HomeMy WebLinkAboutED Medical Cannabis Policy____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 5/21/2018
Disposition: Ordinance 1960 passed to print and Resolution No. 14508
Agenda Item No: 6.a
Meeting Date: May 21, 2018
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Economic Development
Prepared by: Danielle O’Leary,
Econ. Development Director
City Manager Approval: ______________
TOPIC: SAN RAFAEL MEDICAL CANNABIS POLICY
SUBJECT:
a. ORDINANCE AMENDING CHAPTER 10.96 OF THE SAN RAFAEL MUNICIPAL
CODE ENTITLED “MEDICAL CANNABIS BUSINESS” TO AUTHORIZE AN
ADDITIONAL CATEGORY OF CANNABIS BUSINESS LICENSE WITHIN CITY
LIMITS FOR MEDICAL CANNABIS DISTRIBUTION
b. RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AMENDING AND
RESTATING THE MEDICAL CANNABIS BUSINESS OPERATOR LICENSE PILOT
PROGRAM POLICIES, PRACTICES, AND PROCEDURES
RECOMMENDATIONS:
1. Hold a public hearing and pass the ordinance to print.
2. Adopt resolution amending and restating the Medical Cannabis Business Operator License Pilot
Program policies, practices and procedures.
BACKGROUND:
State Law:
On November 8, 2016, the voters of the State of California enacted Proposition 64 to allow for
nonmedical/recreation adult-use. The regulatory framework in AUMA (Adult Use of Marijuana Act)
establishes a comprehensive system to legalize, control and regulate the cultivation, processing,
manufacture, distribution, testing and sale of nonmedical/recreation adult-use cannabis.
The City of San Rafael has prohibited medical cannabis dispensaries since 1997. Since that time, no
cannabis businesses have been permitted in City limits. In 2015, the State of California began
development of MCRSA (Medical Cannabis Regulation and Safety Act), which was the first
comprehensive regulatory effort enacted by the State through legislative action.
City Staff Review:
In response to the passing of Proposition 64, the San Rafael City Council instructed staff to form a City
Council ad-hoc subcommittee which included Councilmember Kate Colin and Councilmember John
Gamblin to review San Rafael’s cannabis policies; staff support included the: City Manager, Police
Chief, Fire Chief, Community Development Director, Assistant City Attorney, and the Economic
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Development Director. Over the course of several months, the subcommittee reviewed all license types
available under the State’s medical cannabis framework, the Medical Cannabis Regulation and Safety
Act of 2015 (MCRSA), and developed a set of recommendations for full Council consideration.
In July 2017, the Governor signed Senate Bill 94, entitled the Medical and Adult-Use Cannabis
Regulation and Safety Act (MAUCRSA), which took effect immediately. MAUCRSA reconciles the
State’s Medical Cannabis Regulation and Safety Act (MCRSA) with AUMA’s nonmedical/recreation
adult-use cannabis regulations. The State issued the newly revised regulations on November 16, 2017
under their emergency rule making process.
Urgency Cannabis Ordinance:
On December 4, 2017, Council adopted Ordinance No. 1949 (the “Cannabis Urgency Ordinance”),
adding Chapter 10.96 to the San Rafael Municipal Code to advance local regulations for commercial
cannabis activity in San Rafael city limits before the State of California’s January 1, 2018, start date for
accepting commercial cannabis applications.
The Cannabis Urgency Ordinance establishes the following regulations:
Permits Medical Cannabis Commercial Operations
Authorizes three (3) types of commercial medical cannabis licenses:
• Medical cannabis delivery (State License Type 9)
• Medical cannabis infused product manufacturing (State License - Type N)
• Cannabis testing lab (State License – Type 8)
Prohibits Medical Cannabis Commercial Operations
• Cultivation, processing and some manufacturing activities
• Dispensaries
Prohibits Nonmedical/Recreation Adult-use Cannabis Commercial Operations
• All commercial nonmedical/recreation adult-use cannabis activities allowed under AUMA
pending further review of the State’s new MAUCRSA regulations.
The Cannabis Urgency Ordinance established the general regulatory framework, with the details of the
requirements and restrictions for cannabis businesses to be established through a medical cannabis
business resolution. On January 16, 2018, the City Council adopted Resolution No. 14455, which
adopted a Medical Cannabis Business Operator License Pilot Program and implementing policies and
procedures, including authorization of the following license types and license amounts:
o Cannabis Testing Labs (State License Type 8): 4 licenses
o Medical Cannabis Infused Products Manufacturing (State License Type N): 8 licenses
o Medical Cannabis Delivery (State License Type 9): 4 licenses
During the City Council’s discussion at the January 16th, 2018 meeting, questions were raised about the
role of distribution businesses by a member of the public. Staff responded that we would do more
research on the topic and return at a later date, which is the reason for this agenda item.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
ANALYSIS:
As California’s cannabis licensing system continues to be dynamic, the importance of the distribution
license category is becoming more evident. There are three primary reasons that make a distribution
license crucial to the supply chain:
1. Distributors are the only license type that can coordinate the required third-party testing of
licensees’ products.
2. Prior to any retail sale, licensees must ensure that a distributor undertakes quality assurance
packaging and labeling reviews of their products.
3. Distributors are almost exclusively in charge of collection and remittance of the cultivation and
excise taxes to the California Department of Tax and Fee Administration (“CDTFA”).
Distributors are responsible for labeling and providing test results noting the potency, and its safety
information for public consumption. Since cannabis is such a valuable product, distributors
require secure warehouse facilities and vehicles that can both transport product and transport cash
for payment unless retailers and manufacturers are able to pay via check or debit card.
The ad-hoc Cannabis Subcommittee discussed distribution and recommends that the City Council add
two distribution licenses into the pilot program to ensure these functions could be available locally.
Implementing the subcommittee’s recommendation requires the Council to take two actions:
Ordinance Amending San Rafael Municipal Code (SRMC) Chapter 10.96:
The Cannabis Urgency Ordinance (adopting SRMC Chapter 10.96) did not authorize medical cannabis
distribution businesses within the city limits; therefore it is necessary for the Council to adopt an
ordinance amending the Municipal Code to authorize this type of business. Attachment 1 is a proposed
ordinance to make this change.
Resolution Amending Medical Cannabis Business Operator License Pilot Program:
The subcommittee recommended amending the pilot program to authorize the following license types
and amounts:
o Cannabis Testing Labs (State License Type 8): 4 licenses
o Medical Cannabis Infused Products Manufacturing (State License Type N): 8 licenses
o Medical Cannabis Delivery (State License Type 9): 4 licenses
o Medical Cannabis Distribution (State License Type 11): 2 licenses
Attachment 2 is a resolution to make this change. The resolution effectively replaces Resolution No.
14455 by restating in their entirety the provisions of the Pilot Program policies, practices, and
procedures as so amended.
Follow-up action required, if Council approves, would include adding cannabis distribution to our land
use and zoning tables.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Approve the attached ordinance and resolution as recommended by staff.
2. Approve the attached ordinance and/or resolution with modifications.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
3. Continue this item and direct staff to return with more information.
4. Take no action.
RECOMMENDED ACTION:
1. Hold a public hearing and pass the ordinance to print.
2. Adopt the resolution.
ATTACHMENTS
1. Ordinance Amending San Rafael Municipal Code Chapter 10.96
2. Resolution Amending and Restating the Medical Cannabis Business Operator License Pilot
Program
ORDINANCE NO. 1960
AN ORDINANCE OF THE CITY OF SAN RAFAEL
AMENDING CHAPTER 10.96 OF THE SAN RAFAEL MUNICIPAL CODE
ENTITLED "MEDICAL CANNABIS BUSINESS" TO AUTHORIZE AN
ADDITIONAL CATEGORY OF CANNABIS BUSINESS LICENSE
WITHIN CITY LIMITS FOR MEDICAL CANNABIS DISTRIBUTION
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:
DIVISION 1. FINDINGS.
WHEREAS, California law, including the Medical and Adult-Use Cannabis Regulation
and Safety Act (MAUCRSA) and regulations adopted pursuant thereto, authorizes both medical
and nonmedical/recreational adult-use commercial cannabis activities in the state; and
WHEREAS, the State of California began to accept applications and issue licenses for
numerous types of commercial cannabis activities within the state on January 2, 2018; and
WHEREAS, state law reserves to local jurisdictions the right to impose additional local
regulations on medical and nonmedical/recreational adult-use commercial cannabis activities,
and to prohibit them entirely if they choose to do so; and
WHEREAS, to provide for the orderly regulation of the medical commercial cannabis
industry within the City of San Rafael, with the intent of encouraging economic growth and job
creation while protecting the public health, safety and welfare of the residents and patients of
the City, the City Council, on December 4,2017, adopted an urgency ordinance adding Chapter
10.96 to the San Rafael Municipal Code ("SRMC") entitled "Med ical Cannabis Business"; and
WHEREAS, SRMC Chapter 10.96 authorizes, subject to issuance of a City cannabis
business license, three specified types of state-licensed commercial cannabis businesses to
operate within the San Rafael City Limits, namely Testing Laboratory License (Type 8 state
license); Manufacturer License -Medical (Type N, M state license); and Medical Cannabis
Delivery License (Type-9 state license); and
WHEREAS, the City Council finds that businesses licensed for medical cannabis
distribution are a crucial part of the state-licensed medical cannabis business supply chain in
that: 1) distributors are the only license type that can transport cannabis products and are also
the only licensees that can coordinate the required third-party testing of licensees' products; 2)
prior to any retail sale, licensees must ensure that a distributor undertakes quality assurance
packaging and labeling reviews of their products; and 3) distributors are almost exclusively in
charge of collection and remittance of the cUltivation and excise taxes to the California
Department of Tax and Fee Administration ("CDTFA"); and therefore the Council finds that the
effective operation of medical cannabis businesses in San Rafael requires that businesses
licensed for medical cannabis distribution also be permitted in the City;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES'
HEREBY ORDAIN AS FOLLOWS:
1
DIVISION 2. MUNICIPAL CODE AMENDMENT.
Section 10.96.050 of the San Rafael Municipal Code is hereby amended to read in its
entirety as follows:
10.96.050 -Medical Cannabis Businesses Authorized -License Required
Notwithstanding section 10.96.080, the City shall allow medical commercial
cannabis activity and testing laboratories by license only, as described below.
A. Each cannabis business seeking to operate within the City must first
apply and be issued the appropriate license to operate within the City. The
license is specific to the location where the commercial cannabis business
will be operating. Multiple operating locations for the same cannabis business
will require separate licenses. Each license is non-transferrable.
B. A cannabis business may apply for any of the following:
1. Testing Laboratory License. A testing laboratory license is required for
all activities for which MAUCRSA requires a Type 8 state license.
2. Manufacturer License -Medical. A Manufacturer license is required for
all activities for which MAUCRSA requires a Type N, M state license.
3. Medical Cannabis Delivery License. A Type-9 Non-Storefront Retailer
License is required for all activities for which MAUCRSA requires a Type-
9 Non-Storefront Retailer state license to conduct retail cannabis sales
exclusively by delivery as defined in Business and Professions Code
section 26001 (p). For the purpose of licensing, a medical cannabis
delivery non-storefront retailer license shall not be considered a medical
marijuana dispensary as described in Section 14.16.245.
4. Medical Cannabis Distribution License. A Distribution license is
required for all activities for which MAUCRSA requires a Type 11 state
license.
5. No license shall be issued if the cannabis activity is not a permitted land
use in the City.
C. The City Council shall adopt by resolution reasonable regulations
pertaining to the license process for the above identified medical commercial
cannabis businesses allowed within the City.
D. The City Council shall adopt by resolution a limit on the number of each
license type to be issued .
E. Unless expressly permitted and outlined in this chapter, all other types of
cannabis business (medical or non-medical) are prohibited within City limits.
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DIVISION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.
This Ordinance is exempt from the California Environmental Quality Act ("CEQA")
pursuant to the State CEQA Guidelines, since it can be seen with certainty that there is no
possibility that this Ordinance or its implementation would have a significant effect on the
environment (14 Cal. Code Regs. Section 15061 (b)(3)).
DIVISION 4. PUBLICATION; EFFECTIVE DATE
This Ordinance shall be published once in full before its final passage in a newspaper of
general circulation published and circulated in the City of San Rafael, County of Marin, State of
California and shall be in full force and effect 30 days after its final pass ,
ATTEST:
LINDSAY LARA, City Clerk
The foregoing Ordinance No. 1960 was read and introduced at a regular meeting of the City
Council of the City of San Rafael on the 21 st day of May 2018, and was ordered passed to print
by the following vote, to wit:
AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmembers: None
and will come up for adoption as an Ordinance of the City of San Rafael at a regular meeting of
the City Council to be held on the 4th day of June 2018.
LINDSAY LARA, City Clerk
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Medical Cannabis Business Resolution 5-21-2018 City of San Rafael
RESOLUTION NO. 14508
A RESOLUTION OF THE SAN RAFAEL CITY COUNCIL
AMENDING AND RESTATING THE MEDICAL CANNABIS BUSINESS OPERATOR
LICENSE PILOT PROGRAM POLICIES, PRACTICES, AND PROCEDURES
WHEREAS, in 2015, the State Legislature adopted the “Medical Marijuana [now
“Cannabis”] Regulation and Safety Act” (MCRSA) establishing a state licensing process for
“commercial cannabis activity,” defined as including “cultivation, possession, manufacture,
processing, storing, laboratory testing, labeling, transporting, distribution, or sale of medical
cannabis or a medical cannabis product, except as permitted for qualifying patients and primary
caregivers;” and
WHEREAS, on November 8, 2016, the voters of the State of California enacted
Proposition 64, the “Control, Regulate and Tax Adult Use of Marijuana Act” (AUMA), to allow for
nonmedical adult use of cannabis, and implementing regulations were subsequently developed
by the state agencies for this act as well; and
WHEREAS, in July 2017, the Governor signed Senate Bill 94, entitled the “Medical and
Adult-Use Cannabis Regulation and Safety Act” (MAUCRSA), which took effect immediately.
The MAUCRSA directed that the MCRSA’s medical cannabis regulations be coordinated with
AUMA’s nonmedical cannabis regulations; and
WHEREAS, on December 4, 2017, the City Council enacted Ordinance No. 1949, an
urgency ordinance adding new Chapter 10.96 to the San Rafael Municipal Code to limit the
commercial cannabis activities that will be allowed in the City of San Rafael starting on January
2, 2018 to those determined by the City Council to be beneficial rather than detrimental to the
residents, workers and visitors in the City; and
WHEREAS, San Rafael Municipal Code section 10.96.050 provides that the City Council
shall, by resolution, adopt reasonable regulations for the license process for the commercial
medical cannabis activities permitted within the City, and for the number of each license type to
be issued; and
WHEREAS, on January 16, 2018, the City Council adopted Resolution No. 14455
approving a Medical Cannabis Business Operator License Pilot Program and policies, practices
and procedures for administering and enforcing the program, including the number of each
license type to be issued; and
WHEREAS, the City Council desires to amend the Medical Cannabis Business Operator
License Pilot Program to include an additional category of commercial medical cannabis activity
permitted within the City, namely medical cannabis distribution; and
Medical Cannabis Business Resolution 5-21-2018 City of San Rafael
WHEREAS, for ease of reference, the City Council wishes to restate herein the entirety
of the Medical Cannabis Business Operator License Pilot Program and its and policies,
practices and procedures, as amended to the date of this Resolution;
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby amends and
restates the Medical Cannabis Business Operator License Pilot Program in its entirety as set
forth below:
SECTION 1. PURPOSE AND INTENT
It is the purpose and intent of this resolution to regulate medical cannabis businesses located
within the San Rafael city limits, in order to promote the health, safety, and general welfare of
residents and businesses within the City. This resolution governs the establishment and
operation of cannabis testing laboratories, medicinal cannabis infused product manufacturers,
medicinal cannabis delivery, and medicinal cannabis distribution.
SECTION 2. DEFINITIONS
For the purposes of this Program, the definitions below shall apply:
(a) “Applicant” means an owner applying for a City Medical Cannabis Business Operator
License.
(b) “Bureau” means the Bureau of Cannabis Control within the California Department of
Consumer Affairs.
(c) “City” means City of San Rafael.
(d) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude
or purified, extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also
means the separated resin, whether crude or purified, obtained from cannabis.
“Cannabis” does not include the mature stalks of the plant, fiber produced from the
stalks, oil or cake made from the seeds of the plant, any other compound, manufacture,
salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted
therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of
germination. For the purpose of this division, “cannabis” does not mean “industrial hemp”
as defined by Section 11018.5 of the Health and Safety Code.
(e) “Cannabis Testing Lab” means a laboratory, facility, or entity in the State that offers or
performs tests of cannabis or cannabis products as further defined in SRMC 10.96.040.
This sort of use is regulated by the State of California as a Type 8 Cannabis license.
Medical Cannabis Business Resolution 5-21-2018 City of San Rafael
(f) “Cannabis Delivery” means the commercial transfer of cannabis or cannabis products to
a customer. “Delivery” also includes the use by a retailer of any technology platform.
This sort of use is regulated by the State of California as a Type 9 Cannabis license.
(g) “Cannabis Distribution” means the procurement, sale, and transport of cannabis and
cannabis products between entities licensed pursuant to state regulations.
(h) “Cannabis Manufacturing” means producing edible or topical products that include pre-
extracted cannabis oils, to create edibles, beverages, capsules, vape cartridges tinctures
or topical. This sort of use is regulated by the State of California as a Class N (Infusions)
Cannabis license. Cannabis manufacturing may also include shared use of a
manufacturing facility by multiple businesses that perform manufacturing, (ie commercial
kitchen). Shared manufacturing is regulated by the State of California as Type S
Cannabis license.
(i) “Licensee” means any person holding a City Medical Cannabis Business Operator
License.
(j) “Medical cannabis” or “Medical cannabis product” means cannabis or a cannabis
product, intended to be sold for use pursuant to the Compassionate Use Act of 1996
(Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a
medicinal cannabis patient in California who possesses a physician’s recommendation.
(k) “Operator License” means a City Medical Cannabis Business Operator License.
(l) “Owner” means any of the following, as defined in Section 26001 of the
Business and Professions Code:
1) A person with an aggregate ownership interest of 20 percent or more in
the person applying for a license or a licensee, unless the interest is
solely a security, lien, or encumbrance.
2) The chief executive officer of a nonprofit or other entity
3) A member of the board of directors of a nonprofit
4) An individual who will be participating in the direction, control, or
management of the person applying for a license.
(m) “Person” includes any individual, firm, partnership, joint venture, association,
corporation, Limited Liability Company, estate, trust, business trust, receiver, syndicate,
or any other group or combination acting as a unit, and the plural as well as the singular.
(n) “Purchaser” means the customer who is engaged in a transaction with a licensee for
purposes of obtaining medical cannabis or medical cannabis products.
Medical Cannabis Business Resolution 5-21-2018 City of San Rafael
(o) “Qualified patient” means person who is entitled to the protections of Section 11362.5,
but does not have an identification card issued, as defined by 11362.7 of the Health and
Safety Code.
(p) “Sell”, “sale,” and “to sell” include any transaction whereby, for any consideration, title to
cannabis or cannabis products is transferred from one person to another, and includes
the delivery of cannabis or cannabis products pursuant to an order placed for the
purchase of the same and soliciting or receiving an order for the same.
SECTION 3. LICENSING PROCESS
(a) Any person seeking to sell and or distribute, deliver, manufacture, or provide laboratory
testing services located in San Rafael city limits must first obtain a Medical Cannabis
Business (MCB) Operator License prior to operating.
(b) The Medical Cannabis Business Operator Licensing Program will make the following
limited licenses available:
• Cannabis Testing Labs (State License Type 8): 4 licenses
• Medical Cannabis-Infused Products Manufacturing (State License Type N): 8
licenses
• Medical Cannabis Delivery (State License Type 9): 4 licenses
• Medical Cannabis Distribution (State License Type 11): 2 licenses
SECTION 4. REVIEW AND ACTION ON APPLICATIONS
(a) The initial Medical Cannabis Business Operator License Application Review Committee
(“Committee”) includes (1) Medical Cannabis Subcommittee Councilmember, Police
Chief, Fire Chief, Community Development Director and Economic Development
Director, and/or their designees, to review and rank applications.
(b) The Medical Cannabis Business Operator License application ranking process shall
consist of the following areas of evaluation:
• Business Executive Summary (20 POINTS -MAXIMUM)
• Safety and Security Plan (20 POINTS - MAXIMUM)
• Patient Benefits & Education (20 POINTS - MAXIMUM)
• Local Enterprise Preference (10 POINTS - MAXIMUM)
• Qualifications of Principals (20 POINTS - MAXIMUM)
• Community Benefits (10 POINTS - MAXIMUM)
An application is required to receive a total of 85 points to move forward. The Committee
shall rank all the applications and shall issue a written decision setting forth the ranking
for each application, the ranking of each application in each of the ranking categories,
and an explanation of the facts and reasoning supporting the rankings. The Committee
shall serve a copy of its written decision on each applicant by email.
Medical Cannabis Business Resolution 5-21-2018 City of San Rafael
An applicant who has received a ranking of less than 85 points may appeal that decision
to the City Manager or his or her designee, by filing a written appeal with the City
Manager’s office within five (5) business days after the date of service of the written
ranking decision on the applicant. The appeal shall not be accepted for filing unless
accompanied by an appeal fee in an amount determined by resolution of the City
Council. In determining the appeal, the City Manager/designee will review the
Committee’s written decision on the appellant’s application and the application itself. In
addition, within five (5) business days after the filing of the appeal, the City
Manager/designee shall set a time for a hearing, not to exceed two hours in length, at
which the appellant may appear to review the Committee’s decision and to present
evidence or argument why the Committee’s ranking should be modified. The hearing
shall occur no later than thirty (30) days following the filing of the appeal unless another
time is agreed to by the appellant. The hearing may be recorded by audiotape or written
minutes.
Within ten (10) business days after completion of the hearing on the appeal, the City
Manager/designee shall issue a written decision on the appeal shall either confirming or
modifying the ranking given by the Committee. The decision shall be in served upon the
appellant by email, or regular mail through the United States Post Office. The City
Manager’s decision will be final, with no appeal to the City Council, and shall be subject
to judicial review according to the provisions and time limits set forth in Code of Civil
Procedure Section 1094.6; however the filing of any such action shall not stay any
lottery or subsequent award of operator licenses as provided herein.
After the appeal period has run without the filing of any appeals, or after the final
decision by the City Manager on any and all appeals, if the Committee determines that
the number of pre-screened and ranked applicants exceeds 100% of the maximum
number of licenses available, then a lottery will be conducted after the ranking round.
(c) Operator Selection. W ithin 45 days of notification of written and e-mail notification,
operators will have the ability to look for sites within permitted zoning districts and return
with identified site to apply for zoning clearance, business license tax and operator
license issuance.
(d) Zoning Clearance, Business License Tax, and Operator permit issued. Once the
operator has found a business location, and has an executed lease agreement, or
signed application by the property owner, planning staff will confirm zoning clearance.
The applicant can then proceed with filing for a business license tax certificate, and the
operator license will be issued.
SECTION 5. FEES
The Medical Cannabis Business Operator License application and renewal fees are based on a
cost-recovery model for application intake, processing, and compliance monitoring.
Medical Cannabis Business Resolution 5-21-2018 City of San Rafael
Process Steps
Staff Coordination
Per Applicant
Cost
Application Intake
Econ. Dev Coordinator
Review Time: 1-2
hours
$200
Criminal Background
Check
Police
Review Time: 1
hour
$100
Application Review and
Ranking
Econ. Development
Director, Police Chief, Fire
Chief, Community
Development Director, (1)
MC Subcommittee Council
member
Review Time: 2-3
hours
$1,500
Operator Notification
Econ. Development
Coordinator/Director
Review Time: 1
hour
$100
Zoning Clearance,
Business Tax
Certificate, Operator
License Issuance
Senior Planner, Revenue
Manager, Economic
Development Director
Review Time: 2-3
hours
$300
Compliance Inspections
Senior Code Enforcement
Officer
Review Time: 3-4
hours
$600
Annual Gross Receipts
Audits
Contract with Outside
Agency
Review Time 3-4
hours
$800
SECTION 6. OPERATING REQUIREMENTS
All Medical Cannabis Business Operator Licensees shall comply with all of the following
operating requirements:
(a) The licensee shall meet all operating requirements of the Medicinal and Adult-use
Cannabis Regulation and Safety Act, and requirements set forth by the Bureau and the
California Department of Public Health.
(b) The licensee shall obtain and maintain the State of California license for the equivalent
State cannabis license type. Obtain and maintain all other required State and local
licensees, permits, or approvals as required.
(c) Odor Control. No cannabis odors shall be detectable outside the commercial facility.
(d) Advertising and Marketing Restrictions. All signage shall meet the City zoning code’s
sign requirements and shall not advertise any activity related to cannabis.
Medical Cannabis Business Resolution 5-21-2018 City of San Rafael
(e) Operating Hours. A licensee may operate between the hours of:
1) Medical Cannabis Delivery: 9AM to 9PM up to seven days a week,
unless modified as condition of license to address site specific
conditions.
2) Medical Cannabis Testing Labs: 7AM – 6PM up to seven days a week,
unless modified as condition of license to address site specific
conditions.
3) Medical Cannabis Infused Product Manufacturing: 7 AM – 6 PM,
evenings available as a condition of the license; up to seven days a
week, unless modified as condition of license to address site specific
conditions.
4) Medical Cannabis Distribution: 7 AM – 6 PM, up to seven days a
week, unless modified as condition of license to address site specific
conditions.
(f) Contact Person. A licensee shall provide the City with the name and phone number of
an on-site community relations staff person or designee to whom one can provide notice
if there are operating concerns. The licensee shall make a good faith effort to encourage
residents to call this person to try to solve operating concerns before any calls or
complaints are made to the City.
SECTION 7. TERMS OF LICENSE
(a) Licenses issued under this resolution shall be valid for 12 months from the date of
issuance.
SECTION 8. LICENSE SUPENSION, MODIFICATION AND REVOCATION
(a) Any license issued under the terms of this resolution may be suspended, modified, or
revoked by the Economic Development Director, or his or her designee, for cause
including but not limited to violation of any the requirements or provisions of this
resolution, or conflicts with State law.
(b) Written Notice Required. The Economic Development Director, or designee, before
revoking or suspending any Medical Cannabis Business operator license shall serve
the licensee with written notice of revocation or suspension, provided in the manner set
forth in Section 1.08.060 of the San Rafael Municipal Code, of the alleged grounds for
revocation or suspension and the date for a hearing , to be held no less than ten (10)
days and no more than sixty (60) days after the service of the written notice , to
consider whether the Medical Cannabis Business operator license shall be revoked or
suspended.
(c) Hearing. The Economic Development Director, or designee, shall appoint a hearing
officer to hear and consider all evidence at the hearing. The hearing may, after being
commenced within the time specified pursuant to subsection (b) of this section, be
continued for good cause by the hearing officer from time-to-time. The hearing officer
may require such legal briefing as may be required to address any issues raised at the
hearing.
Medical Cannabis Business Resolution 5-21-2018 City of San Rafael
(d) Notice of Decision; Judicial Review. Within a reasonable time, but not more than thirty
(30) days following the conclusion of the hearing, the hearing officer shall issue a
written decision as to whether the Medical Cannabis Business Operator License shall
be revoked or suspended, supported by factual findings and determinations referenced
by supporting evidence. The written decision shall be served on the operator licensee
as provided in Code of Civil Procedure Section 1094.6, with a copy submitted to the
city clerk and the city attorney. The written decision of the hearing officer shall be final
and shall be subject to judicial review according to the provisions and time limits set
forth in Code of Civil Procedure Section 1094.6 .
SECTION 9. TRANSFER OF LICENSE
(a) A licensee shall not operate under the authority of a Medical Cannabis Business
Operator License at any location other than the address stated in the application for the
license.
(b) The Medical Cannabis Business Operator License is nontransferable.
SECTION 10. ENFORCEMENT
It is unlawful for any person to violate any provision or fail to comply with any of the
requirements of this resolution, and any such violation shall be enforceable in accordance with
the provisions of Chapters 1.40, 1.42, 1.44, and 1.46 of the San Rafael Municipal Code.
SECTION 11. SIX-MONTH PROGRESS REPORT AND REVIEW
Six months following the adoption of the resolution, the Economic Development Director shall
prepare a progress report on the Medical Cannabis Business Operator License Pilot Program
for Council review.
BE IT FURTHER RESOLVED that any amendments to the Medical Cannabis Business
Operator License Program policies, practices and procedures as deemed necessary from time-
to-time shall require an amendment to this resolution by City Council action.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of said City on the 21st day of May 2018, by the following vote, to wit:
AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmembers: None
____________________________
Lindsay Lara, City Clerk