the information provided is complete, true, and accurate; and (27) A list of every Person with any financial, ownership, or other interest, as may be defined by the Director, in the Applicant, the proposed Cannabis Business, and any Owner of the proposed Cannabis Business, except that the Disrector may provide that remote or de minimis interests need not be disclosed. (28) The Director may allow or require an Applicant to supplement, amend, or correct, any information provided under this Section 1609 within reasonable limits prescribed by the Director, without requiring a new application, except that an Applicant may not change the location of the Premises of the proposed Cannabis Business after the Premises have been inspected by the Office or a Referring Department. (c) Additional Information Required of Applicants for Cannabis Cultivation Facility permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Cannabis Cultivation Facility permit shall also submit as part of its application: (1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a State Cannabis License authorizing the Cultivation and/or Processing of Cannabis; (2) A statement declaring the Applicant is an “agricultural employer” as defined by the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975, California Labor Code Section 1140.4, to the extent not prohibited by law; (3) Information demonstrating the size of the planned Canopy, by square footage of Cultivation and/or Processing area(s), as applicable; (4) Indication on the diagram of the proposed Premises of the location of any Hazardous materials and water storage; (5) For Applicants that will engage in the Cultivation of Cannabis, a Cultivation Plan containing such information as may be required by the Director, including but not limited to: (A) A list of pesticides to be used and quantities of pesticides to be stored on the Premises; (B) A list of fertilizers to be used and quantities of fertilizers to be stored on the Premises; (C) A list of any Hazardous materials to be stored on the Premises, and the quantities thereof; (D) A copy of the Applicant’s Hazardous materials plan; and (E) A list of propagative materials to be used for Cultivation. (6) For Applicants that will engage in the Cultivation of Cannabis, a Water Plan containing such information as may be required by the Director, including but not limited to: (A) Identification of the water source and supplier; (B) Where applicable, the point of diversion; (C) A general description of the area in which the water will be used; and (D) A description of all water conservation measures. (7) For Applicants that will engage in the Processing of Cannabis, an Operations Plan containing such information as may be required by the Director, including but not limited to: (A) Identification of the equipment to be used on the Premises; (B) A list of any Hazardous materials to be stored on the Premises, and the quantities thereof; and (C) A copy of the Applicant’s Hazardous materials plan. (8) A Power Plan containing such information as may be required by the Director, including but not limited to: (A) The name of the energy generation provider; (B) An indication of the percentage of electricity supplied from California-eligible renewable and large hydroelectric sources; and (C) A description of all planned energy efficiency measures.

(d) Additional Information Required of Applicants for Cannabis Manufacturing Facility permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Cannabis Manufacturing Facility permit shall also submit as part of its application: (1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a State Cannabis License authorizing the Manufacture of Cannabis; (2) A Manufacturing Plan, containing such information as may be required by the Director, including but not limited to: (A) A detailed description of all processes to be used for the extraction, packaging, and/or infusion of Cannabis; (B) A list of any Hazardous materials stored on the Premises, and the quantities thereof; (C) A copy of the Applicant’s Hazardous materials plan; and (D) A description of all Cannabis Products that will be Manufactured on the Premises; and (3) A statement from the Applicant acknowledging that non-Cannabis products will not be Manufactured on the Premises. (e) Additional Information Required of Applicants for Cannabis Testing Facility permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Cannabis Testing Facility permit shall also submit as part of its application: (1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a State Cannabis Testing Laboratory License; (2) Evidence that the Applicant has obtained or has applied for ISO/IEC 17025 accreditation; (3) A signed statement attesting that the Applicant has no economic interest in any Cannabis Businesses other than testing laboratories, such as the one for which the permit is sought; (4) A Laboratory Operations Plan containing such information as may be required by the Director, including but not limited to: (A) A description of sampling methods to be used; and (B) A description of the chain of custody controls to be used. (f) Additional Information Required of Applicants for Cannabis Distributor permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Cannabis Distributor permit shall also submit as part of its application: (1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a State Distributor License authorizing the Distribution of Cannabis and Cannabis Products; (2) A Distribution Plan containing such information as may be required by the Director, including but not limited to: (A) Information identifying all locations where the Applicant will store Cannabis or Cannabis Products; (B) The Vehicle Information Number for each vehicle that will be used to Distribute Cannabis and Cannabis Products, and proof of insurance therefor. (3) A copy of the Applicant’s Cannabis Tax Permit, as may be required by Section 34014 of the California Revenue and Taxation Code, as may be amended from time to time, or if pending, proof of application therefor. (g) Additional Information Required of Applicants for Cannabis Microbusiness permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Cannabis Microbusiness permit shall also submit as part of its application: (1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a Cannabis Microbusiness License; and (2) All documentation and information set forth in subsections (c), (d), (f), and either (h) or (i) of this Section 1609. (h) Additional Information Required of Applicants for Storefront Cannabis Retailer permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Storefront Cannabis Retailer permit shall also submit as part of its application: (1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a Retailer License. (2) For Applicants that have held a valid Medical Cannabis Dispensary permit, documentation demonstrating whether the on-site Smoking of Cannabis was prohibited by the Planning Department or Planning Commission. (3) A Storefront Cannabis Retailer Operations Plan containing such information as may be required by the Director, including but not limited to: (A) A description of the methods to be used to secure against theft or misappropriation Cannabis Products that are not on display in the store; and (B) A description of where and when shipments of Cannabis and Cannabis Products will be received, and the security measures that will be implemented to ensure the safety of the Retailer’s employees, and the public, and to protect against the theft of Cannabis and Cannabis Products; (4) A description of how the Applicant will support the needs of Customers who qualify under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis, including but not limited to providing space where Customers may speak confidentially with employees of the Cannabis Business, and ensuring a sufficient supply of Medicinal Cannabis and Medicinal Cannabis Products;

(5) Indication of whether the Applicant intends to apply for a Cannabis Consumption permit, as set forth in Article 8A of the Health Code, and a description of the type(s) of Consumption that the Applicant proposes to allow on the Premises. (6) A statement from the Applicant that the Applicant will not assign any name to the Cannabis Business that is likely to mislead members of the public into believing that the Cannabis Business is a business of a type that is legally permitted to sell products to minors, or is likely to entice minors to patronize the business. (7) If the Applicant intends to Deliver Cannabis or Cannabis Products to Customers, the Applicant shall also provide: (A) Information about the electronic platform, if any, to be used to receive and process orders for Cannabis and/or Cannabis Products; (B) The Vehicle Information Number for each vehicle that will be used to Deliver Cannabis and Cannabis Products, and proof of insurance coverage therefor; (C) A description of how the Applicant will confirm the age and identity of the Customer prior to and/or upon Delivery; (D) A description of how the Applicant will confirm that a Customer is qualified under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis, prior to and/or upon Delivery of Medicinal Cannabis or a Medicinal Cannabis Product. (E) A description of how the Applicant will track drivers and Delivery status. (F) A statement from the Applicant affirming that the Applicant: (i) Will provide training to all Delivery employees concerning the laws governing Sales and Deliveries of Cannabis and Cannabis Products; (ii) Will take steps to ensure the personal safety of all Delivery employees; and (iii) Understands that the Delivery of Cannabis or Cannabis Products by anyone other than an employee of the Applicant is a violation of this Article 16. (8) If the Applicant intends to operate a Compassion Program, as set forth in subsection (aa) of Section 1618 of this Article 16, a description of the proposed terms and conditions of such program. (i) Additional Information Required of Applicants for Delivery-Only Cannabis Retailer permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Delivery-Only Cannabis Retailer permit shall also submit as part of its application: (1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a license authorizing the Delivery and Sale of Cannabis and/or Cannabis Products to Customers. (2) A description of how the Applicant will support the needs of Customers who qualify under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis, including but not limited to ensuring a sufficient supply of Medicinal Cannabis and Medicinal Cannabis Products. (3) A “Delivery-Only Cannabis Retailer Operations Plan” containing such information as may be required by the Director, including but not limited to: (A) Where applicable, a description of the protocols it intends to implement to separately store, sell, and tax Medicinal and Adult Use Cannabis and Cannabis Products; (B) A description of where and when shipments of Cannabis and Cannabis Products will be received, and the security measures that will be implemented to ensure the safety of the Business’ employees, and the public, and to protect against the theft of Cannabis and Cannabis Products; (C) Information about the electronic platform, if any, to be used to receive and process orders for Cannabis and/or Cannabis Products; (D) The Vehicle Information Number for each vehicle that will be used to Deliver Cannabis and Cannabis Products, and proof of insurance coverage therefor; (E) A description of how the Applicant will confirm the age and identity of the Customer prior to and/or upon Delivery; (F) A description of how the Applicant will confirm that a Customer is qualified under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis, prior to and/or upon Delivery of Medicinal Cannabis or a Medicinal Cannabis Product; (G) A description of how the Applicant will track Delivery employees and Delivery status; and (H) A statement from the Applicant affirming that the Applicant: (i) Will provide training to all Delivery employees concerning the laws governing Sales and Deliveries of Cannabis and Cannabis products; (ii) Will take steps to ensure the personal safety of all Delivery employees; and (iii) Understands that the Delivery of Cannabis or Cannabis Products by anyone other than an employee of the Applicant is a violation of this Article 16. (j) Additional Information Required of Applicants for Cannabis Nursery permits. In addition to the information required under subsection (b) of this Section 1609 , an Applicant for a Cannabis Nursery permit shall also submit as part of its application: (1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a license authorizing the

operation of a Cannabis Nursery. (2) All documentation and information set forth in subsection (c) of this Section 1609. (k) Additional Information Required of Applicants for Cannabis Café Permits. In addition to the information required under subsection (b) of this Section 1609, an Applicant for a Cannabis Café permit shall also submit as part of its application: (1) Copies of all documentation submitted to the State Licensing Authority in support of its application for a state storefront retailer license. (2) A Cannabis Café Operations Plan containing such information as may be required by the Director, including but not limited to: (A) A description of the methods to be used to secure against theft or misappropriation of Cannabis Products on site, and security measures that will be implemented to ensure the safety of the Retailer’s employees and the public; and (B) A description of where and when shipments of Cannabis and Cannabis Products will be received; (3) Confirmation that the Applicant intends to apply for a Cannabis Consumption permit, as set forth in Article 8A of the Health Code, and a description of the type(s) of Consumption that the Applicant proposes to allow on the Premises. (4) A description of how the Applicant will support the needs of Customers who qualify under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis, including but not limited to providing space where Customers may speak confidentially with employees of the Cannabis Business, and ensuring a sufficient supply of Medicinal Cannabis and Medicinal Cannabis Products; (5) A statement from the Applicant that the Applicant will not assign any name to the Cannabis Business that is likely to mislead members of the public into believing that the Cannabis Business is legally permitted to sell products to minors, or a name that is likely to entice minors to attempt to patronize the business. (6) If the Applicant intends to operate a Compassion Program, as set forth in subsection (aa) of Section 1618 of this Article 16, a description of the proposed terms and conditions of such program. (l) Upon receipt of an application for a Cannabis Café, Medicinal Cannabis Retailer, or Storefront Cannabis Retailer permit, the Office of Cannabis shall post the name and location of the proposed Cannabis Business on its website, and shall update its website with information about the status of the application until such time as the application has been approved or denied. The Office of Cannabis shall also cause a notice to be posted on the site of the Premises associated with the aforementioned permit applications to notify neighbors that a Cannabis Business Permit is sought at that location, if such notice is not otherwise required by the Planning Code. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 133-18, File No. 180321, App. 6/14/2018, Eff. 7/15/2018; Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 301-19, File No. 191174, App. 12/20/2019, Eff. 1/20/2020; Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026) SEC. 1610. WITHDRAWAL OF APPLICATION. An Applicant may withdraw an application at any time prior to the Office’s issuance or denial of a Cannabis Business Permit. Requests to withdraw an application shall be submitted to the Office in writing, dated, and signed by the Person who submitted and signed the application. The Office shall not refund application fees for a withdrawn application. An Applicant that has withdrawn an application may reapply and pay a new application fee at any time following the withdrawal of an application. An Applicant’s withdrawal of an application shall not impact the eligibility for priority review, as set forth in subsection (c) of Section 1606, of a subsequent application submitted by the same Applicant. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 176-21, File No. 210421, App. 10/29/2021, Eff. 11/29/2021) SEC. 1611. PERMITTEE’S RESPONSIBILITY FOR ACTS OF EMPLOYEES AND AGENTS. In construing and enforcing the provisions of this Article 16 and regulations promulgated thereto, any act, omission, or failure of an agent, officer, or other Person acting for or employed by a Cannabis Business, within the scope of his or her employment or agency, shall be deemed the act, omission, or failure of the Cannabis Business. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1612. INCORPORATION OF REQUIREMENTS OF LOCAL APPROVALS. (a) A violation of the terms and conditions of a Cannabis Business Permit shall be treated as a violation of this Article 16. (b) A violation of the terms and conditions imposed on a Cannabis Business by a Referring Department shall be treated as a violation of this Article 16.

(Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1613. LIMITS ON PERMITS. (a) A Permittee that holds a Cannabis Testing Facility permit shall be ineligible for and may not be issued a permit to operate any other type of Commercial Cannabis Activity permitted by the City. A Permittee that holds a Cannabis Business Permit other than a Cannabis Testing Facility permit, shall be ineligible for and may not be issued a permit to operate a Cannabis Testing Facility. (b) No permit to operate as a Storefront Cannabis Retailer shall be granted if any individual holding a legal or beneficial interest in the proposed Storefront Cannabis Retailer already holds a legal or beneficial interest in four or more existing Storefront Cannabis Retailers that hold permits under this Article 16, except that an interest held in a Storefront Cannabis Retailer shall not be counted towards this limit if the Storefront Cannabis Retailer has received approval from the Planning Commission, following a discretionary review hearing, as of the effective date of the ordinance in Board File No. 180912. If an application for a permit, under this Article 16, to operate as a Storefront Cannabis Retailer is pending for approval before the Planning Commission, and if the approval of that permit would cause an individual to hold a legal or beneficial interest in four or more existing Storefront Cannabis Retailers (other than Storefront Cannabis Retailers that, as of the effective date of the ordinance in Board File No. 180912, have received approval from the Planning Commission following a discretionary review hearing), the Office of Cannabis shall place on hold any additional applications for a permit on behalf of a Storefront Cannabis Retailer in which that individual would hold a legal or beneficial interest in a proposed Storefront Cannabis Retailer. For purposes of this subsection (b), the circumstances in which an individual holds a legal or beneficial interest in a Storefront Cannabis Retailer shall include (but need not be limited to) any circumstance in which an individual holds a legal or beneficial interest in any Person holding a legal or beneficial interest in the Storefront Cannabis Retailer. (c) No application for a permit to operate a Cannabis Café shall be accepted if any individual holding a legal or beneficial interest in the proposed Cannabis Café business already holds a legal or beneficial interest in four or more businesses that either hold valid Cannabis Café permits or have pending applications for Cannabis Café permits under this Article 16. For purposes of this subsection, a legal or beneficial interest in a business may include a legal or beneficial interest in a separate entity that holds a legal or beneficial interest in the permittee or Applicant. (d) The Controller shall track the number of permits that are awarded pursuant to this Article 16. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026) SEC. 1614. REFERRAL OF APPLICATION TO DEPARTMENTS AND AGENCIES. The Director shall send the application to all appropriate Referring Departments. Those departments shall complete all necessary review and inspections and report their determinations to the Office of Cannabis. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1615. ISSUANCE AND DENIAL OF CANNABIS BUSINESS PERMITS. (a) At any time after receiving an Applicant’s application, the Director may notify the Applicant in writing that the Applicant must submit further specified information or documentation needed to process or evaluate the application within 45 days. If the Applicant fails to provide the required information or documentation within 45 days of receiving such notice, the application will be deemed abandoned and will not receive further consideration, unless the Director finds that the Applicant has demonstrated, prior to the expiration of the 45 days, that good cause exists to extend the Applicant’s deadline to provide required information or documentation. Applicants that abandon an application may submit a new one, subject to payment of a new application fee. Applicants that submit an application following the abandonment of an earlier application shall not receive priority review, as set forth in subsection (c) of Section 1606. The Director may issue multiple 45-day notices to a single Applicant, as needed, at any time after receiving an Applicant’s application and prior to issuing the Article 16 permit sought by that application. After the Director has determined that no further information or documentation is required from an Applicant for evaluation of the application, the Director shall notify the Applicant in writing that the application is complete. (b) Upon review of a complete application and consideration of information provided by the Referring Departments, the Director shall either grant or deny a permit, as specified in more detail in subsections (c) and (d). (c) Approvals. 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, neighbors, and Customers, prevent access to Cannabis and Cannabis Products by underage persons, and reduce any potential adverse impacts of the Cannabis Business on the immediate neighborhood. Such conditions may include, but are not limited to, conditions relating to the hours of operation. (d) Mandatory Grounds for Denial. No Cannabis Business Permit shall be issued if the Director finds that:

(1) The Applicant, any Owner, or anyone holding a financial interest in the proposed Cannabis Business, has provided materially false information or documents in connection with the application. (2) The Applicant or any Owner failed to provide all information required by this Article 16 and by the Director, in implementing this Article 16. (3) The Applicant has violated a provision of Article 16, and has failed to come into compliance with Article 16 within a reasonable time, as determined by the Director of the Office of Cannabis, after receiving notice of the violation from the Director. (4) Any Owner, or anyone holding any financial interest in the proposed Cannabis Business, has otherwise willfully or knowingly failed to comply, or caused a failure to comply, with this Article 16. (5) The Applicant has not demonstrated eligibility for a permit under this Article 16. (6) The Premises are materially different from the diagram of the Premises submitted by the Applicant. (7) The City has revoked a permit for the operation of a business in the City which permit had been issued to the Applicant or to any other Person who will be engaged in the management of the Cannabis Business unless more than five years have passed between the date of the application and the date of revocation of the other permit. (8) The operation of the Cannabis Business as proposed by the Applicant, if permitted, would not comply with all applicable laws, including but not limited to, the Building, Planning, Housing, Police, Fire, and Health Codes of the City, the provisions of this Article 16 and any regulations promulgated thereto, 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. (9) The Applicant is employed by any local or state agency responsible for the regulation of Commercial Cannabis Activities. (10) The Applicant denied access to the Premises to the Office and/or to any Referring Department. (11) The Director finds that the Premises or the Cannabis Business will be or is being managed, conducted, or maintained in such a manner as to endanger the health and safety of the employees, Customers or neighbors, or to coerce any employee to engage in illegal conduct. (12) The Planning Department or Planning Commission determines that the Applicant engaged in Commercial Cannabis Activities in a location that was not authorized by or consistent with the Planning Code. (13) The Applicant is a Cannabis Café permit Applicant that the Planning Department has determined would be located within 600 feet of a Storefront Cannabis Retailer, except that if a Cannabis Café permit Applicant’s location is within 600 feet of a Storefront Cannabis Retailer with which the Cannabis Café permit Applicant shares all of the same Owners (the “Associated Storefront Cannabis Retailer”), that Applicant’s location within 600 feet of the Associated Storefront Cannabis Retailer shall not be grounds for denial of the Applicant’s Cannabis Café permit, so long as no other Cannabis Cafés sharing all of the same Owners are located within 600 feet of the Associated Storefront Cannabis Retailer. (e) Discretionary Grounds for Denial. The Director may deny an application for a Cannabis Business Permit if the Director finds that: (1) The Applicant or Owner has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the Director determines that the Applicant or Owner is otherwise suitable to be issued a permit, and granting the permit would not compromise public safety, the Director shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the Applicant or Owner, and shall evaluate the suitability of the Applicant or Owner, to be issued a permit based on the evidence found through the review. For purposes of this subsection (e)(1), “offenses that are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made” include, but are not limited to, the following: (A) A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the California Penal Code; (B) A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the California Penal Code; (C) A felony conviction involving fraud, deceit, or embezzlement; (D) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor; and, (E) A felony conviction for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the California Health and Safety Code. (2) Except as provided in subsections (e)(1)(D)-(E) of this Section 1615, a prior conviction, where the sentence, including any term of probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is not considered substantially related, and shall not be the sole ground for denial of a permit. (3) There is good cause to deny the permit in accordance with Section 26 of the Business and Tax Regulations Code. (4) The Applicant has not made a good faith effort to comply with its Equity Plan, as submitted under Section 3322 of the Health Code. (f) In determining whether an Application should be denied on grounds articulated in subsections (d)(1) and (2) of this Section 1615, the Dir

There is good cause to deny the permit in accordance with Section 26 of the Business and Tax Regulations Code. (4) The Applicant has not made a good faith effort to comply with its Equity Plan, as submitted under Section 3322 of the Health Code. (f) In determining whether an Application should be denied on grounds articulated in subsections (d)(1) and (2) of this Section 1615, the Director shall use his or her best efforts to coordinate his or her review of evidence and decision with the State Licensing Authority charged with the review of the Applicant’s application for a State Cannabis License. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 301-19, File No. 191174, App. 12/20/2019, Eff. 1/20/2020; Ord. 176-21, File No. 210421, App. 10/29/2021, Eff. 11/29/2021; Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026)

SEC. 1616. PAYMENT OF ANNUAL LICENSE FEE. The license fee for a Cannabis Business 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. Upon the failure of the Permittee to pay such fees, the permit shall be considered null and void, and therefore inactive as a matter of law, until the Permittee pays the fees and any penalties that might be assessed by the Director. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1617. COMPLIANCE WITH PERMIT CONDITIONS. (a) No Permittee shall operate a Cannabis Business in a manner inconsistent with any permit condition imposed by the Director or by a Referring Department. (b) A Permittee may request a permit amendment to remove or change a condition imposed by the Director by filing a request with the Office of Cannabis and paying such permit amendment application fee as may be required. (c) The Director shall consider whether the amendment of the permit condition sought by the Permittee would jeopardize the health and safety of the Permittee’s employees, neighbors, or Customers, increase access to Cannabis and Cannabis Products by underage persons, or increase any potential adverse impacts of the Cannabis Business on the immediate neighborhood, and shall render a decision to remove, change, or maintain the permit condition(s) on the basis of that evaluation or for any good cause. (d) A decision of the Director to impose a permit condition, or to refuse to remove or amend a permit condition, may be appealed to the Board of Appeals in the manner prescribed in Article 1 of the Business and Tax Regulations Code. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1618. ELIGIBILITY AND OPERATING STANDARDS APPLICABLE TO ALL CANNABIS BUSINESSES. (a) Every Cannabis Business is required to obtain a business license from the City in compliance with Article 2 of the Business and Tax Regulations Code. (b) Every Cannabis Business is required to have paid all outstanding taxes and fees, including any related penalties and interest, owed to the City, and is required to have obtained a business registration certificate from the City in compliance with Article 12 of the Business and Tax Regulations Code. (c) Every Cannabis Business is required to obtain a State Cannabis License prior to engaging in any Commercial Cannabis Activities. (d) Every Cannabis Business is required to prominently display on its Premises its Cannabis Business Permit, State Cannabis License, Business Registration, and Seller’s Permit, if required to hold a Seller’s Permit. (e) Every Cannabis Business shall operate within fully enclosed and secure structures that are inaccessible to underage persons. (f) It shall be a violation of this Article 16 for a Cannabis Business to sell or maintain alcoholic beverages and/or Tobacco Products on the Premises of the Cannabis Business. (g) Every Cannabis Business shall enter into a First Source Hiring Agreement, as defined by Section 83.4 of the Administrative Code, pursuant to which it agrees to comply with the first source hiring requirements set forth in subsections (b)(1)-(8) of Section 83.9 of the Administrative Code. (h) Every Cannabis Business is required to submit a “modification request” to the Office of Cannabis prior to making any change that would materially or substantially alter the Premises from the diagram of the Premises on file with the Office of Cannabis, and shall not make the proposed change absent approval from the Director. (i) Every Cannabis Business is required to use the business name listed on its Cannabis Business Permit when applying for any other permits or licenses relating to the operation of the Cannabis Business, and when applying for a State Cannabis license. (j) Every Cannabis Business is required to provide identification badges to all employees that display: (1) the name of the Cannabis Business; (2) the number of the Cannabis Business’ Cannabis Business Permit; and (3) a photo of the employee’s face. Such identification badges must be worn by employees at all times when they are on the Premises of the Cannabis Business, and when acting in the scope of their employment. (k) Every Cannabis Business, other than a Cannabis Testing Facility, is required to maintain on the Premises a fire proof safe.

(l) A Cannabis Business shall not enter into a sublease for use of any part of the Premises by another entity without the prior approval of the Director. (m) A Physician’s Recommendation for Medicinal Cannabis may not be sought, issued, provided, or procured on the Premises of a Cannabis Business. (n) At any time a Cannabis Business is open for operation, there shall be at least one person on the Premises who is responsible for the operation of the Cannabis Business and who is readily available to respond to and interact with all inspecting departments and agencies, the Director, or any other City employee or official. (o) No Cannabis Business may employ an individual who is not at least 21 years of age, unless authorized by state law. (p) Every Cannabis Business is required to comply with all aspects of the state’s “Track and Trace” program, as set forth in Section 26067 of the California Business and Professions Code, as may be amended from time to time. (q) Every Cannabis Business is required to maintain records demonstrating that all Cannabis and Cannabis Products have been obtained from Cannabis Businesses holding a valid State Cannabis License. The Director shall have the right to examine, monitor and audit such records and documentation, which shall be made available immediately upon request of the Office of Cannabis. (r) None of the following items shall be allowed on the Premises or parking lot of a permitted Cannabis Business: (1) Controlled substances other than Cannabis, except when in the possession or under the control of an individual for whom the controlled substance was prescribed by a licensed physician; and (2) Alcoholic beverages. (s) Every Cannabis Business shall comply with the terms of its Good Neighbor Policy and Security Plan. (t) Every Cannabis Business is required to keep all garbage, recycling, and compost containers on the Premises and hidden from public view, and placed outside only when being serviced by the disposal company. Trash shall be contained and disposed of pursuant to garbage and recycling receptacle guidelines set forth by the Department of Public Works. (u) The Premises of every Cannabis Business shall be adequately soundproofed or insulated for noise, as may be required by the Planning and/or Building Codes, or by permits issued pursuant to those Codes. Noise generated by fixed-source equipment shall not exceed the decibel levels specified in Article 29 of the Police Code, as may be amended from time to time. Violations of this subsection (u), including noise that exceeds the decibel levels specified in Article 29 of the Police Code, are subject to the penalties set forth in this Article 16. (v) Appropriate odor control equipment shall be installed in conformance with the approved odor plan and maintained to prevent any significant noxious or offensive odors from escaping the Premises. (w) Every Cannabis Business shall maintain the main entrance to the Premises and all sidewalks abutting the subject property in a clean and sanitary condition in compliance with the Department of Public Works’ Street and Sidewalk Maintenance Standards. (x) Every Cannabis Business shall comply with signage controls as established in accordance with the Planning Code. (y) Every Cannabis Business shall register with the Office each location within the City where Cannabis and Cannabis Products will be stored. (z) Every Cannabis Business shall protect personally identifiable information and protected health information from unauthorized disclosure, to the extent required by the Health Insurance Portability and Accountability Act, the California Medical Information Act, Article 1 of the California Constitution, the California Health and Safety Code and regulations promulgated thereunder, and any other applicable provision of federal or state law. (aa) It shall be a violation of this Article 16 for any Cannabis Business to engage in the nonsale distribution of Cannabis or Cannabis Products, or to permit the nonsale distribution of Cannabis or Cannabis Products by any Person on the Premises of the Cannabis Business, except as authorized by state law. Notwithstanding the forgoing,1 and as authorized by state law, a Storefront Cannabis Retailer or Cannabis Café may operate a Compassion Program in which it provides Medicinal Cannabis and/or Medicinal Cannabis Products at no or nominal cost to low-income individuals who are qualified under California Health and Safety Code Sections 11362.7 et seq. to use Medicinal Cannabis. In addition, Cannabis Cultivation Facilities and Cannabis Manufacturing Facilities may provide Medicinal Cannabis and/or Medicinal Cannabis Products at no or nominal cost to Storefront Cannabis Retailers and Cannabis Cafés, for distribution through a Compassion Program. The Director shall adopt rules, regulations and guidelines applicable to Compassion Programs, including, but not limited to: eligibility criteria applicable to persons who may receive Cannabis at no or low cost; and recordkeeping requirements. For purposes of this subsection (aa), “nonsale distribution” means to give Cannabis or Cannabis Products to the general public or some segment thereof at no cost, or at nominal cost, or to give coupons, coupon offers, or rebate offers for Cannabis or Cannabis Products to the general public or some segment thereof at no cost or at nominal cost. (bb) A Cannabis Business shall conduct an Energy Efficiency Audit Reporting, as may be required by Chapter 20 of the Environment Code. (cc) Every Cannabis Business shall ensure that the electrical power used for Commercial Cannabis Activities shall be procured from or produced by renewable sources, consistent with Renewable Energy Requirements to be adopted by the Director, in consultation with the Director of the Department of the Environment. In adopting Renewable Energy Requirements, the Director shall esta

ironment Code. (cc) Every Cannabis Business shall ensure that the electrical power used for Commercial Cannabis Activities shall be procured from or produced by renewable sources, consistent with Renewable Energy Requirements to be adopted by the Director, in consultation with the Director of the Department of the Environment. In adopting Renewable Energy Requirements, the Director shall establish minimum renewable energy requirements that are consistent with the amount of renewable energy contained in CleanPowerSF’s Green Service. A Cannabis Businesses1 shall also provide to the Director and the Department of the Environment an annual report documenting the amount and source of energy consumed by the Business in the prior 12 months. (dd) Every Cannabis Business shall advise the Director and the applicable State Licensing Authority in writing of the following events

within 48 hours of: (1) Receiving a criminal penalty or civil judgment rendered against the Permittee; or (2) Receiving notification of the revocation of a local license, permit or other authorization from any Referring Department. (ee) Every Cannabis Business shall notify the Director, the Police Department, and the applicable State Licensing Authority within 24 hours after discovering any of the following: (1) Significant discrepancies identified during inventory; (2) Diversion, theft, loss, or any criminal activity pertaining to the operation of the Cannabis Business; (3) The loss or unauthorized alteration of records related to Cannabis or Cannabis Products, registered qualifying patients, primary caregivers, or the employees or agents of the Cannabis Business; and (4) Any other breach of security. (ff) Every Cannabis Business shall ensure that at least 50% of all Business Work Hours are performed by Local Residents, unless one of the following exceptions applies: (1) Cannabis Businesses that previously held a Medical Cannabis Dispensary permit under Article 33 of the Health Code shall ensure that at least 35% of all Business Work Hours are performed by Local Residents. This exception shall expire by operation of law on January 1, 2019. (2) If a Cannabis Business is subject to, and complies with, the hiring requirement imposed by subsection (gg), that Cannabis Business shall be exempt from the requirements of this subsection (ff). Business Work Hours performed by residents of states other than California shall not be considered in calculation of the number of Business Work Hours to which the requirements of this subsection (ff) apply. The Director of the Office of Cannabis may approve a time- limited waiver or reduction of the requirements of this subsection, upon a showing by the Cannabis Business that it was unable to locate a sufficient number of qualified Local Residents. (gg) To encourage the existence of a stable, well-trained workforce in the cannabis industry, each Cannabis Business shall comply with the following hiring requirement: (1) Each Cannabis Business shall ensure that 35% of its new hires shall be registered apprentices enrolled in a relevant apprenticeship program approved by the State that has a memorandum of understanding with one or more pre-apprenticeship programs certified by the City, if: (A) There exists a State-approved apprenticeship program that is relevant to the type (as set forth in Section 1607) of Cannabis Business in question; (B) The State-approved apprenticeship program described in subsection (gg)(1)(A) has a memorandum of understanding with one or more City-certified pre-apprenticeship programs; and (C) Sufficient numbers of registered apprentices enrolled in a State-approved apprenticeship program described in subsections (gg)(1) (A)-(B) are available to satisfy 35% of the Cannabis Business’s new hiring needs. (2) If registered apprentices enrolled in a State-approved apprenticeship program described in subsections (gg)(1)(A)-(B) are not available in sufficient numbers to satisfy 35% of the Cannabis Business’s new hiring needs, the Cannabis Business shall hire such registered apprentices to the extent feasible. (3) If no State-approved apprenticeship program is relevant to a particular type (as set forth in Section 1607) of Cannabis Business, or if no relevant State-approved apprenticeship program has a memorandum of understanding with any City-certified pre-apprenticeship program, that type of Cannabis Business shall not be subject to any hiring requirement under this subsection (gg). (4) To facilitate compliance with this subsection (gg), the Office of Economic and Workforce Development (OEWD) shall maintain and publicize a list of State-approved apprenticeship programs that have a memorandum of understanding with one or more City-certified pre-apprenticeship programs. This list shall specify types (as set forth in Section 1607) of Cannabis Businesses to which each such State- approved apprenticeship program is relevant, as determined by OEWD. (5) For purposes of this subsection (gg), OEWD shall establish standards governing certification of pre-apprenticeship programs, and shall be responsible for certifying, on behalf of the City, pre-apprenticeship programs that meet those standards. The standards established by OEWD shall ensure that any pre-apprenticeship program certified by the City under this subsection operates in partnership with one or more community-based organizations. These standards may include provisions that relate to social equity training, license incubation processes, underserved community outreach programs, and business plan development training. (hh) Every Cannabis Business must comply with all applicable laws, regulations, rules, and permit conditions, during the entire permit period, whether or not the Cannabis Business currently engages in Commercial Cannabis Activity. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 6-19, File No. 180805, App. 1/25/2019, Eff. 2/25/2019; Ord. 226-21, File No. 211030, App. 12/17/2021, Eff. 1/17/2022; Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026) CODIFICATION NOTE

1. So in Ord. 230-17.

SEC. 1619. PROHIBITION ON ENTRY BY AND SALES TO UNDERAGE PERSONS; PROHIBITION ON MISLEADING BUSINESS NAMES. (a) Entry to Premises Prohibited. It shall be a violation of this Article 16 for a Permittee to allow on the Premises any person under 21 years of age, provided however that a Medicinal Cannabis Retailer may allow entry to a person 18 years of age or older who possesses a valid Physician’s Recommendation. (b) Prohibited Sales. (1) It shall be a violation of this Article 16 for any Cannabis Café, Storefront Cannabis Retailer, Cannabis Microbusiness, or Delivery- Only Cannabis Retailer to Sell, furnish, give, or cause to be Sold, any Adult Use Cannabis or Adult Use Cannabis Products to any person under the age of 21. (2) It shall be a violation of this Article 16 for any Cannabis Café, Storefront Cannabis Retailer, Cannabis Microbusiness, or Delivery- Only Cannabis Retailer to Sell, furnish, give, or cause to be Sold, any Medicinal Cannabis or Medicinal Cannabis Products to any person who is under the age of 18 and/or who does not possess a valid Physician’s Recommendation. (c) Misleading Business Names Prohibited. It shall be a violation of this Article 16 for a Permittee to assign any name to a Cannabis Café, Cannabis Retailer, or Medicinal Cannabis Retailer, or to use any name in connection with a Cannabis Café, Cannabis Retailer, or Medicinal Cannabis Retailer, if the name is likely to mislead members of the public into believing that the business is legally permitted to sell products to minors, or is likely to entice minors to patronize the business. (d) Positive Bona Fide Proof of Identity Required. No Cannabis Café, Storefront Cannabis Retailer, Cannabis Microbusiness, or Delivery-Only Cannabis Retailer may Sell Cannabis or Cannabis Products to any Customer without first examining the Customer’s Bona Fide Proof of Age and Identity to confirm that the Customer is at least the minimum age under state law to purchase and possess the Cannabis or Cannabis Product. Review of a Customer’s Bona Fide Proof of Age must be performed by an employee of the Permittee, in the presence of the prospective Customer. (e) Proof of Physician’s Recommenda- tion Required. No Storefront Cannabis Retailer, Cannabis Microbusiness, or Delivery-Only Can- nabis Retailer may Sell Medicinal Cannabis or Medicinal Cannabis Products to any Customer without first examining verification that the Customer possesses a valid Physician’s Recom- mendation. Review of a Customer’s verification of Physician’s Recommendation must be performed by an employee of the Permittee, in the presence of the prospective Customer. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 301-19, File No. 191174, App. 12/20/2019, Eff. 1/20/2020; Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026) SEC. 1620. CONSUMPTION OF CANNABIS AND CANNABIS PRODUCTS ON THE PREMISES OF CANNABIS BUSINESSES. (a) The Consumption of Cannabis and Cannabis Products is prohibited on the Premises of all Cannabis Manufacturing Facilities, Cannabis Cultivation Facilities, Cannabis Testing Facilities, Cannabis Distributors, and Delivery-Only Cannabis Retailers. (b) The Consumption of Cannabis Products is not prohibited on the Premises of Cannabis Cafés, Medicinal Cannabis Retailers, Cannabis Retailers, and Cannabis Microbusiness, provided, however, that all of the following conditions are present: (1) The Cannabis Business has received and maintained a valid Cannabis Consumption Permit from the Department of Public Health, as set forth in Article 8A of the Health Code, authorizing onsite Consumption of Cannabis Products; (2) Access to the area where the Consumption of Cannabis Products is allowed is restricted to persons 21 years of age and older, or persons 18 years of age and older, if the Permitted Businesses is1 authorized to Sell Medicinal Cannabis and Medicinal Cannabis Products; (3) Cannabis Consumption is not visible from any public place or nonage-restricted area; and (4) Sale and Consumption of alcohol or Tobacco Products are not allowed on the Premises. (c) All Cannabis Businesses shall: (1) Post clear and prominent signs at each entrance to the Premises advising Customers that the Smoking of Cannabis is prohibited in public places, including on sidewalks and in the entryways of businesses; (2) Post clear and prominent “No Smoking” signs in any area of the Premises where Smoking is prohibited; (3) Post clear and prominent “No Consuming Cannabis” signs in any area of the Premises where the Consumption of Cannabis and Cannabis Products is prohibited; and (4) Request that any person Smoking or Consuming Cannabis or Cannabis Products where Smoking or Consumption are prohibited refrain from Smoking and/or Consuming. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026)

CODIFICATION NOTE

1. So in Ord. 230-17. SEC. 1621. TOURS. (a) It shall be a violation of this Article 16 for Cannabis Testing Facilities, Cannabis Distributors, and Delivery-Only Cannabis Retailers to permit a tour to be conducted on the Premises. (b) Prior to January 1, 2019, it shall be a violation of this Article 16 for a Cannabis Manufacturing Facility, a Cannabis Cultivation Facility, or a Cannabis Microbusiness to permit a tour to be conducted on the Premises. (c) For purposes of this Section 1621, a “tour” means an organized or prearranged visit by a member or members of the general public, or segment thereof, whether free or for charge, who wish to view the Premises, learn about its methods of operation, and/or gain insight into the Cannabis industry. A “tour” does not include visits by: (1) Employees of the Cannabis Business; (2) Employees of other Cannabis Businesses licensed by the State of California with which the Permittee is conducting business; (3) Persons authorized to conduct inspections; (4) Persons engaging in law enforcement activities; (5) Persons providing incidental business services, such as repairs or, deliveries; or (6) Persons affiliated with a government agency who have received approval from the Cannabis Business and the Office of Cannabis to conduct a tour of the Cannabis Business. (d) Prior to January 1, 2019, the Director shall adopt rules and regulations governing tours of Cannabis Businesses. The Director is authorized to extend the prohibition on tours set forth in subsection (b) of this Section 1621, or authorize tours, subject to limitations he or she may adopt to protect the health and safety of employees, neighbors and Customers, prohibit access to Cannabis and Cannabis Products by underage persons, preserve the character of the surrounding neighborhood, and mitigate any potential noise and/or traffic congestion. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018)

(a) Cannabis Event Permits. In addition to the Cannabis Business Permits described elsewhere in this Article 16, the Director may, as set forth in this Section 1621.5, issue Cannabis Event Permits authorizing sales of cannabis or cannabis products to, and/or consumption of cannabis or cannabis products by, persons 21 years of age or older, in connection with temporary events. For purposes of this Section, “temporary events” shall be defined consistent with California Business and Professions Code Section 26200(e) and implementing regulations. Such events may be held in any location approved by the Director and otherwise consistent with applicable State and City laws, whether that location is on or off the Premises of a Cannabis Business. (b) Applications. Each applicant for a Cannabis Event Permit shall file an application with the Director in such form as the Director may require, and provide the Director with a list that conforms to subsection (d) of all individuals and entities that will provide onsite sales of cannabis goods at the proposed event, an Event Permit Equity Plan as described in subsection (e), and any requested information concerning the applicant and related Persons, the proposed event, and other subjects that the Director deems relevant to the proposed event. Additionally, each applicant shall pay the application fee set forth in Section 249.20 of the Business and Tax Regulations Code. (c) State Approval. A Cannabis Event Permit may be issued only to an applicant who holds an Event Organizer License issued by the California Bureau of Cannabis Control, or that is otherwise authorized by State law to organize temporary cannabis events. (d) Qualifications for Retailers. Only individuals or entities that hold a Cannabis Business Permit, or an individual employed by a Cannabis Business Permit holder acting as an agent of that permit holder, may provide onsite sales of cannabis goods at the event, and only if said individuals and/or entities have been identified in the application for the Cannabis Event Permit. For purposes of this section, a “Cannabis Business Permit” shall include both a Cannabis Business Permit as defined in Section 1602 of this Code, and a Medical Cannabis Dispensary Permit issued under Article 33 of the Health Code that includes the authorization to Sell Adult Use Cannabis set forth in Section 3322(d), (e), and (f) of the Health Code. A Cannabis Event Permit may not be issued to an applicant unless the applicant identifies the individuals and/or entities that will provide onsite sales of cannabis goods at the event and affirms that said individuals and/or entities either hold a Cannabis Business Permit or are employed by a holder of a Cannabis Business Permit and will be acting as an agent of that permit holder. (e) Equity Criteria for Cannabis Event Permit Applicants. As a condition of permit issuance, Applicants for Cannabis Event Permits must submit to the Director for review and approval a written “Event Permit Equity Plan,” in which the applicant describes the specific actions it will take to support the City’s equity goals as described in Section 1604(a), the dates by which the applicant will take the listed actions, and an estimated dollar value for each of the actions. Actions a Cannabis Event Permit applicant may take to satisfy this requirement include but are not limited to the following:

(1) Ensuring that a minimum of 30% of all work hours expended in preparing and executing the event that is the subject of the requested Cannabis Event Permit (the “Event”) are performed by workers who meet at least three of the criteria set forth in Section 1604(b) (4); (2) Providing training and mentorship opportunities to workers who meet at least three of the criteria set forth in Section 1604(b)(4); (3) Ensuring that a substantial portion of Cannabis-related products showcased and sold at the Event are provided by businesses that are one of the following: Equity Operators, as defined in Section 1604(c)(9)(C); Medical Cannabis Dispensary permit holders that have been verified as Equity Applicants under Section 1604; or Cannabis Businesses in jurisdictions outside San Francisco with a local equity program, as defined in Section 26240(e) of the California Business and Professions Code, as may be amended from time to time, that are classified as Equity Operators or the equivalent under the governing law of that jurisdiction; and/or (4) Donating cash, in-kind goods, services, and/or technical assistance to community organizations that serve equity goals. (f) Concurrence of Relevant City Departments. Whenever any other City department, office, agency, committee, commission, or official, or combination thereof (collectively, “City entity”) has issued a permit in connection with a temporary event, or has received an application for such a permit, or otherwise has the authority to issue permits or other approvals necessary for a temporary event, and an applicant seeks a Cannabis Event Permit in connection with that event, the Director shall consult with each such City entity before issuing any Cannabis Event Permit. In each such case, the Director shall not issue a Cannabis Event Permit unless each City entity determines, under the criteria it may otherwise use to grant or deny a permit in connection with the proposed event (including, but not limited to, any policy adopted by the City entity relating to cannabis sales and/or consumption at events) that the Cannabis Event Permit should issue, except that the Director may issue a permit conditioned upon approval by other City entities pending review by those other City entities. (g) Temporary Waiver of Certain City Laws. A City entity described in subsection (f) may, in its discretion and after considering public health and public safety, temporarily waive, for a period not to exceed the duration of the proposed event, any City law that would restrict or prohibit smoking (including, but not limited to, Article 19 through Article 19L of the Health Code) in all or part of the proposed event space, or any other provision of the Administrative, Health, Park, or Police Codes that would otherwise restrict or prohibit the consumption of cannabis or cannabis products in all or part of the proposed event space. When any such City law is waived pursuant to this subsection (g), the event shall be deemed to be in compliance with the suspended City law for purposes of any City law requiring such compliance. This subsection (g) shall not be construed to authorize any waiver of State law. (h) Discretionary Grant or Denial. Except as provided in subsections (c), (d), (f), and (k), the Director may grant a Cannabis Event Permit in his or her reasonable discretion, or may deny a Cannabis Event Permit in his or her reasonable discretion based on one or more of the following findings: (1) The applicant has not sufficiently established that the sale or consumption of cannabis or cannabis products at the event would comply with all applicable State and City laws; (2) The applicant has not sufficiently established that the sale or consumption of cannabis or cannabis products at the event would be consistent with public health or public safety; (3) The applicant has not sufficiently established that the sale or consumption of cannabis or cannabis products at the event would not have adverse impacts on nearby neighborhoods or public spaces; (4) The applicant has not taken steps sufficient to reasonably ensure that the only individuals and/or entities that will provide onsite sales of cannabis goods at the proposed event are those that have been identified on the application as either holding a Cannabis Business Permit or being employed by a holder of a Cannabis Business Permit and acting as an agent of that permit holder; (5) The applicant has provided materially false or incomplete information in support of the application, or has otherwise engaged in conduct that gives the Director cause to doubt the applicant’s credibility or good faith; (6) The applicant has not made a good faith effort to comply with its Event Permit Equity Plan, submitted under subsection (e); (7) There is insufficient time to process the permit application adequately in advance of the proposed event; or (8) There is other good cause to deny the permit. (i) Permit Conditions. Any applicant awarded a Cannabis Event Permit shall be responsible for ensuring that the temporary event is conducted in compliance with all State and City laws applicable to the sale and consumption of cannabis at the event. The Director may impose any permit conditions that the Director deems conducive to the protection of public health and safety, the mitigation of potential adverse impacts on nearby neighborhoods or public spaces, and the prevention of underage or otherwise unlawful access to cannabis or cannabis products, or that otherwise would be conducive to the safe, lawful, and orderly operation of the proposed event. (j) Enforcement and Implementation. Any or all of the following actions may be taken in conjunction with the implementation or enforcement of this Section 1621.5: (1) The Director may require an event permitted under this Section 1621.5 to cause any sales or consumption of cannab

ts, or that otherwise would be conducive to the safe, lawful, and orderly operation of the proposed event. (j) Enforcement and Implementation. Any or all of the following actions may be taken in conjunction with the implementation or enforcement of this Section 1621.5: (1) The Director may require an event permitted under this Section 1621.5 to cause any sales or consumption of cannabis or cannabis products at the event to cease or otherwise be limited, without delay or within such other timeframe as the Director determines, if the Director determines that such action is necessary to protect public health or safety, or to ensure compliance with applicable State or City laws. (2) The Director may require the holder of a Cannabis Event Permit to expel from the event any participant selling cannabis or cannabis products in a manner inconsistent with applicable State or City laws. (3) Any violation of this Section 1621.5, or of applicable State or City laws, or of any permit condition imposed pursuant to this Section, or any material false statement made to the Director in connection with an application for a Cannabis Event Permit, may be punished as a violation of this Article 16, using procedures consistent with Sections 1631 and Section 1632.

(4) Any violation of this Section 1621.5, of applicable State or City laws, or of any permit condition imposed pursuant to this Section, or any material false statement made to the Director in connection with an application for a Cannabis Event Permit, may be cause for denial of any application for a Cannabis Business Permit submitted by the holder of the Cannabis Event Permit or by any other party responsible for the violation, for suspension or revocation of any existing Cannabis Event Permit, and for suspension or revocation of any other existing permit to engage in Commercial Cannabis Activity. (k) Pilot Program. Prior to January 1, 2027, the Director may issue Cannabis Event Permits only in connection with events that meet all the following criteria: (1) The event has previously been held on a regular basis; (2) The event, in prior years, has received a City-issued permit; and (3) At the event, in prior years, there has been significant unregulated cannabis sales or consumption, which the Director determines could be reduced or eliminated at the event by the issuance of a Cannabis Events Permit. The restrictions imposed by this subsection (k) on the operation of this Section 1621.5 shall become inoperative on January 1, 2027. On or after that date, the City Attorney is authorized to cause this subsection (k) of Section 1621.5 to be removed from the Police Code. (l) Appeals to Board of Appeals. A decision to grant, deny, suspend, or revoke a permit under this Section 1621.5 , or to add or remove a permit condition under this Section, may be appealed to the Board of Appeals in the manner prescribed in Article 1 of the Business and Tax Regulations Code. (Added by Ord. 58-19, File No. 190109, App. 3/29/2019, Eff. 4/29/2019, Retro. 4/20/2019; amended by Ord. 284-19, File No. 190756, App. 12/20/2019, Eff. 1/20/2020, Retro. 7/9/2019; Ord. 176-21, File No. 210421, App. 10/29/2021, Eff. 11/29/2021; Ord. 198-21, File No. 210865, App. 11/5/2021, Eff. 12/6/2021; Ord. 247-23, File No. 231077, App. 12/15/2023, Eff. 1/15/2024, Retro. 1/1/2024) SEC. 1622. DELIVERIES OF CANNABIS AND CANNABIS PRODUCTS TO CUSTOMERS. (a) The Delivery of Cannabis or Cannabis Products to Customers within San Francisco is prohibited except by Storefront Cannabis Retailers and Delivery-Only Cannabis Retailers that are permitted by the Office of Cannabis and receive express authorization to engage in Deliveries from the Director. The Delivery of Cannabis or Cannabis Products within San Francisco by Cannabis Businesses that are located outside of San Francisco is prohibited. (b) Permitted Cannabis Businesses that receive authorization from the Director to engage in Deliveries must comply with such Delivery Standards as may be adopted by the Director, including but not limited to the following: (1) Deliveries may only be conducted by employees of the Permitted Cannabis Business. Deliveries may not be conducted by independent contractors. (2) An employee conducting a Delivery must deliver the Cannabis or Cannabis Product to an address associated with real property (e.g. not to a street corner or location within a park). (3) Orders must be completed by individuals aged 21 or over (with valid California driver’s license or Identification card). (4) Deliveries must be made during the Cannabis Business’ hours of operation. (5) Delivery may only be made to the individual who placed the Bona Fide Order, and to individuals who are 21 years of age or older, unless the Customer provides verification that the Customer, or a patient for whom he or she is a Primary Caregiver, qualifies under California Health and Safety Code Section 11362.7 et seq. to use Medicinal Cannabis. (6) Upon Delivery, the employee performing the Delivery must: (A) Personally review the Bona Fide Proof of Age and Identity of the Customer to confirm that he or she is the same individual who submitted the Bona Fide Order, and is not underage, as set forth in Section 1619 of this Article 16; (B) Where the product being sold is Medicinal Cannabis or a Medicinal Cannabis Product, personally review documentation verifying that the Customer possesses a valid Physician’s Recommendation; (C) Require the Customer to sign a document indicating the type and quantity of Cannabis and/or Cannabis Products that were Delivered; and (D) Distribute to each Customer at the time of sale a fact sheet relating to safe Consumption of Cannabis and Cannabis Products, the content of which shall be produced by the Department of Public Health. (7) A Cannabis Business may not Deliver more than the quantities of Cannabis or Cannabis Products allowed for delivery under State law to the same real property (e.g., apartment unit or house) in the same business day. (8) Cannabis and Cannabis Products that are Delivered to a Customer must comply with all State and local packaging and labeling rules. (9) All Cannabis and Cannabis Products shall be kept in a lock-box securely affixed inside the Delivery vehicle. (10) A manifest must be created for each Delivery or series of Deliveries prior to departure, and the Delivery employee may not make any unnecessary stops between Deliveries or deviate substantially from the manifest route, unless a stop is necessary for personal safety.

(11) A Cannabis Business authorized to engage in the Delivery of Cannabis and/or Cannabis Products shall comply with all track and trace requirements imposed by state law, and shall document the following information regarding Deliveries pursuant to track and trace: (A) The date and time the Bona Fide Order was received by the Cannabis Business; (B) The date and time the Cannabis and/or Cannabis Products were Delivered; (C) A description of the Cannabis and/or Cannabis Products that were Delivered, including the weight or volume and price paid by the Customer; (D) The name of the Delivery employee who performed the Delivery; and (E) The name of the individual to whom the Delivery was made, and the Delivery address. (12) A Cannabis Business authorized to engage in Deliveries must Deliver Cannabis and Cannabis Products by Vehicle only, and the total value of Cannabis and Cannabis Products that may be carried in the vehicle at one time may not exceed any applicable limits established by the Director. Delivery of Cannabis and Cannabis Products by motorcycles, scooters, drones, human powered vehicles, and unmanned vehicles is prohibited. The enumeration of the specific Delivery Standards set forth in this Section 1622 shall not be construed to limit the Director’s authority to adopt any additional Delivery Standards consistent with the purposes of this Article 16. Such additional Delivery Standards may include, but need not be limited to, Delivery Standards to ensure that all Persons involved, directly or indirectly, in Deliveries of Cannabis and Cannabis Products operate in a manner consistent with this Article 16. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019) SEC. 1623. CANNABIS CULTIVATION FACILITIES. (a) Authorized activities. A Cannabis Cultivation Facility Permit authorizes the Permittee to engage in the Commercial Cultivation and Processing of Medicinal Cannabis and Adult Use Cannabis, provided that the Permittee is both an A-licensee and an M-licensee. A Cannabis Cultivation Facility Permittee that holds only an A-license may engage in the Commercial Cultivation and Processing of Adult Use Cannabis only. A Cannabis Cultivation Facility Permittee that holds only an M-License may engage in the Cultivation and Processing of Medicinal Cannabis only. (b) Operating Standards. In addition to the operating requirements set forth in Section 1618 of this Article 16, a Cannabis Cultivation Facility shall comply with the following Cultivation operating standards: (1) The Premises to be used as a Cannabis Cultivation Facility may not exceed 22,000 square feet of total Canopy. Canopy shall be calculated on a square foot basis and shall include any vertical growth space, such as shelving. (2) A Cannabis Cultivation Facility may engage in the indoor Cultivation of Cannabis only; the outdoor Cultivation of Cannabis is prohibited. For purposes of this Article 16, “indoor Cultivation” and “outdoor Cultivation” shall have the meaning set forth in regulations promulgated by the California Department of Food and Agriculture pursuant to the Medicinal and Adult Use Cannabis Regulation and Safety Act. (3) All Cultivation activities must not be visible from the public right-of-way. (4) A Cannabis Cultivation Facility must have weighing and measuring devices used in connection with the Sale or Distribution of Cannabis that meet state standards. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1624. CANNABIS MANUFACTURING FACILITIES. (a) Authorized activities. A Cannabis Manufacturing Facility Permit authorizes the Permittee to engage in the Commercial Manufacture of Medicinal Cannabis Products and Adult Use Cannabis Products, provided that the Permittee is both an A-licensee and an M-licensee. A Cannabis Manufacturing Facility Permittee that holds only an A-license may engage in the Commercial Manufacture of Adult Use Cannabis Products only. A Cannabis Manufacturing Facility Permittee that holds only an M-License may engage in the Manufacturing of Medicinal Cannabis Products only. (b) Operating Standards. In addition to the operating requirements set forth in Section 1618 of this Article 16, a Cannabis Manufacturing Facility shall comply with the following Manufacturing operating standards: (1) A Cannabis Manufacturing Facility may Manufacture Cannabis Products only; it may not Manufacture products that do not contain Cannabis. (2) A Cannabis Manufacturing Facility may engage in Cannabis oil extraction, subject to any limitations imposed by the Planning Code, the Planning Department or the Planning Commission.

(3) A Cannabis Manufacturing Facility may not produce or Sell Edible Cannabis Products that do not comply with the requirements of Sections 26130 and 26131 of the California Business and Professions Code, as may be amended from time to time, and any regulations promulgated thereto. (4) A Cannabis Manufacturing Facility may use Volatile Solvents only if the operator holds a State Cannabis License authorizing their use. (5) A Cannabis Manufacturing Facility using Volatile Solvents for Manufacturing Cannabis Products must operate in a manner to reduce the risk of explosion or danger to public health, including through the use of a close-loop or solvent dispersion system consistent with the requirements of California Health and Safety Code Section 11362.775, as may be amended from time to time. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1625. CANNABIS TESTING FACILITIES. (a) Authorized activities. A Cannabis Testing Facility Permit authorizes the Permittee to engage in the Commercial testing of Medicinal Cannabis and Cannabis Products and Adult Use Cannabis and Cannabis Products. (b) Operating Standards. In addition to the operating requirements set forth in Section 1618 of this Article 16, a Cannabis Testing Facility shall: (1) Notify the Department of Public Health and Office of Cannabis of any tests performed on Cannabis or Cannabis Products Cultivated or Manufactured by a Cannabis Business located in San Francisco where the Cannabis batch fails the testing requirements established by state regulation within five business days of conducting such test. Such notification shall include the name, State license number and local Permit number of the Manufacturer that provided the Cannabis to be tested, and information related to the test results, reason for failure, and any applicable track and trace information; (2) Notify the Office of Cannabis within 24 hours of conducting a test if a sample that was Cultivated, Manufactured, or supplied by a Cannabis Business located in San Francisco is found to contain levels of a contaminant not allowable by the State that could be injurious to human health if Consumed. The Office of Cannabis shall provide this information to appropriate City and state departments, including but not limited to the Department of Public Health; (3) Notify the Office of Cannabis within one business day after receipt of notice that accreditation as a Cannabis Laboratory has been denied, suspended or revoked; and (4) Employ at least one full-time employee responsible for quality control. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1626. CANNABIS DISTRIBUTORS. (a) Authorized activities. A Cannabis Distributor Permit authorizes the Permittee to engage in the Commercial Distribution of Medicinal Cannabis and Adult Use Cannabis, provided that the Permittee is both an A-licensee and an M-licensee. A Cannabis Distributor that holds only an A-license may engage in the Commercial Distribution of Adult Use Cannabis and Cannabis Products only. A Cannabis Distributor that holds only an M-License may engage in the Commercial Distribution of Medicinal Cannabis and Cannabis Products only. (b) Operating Standards. In addition to the operating requirements set forth in Section 1618 of this Article 16, a Cannabis Distributor shall comply with the following operating standards: (1) A Cannabis Distributor shall inspect all Cannabis and Cannabis Products received by it for quality assurance prior to Distribution. (2) A Cannabis Distributor shall Distribute Cannabis and Cannabis Products by Commercial Vehicle only. Distribution by non- Commercial Vehicles, drones, human powered vehicles, and unmanned vehicles is prohibited. (3) If a Cannabis Distributor receives notice that any Cannabis or Cannabis Products that are currently or were previously in the Cannabis Distributor’s possession, and that were either Cultivated or Manufactured by a Cannabis Business located in San Francisco or intended for possible distribution or sale to a Cannabis Business located in San Francisco, have been tested and have failed any requirements established by state regulation, the Cannabis Distributor shall notify the Department of Public Health and the Office of Cannabis as soon as practicable, and no later than 48 hours after the Cannabis Distributor receives notice of those results. Such notification shall include, to the extent available to the Cannabis Distributor, the name, State license number, and local Permit number of the Manufacturer that provided the Cannabis to be tested, the test results, reason for failure, and any applicable track and trace information. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 301-19, File No. 191174, App. 12/20/2019, Eff. 1/20/2020) SEC. 1627. CANNABIS MICROBUSINESSES.

(a) Authorized activities. A Cannabis Microbusiness Permit authorizes the Permittee to engage in the Commercial Cultivation, Manufacture, Distribution, and Sale (either as a Storefront Retail Cannabis Business or a Delivery-Only Cannabis Business Retailer) of Medicinal Cannabis and Cannabis Products and Adult Use Cannabis and Cannabis Products, provided that the Permittee is both an A- licensee and an M-licensee. A Cannabis Microbusiness that holds only an A-license may engage in the aforementioned Commercial activities relating to Adult Use Cannabis and Cannabis Products only. A Cannabis Microbusiness that holds only an M-License may engage in the aforementioned Commercial activities relating to Medicinal Cannabis and Cannabis Products only. (b) Operating Standards. In addition to the operating requirements set forth in Section 1618, a Cannabis Microbusiness shall comply with the operating standards set forth in Sections 1623, 1624, 1626, and and either Section 1628 or Section 1629 of this Article 16 , and shall comply with the following additional operating standards: (1) A Cannabis Microbusiness shall conduct no less than three of the following four categories of Commercial activity on the same Premises: Cultivation, Manufacture, Distribution, and Sale. (2) The area on which a Cannabis Microbusiness Cultivates Cannabis must be less than 10,000 square feet. (3) The use of Volatile Solvents by a Cannabis Microbusiness is prohibited. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019) SEC. 1628. STOREFRONT CANNABIS RETAILERS. (a) Authorized activities. (1) A Medicinal Cannabis Retailer permit authorizes the Permittee to engage in the retail Sale of Medicinal Cannabis and Medicinal Cannabis products only. (2) A Cannabis Retailer permit requires the Permittee to engage in the retail Sale of both Medicinal and Adult Use Cannabis and Cannabis Products. (3) A Storefront Cannabis Retailer permit does not authorize the Permittee to engage in the Delivery of Cannabis or Cannabis Products to Customers unless the Director has authorized the Permittee to engage in deliveries, as set forth in Section 1622 of this Article 16. (b) Operating Standards. In addition to the operating requirements set forth in Sections 1618,1 a Storefront Cannabis Retailer shall comply with the following additional operating requirements: (1) A Storefront Cannabis Retailer must be operated from a fixed place of business. It may not be operated out of a bus, truck, car, van, or any other mobile location or location that is capable of being mobile. (2) A Storefront Cannabis Retailer shall post staff at the point of entry to the Premises to confirm that all Customers who enter are not underage, as set forth in Section 1619 of this Article 16. (3) A Storefront Cannabis Retailer must make available to Customers a fact sheet relating to safe Consumption of Cannabis and Cannabis Products, to be produced by the Department of Public Health. (4) A Storefront Cannabis Retailer shall not employ or enter into any agreements with any physicians who recommend Medicinal Cannabis or with any third party that employs physicians who recommend Medicinal Cannabis. (5) A Storefront Cannabis Retailer licensed to sell Adult Use Cannabis may not Sell more than 28.5 grams of non-concentrated Adult Use Cannabis or eight grams of concentrated Adult Use Cannabis Products to a Customer in the same business day. (6) A Storefront Cannabis Retailer licensed to sell Medicinal Cannabis may not Sell more than eight ounces of Medicinal Cannabis or 12 immature Cannabis plants to a Customer in the same business day, unless the Customer provides a Physician’s Recommendation requiring a greater amount. (7) A Storefront Cannabis Retailer may not: (A) Allow Customers on the Premises during hours of closure; (B) Store Cannabis or Cannabis Products in any location other than on the permitted Premises; (C) Sell Cannabis or Cannabis Products through a drive-up window; (D) Give away or Sell pressurized containers of butane or other materials that could be used in the home production of Cannabis extract. (8) A Storefront Cannabis Retailer may accept returns of Cannabis and Cannabis Products that were previously sold by the Storefront Cannabis Business, but shall not resell Cannabis or Cannabis Products that have been returned. A Storefront Cannabis Retailer shall treat any Cannabis and Cannabis Products that are abandoned on the Premises as a return. A Storefront Cannabis Retailer shall destroy all Cannabis and Cannabis Products that have been returned as required by the State of California. (9) A Storefront Cannabis Retailer must maintain an electronic age verification device to determine the age of any individual attempting to purchase Cannabis or Cannabis Products, which device shall be used for the Sale of the Cannabis or Cannabis Products to the Customer.

The device shall be maintained in operational condition and all employees shall be instructed in its use. Cannabis and Cannabis products shall not be sold to a Customer if the electronic age verification device is not functioning. (10) All operating standards applicable to Sales of Cannabis and Cannabis Products that are made on the Premises of the Cannabis Business shall apply equally to Sales that are made by Delivery pursuant to Section 1622. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019) CODIFICATION NOTE

1. So in Ord. 230-17.

(a) Authorized Activities. A Cannabis Café permit authorizes the Permittee to engage in the retail Sale of both Medicinal and Adult Use Cannabis and Cannabis Products to Customers. A Cannabis Café permit does not authorize the Permittee to engage in the Delivery of Cannabis or Cannabis Products to Customers. (b) Operating Standards. In addition to the operating requirements set forth in Sections1 1618, a Cannabis Café shall comply with the following operating requirements: (1) A Cannabis Café must be operated from a fixed place of business. It may not be operated out of a bus, truck, car, van, or any other mobile location or location that is capable of being mobile. (2) A Cannabis Café shall post staff at the point of entry to the Premises to confirm that all Customers who enter are not underage, as set forth in Section 1619 of this Article 16. (3) A Cannabis Café must make available to Customers a fact sheet relating to safe Consumption of Cannabis and Cannabis Products, to be produced by the Department of Public Health. (4) A Cannabis Café shall not employ physicians for the purpose of recommending Medicinal Cannabis to Customers and shall not enter into any agreements with physicians for such purpose or with a third party that employs physicians for such purpose. (5) A Cannabis Café may Sell Medicinal or Adult Use Cannabis or Cannabis Products to Customers for Consumption on the Premises subject to the following limitations: (A) A Cannabis Café shall only Sell Cannabis or Cannabis Products to Customers for Consumption on the Premises. All menus and other listings of products for sale at a Cannabis Café shall include in a font that is bolded, underlined, and equal to or larger than the font used for product listings a statement that all products are only for Consumption on the Premises and may not be taken off the Premises. (B) A Cannabis Café may only Sell Cannabis or Cannabis Products that are approved for Consumption on the Premises under the Cannabis Café’s Cannabis Consumption Permit. (C) A Cannabis Café may not Sell in a single business day Cannabis or Cannabis Products to a Customer in a quantity that exceeds the state legal limit for sale of non-concentrated Adult Use Cannabis or concentrated Adult Use Cannabis Products. A Cannabis Café may not Sell more than eight ounces of Medicinal Cannabis to a Customer in a single business day unless the Customer provides a physician’s recommendation for a greater amount. The Director may adopt regulations to further limit the amount of Cannabis or Cannabis Products, including Medicinal Cannabis, that may be sold to a Customer in a single business day. (6) A Cannabis Café may not: (A) Allow Customers on the Premises when the Cannabis Café is closed; (B) Store Cannabis or Cannabis Products in any location other than on the permitted Premises; (C) Sell Cannabis or Cannabis Products through a drive-up window; or (D) Give away or Sell pressurized containers of butane or other materials that could be used in the home production of Cannabis extract. (7) A Cannabis Café may accept returns of Cannabis and Cannabis Products that were previously sold by the Cannabis Café, but shall not resell Cannabis or Cannabis Products that have been returned. A Cannabis Café shall destroy all Cannabis and Cannabis Products that have been returned or abandoned in a manner consistent with state and local law. (8) A Cannabis Café must maintain an electronic age verification device to determine the age of any individual attempting to enter the premises and/or purchase Cannabis or Cannabis Products, which device shall be used for the Sale of the Cannabis or Cannabis Products to the Customer. The device shall be maintained in operational condition and all employees shall be instructed in its use. Cannabis and Cannabis Products shall not be sold to a Customer if the electronic age verification device is not functioning. (9) A Cannabis Café must comply with all applicable provisions of Articles 8 and 8A of the Health Code, and all applicable provisions of the California Retail Food Code. (Added by Ord. 131-26, File No. 260281, App. 7/23/2026, Eff. 8/23/2026) CODIFICATION NOTE

1. So in Ord. 131-26.

SEC. 1629. DELIVERY-ONLY CANNABIS RETAILERS. (a) Authorized Activities. A Delivery-Only Cannabis Retailer permit requires the Permittee to engage in the Delivery and Sale of both Medicinal Cannabis and Cannabis Products and Adult Use Cannabis and Cannabis Products. (b) Only Delivery Authorized. The Premises of a Delivery-Only Cannabis Retailer must be closed to the public and all Sales must be conducted exclusively by Delivery. A Delivery-Only Cannabis Retailer may not permit entry on to its Premises by Customers. (c) Operating Standards. In addition to the operating requirements set forth in Section 1618, a Delivery-Only Cannabis Retailer shall comply with the following additional operating requirements: (1) A Delivery-Only Cannabis Retailer licensed to sell Adult Use Cannabis may not Sell more than 28.5 grams of non-concentrated Adult Use Cannabis or eight grams of concentrated Adult Use Cannabis Products to a Customer in the same business day. (2) A Delivery-Only Cannabis Retailer licensed to sell Medicinal Cannabis may not Sell more than eight ounces of Medicinal Cannabis or 12 immature Cannabis plants, in the same business day, unless the Customer provides a Physician’s Recommendation requiring a greater amount. (3) All inventory must be stored on the Premises. (4) A Delivery-Only Cannabis Retailer may not employ or enter into any agreements with any physicians who recommend Medicinal Cannabis or with any third party that employs physicians who recommend Medicinal Cannabis. (5) A Delivery-Only Cannabis Retailer must provide to all Delivery personnel a remote electronic age verification device to determine the age of any individual attempting to purchase Cannabis or Cannabis Products, which device shall be used upon the Delivery of the Cannabis or Cannabis Products to the Customer. The device shall be maintained in operational condition and all employees shall be instructed in its use. Cannabis and Cannabis products shall not be Delivered to a Customer if the electronic age verification device is not functioning. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019) SEC. 1630. INSPECTIONS. New Ordinance Notice Publisher's Note: This section has been AMENDED by new legislation (Ord. 131-26 , approved 7/23/2026, effective 8/23/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is operative. (a) Any member of the Office of Cannabis, the Police Department, the Department of Public Health, the Department of Building Inspection, the Planning Department, and/or any other Referring Department (collectively, “Inspecting Departments”) may enter and inspect the Premises of any Cannabis Business and any vehicle used for the purpose of Distribution or Delivery, to determine whether the Cannabis Business is operating in compliance with State law or this Article 16 (including compliance with conditions on the permit). (b) Pursuant to this Section 1630, the Inspecting Departments shall have access to the Cannabis Business Premises, video footage, business records, data, inventory levels and information relating to Customers, vendors, Cannabis Products, plans and agreements (collectively, “Confidential Information”). To the extent authorized by law, an Inspecting Department shall not disclose Confidential Information to the public, and shall use the Confidential Information only for purposes specified in this Article 16 or other laws and regulations of the City specifically related to the City Permittees from whom such Confidential Information has been received. Notwithstanding the foregoing, the City may disclose Confidential Information: (1) As may be required by the California Public Records Act or the San Francisco Sunshine Ordinance or other state or City law, or pursuant to a valid subpoena or court order; or (2) In connection with any City enforcement proceeding relating to compliance with laws specifically applicable to Cannabis Businesses, but only to the extent the Confidential Information is relevant to the proceeding. (c) The Police Department may conduct random, onsite “sting” operations on the Premises of Cannabis Retailers to determine

compliance with Section 1619 of this Article 16. In conducting these inspections, the Police Department may enlist the assistance of persons under 21 years of age. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1631. NOTICE OF VIOLATION; HEARING AND APPEAL. (a) If the Director determines that a Cannabis Business is operating in violation of this Article 16 (which is deemed in the entirety of this Section 1631 to include a violation of a permit condition and/or a violation of the rules and regulations adopted pursuant to this Article), the Director may issue a Notice of Violation to the Cannabis Business, the owner of real property where the violation occurred, and/or any other Persons the Director deems responsible for causing the violation. (b) The Notice of Violation shall include the following information: (1) That the Director has made a determination that the Cannabis Business is operating in violation of this Article 16; (2) The alleged acts or failures to act that constitute the basis for the Director’s determination; (3) That the Director intends to take enforcement action against the Cannabis Business, owner of real property, and/or any other Person deemed responsible for causing the violation(s), and the nature of that action, including the administrative penalty and enforcement costs to be imposed, additional conditions on Cannabis Business Permit(s) that may be imposed, and/or the suspension or revocation of Cannabis Business Permit(s); (4) That the Cannabis Business, owner of real property, and/or any other Person deemed responsible for causing the violation(s) has the right to request a hearing before the Director within 15 days after the Notice of Violation is mailed, and that the written request for hearing must state facts demonstrating that: (A) If the violation is disputed, the Cannabis Business was operating in compliance with this Article 16 and/or the rules and regulations adopted pursuant to this Article; and (B) Whether or not the violation is disputed, the Cannabis Business is currently operating in compliance with this Article 16 and/or the rules and regulations adopted pursuant to this Article, and has taken reasonable steps to prevent violations similar to the alleged violation(s), and arranged for the Director to re-inspect the Cannabis Business to confirm such reasonable steps. Where no such showing has been made, any Person or entity served with a notice or order by the Director setting forth the nature of the violation of this Article, such person shall be presumed, in subsequent administrative and/or civil proceedings, not to have corrected such violation. (c) If no request for a hearing is filed with the Director within the appropriate period, or the request for hearing does not include the information required by subsection (b)(4) of this Section 1631, 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 Director shall issue an order imposing the enforcement action and mail the order to the Persons served with the Notice of Violation. In subsequent civil proceedings, such violations shall be presumed not to have been corrected. Where no hearing is timely requested, an order suspending, revoking, or imposing additional conditions on a permit is final. 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. (d) Upon a timely request for a hearing that includes the information required by subsection (b)(4) of this Section 1631, the Director shall, within 15 days of the request, notify the requester of the date, time, and place of the hearing. The Director shall make available to the requester the photographs and other recorded evidence obtained in support of the Notice of Violation as well as a copy of the report prepared by the Director’s designee, if any, to support the Notice of Violation. Such hearing shall be held no later than 60 days after the Director receives the request, unless time is extended by mutual agreement of the requester and the Director. (e) The Director shall conduct the hearing, or a hearing officer may be designated, who shall have the same authority as the Director to hear and decide the case and make any orders consistent with this Article 16. The Cannabis Business, owner of real property, or other Person(s) deemed responsible for causing the violation(s) may present evidence for consideration, subject to any rules adopted by the Director or hearing officer for the orderly conduct of the hearing. Within 30 days of the conclusion of the hearing, the Director or hearing officer shall render a decision in the form of a written order, which the Director shall promptly serve on the Cannabis Business, owner of real property, or any other Persons charged in the Notice of Violation. The order shall state whether the Notice of Violation has been upheld (in whole or in part), and the enforcement action taken against each party. (f) If the order directs the Cannabis Business, owner of real property, or other person to pay an administrative penalty and/or enforcement costs, such amount shall be paid within ten days from the mailing of the order; the order shall inform the recipient of such deadline for payment. (g) If the order suspends or revokes a permit, or imposes additional permit conditions, it may be appealed to the Board of Appeals in the manner prescribed in Article 1 of the Business and Tax Regulations Code; the order shall inform the recipient of such right to appeal. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1632. ADMINISTRATIVE PENALTIES AND ENFORCEMENT COSTS.

(a) Penalty Amounts. Any Person who violates this Article 16 (which is deemed in the entirety of this Section 1632 to include a violation of a permit condition and/or a violation of the rules and regulations adopted pursuant to this Article) 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. However, in the case of a continuing violation, the Director shall not impose a daily administrative penalty for the second and subsequent days of such violation where the Director finds all of the following: (1) In the 12 months preceding issuance of the Notice of Violation, the Cannabis Business was not issued a Notice of Violation, which was later upheld in whole or in part, for a similar violation; (2) In the 12 months preceding issuance of the Notice of Violation, the Cannabis Business was issued no more than two Notices of Violation, which were later upheld in whole or in part, for any violation of this Article; (3) The violation occurred notwithstanding that the Cannabis Business was acting in good faith; and (4) The Cannabis Business promptly took reasonable steps to prevent future violations similar to the alleged violation(s), and arranged for the Director to re-inspect the Cannabis Business to confirm such reasonable steps. (b) Setting Administrative Penalty. In setting the amount of the administrative penalty, the Director shall consider any one or more of the relevant circumstances presented, including but not limited to the following: the nature and seriousness of the misconduct giving rise to the violation, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the responsible party’s misconduct, and the responsible party’s assets, liabilities, and net worth. (c) Setting Enforcement Costs. In any action where a violation is found, the Director shall assess the Office’s costs of enforcement against the Cannabis Business or any other Persons the Director finds responsible for causing the violation. (d) Payment and Collection of Administrative Penalty and Enforcement Costs. Any administrative penalty and/or enforcement costs assessed under this Article 16 is a debt to the City and County of San Francisco and shall be paid to the Treasurer of the City and County of San Francisco. Any amount paid late shall be subject to an additional late fine of 10% on the unpaid amount. The sum of the unpaid amount and the 10% late fine shall accrue interest at the rate of 1% per month (or fraction thereof) until fully paid; any partial payments made shall first be applied to accrued interest. The City may file a civil action or pursue any other legal remedy to collect such unpaid amount, fine, and interest. In any civil action for collection, the City shall be entitled to obtain a judgment for the unpaid amounts, fine, and interest, and for the costs and attorneys’ fees incurred by the City in bringing such civil action. (e) Lien for Administrative Penalty. Where an activity or condition on San Francisco real property has caused, contributed to, or been a substantial factor in causing the violation, the Director may initiate proceedings to make any unpaid administrative penalty, enforcement costs, fine, and interest, and all additional authorized costs and attorneys’ fees, a lien on the property. Such liens shall be imposed in accordance with Administrative Code Sections 10.230–10.237, or any successor provisions. Before initiating lien proceedings, the Director shall send a request for payment under Administrative Code Section 10.230A. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1633. PERMIT SUSPENSIONS AND REVOCATIONS. (a) Grounds for Suspension or Revocation. The Director may revoke or suspend any Cannabis Business Permit if the Director finds any of the following circumstances to exist: (1) Facts sufficient to support the denial of such permit on any ground set forth in Section 1615 of this Article 16; (2) The Permittee has refused to permit an inspection of its business Premises or its operations under this Article; (3) The Permittee has engaged in any conduct in connection with the operation of the Cannabis Business that violates this Article 16 (which is deemed in the entirety of this Section 1633 to include a violation of a permit condition and/or a violation of the rules and regulations adopted pursuant to this Article), or the Medicinal and Adult Use Cannabis Regulation and Safety Act, and any regulations promulgated thereto; (4) The Director determines that such Cannabis Business is being managed, conducted, or maintained in a way that threatens the health or safety of Customers, employees, or the public at large; (5) The Director finds good cause to suspend or revoke the permit in accordance with Business and Tax Regulations Code Sections 24 and 26; (6) An Owner or manager of the Cannabis Business willfully violated this Article; (7) An Owner or manager of the Cannabis Business willfully made a false statement to the Office, or discovered a false statement made to the Office by any employee or agent of the Cannabis Business and failed to promptly correct such statement; or (8) An Owner has been convicted of a controlled substance felony subsequent to the award of a Cannabis Business Permit; (9) The Permittee was awarded a Cannabis Business Permit as an Equity Incubator and the Permittee has failed to make a good faith effort to comply with its Cannabis Equity Incubator Agreement, as set forth in subsection (c)(4) of Section 1604 of this Article 16. (b) The Director may not suspend or revoke a Cannabis Business Permit under this Article 16 until the Director has issued a Notice of

Violation and provided the Cannabis Business an opportunity to be heard and respond as provided in Section 1631 of this Article 16. A Cannabis Business whose permit has been suspended or revoked must cease operations within 24 hours of the suspension or revocation order being final. (c) Notwithstanding subsection (b) of this section 1633, the Director may suspend summarily any Cannabis Business Permit issued under this Article 16 when, in the judgment of the Director, the public health or safety requires such summary suspension. The Director shall provide written notice of such summary suspension to the permit holder by hand delivery, registered mail, or electronic mail. No more than three days after written notice of such summary suspension is given, the Director shall issue a Notice of Violation identifying the alleged acts or failures to act that constitute the basis for the summary suspension, and provide the Cannabis Business an opportunity to be heard and respond as provided in Section 1631 as to why the summary suspension should end. However, the time for hearing and decision shall be accelerated as follows: Upon a timely request for a hearing that includes the information required by subsection (b)(4) of Section 1631, the Director shall set any requested hearing within seven days, unless time is extended by mutual agreement of the affected parties; and the Director, or a designated hearing officer who shall have the same authority as the Director to hear and decide the case, and make any orders consistent with this Article 16, shall issue a decision on the summary suspension within seven days after hearing. (d) If the Permittee appeals a decision by the Director or hearing officer upholding a summary suspension to the Board of Appeals, the summary suspension shall remain in effect until a final decision is issued by the Board of Appeals. Where a permit is revoked after a summary suspension, the revocation shall be effective immediately and, if the Permittee appeals to the Board of Appeals, shall remain in effect until a final decision is issued by the Board of Appeals. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1634. ADDITIONAL ADMINISTRATIVE ENFORCEMENT ORDERS. (a) Order to Cease Operations Without Permit. Upon a determination by the Director that any Cannabis Business is operating without all valid, effective, and current permits required by this Article 16 , the Director shall issue an Order to Cease Operations Without Permit, which shall be posted prominently on the Premises and mailed to the Cannabis Business. Such Order shall state: (1) The required permits which are lacking; (2) That the Cannabis Business has 24 hours from the time of posting to demonstrate to the Director’s satisfaction that the Cannabis Business has the required valid, effective, and current permits; (3) If the Cannabis Business has not made such demonstration within 24 hours of the time of posting, it must cease operations immediately. 1 hours, that the Cannabis Business must immediately close until such time as it demonstrates to the Director’s satisfaction that the Cannabis Business has the required permits; and (4) If the Cannabis Business fails to close as required by this subsection (a), that the Director shall issue an Immediate Closure Order and close the Premises. (b) Order to Cease Operations without a Permit Inapplicable to Permit Suspensions and Revocations. As set forth in subsection (b) of section 1633, a Cannabis Business whose permit has been suspended or revoked must cease operations within 24 hours of the suspension or revocation order being final. The Director is not required to issue an Order to Cease Operations without a Permit to a Cannabis Business whose Cannabis Business Permit is subject to a final order of suspension or revocation. (c) Immediate Closure Order. The Director shall issue an Immediate Closure Order ordering closure of a Cannabis Business under the following circumstances: (1) 72 hours after the issuance of an Order to Cease Operations Without Permit, the Cannabis Business has not demonstrated to the Director’s satisfaction that the Cannabis Business has the required permits, and the Cannabis Business nevertheless continues to operate; (2) 24 hours after the suspension or revocation of a permit becomes final, the Cannabis Business continues to operate; (3) Without delay, after issuance of a summary suspension. (d) Enforcement. It is the duty of a Cannabis Business and any person owning or managing a Cannabis Business, to obey all orders issued under this Section 1634. To enforce an Immediate Closure Order, the Director shall take such steps as the Director views as reasonable and necessary to enforce such order, including but not limited to securing and barricading the Premises. The Director is hereby authorized to call upon the Police Department and other departments and bureaus to aid and assist the Director in such enforcement, and it shall then be their duty to enforce the provisions of this Article and to perform such duties as may come within their respective jurisdictions. (e) Enforcement Costs. Following an Order under this Section 1634, the Director shall issue a separate order assessing the City’s costs of enforcement, including the costs incurred by the Office as well as the costs incurred by any other City departments, against the Cannabis Business. Such assessments shall be paid within 10 days of issuance of the separate order. Unpaid amounts shall accrue late fines, penalties, and interest, and may be collected as provided in Section 1632 of this Article 16. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. 302-18, File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. 301-19, File No. 191174, App. 12/20/2019, Eff. 1/20/2020) CODIFICATION NOTE

1. So in Ord. 301-19.

SEC. 1635. NUISANCE. Any building or place used by a Cannabis Business in violation of this Article, or where any Commercial Cannabis Activity occurs in violation of this Article 16, is a nuisance which may be remedied as provided by law, including but not limited to the provisions of Article 3 (commencing with Section 11570) of Chapter 10 of Division 10 of the California Health and Safety Code. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1636. ENFORCEMENT BY CITY ATTORNEY. (a) The City Attorney may at any time institute civil proceedings for injunctive and monetary relief including civil penalties, against any Person for violations of this Article 16, without regard to whether the Director has issued a notice of violation, instituted abatement proceedings, scheduled or held a hearing on a notice of violation, or issued a final decision. (b) At any time, the Director may refer a case to the City Attorney’s Office for civil enforcement, but a referral is not required for the City Attorney to bring a civil action under subsection (a). (c) Action for Injunction and Civil Penalty. Any Person that violates any provision of this Article 16 shall be enjoined and shall be subject to a civil penalty in an amount not to exceed $1,000 for each day such violation is committed or permitted to continue, which penalty shall be assessed and recovered in a civil action brought in the name of the people of the City and County of San Francisco by the City Attorney in any court of competent jurisdiction. In assessing the amount of the civil penalty, the court shall consider any one or more of the relevant circumstances presented by any of the parties to the case, including but not limited to, the following: the nature and seriousness of the misconduct giving rise to the violation, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the defendant’s misconduct, and the defendant’s assets, liabilities and net worth. (d) Attorneys’ fees. The prevailing party in any court case or special proceeding to enforce this Article 16 shall recover reasonable attorneys’ fees if the City Attorney elects, at the initiation of the action, to seek recovery of attorneys’ fees and provides notice of such intention to the adverse party or parties. In no court case or special proceeding shall an award of attorneys’ fees to a prevailing party exceed the amount of reasonable attorneys’ fees incurred by the City. (e) Remedies under this Section 1636 are non-exclusive and cumulative to all other remedies available at law or equity. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1637. PUBLIC HEALTH EDUCATION CAMPAIGN. The Department of Public Health shall conduct an ongoing public health education campaign with a particular focus on youth designed to educate the public about the safe consumption and health benefits of cannabis and cannabis products. The Department of Public Health shall launch this campaign within 60 days of the effective date of the ordinance, in Board File Number 171042, establishing this Article 16. (Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018) SEC. 1638. ACCESS TO SUMMARY CRIMINAL HISTORY INFORMATION. The Director is authorized to access local, state, and federal level summary criminal history information for licensing, permitting, and certification of commercial cannabis operations, including but not limited to the cultivation, manufacture, distribution, testing, sale, and delivery of cannabis, and may not disseminate the information to a private entity 1 (Added by Ord. 101-18, File No. 180233, App. 5/4/2018, Eff. 6/4/2018) (Former Sec. 1638 added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; redesignated as Sec. 1640 by Ord. 101-18, File No. 180233, App. 5/4/2018, Eff. 6/4/2018) CODIFICATION NOTE

1. So in Ord. 101-18. SEC. 1639. EQUITY INCUBATOR EMPLOYERS’ CRIMINAL HISTORY INQUIRY.

Notwithstanding Police Code Article 49 or any other provision of City law, employers applying as Equity Incubators may inquire about, require disclosure of, or base employment decisions on, convictions for decriminalized behavior, including the non-commercial use and cultivation of cannabis, to determine whether employees satisfy the Equity Applicant criteria set forth in Section 1604(b)(4). (Added by Ord. 101-18, File No. 180233, App. 5/4/2018, Eff. 6/4/2018) (Former Sec. 1639 added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; redesignated as Sec. 1641 by Ord. 101-18, File No. 180233, App. 5/4/2018, Eff. 6/4/2018) SEC. 1640. UNDERTAKING FOR THE GENERAL WELFARE. In enacting and implementing this Article 16, the City is assuming an undertaking only to promote the general welfare. It is not assuming, nor is it imposing on its officers and employees, an obligation for breach of which it is liable in money damages to any person who claims that such breach proximately caused injury. To the fullest extent permitted by law, the City shall assume no liability whatsoever, and expressly does not waive sovereign immunity, with respect to the permitting and licensing provisions of this Article, or for the activities of any Cannabis Business. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this Article shall not become a personal liability of any public officer or employee of the City. (Added as Sec. 1638 by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; redesignated by Ord. 101-18, File No. 180233, App. 5/4/2018, Eff. 6/4/2018) SEC. 1641. SEVERABILITY. If any section, subsection, sentence, clause, phrase, or word of this Article 16, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of the ordinance. The Board of Supervisors hereby declares that it would have passed this Article and each and every section, subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this ordinance or application thereof would be subsequently declared invalid or unconstitutional. (Added as Sec. 1639 by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018; redesignated by Ord. 101-18, File No. 180233, App. 5/4/2018, Eff. 6/4/2018)