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MEETING OF THE COMMISSION

City Hall Thursday, January 18, 2018 2180 Milvia Street 2:00 PM Redwood Room (Sixth Floor)

AGENDA

I. Call to Order A. Roll Call and Ex Parte Communication Disclosures B. Changes to Order of Agenda

II. Public Comment

III. Approval of Minutes A. November 16, 2017 Draft Action Minutes

IV. Planning Staff Report

V. Chairperson’s Report

VI. Subcommittee Report

VII. Discussion and Action Items A. Election of chairperson B. Review staff proposed changes to cannabis ordinance language and vote on Commission recommendation to Council. Attachments: 1. Staff report a. 7-25-17 Council referral b. Matrix of existing and proposed ordinances/regulations c. Draft new BMC chapter 12.21 (General Regulations) d. Draft new BMC Chapter 12.22 (Operating Standards) e. Draft new BMC Chapter 20.XX (Cannabis Advertising) f. Existing BMC Chapters 12.23, 12.25 and 12.27 showing new locations for existing ordinance language g. Draft changes to Zoning Ordinance: new Chapter 23C.25 (Cannabis Businesses), modified use tables in C- and M-Districts and new Definition (23F.040) h. Existing Zoning Ordinance Sections 23E.16.070, 23E.72.040 showing new locations for existing ordinance language C. Review staff report regarding location selection process for Apothecarium and vote on Commission representative for January 23, 2018 Council meeting. (NOTE: Staff report and resolution to be distributed at the meeting. Both will be available on the Council’s website by 1-12-18: https://www.cityofberkeley.info/Clerk/City_Council/City_Council__Agenda_Index.aspx)

VIII. Information Items (In compliance with the Brown Act, no action may be taken on these

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items; however, they may be discussed and placed on a subsequent agenda for action): A. 2018 Final MCC meeting dates B. 11-21-17 Commission communication to Council re. temporary adult use licenses and draft delivery-only dispensaries ordinance language.

IX. Correspondence A. Courtney Allen-Gentry – e-mail re. equity B. Ken Berland – e-mail re. Berkeley Cash

X. Adjournment

Berkeley Cannabis Commission website: http://www.cityofberkeley.info/medicalcannabis/ Cannabis Commission Secretary: Elizabeth Greene, 1947 Center Street, 2nd Floor, Berkeley CA 94704 Phone: 510-981-7484, Email: [email protected]

Communications to Berkeley boards, commissions, or committees are public records, and will become part of the City’s electronic records, which are accessible through the City’s website. Please note: e-mail addresses, names, addresses, and other contact information are not required, but if included in any communication to a City board, commission, or committee, will become part of the public record. If you do not want your e-mail address or any other contact information to be made public, do not include that information in your communication – you may deliver communications via U.S. Postal Service, or in person, to the Commission Secretary. Please contact the Commission Secretary for further information.

Any writings or documents provided to a majority of the Commission regarding any item on this agenda will be made available for public inspection at the Department of Planning and Development, Zoning Counter, at the Permit Service Center, 1947 Center Street, 3rd Floor, Berkeley, and at the Reference Desk, of the Main Library, 2090 Kittredge Street, Berkeley, , during regular business hours. Please contact the Commission Secretary for further information.

This meeting is being held in a wheelchair accessible location. To request a disability-related accommodation(s) to participate in the meeting, including auxiliary aids or services, please contact the Disability Services specialist at 981-6418 (V) or 981-6347 (TDD) at least three business days before the meeting date. Please refrain from wearing scented products to this meeting.

2 of 113 1 of 3 Draft Minutes From 11-16-17 Meeting CANNABIS COMMISSION January 18th, 2018

MEETING OF THE COMMISSION

City Hall Thursday, November 16, 2017 2180 Milvia Street 2:00 PM Redwood Room (Sixth Floor)

DRAFT ACTION MINUTES

I. Call to Order – 2:10 pm

A. Roll Call and Ex Parte Communication Disclosures Commissioners present: Brewster, Cable, Ferguson-Riffe, Jones, Lampach, Pappas, Rice.

Absent: Carlisle (unexcused), Cooper (unexcused).

Staff Present: Secretary Elizabeth Greene, Mark Sproat, Eryn Blackwelder.

Ex Parte Communications: None.

B. Changes to Order of Agenda Approval of Minutes moved to end of meeting.

II. Public Comment No Public Comment.

III. Approval of October 5, 2017 Minutes Motion/second to approve the October 16, 2017 minutes with the following amendment: Reference to Council action regarding temporary licenses applies to rom “cannabis businesses” to “cannabis dispensaries” (Lampach/Pappas). The motion carried 7-0-0-2. (Ayes: Brewster, Cable, Ferguson-Riffe, Jones, Lampach, Pappas, Rice. Noes: None. Abstain: None. Absent: Carlisle, Cooper.)

IV. Planning Staff Report  Summary of October 10th Council worksession. Primary discussion points: residential collectives, grandfathering existing businesses and equity.  Recent Council actions: Directed staff to develop temporary adult use license for existing dispensaries. Council may expand to other existing cannabis businesses at the November 28th meeting (see late items). Also directed staff to develop a selection process for a new location for the Apothecarium.  Planning Department Open House December 6th.  Responses to Council cultivation referral included as an information item.

V. Chairperson’s Report  At the 10-10-17 work session, the Council seemed sympathetic to the concerns of existing cannabis businesses.  Vice Chair Pappas reported that Dan Rush was sentenced.

3 of 113 2 of 3 Draft Minutes From 11-16-17 Meeting CANNABIS COMMISSION January 18th, 2018

VI. Subcommittee Report There was no subcommittee meeting.

VII. Discussion and Action Items

A. Discuss and identify topics that could be included in new cannabis ordinance. Public Comment: Two public comments regarding allowing personal outdoor grows, allow residential uses, and allowing multiple Delivery-only businesses on one premises.

The Cannabis Commission (CC) discussed the following topics: creating education and arts programs; no limit on licenses; delivery-only, selection process; cultivation; temporary licenses for business types not currently permitted (cultivators, delivery- only).

Public Comment: Two public comments. The comments mentioned that not having limits on number of permits and not postponing delivery-only regulations will be the most beneficial for the community. In addition, it is important to allow as much access to businesses but to not allow monopolies.

Motion/second to support Councilmember’s consent item (see late items) and urge the Council to approve the draft Delivery-only Dispensary language (Pappas/Rice) The motion carried 7-0-0-2. (Ayes: Brewster, Cable, Ferguson-Riffe, Jones, Lampach, Pappas, Rice. Noes: None. Abstain: None. Absent: Carlisle, Cooper.)

Commissioner Jones drafted a letter for the Council to support the motion and read it to the Commission. She will send a copy to staff to send to Council and include in the Commission’s January packet.

B. Adopt calendar for 2018 CC meetings. Public Comment: No public comment.

Motion/second to approve the proposed calendar with the following dates for July – November meetings: 7/12/18, 9/13/18, 10/4/18 and 11/1/18 (Lampach/Jones). The motion carried 6-0-1-2 (Ayes: Brewster, Cable, Ferguson-Riffe, Jones, Lampach, Pappas. Nones: None. Abstain: Rice. Absent: Carlisle, Cooper.

C. Discuss and possibly vote on a cultivation licensing and selection process. Public Comment: Three public comments regarding status of Council referral about nurseries, concerns about equity process and requiring large businesses to incubate equity businesses.

The Commission discussed options for a selection process, including Use Permits for large and small-sized cultivation facilities, lowering or waiving fees for small businesses and/or equity businesses, or creating city incentives such as small business loans, alternative banking options and outreach to help businesses navigate bureaucracy. Also discussed who should be considered an equity candidate: small businesses, low-income, persons from communities impacted by the War on Drugs, individuals incarcerated for cannabis offenses. Nurseries haven’t

4 of 113 3 of 3 Draft Minutes From 11-16-17 Meeting CANNABIS COMMISSION January 18th, 2018

been considered – some jurisdictions (Humboldt County) have hybrid retail/wholesale option. Vice Chair Pappas made a motion to require a Use Permit for cultivations businesses 10,000 sf or greater. Motion not seconded; motion failed.

D. Ideas for next meeting. Public Comment: One public comment, mentioning distribution, nurseries, buffers, delivery-only dispensaries and temporary licenses.

Commissioners mentioned separating entity from location in selection processes, and giving temporary licenses to all existing businesses.

X. Adjournment Adjourned at 4:15. Five late items were distributed at the meeting: Commissioners in attendance: 7 of 9 Members of the public in attendance: Approximately 13 Public comments: 5 Length of meeting: 2 hours and 5 minutes

APPROVED: ______Elizabeth Greene Medical Cannabis Commission Secretary

5 of 113 TO: Cannabis Commission

FROM: Elizabeth Greene, Secretary

SUBJECT: Comprehensive Cannabis ordinances

DATE: January 18, 2018

City staff from the Planning, Environmental Health, Public Health, Finance, Police, Fire, and Code Enforcement departments, as well as the City Attorney’s office, have drafted a proposed set of new cannabis regulations. The proposal consists of draft cannabis ordinances and a selection process for certain license types. The purpose of these regulations is to: 1. Respond to a Council referral (Attachment A); 2. Develop regulations for new license types permitted by the State so businesses can be approved/selected to operate in Berkeley; 3. Ensure that existing and proposed ordinances are consistent with State regulations; and 4. Simplify and clarify the ordinances.

This memo and its attachments guide the Commission through the ordinances and the approval process. It outlines: • the focus of the proposed changes to the Berkeley Municipal Code (BMC) and the Zoning Ordinance (ZO), • the significant changes and new language, • the new ordinance chapters being created, and • the next steps in approving the ordinances and selection. Information about the selection process will be included with the February 1, 2018 packet.

Focus of changes and new language Changes to the BMC and ZO fall into two categories: General clean-up; and Revisions to reflect State regulations or new cannabis activities.

The clean-up language will cover such issues as changes to terms (i.e., Medical to Medicinal, Member to Customer), the addition of new definitions, and the removal of regulations that duplicate State regulations (i.e. background checks). These changes are not expected to change the current direction of the Berkeley ordinances.

The other revisions are more specific to cannabis uses. The changes in this category create regulations to match State license types that currently do not exist in Berkeley Ordinances, and may also change regulations for existing license types. The Existing and Proposed Regulations matrix (Attachment B) identifies these changes.

6 of 113 Existing and Proposed Regulations Matrix The most straightforward way to learn how these changes would affect the way cannabis businesses could operate in Berkeley is to review the Existing and Proposed Regulations matrix. This matrix outlines existing regulations by business type, and shows how they would change with the new ordinances. Issues that do not involve a specific business type (billboards, lounges, etc.) are included at the end of the matrix. The code sections of the existing and proposed language are called out in the matrix; copies of the existing and proposed ordinances are also included with this memo.

Documents to be revised or created The BMC and the ZO will be reorganized in order to make the information easier to find and less repetitive between chapters. BMC: Three existing BMC chapters will be combined into two new chapters:

Topic Chapter to be New Chapter Deleted General Regulations 12.23 12.21 (includes Chapter (Definitions, 12.23 plus issues from Operating Standards) 12.25 and 12.27 – security, records, etc. – that apply to all license types) Cultivation 12.25 12.22 Dispensaries/ 12.27 12.22 Collectives Other license types N/A 12.22

Of the noted chapters, 12.25 and 12.27 have extensive redundancies. These redundancies are being removed and the chapters consolidated into Chapter 12.22. Chapter 12.23, along with portions of 12.25 and 12.27 will become Chapter 12.21. Existing Chapter 12.26 does not change. The new chapters are included as Attachments C and D. One additional BMC chapter, 20.XX is proposed for regulating cannabis advertising (see Attachment E).

Versions of the deleted chapters with references to the new location of existing information are also attached (Attachment F).

ZO: The Zoning Ordinance currently includes Cannabis use regulations in two chapters: 23E.16 and 23E.72 (M District). This information will be consolidated into a new Chapter: “Cannabis Uses” (23C.25). This chapter, along with minor changes to use tables in Commercial and Manufacturing districts and a new Definition (Cannabis Uses), are included in Attachment G. The original language in Chapters 23E.16 and 23E.72 is included in Attachment H.

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Next Steps in Approval Process Commission review: Four commissions will hold public meetings to review the proposals and provide an opportunity for public comment: Cannabis Commission (CC), Planning Commission (PC), Housing Advisory Commission (HAC) and Community Health Commission (CHC).

The HAC and the CHC will review specific components of the proposals at their respective February meetings (February 1, 2018 and February 22, 2018) and may provide feedback to the Council. The CC and PC will provide recommendations to the Council on all or portions of the cannabis proposals:

Cannabis Commission: Recommendations on the draft BMC, ZO and selection process. Anticipated Timeline: January 18th and February 1st meetings.

Planning Commission: Recommendations on the draft ZO. Anticipated timeline: February 7th and February 21st meetings.

All four commissions will hold public meetings to review the proposals and will provide an opportunity for public comment.

Finalize comments and draft report(s): As the commissions review the proposals, staff will draft the staff reports and any necessary commission reports for Council. Included in these reports will be discussions of the staffing impacts and fees necessary to enact the proposals and recommendations. Modifications may be made to the proposals based on commission discussion and public comment.

Council consideration: Based on the commission schedule above, the Council could consider the draft proposals, recommendations and other feedback at a meeting between April 24th and May 15th.

Attachments: A. 7-25-17 Council referral (without attachments) B. Matrix of existing and proposed ordinances/regulations C. Draft BMC Chapter 12.21 D. Draft BMC Chapter 12.22 E. Draft BMC Chapter 20.XX (Advertising) F. Existing BMC chapters related to cannabis with changes G. Draft ZO changes H. Existing ZO sections with changes

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Office of the Mayor ACTION CALENDAR July 25, 2017 To: Honorable Members of the City Council

From: Mayor Jesse Arreguín

Subject: Commercial Cannabis Regulations and Licensing

RECOMMENDATION: Refer to the City Manager and Cannabis Commission the proposed local ordinances to establish a licensing process for Commercial Cannabis operations, as permitted under Proposition 64, Adult Use of Marijuana Act.

The Council requests that the City Manager and Cannabis Commission report to the City Council on its recommendations on regulations and licensing for commercial cannabis businesses before the end of 2017.

BACKGROUND: Existing Berkeley law contains no provisions for any sort of non-medical cannabis business structure. Proposition 64, the Adult Use of Marijuana Act, which passed statewide with 57% of the vote, and in Berkeley with 83.5%, permits local governments to establishing licensing in advance of state regulations for recreational cannabis. The proposed ordinances, based in large part on current Berkeley medical rules, would:

 Provide a structure for the licensure and regulation of Commercial Cannabis Organizations consistent with California Health and Safety Code section 11362.5 (Compassionate Use Act), California Health and Safety Code sections 11362.7- 11362.83 (Medical Marijuana Program), the Medical Cannabis Regulation and Safety Act, and the Adult Use of Marijuana Act (Proposition 64, or AUMA) to protect public health, safety, and welfare.  Empower the City Manager to determine if the Commercial Cannabis Organization is in compliance with Berkeley rules.  Define all terms as set forth in the Control, Regulate and Tax Adult Use of Marijuana Act (“AUMA”) as may be supplemented by rules or regulations issued by the Bureau of Marijuana Control within the Department of Consumer Affairs, the Department of Food and Agriculture or the Department of Health.  Not reduce the rights of qualified patients and primary caregivers, or individuals over 21 as authorized by AUMA, to access and personal cultivation.  Require City Council establish procedures for the issuance of a local license in those types similar to the types permitted under State law.  Permit, if permitted by state law, a dispensary to operate both a Medical and Nonmedical Commercial Cannabis Organization at a single location.

Martin Luther King Jr. Civic Center Building ● 2180 Milvia Street, 5th Floor, Berkeley, CA 94704 ● Tel: (510) 981-7100 Fax: (510) 981-7199 ● TDD: (510) 981-6903 ● E-Mail: [email protected] ● Web: www.jessearreguin.com

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Page 2 of 53

Commercial Cannabis Regulations and Licensing ACTION CALENDAR July 25, 2017

 Require that a Principal of any Commercial Dispensary may not be a Principal for any other Dispensary in Berkeley except that any Principal may be a Principal for any Dispensary that is licensed to operate both a Medical and Nonmedical Commercial Cannabis Organization at a single location.  Permit medical dispensaries authorized as of January 1, 2017 and in substantial compliance with Chapters 12.26 and 12.27 and Title 23 as reasonably determined by the City Manager to qualify for a Commercial Cannabis Dispensary license.  Prohibit the City from issuing new dispensary licenses until January 1, 2020, to ascertain demand.  Require track and trace of cannabis by batch and impose operating standards in compliance with BMC and AUMA.  Require neighborhood compatibility in a manner similar to existing Berkeley requirements.  Prohibit smoking on site and within 50 feet of a Dispensary but, to the extent permitted by State law, permit the ingestion, smoking or vaporizing on site if restricted to persons over 21, not visible from any other public place, and so long as alcohol and tobacco sales or consumption are not permitted on site.  Require signage similar to that required for medical dispensaries.  Require Product Safety and Quality Assurance measures similar to and no less stringent than as required for medical dispensaries.  Permit the City Council to establish by resolution fees that shall be charged to implement the Chapter.  Prohibit the City from responding to a federal law enforcement information request or providing information about a person who has applied for or received a license to engage in commercial cannabis activity pursuant to BMC, MCRSA, and AUMA.

FINANCIAL IMPLICATIONS: Staff time. Taxes assessed on new commercial cannabis operations will result in additional General Fund revenues to support city services.

CONTACT PERSON: Mayor Jesse Arreguín 510-981-7100

Attachments: 1. Proposed Amendments to the Berkeley Municipal Code permitting Commercial Cannabis businesses

10 of 113 1 of 7 ITEM VII.B.2 CANNABIS COMMISSION January 18th, 2018

Existing and Proposed Cannabis Regulations

Topic Subtopic Existing Regs (Ord) Proposed Regs (Ord) Retail: Medicinal Location In any C-prefixed district (ZO Same (ZO 23C.25.010.F) Use 23E.16.070.A.1) Quota limit 6 (ZO 23E.16.070.A.1) Same (ZO 23C.25.010.F) Buffer 600’ away from other Same (ZO 23C.25.010.B) cannabis retailers and schools with K-12 students (ZO 23E.16.070.A.2) Security Requirements for lighting, Same, with addition that any licensed, unarmed security State requirements that are guards, camera coverage, stricter will apply (BMC alarm system, storage of 12.21.040.G) product and cash, bars on openings if no guards after hours. (BMC 12.27.050.E) On-site Allowed for non-combustible Language clarified to consumption products (vaping, edibles, specifically allow non- topicals, etc.) (BMC combustible consumption at 12.27.050.G) Retailers which allow customer visits. Removed language about smoking of cannabis within 50 feet of a Retailer (BMC 12.21.040.I and 12.22.040.G) Selection process MBAP (Resolution 66,711- TBD, see Selection Process N.S.) section (under Other topic) Change in Cannabis Commission review. No recommendation yet location - relocation Change in AUP if legal, non-conforming No recommendation yet location - dispensary; otherwise expansion assumed same as non- cannabis businesses Changes in No regulations No recommendation yet ownership Delivery Delivery permitted per Same delivery regulations as regulations definition, but no regulations for delivery-only dispensaries (BMC 12.23.020.K.2) (BMC 12.22.040.H) Retail: Adult Use Location N/A All C-prefixed districts (ZO (No current regs. 23C.25.010.G) Proposed regs Quota limit N/A Limit of 12, (ZO 23C.25.010.G) same as medicinal, except as shown)

11 of 113 2 of 7 ITEM VII.B.2 CANNABIS COMMISSION January 18th, 2018

Existing and Proposed Cannabis Regulations

Topic Subtopic Existing Regs (Ord) Proposed Regs (Ord) Retail: Delivery- Location All C-prefixed districts except All C-prefixed districts and in only C-N (recommended by M-prefixed districts as an (“Existing regs” Planning Comm) ancillary use to another are those cannabis business proposed by (recommended by staff) (ZO Cann Comm and 23C.25.010.H.2) Planning Comm) Quota limit None (recommended by 10 (recommended by staff) Cannabis Comm) (ZO 23C.25.010.H.1) Buffer Same as medicinal retail (ZO Same (ZO 23C.25.010.B) 23E.16.070.A.2) Selection process No recommendation Same selection process as regarding discretionary other Retailers review (Planning Commission) Delivery-specific Vehicle and driver Same, but deliveries can only requirements requirements, insurance, be to a residence. Regulations signage, deliveries only to will apply to any Retailer residence or business of making deliveries to patients. Member. Only applied to (BMC 12.22.040.H) delivery-only dispensaries (recommended by Cannabis Commission)

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Existing and Proposed Cannabis Regulations

Topic Subtopic Existing regs (ord) Proposed regs (ord) Cultivation Location M District only (ZO Same (ZO 23C.25.020.A) 23E.72.040.A) Size Maximum 22,000 sf (area of Same maximum size, but cultivation and associated measured by canopy area (ZO uses) (ZO 23E.72.040.A.3) 23C.25.020.A.3) Quota limit 180,000 sf cap on all 180,000 sf cap still applies. commercial cultivation in Numeric limit of 6 for city. (No decision on businesses between 10,001 sf numeric quota for and 22,000 sf. No numeric businesses) (ZO limit for businesses under 23E.72.040.A.4) 10,000 sf, but 180,000 cap applies (ZO 23C.25.020.A.4, 5 and 6) Buffer 600’ away from schools with 300’ away from schools with K-12 students (ZO K-12 students (ZO 23E.72.040.B) 23C.25.020.C) Security Requirements for lighting, Same, with addition that any licensed, unarmed security State requirements that are guards, camera coverage, stricter will apply (BMC alarm system, storage of 12.21.040.G) product and cash, bars on openings if no guards after hours. (BMC 12.25.050.E) On-site Not permitted, except for Same, except remove BMC consumption employees with medical 12.25.050.G.4 (BMC needs (BMC 12.25.050.G.1 12.21.040.I and 12.22.040.G) and 4) Selection process Yes, but no decision on type Yes Change in N/A No recommendation yet location - relocation Change in N/A No recommendation yet location - expansion Changes in N/A No recommendation yet ownership Nurseries Not mentioned Businesses applying for a State Nursery permit must obtain the specific permits required for cultivation use at the site. (BMC 12.21.020 (definition)

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Existing and Proposed Cannabis Regulations

Topic Subtopic Existing regs (ord) Proposed regs (ord) Manufacturing Location Same as non-cannabis Light Same (ZO 23C.25.030) Manufacturing (ZO 23E.16.070.C) Quota limit None required (not Same (not mentioned) mentioned) Buffer None required (not 300’ away from schools with mentioned) K-12 students (ZO 23C.25.020.B) Security None required (not Same as dispensaries, mentioned) cultivators and distributors for security, lighting, alarm system, storage of product and cash. No local requirement for guards and cameras. (BMC 12.21.040.G) On-site Not mentioned Remove BMC 12.25.050.G.4 consumption (BMC 12.21.040.I and 12.22.040.G) Selection process None (not mentioned) Same (not mentioned) Change in Same as non-cannabis Light Same (not mentioned) location - Manufacturing relocation Change in Same as non-cannabis Light Same (not mentioned) location - Manufacturing expansion Changes in Same as non-cannabis Light Same (not mentioned) ownership Manufacturing Testing (same as Location, Same as non-cannabis Same (ZO 23C.25.030) Manufacturing, changing testing (23E.16.070.C) except as shown) location, expansion R&D (same as Location, Same as non-cannabis R&D Same (State license type = Manufacturing, changing (23E.16.070.C) Manufacturing) (ZO except as shown) location, 23C.25.030) expansion Distributor (same Security N/A Same as Retailer and as Cultivator (BMC 12.21.040.G) Manufacturing, Location, N/A Same as non-cannabis except as shown) changing location Wholesale Use (ZO expansion 23C.25.030) Microbusiness Not called out in ordinance as a separate use. Businesses applying for a State microbusiness permit must obtain the specific permits required for the individual uses at the site. Any use that is included at a microbusiness site must meet the same requirements (location, buffer, quota, selection, security, etc) as if the use was a sole operator. (BMC 12.21.020 (definition))

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Existing and Proposed Cannabis Regulations

Topic Subtopic Existing regs (ord) Proposed regs (ord) General for all New definitions N/A Added new definitions to businesses address new State regulations (BMC 12.21.020) Revised Revised definitions to address definitions new State regulations (BMC 12.21.020) Patient Any person associated with a Remove references to requirements and medical cannabis business membership requirements, physician must be a Qualified Patient including BMC 12.23.030.B recommendations or Primary Caregiver and and D, and 12.27.050.D (BMC members of the collective 12.21.040) (State law, BMC 12.23.030.B and D, 12.26.040.B, 12.26.070.A and B, 12.27.050.D) Ownership/profit Must operate as a collective Removed both requirements status and not-for-profit (State law, BMC 12.25.090.B.1, 12.27.090.B.1) Background Businesses cannot be Removed requirement – checks operated by or hire people defer to State. with convictions for specific crimes (BMC 12.23.030.F) Odor control Not mentioned Odor control plan language added (BMC 12.21.040.E) Non-diversion Only for Dispensaries and Expanded to all Cannabis plan Cultivators (BMC Businesses (BMC 12.21.040.F) 12.25.050.B, 12.27.050.B) Neighborhood Only for Dispensaries and Expanded to all Cannabis compatibility Cultivators (BMC Businesses, with no 12.25.050.F, 12.27.050.F) requirements for guards at Manufacturers and Testing Labs. Retailers shall provide Police and nearby residents contact information for the business. Remove hours of operations for Dispensaries. (BMC 12.21.040.H) Security Only for Dispensaries and Expanded to all Cannabis Cultivators (BMC Businesses, with no 12.25.050.E, 12.27.050.E) requirements for guards and bars on windows at Manufacturers and Testing Labs (BMC 12.21.040.G)

15 of 113 6 of 7 ITEM VII.B.2 CANNABIS COMMISSION January 18th, 2018

Existing and Proposed Cannabis Regulations

Topic Subtopic Existing regs (ord) Proposed regs (ord) Sale/consumption Not permitted at Not permitted at any of tobacco and Dispensaries and Cultivators Cannabis Business (BMC alcohol (BMC 12.27.050.G and 12.21.040.I) 12.25.050.G) Consumption of Only for Dispensaries and Add language about cannabis by Cultivators (BMC consumption being patients 12.25.050.G, 12.27.050.G) prohibited in public places. Remove language about smoking prohibition within 50’ of Dispensaries (BMC 12.21.040.I, 12.22.040.G) Accessibility All businesses must be Same; add language that accessible; three original expansions of existing businesses not required to businesses must meet ADA comply as long as at original requirements (BMC address 12.22.040.E) Exterior signage No language about Exterior Allow for customer-serving signage. Signage discouraged retail per other retail for cultivators and requirements; limit to dispensaries (BMC directional signs for non- 12.25.060, 12.27.060) customer businesses (BMC 12.21.040.J, 12.22.040.F) Records/reporting Dispensaries and cultivators Expanded to all cannabis requirements must report financial records businesses. Removed to verify taxes, not-for-profit reference to not-for-profit status and 2% to low-income status, and reporting of distribution, and convictions convictions. (BMC 12.21.050) (BMC 12.25.090, 12.27.090) Ranking and Council may establish a Expanded to all Retailers and Allocation selection process for Major Cultivators. Minor dispensaries and cultivators changes to language. (BMC (BMC 12.25.100, 12.27.100) 12.22.020) Confidentiality of Only for Cultivators and Same, but remove language information Dispensaries (BMC regarding Medical 12.25.110. 12.27.110 ) membership records (BMC 12.21.070) Authority of City BMC 12.23.040, 12.25.120, Added subsection to allow Manager 12.27.150 City Manager to require businesses to obtain operating permits from Fire, Toxics and other divisions as necessary to ensure public safety. (BMC 12.21.080, 12.22.160) Abatement of BMC 12.23.050, 12.25.130 Same (BMC 12.21.090) violations

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Existing and Proposed Cannabis Regulations

Topic Subtopic Existing regs (ord) Proposed regs (ord) Fees BMC 12.25.140, 12.27.140 Same (BMC 12.21.100 12.22.150) Severability BMC 12.23.060, 12.25.150, Same (BMC 12.21.110, 12.27.160 12.22.170)

Other Use tables N/A Cannabis uses shown in use tables (Non-Residential District Uses Tables in the ZO) Growing in Patients can grow up to 10 Not mentioned, allowed per backyards plants in backyard – more if State law on rooftop or balcony not visible from other Billboards Not mentioned Prohibited Lounges Not mentioned Staff recommends considering the use a Retail (storefront) use, which would need a Retailer license (BMC 12.22.040.G) Temporary events Not mentioned Prohibited (BMC 12.22.100) Residential Allowed (BMC 12.27.120- Staff recommends to collectives 130) continue allowing Residential collectives but with additional regulations per the State (BMC 12.22.120-140) Taxes Medical = 2.5% No recommendation yet Non-medical = 10% Selection Process No recommendation yet (equity, community benefit requirements, etc.) Not-for-profit All dispensaries and Only collectives must cultivators must operate operate on a not-for-profit on a not for profit basis. basis. (12.22.130.D) (12.25.090.B.1 and 12.27.090.B.1) Operating Permit The City Manager/Council Operating permits for all may authorize regs to cannabis businesses may administer Chapter be required by the City (12.25.140 and 12.27.140) Manager (12.21.080.C and 12.22.160.C)

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1 Chapter 12.21 (formerly 12.23) 2 CANNABIS BUSINESSES: GENERAL REGULATIONS 3 4 Sections: 5 12.21.010 Purpose and Applicability 6 12.21.020 Definitions 7 12.21.030 Information Requirements 8 12.21.040 Operating Standards 9 12.21.050 Records 10 12.21.060 Operating Procedure and Criteria 11 12.21.070 Confidentiality of Information 12 12.21.080 Authority of City Manager 13 12.21.090 Abatement of Violations 14 12.21.100 Fees 15 12.21.110 Severability 16 17 12.21.010 Purpose and Applicability

18 The purpose of this Chapter is to collect in one location in this Code all of the definitions 19 and general operating standards applicable to Cannabis Businesses and to implement 20 the provisions contained in the Medicinal and Adult-Use of Cannabis Regulation and 21 Safety Act, codified in Division 10 of the Business and Professions Code, Section 1602 22 and 1617 of the Fish and Game Code, Sections 37104, 54036, and 81010 of the Food 23 and Agriculture Code, Division 10 of the Health and Safety Code, Division 2 of the 24 Revenue and Taxation Code, Sections 23222 and 2429.7 of the Vehicle Code, and 25 Sections 1831, 1847, and 13276 of the Water Code (“MAUCRSA”), as amended from 26 time to time. 27 28 12.21.020 Definitions

29 A. "Active Ingredients" means, in the case of dried cannabis flowers, extractions or 30 infusions, delta-9- tetrahydrocannabinolic acid, delta-9-, 31 cannabidiolic acid, , and any or propyl cannabinoid derivative 32 when present in amounts greater that .5% by dry weight, and any mono- or 33 sesquiterpenoid present in an amount exceeding .3% of a product’s dry weight. 34 35 B. “Adult Use Cannabis” means Cannabis and Cannabis Products intended for 36 consumption by adults 21 and over, and that is not Medicinal Cannabis. 37 38 C. “Adulterant” means any poisonous or deleterious substance that may render 39 Cannabis or Cannabis Products impure or injurious to health, as determined by the 40 City’s Environmental Health or Public Health Divisions. 41

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42 D. “Adulterated” means any Cannabis or Cannabis Product with Contaminates 43 exceeding any testing thresholds and/or containing any Adulterant. 44 45 E. "Batch" shall have the same meaning as set forth in MAUCRSA, as amended from 46 time to time, 47 48 F. "Cannabis" shall have the same meaning as set forth in Section 26001 of the 49 Business and Professions Code, as amended from time to time, and includes both 50 adult-use and medicinal cannabis. 51 52 G. “Cannabis Business” is a business possessing a State license as specified 53 in Section 26050 of the Business and Professions Code, as amended from time to time, 54 and includes Cannabis Businesses with an “A” designation (“ACB”) and Cannabis 55 Businesses with an “M” designation (“MCB”). 56 57 H. "Cannabis By-Products" means delta-8-THC and when present in 58 amounts greater than 0.2% of a product’s dry weight. 59 60 I. "Cannabis Compound(s)" means any or all of the following chemicals, as the 61 context requires: 62 63 1. "THC" or "Δ9-THC" means Δ9-tetrahydrocannabinol, (Δ)-(6aR,10aR)-6,6,9- 64 trimethyl-3-pentyl-6a,7,8,10a- tetrahydro-6H-benzo[c]chromen-1-ol. 65 66 2. "THCA" or "Δ9-THCA" means the acid form of THC. 67 68 3. "CBD" or "Cannabidiol" means 2-[(1R,6R)-6-isopropenyl-3-methylcyclohex-2- 69 en-1-yl]-5-pentylbenzene-1,3- diol. 70 71 4. "CBDA" or "Cannabidiolic acid" means the acid form of CBD. 72 73 5. "CBN" or "Cannabinol" means 6,6,9-trimethyl-3-pentyl-benzo[c]chromen-1-ol. 74 75 J. “ Facility" or "Facility" shall have the same meaning as 76 “cultivation site” as set forth in Section 26001 of the Businesses and Professions Code. 77 It includes “Major Cannabis Cultivation Facility”, defined as follows: 78 79 “Major Cannabis Cultivation Facility” means a Facility that is between 10,000 sf 80 and 22,000 sf in total canopy area. 81 82 K. “Cannabis Products” shall have the same meaning as set forth in Section 26001 of 83 the Business and Professions Code, as amended from time to time, and includes both

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84 medicinal and adult-use Concentrates and Cannabis Products. 85 86 L. “Cannabis Waste” means contaminated Cannabis or Cannabis Products that 87 cannot be rendered safe and any Cannabis or Cannabis Products that have been 88 designated as a waste by a Cannabis Business, or regulatory authority. Cannabis 89 Waste does not include materials from the cultivation and manufacturing processes not 90 known to be contaminated with pesticide or heavy metal residues and which may be 91 composted by an approved process. 92 93 M. "Collective" shall mean an affiliation, association, or collective of persons 94 comprised exclusively and entirely of qualified patients and the primary caregivers of 95 those patients, the purpose of which is to collectively provide for or assist in the 96 cultivation and distribution of Medicinal Cannabis to its members. Collectives may have 97 more than one location. Each location of a Collective shall be subject to the applicable 98 regulations in Chapter 12.27.120. Medicinal cannabis collectives shall not be located in 99 commercial or manufacturing zoning districts, and shall only be allowed in residential 100 zoning districts, and only to the extent they are incidental to a lawfully established 101 residential use in a building located completely within a residential zoning district. A 102 Collective may be organized as any statutory business entity permitted under California 103 law, provided it operates in a Not-For- Profit manner as defined in Chapter 12.27. 104 105 N. "Concentrate" shall have the same meaning as set forth in Section 26001 of the 106 Business and Professions Code, as amended from time to time. 107 108 O. "Contaminant" means any pesticide, residual solvent or microbiological organism 109 or product thereof, heavy metal, or any other Adulterant as determined by the 110 Environmental Health Division. 111 112 P. “Cosmetic Cannabis Product” means any article, or its components, intended to be 113 rubbed, poured, sprinkled, or sprayed on, introduced to, or otherwise applied to, the 114 human body, or any part of the human body, that is not an Edible Cannabis product and 115 includes tinctures. 116 117 Q. "Cultivate” and “Cultivation" mean any activity involving the planting, growing, 118 harvesting, drying, curing, grading or trimming of cannabis. 119 120 R. “Cultivator” means an individual or entity required to be licensed to cultivate 121 cannabis pursuant to MAUCRSA, as amended from time to time. 122 123 S. “Deliver” and “Delivery” shall mean any transit of Cannabis or Cannabis Product 124 from a Retailer to a Customer at a residence. 125

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126 T. “Distributor” means an individual or entity required to be licensed as a distributor 127 pursuant to MAUCRSA, as amended from time to time. 128 129 U. "Edible Cannabis Product" (or "Edible") means a cannabis product that is intended 130 to be used, in whole or in part, for human consumption, including but not limited to, 131 chewing gum, but excluding products set forth in Division 15 (commencing with Section 132 32501) of the Food and Agricultural Code. An edible cannabis product is not 133 considered food, as defined by Section 109935 of the health and Safety Code, or a 134 drug, as defined by Section 109925 of the Health and Safety Code. 135 136 V. “Manufacturer” means an individual or entity required to be licensed as a 137 manufacturer pursuant to MAUCRSA, as amended from time to time. 138 139 W. “Medicinal Cannabis” means Cannabis and Cannabis Products intended as 140 medicine for those with a valid physician’s recommendation in compliance with 141 California law. 142 143 X. “Microbusiness” shall have the same meaning set forth in MAUCRSA, as amended 144 from time to time. 145 146 Y. “Nursery” means an individual or entity required to be licensed as a Type 4 147 Cultivator pursuant to MAUCRSA, as amended from time to time, and includes “Class 1 148 Nursery” and “Class 2 Nursery,” defined as follows: 149 150 1. “Class 1 Nursery” means a nursery that does not produce mature, flowering 151 plants, such as cuttings or clones. 152 153 2. “Class 2 Nursery” means a nursery that produces mature plants with flowers 154 for the purpose of producing seeds, whether for distribution to a Retailer or for 155 research purposes. A Class 2 Nursery may also produce cuttings or clones. 156 157 Z. "Primary Caregiver" shall have the same meaning as set forth in Section 26001 of 158 the Business and Professions Code, as amended from time to time. 159 160 AA. "Principal" means any person that has direct or non-delegated indirect authority 161 over the management or policies of a Cannabis Business. 162 163 BB. "Protected Health Information" means documentation of a an MCB’s Qualified 164 Patient’s medical history or condition other than a physician’s recommendation, an 165 identification card issued pursuant to Health and Safety Code Section 11362.7 et seq., 166 or the written designation of a Primary Caregiver by a Qualified Patient or identification 167 card holder. Protected Health Information shall not include information conveyed by a

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168 Qualified Patient to a Retailer regarding such Qualified Patient’s medical condition, 169 information conveyed by a Qualified Patient to a Retailer regarding efforts to ameliorate 170 or otherwise address symptoms associated with such Qualified Patient’s medical 171 condition, or information regarding Cannabis or Medicinal Cannabis Products provided 172 to a Qualified Patient. 173 174 CC. "Qualified Patient" shall have the same meaning as provided in California Health 175 and Safety Code Section 11362.7. 176 177 DD. Retailer 178 179 1. “Retailer” means both Retailers with a location to which Customers, Qualified 180 Patients, or Primary Caregivers may come to acquire Cannabis or any other 181 good or service, and Delivery-Only Retailers. 182 183 2. "Retailer" shall mean an ACB (“A-Retailer”) or MCB (“M-Retailer”) that is 184 authorized under Chapter 12.21, Title 23, and California law to dispense 185 Cannabis at a non-residential location. A Retailer may deliver to its Qualified 186 Patients, Primary Caregivers, or adult consumers also and provide other 187 incidental services to its Qualified Patients, Primary Caregivers, or adult 188 consumers to the extent permitted by California law. 189 190 3. "Delivery-Only Retailer” is a Retailer that is limited to acquiring Cannabis and 191 delivering it to its Qualified Patients, Primary Caregivers, and adult consumers, 192 and does not have a location to which Qualified Patients, Primary Caregivers, 193 and adult consumers may come to acquire Cannabis or any other good or 194 service. 195 196 EE. "Solvent" means any substance in which another substance is dissolved, forming a 197 solution. 198 199 FF. "Tincture" means an extract of Cannabis or solution of such, typically made with 200 food-grade alcohol or glycerin. 201 202 12.21.030 Information Requirements

203 Every Cannabis Business shall provide the following information to the City’s 204 Environmental Health Division, and shall be updated whenever there is any material 205 change. 206 207 A. A description of the Cannabis Business and its location, which shall include such 208 information as the City may require that demonstrates compliance with applicable 209 provisions of this Chapter.

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210 211 B. The name, address and 24-hour contact information for each Principal, including a 212 photocopy of at least one primary form of photo identification, such as a California 213 Drivers License or US Passport. This information shall also include any aliases, maiden 214 or married names or other former legal names. 215 216 C. Proof of the nature of the Cannabis Business’s organizational status, such as 217 articles of incorporation, by-laws, partnership agreements, and other documentation as 218 may be appropriate or required by the City. 219 220 12.21.040 Operating Standards

221 A. All Cannabis Businesses shall comply with the operating standards set forth in this 222 Section. A. Cannabis Businesses shall comply with Health and Safety Code Sections 223 11362.7 et seq. and any other California laws that may be adopted concerning Adult- 224 Use and Medicinal Cannabis, including but not limited to the Medicinal and Adult-use of 225 Cannabis Regulation and Safety Act, and Chapters 12.26, 12.27 and 12.25 and Title 23 226 of the Berkeley Municipal Code, and any other applicable City laws or regulations, and 227 shall pay all applicable state or local taxes and fees. To the extent the requirements of 228 this Chapter and Chapters 12.22 and 12.26 are more restrictive than California law, they 229 shall apply. To the extent the requirements of this Chapter and Chapters 12.22 and 230 12.26 are less restrictive than California law, the requirements of California law shall 231 apply except in instances where the state has expressly allowed localities to be less strict. 232 233 B. MCBs may retain memberships. 234 235 C. Cannabis Businesses shall only obtain Cannabis from licensed cultivators as 236 authorized by California law. 237 238 D. All employees and volunteers of a Cannabis Business, with the exception of an M- 239 Retailer, must be at least 21 years of age. A Qualified Patient who is at least 18 years 240 old may work or volunteer at an M-Retailer. 241 242 E. The Environmental Health Division may require any Cannabis Business to submit 243 an odor control plan to be approved by the Division. 244 245 F. Non-diversion. ACBs shall take all practicable steps necessary to prevent and 246 deter diversion of Cannabis and Cannabis Products to persons under 21 years of age, 247 including by using the state-mandated Track-and-Trace system. MCBs shall take all 248 practicable steps necessary to prevent and deter diversion Medicinal Cannabis and 249 Medicinal Cannabis Products to persons other than Qualified Patients or their Primary 250 Caregivers, or non-MCBs, including by using the state-mandated Track-and-Trace 251 system.

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252 253 G. Security. 254 255 1. Cannabis Businesses shall provide adequate security and lighting on-site to 256 ensure the safety of persons and protect the premises from theft at all times. 257 Lighting shall be of sufficient intensity to illuminate all areas of the premises. 258 259 2. Retailers, Distributors and Cultivators must maintain security guards and 260 camera coverage of their entire grounds to an extent sufficient to ensure the 261 safety of persons and deter crime. Cameras must be maintained in good 262 condition, and use a format approved by the City Manager, which is of 263 adequate quality, color rendition and resolution to allow the ready identification 264 of any individual committing a crime. The cameras shall be in use 24 hours per 265 day, seven (7) days per week. The areas to be covered by the security 266 cameras include, but are not limited to, dispensing areas, storage areas, 267 cultivation areas, all doors, parking lots, and any other area determined by the 268 City Manager. Surveillance footage must be retained for a period of 90 days 269 and made available to the Berkeley Police Department for purposes of 270 investigation of alleged crimes, promptly upon request without the necessity of 271 a warrant or subpoena. Retention and maintenance of security camera 272 recordings shall comply with Section 12.27.110. 273 274 3. Cannabis Businesses must be equipped with an alarm system that is operated 275 and monitored by a security company licensed by and in good standing with the 276 California Department of Consumer Affairs. Alarms shall be maintained and in 277 good working condition at all times. 278 279 4. In order to prevent unauthorized entry during non-business hours, a Retailers, 280 Distributors and Cultivators shall either secure all exterior windows and roof 281 hatches from the inside with bars, retractable, folding or sliding metal gates, or 282 metal rollup or accordion doors, or provide at least one security guard during 283 those hours. 284 285 5. Any security guards employed by Cannabis Businesses shall be licensed and 286 possess a valid Department of Consumer Affairs "Security Guard Card" at all 287 times. Security personnel may not be armed. 288 289 6. All Cannabis Businesses must securely store all Cannabis at all times, except 290 for limited amounts used for display purposes, samples or immediate sale, and 291 the entrance to all storage areas shall be locked and under the control of staff 292 at all times. 293

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294 7. Cannabis Businesses shall make transactions with payment methods other 295 than cash whenever feasible. All cash received, except that needed for retail 296 customer transactions shall be kept in a secure receptacle such as a drop safe 297 or other type of safe. 298 299 8. If any of the requirements in this section conflict with state law, the stricter 300 requirement will apply. 301 302 H. Neighborhood compatibility 303 304 1. Cannabis Businesses shall be operated to ensure neighborhood compatibility, 305 and shall take all steps necessary to ensure that Customers do not create 306 neighborhood disturbances. Such measures shall include, but not be limited to, 307 providing a security guard to patrol the area surrounding any Retailer, 308 Distributor or Cultivator during all hours of operation. 309 310 2. Retailers shall provide the Police Department and all residents and 311 owners within 100 feet with the current name, phone number, secondary phone 312 number and e-mail address of an on-site community relations staff person to 313 whom notice of any operating problems associated with the establishment may 314 be reported. This information shall be updated as necessary to keep it current. 315 Retailers shall encourage neighbors to call this person to try to solve any 316 operating problems. 317 318 3. All Cannabis Businesses shall have an on-site manager responsible for overall 319 operation at all times they are open, and shall provide the Police Department 320 with contact information for all such persons, including telephone number and 321 e-mail address. Cannabis Businesses shall also provide the Police Department 322 with the current name and phone numbers of at least one 24-hour-on-call 323 manager. This information shall be updated as necessary to keep it current. 324 325 4. Cannabis Businesses shall take all reasonable steps to discourage and correct 326 objectionable conditions that constitute a public or private nuisance in parking 327 areas, sidewalks, alleys and areas surrounding the premises and adjacent 328 properties. Such conditions include, but are not limited to: smoking; creating a 329 noise disturbance; loitering; littering; and graffiti. 330 331 5. Cannabis Businesses shall ensure all graffiti is removed from property and 332 parking lots under their control within 72 hours of its appearance. 333 334 I. Sale and Consumption of Cannabis, Tobacco and Alcohol 335

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336 1. Sale or consumption of tobacco is prohibited at Cannabis Businesses. 337 338 2. Sale and/or service of alcoholic beverages at Cannabis Businesses is 339 prohibited. 340 341 J. Exterior Signage. Exterior signage identifying the presence of a Cannabis 342 Business is discouraged except that authorized for Retailers with a retail location for 343 Customer purchases. 344 345 K. Holding requirements. Any juice or beverage produced in accordance with Section 346 40270 of the California Code of Regulations Title 17, Division 1, Chapter 13, 347 Subchapter 3, Article 4 that requires refrigeration to prevent the rapid growth of 348 undesirable organisms or the formation of alcohol through fermentation shall be held 349 below 41 F to prevent the cannabis product from becoming adulterated during the 350 manufacturing, processing, packing, holding, and transporting. Transporting includes 351 both by a Distributor among licensees and by Retailers conducting delivery to 352 Customers, Qualified Patients, and Qualified Caregivers. Fixed facilities shall hold such 353 cannabis products in equipment certified to ASTM commercial food safety equipment 354 standards by an organization such as but not limited to NSF, UL, or ETL. 355 356 12.21.050 Records

357 A. General. All Cannabis Businesses shall maintain contemporaneous financial and 358 operational records sufficient to show compliance with this Chapter, Chapter 12.26, and 359 applicable California law, as well as satisfaction of commitments made in the Cannabis 360 Business’s application and during the ranking and allocation process. Such records 361 shall be maintained in a secure location under the control of the Cannabis Business 362 within the City of Berkeley, and shall be subject to inspection by the City upon 363 reasonable notice during regular operational hours or by appointment. 364 365 B. Finances. 366 367 1. Cannabis Businesses shall make their financial records available to the City on 368 an annual basis. Such audited records shall be limited to information necessary 369 for the City to determine fair payment of taxes and for M-Retailers very low 370 income 2% distribution verification. 371 372 C. Operations. Cannabis Businesses shall maintain the following information and 373 make it available to the City within 30 days of the end of each calendar year. 374 375 1. The total number of very low-income members and the amount distributed; 376 377 2. The total and net amount of revenue collected during the year;

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378 379 3. The consideration paid for each Batch; 380 381 4. Monetary and non-monetary contributions; 382 383 5. Total monetary and non-monetary distributions to suppliers; 384 385 6. Salaries and overhead; and 386 387 7. A complete list of the types of Cannabis, Cannabis Products and Edibles 388 available, and the prices thereof. 389 390 12.21.060 Operating Procedure and Criteria

391 No Cannabis Business may operate in the City of Berkeley without all applicable City of 392 Berkeley licenses. The Council may by resolution establish procedures and criteria for 393 accepting applications to operate Cannabis Businesses and determining which, if any, 394 to approve. 395 396 12.21.070 Confidentiality of Information

397 A. The City’s review of information submitted or maintained pursuant to this Chapter 398 shall preserve the confidentiality of all information about Principals and members to the 399 maximum extent consistent with state and local law. The City shall incur no liability for 400 the inadvertent or negligent disclosure of such information. Disclosure of any Principal 401 or Member information to the City for purposes of this Chapter shall not be deemed a 402 waiver of confidentiality. Financial information provided to the City pursuant to Section 403 12.23.050 shall be deemed to be "financial information" covered by Chapter 7.26. 404 405 B. The information required by Section 12.23.030 and recordings from security 406 cameras, shall be confidential and shall not be subject to public inspection or disclosure 407 except to City employees for purposes of law enforcement. 408 409 12.21.080 Authority of City Manager

410 A. The City Manager or his or her designee shall have authority to determine the 411 nature of any Cannabis Business or purported Cannabis Business and whether that 412 entity complies with any of the requirements of this Chapter, Chapters 12.22 and 12.26, 413 and Title 23, and to conduct inspections as provided in Chapter 1.16. 414 415 B. The City Manager or his or her designee may promulgate regulations for the 416 administration and implementation of this Chapter, including, but not limited to, 417 regulations relating to non-diversion, record-keeping, and tracking and tracing

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418 Cannabis. 419 420 C. The City Manager or his or her designee may require any Cannabis Business to 421 obtain operating permits from the City of Berkeley Fire Department, Toxics 422 Management Division, Environmental Health Division, and any other department or 423 division. 424 425 D. The City Manager or his or her designee shall have authority to enter onto private 426 property and perform such inspections as may be necessary or convenient to 427 implement and enforce this Chapter, Chapters 12.22 and 12.26, and Title 23, and to 428 adopt regulations to implement this Chapter, Chapters 12.22 and 12.26, and Title 23. 429 430 12.21.090 Abatement of Violations

431 A. Violations of this Chapter or Chapters 12.26, 12.27 or 12.25 shall constitute a 432 public nuisance under Chapter 1.26. The City may enforce this Chapter through 433 proceedings under Chapter 1.24, Chapter 1.28, Chapter 23B.64 and any other law or 434 ordinances it deems appropriate. 435 436 B. Notwithstanding anything to the contrary, violations of this Chapter or Chapters 437 12.26, 12.27 or 12.25 shall not be punishable as public offenses to the extent that doing 438 so would conflict with California law. 439 440 12.21.100 Fees

441 The City Council may establish by resolution the fees that shall be charged to Cannabis 442 Businesses for administration and implementation of this Chapter. The adoption of such 443 fees shall not prevent the City from recovering enforcement costs from Cannabis 444 Businesses not specified in such resolution. 445 446 12.21.110 Severability

447 If any word, phrase, sentence, part, section, subsection, or other portion of this Chapter, 448 or any application thereof to any person or circumstance is declared void, 449 unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, 450 section, subsection, or other portion, or the prescribed application thereof, shall be 451 severable, and the remaining provisions of this Chapter, and all applications thereof, not 452 having been declared void, unconstitutional or invalid, shall remain in full force and 453 effect. The City Council hereby declares that it would have passed this title, and each 454 section, subsection, sentence, clause and phrase thereof, irrespective of the fact that 455 any one or more sections, subsections, sentences, clauses or phrases had been 456 declared invalid or unconstitutional.

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1 Chapter 12.22 2 CANNABIS BUSINESS OPERATING STANDARDS 3 Sections: 4 Article I General 5 12.22.010 Applicability and Purpose 6 12.22.020 Selection Process 7 8 Article II Cannabis Businesses 9 12.22.030 Eligibility requirements 10 12.22.040 Retailers 11 12.22.050 Distributors 12 12.22.060 Manufacturers 13 12.22.070 Cultivators 14 12.22.080 Testing Laboratories 15 12.22.090 Microbusiness 16 12.22.100 Product Safety and Quality Assurance 17 12.22.110 Reserved 18 19 Article III Collectives 20 12.22.120 Limitations on Collective operations 21 12.22.130 Operating standards for all Collectives 22 12.22.140 Product Safety and Quality Assurance for Collectives 23 24 Article IV Enforcement 25 12.22.150 Fees 26 12.22.160 Authority of City Manager 27 12.22.170 Severability 28 12.22.180 Reserved 29 30 12.22.010 Applicability and Purpose 31 A. This Chapter applies to all Cannabis Businesses as defined in Chapter 12.21. The 32 purpose of the Chapter is to provide specific operating standards applicable to these 33 businesses and to implement the provisions contained in the Medicinal and Adult-Use of 34 Cannabis Regulation and Safety Act, codified in Division 10 of the Business and 35 Professions Code, Section 1602 and 1617 of the Fish and Game Code, Sections 36 37104, 54036, and 81010 of the Food and Agriculture Code, Division 10 of the Health 37 and Safety Code, Division 2 of the Revenue and Taxation Code, Sections 23222 and 38 2429.7 of the Vehicle Code, and Sections 1831, 1847, and 13276 of the Water Code 39 (“MAUCRSA”), as amended from time to time. 40 41 12.22.020 Selection Process 42 The Council may by resolution establish procedures and criteria for accepting 43 applications to operate Retailers or Major Cannabis Cultivators and determining which, 44 if any, to approve.

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45 12.22.030 Eligibility requirements 46 A. No Principal of any business of a certain license type may be a Principal for any 47 other business of a different license type in the City of Berkeley, except that a State “M” 48 licensee may also be a State “A” licensee of the same license type. 49 50 12.22.040 Retailers 51 Retailers shall comply with the operating standards set forth in this Section. 52 A. Retailers must obtain operating permits from and allow inspections by the City of 53 Berkeley Environmental Health Division. 54 B. Retailers shall only allow Customer visits between the hours of 9:00 a.m. and 9:00 55 p.m. 56 C. A Retailer may deliver cannabis only to the extent allowed by its State license. 57 D. Retailers may not distribute free samples for promotional purposes outside of 58 the Retailer premises. 59 E. Accessibility. Retailers shall comply with all physical accessibility 60 requirements that would be applicable to a newly-constructed building, except 61 that pre-existing Retailers permitted under Ordinance No. 6826-N.S. shall not be 62 required to comply with such requirements as long as they remain in the same 63 location as when this Chapter became effective, except as may be required by 64 other laws. 65 F. Signage. 66 1. All Retailers must either provide to each Customer or prominently display at all 67 points of sale a notice containing the language set forth in this Section. 68 a. If provided to each Customer, the notice shall be printed on paper that is no 69 less than 5 inches by 8 inches in size, and shall be printed in no smaller than 70 18-point font. 71 b. If prominently displayed at all points of sale, the notice shall be printed on a 72 poster no less than 8-1/2 by 11 inches in size, and shall be printed in no smaller 73 than a 28-point font. 74 2. All Retailers must prominently display a notice as set forth in 75 subsection 12.22.040.E.1.b that contains the following language: 76 “The use of cannabis may impair a person’s ability to drive a motor 77 vehicle or operate heavy machinery.” 78 All Retailers that provide delivery services, including Delivery-only 79 Retailers, must provide this notice to each delivery Customer as set 80 forth in subsection 12.22.040.E.1.a. 81 3. All Retailers must prominently display a notice as set forth in subsection 82 12.22.040.E.1.b that contains the following language: 83 “WARNING: Cannabis is not tested by local, state or federal 84 governmental agencies for health, safety, or efficacy. There may be 85 health risks associated with the consumption of cannabis or cannabis 86 products.” 87 All Retailers that provide delivery services, including Delivery-only Retailers, must 88 provide this notice to each Customer as set forth in subsection 12.22.040.E.1.a. 89 4. Any M-Retailer that allows Customer visits must prominently display a notice as 90 set forth in subsection 12.22.040.E.1.b that contains the following language::

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91 “This M-Retailer provides medicinal cannabis only to Qualified Patients 92 and their Primary Caregivers, who must have a valid California Medical 93 Marijuana Identification Card or a verifiable, written recommendation 94 from a physician for medicinal cannabis.” 95 All M-Retailers that provide delivery services, including Delivery-only M-Retailers, 96 must provide this notice to each delivery Customer as set forth in subsection 97 12.22.040.E.1.a. 98 5. All M-Retailers must prominently display a notice as set forth in subsection 99 12.22.040.E.1.b that contains the following language: 100 “This Medicinal Cannabis Retailer is licensed in accordance with the 101 laws of the City of Berkeley and the State of California. The sale or 102 diversion of medicinal cannabis for non-medical purposes is a violation 103 of State and local laws.” 104 All M-Retailers that provide delivery services, including Delivery-only 105 M-Retailers, must provide this notice to each delivery Customer as set 106 forth in subsection 12.22.040.E.1.a. 107 6. Any A-Retailer that allows Customer visits must prominently display 108 a notice as set forth in subsection 12.22.040.E.1.b that contains the 109 following language: 110 “This Adult-Use Cannabis Retailer is licensed in accordance with the 111 laws of the City of Berkeley and the State of California. The sale or 112 diversion of adult- use cannabis to persons under the age of 21 is a 113 violation of State and local laws.” 114 All A-Retailers that provide delivery services, including Delivery-only 115 A-Retailers, must provide this notice to each delivery Customer as set 116 forth in subsection 12.22.040.E.1.a. 117 G. Consumption of Cannabis 118 1. The consumption of Cannabis or Cannabis Products in public places is 119 prohibited. 120 2. Notwithstanding subsection 12.22.040.F.1, the consumption of Cannabis and 121 Cannabis Products is permitted at Retailers that allow Customer visits, with the 122 exception of smoking. Smoking of Cannabis is prohibited at Retailers. For purposes 123 of this subdivision, the term "smoking" does not include the use of an electronic 124 and/or battery-operated device, the use of which may resemble smoking, which can 125 be used to deliver an inhaled dose of Cannabis, including but not limited to any 126 device manufactured, distributed, marketed, or sold as an electronic cigarette, an 127 electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or 128 any other product name or descriptor. 129 H. Delivery Requirements 130 1. All Retailers that provide delivery services must comply with the following 131 requirements and all applicable requirements of State law. In the event of a conflict, 132 State law shall prevail. 133 a. All vehicles used for delivery shall be maintained and operated in a manner 134 and in a condition required by law and applicable regulations. 135 b. The following persons may not drive delivery vehicles: 136 i. a person who does not possess a valid driver’s license;

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137 ii. a person who has been at fault within the immediately preceding two years 138 in any motor vehicle accident causing death or personal injury; 139 iii. a person who has been at fault in three or more motor vehicle accidents 140 within the previous 12 months; 141 iv. a person who has been under suspension, revocation or probation within 142 the last five years by the Department of Motor Vehicles for a cause involving 143 the safe operation of a motor vehicle; 144 v. a person who has been convicted of any of the following misdemeanor 145 offenses within the past five years: driving under the influence or reckless 146 driving involving alcohol or reckless driving involving bodily injury; 147 vi. a person who has been convicted of any of the following offenses: a 148 second or subsequent conviction for driving under the influence, or any felony 149 conviction for driving under the influence (with or without injury), or vehicular 150 manslaughter, or habitual traffic offender. 151 c. The following persons may not be involved in making deliveries: 152 i. any person who is required to register as a sex offender under Section 153 290 of the California Penal Code; 154 ii. any person who has within the past ten years been convicted of any felony 155 offense involving moral turpitude. 156 d. Persons involved in making deliveries must have in their possession a copy of 157 the document memorializing the City’s approval of the delivery service. 158 e. Persons involved in making deliveries may not be armed. 159 f. Delivery vehicles may not advertise any activity related to Cannabis, carry 160 symbols or emblems related to Cannabis, or advertise the name of the Retailer. 161 g. Delivery of Cannabis shall be directly to the residence of the Customer unless 162 said residence is in a park, school or hospital. Deliveries to parks, schools, 163 hospitals, and all non-residential locations are prohibited. 164 h. Deliveries may occur only between the hours of 8:00 a.m. and 10:00 p.m. 165 i. Delivery vehicles shall not carry or transport at any one time an amount of 166 Cannabis, Cannabis Products, cash and/or cash equivalents worth, in total, more 167 than three thousand dollars ($3,000). 168 j. All orders to be delivered shall be packaged by the name or identification 169 number of the Customer for whom the delivery is intended. 170 k. In addition to the requirements of Section 12.27.050 subdivisions A and B, 171 the person responsible for making deliveries shall have a copy of the record of all 172 delivery requests while making deliveries. 173 l. All Retailers that provide delivery service shall maintain at all times 174 Commercial General Liability insurance providing coverage at least as broad as 175 ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of 176 one or more persons, property damage and personal injury with limits of not less 177 than One Million Dollars ($1,000,000) per occurrence and Comprehensive 178 Automobile Liability (owned, non-owned, hired) providing coverage at least as 179 broad as ISO Form CA 00 01 on an occurrence basis for bodily injury, including 180 death, of one or more persons, property damage and personal injury, with limits 181 of not less than One Million Dollars ($1,000,000). The Commercial General 182 Liability policy shall provide contractual liability, shall include a severability of

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183 interest or equivalent wording, shall specify that insurance coverage afforded to 184 the City shall be primary, and shall name the City, its officials and employees as 185 additional insured. Failure to maintain insurance as required herein at all times 186 shall be grounds for immediate suspension of the privilege of providing delivery 187 service. 188 I. M-Retailers 189 1. M-Retailers must not admit any person without first verifying his or her status 190 as a Qualified Patient or Primary Caregiver. 191 2. No physician recommendations for Medicinal Cannabis may be provided on 192 site. 193 3. M-Retailers may not provide more Medicinal Cannabis to a Qualified Patient 194 or Primary Caregiver than is necessary for the personal medicinal use of the 195 Qualified Patient for whom the Medicinal Cannabis is intended, and may not 196 dispense more Medicinal Cannabis to a Qualified Patient or Primary Caregiver 197 per day than permitted by State law. 198 4. M-Retailers must take all practicable steps necessary to prevent and deter 199 diversion of Medicinal Cannabis to any person who is not a Qualified Patient or 200 Primary Caregiver. M-Retailers must limit access to Medicinal Cannabis to 201 authorized personnel only. M-Retailers must maintain an inventory management 202 system that accounts for all Medicinal Cannabis separately from Adult Use 203 Cannabis if both types are sold or distributed at the Retailer. 204 5. M-Retailers must not admit any Qualified Patient under 18 years of age 205 pursuant to MAUCRSA. 206 6. Medicinal Cannabis for low income persons 207 a. At least 2% (by weight) of the annual amount of Medicinal Cannabis in 208 dried plant form provided by a M-Retailer to Qualified Patients and Primary 209 Caregivers shall be provided at no cost to very low-income Qualified Patients 210 who are Berkeley residents or their Primary Caregivers. This amount shall be 211 calculated every six months, based on the amount dispensed during the 212 immediately preceding six months. Medicinal Cannabis provided under this 213 Section shall be the same quality on average as Medicinal Cannabis that is 214 dispensed to other persons. 215 b. For purposes of this Section, income shall be verified using federal income 216 tax returns or another reliable method approved by the City Manager. 217 c. For purposes this Section, "very low income" shall mean the household 218 income levels established by the U.S. Department of Housing and Urban 219 Development. 220 d. M-Retailers shall keep an accurate roster of very low-income Qualified 221 Patients who are Berkeley residents, which shall include a copy of either a 222 California Medical Cannabis Identification Card or a physician’s 223 recommendation, and, if using a Primary Caregiver, a written authorization 224 from the Qualified Patient to be represented by such Primary Caregiver. Such 225 records shall be maintained in a manner that protects the confidentiality of the 226 Qualified Patient and Primary Caregiver. 227 e. M-Retailers shall track distributions to very low-income Qualified Patients 228 (or their Primary Caregivers) in an inventory management system compatible

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229 with the state Track-and-Trace program. M-Retailers shall generate a report 230 every six (6) months showing the total percentage of Medicinal Cannabis 231 sales distributed to Berkeley residents. If an M-Retailer voluntarily expands 232 the program to residents outside of Berkeley, that percentage shall be 233 calculated separately. 234 J. A-Retailers must not admit any person under 21 years of age. If an A-Retailer 235 also holds an M-Retailer license, access to the M-Retailer portion of the 236 establishment is subject to the requirements of subsection 12.22.040.H. 237 K. Delivery-only Retailers 238 1. Delivery-Only Retailers shall comply with all requirements that are applicable 239 to Retailers except as specifically exempted based on the absence of Customer 240 visits. 241 2. Delivery-only Retailers shall only be established in zoning districts where they 242 are specifically permitted. 243 3. Signage and advertising or referencing cannabis, including symbols such as a 244 cannabis leaf or a green cross, are prohibited at Delivery-Only Retailers. 245 246 12.22.050 Distributors 247 A. Distributors must obtain operating permits from and are subject to inspections by the 248 City of Berkeley Environmental Health Division. 249 B. Distributors must arrange for the testing of Cannabis and Cannabis Products 250 consistent with the City of Berkeley testing procedures specified in Section 12.27.100 of 251 this Chapter until such time as testing procedures specified by the Bureau of Cannabis 252 Control are available and conducted locally. 253 C. Testing as specified by the Bureau of Cannabis Control shall be conducted no later 254 than July 1, 2018 at which time BMC Sections 12.25.070.__ and 12.27.070.___ are 255 repealed. 256 D. Distributors must maintain a written or computerized log compatible with the State 257 Track-and-Trace system documenting: 258 1. the date, type, and amount of Product tested; 259 2. the source(s) of any contaminated Medical Cannabis 260 3. the results of the testing, including the name and level of the substance detected; 261 and 262 4. the disposition of the Cannabis from which any contaminated sample was 263 obtained, including the amount and the date and manner of disposition. 264 Such logs shall be maintained for at least one year and be made available to the City 265 upon request. 266 E. Distributors are subject to the provisions of the California Retail Food Code and the 267 Sherman Food, Drug and Cosmetic Law, even if those laws are not directly applicable 268 to Edible or Cosmetic Cannabis Products. Handwashing facilities shall be adequate 269 and convenient and be furnished with running water at a suitable temperature. 270 Handwashing facilities shall be located in preparation areas and where good sanitary 271 practices require employees to wash and/or sanitize their hands, and provide effective 272 hand-cleaning and sanitizing preparations and sanitary towel service or suitable drying 273 devices.

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274 F. Scales and weighing mechanisms must be able to weigh to within 1/100th of a gram, 275 shall be maintained in good working order and shall be subject to annual inspection by 276 either the Alameda County Department of Agriculture/Weights and Measures or a 277 licensed scale company. 278 279 12.22.060 Manufacturers 280 A. All Manufacturers must obtain operating permits from and are subject to inspections 281 by the City of Berkeley Environmental Health Division. 282 B. Compliance with State Food and Product Safety Requirements. 283 1. A Manufacturer that prepares Cannabis Products must comply with the relevant 284 provisions of all State and local laws regarding the preparation, distribution, labeling 285 and sale of food and cosmetics, even if those laws are not directly applicable to 286 Edible or Cosmetic Cannabis Products. 287 2. Preparation of Edible and Cosmetic Cannabis Products. 288 a. Individuals involved in the production or distribution of Edibles and Cosmetic 289 Cannabis Products shall thoroughly wash their hands before commencing 290 production and before handling the finished product. Gloves must be worn when 291 packaging Edibles or Cosmetic Cannabis Products. 292 b. In order to reduce the likelihood of foodborne disease transmission, 293 individuals who are suffering from symptoms associated with acute 294 gastrointestinal illness or are known to be infected with a communicable disease 295 that is transmissible through foodstuffs are prohibited from preparing Edibles or 296 Cosmetic Cannabis Products until they are free of that illness or disease, or are 297 incapable of transmitting the illness or disease through foodstuffs. Individuals 298 who have sores or cuts on their hands must use gloves when preparing and 299 handling Edibles or Cosmetic Cannabis Products. 300 c. All employees of Manufacturers who produce Edibles must be State certified 301 food handlers. The valid certificate number of such Manufacturers must be on 302 record at each Retailer where the edible product is distributed, and a copy of the 303 certificate kept either on-site, or made available during inspections if kept off-site. 304 3. Scales and weighing mechanisms must be able to weigh to within 1/100th of a 305 gram, shall be maintained in good working order and shall be subject to annual 306 inspection by either the Alameda County Department of Agriculture/Weights and 307 Measures or a licensed scale company. 308 4. Manufacture of Concentrates 309 a. Cold-water and mechanical extraction equipment shall be maintained in sanitary 310 condition and approved for use by the City of Berkeley Environmental Health 311 Division. 312 b. Any manufacture method using compressed gases or flammable solvents, 313 whether volatile or non-volatile, shall be approved in advance and inspected by the 314 City of Berkeley Fire Department and Toxics Management Division. 315 c. All Concentrates shall be produced under sanitary conditions and maintained 316 free of filth and contaminants.

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317 318 12.22.070 Cultivators 319 A. Cultivators must obtain operating permits from and are subject to inspections by the 320 City of Berkeley Environmental Health Division. 321 B. Cultivator license types shall be the same as defined in MAUCRSA, with the 322 exception of Type 4 Cultivation, as defined in Section 12.21.020. 323 C. Cultivators may only provide Cannabis or Cannabis Products to other Cannabis 324 Businesses that are permitted by State and local authorities and compliant with 325 State and local law. 326 D. Energy Use. Cultivators must include all feasible (under the current Title 24, Part 6) 327 cost-effective water and energy efficiency measures, including but not limited to natural 328 daylighting, high efficiency lighting, networked lighting and mechanical controls, and 329 natural cooling. 330 1. Cultivators must include the following systems to the extent feasible: on-site 331 renewable energy generation; energy storage batteries; water collection, filtration 332 and reuse; and rainwater harvesting. 333 2. Cultivators must include in any application for a Cannabis Cultivation Facility a 334 description of all energy and water systems, measures employed to maximize 335 efficient resource use, and the following metrics, with supporting documentation: 336 a. Planned lighting power density (watts/sf) 337 b. Planned lighting Energy Utilization Index (kBtu/sf/year) 338 c. Planned total site Energy Utilization Index (kBtu/sf/year) 339 d. Planned potable water consumption (gallons/sf/year) 340 3. Cultivators must mitigate the carbon dioxide emissions caused by the generation 341 of electrical energy delivered to its Facility by participating in East Bay 342 Community Energy’s (EBCE) 100% renewable content option for electricity or 343 equivalent. Until businesses have the option to purchase power through EBCE, 344 the offset will be achieved through purchase of renewable energy certificates 345 certified by the Center for Resource Solutions. 346 4. If a Facility uses natural gas to generate electricity for consumption at the site, 347 the Cultivator must offset the carbon content of all electrical energy delivered to 348 the Facility by participating in a program that is included in one of the Offset 349 Project Registries approved by the California Air Resources Board and consists 350 of a project or projects that are solely located in the and are ether 351 producing energy or reducing energy consumption. 352 5. For purposes of calculating carbon emissions, the carbon dioxide content of 353 natural gas shall be 5.302 metric tons per 1,000 therms and the carbon dioxide 354 content for electricity shall be the value, at the time of filing, from the most recent 355 Power Content Label published by the California Energy Commission. 356 6. Cultivators shall be responsible for demonstrating compliance with this Section 357 on a calendar-year basis. Documentation shall include copies of energy and 358 water bills, as well as an authorization to energy and water providers to disclose 359 energy and water consumption at the Facility directly to the City. All parties that 360 are responsible for energy and water bills shall also be responsible for providing 361 such documentation and authorization.

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362 7. The annual amount paid by a Cultivator to both mitigate carbon dioxide emissions 363 caused by the generation of electrical energy to its Facility and to offset the 364 carbon content of all electrical energy delivered to its Facility shall not exceed 365 10% of the Facility’s annual energy bill. This fee shall be reconsidered after five 366 years to determine whether it should be readjusted to reflect lower energy rates 367 or higher costs of renewable energy certificates. 368 E. Class 2 Nurseries must track the amount of, and disposition of, flower remaining 369 after seed harvesting. 370 F. Cultivators must store in a safe manner all pesticides approved for use. Only 371 pesticides approved for use may be stored onsite. Any unapproved pesticides 372 found onsite will trigger a crop hold until the live plants are tested and found free of 373 unapproved pesticide. Plants with any level of unapproved pesticides may be 374 destroyed in the presence of City officials designated by the City Manager. 375 G. Cultivators must maintain all growing rooms in a clean, safe and sanitary manner 376 and free of visible molds and fungal growth. 377 H. Cannabis Cultivation Facilities shall not harbor infestations of rodents or 378 non-beneficial insects. 379 I. In Facilities using CO2 enrichment, ambient oxygen sensors shall be installed in any 380 hallways, offices, or other enclosed occupied spaces. 381 382 12.22.080 Testing Laboratories 383 Testing Laboratories must obtain operating permits from and are subject to inspections 384 by the City of Berkeley Environmental Health Division. 385 386 12.22.090 Microbusinesses 387 Microbusinesses must obtain separate City-issued operating permits for each activity 388 conducted on the premises. 389 390 12.22.100 Temporary Cannabis Events 391 Temporary Cannabis events as defined in MAUCRSA are prohibited. 392 393 12.22.110 Reserved 394 395 12.22.120 Limitations on Collective operations 396 As a use that is incidental to the residential use of property in residential zoning districts, 397 and only acquires and provides Medicinal Cannabis to Qualified Patients and Primary 398 Caregivers, Collectives shall comply with the following operating limitations: 399 A. A Collective may not generate more than 5 Member trips per day per location, 400 excluding trips by residents of the Collective location. 401 B. Cash on hand shall be minimized, and no more than $1000 may be retained 402 overnight per location. 403 C. Each Collective may not operate at more than four (4) residential locations in 404 Berkeley, and may not store or maintain at any site at any time more than a combined 405 total of 10 pounds of dried Medical Cannabis and concentrates, of which no more than 1 406 pound may be concentrates.

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407 D. Collectives may not allow Member visits to obtain Medical Cannabis except for 408 social purposes before 8:00 a.m. or after 9:00 p.m. 409 E. No alcohol may be served for consideration. 410 F. No consideration may be charged for entry into the Collective or any part of the 411 residence in which the Collective is located, no live entertainment may be provided, and 412 no entertainment of any sort may be provided for consideration. 413 G. Smoking of Medical Cannabis by non-residents is prohibited in all exterior areas of 414 Collectives. 415 H. Collectives may not have any exterior display identifying them as such. 416 I. Establishment and maintenance of a Collective may not involve any modifications to 417 utility services or exterior modifications beyond those that would be customary for a 418 residence. 419 J. Collectives shall not have any impacts on adjoining properties, such as, but not 420 limited to, excessive noise, glare, smells, smoke, etc., beyond those that are normal for 421 residential use. 422 K. Collectives must consist of Members who are Berkeley residents. 423 L. All cultivation of Medical Cannabis must be conducted at the residential collective 424 location(s). 425 M. All Edibles must be produced at the residential collective location(s) and base 426 ingredients must conform to items on the most recent California Department of Public 427 health’s Approved Cottage Foods list. 428 N. A collective Member, when off the premises, may not have on his or her person an 429 amount of Medicinal Cannabis or Medicinal Cannabis Products in excess of that 430 allowed by State law. 431 O. Primary Caregivers may retrieve Medicinal Cannabis or Medicinal Cannabis 432 Products for their Qualified Patient that is unable for medical reasons to retrieve 433 Medicinal Cannabis or Medicinal Cannabis Products from the collective. Convenience 434 delivery services are expressly prohibited. 435 P. On an annual basis, collectives shall pay the annual operating fee established by the 436 City Council and obtain an Operating Permit from the City of Berkeley Environmental 437 Health Division. Permittees may be subject to inspection by the City of Berkeley 438 Environmental Health Division. 439 Q. Collectives may not manufacture concentrated Medicinal Cannabis products by 440 means of any pressurized gas or flammable solvent whether volatile or non-volatile. 441 442 12.22.130 Operating standards for Collectives 443 Collectives must comply with the following provisions of this Chapter. 444 A. Membership. 445 1. No person other than a Member may cultivate Medicinal Cannabis on behalf of 446 a Collective. 447 2. The scale of cultivation by or on behalf of a Collective shall be proportional to its 448 Membership. 449 3. No physician recommendations for Medicinal Cannabis may be provided on 450 site. 451 4. All prospective members must be advised in writing, prior to accession to 452 membership, as follows:

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453 "WARNING: Cannabis is not tested by local, state or federal governmental agencies 454 for health, safety, or efficacy. There may be health risks associated with the 455 consumption of Cannabis or Cannabis Products." 456 B. Collectives shall take all practicable steps necessary to prevent and deter diversion 457 of Medicinal Cannabis to non-Members. Collectives must limit access to Medicinal 458 Cannabis to authorized personnel only, and must maintain an inventory management 459 system that: 460 1. Accounts for all Medicinal Cannabis dispensed to Members; 461 2. Tracks each Batch of Medicinal Cannabis cultivated by the Collective, including 462 each Batch’s approximate content of Active Ingredients and Cannabis By-Products 463 as a percentage of weight; 464 3. Retains all information listed in paragraphs 1 and 2 above for a period of at least 465 one year; and 466 4. Is capable of producing a summary showing the information necessary to verify 467 non-diversion. 468 C. Dispensing. 469 1. Collectives may not dispense to any person who is not a Member and may not 470 dispense without first verifying membership. 471 2. Collectives may not provide more Medicinal Cannabis for a Member than is 472 necessary for the personal medical use of the Qualified Patient for whom the 473 Medicinal Cannabis is intended, and may not dispense more than one ounce of 474 dried Medicinal Cannabis per day per Qualified Patient provided that: 475 a. if a Qualified Patient has a physician’s recommendation that this quantity 476 does not meet his or her medical needs, the Qualified Patient or his or her 477 Primary Caregiver may possess, and the Collective may dispense to him or her, 478 an amount of Medicinal Cannabis consistent with those needs; 479 b. a Collective may provide more than one ounce of dried Medical Cannabis if 480 the excess amount is low concentration Medicinal Cannabis that would not 481 normally be sold for consumption and is only used for preparation of Medicinal 482 Cannabis Products or Edibles by a Member; or 483 c. a Qualified Patient needs a greater quantity due to a planned absence from 484 the area. 485 3. Collectives may not distribute free samples outside of the Collectives’ premises. 486 4. If a Member has an identification card issued pursuant to Health & Safety Code 487 Section 11362.71 or 11362.735, Collective shall use the number from that card to 488 ensure compliance with this subdivision. 489 D. Finances. 490 1. Collectives shall operate on a Not-for-Profit basis. Sale of Medicinal Cannabis to 491 cover anything other than reasonable compensation and reasonable out-of-pocket 492 expenses is explicitly prohibited. To the extent they provide goods or services not 493 related to Medicinal Cannabis, Collectives need not operate on a Not-For-Profit 494 basis. 495 2. Collectives with more than 25 members shall make their financial records 496 available to the City on an annual basis. Such audited records shall be limited to 497 information necessary for the City to determine the not-for-profit status of the 498 organization and shall include information on staff/principal compensation.

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499 E. Operations. Collectives shall maintain the following information and make it 500 available to the City within 30 days of the end of each calendar year. 501 1. The total number of members during the year; 502 2. The total amount of revenue collected during the year; 503 3. The consideration paid for each Batch; 504 4. Monetary and non-monetary contributions from Members; 505 5. Total monetary and non-monetary distributions to Members other than Medicinal 506 Cannabis Products or Edibles dispensed for monetary consideration; 507 6. Salaries and overhead; and 508 7. A complete list of the types of Medicinal Cannabis, Medicinal Cannabis 509 Products and Edibles available, and the prices thereof. 510 F. Confidentiality. Collectives shall comply with the following provisions of this 511 Section to the extent applicable: 512 1. The City’s review of information submitted or maintained pursuant to this Chapter 513 shall preserve the confidentiality of all information about Principals and Members to 514 the maximum extent consistent with state and local law. The City shall incur no 515 liability for the inadvertent or negligent disclosure of such information. Disclosure of 516 any Principal or Member information to the City for purposes of this Chapter shall not 517 be deemed a waiver of confidentiality. Financial information provided to the City 518 pursuant to Section 12.27.090 shall be deemed to be "financial information" covered 519 by Chapter 7.26. 520 2. The information required by Section 12.27.040 and recordings from security 521 cameras, shall be confidential and shall not be subject to public inspection or 522 disclosure except to City employees for purposes of law enforcement. 523 3. In order to protect confidentiality, Collectives shall not collect or maintain 524 Protected Health Information. Collectives shall maintain membership records and 525 information about members in a manner that ensures that the information will not be 526 disclosed except as required by this Chapter or other laws. If a Collective maintains 527 information conveyed by a Member to a Collective regarding such Member’s medical 528 condition, information conveyed by a Member to a Collective regarding efforts to 529 ameliorate or otherwise address symptoms associated with such Member’s medical 530 condition, or information regarding Medicinal Cannabis, Medicinal Cannabis 531 Products and/or Edibles provided to a Member, such information shall be kept in a 532 manner that is in compliance with the Confidentiality of Medical Information Act. 533 Membership lists shall be available to City employees charged with the 534 administration of this Chapter for inspection on site without a warrant during 535 business hours or by appointment. 536 G. Before it may obtain a business license pursuant as required by Chapter 9.04, a 537 Collective must obtain an inspection from the City or authorized City representative that 538 any cultivation or processing of Medical Cannabis that it intends to undertake at a given 539 site will not pose a fire hazard. 540 541 12.22.140 Product Safety and Quality Assurance for Collectives 542 Collectives with more than 25 members shall test all Medicinal Cannabis and Medicinal 543 Cannabis Products, and specified compounds shall be quantitated, as set forth in this 544 Section.

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545 A. The following compounds shall be quantitated as set forth in the following table, 546 using equipment and methodologies with limits of detection for all compounds no 547 greater than 0.1% by weight, or 1 mg/g. Constituent Equipment/Methodology THCA HPLC1, or GC2 with derivatization or other THC methodology approved by a state or the federal government as meeting a limit of CBDA quantitation of 0.1% by weight CBD CBN 1 High-performance liquid chromatography 2 Gas chromatography 548 549 B. The quantitative information required by subdivision A shall be printed on labels for 550 all Medicinal Cannabis as set forth in the following table. Product type Label information Cannabis (flowers, leaf and concentrates, % by weight and mg/g including water processed concentrates) Edibles (other than beverages) mg/package or mg/serving if applicable; nutritional and allergen information as required by the CDPH for cottage foods Capsules/pills mg/capsule Oils, butters, tinctures (for internal weight/volume consumption) mg/g Topicals (external application) mg/g or mg/mL, as applicable Beverages mg/container and mg/serving, if applicable; nutritional and allergen information as required by the CDPH for cottage foods. 551 552 C. Medicinal Cannabis shall be tested for contaminants as set forth in the following 553 table. Medicinal Cannabis that contains more than the permissible levels may not be 554 provided to any Member or any other person, and shall either be destroyed or returned 555 to their source(s) at the option of the owner. Testing Contaminant Permissible amount methodology EPA-controlled Any methodology that the City 100 ppb (total of all quantitated pesticides)3 pesticides commonly determines is sufficiently used in cannabis sensitive to determine that the cultivation permissible amount has not been exceeded using EPA- or FDA-accepted methodologies

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Testing Contaminant Permissible amount methodology for pesticides, including, not limited to GC/LC-MS1, Elisa2 Microbiological Any methodology • APC4 < 100,000 CFUs5 contaminants approved by any • Yeast/Mold = APC<10,000 CFUs U.S. or recognized international • Coliform ≤ 1,000 CFUs standards • Pseudomonas ≤ 1,000 CFUs6 organizations • Salmonella = 0 CFU • E. coli = 0 CFU Residual flammable Head space analysis 400 ppm (total of all solvents)7 solvents (concentrates only) 1 Gas chromatography-mass spectrometry 2 Enzyme-linked immunosorbent assay. ELISA may be used to screen for test failures only. Negative/passing results must be verified by GC/LC-MS. 3 Parts per billion 4 Aerobic plate count 5 Colony-forming unit 6 This limit shall apply as of July 1, 2016. Prior to that date, the limit for Pseudomonas shall be 10,000 CFU. 7 Parts per million 556 557 D. Baked goods, such as cookies and brownies, shall be exempt from testing for 558 contaminants. These products remain subject to testing for potency, as required for the 559 label information of this Section, and must use Medicinal Cannabis that has been tested 560 for contaminants. 561 E. Collectives shall maintain a written or computerized log documenting: 562 1. the date, type, and amount of Product tested; 563 2. the source(s) of any contaminated Medicinal Cannabis; 564 3. the report containing the results of the testing, including the name and level of 565 the substance detected; and 566 4. the disposition of the Medicinal Cannabis from which the contaminated sample 567 was obtained, including the amount and the date and manner of disposition. 568 Such logs shall be maintained for at least one year and made available to the City 569 upon request. 570 F. Packaging and Labeling for Medicinal Cannabis. 571 1. Medicinal Cannabis that is made available to members shall be contained in 572 packaging that bears labels containing the following information, in addition to any 573 other information that a Collective may choose to provide or that may be required by 574 law: 575 a. the name and contact information for the Collective; 576 b. the weight;

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577 c. the quantity of compounds as set forth in subdivision B; 578 d. the date of manufacture or production; and 579 e. a complete list of ingredients. 580 G. Collectives with more than 25 members will be subject to the following regulations 581 for Preparation, Packaging and Labeling of Edibles. 582 1. Edibles. Edibles shall be limited to those items approved in the California 583 Homemade Food Act, Chapter 6.1 (commencing with Section 51035) of Part 1 of 584 Division 1 of Title 5 of the Government Code. 585 2. Compliance with State Food Safety Requirements. A Collective that prepares, 586 dispenses, or in any manner distributes Edible Medical Cannabis Products must 587 comply with the relevant provisions of all State and local laws specified by the City 588 Manager regarding the preparation, distribution, labeling and sale of food, even if 589 those laws are not directly applicable to Edibles. 590 3. Preparation of Edibles. 591 a. Individuals involved in the production or distribution of Edibles containing 592 Medicinal Cannabis shall thoroughly wash their hands before commencing 593 production and before handling the finished product. Gloves must be worn when 594 packaging edible products containing Medicinal Cannabis. 595 b. In order to reduce the likelihood of foodborne disease transmission, 596 individuals who are suffering from symptoms associated with acute 597 gastrointestinal illness or are known to be infected with a communicable disease 598 that is transmissible through foodstuffs are prohibited from preparing edible 599 products containing Medicinal Cannabis until they are free of that illness or 600 disease, or are incapable of transmitting the illness or disease through foodstuffs. 601 Individuals who have sores or cuts on their hands must use gloves when 602 preparing and handling edible products containing Medicinal Cannabis. 603 c. Edibles that are produced at a Collective may only be prepared by a Member 604 of that Collective. 605 d. Certified Food Handler. A Member who produces Edible Medicinal Cannabis 606 Products must be a State certified food handler. The valid certificate number of 607 such Members must be on record at each Collective where the edible product is 608 distributed, and a copy of the certificate kept either on-site, or made available 609 during inspections if kept off-site. 610 4. Packaging of Edibles. 611 a. All Edibles shall be individually wrapped at the original point of preparation. A 612 label indicating the nature of the product shall be distinctly and clearly legible on 613 the front of the package. Additional label information must include: (i) a warning if 614 nuts or other known allergens are used; (ii) a warning that the item is a 615 medication containing Medicinal Cannabis and the total weight (in ounces or 616 grams) and amount of Active Ingredients in the package; (iii) the date of 617 manufacture; (iv) a statement that the contents are not a food product; and (v) 618 information indicating any caloric impact on the patient. The package label must 619 have a warning clearly legible emphasizing that the product is to be kept away 620 from children.

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621 b. Labels of Edibles that are not tested for contaminants (baked goods) shall 622 include a statement that the cannabis used in the product was tested for 623 contaminants. 624 c. Packaging of Edibles shall be opaque, and may not make it appear as if the 625 Edible is a food product. Packaging that makes the product attractive to children 626 or imitates candy is not allowed. 627 d. Packaging of edibles shall be tamper-evident. 628 5. Producers of Edibles that are not tested for contaminants shall maintain a written 629 or computerized log documenting: 630 a. The source of the cannabis used in each batch of product; 631 b. The contaminant testing date; and 632 c. The testing facility for the cannabis. 633 H. This Section shall apply only to Collectives. 634 635 12.22.150 Fees. 636 The City Council may establish by resolution the fees that shall be charged for 637 administration and implementation of this Chapter. The adoption of such fees shall not 638 prevent the City from recovering enforcement costs not specified in such resolution. 639 640 12.22.160 Authority of City Manager 641 A. The City Manager or his or her designee shall have authority to determine the nature 642 of any Cannabis Business or purported Cannabis Business and whether that entity 643 complies with any of the requirements of this Chapter, Chapters 12.21 and 12.26, and 644 Title 23, and to conduct inspections as provided in Chapter 1.16. 645 B. The City Manager or his or her designee may promulgate regulations for the 646 administration and implementation of this Chapter, including, but not limited to, 647 regulations relating to non-diversion, record-keeping, and tracking and tracing 648 Cannabis. 649 C. The City Manager or his or her designee may require any Cannabis Business to 650 obtain operating permits from the City of Berkeley Fire Department, Toxics 651 Management Division, Environmental Health Division, or any other department or 652 division. 653 D. The City Manager or his or her designee shall have authority to enter onto private 654 property and perform such inspections as may be necessary or convenient to 655 implement and enforce this Chapter, Chapters 12.21 and 12.26, and Title 23, and to 656 adopt regulations to implement this Chapter, Chapters 12.21 and 12.26, and Title 23. 657 E. The City Manager or his or her designee may promulgate regulations for the 658 selection of Retailers, Cultivators, and other Cannabis Businesses that require a 659 selection process. 660 661 12.22.170 Severability 662 If any word, phrase, sentence, part, section, subsection, or other portion of this Chapter, 663 or any application thereof to any person or circumstance is declared void, 664 unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, 665 section, subsection, or other portion, or the prescribed application thereof, shall be 666 severable, and the remaining provisions of this Chapter, and all applications thereof, not

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667 having been declared void, unconstitutional or invalid, shall remain in full force and 668 effect. The City Council hereby declares that it would have passed this title, and each 669 section, subsection, sentence, clause and phrase thereof, irrespective of the fact that 670 any one or more sections, subsections, sentences, clauses or phrases had been 671 declared invalid or unconstitutional. 672 673 12.22.180 Reserved

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1 2 3 Chapter 20.XX 4 CANNABIS PRODUCT ADVERTISING 5 6 Sections: 7 20.XX.010 Purpose. 8 20.XX.020 Definitions. 9 20.XX.030 Cannabis product advertising prohibited. 10 20.XX.040 Exceptions. 11 20.XX.050 Violations deemed a public nuisance. 12 20.XX.060 Enforcement. 13 20.XX.070 Reinspection fee. 14 20.XX.080 Exemptions. 15 20.XX.090 and several liability. 16 20.XX.100 Severability. 17 18 20.XX.010 Purpose. 19 The primary purpose of this chapter is to promote the general welfare and reduce illegal 20 purchase and consumption of cannabis or cannabis products by persons under the age of 21, 21 which is accomplished by limiting the exposure of persons under the age of 21 to cannabis 22 product advertising. 23 24 20.XX.020 Definitions. 25 26 “Cannabis” and “Cannabis Products” shall have the same meaning as set forth in Berkeley 27 Municipal Code Section 12.21.020. 28 29 "Cannabis product advertising" means any billboard, sign, poster, placard, device, graphic 30 display, or other item which promotes or is designed to promote the sale, use or consumption 31 of a particular brand of cannabis or cannabis products, but shall not mean any advertising on 32 the packaging of the product itself.

33 "Owner or operator" includes the owner of the property at which the advertising subject to this 34 chapter is located, the owner of any billboard or other structure on which cannabis product 35 advertising is located, as well as the operator of any commercial or other establishment at that 36 location. 37 38 "Person" means any individual, firm corporation, partnership, cooperative association, receiver, 39 trustee, assignee public or private entity, or other legal entity. 40 41 "Publicly visible location" means any outdoor location and any window of a commercial 42 establishment that is visible to the public from any street sidewalk, or other public thoroughfare. 43 This shall not be construed to include the inside of any commercial establishment, with the 44 exception of its windows. 45

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46 20.XX.030 Cannabis product advertising prohibited. 47 No person shall place or maintain, or cause or allow to be placed or maintained any cannabis 48 product advertising in any publicly visible location. 49 50 20.XX.040 Exceptions. 51 This chapter shall not apply to cannabis product advertising which is: 52 53 A. Inside any commercial establishment, except that no cannabis product advertising may be 54 placed in a publicly visible location inside any commercial establishment. 55 56 B. On commercial vehicles used for transporting cannabis products. 57 58 20.XX.050 Violations deemed a public nuisance. 59 Any violation of the provisions of this chapter is declared to be a public nuisance. The 60 procedures for the abatement of such nuisances shall be governed by Berkeley Municipal 61 Code Chapter 1.24 as may hereafter be amended. 62 63 20.XX.060 Enforcement. 64 A. Infraction. Any person violating any provision or failing to comply with any requirement of 65 this chapter shall be deemed guilty of an infraction as set forth in Chapter 1.20 of this code. 66 67 1. Each separate display of cannabis product advertising in violation of this chapter is 68 deemed to be a separate offense. 69 70 2. Each day an item of cannabis product advertising remains in violation of this 71 chapter is deemed to be a separate offense. 72 73 B. Civil Action. In addition to any other remedy provided by this chapter, any violation of this 74 chapter may be enforced by a civil action brought by the City or any other interested person. 75 The City or any other interested person may seek and the court shall grant as appropriate: 76 77 1. Injunctive relief, both temporary and permanent; 78 79 2. Reasonable attorney fees and costs of suit. 80 81 C. Remedies Not Exclusive. Nothing in this chapter shall preclude the City from seeking any 82 other remedy provided by law. 83 84 20.XX.070 Reinspection fee. 85 The City Council may adopt a resolution establishing a fee which must be paid by the owner or 86 operator of a specified location whenever the City Manager, or his or her designee, determines upon 87 reinspection that a person has failed to comply with any orders, notices or directions issued by the 88 City under this chapter. 89 90 20.XX.080 Exemptions.

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91 This chapter shall apply to all existing cannabis product advertising in violation of this chapter 92 unless the owners or operators of the location at which such advertising is located provide 93 written documentation to the City Manager, or his or her designee, within thirty days from the 94 effective date of the ordinance codified in this chapter that this chapter unreasonably interferes 95 with any contracts executed before the date of adoption of said ordinance.

96 A. Failure to provide such timely, written documentation shall be deemed a waiver of 97 the right to seek an exemption. 98 99 B. The City Manager is authorized to grant an exemption from enforcement of this chapter 100 for up to 6 months from the date of adoption. The decision of the City Manager with respect 101 to such exemption is final.) 102 103 20.XX.090 Joint and several liability. 104 The advertiser, the property owner and any operator of any location at which prohibited 105 cannabis product advertising exists shall be jointly and severally liable for violations of this 106 chapter.

107 20.XX.100 Severability

108 If any word, phrase, sentence, part, section, subsection, or other portion of this Chapter, or any 109 application thereof to any person or circumstance is declared void, unconstitutional, or invalid 110 for any reason, then such word, phrase, sentence, part, section, subsection, or other portion, or 111 the prescribed application thereof, shall be severable, and the remaining provisions of this 112 Chapter, and all applications thereof, not having been declared void, unconstitutional or invalid, 113 shall remain in full force and effect. The City Council hereby declares that it would have passed 114 this title, and each section, subsection, sentence, clause and phrase thereof, irrespective of the 115 fact that any one or more sections, subsections, sentences, clauses or phrases had been 116 declared invalid or unconstitutional.

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1 Chapter 12.23 will be deleted. Many of the Sections/Subsections will be modified and divided 2 between 12.21 and 12.22. See comments to determine the new location of information 3 contained within Sections/Subsections.

4 Chapter 12.23 5 MEDICAL CANNABIS GENERAL REGULATIONS 6 7 Sections: 8 12.23.010 Purpose and Applicability 9 12.23.020 Definitions 10 12.23.030 Operating Standards--Membership--Eligibility 11 12.23.040 Authority of City Manager 12 12.23.050 Abatement of violations 13 12.23.060 Severability 14 15 12.23.010 Purpose and Applicability Commented [SS1]: See 12.21.010 16 The purpose of this Chapter is to collect in one location in this Code all of the definitions 17 and general operating standards applicable to Medical Cannabis Organizations. (Ord. 18 7530-NS § 1 (part), 2017) 19 20 12.23.020 Definitions Commented [SS2]: See 12.21.020 21 A. "Active Ingredients" means, in the case of dried cannabis flowers, extractions or 22 infusions, delta-9- tetrahydrocannabinolic acid, delta-9-tetrahydrocannabinol, 23 cannabidiolic acid, cannabidiol, and any cannabinoid or propyl cannabinoid derivative 24 when present in amounts greater that .5% by dry weight, and any mono- or 25 sesquiterpenoid present in an amount exceeding .3% of a product’s dry weight. 26 27 B. "Batch" means a specific quantity of medical cannabis or medical cannabis products 28 that is intended to have uniform character and quality, within specified limits, and is 29 produced according to a single manufacturing order during the same cycle of 30 manufacture or is from the same crop grown in the same location and harvested in the 31 same manner and at the same time. Commented [SS3]: See 12.21.020.E 32 33 C. "Cannabis" shall have the same meaning as the definition of "Marijuana" provided in 34 California Health and Safety Code Section 11018 at this time, but if that definition is 35 amended by state law in the future, as amended. Currently, under Health and Safety 36 Code Section 11018, "marijuana means all parts of the plant L., 37 whether growing or not; the seeds thereof; the resin extracted from any part of the plant; 38 and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, 39 its seeds or resin. It does not include the mature stalks of the plant, fiber produced from 40 the stalks, oil or cake made from the seeds of the plant, any other compound, 41 manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the 42 resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is 43 incapable of germination." Commented [SS4]: See 12.21.020.F 44 45 D. "Cannabis By-Products" means delta-8-THC and cannabinol when present in

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46 amounts greater than .2% of a product’s dry weight. 47 48 E. "Compound(s)" means any or all of the following chemicals, as the context requires: Commented [SS5]: See 12.21.020.I 49 50 1. "THC" or "Δ9-THC" means Δ9-tetrahydrocannabinol, (Δ)-(6aR,10aR)-6,6,9- 51 trimethyl-3-pentyl-6a,7,8,10a- tetrahydro-6H-benzo[c]chromen-1-ol. 52 53 2. "THCA" or "Δ9-THCA" means the acid form of THC. 54 55 3. "CBD" or "Cannabidiol" means 2-[(1R,6R)-6-isopropenyl-3-methylcyclohex-2-en- 56 1-yl]-5-pentylbenzene-1,3- diol. 57 58 4. "CBDA" or "Cannabidiolic acid" means the acid form of CBD. 59 60 5. "CBN" or "Cannabinol" means 6,6,9-trimethyl-3-pentyl-benzo[c]chromen-1-ol. 61 62 F. "Concentrate" means any oil or butter into which any Compound has been infused or 63 otherwise dissolved. Commented [SS6]: See 12.21.020.N 64 65 G. "Contaminant" means any pesticide, residual solvent or microbiological organism or 66 product thereof. Commented [SS7]: See 12.21.020.O 67 68 H. "Cultivate” and “Cultivation" mean any activity involving the planting, growing, 69 harvesting, drying, curing, grading or trimming of cannabis. 70 71 I. Medical Cannabis. Commented [SS8]: See 12.21.020.W 72 73 1. "Medical Cannabis" means Cannabis in any form, whether for inhalation, topical 74 application, oral ingestion, or any other form, that is intended or used for medicinal 75 purposes in compliance with state law. 76 77 2. "Medical Cannabis Product" is any non-edible product that contains Medical 78 Cannabis. 79 80 3. "Edible Medical Cannabis Product" (or "Edible") is edible product that contains 81 Medical Cannabis. Edible Medical Cannabis Products shall not be considered food 82 for purposes of implementation of the California Retail Food Code (Health & Safety 83 Code §§ 113700 et. seq.) or the California Sherman Food and Drug and Cosmetic 84 Act (Health & Safety Code §§ 109875 et. seq.). 85 86 J. "Medical cannabis collective" or "Collective" shall mean an affiliation, association, or 87 collective of persons comprised exclusively and entirely of qualified patients and the 88 primary caregivers of those patients, the purpose of which is to collectively provide for 89 or assist in the cultivation and distribution of Medical Cannabis to its members. 90 Collectives may have more than one location. Each location of a Collective shall be 91 subject to the applicable regulations in Chapter 12.27.120. Medical cannabis collectives

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92 shall not be located in commercial or manufacturing zoning districts, and shall only be 93 allowed in residential zoning districts, and only to the extent they are incidental to a 94 lawfully established residential use in a building located completely within a residential 95 zoning district. A Collective may be organized as any statutory business entity permitted 96 under California law, provided it operates in a Not-For- Profit manner as defined in 97 Chapter 12.27. Commented [SS9]: See 12.21.020.M 98 99 K. Dispensary. 100 101 1. "Dispensary" means both Retail Dispensaries and Delivery-Only Dispensaries. 102 103 2. "Retail Dispensary" shall mean an organization that is authorized under Chapter 104 12.27 and Title 23 to dispense Medical Cannabis at a non-residential location. A 105 Dispensary may also provide other incidental services to its Members to the extent 106 permitted by state law, such as cultivating, acquiring, baking, storing, processing, 107 testing, transporting and delivering Medical Cannabis. In dispensing Medical 108 Cannabis to its Members, a Dispensary may be reimbursed for the cost of its 109 services and materials. A Dispensary may be organized as any statutory business 110 entity permitted under California law, provided it operates in a Not-For- Profit manner 111 as defined in Chapter 12.27. 112 113 3. "Delivery-Only Dispensary" is a Dispensary that is limited to acquiring Medical 114 Cannabis and delivering it to its Members, and does not have a location to which 115 Members may come to acquire Medical Cannabis or any other good or service. Commented [SS10]: See 12.21.020.DD “Retailer” 116 117 L. "Medical Cannabis Organization" or "MCO" includes Collectives, Dispensaries and 118 Medical Cannabis Cultivation Businesses. 119 120 M.K. "Medical Cannabis Cultivation Business" or "Cultivation Business" means a 121 Medical Cannabis Organization whose primary activity is Cultivation. 122 123 N.L. "Medical Cannabis Cultivation Facility" or "Facility" means a building or other 124 location where Medical Cannabis is cultivated. Commented [SS11]: See 12.21.020.J 125 126 O. "Member" means a qualified patient or primary caregiver as defined in California law 127 who is also a member of a Medical Cannabis Organization pursuant to its rules and 128 consistent with California law. 129 130 P. "Not-for-Profit" means that an MCO receives compensation only for the reasonable 131 costs of its operation, including reasonable compensation for products and services 132 provided to Members to enable them to use Medical Cannabis pursuant to Health and 133 Safety Code Sections 11362.7 et seq.; reasonable compensation for employees; 134 reasonable out-of-pocket expenses incurred in providing those products or services, or 135 both. Reasonable out-of- pocket expenses may include, but are not necessarily limited 136 to, reasonable expenses for Member services and education, rent or mortgage, utilities, 137 construction, furniture, maintenance, analytic testing, security, professional service

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138 costs, regulatory compliance costs, debt service, and reserves. 139 140 Q.M. "Primary caregiver" shall have the same meaning as provided in California 141 Health and Safety Code Section 11362.7. Commented [SS12]: See 12.21.020.Z 142 143 R.N. "Principal" means any person that has direct or non-delegated indirect authority 144 over the management or policies of an MCO. Commented [SS13]: See 12.21.020.AA 145 146 S.O. "Protected Health Information" means documentation of a Member’s medical 147 history or condition other than a physician’s recommendation, an identification card 148 issued pursuant to Health and Safety Code Section 11362.7 et seq., or the written 149 designation of a primary caregiver by a qualified patient or identification card holder. 150 Protected Health Information shall not include information conveyed by a Member to a 151 Dispensary regarding such Member’s medical condition, information conveyed by a 152 Member to a Dispensary regarding efforts to ameliorate or otherwise address symptoms 153 associated with such Member’s medical condition, or information regarding Cannabis or 154 Medical Cannabis Products provided to a Member. Commented [SS14]: See 12.21.020.BB 155 156 T.P. "Solvent" means any substance in which another substance is dissolved, forming 157 a solution. 158 159 U.Q. "Tincture" means an extract of Cannabis or solution of such, typically made with 160 alcohol. Commented [SS15]: See 12.21.020.FF 161 162 V.R. "Qualified patient" shall have the same meaning as provided in California Health 163 and Safety Code Section 11362.7. (Ord. 7530-NS § 1 (part), 2017) Commented [SS16]: See 12.21.020.CC 164 165 12.23.030 Operating Standards--Membership--Eligibility Commented [SS17]: See 12.21.040 166 A. MCOs shall comply with Health and Safety Code Sections 11362.7 et seq. and any 167 other state laws that may be adopted concerning Medical Cannabis, including but not 168 limited to Chapter 3.5 of Division 8 of the Business and Professions Code, and 169 Chapters 12.26, 12.27 and 12.25 and Title 23 of the Berkeley Municipal Code, and any 170 other applicable City laws or regulations, and shall pay all applicable state or local 171 taxes. To the extent the requirements of this Chapter and Chapters 12.26, 12.27 and 172 12.25 are more restrictive than state law, they shall apply. To the extent the 173 requirements of this Chapter and Chapters 12.26, 12.27 and 12.25 are less restrictive 174 than state law, the requirements of state law shall apply. 175 176 B. MCOs may consist only of Members. Commented [SS18]: See 12.21.040.B 177 178 C. MCOs may only obtain Medical Cannabis from, and supply Medical Cannabis to, 179 their Members, except as provided by state law. 180 181 D. MCOs may not admit any person as a Member without first verifying his or her status 182 as a qualified patient or primary caregiver as defined by state law, and shall immediately 183 cancel the membership of any person who diverts Medical Cannabis for non-medical

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184 use or in any manner not permitted by this Chapter, Chapter 12.26 or California law. 185 186 E. Physicians' recommendations shall be verified prior to granting membership and at 187 least every twelve (12) months thereafter, and a physical or digital record shall be kept 188 of such verification. No Medical Cannabis may be dispensed except to a Member and 189 pursuant to a recommendation that is no more than twelve (12) months old, unless the 190 recommendation expressly states that it has a longer term or does not expire. 191 192 F. Except as may be provided in Chapter 12.27 or 12.25, no person may be allowed to 193 have any position with an MCO other than that of Member if he or she has been 194 convicted of: 195 196 1. homicide; 197 198 2. within the preceding 10 years, any serious or violent felony listed in Penal Code 199 Section 1192.7(c) or Section 667.5(c); 200 201 3. within the preceding 10 years, any violation of Penal Code Sections 243 through 202 247, except for subdivision (a) of Section 243; 203 204 4. within the preceding 10 years, any offense under Section 11361 or Articles 1, 3, 205 206 5. within the preceding 5 years any felony violation of Health and Safety Code 207 Section 11358, Section 11359 or Section 11360. 208 209 G. An MCO may only be operated by a Collective, and shall operate in a Not-for-Profit 210 manner. 211 212 H. All MCOs shall maintain contemporaneous financial and operational records 213 sufficient to show compliance with this Chapter and Chapters 12.26, 12.27 and 12.25, 214 and state law governing medical cannabis, which records shall be subject to inspection 215 by the City. Such records shall protect the confidentiality of Members. (Ord. 7530-NS § 216 1 (part), 2017) 217 218 12.23.040 Authority of City Manager Commented [SS19]: See 12.21.080 219 A. The City Manager or his or her designee shall have authority to determine the nature 220 of any MCO or purported MCO and whether that MCO complies with any of the 221 requirements of this Chapter or Chapters 12.26, 12.27 or 12.25, and to conduct 222 inspections as provided in Chapter 1.16. 223 224 B. The City Manager or his or her designee may issue regulations to implement this 225 Chapter and Chapters 12.26,12.27 and 12.25. 226 227 C. The City Manager or his or her designee shall have authority to enter onto private 228 property and perform such inspections as may be necessary or convenient to 229 implement and enforce this Chapter, and to adopt regulations to implement this Chapter

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230 or Chapters 12.26, 12.27 or 12.25. (Ord. 7530-NS § 1 (part), 2017) 231 232 12.23.050 Abatement of violations Commented [SS20]: See 12.21.090 233 A. Violations of this Chapter or Chapters 12.26, 12.27 or 12.25 shall constitute a public 234 nuisance under Chapter 235 1.26. The City may enforce this Chapter through proceedings under Chapter 1.24, 236 Chapter 1.28, Chapter 23B.64 and any other law or ordinances it deems appropriate. 237 238 B. Notwithstanding anything to the contrary, violations of this Chapter or Chapters 12.26, 239 12.27 or 12.25 shall not be punishable as public offenses to the extent that doing so would 240 conflict with state law. (Ord. 7530-NS § 1 (part), 2017) 241 242 12.23.060 Severability Commented [SS21]: See 12.21.110 243 If any word, phrase, sentence, part, section, subsection, or other portion of this Chapter, 244 or any application thereof to any person or circumstance is declared void, 245 unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, 246 section, subsection, or other portion, or the prescribed application thereof, shall be 247 severable, and the remaining provisions of this Chapter, and all applications thereof, not 248 having been declared void, unconstitutional or invalid, shall remain in full force and 249 effect. The City Council hereby declares that it would have passed this title, and 250 each section, subsection, sentence, clause and phrase thereof, irrespective of the fact 251 that any one or more sections, subsections, sentences, clauses or phrases had been 252 declared invalid or unconstitutional. (Ord. 7530-NS § 1 (part), 2017) 253

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Chapter 12.25 will be deleted. Many of the Sections/Subsections will be modified and divided between 12.21 and 12.22. See comments to determine the new location of information contained within Sections/Subsections. 1

2 Chapter 12.25

3 MEDICAL CANNABIS CULTIVATION

4 Sections:

5 Article I General

6 12.25.010 Applicability 7 12.25.020 Reserved 8 Article II Medical Cannabis Cultivation Businesses and Facilities

9 12.25.030 Eligibility requirements 10 12.25.040 Information requirements 11 12.25.050 Operating Standards 12 12.25.060 Signage 13 12.25.070 Product Safety, Quality Assurance and Labeling 14 12.25.080 Energy use 15 12.25.090 Records 16 12.25.100 Ranking and allocation procedure and criteria 17 12.25.110 Confidentiality of information 18 Article III Enforcement

19 12.25.120 Authority of City Manager 20 12.25.130 Abatement of violations 21 12.25.140 Fees 22 12.25.150 Severability 23 12.25.160 Severability

24 12.25.010 Applicability 25 This Chapter applies to Medical Cannabis Cultivation. (Ord. 7529-NS § 1 (part), 26 2017)

27 12.25.020 Reserved 28 (Ord. 7529-NS § 1 (part), 2017)

29 12.25.030 Eligibility requirements Commented [GE1]: See 12.22.030.A 30 A. No Principal of any Cultivation Business may be a Principal for any other 31 Cultivation Business in Berkeley. (Ord. 7529-NS § 1 (part), 2017)

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32 12.25.040 Information requirements Commented [GE2]: See 12.21.030 33 Every Cultivation Business shall provide the following information to the City, and 34 shall update it annually and whenever there is any material change. 35 A. A description of each Facility operated by the Cultivation Business and its 36 location, which shall include such information as the City may require that demonstrates 37 compliance with applicable provisions of this Chapter. 38 B. The name, address and 24-hour contact information for each Principal, including 39 a photocopy of at least one primary form of photo identification, such as a California 40 Drivers License or US Passport. This information shall also include any aliases, maiden 41 or married names or other former legal names. 42 C. Proof of each Principal’s status as a qualified patient or primary caregiver. 43 D. For each Principal, a signed consent for the City to conduct a background check, 44 including criminal history. 45 E. Proof of the nature of the Cultivation Business’s organizational status, such as 46 articles of incorporation, by-laws, partnership agreements, and other documentation as 47 may be appropriate or required by the City. (Ord. 7529-NS § 1 (part), 2017)

48 12.25.050 Operating Standards 49 A. General operating standards. 50 1. A Principal or designated Member of the Board of a Cultivation Business must be 51 a member of the Dispensary or Collective that the Cultivation Business supplies. 52 2. No physician recommendations for Medical Cannabis may be provided on site. Commented [GE3]: See 12.22.040.H.2 53 B. Non-diversion. Cultivation Businesses shall take all practicable steps necessary 54 to prevent and deter diversion of Medical Cannabis or Medical Cannabis Products to 55 non-Members. Cultivation Businesses must limit access to Medical Cannabis and 56 Medical Cannabis Products to authorized personnel only, and must maintain an 57 inventory management system that: 58 1. Accounts for all Medical Cannabis and Medical Cannabis Products; 59 2. Tracks each Batch of Medical Cannabis and Medical Cannabis Products 60 produced by the Cultivation Business from each Facility, including each Batch’s 61 approximate content of Active Ingredients and Cannabis By-Products as a percentage 62 of weight; 63 3. Retains all information listed in paragraphs 1 and 2 above for a period of at least 64 120 days from production of the Batch; and 65 4. Is capable of producing a summary showing the information necessary to verify 66 non-diversion. Commented [GE4]: See 12.21.030.E and 12.22.130.B 67 C. Product Distribution. 68 Cultivation Businesses may only provide Medical Cannabis or Medical Cannabis 69 Products to other Medical Cannabis Organizations that are permitted by local authorities 70 or permissible under local law. Commented [GE5]: See 12.22.070.C 71 D. Members and employees. 72 All employees and volunteers must be Members who are at least 18 years of age. Commented [GE6]: See 12.21.040.D 73 E. Security. Commented [GE7]: See 12.21.040.F 74 1. Cultivation Businesses shall provide adequate security and lighting at each 75 Facility to ensure the safety of persons and protect the premises from theft at all times. 76 Lighting shall be of sufficient intensity to illuminate all areas of the lot.

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77 2. Cultivation Businesses must maintain security guards and camera coverage of 78 the entire grounds of each Facility to an extent sufficient to ensure the safety of persons 79 and deter crime. Cameras must be maintained in good condition, and use a format 80 approved by the City Manager, which is of adequate quality, color rendition and 81 resolution to allow the ready identification of any individual committing a crime. The 82 cameras shall be in use 24 hours per day, seven (7) days per week. The areas to be 83 covered by the security cameras include, but are not limited to, distribution areas, 84 storage areas, cultivation areas, all doors, parking lots, and any other area determined 85 by the City Manager. Surveillance footage must be retained for a period of 90 days and 86 made available to the Berkeley Police Department for purposes of investigation of 87 alleged crimes, promptly upon request without the necessity of a warrant or subpoena. 88 Retention and maintenance of security camera recordings shall comply with Section 89 12.25.110. 90 3. Facilities must be equipped with an alarm system that is operated and monitored 91 by a security company licensed by and in good standing with the California Department 92 of Consumer Affairs. Alarms shall be maintained and in good working condition at all 93 times. 94 4. In order to prevent unauthorized entry to a Facility during non-business hours, a 95 Business shall either secure all exterior windows and roof hatches from the inside with 96 bars, retractable, folding or sliding metal gates, or metal rollup or accordion doors, or 97 provide at least one security guard during those hours. 98 5. Any security guards employed by Cultivation Businesses shall be licensed and 99 possess a valid Department of Consumer Affairs "Security Guard Card" at all times. 100 Security personnel may not be armed. 101 6. All Medical Cannabis- and, Medical Cannabis Products shall be securely stored 102 at all times, and the entrance to all storage areas shall be locked and under the control 103 of staff. 104 7. Cultivation Businesses shall make transactions with payment methods other than 105 cash whenever feasible. All cash received, except that needed for retail customer 106 transactions shall be kept in a secure receptacle such as a drop safe or other type of 107 safe. 108 F. Neighborhood compatibility. Commented [GE8]: See 12.21.040.G 109 1. Facilities shall be operated in a manner that ensures neighborhood compatibility, 110 and shall take all steps necessary to ensure that they do not create neighborhood 111 disturbances. Such measures shall include, but not be limited to, providing a security 112 guard to patrol the area surrounding the Facility during all hours of operation. 113 2. Facilities shall provide the Police Department and all residents, businesses and 114 property owners within 100 feet with the current name, phone number, secondary 115 phone number and e-mail address of an on-site community relations staff person to 116 whom notice of any operating problems associated with the Facility may be reported. 117 This information shall be updated as necessary to keep it current. Cultivation 118 Businesses shall encourage neighbors to call this person to try to solve any operating 119 problems. 120 3. All Cultivation Businesses shall have an on-site manager at each Facility who is 121 responsible for overall operation at all times that employees are conducting operations, 122 and shall provide the Police Department with contact information for all such persons,

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123 including telephone number and e-mail address. Cultivation Businesses shall also 124 provide the Police Department with the current name and phone numbers of at least 125 one 24-hour-on-call manager. This information shall be updated as necessary to keep it 126 current. 127 4. Cultivation Businesses shall take all reasonable steps to discourage and correct 128 objectionable conditions that constitute a public or private nuisance in parking areas, 129 sidewalks, alleys and areas surrounding a Facility and adjacent properties. Such 130 conditions include, but are not limited to: smoking; creating a noise disturbance; 131 loitering; littering; and graffiti. 132 5. Cultivation Businesses shall ensure all graffiti is removed from property and 133 parking lots under their control within 72 hours of its appearance. 134 G. Dispensing and Consumption of Medical Cannabis, Tobacco and Alcohol. Commented [GE9]: See 12.21.040.H 135 1. Dispensing of Medical Cannabis or Medical Cannabis Products to end users at a 136 Facility is prohibited. Commented [GE10]: Prohibited by State law except by 137 2. Sale or consumption of tobacco is prohibited at Facilities. Retailers 138 3. Sale and/or service of alcoholic beverages at Facilities is prohibited. 139 4. This subdivision does not prohibit the use of non-combustible Medical Cannabis, 140 Medical Cannabis Products or Edibles on the premises of the facility by persons for 141 whom such use is not a crime under California law, for treatment of medical conditions 142 pursuant to a recommendation by a physician. Commented [GE11]: 143 H. Accessibility. Facilities shall comply with all physical accessibility requirements 144 that would be applicable to a newly-constructed building. (Ord. 7529-NS § 1 (part), 145 2017) Commented [GE12]: See 12.22.040.D

146 12.25.060 Signage Commented [GE13]: See 12.21.040.I 147 No signage is required. Signage is discouraged. (Ord. 7529-NS § 1 (part), 2017)

148 12.25.070 Product Safety, Quality Assurance and Labeling Commented [GE14]: These testing requirements will only 149 Medical Cannabis and Medical Cannabis Products shall be tested, and specified apply to Residential Collectives. 150 compounds shall be quantitated, as set forth in this Section. 151 A. The following compounds shall be quantitated as set forth in the following table, 152 using equipment and methodologies with limits of detection for all compounds no 153 greater than 0.1% by weight, or 1 mg/g Commented [GE15]: See 12.22.140.A Constituent Equipment/Methodology THCA HPLC1, or GC2 with derivatization, or other methodology approved by a state or the federal THC government as meeting a limit of quantitation of

0.1% by weight CBDA CBD CBN 1 High-performance liquid chromatography 2 Gas chromatography 154

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155 B. The quantitative information required by subdivision A shall be printed on labels 156 for all Medical Cannabis and Medical Cannabis Products as set forth in the following 157 table. Commented [GE16]: See 12.22.140.B Product type Label information Cannabis (flowers, leaf and concentrates, including % by weight and mg/g water processed concentrates) Capsules/pills mg/capsule Oils, butters, tinctures (for internal consumption) weight/volume mg/g Topicals (external application) mg/g or mg/mL, as applicable 158 159 C. Medical Cannabis and Medical Cannabis Products shall be tested for 160 contaminants as set forth in the following table. Medical Cannabis and Medical 161 Cannabis Products that contain more than the permissible levels may not be provided to 162 any Member or any other person, and shall either be destroyed or returned to their 163 source(s) at the option of the owner. Commented [GE17]: See 12.22.140.C Permissible Contaminant Testing methodology amount EPA-controlled Any methodology that the City determines is 100 ppb (total of pesticides sufficiently sensitive to determine that the all quantitated commonly used permissible amount has not been exceeded, using pesticides)3 in cannabis EPA-or FDA-accepted methodologies for cultivation pesticides, including, not limited to, GC-MS1, Elisa2 Microbiological Any methodology approved by any U.S. or • APC4 < contaminants recognized international standards organization 100,000 CFUs5 • Yeast/Mold = APC<10,000 CFUs • Coliform ≤ 1,000 CFUs • Pseudomonas ≤ 1,000 CFUs6 • Salmonella = 0 CFU • E. coli = 0 CFU Residual Head space analysis 400 ppm (total of flammable all solvents)7 solvents (concentrates only)

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Permissible Contaminant Testing methodology amount 1 Gas chromatography-mass spectrometry 2 Enzyme-linked immunosorbent assay 3 Parts per billion 4 Aerobic plate count 5 Colony-forming unit 6 This limit shall apply as of July 1, 2016. Prior to that date, the limit for Pseudomonas shall be 10,000 CFU. 7 Parts per million 164 165 D. Cultivation Businesses shall maintain a written or computerized log documenting: 166 1. the date, type, and amount of Product tested; 167 2. the source(s) of any contaminated Medical Cannabis or Medical Cannabis 168 Products; 169 3. the report containing the results of the testing, including the name and level of 170 the substance detected; and 171 4. the disposition of the Medical Cannabis or Medical Cannabis Product from which 172 the contaminated sample was obtained, including the amount and the date and manner 173 of disposition. 174 Such logs shall be maintained for at least one year and made available to the City 175 upon request. Commented [GE18]: See 12.22.050.D and 12.22.140.E 176 E. Packaging and Labeling for Medical Cannabis and Medical Cannabis Products. 177 1. Medical Cannabis and Medical Cannabis Products shall be contained in 178 packaging that bears labels containing the following information, in addition to any other 179 information that a Cultivation Business may choose to provide or that may be required 180 by law: 181 a. the name and contact information for the Facility; 182 b. the weight; 183 c. the quantity of compounds as set forth in subdivision B; 184 d. the date of manufacture or production; and 185 e. a complete list of ingredients. Commented [GE19]: See 12.22.140.F 186 2. Scales and weighing mechanisms must be able to weigh to within 1/100th of a 187 gram, shall be maintained in good working order and shall be subject to annual 188 inspection by either the Alameda County Department of Agriculture/Weights and 189 Measures or a licensed scale company. Commented [GE20]: See 12.22.050.F 190 F. This Section shall be deemed repealed and of no further force or effect once 191 testing as set forth in Article 10 of Chapter 3.5 of the Business and Professions Code is 192 available. (Ord. 7529-NS § 1 (part), 2017) Commented [GE21]: See 12.22.050.C

193 12.25.080 Energy use Commented [GE22]: See 12.22.070.D 194 A. Facility may not be approved unless it includes all feasible (under the current 195 Title 24, Part 6) cost-effective water and energy efficiency measures, including but not 196 limited to natural daylighting, high efficiency lighting, networked lighting and mechanical 197 controls, and natural cooling.

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198 B. Additionally, the following systems should be included as feasible: on-site 199 renewable energy generation; energy storage batteries; water collection, filtration and 200 reuse; and rainwater harvesting. 201 C. The application for a Facility shall include a description of all energy and water 202 systems, measures employed to maximize efficient resource use, and the following 203 metrics, with supporting documentation: 204 1. Planned lighting power density (watts/sf) 205 2. Planned lighting Energy Utilization Index (kBtu/sf/year) 206 3. Planned total site Energy Utilization Index (kBtu/sf/year) 207 4. Planned potable water consumption (gallons/sf/year) 208 D. A Cultivation Business shall mitigate the carbon dioxide emissions caused by the 209 generation of electrical energy delivered to its Facility by participating in East Bay 210 Community Energy EBCE) 100% renewable content option for electricity or equivalent. 211 Until businesses have the option to purchase power through EBCE, the offset will be 212 achieved through purchase of renewable energy certificates certified by the Center for 213 Resource Solutions. 214 E. If a Facility uses natural gas to generate electricity for consumption at the site, 215 the Cultivation Business shall offset the carbon content of all electrical energy delivered 216 to the Facility by participating in a program that is included in one of the Offset Project 217 Registries approved by the California Air Resources Board and consists of a project or 218 projects that are solely located in the United States and are ether producing energy or 219 reducing energy consumption. 220 F. For purposes of calculating carbon emissions, the carbon dioxide content of 221 natural gas shall be 5.302 metric tons per 1,000 therms and the carbon dioxide content 222 for electricity shall be the value, at the time of filing, from the most recent Power Content 223 Label published by the California Energy Commission. 224 G. The Cultivation Business shall be responsible for demonstrating compliance on a 225 calendar-year basis. Documentation shall include copies of energy and water bills, as 226 well as an authorization to energy and water providers to disclose energy and water 227 consumption at the Facility directly to the City. All parties that are responsible for energy 228 and water bills shall also be responsible for providing such documentation and 229 authorization. 230 H. The annual amount paid by a Cultivation Business to both mitigate carbon 231 dioxide emissions caused by the generation of electrical energy to its Facility and to 232 offset the carbon content of all electrical energy delivered to its Facility shall not exceed 233 10% of the Facility annual energy bill. This fee shall be reconsidered after five years to 234 determine whether it should be readjusted to reflect lower energy rates or higher costs 235 of renewable energy certificates. (Ord. 7559-NS § 1, 2017: Ord. 7529-NS § 1 (part), 236 2017)

237 12.25.090 Records 238 A. General. All Cultivation Businesses and Facilities shall maintain Commented [GE23]: See 12.21.050.A 239 contemporaneous financial and operational records sufficient to show compliance with 240 this Chapter, Chapter 12.26, and applicable California law, as well as satisfaction of 241 commitments made in the Cultivation Business’s application and during the ranking and 242 allocation process, if any. Such records shall be maintained in a secure location under

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243 the control of the Cultivation Business within the City of Berkeley, and shall be subject 244 to inspection by the City upon reasonable notice during regular operational hours or by 245 appointment. 246 B. Finances. 247 1. Cultivation Businesses shall operate on a Not-for-Profit basis. Sale of Medical 248 Cannabis to cover anything other than reasonable compensation and reasonable 249 out-of-pocket expenses is explicitly prohibited. To the extent they provide goods or 250 services not related to Medical Cannabis, Cultivation Businesses need not operate on a 251 Not-For-Profit basis. Commented [GE24]: See 12.22.130.D (collectives only) 252 2. Cultivation Businesses shall make their financial records available to the City on 253 an annual basis. Such audited records shall be limited to information necessary for the 254 City to determine the not-for-profit status of the organization and shall include 255 information on staff/principal compensation. Commented [GE25]: See 12.21.050.B and 12.22.130.B 256 C. Qualified Patient or Primary Caregiver status. Cultivation Businesses shall keep 257 an accurate roster of all Principals and employees, which shall include either the State 258 of California Medical Marijuana Identification Card number issued by a county pursuant 259 to Health & Safety Code Sections 11362.7 et seq. or a copy of a physician’s referral 260 and, if any such person is a Primary Caregiver, a written authorization from the 261 Qualified Patient to be represented by such Primary Caregiver. Such records shall be 262 maintained in a manner that protects the confidentiality of all persons identified therein. Commented [GE26]: See 12.22.040.H.6.d – only applies 263 D. Operations. Cultivation Businesses shall maintain the following information and to M-Retailers in relation to very low income Patients. 264 make it available to the City within 30 days of the end of each calendar year. Commented [GE27]: See 12.21.050.C 265 1. The Collectives and /or Dispensaries of which the Principals and employees are 266 Members. 267 2. The total amount of revenue collected during the year; 268 3. The consideration received for each Batch; 269 4. Monetary and non-monetary contributions; 270 5. Total monetary and non-monetary distributions to Members of any of the 271 Dispensaries and/or Collectives of which the Principals or employees are Members, 272 other than Medical Cannabis, Medical Cannabis Products or Edibles provided for 273 monetary consideration; 274 6. Salaries and overhead; and 275 7. A complete list of the types of Medical Cannabis, Medical Cannabis Products and 276 Edibles available, and the prices thereof. 277 E. Convictions. Cultivation Businesses shall immediately report any conviction of a 278 person subject to Section 12.28.030.A that would cause him or her to be ineligible to be 279 a Principal or employee. (Ord. 7529-NS § 1 (part), 2017)

280 12.25.100 Ranking and allocation procedure and criteria Commented [GE28]: See 12.22.020 281 The Council may by resolution establish procedures and criteria for accepting 282 applications to operate Facilities and determining which, if any, to approve. (Ord. 283 7529-NS § 1 (part), 2017)

284 12.25.110 Confidentiality of information Commented [GE29]: See 12.21.070 285 A. The City’s review of information submitted or maintained pursuant to this Chapter 286 shall preserve the confidentiality of all information about Principals to the maximum

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287 extent consistent with state and local law. The City shall incur no liability for the 288 inadvertent or negligent disclosure of such information. Disclosure of any Principal 289 information to the City for purposes of this Chapter shall not be deemed a waiver of 290 confidentiality. Financial information provided to the City pursuant to Section 12.25.090 291 shall be deemed to be "financial information" covered by Chapter 7.26. 292 B. The information required by Section 12.25.040 and recordings from security 293 cameras, shall be confidential and shall not be subject to public inspection or disclosure 294 except to City employees for purposes of law enforcement. 295 C. In order to protect confidentiality, Dispensaries shall not collect or maintain 296 Protected Health Information. Dispensaries shall maintain membership records and 297 information about members in a manner that ensures that the information will not be 298 disclosed except as required by this Chapter or other laws. If a Dispensary maintains 299 information conveyed by a Member to a Dispensary regarding such Member’s medical 300 condition, information conveyed by a Member to a Dispensary regarding efforts to 301 ameliorate or otherwise address symptoms associated with such Member’s medical 302 condition, or information regarding Medical Cannabis, Medical Cannabis Products 303 and/or Edibles provided to a Member, such information shall be kept in a manner that is 304 in compliance with the Confidentiality of Medical Information Act. Membership lists shall 305 be available to City employees charged with the administration of this Chapter for 306 inspection on site without a warrant during business hours or by appointment. (Ord. 307 7529-NS § 1 (part), 2017)

308 12.25.120 Authority of City Manager Commented [GE30]: See 12.21.080 and 12.22.160 309 A. The City Manager or his or her designee shall have authority to determine the 310 nature of any purported Cultivation Business or Facility and whether that Cultivation 311 Business or Facility complies with any of the requirements of this Chapter and to 312 conduct inspections as provided in Chapter 1.16. 313 B. The City Manager or his or her designee shall have authority to enter onto private 314 property and perform such inspections as may be necessary or convenient to 315 implement and enforce this Chapter, and to adopt regulations to implement this 316 Chapter. (Ord. 7529-NS § 1 (part), 2017)

317 12.25.130 Abatement of violations Commented [GE31]: See 12.21.090 318 A. Violations of this Chapter shall constitute a public nuisance under Chapter 1.26. 319 The City may enforce this Chapter through proceedings under Chapter 1.24, Chapter 320 1.28, Chapter 23B.64 and any other law or ordinances it deems appropriate. 321 B. Notwithstanding anything to the contrary, violations of this Chapter shall not be 322 punishable as public offenses to the extent that doing so would conflict with state law. 323 (Ord. 7529-NS § 1 (part), 2017)

324 12.25.140 Fees Commented [GE32]: See 12.21.100 and 12.22.150 325 The City Council may establish by resolution the fees that shall be charged for 326 administration and implementation of this Chapter. The adoption of such fees shall not 327 prevent the City from recovering enforcement costs not specified in such resolution. 328 (Ord. 7529-NS § 1 (part), 2017)

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329 12.25.150 Severability Commented [GE33]: See 12.21.110 and 12.22.170 330 If any word, phrase, sentence, part, section, subsection, or other portion of this 331 Chapter, or any application thereof to any person or circumstance is declared void, 332 unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, 333 section, subsection, or other portion, or the prescribed application thereof, shall be 334 severable, and the remaining provisions of this Chapter, and all applications thereof, not 335 having been declared void, unconstitutional or invalid, shall remain in full force and 336 effect. The City Council hereby declares that it would have passed this title, and each 337 section, subsection, sentence, clause and phrase thereof, irrespective of the fact that 338 any one or more sections, subsections, sentences, clauses or phrases had been 339 declared invalid or unconstitutional. (Ord. 7529-NS § 1 (part), 2017)

340 12.25.160 Severability 341 Chapter 12.25 of the Berkeley Municipal code shall not be effective until such time 342 as an amendment to the Berkeley Zoning Ordinance which limits the maximum number 343 of cultivation sites to six locations has become effective. (Ord. 7529-NS § 1 (part), 2017)

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1 Chapter 12.27 will be deleted. Many of the Sections/Subsections will be modified and divided 2 between 12.21 and 12.22. See comments to determine the new location of information 3 contained within Sections/Subsections.

4 Chapter 12.27

5 MEDICAL CANNABIS DISPENSARIES AND COLLECTIVES

6 Sections:

7 Article I General

8 12.27.010 Applicability 9 12.27.020 Reserved 10 Article II Dispensaries

11 12.27.030 Eligibility requirements 12 12.27.040 Information requirements 13 12.27.050 Operating Standards 14 12.27.060 Signage 15 12.27.070 Product Safety, Quality Assurance and Labeling 16 12.27.080 Medical cannabis for low income Members 17 12.27.090 Records 18 12.27.100 Ranking and allocation procedure and criteria 19 12.27.110 Confidentiality of information 20 Article III Collectives

21 12.27.120 Limitations on Collective operations 22 12.27.130 Operating standards for all Collectives 23 Article IV Enforcement

24 12.27.140 Fees. 25 12.27.150 Authority of City Manager 26 12.27.160 Severability 27 12.27.170 Reserved 28 12.27.180 Reserved

29 12.27.010 Applicability 30 A. This Chapter applies to dispensaries and Collectives as defined in Chapter 31 12.23. 32 B. The three existing Retail Dispensaries permitted as of January 1, 2012, under 33 Berkeley Municipal Code section 12.26.130 shall have a grace period of 12 months 34 from the effective date of this ordinance to comply with it. Any such Retail Dispensary 35 that substantially complies with this Chapter by that time may continue to operate and 36 shall not be required to participate in the ranking and allocation process under 37 12.27.100. Any such Retail Dspensary that does not substantially comply with this 38 ordinance by that date shall cease operation, but may apply to operate under Berkeley

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39 Municipal Code section 12.27.100 on the same basis as any other applicant. (Ord. 40 7532-NS § 1, 2017: Ord. 7360-NS § 1 (part), 2014)

41 12.27.020 Reserved 42 (Ord. 7532-NS § 2, 2017: Ord. 7360-NS § 1 (part), 2014)

43 12.27.030 Eligibility requirements Commented [GE1]: See 12.22.030.A 44 A. No Principal of any Dispensary may be a Principal for any other Dispensary in 45 Berkeley. (Ord. 7532-NS § 3, 2017: Ord. 7360-NS § 1 (part), 2014)

46 12.27.040 Information requirements Commented [GE2]: See 12.21.030 47 Every Dispensary shall provide the following information to the City, and shall update 48 it annually and whenever there is any material change. 49 A. A description of the Dispensary and its location, which shall include such 50 information as the City may require that demonstrates compliance with applicable 51 provisions of this Chapter. 52 B. The name, address and 24-hour contact information for each Principal, including 53 a photocopy of at least one primary form of photo identification, such as a California 54 Drivers License or US Passport. This information shall also include any aliases, maiden 55 or married names or other former legal names. 56 C. Proof of each Principal’s status as a qualified patient or primary caregiver. 57 D. For each Principal, a signed consent for the City to conduct a background check, 58 including criminal history. 59 E. Proof of the nature of the Dispensary’s organizational status, such as articles of 60 incorporation, by-laws, partnership agreements, and other documentation as may be 61 appropriate or required by the City. (Ord. 7360-NS § 1 (part), 2014)

62 12.27.050 Operating Standards 63 Dispensaries shall also comply with the operating standards set forth in this Section. 64 A. Membership. 65 1. No person other than a Member may Cultivate Medical Cannabis on behalf of a 66 Dispensary. 67 2. The scale of Cultivation by or on behalf of a Dispensary shall be proportional to 68 its Member load. Commented [GE3]: See 12.22.130.A – only applies to 69 3. No physician recommendations for Medical Cannabis may be provided on site. collectives 70 4. All prospective members must be advised in writing, prior to accession to Commented [GE4]: See 12.22.040.H.2 71 membership, as follows: "WARNING: Medical cannabis products including edibles are 72 not tested by local, state or federal governmental agencies for health, safety, or efficacy. 73 There may be health risks associated with the consumption of these products." Commented [GE5]: See 12.22.040.E.3 74 B. Non-diversion. Dispensaries shall take all practicable steps necessary to prevent 75 and deter diversion of Medical Cannabis to non-Members. Dispensaries must limit 76 access to Medical Cannabis to authorized personnel only, and must maintain an 77 inventory management system that: 78 1. Accounts for all Medical Cannabis;

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79 2. Tracks each Batch of Medical Cannabis received by the Dispensary from its 80 source, including each Batch’s approximate content of Active Ingredients and Cannabis 81 By-Products as a percentage of weight; 82 3. Retains all information listed in paragraphs 1 and 2 above for a period of at least 83 120 days from receipt of the Batch; and 84 4. Is capable of producing a summary showing the information necessary to verify 85 non-diversion. Commented [GE6]: See 12.21.030.E and 12.22.130.B 86 C. Dispensing. 87 1. Dispensaries may not dispense to any person who is not a Member, and may not 88 dispense without first verifying membership. Commented [GE7]: See 12.22.040.H.1 89 2. Dispensaries may not provide more Medical Cannabis for a Member than is 90 necessary for the personal medical use of the Qualified Patient for whom the Medical 91 Cannabis is intended, and may not dispense more than one ounce of dried Medical 92 Cannabis in leaf form per day per Qualified Patient as defined in state law; provided Commented [GE8]: See 12.22.140.H.3 and 12.22.130.C 93 that: 94 a. if a Qualified Patient has a physician’s recommendation that this quantity does 95 not meet his or her medical needs, the Qualified Patient or his or her Primary Caregiver 96 may possess, and the Dispensary may dispense to him or her, an amount of Medical 97 Cannabis consistent with those needs; 98 b. a Dispensary may provide more than one ounce of dried Medical Cannabis if the 99 excess amount is low concentration Medical Cannabis that would not normally be sold 100 for consumption, and is only used for preparation of Medical Cannabis Products or 101 Edibles by a Member; or 102 c. a Qualified Patient needs a greater quantity due to a planned absence from the 103 area. 104 3. Retail Dispensaries may not distribute free samples for promotional purposes 105 outside of the Dispensary premises. Commented [GE9]: See also 12.22.040.D 106 4. If a Member has an identification card issued pursuant to Health & Safety Code 107 Section 11362.71 or 11362.735, a Dispensary shall use the number from that card to 108 ensure compliance with this subdivision. Commented [GE10]: For 2 a, b, c, 3 and 4, see 109 5. No physician recommendations for Medical Cannabis may be provided on site. 12.22.130.C 110 6. All prospective members must be advised in writing, prior to accession to Commented [GE11]: See 12.22.040.H.2 111 membership, as follows: "WARNING: Medical cannabis products including edibles are 112 not tested by local, state or federal governmental agencies for health, safety, or efficacy. 113 There may be health risks associated with the consumption of these products." Commented [GE12]: See 12.22.040.E.3 114 D. Members and employees. 115 1. All employees and volunteers must be Members who are at least 18 years of 116 age. Commented [GE13]: See 12.21.040.D 117 2. Dispensaries may not admit any person under 18 years of age to membership 118 without written authorization of a parent or legal guardian. Any Member under 18 years 119 of age shall be accompanied by a parent or legal guardian at all times that such person 120 is at the Dispensary. Commented [GE14]: See 12.22.040.H.5 121 E. Security. Commented [GE15]: See 12.21.040.F 122 1. Dispensaries shall provide adequate security and lighting on-site to ensure the 123 safety of persons and protect the premises from theft at all times. Lighting shall be of 124 sufficient intensity to illuminate all areas of the lot.

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125 2. Dispensaries must maintain security guards and camera coverage of their entire 126 grounds to an extent sufficient to ensure the safety of persons and deter crime. 127 Cameras must be maintained in good condition, and use a format approved by the City 128 Manager, which is of adequate quality, color rendition and resolution to allow the ready 129 identification of any individual committing a crime. The cameras shall be in use 24 hours 130 per day, seven (7) days per week. The areas to be covered by the security cameras 131 include, but are not limited to, dispensing areas, storage areas, cultivation areas, all 132 doors, parking lots, and any other area determined by the City Manager. Surveillance 133 footage must be retained for a period of 90 days and made available to the Berkeley 134 Police Department for purposes of investigation of alleged crimes, promptly upon 135 request without the necessity of a warrant or subpoena. Retention and maintenance of 136 security camera recordings shall comply with Section 12.27.110. 137 3. Dispensaries must be equipped with an alarm system that is operated and 138 monitored by a security company licensed by and in good standing with the California 139 Department of Consumer Affairs. Alarms shall be maintained and in good working 140 condition at all times. 141 4. In order to prevent unauthorized entry during non-business hours, a Dispensary 142 shall either secure all exterior windows and roof hatches from the inside with bars, 143 retractable, folding or sliding metal gates, or metal rollup or accordion doors, or provide 144 at least one security guard during those hours. 145 5. Any security guards employed by Dispensaries shall be licensed and possess a 146 valid Department of Consumer Affairs "Security Guard Card" at all times. Security 147 personnel may not be armed. 148 6. All Medical Cannabis except for limited amounts used for display purposes, 149 samples or immediate sale, shall be securely stored at all times, and the entrance to all 150 storage areas shall be locked and under the control of staff. 151 7. Dispensaries shall make transactions with payment methods other than cash 152 whenever feasible. All cash received, except that needed for retail customer 153 transactions shall be kept in a secure receptacle such as a drop safe or other type of 154 safe. 155 F. Neighborhood compatibility. Commented [GE16]: See 12.21.040.G 156 1. Dispensaries shall be operated to ensure neighborhood compatibility, and shall 157 take all steps necessary to ensure that Members do not create neighborhood 158 disturbances. Such measures shall include, but not be limited to, providing a security 159 guard to patrol the area surrounding the Dispensary during all hours of operation. 160 2. Dispensaries shall provide the Police Department and all residents and property 161 owners within 100 feet with the current name, phone number, secondary phone number 162 and e-mail address of an on-site community relations staff person to whom notice of any 163 operating problems associated with the establishment may be reported. This 164 information shall be updated as necessary to keep it current. Dispensaries shall 165 encourage neighbors to call this person to try to solve any operating problems. 166 3. All Dispensaries shall have an on-site manager responsible for overall operation 167 at all times they are open, and shall provide the Police Department with contact 168 information for all such persons, including telephone number and e-mail address. 169 Dispensaries shall also provide the Police Department with the current name and phone

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170 numbers of at least one 24-hour-on-call manager. This information shall be updated as 171 necessary to keep it current. 172 4. Dispensaries shall take all reasonable steps to discourage and correct 173 objectionable conditions that constitute a public or private nuisance in parking areas, 174 sidewalks, alleys and areas surrounding the premises and adjacent properties. Such 175 conditions include, but are not limited to: smoking; creating a noise disturbance; 176 loitering; littering; and graffiti. 177 5. Dispensaries shall ensure all graffiti is removed from property and parking lots 178 under their control within 72 hours of its appearance. 179 6. Dispensaries shall operate only between the hours of 9:00 a.m. and 9:00 p.m. Commented [GE17]: See 12.22.040.B 180 G. Consumption of Medical Cannabis, Tobacco and Alcohol. Commented [GE18]: See 12.21.040.H 181 1. Smoking of Medical Cannabis is prohibited at Dispensaries and within 50 feet of 182 Dispensaries on the public right of way. For purposes of this subdivision, the term 183 "smoking" does not include the use of an electronic and/or battery-operated device, the 184 use of which may resemble smoking, which can be used to deliver an inhaled dose of 185 Medical Cannabis, including but not limited to any device manufactured, distributed, 186 marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, 187 an electronic pipe, an electronic hookah, or any other product name or descriptor. Commented [GE19]: See 12.22.040.F.1 and 2 188 2. Sale or consumption of tobacco is prohibited at Dispensaries. 189 3. Sale, service and consumption of alcoholic beverages at Dispensaries is 190 prohibited, and Dispensaries shall prohibit any person in possession of an alcoholic 191 beverage from entering or remaining on the premises. 192 H. Accessibility. Dispensaries shall comply with all physical accessibility Commented [GE20]: See 12.22.040.D 193 requirements that would be applicable to a newly-constructed building, except that 194 pre-existing Dispensaries permitted under Ordinance No. 6826-N.S. shall not be 195 required to comply with such requirements as long as they remain in the same location 196 as when this Chapter became effective, except as may be required by other laws. 197 I. Termination of Membership. 198 A Dispensary shall terminate the membership of any Member of whom it is aware 199 who purposely or repeatedly violates the limitations in this Section or who operates a 200 motor vehicle after ingesting any Medical Cannabis Product at that Dispensary. Prompt 201 termination of membership under this subdivision shall be considered in any 202 enforcement proceeding against a Dispensary. (Ord. 7532-NS § 4, 2017: Ord. 7360-NS 203 § 1 (part), 2014)

204 12.27.060 Signage 205 A. A sign shall be posted at the entrance to any Dispensary that includes the 206 following language: 207 This Dispensary only provides medical cannabis to its members, who 208 must have legally recognized California Medical Cannabis 209 Identification Cards or a verifiable, written recommendation from a 210 physician for medical cannabis.

211 The required text shall be of sufficient size to be easily read from a distance of five 212 feet. Commented [GE21]: See 12.22.040.E.4 213 B. A sign shall be posted in a conspicuous location inside the structure at the 214 location advising:

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215 This Dispensary is registered in accordance with the laws of the City of 216 Berkeley. The sale of marijuana and the diversion of marijuana for 217 non-medical purposes are violations of State law. The use of marijuana 218 may impair a person’s ability to drive a motor vehicle or operate heavy 219 machinery. Commented [GE22]: See 12.22.040.E.5

220 C. A sign or signs shall be posted in a location or locations conspicuous from all 221 sales areas inside the structure that state: 222 WARNING: Medical cannabis products, including edibles are, not 223 tested by local, state or federal governmental agencies for health, 224 safety, or efficacy. There may be health risks associated with the 225 consumption of these products. Commented [GE23]: See 12.22.040.E.3

226 The required text shall be of sufficient size to be easily read from a distance of five 227 feet. (Ord. 7532-NS § 5, 2017: Ord. 7360-NS § 1 (part), 2014)

228 12.27.070 Product Safety, Quality Assurance and Labeling Commented [GE24]: These testing requirements will only 229 Medical Cannabis shall be tested, and specified compounds shall be quantitated, as apply to Residential Collectives 230 set forth in this Section. 231 A. The following compounds shall be quantitated as set forth in the following table, 232 using equipment and methodologies with limits of detection for all compounds no 233 greater than 0.1% by weight, or 1 mg/g. Commented [GE25]: See 12.22.140.A Constituent Equipment/Methodology THCA HPLC1, or GC2 with derivatization or other THC methodology approved by a state or the federal government as meeting a limit of CBDA quantitation of 0.1% by weight CBD CBN 1 High-performance liquid chromatography 2 Gas chromatography 234 235 B. The quantitative information required by subdivision A shall be printed on labels 236 for all Medical Cannabis as set forth in the following table. Commented [GE26]: See 12.22.140.B Product type Label information Cannabis (flowers, leaf and concentrates, % by weight and mg/g including water processed concentrates) Edibles (other than beverages) mg/package or mg/serving if applicable; nutritional and allergen information as required by the CDPH for cottage foods Capsules/pills mg/capsule Oils, butters, tinctures (for internal weight/volume consumption) mg/g

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Product type Label information Topicals (external application) mg/g or mg/mL, as applicable Beverages mg/container and mg/serving, if applicable; nutritional and allergen information as required by the CDPH for cottage foods. 237 238 C. Medical Cannabis shall be tested for contaminants as set forth in the following 239 table. Medical Cannabis that contains more than the permissible levels may not be 240 provided to any Member or any other person, and shall either be destroyed or returned 241 to their source(s) at the option of the owner. Commented [GE27]: See 12.22.140.C Testing Contaminant Permissible amount methodology EPA-controlled Any methodology that the City 100 ppb (total of all quantitated pesticides)3 pesticides commonly determines is sufficiently used in cannabis sensitive to determine that the cultivation permissible amount has not been exceeded using EPA- or FDA-accepted methodologies for pesticides, including, not limited to GC-MS1, Elisa2 Microbiological Any methodology • APC4 < 100,000 CFUs5 contaminants approved by any • Yeast/Mold = APC<10,000 CFUs U.S. or recognized international • Coliform ≤ 1,000 CFUs standards • Pseudomonas ≤ 1,000 CFUs6 organizations • Salmonella = 0 CFU • E. coli = 0 CFU Residual flammable Head space analysis 400 ppm (total of all solvents)7 solvents (concentrates only) 1 Gas chromatography-mass spectrometry 2 Enzyme-linked immunosorbent assay 3 Parts per billion 4 Aerobic plate count 5 Colony-forming unit 6 This limit shall apply as of July 1, 2016. Prior to that date, the limit for Pseudomonas shall be 10,000 CFU. 7 Parts per million 242 243 D. Baked goods, such as cookies and brownies, shall be exempt from testing for 244 contaminants. These products are still subject to testing for potency, as required for the

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245 label information in Section 12.27.070.B, and must use medical cannabis that has been 246 tested for contaminants. Commented [GE28]: See 12.22.140.D 247 E. Dispensaries shall maintain a written or computerized log documenting: 248 1. the date, type, and amount of Product tested; 249 2. the source(s) of any contaminated Medical Cannabis; 250 3. the report containing the results of the testing, including the name and level of 251 the substance detected; and 252 4. the disposition of the Medical Cannabis from which the contaminated sample 253 was obtained, including the amount and the date and manner of disposition. 254 Such logs shall be maintained for at least one year and made available to the City 255 upon request. Commented [GE29]: See 12.22.050.D and 12.22.140.E 256 F. Packaging and Labeling for Medical Cannabis. Commented [GE30]: See 12.22.140.F 257 1. Medical Cannabis that is made available to members shall be contained in 258 packaging that bears labels containing the following information, in addition to any other 259 information that a Dispensary may choose to provide or that may be required by law: 260 a. the name and contact information for the Dispensary; 261 b. the weight; 262 c. the quantity of compounds as set forth in subdivision B; 263 d. the date of manufacture or production; and 264 e. a complete list of ingredients. 265 2. Scales and weighing mechanisms must be able to weigh to within 1/100th of a 266 gram, shall be maintained in good working order and shall be subject to annual 267 inspection by either the Alameda County Department of Agriculture/Weights and 268 Measures or a licensed scale company. Commented [GE31]: See 12.22.050.F 269 G. Preparation, Packaging and Labeling of Edibles. Commented [GE32]: See 12.22.140.G. These will only 270 1. Edibles. Edibles shall be limited to those items approved in the California apply to Collectives with over 25 members 271 Homemade Food Act, Chapter 6.1 (commencing with Section 51035) of Part 1 of 272 Division 1 of Title 5 of the Government Code. 273 2. Compliance with State Food Safety Requirements. A Dispensary that prepares, 274 dispenses, or in any manner distributes Edible Medical Cannabis Products must comply 275 with the relevant provisions of all State and local laws specified by the City Manager 276 regarding the preparation, distribution, labeling and sale of food, even if those laws are 277 not directly applicable to Edibles. Any facility used by a Dispensary to produce Edibles 278 shall be constructed, operated and inspected in accordance with the applicable building 279 code and applicable food safety requirements. 280 3. Preparation of Edibles. 281 a. Individuals involved in the production or distribution of Edibles containing Medical 282 Cannabis shall thoroughly wash their hands before commencing production and before 283 handling the finished product. Gloves must be worn when packaging edible products 284 containing Medical Cannabis. 285 b. In order to reduce the likelihood of foodborne disease transmission, individuals 286 who are suffering from symptoms associated with acute gastrointestinal illness or are 287 known to be infected with a communicable disease that is transmissible through 288 foodstuffs are prohibited from preparing edible products containing Medical Cannabis 289 until they are free of that illness or disease, or are incapable of transmitting the illness or

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290 disease through foodstuffs. Individuals who have sores or cuts on their hands must use 291 gloves when preparing and handling edible products containing Medical Cannabis. 292 c. Edibles that are produced or distributed at a Dispensary may only be prepared by 293 a Member of that Dispensary and, if prepared in Berkeley, shall only be prepared in a 294 facility permitted and inspected for the production of food by a government agency, 295 such as a commercial kitchen or a facility operating in accordance with the California 296 Homemade Food Act. 297 d. Certified Food Handler. A Member who produces Edible Medical Cannabis 298 Products must be a State certified food handler. The valid certificate number of such 299 Members must be on record at each Dispensary where the edible product is distributed, 300 and a copy of the certificate kept either on-site, or made available during inspections if 301 kept off-site. 302 e. Hand-washing Facilities. Hand-washing facilities shall be adequate and 303 convenient and be furnished with running water at a suitable temperature. Handwashing 304 facilities shall be located in the facility in Edible preparation areas and where good 305 sanitary practices require employees to wash and/or sanitize their hands, and provide 306 effective hand-cleaning and sanitizing preparations and sanitary towel service or 307 suitable drying devices. Commented [GE33]: See 12.22.140.G and 12.22.050.E 308 4. Packaging of Edibles. 309 a. All Edibles shall be individually wrapped at the original point of preparation. A 310 label indicating the nature of the product shall be distinctly and clearly legible on the 311 front of the package. Additional label information must include: (i) a warning if nuts or 312 other known allergens are used; (ii) a warning that the item is a medication containing 313 Medical Cannabis and the total weight (in ounces or grams) and amount of Active 314 Ingredients in the package; (iii) the date of manufacture; (iv) a statement that the 315 contents are not a food product; and (v) information indicating any caloric impact on the 316 patient. The package label must have a warning clearly legible emphasizing that the 317 product is to be kept away from children. 318 b Labels of Edibles that are not tested for contaminants (baked goods) shall 319 include a statement that the cannabis used in the product was tested for contaminants. 320 c. Packaging of Edibles shall be opaque, and may not make it appear as if the 321 Edible is a food product. Packaging that makes the product attractive to children or 322 imitates candy is not allowed. 323 d. Packaging of edibles shall be tamper-evident. 324 5. Producers of Edibles that are not tested for contaminants shall maintain a written 325 or computerized log documenting: 326 a. The source of the cannabis used in each batch of product; 327 b. The contaminant testing date; and 328 c. The testing facility for the cannabis. 329 H. Section 12.27.070 shall be deemed repealed and of no further force or effect 330 once testing as set forth in Article 10 of Chapter 3.5 of the Business and Professions 331 Code is available. (Ord. 7532-NS § 6, 2017: Ord. 7360-NS § 1 (part), 2014) Commented [GE34]: See 12.22.050.C

332 12.27.080 Medical cannabis for low income Members Commented [GE35]: See 12.22.040.H.6 333 A. At least 2% (by weight) of the annual amount of Medical Cannabis in dried plant 334 form provided by a Dispensary to all Members, shall be provided at no cost to very

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335 low-income Members who are Berkeley residents. This amount shall be calculated 336 every six months, based on the amount dispensed during the immediately preceding six 337 months. Medical Cannabis provided under this Section shall be the same quality on 338 average as Medical Cannabis that is dispensed to other members. 339 B. For purposes of this Section, income shall be verified using federal income tax 340 returns or other reliable method approved by the City Manager. 341 C. For purposes this Section, "very low income" shall mean the household income 342 established by the most recent annual City Council resolution that establishes the 343 maximum income levels for qualification for exemption from specified local taxes and 344 fees. (Ord. 7532-NS § 7, 2017: Ord. 7360-NS § 1 (part), 2014)

345 12.27.090 Records 346 A. General. All Dispensaries shall maintain contemporaneous financial and Commented [GE36]: See 12.21.050.A 347 operational records sufficient to show compliance with this Chapter, Chapter 12.26, and 348 applicable California law, as well as satisfaction of commitments made in the 349 Dispensary’s application and during the ranking and allocation process. Such records 350 shall be maintained in a secure location under the control of the Dispensary within the 351 City of Berkeley, and shall be subject to inspection by the City upon reasonable notice 352 during regular operational hours or by appointment. 353 B. Finances. 354 1. Dispensaries shall operate on a Not-for-Profit basis. Sale of Medical Cannabis to 355 cover anything other than reasonable compensation and reasonable out-of-pocket 356 expenses is explicitly prohibited. To the extent they provide goods or services not 357 related to Medical Cannabis, Dispensaries need not operate on a Not-For-Profit basis. Commented [GE37]: See 12.22.130.D (collectives only) 358 2. Dispensaries shall make their financial records available to the City on an annual 359 basis. Such audited records shall be limited to information necessary for the City to 360 determine the not-for-profit status of the organization and shall include information on 361 staff/principal compensation. Commented [GE38]: See 12.21.050.B and 12.22.130.B 362 C. Membership. Dispensaries shall keep an accurate roster of Members, which shall 363 include either the State of California Medical Marijuana Identification Card number 364 issued by a county pursuant to Health & Safety Code Sections 11362.7 et seq. or a 365 copy of a physician’s referral and, if using a primary caregiver, a written authorization 366 from the qualified patient to be represented by such primary caregiver. Such records 367 shall be maintained in a manner that protects the confidentiality of the Dispensary’s 368 Members. Commented [GE39]: See 12.22.040.H.6.d – only applies 369 D. Operations. Dispensaries shall maintain the following information and make it to M-Retailers in relation to very-low income Patients 370 available to the City within 30 days of the end of each calendar year. Commented [GE40]: See 12.21.050.C 371 1. The total number of members during the year; 372 2. The total amount of revenue collected during the year; 373 3. The consideration paid for each Batch; 374 4. Monetary and non-monetary contributions from Members; 375 5. Total monetary and non-monetary distributions to Members other than Medical 376 Cannabis Products or Edibles dispensed for monetary consideration; 377 6. Salaries and overhead; and 378 7. A complete list of the types of Medical Cannabis, Medical Cannabis Products and 379 Edibles available, and the prices thereof.

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380 E. Convictions. Dispensaries shall immediately report any conviction of a person 381 subject to Section 12.27.030.A that would cause him or her to be ineligible to have a 382 position other than that of Member. (Ord. 7360-NS § 1 (part), 2014)

383 12.27.100 Ranking and allocation procedure and criteria Commented [GE41]: See 12.22.020 384 The Council may by resolution establish procedures and criteria for accepting 385 applications to operate Dispensaries and determining which, if any, to approve. (Ord. 386 7360-NS § 1 (part), 2014)

387 12.27.110 Confidentiality of information Commented [GE42]: See 12.21.070 388 A. The City’s review of information submitted or maintained pursuant to this Chapter 389 shall preserve the confidentiality of all information about Principals and Members to the 390 maximum extent consistent with state and local law. The City shall incur no liability for 391 the inadvertent or negligent disclosure of such information. Disclosure of any Principal 392 or Member information to the City for purposes of this Chapter shall not be deemed a 393 waiver of confidentiality. Financial information provided to the City pursuant to Section 394 12.27.090 shall be deemed to be "financial information" covered by Chapter 7.26. 395 B. The information required by Section 12.27.040 and recordings from security 396 cameras, shall be confidential and shall not be subject to public inspection or disclosure 397 except to City employees for purposes of law enforcement. 398 C. In order to protect confidentiality, Dispensaries shall not collect or maintain 399 Protected Health Information. Dispensaries shall maintain membership records and 400 information about members in a manner that ensures that the information will not be 401 disclosed except as required by this Chapter or other laws. If a Dispensary maintains 402 information conveyed by a Member to a Dispensary regarding such Member’s medical 403 condition, information conveyed by a Member to a Dispensary regarding efforts to 404 ameliorate or otherwise address symptoms associated with such Member’s medical 405 condition, or information regarding Medical Cannabis, Medical Cannabis Products 406 and/or Edibles provided to a Member, such information shall be kept in a manner that is 407 in compliance with the Confidentiality of Medical Information Act. Membership lists shall 408 be available to City employees charged with the administration of this Chapter for 409 inspection on site without a warrant during business hours or by appointment. (Ord. 410 7360-NS § 1 (part), 2014)

411 12.27.120 Limitations on Collective operations Commented [GE43]: See 12.22.120.A-J 412 As a use that is incidental to the residential use of property in residential zoning 413 districts, Collectives shall comply with the following operating limitations: 414 A. A Collective may not generate more than 5 Member trips per day per location, 415 excluding trips by residents of the Collective location. 416 B. Cash on hand shall be minimized, and no more than $1000 may be retained 417 overnight per location. 418 C. Collectives may not operate at more than four (4) locations in Berkeley, and may 419 not store or maintain at any site at any time more than a combined total of 10 pounds of 420 dried Medical Cannabis and concentrates, of which no more than 1 pound may be 421 concentrates.

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422 D. Collectives may not have Member visits to obtain Medical Cannabis except for 423 social purposes before 8:00 a.m. or after 9:00 p.m. 424 E. No alcohol may be served for consideration. 425 F. No consideration may be charged for entry into the Collective or any part of the 426 residence in which the Collective is located, no live entertainment may be provided, and 427 no entertainment of any sort may be provided for consideration. 428 G. Smoking of Medical Cannabis by non-residents is prohibited in all exterior areas 429 of Collectives and within 50 feet of Collectives on the public right of way. 430 H. Collectives may not have any exterior display identifying them as such. 431 I. Establishment and maintenance of a Collective may not involve any changes in 432 utility service or exterior modifications beyond those that would be customary for a 433 residence. 434 J. Collectives may not have any impacts on adjoining properties, such as, but not 435 limited to, excessive noise, glare, smells, smoke, etc., beyond those that are normal for 436 residential use. (Ord. 7360-NS § 1 (part), 2014)

437 12.27.130 Operating standards for all Collectives 438 Collectives shall comply with the following provisions of this Chapter. 439 A. Section 12.27.050, subdivisions A, B and C. Commented [GE44]: See 12.22.130.A-C 440 B. Section 12.27.070 subdivisions A-F. Subsection 12.27.070.C shall only apply to 441 collectives with 25 or more members. Commented [GE45]: See 12.22.140.A-F 442 C. Section 12.27.090, subdivisions B and D. Subsection 12.27.090.B.2 shall only 443 apply to collectives with 25 or more members. Commented [GE46]: See 12.22.130.D and E 444 D. Section 12.27.110, to the extent applicable. Commented [GE47]: See 12.22.130.F 445 E. Before it may obtain a business license pursuant as required by Chapter 9.04, a 446 Collective must obtain an inspection from the City that any cultivation or processing of 447 Medical Cannabis that it intends to undertake at a given site will not pose a fire hazard. Commented [GE48]: See 12.22.130.G 448 (Ord. 7360-NS § 1 (part), 2014)

449 12.27.140 Fees. Commented [GE49]: See 12.21.100 and 12.22.150 450 The City Council may establish by resolution the fees that shall be charged for 451 administration and implementation of this Chapter. The adoption of such fees shall not 452 prevent the City from recovering enforcement costs not specified in such resolution. 453 (Ord. 7532-NS § 8, 2017: Ord. 7360-NS § 1 (part), 2014. Formerly 12.27.170)

454 12.27.150 Authority of City Manager Commented [GE50]: See 12.21.080.B and 12.22.160.B 455 The City Manager may promulgate regulations for the administration and 456 implementation of this Chapter, including, but not limited to, regulations relating to 457 non-diversion, record-keeping, and tracking and tracing Medical Cannabis. (Ord. 458 7532-NS § 9, 2017: Ord. 7360-NS § 1 (part), 2014)

459 12.27.160 Severability Commented [GE51]: See 12.21.110 and 12.22.170 460 If any word, phrase, sentence, part, section, subsection, or other portion of this 461 Chapter, or any application thereof to any person or circumstance is declared void, 462 unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, 463 section, subsection, or other portion, or the prescribed application thereof, shall be

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464 severable, and the remaining provisions of this Chapter, and all applications thereof, not 465 having been declared void, unconstitutional or invalid, shall remain in full force and 466 effect. The City Council hereby declares that it would have passed this title, and each 467 section, subsection, sentence, clause and phrase thereof, irrespective of the fact that 468 any one or more sections, subsections, sentences, clauses or phrases had been 469 declared invalid or unconstitutional. (Ord. 7532-NS § 10, 2017: Ord. 7360-NS § 1 (part), 470 2014. Formerly 12.27.180)

471 12.27.170 Reserved 472 (Ord. 7532-NS § 11, 2017: Ord. 7360-NS § 1 (part), 2014)

473 12.27.180 Reserved 474 (Ord. 7532-NS § 12, 2017: Ord. 7360-NS § 1 (part), 2014)

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1 Chapter 23C.25 2 CANNABIS USES

3 Sections:

4 23C.25.010 Retail Uses 5 23C.25.020 Cultivation 6 23C.25.030 Manufacturing, Testing and Distribution 7

8 Section 23C.25.010 Retailer

9 A. Retailer is defined in Section 12.21.020.

10 B. Retailers may not be located within 600 feet of another Retailer or a public or 11 private elementary, middle or high school.

12 C. Expansion of an approved Retailer shall follow the conversion regulations for the 13 Zoning District in which it is located and shall comply with subdivision (B) of this 14 Section.

15 D. An M-Retailer existing and authorized as of January 1, 2010, that does not comply 16 with this Section, may continue at its current medical cannabis dispensing location and 17 shall be considered a legal nonconforming use. Notwithstanding Section 23C.04.060 or 18 subdivision (B) of this Section, the Zoning Officer may approve an Administrative Use 19 Permit to allow the expansion of a legal nonconforming medical cannabis dispensary 20 use on any parcel or on two adjacent parcels where a dispensary was located on one of 21 the parcels as of July 1, 2010.

22 E. No changes in ownership or approved location shall be approved until such time as 23 the City Council established procedures and criteria to allow such changes.

24 F. Medicinal Cannabis Retailers

25 1. Six Medicinal Cannabis Retailers as defined in Section 12.21.020 shall be 26 permitted as of right with a Zoning Certificate in C-prefixed zones if they comply 27 with the parking requirements applicable to the uses they include, and any security 28 requirements promulgated by the Chief of Police.

29 G. Adult Use Retailers

30 1. Twelve Adult Use Retailers as defined in Section 12.21.020 shall be permitted 31 as of right with a Zoning Certificate in C-prefixed zones if they comply with the 32 regulations in BMC Chapter 12.XX, parking requirements applicable to the uses 33 they include, and any security requirements promulgated by the Chief of Police.

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34 H. Delivery-only Retailers

35 1. ALTERNATIVE A: CANNABIS COMMISSION RECOMMENDATION - In 36 addition to the six existing Medicinal Cannabis Retailers, under Berkeley Municipal 37 Code Section 12.26.130 and any A-Retailers Dispensaries selected under Section 38 12.27.100, an unlimited number of Delivery-only Retailers shall be permitted, on a 39 first-come-first-served basis. OR

40 1. ALTERNATIVE B: STAFF RECOMMENDATION - In addition to the six 41 existing M-Retailers under Section 12.26.130 and any A-Retailers selected under 42 Section 12.27.100, ten (10) Delivery-only Retailers shall be permitted, subject to a 43 Council-approved selection process.

44 2. ALTERNATIVE A: PLANNING COMMISSION RECOMMENDATION 45 Delivery-only Retailers as defined in Section 12.21.020 shall be allowed subject to 46 issuance of an (Administrative Use Permit or Use Permit) in all C-prefixed zones 47 except Commercial Neighborhood (C-N). Delivery-only Retailers must comply 48 with the regulations in Chapters 12.21 and 12.22 and Title 23, comply with the 49 parking requirements applicable to retail uses, and any security requirements 50 promulgated by the Chief of Police.

51 2. ALTERNATIVE B: STAFF RECOMMENDATION Delivery-only Retailers as 52 defined in Section 12.21.020 shall be allowed in all C-prefixed zones. 53 Delivery-only businesses are permitted only on second floors. Delivery-only 54 Retailers must comply with the regulations in Chapters 12.21 and 12.22 and Title 55 23, comply with the parking requirements applicable to retail uses, and any 56 security requirements promulgated by the Chief of Police.

57 3. Delivery-Only Retailers may locate in all M-prefixed zones only as an ancillary 58 use to another type of Cannabis Business.

59 I. No new Retailer may be approved under this Section until the City Council adopts 60 a licensing process and standards for Retailers. Such standards may include, but shall 61 not be limited to, whether proposed dispensaries will provide a percentage of all 62 useable product dispensed at no cost to very low income patients and will provide 63 product that is produced using organic methods; and whether their form of organization, 64 ownership and practices ensure equity and accountability, low prices and an adequate 65 supply of high quality medical cannabis to their members.

66 Section 23C.25.020 Cannabis Cultivation

67 A. Notwithstanding anything to the contrary in this Chapter, cultivation of cannabis as 68 defined in Chapters 12.21 and 12.22 and MAUCRSA, shall be permitted as a matter of 69 right with a Zoning Certificate in all M-prefixed zones, subject to the following limitations:

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70 1. Such locations shall be limited to licensed Cannabis Businesses.

71 2. Cannabis may not be dispensed, and client, patient or member services or 72 retail sales are prohibited, at such locations.

73 3. No single location used for cultivation and associated uses by a licensee may 74 exceed 22,000 square feet of total canopy area, except that separate spaces used 75 by different licensees may be aggregated on the same location.

76 4. Up to six Major Cultivation Facilities between the size of 10,000 sf and 22,000 77 sf in total canopy area are permitted.

78 5. There is no numeric limit for Cannabis Cultivation Facilities under 10,000 sf in 79 total canopy area. These uses are limited by the total area permitted for cannabis 80 cultivation set forth in subsection 23C.25.020.A.7 minus the area available for 81 Major Cultivation Facilities.

82 6. Outdoor commercial cultivation is prohibited.

83 7. The total canopy area used for cannabis cultivation shall not exceed 180,000 84 square feet. (23E.72.040.A)

85 B. Cannabis nurseries, as defined in Chapter 12.21 are considered Cannabis 86 Cultivation uses and are subject to the same regulations as Cultivators.

87 C. Such locations shall comply with all regulations in Chapter 12.XX, security 88 regulations promulgated by the Chief of Police, and the requirements of this Chapter, 89 and shall not be located within 300 feet of a private or public elementary, middle or high 90 school. Such locations may include testing, processing, manufacturing and food 91 preparation only to the extent expressly permitted by MAUCRSA.

92 D. No Cannabis uses may be approved under this Section until the City Council 93 adopts a licensing process and standards for such uses. Such standards shall include a 94 requirement that indoor cultivation uses provide for an energy offset through a program 95 specified by the City to offset the net increased energy that is used by the Facility as 96 compared to a regular industrial facility, and may include, but shall not be limited to, 97 whether proposed Facilities will provide a percentage of all usable product cultivated at 98 no cost to very low income patients and will use organic methods in cultivation and 99 processing to the maximum extent reasonable; and whether their form of organization, 100 ownership and practices ensure equity and accountability, low prices and an adequate 101 supply of high quality cannabis to Customers.

102 Section 23C.25.030 Cannabis Manufacturing, Testing Labs and Distribution

103 A. Uses such as, but not limited to, testing, processing, and food preparation, that 104 involve cannabis as defined in Chapter 12.21 but do not involve dispensing, client,

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105 patient or member services, or cultivation (other than for testing), shall be evaluated and 106 regulated under this Title without regard to the fact that they involve cannabis.

107 B. Manufacturers, Testing Labs, and Distribution businesses which are licensed as 108 Cannabis Businesses by the State may not be located within 300 feet of a public or 109 private elementary, middle or high school.

110 C. For the purposes of this Chapter, the following Cannabis uses shall be evaluated 111 and regulated for Zoning purposes in the same way as the existing non-Cannabis uses, 112 with the exception of distance buffers from schools:

Cannabis Use Non-Cannabis Use Manufacturing, processing, food Light Manufacturing preparation (“Edibles”) Testing labs Testing labs Distribution Wholesale Uses 113

114

115

116

117

118

119

120

121

122

123

124

125

126

127

128

129

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130 Changes to Definitions (Chapter 23F.04.010)

131 Cannabis Uses: Cannabis uses include retail sales, cultivation, manufacturing, testing, and 132 distributing. See BMC Chapters 12.21 and 12.22 for cannabis regulations and Section 23C.24 133 for land use regulations.

134 Light Manufacturing: Primarily involved in baking, brewing, fabricating, milling, processing and 135 other similar forms of mechanical and chemical treatment. Light manufacturing uses are 136 generally in the following groups in the North American Industrial Classification System 137 (NAICS):

Light Manufacturing Uses NAICS Code

Apparel and Other Textile Mill Products 314 – 33636

Electronic and Electric Equipment, except semiconductors 334412 – 335311, 334413, 333319, 333618, 333992, 335129, 35999

Fabricated Metal Products 332 – 332999

Food Processing 311 – 311999

Furniture and Fixtures 337 – 33792

Industrial Machinery and Equipment 333 – 333999

Instruments and Related Products 334511 – 334518

Leather and Leather Products, except leather tanning 3162 – 316999

Lumber and Wood Products, except logging 321 – 321999

Miscellaneous Manufacturing 339 – 339999

Paper and Allied Products, except paper, pulp and paperboard 3222 – 322299 mills

Perfumes, Cosmetics and Toilet Preparations 325611 – 32562

Printing and Publishing, except publishing without printing 323 – 323122

Rubber and Miscellaneous Plastic Products 326 – 326299

Stone, Clay and Glass Products, except cement 327 – 327215, 32733 –

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Light Manufacturing Uses NAICS Code

327999

Textile Mill Products 313 – 31332

Transportation Equipment 336 – 336999

Cannabis Manufacturing

138

139 Retail Products Store: An establishment engaged in the sales of personal, consumer or 140 household items to the customers who will use such items, including, but not limited to:

Retail Products Stores Comments

Antique Stores Includes Collectibles

Art/Craft Shops

Art Galleries

Art and Craft Supply Stores

Audio/Video Records, Tapes, Disks Sales Excludes video rental stores Shops

Automobile Parts Stores Excludes service of auto parts

Bicycle Shops Includes sales, parts and repair/service

Bookstores, Periodical Stands

Clothing Stores Includes apparel, hats, shoes and accessories

Computer Stores Hardware and software

Drugstores Includes pharmaceutical, sundries, cosmetic/personal care items

Fabric, Textile and Sewing Supply Shops

Flower and Plant Stores Includes live, fresh-cut and/or dried flowers; excludes nurseries

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Retail Products Stores Comments

Food Products Stores, Specialized Includes Bakeries

Food Products Stores, General Includes groceries, markets and supermarkets

Furniture Stores, Household or Office Includes carpets and rugs

Garden Supply Stores, Nurseries Does not include Cannabis Nurseries, see Cannabis Cultivation definition in 12.21.020

Gift/Novelty Shops

Glass Pane and Mirror Stores

Hobby Shops

Household Hardware and Housewares Stores

Household Electronics/Electrical Stores Excludes video rental stores (Audio, Telephone and Video/TV)

Jewelry/Watch Shops

Linen Shops Includes bedding

Musical Instruments and Materials Stores

Office Supply Stores

Paint/Wallpaper Stores

Photography Equipment Supply Stores Includes cameras and film developing

Secondhand Stores Includes used/vintage clothing and household goods

Small Appliance Stores

Sporting Goods Stores Includes equipment, clothing and supplies, excluding Firearm/Munitions Businesses

Stationery, Cards and Paper Goods Stores

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Retail Products Stores Comments

Toy Stores

Variety Stores

141

142

143

144

145

146

147

148

149 Changes to Commercial District and Manufacturing District Use 150 Tables (multiple chapters)

151 Table 23E.36.030 C-1 General Commercial District Provisions: Uses Permitted

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Use Classification Special Requirements (if any) Retail Sales All Retail Sales Uses, except ZC* As defined in Sub-title F, except those listed below otherwise listed (does not include Video Rental Stores) Alcoholic Beverage Retail Sales UP(PH) Includes sale for off-site consumption at including Liquor Stores and restaurants Wine Shops Prohibited within the University Avenue Strategic Plan Overlay (unless in conjunction with a restaurant or general food product store) Department Stores ZC* Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops, including Auction UP(PH) Prohibited within the University Avenue Houses Strategic Plan Overlay Pet Stores, including Sales and UP(PH) Grooming of Animals (but not Boarding) Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapter 12.22 Medicinal-Use Cannabis ZC ZC shall only be issued after business is Retailer approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapter 12.22 Delivery-only Cannabis Retailer ZC, AUP or UP ZC shall only be issued after business is (Adult-use and Medicinal-use) approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapter 12.22

152

153

154

Miscellaneous Uses

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Automatic Teller Machines UP(PH) When not a part of a Retail Financial Service

Cafeteria, Employee or UP(PH) Residential

Cemeteries, Crematories, Prohibited Mausoleums

Columbaria AUP Allowed with a ZC if incidental to a Community and Institutional Use, limited to 400 niches, no more than 5% of the subject property area, and located within the main building

Circus or Carnival UP(PH)

Commercial Excavation UP(PH) Including earth, gravel, minerals, or other building materials including drilling for, or removal of, oil or natural gas

Dry Cleaning and Laundry UP(PH) Plants

Emergency Shelter See Chapter 23C.10.

Up to 25 beds ZC

More than 25 beds UP(PH)

Kennels or Pet Boarding Prohibited

Laboratories, Testing (including AUP** Cannabis Testing)

Mortuaries UP(PH)

Public Utility Substations, Tanks UP(PH)

Radio, Television, or UP(PH) Audio/Sound Recording and/or Broadcast Studios

Warehouses or Storage UP(PH) Prohibited within the University Avenue including Mini-storage Strategic Plan Overlay

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Warehouses

Wireless Telecommunications Facilities

Microcell Facilities, Modifications AUP Subject to the requirements of to Existing Sites, and Additions Section 23C.17.100 to Existing Sites When the Site Is Not Adjacent to a Residential District

All Other Telecommunication UP(PH) Subject to the requirements and findings Facilities of Section 23C.17.100

155

156

157 Table 23E.40.030 C-N Neighborhood Commercial District Provisions: Uses Permitted

Use Classification Special Requirements (if any)

Retail Sales

All Retail Sales Uses, except ZC* As defined in Sub-title F, except those listed below otherwise listed. (Does not include Video Rental Stores)

Alcoholic Beverage Retail Sales UP(PH) Includes sale for off-site consumption at including liquor stores and wine restaurants shops

Department Stores AUP

Over 3,000 s.f. Prohibited

Drugstores ZC* A new or expanded Drugstore is prohibited if it is over 5000 square feet in Gross Floor Area, and within 1000 feet of any property containing an existing Drugstore, as measured by a straight line from the nearest point of the property line of the parcel on which the Drugstore is proposed to the nearest point of the property line of the parcel on which the nearest Drugstore is located.

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Use Classification Special Requirements (if any)

Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use

Pawn Shops, including Auction Prohibited Houses

Pet Stores, including Sales and UP(PH) Grooming of Animals (but not Boarding)

Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park

Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Commented [IS1]: We should say 12.21 and 12.22 in all of these places, right? Medicinal-Use Cannabis ZC ZC shall only be issued after business is Retailer approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Delivery-only Cannabis Retailer Prohibited ZC shall only be issued after business is (Adult-use and Medicinal-use) approved through the selection process OR Subject to the requirements of Section ZC 23C.24 and BMC Chapters 12.21 and 12.22 158

159

160 Table 23E.44.030 C-E Elmwood Commercial District Provisions: Uses Permitted

Use Classification Special Requirements (if any) Retail Sales All Retail Sales Uses, except ZC* As defined in Sub-title F, except those listed below otherwise listed (does not include Video Rental Stores). Alcoholic Beverage Retail Sales, UP(PH) Includes sale for off-site consumption at including liquor stores and wine restaurants

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Use Classification Special Requirements (if any) shops Department Stores ZC* Over 3,000 s.f. Prohibited Drugstores ZC* A new or expanded Drugstore is prohibited if it is over 5000 square feet in Gross Floor Area, and within 1000 feet of any property containing an existing Drugstore, as measured by a straight line from the nearest point of the property line of the parcel on which the Drugstore is proposed to the nearest point of the property line of the parcel on which the nearest Drugstore is located. Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops, including Auction Prohibited Houses Pet Stores, including Sales and UP(PH) Does not include boarding of animals Grooming of Animals Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Medicinal-Use Cannabis ZC ZC shall only be issued after business is Retailer approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Delivery-only Cannabis Retailer ZC, AUP or UP ZC shall only be issued after business is (Adult-use and Medicinal-use) approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22

161

162

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163 Table 23E.48.030 C-NS North Shattuck Commercial District Provisions: Uses Permitted

Use Classification Special Requirements (if any) Retail Sales All Retail Sales Uses, except ZC* As defined in Sub-title F, except those listed below otherwise listed (does not include Video Rental Stores). Alcoholic Beverage Retail Sales, UP(PH) Includes sale for off-site consumption at including liquor stores and wine restaurants shops Department Stores ZC* Over 3,000 s.f. Prohibited Drugstores ZC* A new or expanded Drugstore is prohibited if it is over 5000 square feet in Gross Floor Area, and within 1000 feet of any property containing an existing Drugstore, as measured by a straight line from the nearest point of the property line of the parcel on which the Drugstore is proposed to the nearest point of the property line of the parcel on which the nearest Drugstore is located. Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops, including Auction Prohibited Houses Pet Stores, including Sales and UP(PH) Grooming of Animals (but not Boarding) Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Medicinal-Use Cannabis ZC ZC shall only be issued after business is Retailer approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Delivery-only Cannabis Retailer ZC, AUP or UP ZC shall only be issued after business is

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Use Classification Special Requirements (if any) (Adult-use and Medicinal-use) approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22

164

165

166

167

168 Table 23E.52.030 C-SA South Area Commercial District Provisions: Uses Permitted

Use Classification Special Requirements (if any) Retail Sales All Retail Sales Uses, except ZC* As defined in Sub-title F, except those listed below otherwise listed (does not include Video Rental Stores) Alcoholic Beverage Retail Sales, UP(PH) Includes sale for off-site consumption at including liquor stores and wine restaurants shops No sales of distilled alcoholic beverages are allowed along Adeline Street south of Ashby Avenue Department Stores ZC* Over 3,000 s.f. UP(PH) Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops Prohibited Including Auction Houses Pet Stores UP(PH) Including Sales and Grooming of Animals (but not Boarding) Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Medicinal-Use Cannabis ZC ZC shall only be issued after business is Retailer approved through the selection process

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Use Classification Special Requirements (if any) Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Delivery-only Cannabis Retailer ZC, AUP or ZC shall only be issued after business is (Adult-use and Medicinal-use) UP(PH) approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22

169

170

171 Table 23E.56.030 C-T Telegraph Avenue Commercial District Provisions: Uses Permitted

Use Classification Special Requirements (if any) Retail Sales All Retail Sales Uses, except ZC As defined in Sub-title 23F, except those listed below otherwise listed (does not include Video Rental Stores) Alcoholic Beverage Retail Sales Prohibited Includes sale for off-site consumption at including liquor stores and wine restaurants shops Department Stores ZC Over 3,000 s.f. UP(PH) Drug Paraphernalia (any use Prohibited As defined in California Health and involving the sale or distribution Safety Code Section 11364.5(d) thereof) Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops Prohibited Including Auction Houses Pet Stores UP(PH) Including Sales and Grooming of Animals (but not Boarding) Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Medicinal-Use Cannabis ZC ZC shall only be issued after business is

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Use Classification Special Requirements (if any) Retailer approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Delivery-only Cannabis Retailer ZC, AUP or ZC shall only be issued after business is (Adult-use and Medicinal-use) UP(PH) approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22

172

173

174 Table 23E.60.030 C-SO Solano Avenue Commercial District Provisions: Uses Permitted

Use Classification Special Requirements (if any) Retail Sales All Retail Sales Uses, except ZC* As defined in Sub-title F, except those listed below otherwise listed (does not include Video Rental Stores) Alcoholic Beverage Retail Sales, UP(PH) Includes sale for off-site consumption at including liquor stores and wine restaurants shops Department Stores ZC* Over 3,000 s.f. Prohibited Drugstores ZC* A new or expanded Drugstore is prohibited if it is over 5000 square feet in Gross Floor Area, and within 1000 feet of any property containing an existing Drugstore, as measured by a straight line from the nearest point of the property line of the parcel on which the Drugstore is proposed to the nearest point of the property line of the parcel on which the nearest Drugstore is located. Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops Prohibited Pet Stores including Sales and UP(PH) Grooming of Animals (but not Boarding)

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Use Classification Special Requirements (if any) Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Medicinal-Use Cannabis ZC ZC shall only be issued after business is Retailer approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Delivery-only Cannabis Retailer ZC, AUP or ZC shall only be issued after business is (Adult-use and Medicinal-use) UP(PH) approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22

175

176

177 Table 23E.64.030 C-W West Berkeley Commercial District Provisions: Uses Permitted

Permits Required to Special Requirements Use Establish, Expand or (if any) Change Use (sq. ft.) Retail Sales Retail uses as defined in Sub-title 23F, except otherwise listed. Under 3,500-7 7,500 3,500 ,500 or more All Retail Sales Uses, except ZC AUP UP(PH) **Except when part of a those specified below ** combination commercial/residential use; see Mixed Use Development heading Alcoholic Beverage Retail Sales, UP(PH) Includes sale for off-site including liquor stores and wine consumption at restaurants shops Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use

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Permits Required to Special Requirements Use Establish, Expand or (if any) Change Use (sq. ft.) Pawn Shops, including Auction UP(PH) Houses Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Medicinal-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Delivery-only Cannabis Retailer ZC, AUP or UP(PH) ZC shall only be issued after (Adult-use and Medicinal-use) business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22

178

Miscellaneous Uses Automatic Teller Machines AUP When not part of a Retail Financial Service Cafeteria, Employee or Residential AUP Cemeteries and Mausoleums Prohibited Columbaria AUP Allowed with a ZC if incidental to a Community and Institutional Use, limited to 400 niches, no more than 5% of the subject property area, and located within the main building Circus or Carnival UP(PH) Prohibited in designated nodes. See Section 23E.64.050.C Commercial Excavation Prohibited Including earth, gravel, minerals or other building materials including drilling for, or

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removal of, oil or natural gas Dry Cleaning and Laundry Plants Prohibited Emergency Shelter See Chapter 23C.10. Up to 25 beds ZC More than 25 beds UP(PH) Kennels or Pet Boarding UP(PH) Prohibited on ground floor in designated node Laboratories, Commercial Physical or Prohibited See Section 23E.64.030.C Biological Laboratories, Testing (including AUP if less Cannabis Testing) than 10,000 sq. ft. UP(PH) if more than 10,000 sq. ft. Mortuaries and Crematories UP(PH) Public Utility Substations, Buildings, UP(PH) Prohibited in designated node. See Tanks Section 23E.64.050.C Radio, Television, or Audio/Sound UP(PH) Prohibited on ground floor in designated Recording and/or Broadcast Studios node. See Section 23E.64.050.C Wireless Telecommunications Facilities Microcell Facilities, Modifications to AUP Subject to the requirements and findings of Existing Sites, and Additions to Section 23C.17.100 Existing Sites When the Site Is Not Adjacent to a Residential District All Other Telecommunication UP(PH) Subject to the requirements and findings of Facilities Section 23C.17.100 Light Manufacturing and Wholesale Trade Uses Manufacturing uses prohibited on ground floors in designated nodes. See Section 23E.64.050.C Light Manufacturing and Wholesale Trade Uses (including Cannabis Distributors) 5,000 or less sq. ft. AUP 5,000 sq. ft. or more UP(PH) All Other Manufacturing Uses UP(PH) Warehouses or Storage (including Prohibited Mini-storage Warehouses) 179

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180

181 Table 23E.68.030 C-DMU Downtown Mixed Use Commercial District Provisions: Uses 182 Permitted

Use Classification Special Requirements Retail Sales All Retail Sales Uses, except ZC As defined in Sub-title 23F, except those listed below otherwise listed Alcoholic Beverage Retail Sales, UP(PH) Includes sale for off-site consumption including liquor stores and wine at restaurants shops Department Stores AUP Under 10,000 s.f. ZC Firearm/Munitions Businesses Prohibited Pawn Shops, including Auction UP(PH) Houses Pet Stores, including Sales and UP(PH) Grooming of Animals (but not Boarding) Smoke Shops Prohibited Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Medicinal-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 Delivery-only Cannabis Retailer ZC, AUP or ZC shall only be issued after business (Adult-use and Medicinal-use) UP(PH) is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22

183

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184

Miscellaneous Uses Automatic Teller Machines When not a Part of a Retail Financial Service Exterior UP(PH) Interior AUP Cafeteria, Employee or Residential UP(PH) Cemeteries, Crematories, Mausoleums Prohibited Columbaria AUP Allowed with a ZC if incidental to a Community and Institutional Use, limited to 400 niches, no more than 5% of the subject property area, and located within the main building. Circus or Carnival UP(PH) Dry Cleaning and Laundry Plants UP(PH) Emergency Shelter See Chapter 23C.10. Up to 60 beds ZC More than 60 beds UP(PH) Kennels or Pet Boarding Prohibited Laboratories, Testing (including AUP Cannabis Testing) Mortuaries UP(PH) Public Utility Substations, Tanks UP(PH) Radio, Television or Audio/Sound Recording Studios AUP Broadcast Studios UP(PH) Warehouses or Storage including UP(PH) Mini-storage Warehouses Wireless Telecommunications Facilities Subject to the requirements and findings of Section 23C.17.100 Microcell Facilities, Modifications to AUP Existing Sites, and Additions to Existing Sites When the Site Is Not Adjacent to a Residential District All Other Telecommunication Facilities UP(PH) Subject to the requirements and findings of Section 23C.17.100 185

186

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187 Table 23E.72.030 M Manufacturing District Provisions: Uses Permitted

Permits Required to Establish, Special Requirements Uses Expand or Change Use (sq. ft.) (if any) 20,000 – More Under 20,000 40,000 than 40,000 Manufacturing and Wholesale Trade Construction Products ZC AUP UP(PH) Manufacturing Light Manufacturing ZC ZC UP(PH) Mini-storage Warehouses Prohibited Pesticides, herbicides and Prohibited fertilizers Petroleum refining and Prohibited products Pharmaceuticals AUP UP(PH) UP(PH) Primary Production AUP UP(PH) UP(PH) Manufacturing Semiconductors UP(PH) Warehouses (other than ZC AUP UP(PH) Mini-storage) Warehouse-Based ZC AUP UP(PH) Allowed in Non-Store Retailers Manufacturing, Wholesale Trade or Warehouse. See Section 23E.72.045.A Wholesale Trade ZC AUP UP(PH) Establishments (including Cannabis Distributors) Other Industrial Uses Art/Craft Studio ZC <10,000 AUP UP(PH) Workspaces only, no 10,000 – >20,000 Live/Work permitted. 20,000 Bus, cab, truck and public AUP UP utility depots Commercial Excavation UP(PH) Including earth, gravel, minerals, or other building materials, including drilling for, or removal of, oil or natural gas Contractors AUP UP

100 of 113 ITEM VII.B.7 24 of 29 CANNABIS COMMISSION January 18th, 2018

Dry Cleaning and Laundry ZC AUP UP(PH) No retail service Plants permitted Laboratories, Testing and Prohibited Commercial Biological Research Media Production ZC <10,000 AUP UP(PH) 10,000 – >20,000 20,000 Recycled Materials ZC* AUP UP * If all processing done Processing indoors; if any outdoors, AUP Repair Service (other than ZC AUP UP No retail sales permitted auto repair) Services to Buildings and AUP Dwellings Cannabis Cultivation ZC ZC shall only be issued after business is approved through the selection process

Subject to the requirements of Section 23C.24 and BMC Chapters 12.21 and 12.22 188

189

190 Table 23E.76.030 MM Mixed Manufacturing District Provisions: Uses Permitted

Permits Required to Special Requirements Uses Establish, Expand or (if any) Change Use (sq. ft.) More Under 20,000 – than 20,000 40,000 40,000 Manufacturing and Wholesale Trade Construction Products ZC AUP UP(PH) Manufacturing Light Manufacturing ZC ZC UP(PH) Mini-storage Warehouses Prohibited Changes of Use to Mini Storage Warehouse Prohibited Pesticides, herbicides and fertilizers Prohibited

101 of 113 ITEM VII.B.7 25 of 29 CANNABIS COMMISSION January 18th, 2018

Permits Required to Special Requirements Uses Establish, Expand or (if any) Change Use (sq. ft.) More Under 20,000 – than 20,000 40,000 40,000 Petroleum refining and products Prohibited Pharmaceuticals AUP UP(PH) UP(PH) Primary Production Manufacturing AUP UP UP(PH) Semiconductors UP(PH) Warehouse-Based Non-Store ZC AUP UP(PH) Allowed in Retailers Manufacturing, Wholesale Trade or Warehouse, See Section 23E.76.040.D Warehouses (other than ZC AUP UP(PH) Mini-storage) Wholesale Trade establishments ZC AUP UP(PH) (including Cannabis Distributors) Other Industrial Uses Art/Craft Studio ZC AUP UP(PH) Workspaces only, no <10,000 10,000 – >20,000 Live/Work permitted. 20,000 Allowed in Manufacturing, Wholesale Trade or Warehouse. See Section 23E.76.040.D Bus, cab, truck and public utility AUP UP depots Commercial Excavation UP(PH) Including earth, gravel, minerals, or other building materials, including drilling for, or removal of, oil or natural gas Contractors AUP UP Allowed in Manufacturing, Wholesale Trade or Warehouse. See Section 23E.76.040.D Dry Cleaning and Laundry Plants ZC AUP UP(PH) No retail service permitted Laboratories, Testing and AUP UP UP(PH)

102 of 113 ITEM VII.B.7 26 of 29 CANNABIS COMMISSION January 18th, 2018

Permits Required to Special Requirements Uses Establish, Expand or (if any) Change Use (sq. ft.) More Under 20,000 – than 20,000 40,000 40,000 Commercial Biological Research (including Cannabis Testing) Media Production ZC AUP UP(PH) <10,000 10,000 – >20,000 20,000 Recycled Materials Processing ZC* AUP UP * If all processing done indoors; if any outdoors, AUP Research and Development ZC AUP Change of Use from Warehouse AUP UP(PH) UP(PH) See and Wholesale Trade Section 23E.80.045.A2. Repair Service (other than auto ZC AUP UP No retail sales repair) permitted Services to Buildings and Dwellings AUP 191

192

193 Table 23E.80.030 MU-LI Mixed Use-Light Manufacturing District Provisions: Uses 194 Permitted

Permits Required to Establish, Special Requirements Uses Expand, or Change use by (if any) Floor Area (sq. ft.) More Under 20,000 – than 20,000 30,000 30,000 Manufacturing and Wholesale Trade Increased Permit requirements in locations within 150 ft. of a residential use in either the R or MU-R district. See Section 23E.80.060.D Construction Products UP(PH) UP(PH) UP(PH) Manufacturing Light Manufacturing ZC AUP UP(PH) Mini-storage Warehouses Prohibited Pesticides, Herbicides and Prohibited Fertilizers Petroleum refining and products Prohibited

103 of 113 ITEM VII.B.7 27 of 29 CANNABIS COMMISSION January 18th, 2018

Permits Required to Establish, Special Requirements Uses Expand, or Change use by (if any) Floor Area (sq. ft.) More Under 20,000 – than 20,000 30,000 30,000 Pharmaceuticals AUP UP(PH) UP(PH) Permitted only in locations at least 500 ft. from R or MU-R Districts; see Section 23E.80.060.F Primary Production Prohibited manufacturing Semiconductors and related Prohibited devices Warehouses (other than ZC AUP UP(PH) See Retail Uses for Mini-storage) storage of goods for a retail use Warehouse-Based Non-Store ZC AUP UP(PH) Allowed in Retailers Manufacturing, Material Recovery Enterprise, Wholesale Trade or Warehouse. See Section 23E.80.045.A.1 Wholesale Trade establishments ZC AUP UP(PH) (including Cannabis Distributors) Other Industrial Uses Art/Craft Studios ZC AUP UP(PH) Workspaces only, <10,000 10,000 – >20,000 live/work limited. 20,000 Section 23E.80.030.E. Allowed in Manufacturing, Material Recovery Enterprise, Wholesale Trade or Warehouse. See Section 23E.80.045.A.1. Bus, cab, truck, public utility AUP UP(PH) UP(PH) UP(PH) required if lot is depots over 20,000 sq. ft. regardless of floor area Commercial Excavation UP(PH) Including earth, gravel, minerals, other building materials, drilling for oil or natural gas Contractors AUP UP(PH) UP(PH) Allowed in

104 of 113 ITEM VII.B.7 28 of 29 CANNABIS COMMISSION January 18th, 2018

Permits Required to Establish, Special Requirements Uses Expand, or Change use by (if any) Floor Area (sq. ft.) More Under 20,000 – than 20,000 30,000 30,000 Manufacturing, Material Recovery Enterprise, Wholesale Trade or Warehouse. See Section 23E.80.045.A.1. Dry Cleaning and Laundry Plants ZC AUP UP(PH) Laboratories, Commercial, Physical or Biological using: Class 1 Organisms only UP(PH) Class 2 Organisms UP(PH) Permitted only in locations at least 500 ft. from R or MU-R Districts. See Section 23E.80.060 Class 3 Organisms Prohibited Laboratories, Motion Picture, UP(PH) Photo Processing Laboratories, Testing (including UP(PH) Cannabis Testing) Material Recovery Enterprise UP(PH) Media Production ZC AUP UP(PH) <10,000 10,000 – >20,000 20,000 Recycled Materials Processing UP(PH) If lot is over 20,000 sq. ft. Recycling Redemption Center UP(PH) If lot is over 20,000 sq. ft. Repair Service (other than auto ZC AUP UP(PH) No retail sales permitted repair) Research and Development ZC AUP Change of Use From AUP UP(PH) UP(PH) See Warehouse and Wholesale Section 23E.80.045.A.2. Trade Services to Buildings and AUP Dwellings 195

105 of 113 ITEM VII.B.7 29 of 29 CANNABIS COMMISSION January 18th, 2018

196

197 Table 23E.84.030 MU-R Mixed Use-Residential District Provisions: Uses Permitted

Permit Required to Establish, Uses Special Requirements (if any) Expand or Change Use (sq. ft.) Manufacturing and Wholesale Trade Manufacturing Uses Construction Products Prohibited Manufacturing Light Manufacturing AUP if 5,000 or less; UP(PH) if Subject to the finding under more than 5,000 Section 23E.84.090.K and parking requirements under Section 23E.84.080.B Primary Production Prohibited Manufacturing Warehouses Mini-storage Prohibited Warehouses Warehouses or UP(PH) See Retail Uses for Storage of Goods Storage for a Retail Use; also see parking requirements under Section 23E.84.080.B Wholesale Trade AUP if 5,000 or less; UP(PH) if Subject to parking requirements; see (including Cannabis more than 5,000 Section 23E.84.080.B Distributors) 198

199

106 of 113 ITEM VII.B.8 1 of 2 CANNABIS COMMISSION January 18th, 2018

Sections 23E.16.070 and 23E.72.040 will be deleted. Many of the Sections/Subsections will be modified and placed in a new chapter: 23C.25. See comments to determine the new location of information contained within Sections/Subsections.

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2 Section 23E.16.070 Medical Cannabis Uses

3 A. 1. Subject to the licensing requirement of paragraph 3, six medical cannabis 4 dispensaries as defined in Section 12.26.030 shall be permitted as of right with a 5 Zoning Certificate in C-prefixed zones if they comply with the parking requirements 6 applicable to the uses they include, and any security requirements promulgated by 7 the Chief of Police. When applicable, Zoning Certificates for medical cannabis uses 8 shall be issued without undue delay and following normal and expedient 9 consideration of the permit application. Commented [GE1]: See 23C.25.010.F

10 2. Medical cannabis dispensaries may not be located within 600 feet of another 11 medical cannabis dispensary or a public or private elementary, middle or high 12 school. It is the intent of the voters that the Council not adopt buffer zones from 13 additional uses absent a compelling necessity. Commented [GE2]: See 23C.25.010.B

14 3. No new medical cannabis dispensary may be approved under this Section until 15 the City Council adopts a licensing process and standards for medical cannabis 16 dispensaries. Such standards may include, but shall not be limited to, whether 17 proposed dispensaries will provide a percentage of all usable product dispensed 18 at no cost to very low income patients and will provide product that is produced 19 using organic methods; and whether their form of organization, ownership and 20 practices ensure equity and accountability, low prices and an adequate supply of 21 high quality medical cannabis to their members.

22 B. A medical cannabis dispensary existing and authorized as of January 1, 2010, that 23 does not comply with this Section, may continue at its current medical cannabis 24 dispensing location and shall be considered a legal nonconforming use. 25 Notwithstanding Section 23C.04.060 or subdivision (A)(2) of this Section, the Zoning 26 Officer may approve an Administrative Use Permit to allow the expansion of a legal 27 nonconforming medical cannabis dispensary use on any parcel or on two adjacent 28 parcels where a dispensary was located on one of the parcels as of July 1, 2010. Commented [GE3]: See 23C.25.010.D

29 C. Uses such as, but not limited to, testing, processing, and food preparation, that 30 involve medical cannabis as defined in Chapter 12.26 but do not involve dispensing, 31 client, patient or member services, or cultivation (other than for testing), shall be 32 evaluated and regulated under this Title without regard to the fact that they involve 33 medical cannabis, except that no commercial facility used for medical cannabis food 34 preparation may be used for the preparation of any other type of food. (Ord. 35 7501-NS § 1, 2016; Ord. 7161-NS § 6, 2010: Ord. 7068-NS § 4 (part), 12/08/08) Commented [GE4]: See 23C.25.030.A

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36 Section 23E.72.040 Medical Cannabis Cultivation

37 A. Notwithstanding anything to the contrary in this Chapter, cultivation of medical 38 cannabis as defined in Chapter 12.26, Chapter 12.27 and the State’s Medical 39 Marijuana Regulation and Safety Act shall be permitted as a matter of right with a 40 Zoning Certificate in the M District, subject to the following limitations: 41 1. Such locations shall be limited to licensed medical cannabis organizations. 42 2. Medical cannabis may not be dispensed, and client, patient or member services 43 are prohibited, at such locations. 44 3. No single location used for cultivation and associated uses by a licensee may 45 exceed 22,000 square feet, except that separate spaces used by different 46 licensees may be aggregated on the same location. 47 4. The total area used for medical cannabis cultivation shall not exceed 180,000 48 square feet. Commented [GE5]: See 23C.25.020.A 49 B. Such locations shall comply with security regulations promulgated by the Chief of 50 Police, and the requirements of this Chapter, and shall not be located within 600 feet 51 of a private or public elementary, middle or high school. Such locations may include 52 testing, processing, manufacturing and food preparation, if permitted by the State’s 53 Medical Marijuana Regulation and Safety Act. Commented [GE6]: See 23C.25.020.C

54 C. No medical cannabis uses may be approved under this Section until the City Council 55 adopts a licensing process and standards for such uses. Such standards shall 56 include a requirement that indoor cultivation uses provide for an energy offset 57 through a program specified by the City to offset the net increased energy that is 58 used by the facility as compared to a regular industrial facility, and may include, but 59 shall not be limited to, whether proposed facilities will provide a percentage of all 60 usable product cultivated at no cost to very low income patients and will use organic 61 methods in cultivation and processing to the maximum extent reasonable; and 62 whether their form of organization, ownership and practices ensure equity and 63 accountability, low prices and an adequate supply of high quality medical cannabis 64 to their members. (Ord. 7464-NS § 1, 2016: Ord. 7161-NS § 7, 2010) Commented [GE7]: See 23C.25.020.D

108 of 113 1 of 1 ITEM VIII.A CANNABIS COMMISSION January 18th, 2018

APPROVED 2018 Commission Meeting Dates

Name of Commission: Medical Cannabis Commission

Commission Secretary: Elizabeth Greene

2018 Meeting Dates

Month Meeting Day and Date Time Month Meeting Day and Date Time January 2018 Thursday, 1/18/18 2:00 PM July 2018 Thursday, 7/12/18 2:00 PM

February 2018 Thursday, 2/1/18 2:00 PM August 2018 NO MEETING

March 2018 Thursday, 3/1/18 2:00 PM September 2018 Thursday, 9/13/18 2:00 PM

April 2018 Thursday, 4/5/18 2:00 PM October 2018 Thursday, 10/4/18 2:00 PM

May 2018 Thursday, 5/3/18 2:00 PM November 2018 Thursday, 11/1/18 2:00 PM

June 2018 Thursday, 6/7/18 2:00 PM December 2018 NO MEETING

109 of 113 ITEM VIII.B 1 of 1 CANNABIS COMMISSION January 18th, 2018

November 18, 2017

Dear Members of the City Council,

The Cannabis Commission would like to commend Councilmember Worthington’s proposal to pass through the consent calendar the ordinance to "Adopt an Ordinance to Amend BMC 12.27 to Allow Existing Berkeley Licensed Medical Cannabis businesses into the new state adult use regulations and taxation system." Furthermore, we would like to remind the City Council that we strongly recommend they consider and pass the existing draft delivery-only ordinance.

Sincerely, The Cannabis Commission

110 of 113 ITEM IX.A CANNABIS COMMISSION 1 of 2 January 18th, 2018 Greene, Elizabeth

From: Courtney Allen-Gentry Sent: Monday, January 08, 2018 6:50 AM To: Greene, Elizabeth Subject: Cannabis Commission

Dear Berkeley Cannabis Commission, Equity is a vitally important issue in a city as diverse as Berkeley - I commend the efforts of the Cannabis Commission to develop equity guidelines for the rollout of cannabis businesses generated by the new legal cannabis market. However, I would like to draw attention to the need for equity and diversity in public health education and population based public health interventions from culturally competent providers of color, like myself, who are especially equipped and knowledgeable about the multiple health disparities impacting Berkeley’s communities of color and immigrant population. As a public health nurse and long time Berkeley resident particularly knowledgeable about health disparities and cannabis as it pertains to vulnerable and at risk populations, I implore you to also consider the need for equity in the micro businesses involved in aspects of the cannabis market not directly involving cultivation, distribution or formulation of cannabis products. As an Black Nurse Educator competing with large corporations for recognition and funding in public heath education, job development and training, I ask that the Commission consider equity in funding from the 15% excise tax for public health education which will be made available to local jurisdictions in the coming months. As the only Black nurse in the country with board certifications as an Advanced Holistic Nurse and Advanced Holistic and Integrative Nurse Coach and public health nurse, I implore you to consider the need to support the business endeavors of people of color like my own Integrative Nursing Center, The Center for Integrative Nursing and Cannabinoid Sciences www.cincs.org. As a black nurse who was forced to sue San Francisco State University for discrimination in order to graduate, I can attest to the multiple daily levels of discrimination, obstruction and suppression of the work of highly innovative and qualified people of color, like myself within established and highly respected professions. We must face, every single day a level of aggression and racism which is a constant drain of energy and often prevents us from doing the job of protecting and providing for the public health of this country by delivering culturally competent and knowledgable care. Please consider equity for micro businesses operating on the perimeter of the legal market, especially when it comes to public health, education and jobs training and development. And especially for funding opportunities which directly promote the public health and education of vulnerable communities by professionals of color. We still have a long way to go and I sincerely hope the Commission is committed to the process of Social Justice and Equity in all aspects of the legal cannabis market and especially in the public health and education of its most vulnerable populations.

Sincerely yours,

Courtney Allen-Gentry, RN MSN PHN AHN-BC HWNC-BC CHTP-A 402.210.5238

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111 of 113 ITEM IX.A CANNABIS COMMISSION 2 of 2 January 18th, 2018 www.cincs.org LinkedIn: courtneyallengentry Twitter: @CINCSciences Facebook: cincs.org www.isodiol-courtney.com

Courtney Allen-Gentry, MSN RN PHN AHN-BC HWNC-BC, is an Advanced Holistic and Integrative Public Health Nurse Coach, Independent Cannabinoid Nurse Scholar, Thought Leader, Educator, Advocate and Author.

www.cincs.org

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112 of 113 ITEM IX.B CANNABIS COMMISSION 1 of 1 January 18th, 2018 Berkeley, What’s the Difference? - Google Docs Page 1 of 1

What’s the Difference?

The difference is cash. One of these stores attracts other retailers, the other repels them. Cash transactions make Berkeley’s dispensaries shady and blight-friendly. Cash causes customers to drive on by. And cash makes it easy to skirt the law, depriving the City of its fair share. The following is a proposal to eliminate cash from Berkeley’s marijuana operations, increasing revenue and transparency and, ultimately, making our City’s streets safer and more appealing.

Our plan is called Berkeley Marijuana Cash (“BMC”). BMC complies with all aspects of federal law and the Cole Memo. The City of Berkeley acts as the central bank for all dispensary transactions. Customers register with the CIty and remit their payments directly. Dispensary operators are paid in cash, minus applicable City taxes at City facilities, away from the dispensary. The result is a safer customer experience.

Contact [email protected] for more information.

Who’s Behind this Plan? Kenneth Berland . Ken is a lawyer and technologist who has worked with Connie Rice in LA and clerked for the United States Sixth CIrcuit. He was the first engineer at startup Grand Rounds and currently works for Amazon.

mhtml:file://G:\LANDUSE\Boards and Commissions\MCC\Reports & Memos\2018\01-18... 1/11/2018

113 of 113 Late Communications CANNABIS COMMISSION January 18, 2018

2018 Year of CA Cannabis Legalization - Past, Present, Future! By Charley Pappas

This year's transition to implementing the Adult Use of Marijuana Act (AUMA-Prop 64, 2016) and its various implications should be viewed in perspective. To start, the nearly ninety years of cannabis demonization (still a schedule I narcotic-United States law) linger despite California's approval and legalized use of medical cannabis, since 1996 (Compassionate Use Act-Prop 215). The past (history) of cannabis-shows centuries of medical cannabis applications and particularly when Dr. William Brooke O'Shaughnessy (1809-1889) introduced cannabis to modern Western medicine. Dr. O’Shaughnessy gave a lecture at the Medical and Physical Society of Calcutta, to a group of students and scholars in 1839. His forty-page dissertation displayed his new and systematical approach to modern pharmaceutical research. Thorough in every way, Dr. O’Shaughnessy’s report included an analysis of the known history of medicinal cannabis uses by physicians in India and the Middle East. In 1914 with cocaine and heroin outlawed in the United States, Harry Anslinger, became the first commissioner of the Federal Bureau of Narcotics, which laid the ground work for the modern-day DEA, and he became the first architect of the war on drugs. Consequently, Anslinger made it his mission to rid the United States of all drugs, including cannabis. His influence played a major role in the introduction and passage of the Marijuana Tax Act of 1937, which outlawed possessing or selling marijuana. Fast forward to the near past of cannabis-when marijuana use by musician, beatniks, 1960's and youth counterculture increased and spread marijuana popularity. In the early 1980's cannabis received acknowledgment for its medicinal qualities treating HIV, AIDS patients in San Francisco. At that time surely local heroes included: Mary Jane Rathburn, widely recognized as , a volunteer at San Francisco General Hospital, who became known for illegally baking and distributing cannabis brownies to AIDS patients; with activist (who established the San Francisco Cannabis Buyers Club, first medical cannabis dispensary in United States), Rathburn lobbied for the legalization of cannabis for medical use, and she helped pass San Francisco Prop P (1991) and California Prop 215 (1996); also- Donald I. Abrams, M.D., has long been interested in clinical trials of complementary and alternative medicine interventions for HIV/AIDS and cancer, including evaluations of medicinal marijuana, as first inspired by Rick Doblin in 1992. He is one of the original clinician/investigators to recognize and define many early AIDS- related conditions. Currently at SF General and UCSF Medical.

Additional near past of cannabis deserving mention and notice: – the “growing” Emerald Triangle (Humboldt, Mendocino, Trinity counties) outdoor marijuana cultivation efforts and operations, which received various degrees of coordinated local state and federal attacks (CAMP-campaign against marijuana production) from late 1970's to the present; – indoor marijuana cultivation strain creation/production has increased exponentially over the last three decades (see -“Ask Ed Rosenthal”); 2018 Cannabis, page 2 Late Communications CANNABIS COMMISSION January 18, 2018

– advanced cultivation efforts, results and amounts with a growing demand have created California's largest cash crop, untaxed, unregulated; – thus, the so called underground (“black market”) industry existing and going strong; – this illegal activity resulting in bloated federal, state prisons, county and local jails packed with non violent “drug offenders”. Moving right along, the near present of cannabis certainly begins: statewide passage, – Compassionate Use Act, 1996 passed by 55.6% California voters, “allows patients with valid doctor's recommendation, and patients' designated Primary Caregivers, to possess and cultivate marijuana for personal medical use”, a court defense arrests still possible; – beside the pre-existing San Francisco Cannabis Buyers Club, Champ dispensary (Californians Helping Alleviate Medical Problems) opened in SF, closed by 2007 through IRS action; – by 2005 in operation over 50 SF dispensaries, unregulated untaxed without existing permit process, numerous neighbor complaints prompted SF Board of Supervisors to enact dispensary licensing moratorium April 1 until regulations formulated; – in Oakland (i.e. Oaksterdam) Oakland Cannabis Buyers Club provided medicine until DEA closure, Jeff Jones/Angel Raich loosing a Supreme Court case in 2001; – in 2002 Berkeley allowed 3 locations miscellaneous use business permits becoming dispensaries still existing; – over 20+ additional Oakland dispensaries were operating until June 2004; – February 2004, after a trans gender teen center located between two dispensaries wrote Bush White House, “the scourge of drug abuse affecting teenagers in downtown Oakland” Oakland City Council with City Manager recommendation limited Oakland dispensaries to 4 still operating de facto monopolies; – June 2004 Berkeley status quo monopoly of 3 continued after Mayor and City Council moratorium “fearing a parade of pot clubs moving to Berkeley”. – disabled activist, Richard Lee, opened Oaksterdam University 2007, DEA raided in 2012 but reopened under new management; – statewide, 2003 sb420 Medical Marijuana Program Act passed state legislature: – with state ID program, mandatory possession/cultivation minimums for qualified patients, ability for patients/caregivers to collectively/cooperatively organize (including transportation, sales), but only a court defense arrests still possible; – July 2008, CA Attorney General Guidelines “security and non-diversion of marijuana grown for medical use... set standards for patients, caregivers, collectives, cultivators and all CA medical cannabis businesses...” issued with absence of further existing state regulations, generally a closed loop system of patient/caregiver coop members producing medicine only sold to other coop members. Some loose ends completing the near present of cannabis: – by 2004 a few Los Angeles dispensaries open; – 2 or 3 years later, 800+ existed, a classic lack of local political oversight; – localities and counties statewide ban or hesitate to permit dispensaries/cultivation

2018 Cannabis, page 3 e.g. San Diego, San Bernadino, Bakersfield, Fresno, Long Beach, Monterey, Contra Costa, Marin Counties; Late Communications CANNABIS COMMISSION January 18, 2018

– Sacramento allows permitting, Santa Cruz, San Jose begrudgingly with problems; – January 1, 2006 more positively SF Board of Supervisors approve cannabis regulations, permitting process; – by 2009 reduction, only 25 licensed, permitted SF medical cannabis dispensaries; – September 2011 begins most unfortunate “federal crackdown”; – by July 2012, 10 to 12 SF dispensaries closed, threatened landlord forfeitures; – 2011, 2012 lack of SF Mayor, City Attorney attention and support; – July 2012 Berkeley Patients Group closed; – 2012, in federal court battle Harborside Oakland receives support, City Attorney, Morrison Foerster law firm; – by 2012 end, 100+ California dispensaries closed; – lack of attention, support from Governor Brown, AG Kamala Harris. Arriving to this decade's present state of cannabis-the disappointing failures of 2010 California Prop 19, cannabis legalization (53.5 no, 46.5 yes) and California Assembly bills ab473,1874 (2013,14) were superseded with the passage of several California assembly bills (2015-17) and Adult Use Marijuana Act Prop 64, 2016 approval (57% yes, 43% no): In 2015, Medical Marijuana Regulation & Safety Act (MMRSA) ab243,266, sb643 “creates a comprehensive state licensing system regulating commercial medical cannabis cultivation, manufacturing, distribution, transportation, sales, and testing”; In 2016, Medical Cannabis Regulation & Safety Act (MCRSA) sb837, ab21, ab2516, ab 2679 includes state agencies (CA Dept of Food & Agriculture CDFA, CA Bureau of Consumer Affairs, CBCA, CA Dept of Public Health, CDPH) with oversight by the Bureau of Medical Cannabis Regulation (BMCR) “authorizes a person who obtains both a state license under MCRSA and the relevant local license to engage in commercial medical cannabis activity pursuant to those licenses”; 2016 passage, Prop 64 voter initiative, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), “legalized non medicinal adult use of cannabis; established California’s framework for the licensing, regulation, and enforcement of commercial non medicinal cannabis activity; and set a date of January 1, 2018, for the Bureau to start issuing licenses”, legalizes home grows 6 plants, 1 oz bud, 8 gms resin, adult sharing, regulated production, sales, its tax funds restorative justice and environmental restoration. June 2017, California State Legislature passes a budget trailer bill, sb 94, integrating MCRSA with AUMA, creating the Medicinal & Adult-Use Cannabis Regulation & Safety Act MAUCRSA; September 2017, BMCR renamed Bureau of Cannabis Control (BCC) “a single regulatory system governing the cannabis industry (medicinal, adult-use). MAUCRSA charges the Bureau with licensing, regulation, and enforcement of the following types of commercial cannabis businesses: distributors, retailers, micro businesses, temporary cannabis events, and testing laboratories, and provides the beginning of issuing licenses on January 1, 2018”. Summarizing the 2016-17 regulatory proposal, formation process, the BMCR, became the BCC, and the statewide regulatory agencies governing cannabis CDFA, CDPH, 2018 Cannabis, Page 4 CDCA, CWCB (water control board), CDFW (fish, water life), CAL/OSHA diligently organized a continued series of comprehensive workshops throughout California dealing with and discussing the complexities of regulating cannabis. The proposed regulations of Late Communications CANNABIS COMMISSION January 18, 2018 the Bureau and the respective agencies received a great deal of public attendance, attention, comment and input at the statewide workshops. A final regulatory system with various licensing categories did go into effect January 1, 2018. While these efforts are commendable, important, their success as yet undetermined. Past and existing California cannabis cultivators, now estimated producing 80% United States' supply, shouldn't be expected to go quietly into the night from underground black market activities to statewide regulation!?! Likewise, smaller cultivators, micro businesses, cottage industries, collective/cooperative activity serving primarily medical cannabis patients, deserve whatever increased inclusive solutions possible. See nearly 15 years of California medical cannabis regulation (mostly problem free operations, save federal intervention), with a reasonable amount of local and statewide political oversight. Inherent problems and practical obstacles albeit, the future of cannabis should be viewed with encouragement. Despite state Bureau continued emphasis, there has been an obvious lack of attention and regulatory improvement from local jurisdictions, delaying decisions, and too often “waiting for future state regulation”. Certainly, in some areas great progress can be pointed to (Palm Springs, San Diego, Monterey and other counties reversing cultivation, dispensing bans). More liberal areas (SF, Oak., Berkeley, Santa Cruz, Sacto, San Jose, LA) could be criticized for not having heeded the state Bureau and regulatory agencies strongly suggesting local jurisdictions enact local ordinances relevant and in conjunction to those proposed in MAUCRA, with a January 1, 2018 revision/completion date. How can Bakersfield and Fresno, Marin and Contra Costa counties continue their lack of availability and services, their overbearing restrictions regarding cannabis? And, considering its cannabis past and present, surprisingly San Francisco could not offer legal cannabis sales until January 6. About the future of cannabis? Like the underside of an iceberg, the numerous realities and considerations for the present state of cannabis, pre and post legalization in California require careful difficult analysis before further implementation and prediction. The regulatory integration and inclusion of most (or largest possible majority) of the existing California cannabis growers, is a worthwhile, if distant goal. Simply speaking storefront businesses are more easily regulated, governed than decades long rural agricultural operations, under the radar and untaxed. Likewise, the realities of transportation, distribution, edible/concentrate manufacturing, micro businesses, cottage industry, collective/cooperative activity-interaction are additional licensing categories, areas, (many specifically serving medical patients) that must be thoroughly reviewed and considered. These categories through licensing complication, costs, deserve and should receive realistic regulation reflection, adjustment for greater increased inclusion and more efficient implementation, when at all possible. In conclusion with January 1, 2018 having arrived, the future of cannabis can begin analysis, review, prediction. Unless you are suffering a several days hangover from a non cannabis stimulant, you surely cannot have escaped local statewide and national news coverage, highlighting the dawn of legalized . To so very many 2018 Cannabis, page 5 Californians, those last several words are an inspiration! Just witness the throngs of customers (no longer patients?) reported at various dispensary locations with temporary legalized sales permits (Berkeley, Oakland, LA, San Jose). Will medical cannabis Late Communications CANNABIS COMMISSION January 18, 2018 dispensaries turn commercial and then most likely become for profit!?! Indeed, there is a sunnier, grass is greener (double-entendre), side of the street for many fortunate existing businesses, and other (cultivators, distributors, manufacturers) with a leg up in the complex dual (local/state) permitting process necessary to sling cannabis legally, after January 1, 2018 in California. At the outset of California legalization, observations can start, results compiled and eventual conclusions drawn. For several different reasons, real facts and possibilities, not withstanding existing situations and difficulties, the future of cannabis must be viewed altogether positively. Currently legal or medicinal in 29 states and the District of Columbia, the legalization of cannabis is favored by 66% of United States' citizens, according to Americans For Safe Access. There are dark clouds emanating from United States Attorney General Sessions' negative cannabis statements/prosecutorial threats, and also from a few California politicians, fearful state law enforcement officials, and several newspapers. The beleaguered former's hollow threats and the latter's “chicken little-like” worries for increased DUI arrests and tragedies will not withstand “the light of day”. Cannabis legalization exposure, attention, reporting and focus is certainly most welcomed now by a “desperate for good news stories” media and public! How significant when vociferously, enthusiastically our Mayors, state elected officials, even our lieutenant governor attend, or weigh-in and comment about, their local dispensaries' legalized cannabis (flashmob-like) opening sales, on camera? The political hunger for notice and attention, surely portend a greater acceptance, tolerance and understanding for long demonized cannabis, and its more recent previous medicinal rebirth. So presently emerging from out of the shadows, the future of cannabis is here, to be recreationally savored. In short, California cannabis legalization has been riding a de facto incremental reality curve upward between the passages of propositions 215 (1996) and 64 (2016). The final successful implementation and completion of state wide legalization is within reach upon the majority incorporation and inclusion of our currently burgeoning, long existing cannabis cultivation operations, production, and distribution. Good luck and good fortune to producers, regulators, patients, customers, and citizens/voters. The rescheduling of federal cannabis law will be our future coup-de-gras.

Cannabis Heroes' Bios Brownie Mary - Mary Jane Rathburn (December 22, 1922 – April 10, 1999) was an American medical activist. As a hospital volunteer at San Francisco General Hospital, she became known for illegally baking and distributing cannabis brownies to AIDS patients. Rathburn was arrested on three occasions, with each arrest bringing increased local, national, and international media attention to the medical cannabis movement. Her grandmotherly appearance generated public sympathy for her cause and undermined attempts by the district attorney's office to prosecute her. The City of San Francisco eventually gave Rathburn permission to distribute cannabis brownies to people with AIDS. Her arrests generated interest in the medical community 2018 Cannabis, page 6 and motivated researchers to propose one of the first clinical trials to study the effects of in HIV-infected adults.

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Dennis Peron is a gay American medical cannabis and LGBT activist and businessman who was the figurehead for the throughout the 1990s influencing many in California and thus changing the political debate of marijuana in the United States. He grew up on Long Island, served in the Air Force in Vietnam and moved to the Castro, San Francisco, where he became an active Yippie and organized smoke-ins. Later, he sold cannabis, cofounded the Cannabis Buyers Club, and coauthored California Proposition 215. His marijuana business was busted by authorities in 1978 and 1990. In 1996, Dan Lungren, state attorney general, ordered another bust of Peron's club. Proposition 215 was passed soon thereafter, which allowed the club to reopen. Later in 1996 The of fielded Dennis Peron, as their first Presidential nominee, in the U.S. presidential election. Peron received 5,400 votes. In 1998, Peron ran in the Republican primary for California governor against his rival Lungren (who won the primary and lost the election to Gray Davis). Peron has voiced support for of all marijuana useas he believes the herb is medicinal just as food is and thus should be available to those who want to benefit from it. However, he did not believe medical use for marijuana was acceptable for kids. Peron opposed California Proposition 19 (2010) because he does not believe that recreational use of marijuana exists and that all people who use marijuana are using it medicinally. Donald I. Abrams, M.D., A.B. Molecular Biology Brown University 1972, Stanford University School of Medicine graduate in 1977, currently chief Hematology- Oncology Division, San Francisco General Hospital and Professor Clinical Medicine, University of California San Francisco, has an Integrative Oncology consultation practice at UCSF Osher Center for Integrative Medicine- Upon Internal Medicine residency at the Kaiser Foundation Hospital San Francisco, he became fellow Hematology/Oncology at Cancer Research Institute University of California, San Francisco, 1980. He completed a placebo- controlled study of smoked cannabis in patients with painful HIV- related peripheral neuropathy as well as a study evaluating a vaporization, smokeless delivery system for medicinal use. His last NIDA- funded trial investigated possible pharmacokinetic interaction between vaporized cannabis and opioid analgesics in patients with chronic pain. With Andrew Weil, he co-authored a chapter on Cannabinoids and Cancer in Oxford University Press Integrative Oncology text, also co-edited.

Prologue-This essay is in response to many queries regarding California cannabis legalization in 2018. Rather than specific future predictions, I have attempted to list cannabis elements, issues and facts of the past and present with their relevance and importance to the future of cannabis after legalization. For this future, my personal belief is the necessity of inclusion for the valuable and successful cultivation, production manufacturing and distribution efforts presently and previously applied. In short, from early 20th century cannabis demonization, the future of cannabis must continue and increase the insights, progress, and perspectives since. Following the past 20 years' rediscovery and the further renewal of its medical applications, the normal regulated and reasonable availability of legalized, "recreational" cannabis should favorably proceed. Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018

Comprehensive Cannabis ordinances-

- page 6,7 Documents to be revised or created - Of the noted chapters, 12.25 & 12.27 have extensive redundancies. These redundancies are being removed & the chapters consolidated into Chapter 12.22. Chapter 12.23, along with portions of 12.25 & 12.27 will become Chapter 12.21. Existing Chapter 12.26 does not change. The new chapters are included as Attachments C & D. One additional BMC chapter, 20.XX is proposed for regulating cannabis advertising (Attachment E). - Versions of deleted chapters with references to the new location of existing information are also attached (Attachment F). - ZO: The Zoning Ordinance currently includes Cannabis use regulations in two chapters: 23E.16 & 23E.72 (M District). This information will be consolidated into a new Chapter: “Cannabis Uses” (23C.25). This chapter, along with minor changes to use tables in Commercial & Manufacturing districts & a new Definition (Cannabis Uses), are included in Attachment G. The original language Chapters 23E.16 & 23E.72 is included in Attachment H.

page 8 Next Steps in Approval Process - HAC & the CHC will review specific components of proposals at respective meetings (Feb 1, 2018 & Feb 22, 2018) & may provide feedback to the Council. The CC & PC will provide recommendations to the Council on all or portions of the cannabis proposals: Cannabis Commission: Recommendations on the draft BMC, ZO & selection process. Anticipated Timeline: January 18th & February 1st meetings. - Planning Commission: Recommendations on the draft ZO. Anticipated timeline: February 7th & February 21st meetings. - All four commissions will hold public meetings to review the proposals & will provide an opportunity for public comment. - Council consideration: Based on the commission schedule above, the Council could consider the draft proposals, recommendations & other feedback at a meeting between April 24th & May 15th. - Attachments: A. 7-25-17 Council referral (without attachments) B. Matrix of existing & proposed ordinances/regulations C. Draft BMC Chapter 12.21 D. Draft BMC Chapter 12.22 E. Draft BMC Chapter 20.XX (Advertising) F. Existing BMC chapters related to cannabis with changes G. Draft ZO changes H. Existing ZO sections with changes

- page 9,10,11 Commercial Cannabis Regulations and Licensing - BACKGROUND: Existing Berkeley law contains no provisions for any sort of non-medical cannabis business structure. Proposition 64, the Adult Use of Marijuana Act, which passed statewide with 57% of the vote, & in Berkeley with 83.5%, permits local governments to establishing licensing in advance of state regulations for recreational cannabis. The proposed ordinances, based in large part on current Berkeley medical rules, would: - Empower the City Manager to determine if the Commercial Cannabis Organization is in compliance with Berkeley rules. - Not reduce the rights of qualified patients & primary caregivers, or individuals over 21 as authorized by AUMA, to access & personal cultivation. COLLECTIVES -Prohibit the City from issuing new dispensary licenses until January 1, 2020, to ascertain demand

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- Existing and Proposed Cannabis Regulations PAGE 2 - page 11,12 Retail: Medicinal Use - Selection process / MBAP (Resolution 66,711- N.S.) TBD, / see Selection Process section - Changes in ownership / No regulations / No recommendation yet - Quota limit / N/A / Limit of 12, (ZO 23C.25.010.G) Quota limit / None (recommended Cannabis Comm) / 10 (recommended staff) (ZO Selection process / No recommendation regarding discretionary review (Planning Commission) / Same selection process as other Retailers - Retail: Adult Use- Quota limits / N/A / Limit of 12, (ZO 23C.25.010.G) - Retail: Delivery only- Location / All C-prefixed districts except C-N (recommended by Planning Comm) / All C-prefixed districts & in M-prefixed districts as an ancillary use to another cannabis business (recommended by staff) (ZO 23C.25.010.H.2) - Quota limit / None (recommended Cannabis Comm) / 10 (recommended staff) (ZO 23C.25.010.H.1) - Selection process / No recommendation regarding discretionary review (Planning Commission) / Same selection process as other Retailers. - Delivery-specific requirements- Vehicle & driver / insurance, signage, deliveries only to residence or business of Member. Only applied to delivery-only dispensaries / Same, but deliveries can only be to a residence. Regulations will apply to any Retailer making deliveries to patients. (BMC 12.22.040.H)

- page 13,14 Cultivation- Quota limit / 180,000 sf cap on all commercial cultivation in city. (No decision on numeric quota for businesses) (ZO 23E.72.040.A.4) / 180,000 sf cap still applies. - - - Numeric limit of 6 for businesses between 10,001 sf & 22,000 sf. No numeric limit for businesses under 10,000 sf, but 180,000 cap applies (ZO 23C.25.020.A.4, 5 & 6) - Buffer / 600’ away from schools with K-12 students (ZO 23E.72.040.B) / 300’ away from schools with K-12 students (ZO 23C.25.020.C) - Selection process / Yes, but no decision on type / Yes - Nurseries / Not mentioned / Businesses applying for a State Nursery permit must obtain the specific permits required for cultivation use at the site. (BMC 12.21.020 - Microbusiness / Not called out in ordinance as a separate use. Businesses applying for a State microbusiness permit must obtain the specific permits required for the individual uses at the site. Any use that is included at a microbusiness site must meet the same requirements (location, buffer, quota, selection, security, etc) as if the use was a sole operator. (BMC 12.21.020) Considerations for adult use permitting important

- page 15,17 General for all businesses- Ownership/profit status Must operate as a collective & not-for-profit (State law, BMC 12.25.090.B.1, 12.27.090.B.1) / Removed both requirements - Records/reporting requirements / Dispensaries and cultivators must report financial records to verify taxes, not-for-profit status & 2% to low-income distribution, & convictions (BMC 12.25.090, 12.27.090) Expanded to all cannabis businesses / Removed reference to not-for-profit status, & reporting of convictions. (BMC 12.21.050) - Ranking / Allocation Council may establish a selection process for dispensaries & cultivators (BMC 12.25.100, 12.27.100) / Expanded to all Retailers & Major Cultivators. Minor changes to language. (BMC 12.22.020) – Authority of City Manager / BMC 12.23.040, 12.25.120, 12.27.150 / Added subsection to allow City Manager to require businesses to obtain operating permits from Fire, Toxics & other divisions as necessary to ensure public safety. (BMC 12.21.080, 12.22.160) Late Communications CANNABIS COMMISSION January 18, 2018

PAGE 3 - Growing in backyards / Patients can grow up to 10 plants in backyard – more if on rooftop or balcony not visible from other properties / Not mentioned, allowed per State law - Residential collectives / Allowed (BMC 12.27.120- 130) / Staff recommends to continue allowing Residential collectives with additional regulations per the State (BMC 12.22.120-140) - Taxes / Medical = 2.5% Non-medical = 10% / No recommendation yet - Selection Process / (equity, community benefit requirements, etc.) No recommendation yet - Not-for-profit / All dispensaries & cultivators must operate on a not for profit basis. (12.25.090.B.1 and 12.27.090.B.1) / Only collectives must operate on a not-for-profit basis. (12.22.130.D) - Operating Permit / The City Manager/Council may authorize regs to administer Chapter (12.25.140 & 12.27.140) Operating permits for all cannabis businesses may be required by the City Manager (12.21.080.C and 12.22.160.C)

- page 19 CANNABIS BUSINESSES: GENERAL REGULATIONS Chapter 12.21 (fmr 12.23) - Definitions - X. “Microbusiness” shall have the same meaning set forth in MAUCRSA, as amended from time to time. Y. “Nursery” means an individual or entity required to be licensed as a Type 4 Cultivator pursuant to MAUCRSA, as amended from time to time, & includes “Class 1 Nursery” & “Class 2 Nursery,” defined as follows: - 1. “Class 1 Nursery” means a nursery that does not produce mature, flowering plants, such as cuttings or clones. - 2. “Class 2 Nursery” means a nursery that produces mature plants with flowers for the purpose of producing seeds, whether for distribution to a Retailer or for research purposes. A Class 2 Nursery may also produce cuttings or clones. - DD. Retailer 3. "Delivery-Only Retailer” is a Retailer that is limited to acquiring Cannabis & delivering it to its Qualified Patients, Primary Caregivers, & adult consumers, & does not have a location to which Qualified Patients, Primary Caregivers, & adult consumers may come to acquire Cannabis or any other good or service.

- page 27,28 -12.21.080 Authority of City Manager - A. The City Manager or his or her designee shall have authority to determine the nature of any Cannabis Business or purported Cannabis Business & whether that entity complies with any of the requirements of this Chapter, Chapters 12.22 and 12.26, & Title 23, and to conduct inspections as provided in Chapter 1.16. - B. The City Manager or his or her designee may promulgate regulations for the administration & implementation of this Chapter, including, but not limited to, regulations relating to non-diversion, record-keeping, & tracking & tracing 10 of 11 ITEM VII.B.3 CANNABIS COMMISSION January 18th, 2018 27 of 113 Cannabis. - C. The City Manager or his or her designee may require any Cannabis Business to obtain operating permits from the City of Berkeley Fire Department, Toxics Management Division, Environmental Health Division, & any other department or division. - D. The City Manager or his or her designee shall have authority to enter onto private property & perform such inspections as may be necessary or convenient to implement & enforce this Chapter, Chapters 12.22 & 12.26, & Title 23, & to adopt regulations to implement this Chapter, Chapters 12.22 and 12.26, and Title 23. Request

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- page 29,30 CANNABIS BUSINESS OPERATING STANDARDS Chapter 12.22 PAGE 4 - Selection Process 12.22.020 The Council may by resolution establish procedures & criteria for accepting applications to operate Retailers or Major Cannabis Cultivators and determining which, if any, to approve. Eligibility requirements - A. No Principal of any business of a certain license type may be a Principal for any other business of a different license type in the City of Berkeley, except that a State “M” licensee may also be a State “A” licensee of the same license type.

- page 34 Distributors 12.22.050 - A. Distributors must obtain operating permits from & are subject to inspections by the City of Berkeley Environmental Health Division. - B. Distributors must arrange for the testing of Cannabis & Cannabis Products consistent with the City of Berkeley testing procedures specified in Section 12.27.100 of this Chapter until such time as testing procedures specified by the Bureau of Cannabis 252 Control are available & conducted locally.

- page 35 Manufacturers 12.22.060 - A. All Manufacturers must obtain operating permits from & are subject to inspections by the City of Berkeley Environmental Health Division

- page 36 Cultivation - A. Cultivators must obtain operating permits from & are subject to inspections by the City of Berkeley Environmental Health Division. - B. Cultivator license types shall be the same as defined in MAUCRSA, with the exception of Type 4 Cultivation, as defined in Section 12.21.020. - C. Cultivators may only provide Cannabis or Cannabis Products to other Cannabis Businesses that are permitted by State & local authorities & compliant with State & local law. Exceptions? - E. Class 2 Nurseries must track the amount of, & disposition of, flower remaining after seed harvesting. - 12.22.090 Microbusinesses- Microbusinesses must obtain separate City-issued operating permits for each activity conducted on the premises.

- page 37,38 Limitations on Collective operations 12.22.120 Incidental to the residential use of property in residential zoning districts, & only acquires & provides Medicinal Cannabis to Qualified Patients and Primary Caregivers, Collectives shall comply with the following operating limitations: - A. Collective no more than 5 Member trips per day per location, excluding trips by residents. - B. Cash on hand shall be minimized, & no more than $1000 may be retained overnight per location. - C. Each Collective may not operate at more than four (4) residential locations in Berkeley, & may not store or maintain at any site at any time more than a combined total of 10 pounds of dried Medical Cannabis and concentrates, of which no more than 1 pound may be concentrates. - D. Collectives may not allow Member visits to obtain Medical Cannabis except for social purposes before 8:00 a.m. or after 9:00 p.m. - E. No alcohol may be served for consideration. - F. No consideration may be charged for entry into the Collective or any part of the residence in which the Collective is located, no live entertainment may be provided, & no entertainment of any sort may be provided for consideration. - G. Smoking of Medical Cannabis by non-residents is prohibited in all exterior areas of Collectives. - K. Collectives must consist of Members who are Berkeley residents. - L. All cultivation of Medical Cannabis must be conducted at the residential collective location(s). Late Communications CANNABIS COMMISSION January 18, 2018

PAGE 5 - M. All Edibles must be produced at the residential collective location(s) & base ingredients must conform to items on the most recent CA Dept of Public health’s Approved Cottage Foods list. - O. Primary Caregivers may retrieve Medicinal Cannabis or Medicinal Cannabis Products for their Qualified Patient that is unable for medical reasons to retrieve Medicinal Cannabis or Medicinal Cannabis Products from the collective. Convenience delivery services are expressly prohibited. - P. On an annual basis, collectives shall pay the annual operating fee established by the City Council & obtain an Operating Permit from the City of Berkeley Environmental Health Division. Permittees may be subject to inspection by the City of Berkeley Environmental Health Division. - Q. Collectives may not manufacture concentrated Medicinal Cannabis products by means of any pressurized gas or flammable solvent whether volatile or non-volatile. - 12.22.130 Operating standards for Collectives- Collectives- comply with the following provisions. - A. Membership. - 1. No person other than a Member may cultivate Medicinal Cannabis on behalf of a Collective. - 2. The scale of cultivation by or on behalf of a Collective shall be proportional to its Membership. - 4. Prospective members advised in writing, prior- membership, as follows: "WARNING: Cannabis is not tested by local, state or federal governmental agencies for health, safety, or efficacy. There may be health risks associated with the consumption of Cannabis or Cannabis Products." - B. Collectives shall take all practicable steps necessary to prevent & deter diversion of Medicinal Cannabis to non-Members. Collectives must limit access to Medicinal Cannabis to authorized personnel only, must maintain an inventory management system that: - 1. Accounts for all Medicinal Cannabis dispensed to Members; - 4. Capable producing summary showing the information necessary to verify non-diversion. - C. Dispensing. - 1. Collectives may not dispense to any person who is not a Member & may not dispense without first verifying membership. - 2. Collectives may not provide more Medicinal Cannabis for a Member than is necessary for the personal medical use of the Qualified Patient for whom the Medicinal Cannabis is intended, & may not dispense more than one ounce of dried Medicinal Cannabis per day per Patient: - 3. Collectives may not distribute free samples outside of the Collectives’ premises. - D. Finances. - 1. Collectives shall operate on a Not-for-Profit basis. Sale of Medicinal Cannabis to cover anything other than reasonable compensation & reasonable out-of-pocket expenses is explicitly prohibited. To the extent they provide goods or services not related to Medicinal Cannabis, Collectives need not operate on a Not-For-Profit basis. - 2. Collectives with more than 25 members shall make their financial records available to the City on an annual basis. Such audited records shall be limited to information necessary for the City to determine the not-for-profit status of the organization & shall include information on staff/principal compensation.

- page 40,41,42,43 E. Operations. Collectives shall maintain the following information & make it available to the City within 30 days of the end of each calendar year. - 1. The total number of members during the year; - 2. The total amount of revenue collected during the year; - 3. The consideration paid for each Batch; - 4. Monetary & non-monetary contributions from Members; - 5. Total monetary & non-monetary distributions to Members other than Medicinal Cannabis Products or Edibles dispensed for monetary consideration; Late Communications CANNABIS COMMISSION January 18, 2018

PAGE 6 - 6. Salaries & overhead; & - 7. Complete list- types of Medicinal Cannabis, Medicinal Cannabis Products & the prices thereof - G. Before obtaining business license pursuant required by Chapter 9.04, a Collective must obtain an inspection from the City or authorized City representative that any cultivation or processing of Medical Cannabis that it intends to undertake at a given site will not pose a fire hazard. - Product Safety and Quality Assurance for Collectives 12.22.140- Collectives with more than 25 members shall test all Medicinal Cannabis & Medicinal Cannabis Products, & specified compounds shall be quantitated, as set forth in this Section. - B. The quantitative information required by subdivision A shall be printed on labels for all Medicinal Cannabis as set forth in the following table. - C. Medicinal Cannabis shall be tested for contaminants as set forth in the following table. Medicinal Cannabis that contains more than the permissible levels may not be provided to any Member or any other person, & shall either be destroyed or returned to their source(s). - D. Baked goods, such as cookies and brownies, shall be exempt from testing for contaminants. These products remain subject to testing for potency, as required for the label information of this Section, & must use Medicinal Cannabis that has been tested for contaminants. - E. Collectives shall maintain a written or computerized log documenting: - 1. the date, type, and amount of Product tested; - 2. the source(s) of any contaminated Medicinal Cannabis; - 3. Report containing results of testing, including name & level of substance detected; & - 4. the disposition of the Medicinal Cannabis from which the contaminated sample was obtained, including the amount & the date and manner of disposition. Such logs shall be maintained for at least one year & made available to the City upon request. - F. Packaging & Labeling for Medicinal Cannabis. - 1. Medicinal Cannabis that is made available to members shall be contained in packaging that bears labels containing the following information, in addition to any other information that a Collective may choose to provide or that may be required by law: - a. the name & contact information for the Collective; b. the weight; - c. the quantity of compounds as set forth in subdivision B; d. the date of manufacture or production; & e. a complete list of ingredients. - G. Collectives 25 + members- regulations, Preparation, Packaging & Labeling of Edibles. - d. Certified Food Handler. A Member who produces Edible Medicinal Cannabis Products must be a State certified food handler. - 4. Packaging of Edibles. a. All Edibles shall be individually wrapped at the original point of preparation. A label indicating the nature of the product shall be distinctly & clearly legible on the front of the package. Additional label information must include: (i) a warning if nuts or other known allergens are used; (ii) a warning that the item is a medication containing Medicinal Cannabis the total weight (in ounces or grams) & amount of Active Ingredients in the package; (iii) the date of manufacture; (iv) a statement that the contents are not a food product; and (v) information indicating any caloric impact on the patient. The package label must have a warning clearly legible emphasizing that the product is to be kept away from children. A recommendation - 5. Producers of Edibles that are not tested for contaminants shall maintain a written or computerized log documenting: a. The source of the cannabis used in each batch of product; b. The contaminant testing date; and c. The testing facility for the cannabis. - H. This Section shall apply only to Collectives.

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PAGE 7 - page 55,58,59 MEDICAL CANNABIS CULTIVATION Chapter 12.25 3 - G. Dispensing and Consumption of Medical Cannabis, Tobacco and Alcohol. - 2. Sale or consumption of tobacco is prohibited at Facilities. - C. Medical Cannabis & Medical Cannabis Products shall be tested for contaminants as set forth in the following table. Medical Cannabis & Medical Cannabis Products that contain more than the permissible levels may not be provided to any Member or any other person, & shall either be destroyed or returned to their source(s) at the option of the owner.

- page 78,79 CANNABIS USES Chapter 23C.25 - Cannabis Cultivation Section 23C.25.020 - A. Notwithstanding anything to the contrary in this Chapter, cultivation of cannabis as defined in Chapters 12.21 & 12.22 & MAUCRSA, shall be permitted as a matter of right with a Zoning Certificate in all M-prefixed zones, subject to the following limitations: - 1. Such locations shall be limited to licensed Cannabis Businesses. - 2. Cannabis may not be dispensed, & client, patient or member services or retail sales are prohibited, at such locations. - 3. No single location used for cultivation & associated uses by a licensee may exceed 22,000 square feet of total canopy area, except that separate spaces used by different licensees may be aggregated on the same location. - 4. Up to six Major Cultivation Facilities between the size of 10,000 sf & 22,000 sf in total canopy area are permitted. - 5. There is no numeric limit for Cannabis Cultivation Facilities under 10,000 sf in total canopy area. These uses are limited by the total area permitted for cannabis cultivation set forth in subsection 23C.25.020.A.7 minus the area available for Major Cultivation Facilities. - 6. Outdoor commercial cultivation is prohibited. - 7. Total canopy area cannabis cultivation shall not exceed 180,000 square feet. (23E.72.040.A) - B. Cannabis nurseries, as defined in Chapter 12.21 are considered Cannabis Cultivation uses and are subject to the same regulations as Cultivators. - C. Such locations shall comply with all regulations in Chapter 12.XX, security regulations promulgated by the Chief of Police, and the requirements of this Chapter, & shall not be located within 300 feet of a private or public elementary, middle or high school. Such locations may include testing, processing, manufacturing and food preparation only to the extent expressly permitted by MAUCRSA. - D. No Cannabis uses may be approved under this Section until the City Council adopts a licensing process and standards for such uses. Such standards shall include a requirement that indoor cultivation uses provide for an energy offset through a program specified by the City to offset the net increased energy that is used by the Facility as compared to a regular industrial facility, & may include, but shall not be limited to, whether proposed Facilities will provide a percentage of all usable product cultivated at no cost to very low income patients and will use organic methods in cultivation & processing to the maximum extent reasonable; & whether their form of organization, ownership & practices ensure equity & accountability, low prices & an adequate 101 supply of high quality cannabis to Customers.

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January 18 Meeting / Ideas for 2018 Berkeley Cannabis Commission Focus: by Charley Pappas

- Comprehensive Cannabis ordinances- Staff report; While reviewing packet attachments (a.-h.), I highlighted areas of importance and agreement, as well as noting disagreement...The ordinance work and composition are thorough and practically speaking complete, ready for our commission approval and recommendation. Perhaps my review speed the process.

- cultivation selection / licensing process; long overdue since BCC ordinance passage (1/31/17)

- delivery only dispensary & nursery ordinance, selection licensing process; existing businesses!

- collective / cooperative (private, residential) discussion; past, present & future with respect to state "sundowning"

- micro businesses, cottage industry; consider local and state regulation

- possible new city regs adult use; various concerns- zoning, commercial outlet number, consumption lounges, tourism cannabis "state of the city",

- improving the cannabis status quo; faster review, new ordinances, m-zone expansion equity concerns, definition, qualification, less restrictive inclusive regulation, existing underground businesses

- Apothecarium relocation; commission purpose statement "recommend to City operational & safety standards- Medical Cannabis Collectives & Dispensaries... consult with any individual, organization, affiliation, collective, cooperative other entity... seeks to open a new Medical Cannabis Collective or dispensary in Berkeley or relocate an existing Medical Cannabis Collective or dispensary."

- 40 Acres; discussion status, existing & future operations in Berkeley

Commission Facilitation Possibilities

- ways suggestions for commission empowerment a) Mayor /BCC interaction, increased communication b) Citi Manager, City Attorney interaction, input, meeting involvement c) Subcommittee function d) Dispensaries, cannabis businesses interaction and input d) city wide seasonal commission newsletter

- Brown Act clarification for commissioner contact facilitation, info sharing, between meetings

- Staff meeting minutes or earlier summary, provided to commissioners asap, would be helpful to inform respective council members Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018 Late Communications CANNABIS COMMISSION January 18, 2018