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MEETING OF THE CANNABIS COMMISSION City Hall Thursday, November 16, 2017 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. October 5, 2017 Draft Action Minutes (Attachment) IV. Planning Staff Report V. Chairperson’s Report VI. Subcommittee Report VII. Discussion and Action Items A. Discuss and identify topics that could be included in new cannabis ordinance. Three attachments: 1. List of topics to consider 2. Existing cannabis regulations 3. Delivery-only dispensary regulations recommended by the Cannabis Commission B. Adopt calendar for 2018 CC meetings. One attachment: 1. Draft 2018 calendar C. Discuss and possibly vote on a cultivation licensing and selection process. One attachment: 1. Overview of Berkeley’s cultivation licensing and selection memos from Charley Pappas 2. Overview of nurseries memos and regulations from other jurisdictions from Charley Pappas D. Ideas for the next meeting. VIII. Information Items (In compliance with the Brown Act, no action may be taken on these items; however, they may be discussed and placed on a subsequent agenda for action): A. Late item for Council Worksession, 10-10-17 B. Planning Commission Open House flyer C. Responses to 7-13-17 Commission questions related to Council cultivation referral 1 of 108
Transcript
Page 1: AGENDA - Berkeley, California...Nov 16, 2017  · a 45-day moratorium on new MCD applications to update the licensing process”. (Lampach/Brewster). The motion carried 5-0-1-3. (Ayes:

MEETING OF THE

CANNABIS COMMISSION

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

AGENDA

I. Call to OrderA. Roll Call and Ex Parte Communication DisclosuresB. Changes to Order of Agenda

II. Public Comment

III. Approval of MinutesA. October 5, 2017 Draft Action Minutes (Attachment)

IV. Planning Staff Report

V. Chairperson’s Report

VI. Subcommittee Report

VII. Discussion and Action ItemsA. Discuss and identify topics that could be included in new cannabis ordinance. Three

attachments:1. List of topics to consider2. Existing cannabis regulations3. Delivery-only dispensary regulations recommended by the Cannabis Commission

B. Adopt calendar for 2018 CC meetings. One attachment:1. Draft 2018 calendar

C. Discuss and possibly vote on a cultivation licensing and selection process. Oneattachment:1. Overview of Berkeley’s cultivation licensing and selection memos from Charley

Pappas2. Overview of nurseries memos and regulations from other jurisdictions from Charley

PappasD. Ideas for the next meeting.

VIII. Information Items (In compliance with the Brown Act, no action may be taken on theseitems; however, they may be discussed and placed on a subsequent agenda for action):A. Late item for Council Worksession, 10-10-17B. Planning Commission Open House flyerC. Responses to 7-13-17 Commission questions related to Council cultivation referral

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IX. Correspondence A. Daniel Kosmal - Granting temporary adult use licenses for existing manufacturing businesses B. Charley Pappas - e-mail to Councilmember Worthington C. Charley Pappas - Commission recommendations for Council, 11-4-17 D. Charley Pappas – correspondence to Council_11-1-17

X. Late Communications A. Charley Pappas – November Social Events B. CDFA Cultivation – Application training session dates C. 23C.16.060 Zoning Ordinance Language D. Charley Pappas – Local Adult use Permitting E. Charley Pappas – Medical Cannabis Cultivation Licensing & Selection F. Charley Pappas – Delivery-Only Dispensing – Ordinance/Licensing & Selection G. Charley Pappas – Nursery Ordinance – Licensing & Selection H. Rick Kelley Solidarity Nursery Cooperative as Existing Nursery I. BCC to release Cannabis Regulations J. BCC to release Medical & Adult Use Cannabis Regulations Email K. Draft Council Item from Kriss Worthington

XI. 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, California, 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.

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MEETING OF THE MEDICAL CANNABIS COMMISSION

City Hall Thursday, October 5, 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, Cooper, Rice, Lampach, Ferguson-Riffe, Pappas (arrived 2:17).

Absent: Jones (excused), Carlisle (unexcused), Cable (unexcused).

Staff Present: Secretary Elizabeth Greene, Sydney Stephenson, Mark Sproat.

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 September 14, 2017 Minutes and June 1, 2017 Minutes

Motion/second to approve the June 1, 2017 minutes (Rice/Lampach). The motion carried 5-0-1-3. (Ayes: Pappas, Ferguson-Riffe, Brewster, Cooper, Rice. Noes: None. Abstain: Lampach. Absent: Carlisle, Cable, Jones.)

Motion/second to approve the September 14, 2017 minutes with Approved changed to Draft Minutes and amend Pappas’ comment about SF moratorium to “SF passed a 45-day moratorium on new MCD applications to update the licensing process”. (Lampach/Brewster). The motion carried 5-0-1-3. (Ayes: Pappas, Lampach, Brewster, Cooper, Rice. Noes: None. Abstain: Ferguson-Riffe. Absent: Carlisle, Cable, Jones.)

IV. Planning Staff Report

There are four late items for this meeting, 3 from Pappas and 1 is a Council

Action from Tuesday, October 3rd meeting.

The Council’s action from Tuesday added language to allow temporary

licenses to existing cannabis businesses.

Reminder of the Council Worksession on Tuesday, October 10.

V. Chairperson’s Report

Reminder of the Council Worksession on Tuesday, October 10.

Vice Chair Pappas heard news of a mobile dispensary on Telegraph Ave.

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Vice Chair Pappas reported that Dan Rush is being sentenced for 3 counts.

VI. Subcommittee Report

There was no subcommittee meeting.

VII. Discussion and Action Items

A. Discussion and vote on additional topics to be included in a supplemental Commission communication to Council for the October 10th work session. Public Comment: No public comments. The Cannabis Commission (CC) discussed the key topics that would be included in the supplemental material given to the Council at the Worksession. They discussed the allowance of for-profit cannabis businesses, equity language, and expansion of cultivation.

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 provide a late item for the Council Worksession with the following three topics: (Rice/Ferguson-Riffe) 1. For-profit should be permitted; 2. Expansion of cultivation beyond the M District is necessary; and 3. The Commission supports the development of policies that lead to equity or

diverse ownership for all cannabis license types. The motion carried 6-0-0-3. (Ayes: Pappas, Ferguson-Riffe, Lampach, Brewster, Cooper, Rice. Noes: None. Abstain: None. Absent: Carlisle, Cable, Jones.)

There was general agreement that Chair Lampach would write the late item and represent the Commission at the Worksession.

B. Discussion regarding nursery referral from Councilmember Worthington.

Public Comment. Two public comments. The comments mentioned that existing nurseries should be addressed first because they can provide clones and seeds for personal cultivation. In addition, clones should be allowed at dispensaries. Vice Chair Pappas made a motion to include in the late item for Council a fourth item to emphasize the need for nursery licenses. Motion not seconded; motion failed.

C. Update on State process.

Public Comment: No public comments. Staff presented the State updates on recreational regulations. Medicinal and Adult-use can be located on same property, and multiple license types can be located in the same building.

D. Staff responses to Commission questions from July 2017 meeting Public Comment: No public comments.

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Staff reported that they are developing a list of what youth centers would be included in Berkeley. Places that have actual youth clubs or organizations located at them would count as a youth center, e.g. recreational centers, YMCA, the skate park, etc. Daycare centers will also count, as long as they aren’t a family daycare (less than 14 children in a home). Under state law, nurseries are included as a cultivation license type. Staff also reminded the Commission that staff will be developing the adult-use and medicinal comprehensive regulations, which then will be reviewed and commented on by the Cannabis Commission and the Planning Commission. The goal is to get the regulations finished as quick as possible, thus there might only be a few commission meetings to review the regulations. The Commission asked if Staff could research how many parcels are greater than 15,000 square feet in the M District.

E. Discussion regarding incorporating equity into selection process

Public Comment: No public comments. This topic was already discussed during Item VII.A.

F. Ideas for next meeting. Public Comment: No public comments. The Commission suggested the following items for the next agenda: 1. Discussion of questions from July Commission meeting regarding Council’s

memo on cultivation, with responses from Councilmember Harrison’s office; 2. Information on those uses in the City, particularly the Harrison Homeless Center,

which might be considered a youth center by the State. 3. Discussion regarding Delivery-only dispensaries and cultivation regulations. 4. Discussion regarding the option of combining nurseries and cultivation uses.

X. Adjournment

Motion to adjourn at 3:56. Four late items were distributed at the meeting:

Commissioners in attendance: 6 of 9 Members of the public in attendance: Approximately 16 Public comments: 4 Length of meeting: 1 hour and 46 minutes APPROVED: _________________________________________ Elizabeth Greene Medical Cannabis Commission Secretary

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From: [email protected] on behalf of daniel ! <[email protected]>Sent: Wednesday, October 11, 2017 12:01 PMTo: Greene, ElizabethSubject: Temp Rec Licenses for Existing Manufacturing Business

Elizabeth and Commission,

The presentation before the City Council last night was quite impressive , and I thought taken well, and I commend your obvious hard work.

The City Council seemed to approve the concept of allowing EXISTING MANUFACTURING LICENCEES to be granted temporary or "grandfathered in" COMMERCIAL RECREATIONAL LICENCES so that we would be able to apply for State temporary Recreational Cannabis Manufacturing licences that will become available Jan 1st.

Apparently, temporary commercial licenses have already been approved by the Council for dispensaries, but manufacturing businesses were somehow not included. As I mentioned to the Council, our business and other Berkely manufactureres will be severly disadvantaged if we cannot apply for State rec licence when the program begins Jan 1st. The State license application requires a local license that permits Commercial Recreational sales, and if we were to wait until spring 2018 when the Berkeley Rec ordinances are scheduled to be released, we would not be able to apply for a State Rec licence until after that. It would be very difficult to get our products on the shelves comming into the Rec market so late, and dispensaries that already carry our products, including Berkeley dispensaries, will have to remove our products from Commercial sales because they were not made by a "Commercial Cannabis Manufacturer".

Please let me know if there is anything I can do to make sure this crucial exeption for Berkely to license EXISTING MEDICAL CANNABIS MANUFACTURES to be issued temporary or "grandfathered" in COMMERCIAL RECREATIONAL MANUFACTURING LICESES procedes in a timely manner, so that we can apply for a State licence in November.

Thank you kindly, Daniel Kosmal Doc Greens Healing Collective

On Oct 5, 2017 5:17 PM, "Greene, Elizabeth" <[email protected]> wrote:

Hello –

You are receiving this information because you have expressed interest in cannabis issues in Berkeley.

The City of Berkeley will discuss recreational cannabis at a work session next week:

Tuesday, October 10, 2017

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6:00 PM

Council Chambers, 2134 Martin Luther King Jr. Way

The packet is available on the City’s webpage under the agenda packet for the October 10, 2017 Special meeting: https://www.cityofberkeley.info/Clerk/City_Council/City_Council__Agenda_Index.aspx.

Sincerely,

Elizabeth Ruess Greene, AICP

Senior Planner

City of Berkeley Planning and Development Department

1947 Center Street, 2nd Floor

Berkeley, CA 94704

Phone: 510-981-7484

Fax: 510-981-7420

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From: Charles Pappas <[email protected]>Sent: Monday, October 09, 2017 6:02 PMTo: Berkeley Mayor's Office; Wengraf, Susan; Worthington, Kriss; Bartlett, Ben; Harrison,

Kate; Droste, Lori; Maio, Linda; Sophie Hahn; Cheryl District 2 Davilla; Charles PappasCc: Greene, Elizabeth; David Lampach; Karen M. RICE; Elgstrand, StefanSubject: Mayor / BCC Workshop- Comprehensive Cannabis Regulations, Oct. 10, 2016Attachments: D LETTER.odt; BCC LETTERS.odt; DEL SF TF BK.odt; SF TL DIS DEL.odt; CA TR DEL.odt; BK

CULT REGS CP.odt; DEL ORD CONS.pdf; JUNE JULY.odt

Preface:

As a 15 year local medical cannabis activist, serving on the medical cannabis (now just cannabis) commission since 2011, I welcome the opportunity provided by the Mayor's requested workshop for comprehensive cannabis regulations. Indeed, the commission has responded with a letter of further recommendations; in the short 3 minutes allotted, our commission chairman David Lampach will attempt to offer a brief presentation involving complicated issues, some too long overlooked, delayed. Besides resolving adult use regulations, I hope as our elected officials you can finally complete equally comprehensive cultivation licensing delivery only dispensary and nursery ordinance / licensing.

re: BCC 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 City Manager & Cannabis Commission- proposed local ordinances- establish process, Commercial Cannabis operations licensing process, permitted by Prop 64, Adult Use of Marijuana Act. Council requests- City Manager & Cannabis Commission report to City Council on its recommendations on regulations & commercial cannabis businesses licensing before end of 2017. BACKGROUND: Existing Berkeley law contains no provisions for non-medical cannabis business structure. Prop 64, Adult Use of Marijuana Act, passed statewide 57% of- vote, & Berkeley 83.5%, permits local governments- establish licensing in advance of state regulations for recreational cannabis. The proposed ordinances, based in large part on current Berkeley medical rules, would: etc. ... Opposed by Cannabis Commission- see Recommendations for Comprehensive Cannabis Regulation in Berkeley / letter from Cannabis Commission- Mayor BCC, October 6, 2017 - Empower the City Manager to determine if the Commercial Cannabis Organization is incompliance with Berkeley rules. - Prohibit City from issuing new dispensary licenses until January 1, 2020, to ascertain demand.- Prohibit smoking on site & within 50 ft Dispensary but, to extent State law permits, permit ingestion, smoking or vaporizingon site if restricted to persons over 21, not visible from any other public place, & so long as alcohol and tobacco sales orconsumption are not permitted on site.

Considerations:

Please accept a few overview statements beyond legalization regulation. There is an unfortunate lack of licensing for voter mandated (2010) medical cannabis cultivation, an absence of delivery only dispensary ordinance / licensing (requested by Mayor Bates- June 2016), nursery considerations, and the unacceptable continuance of status quo with 3 monopolistic dispensaries in 15 year operation. With the only true locally owned new dispensary Amoeba's, Berkeley Compassionate Care Collective, opening perhaps by next spring (2018!), I can only judge the March 2015 application process as a failure. For the sake of medical cannabis patients, Berkeley citizens, community and voters change must occur! A cultivation

licensing process, which should have happened years ago, will eventually provide lower priced, quality medicine, and revenue from so many currently existing underground cultivation operations, many of whom have attended and expressed their opinions at numerous commission and subcommittee meetings. Equal participation has come from a dozen locally operating delivery only dispensary and nursery operators, expressing valuable input and insights regarding ordinance and licensing. To me, it speaks loudly at our commission meetings, the attendance and public comment from the un permitted underground

cannabis business' versus the absence of local and recently (1 yr + ) newly approved MCD owners / representatives.

Hopefully tomorrow night's workshop will accomplish comprehensive legalization regulation as well as at least beginning to solve / resolve the other issues above certainly worth your further review and action. I will provide (attached) several relevant documents. Thank you for your attention and consideration.

Yours truly, Charley Pappas

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ITEM IX.A CANNABIS COMMISSION

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To: Berkeley Cannabis Commissioners From: Charley Pappas – vice chairman Subject: Commission Meeting Agenda 11/17/17 Date: November 4, 2017

Concerns: Cultivation licensing, delivery only dispensary/nursery ordinance & licensing, existing permitted cannabis businesses wholesale recreational product distribution & permitting; commission recommendations for Mayor & Council for possible December approval

My Dear Fellow Commissioners, After several ex parte conversations with Council member Worthington, I am of the opinion that there is enough interest and direction from himself and other council members to discuss review and adopt finally cultivation licensing, as well as delivery only/nursery ordinances and licensing, and make provisions for existing cannabis businesses recreational transition. Also, I believe chairman David has been told by the Mayor that he would prefer comprehensive cannabis regulation before next Spring, which time frame staff and the city manger had suggested. Of course I feel the above possibilities to be exciting, perhaps equally as our existing dispensaries to service recreational clients by January 1, 2018. We have been successful regarding the latter; to achieve the former, due diligence on our part will be required. I hope to include enough material (ordinance/licensing regulations) in our meeting packet so that our commission approve recommendations for the council. Please make your best efforts to review thoroughly the packet before hand, and your additional input as late items could help and would be appreciated. Council member Worthington has said he will review packet language for what he plans to include in his agenda considerations for the council, and that way it would be indeed possible for ordinance and licensing approval before January 1, 2018. Let's hope so!

Best regards, Charley Pappas

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ITEM IX.C CANNABIS COMMISSION

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From: Charles Pappas To: Jesse Ar ; Berkeley Mayor's Office ; Kate Harrison ; Susan Wengraf ; Ben District 3 Bartlett ; Councilmember Linda Maio ; Lori Droste ; Sophie Hahn ; Kriss Worthington ; Kriss Worthington ; Jesse Ar Assistant Stefan Elgstrand ; City Manager ; "[email protected]"; Cheryl ; C. Manager Sent: Wednesday, November 1, 2017 Subject: My public comment- BCC meeting 10/31/17, item #30 moved to consent

30. Short-Term Referral to the City Manager, a Process for Relocation of a Permitted Cannabis DispensaryFrom: Councilmember WorthingtonRecommendation: Refer to the City Manager to approve a process for the relocation of Apothecarium, a cannabis dispensary with validpermits.Financial Implications: MinimalContact: Kriss Worthington, Councilmember, District 7, 981-7170

Dear Mayor and Council Members, Thank you for your prompt attention and "consenting" to a speedy consideration of Apothecarium relocation. As a cannabis commissioner, I would approve their relocation and opening with neighborhood and council district support. Indeed, one of this group's local principals has attended and significantly participated for several years in nearly 80- 90% of commission meetings and subcommittee meetings. As a Berkeley citizen and long time cannabis activist, I am certainly looking forward finally to major change in the status quo when a new dispensary opens. In conclusion, again as a cannabis commissioner, I urge our elected officials to continue your focus on cannabis issues, particularly before this year ends- passing delivery only dispensary ordinance/licensing, nursery ordinance/licensing, cultivation licensing process and licensing for existing permitted cannabis businesses to facilitate recreational wholesale distribution of their products (topicals, tinctures, edibles, oils). Hopefully, the cannabis commission can discuss and produce language and recommendations for the above at our November meeting to provide for your consideration and approval. Best regards, Charley Pappas- vice chairman Berkeley Cannabis Commission

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ITEM IX.D CANNABIS COMMISSION

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TO: Medical Cannabis Commission

FROM: Elizabeth Greene, Medical Cannabis Commission Secretary

SUBJECT: Points for Discussion: Cannabis Ordinance Topics

DATE: November 16, 2017

The Cannabis Commission will review draft cannabis ordinance(s) at the beginning of

the year. Below are categories of major topics that will be in the ordinance(s).

Staff recommends that the Commission use this list to generate a discussion of issues

that the Commission feels are important to consider in the ordinance(s). This list is not

meant to be inclusive; topics not included on this list can also be discussed.

Licenses: Issues for all license types:

Definitions

Records/Reporting

Operating Standards (Security, Neighborhood Compatibility, on-site

consumption/lounge)

Licenses: Issues for specific license types:

Cultivation

Dispensaries

Manufacturing (volatile/non-volatile)

Microbusinesses

Distribution

Are different regulations/approvals needed for adult use and medicinal

businesses (such as delivery-only, other)?

Other issues:

Buffers (around license types, around sensitive uses, size of buffers)

Quotas

Selection process

Equity

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Enforcement for non-licensed businesses

Odors

Nurseries

Lounges

Residential Collectives

Regulations to protect minors

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Chapter 12.23MEDICAL CANNABIS GENERAL REGULATIONS

Sections:

12.23.010 Purpose and Applicability

12.23.020 Definitions

12.23.030 Operating Standards--Membership--Eligibility

12.23.040 Authority of City Manager

12.23.050 Abatement of violations

12.23.060 Severability

12.23.010 Purpose and Applicability

The purpose of this Chapter is to collect in one location in this Code all of the definitions and general operating

standards applicable to Medical Cannabis Organizations. (Ord. 7530-NS § 1 (part), 2017)

12.23.020 Definitions

A. "Active Ingredients" means, in the case of dried cannabis flowers, extractions or infusions, delta-9-

tetrahydrocannabinolic acid, delta-9-tetrahydrocannabinol, cannabidiolic acid, cannabidiol, and any cannabinoid

or propyl cannabinoid derivative when present in amounts greater that .5% by dry weight, and any mono- or

sesquiterpenoid present in an amount exceeding .3% of a product’s dry weight.

B. "Batch" means a specific quantity of medical cannabis or medical cannabis products that is intended to

have uniform character and quality, within specified limits, and is produced according to a single manufacturing

order during the same cycle of manufacture or is from the same crop grown in the same location and harvested

in the same manner and at the same time.

C. "Cannabis" shall have the same meaning as the definition of "Marijuana" provided in California Health and

Safety Code Section 11018 at this time, but if that definition is amended by state law in the future, as amended.

Currently, under Health and Safety Code Section 11018, "marijuana means all parts of the plant cannabis sativa

L., whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every

compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not

include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the

plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except

the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of

germination."

D. "Cannabis By-Products" means delta-8-THC and cannabinol when present in amounts greater than .2% of a

product’s dry weight.

E. "Compound(s)" means any or all of the following chemicals, as the context requires:

The Berkeley Municipal Code is current through Ordinance 7569-NS, and legislation passed through September 12, 2017.

Berkeley Chapter 12.23 MEDICAL CANNABIS GENERAL REGULATIONS Page 1 of 39

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ITEM VII.A.2 CANNABIS COMMISSION

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a. "THC" or "Δ9-THC" means Δ9-tetrahydrocannabinol, (Δ)-(6aR,10aR)-6,6,9-trimethyl-3-pentyl-

6a,7,8,10a-tetrahydro-6H-benzo[c]chromen-1-ol.

b. "THCA" or "Δ9-THCA" means the acid form of THC.

c. "CBD" or "Cannabidiol" means 2-[(1R,6R)-6-isopropenyl-3-methylcyclohex-2-en-1-yl]-5-pentylbenzene-

1,3-diol.

d. "CBDA" or "Cannabidiolic acid" means the acid form of CBD.

e. "CBN" or "Cannabinol" means 6,6,9-trimethyl-3-pentyl-benzo[c]chromen-1-ol.

F. "Concentrate" means any oil or butter into which any Compound has been infused or otherwise dissolved.

G. "Contaminant" means any pesticide, residual solvent or microbiological organism or product thereof.

H. "Cultivate” and “Cultivation" mean any activity involving the planting, growing, harvesting, drying, curing,

grading or trimming of cannabis.

I. Medical Cannabis.

1. "Medical Cannabis" means Cannabis in any form, whether for inhalation, topical application, oral

ingestion, or any other form, that is intended or used for medicinal purposes in compliance with state law.

2. "Medical Cannabis Product" is any non-edible product that contains Medical Cannabis.

3. "Edible Medical Cannabis Product" (or "Edible") is edible product that contains Medical Cannabis.

Edible Medical Cannabis Products shall not be considered food for purposes of implementation of the

California Retail Food Code (Health & Safety Code §§ 113700 et. seq.) or the California Sherman Food and

Drug and Cosmetic Act (Health & Safety Code §§ 109875 et. seq.).

J. "Medical cannabis collective" or "Collective" shall mean an affiliation, association, or collective of persons

comprised exclusively and entirely of qualified patients and the primary caregivers of those patients, the

purpose of which is to collectively provide for or assist in the cultivation and distribution of Medical Cannabis to

its members. Collectives may have more than one location. Each location of a Collective shall be subject to the

applicable regulations in Chapter 12.27.120. Medical cannabis collectives shall not be located in commercial or

manufacturing zoning districts, and shall only be allowed in residential zoning districts, and only to the extent

they are incidental to a lawfully established residential use in a building located completely within a residential

zoning district. A Collective may be organized as any statutory business entity permitted under California law,

provided it operates in a Not-For-Profit manner as defined in Chapter 12.27.

K. Dispensary.

The Berkeley Municipal Code is current through Ordinance 7569-NS, and legislation passed through September 12, 2017.

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1. "Dispensary" means both Retail Dispensaries and Delivery-Only Dispensaries.

2. "Retail Dispensary" shall mean an organization that is authorized under Chapter 12.27 and Title 23 to

dispense Medical Cannabis at a non-residential location. A Dispensary may also provide other incidental

services to its Members to the extent permitted by state law, such as cultivating, acquiring, baking, storing,

processing, testing, transporting and delivering Medical Cannabis. In dispensing Medical Cannabis to its

Members, a Dispensary may be reimbursed for the cost of its services and materials. A Dispensary may

be organized as any statutory business entity permitted under California law, provided it operates in a Not-

For-Profit manner as defined in Chapter 12.27.

3. "Delivery-Only Dispensary" is a Dispensary that is limited to acquiring Medical Cannabis and

delivering it to its Members, and does not have a location to which Members may come to acquire Medical

Cannabis or any other good or service.

L. "Medical Cannabis Organization" or "MCO" includes Collectives, Dispensaries and Medical Cannabis

Cultivation Businesses.

M. "Medical Cannabis Cultivation Business" or "Cultivation Business" means a Medical Cannabis Organization

whose primary activity is Cultivation.

N. "Medical Cannabis Cultivation Facility" or "Facility" means a building or other location where Medical

Cannabis is cultivated.

O. "Member" means a qualified patient or primary caregiver as defined in California law who is also a member

of a Medical Cannabis Organization pursuant to its rules and consistent with California law.

P. "Not-for-Profit" means that an MCO receives compensation only for the reasonable costs of its operation,

including reasonable compensation for products and services provided to Members to enable them to use

Medical Cannabis pursuant to Health and Safety Code Sections 11362.7 et seq.; reasonable compensation for

employees; reasonable out-of-pocket expenses incurred in providing those products or services, or both.

Reasonable out-of-pocket expenses may include, but are not necessarily limited to, reasonable expenses for

Member services and education, rent or mortgage, utilities, construction, furniture, maintenance, analytic

testing, security, professional service costs, regulatory compliance costs, debt service, and reserves.

Q. "Primary caregiver" shall have the same meaning as provided in California Health and Safety Code Section

11362.7.

R. "Principal" means any person that has direct or non-delegated indirect authority over the management or

policies of an MCO.

S. "Protected Health Information" means documentation of a Member’s medical history or condition other than

a physician’s recommendation, an identification card issued pursuant to Health and Safety Code Section

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11362.7 et seq., or the written designation of a primary caregiver by a qualified patient or identification card

holder. Protected Health Information shall not include information conveyed by a Member to a Dispensary

regarding such Member’s medical condition, information conveyed by a Member to a Dispensary regarding

efforts to ameliorate or otherwise address symptoms associated with such Member’s medical condition, or

information regarding Cannabis or Medical Cannabis Products provided to a Member.

T. "Solvent" means any substance in which another substance is dissolved, forming a solution.

U. "Tincture" means an extract of Cannabis or solution of such, typically made with alcohol.

V. "Qualified patient" shall have the same meaning as provided in California Health and Safety Code Section

11362.7. (Ord. 7530-NS § 1 (part), 2017)

12.23.030 Operating Standards--Membership--Eligibility

A. MCOs shall comply with Health and Safety Code Sections 11362.7 et seq. and any other state laws that

may be adopted concerning Medical Cannabis, including but not limited to Chapter 3.5 of Division 8 of the

Business and Professions Code, and Chapters 12.26, 12.27 and 12.25 and Title 23 of the Berkeley Municipal

Code, and any other applicable City laws or regulations, and shall pay all applicable state or local taxes. To the

extent the requirements of this Chapter and Chapters 12.26, 12.27 and 12.25 are more restrictive than state law,

they shall apply. To the extent the requirements of this Chapter and Chapters 12.26, 12.27 and 12.25 are less

restrictive than state law, the requirements of state law shall apply.

B. MCOs may consist only of Members.

C. MCOs may only obtain Medical Cannabis from, and supply Medical Cannabis to, their Members, except as

provided by state law.

D. MCOs may not admit any person as a Member without first verifying his or her status as a qualified patient

or primary caregiver as defined by state law, and shall immediately cancel the membership of any person who

diverts Medical Cannabis for non-medical use or in any manner not permitted by this Chapter, Chapter 12.26 or

California law.

E. Physicians' recommendations shall be verified prior to granting membership and at least every twelve (12)

months thereafter, and a physical or digital record shall be kept of such verification. No Medical Cannabis may

be dispensed except to a Member and pursuant to a recommendation that is no more than twelve (12) months

old, unless the recommendation expressly states that it has a longer term or does not expire.

F. Except as may be provided in Chapter 12.27 or 12.25, no person may be allowed to have any position with

an MCO other than that of Member if he or she has been convicted of:

1. homicide;

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2. within the preceding 10 years, any serious or violent felony listed in Penal Code Section 1192.7(c) or

Section 667.5(c);

3. within the preceding 10 years, any violation of Penal Code Sections 243 through 247, except for

subdivision (a) of Section 243;

4. within the preceding 10 years, any offense under Section 11361 or Articles 1, 3,

5. within the preceding 5 years any felony violation of Health and Safety Code Section 11358, Section

11359 or Section 11360.

G. An MCO may only be operated by a Collective, and shall operate in a Not-for-Profit manner.

H. All MCOs shall maintain contemporaneous financial and operational records sufficient to show compliance

with this Chapter and Chapters 12.26, 12.27 and 12.25, and state law governing medical cannabis, which

records shall be subject to inspection by the City. Such records shall protect the confidentiality of Members.

(Ord. 7530-NS § 1 (part), 2017)

12.23.040 Authority of City Manager

A. The City Manager or his or her designee shall have authority to determine the nature of any MCO or

purported MCO and whether that MCO complies with any of the requirements of this Chapter or Chapters 12.26,

12.27 or 12.25, and to conduct inspections as provided in Chapter 1.16.

B. The City Manager or his or her designee may issue regulations to implement this Chapter and Chapters

12.26, 12.27 and 12.25.

C. The City Manager or his or her designee shall have authority to enter onto private property and perform

such inspections as may be necessary or convenient to implement and enforce this Chapter, and to adopt

regulations to implement this Chapter or Chapters 12.26, 12.27 or 12.25. (Ord. 7530-NS § 1 (part), 2017)

12.23.050 Abatement of violations

A. Violations of this Chapter or Chapters 12.26, 12.27 or 12.25 shall constitute a public nuisance under

Chapter 1.26. The City may enforce this Chapter through proceedings under Chapter 1.24, Chapter 1.28,

Chapter 23B.64 and any other law or ordinances it deems appropriate.

B. Notwithstanding anything to the contrary, violations of this Chapter or Chapters 12.26, 12.27 or 12.25 shall

not be punishable as public offenses to the extent that doing so would conflict with state law. (Ord. 7530-NS § 1

(part), 2017)

12.23.060 Severability

If any word, phrase, sentence, part, section, subsection, or other portion of this Chapter, or any application

thereof to any person or circumstance is declared void, unconstitutional, or invalid for any reason, then such

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word, phrase, sentence, part, section, subsection, or other portion, or the prescribed application thereof, shall be

severable, and the remaining provisions of this Chapter, and all applications thereof, not having been declared

void, unconstitutional or invalid, shall remain in full force and effect. The City Council hereby declares that it

would have passed this title, and each section, subsection, sentence, clause and phrase thereof, irrespective of

the fact that any one or more sections, subsections, sentences, clauses or phrases had been declared invalid or

unconstitutional. (Ord. 7530-NS § 1 (part), 2017)

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Chapter 12.25MEDICAL CANNABIS CULTIVATION

Sections:

Article I General

12.25.010 Applicability

12.25.020 Reserved

Article II Medical Cannabis Cultivation Businesses and Facilities

12.25.030 Eligibility requirements

12.25.040 Information requirements

12.25.050 Operating Standards

12.25.060 Signage

12.25.070 Product Safety, Quality Assurance and Labeling

12.25.080 Energy use

12.25.090 Records

12.25.100 Ranking and allocation procedure and criteria

12.25.110 Confidentiality of information

Article III Enforcement

12.25.120 Authority of City Manager

12.25.130 Abatement of violations

12.25.140 Fees

12.25.150 Severability

12.25.160 Severability

12.25.010 Applicability

This Chapter applies to Medical Cannabis Cultivation. (Ord. 7529-NS § 1 (part), 2017)

12.25.020 Reserved

(Ord. 7529-NS § 1 (part), 2017)

12.25.030 Eligibility requirements

A. No Principal of any Cultivation Business may be a Principal for any other Cultivation Business in Berkeley.

(Ord. 7529-NS § 1 (part), 2017)

12.25.040 Information requirements

Every Cultivation Business shall provide the following information to the City, and shall update it annually and

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whenever there is any material change.

A. A description of each Facility operated by the Cultivation Business and its location, which shall include

such information as the City may require that demonstrates compliance with applicable provisions of this

Chapter.

B. The name, address and 24-hour contact information for each Principal, including a photocopy of at least one

primary form of photo identification, such as a California Drivers License or US Passport. This information shall

also include any aliases, maiden or married names or other former legal names.

C. Proof of each Principal’s status as a qualified patient or primary caregiver.

D. For each Principal, a signed consent for the City to conduct a background check, including criminal history.

E. Proof of the nature of the Cultivation Business’s organizational status, such as articles of incorporation, by-

laws, partnership agreements, and other documentation as may be appropriate or required by the City. (Ord.

7529-NS § 1 (part), 2017)

12.25.050 Operating Standards

A. General operating standards.

1. A Principal or designated Member of the Board of a Cultivation Business must be a member of the

Dispensary or Collective that the Cultivation Business supplies.

2. No physician recommendations for Medical Cannabis may be provided on site.

B. Non-diversion. Cultivation Businesses shall take all practicable steps necessary to prevent and deter

diversion of Medical Cannabis or Medical Cannabis Products to non-Members. Cultivation Businesses must limit

access to Medical Cannabis and Medical Cannabis Products to authorized personnel only, and must maintain an

inventory management system that:

1. Accounts for all Medical Cannabis and Medical Cannabis Products;

2. Tracks each Batch of Medical Cannabis and Medical Cannabis Products produced by the Cultivation

Business from each Facility, including each Batch’s approximate content of Active Ingredients and

Cannabis By-Products as a percentage of weight;

3. Retains all information listed in paragraphs 1 and 2 above for a period of at least 120 days from

production of the Batch; and

4. Is capable of producing a summary showing the information necessary to verify non-diversion.

C. Product Distribution.

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Cultivation Businesses may only provide Medical Cannabis or Medical Cannabis Products to other Medical

Cannabis Organizations that are permitted by local authorities or permissible under local law.

D. Members and employees.

All employees and volunteers must be Members who are at least 18 years of age.

E. Security.

1. Cultivation Businesses shall provide adequate security and lighting at each Facility to ensure the

safety of persons and protect the premises from theft at all times. Lighting shall be of sufficient intensity to

illuminate all areas of the lot.

2. Cultivation Businesses must maintain security guards and camera coverage of the entire grounds of

each Facility to an extent sufficient to ensure the safety of persons and deter crime. Cameras must be

maintained in good condition, and use a format approved by the City Manager, which is of adequate quality,

color rendition and resolution to allow the ready identification of any individual committing a crime. The

cameras shall be in use 24 hours per day, seven (7) days per week. The areas to be covered by the

security cameras include, but are not limited to, distribution areas, storage areas, cultivation areas, all

doors, parking lots, and any other area determined by the City Manager. Surveillance footage must be

retained for a period of 90 days and made available to the Berkeley Police Department for purposes of

investigation of alleged crimes, promptly upon request without the necessity of a warrant or subpoena.

Retention and maintenance of security camera recordings shall comply with Section 12.25.110.

3. Facilities must be equipped with an alarm system that is operated and monitored by a security

company licensed by and in good standing with the California Department of Consumer Affairs. Alarms

shall be maintained and in good working condition at all times.

4. In order to prevent unauthorized entry to a Facility during non-business hours, a Business shall either

secure all exterior windows and roof hatches from the inside with bars, retractable, folding or sliding metal

gates, or metal rollup or accordion doors, or provide at least one security guard during those hours.

5. Any security guards employed by Cultivation Businesses shall be licensed and possess a valid

Department of Consumer Affairs "Security Guard Card" at all times. Security personnel may not be armed.

6. All Medical Cannabis- and, Medical Cannabis Products shall be securely stored at all times, and the

entrance to all storage areas shall be locked and under the control of staff.

7. Cultivation Businesses shall make transactions with payment methods other than cash whenever

feasible. All cash received, except that needed for retail customer transactions shall be kept in a secure

receptacle such as a drop safe or other type of safe.

F. Neighborhood compatibility.

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1. Facilities shall be operated in a manner that ensures neighborhood compatibility, and shall take all

steps necessary to ensure that they do not create neighborhood disturbances. Such measures shall

include, but not be limited to, providing a security guard to patrol the area surrounding the Facility during all

hours of operation.

2. Facilities shall provide the Police Department and all residents, businesses and property owners within

100 feet with the current name, phone number, secondary phone number and e-mail address of an on-site

community relations staff person to whom notice of any operating problems associated with the Facility

may be reported. This information shall be updated as necessary to keep it current. Cultivation Businesses

shall encourage neighbors to call this person to try to solve any operating problems.

3. All Cultivation Businesses shall have an on-site manager at each Facility who is responsible for overall

operation at all times that employees are conducting operations, and shall provide the Police Department

with contact information for all such persons, including telephone number and e-mail address. Cultivation

Businesses shall also provide the Police Department with the current name and phone numbers of at least

one 24-hour-on-call manager. This information shall be updated as necessary to keep it current.

4. Cultivation Businesses shall take all reasonable steps to discourage and correct objectionable

conditions that constitute a public or private nuisance in parking areas, sidewalks, alleys and areas

surrounding a Facility and adjacent properties. Such conditions include, but are not limited to: smoking;

creating a noise disturbance; loitering; littering; and graffiti.

5. Cultivation Businesses shall ensure all graffiti is removed from property and parking lots under their

control within 72 hours of its appearance.

G. Dispensing and Consumption of Medical Cannabis, Tobacco and Alcohol.

1. Dispensing of Medical Cannabis or Medical Cannabis Products to end users at a Facility is prohibited.

2. Sale or consumption of tobacco is prohibited at Facilities.

3. Sale and/or service of alcoholic beverages at Facilities is prohibited.

4. This subdivision does not prohibit the use of non-combustible Medical Cannabis, Medical Cannabis

Products or Edibles on the premises of the facility by persons for whom such use is not a crime under

California law, for treatment of medical conditions pursuant to a recommendation by a physician.

H. Accessibility. Facilities shall comply with all physical accessibility requirements that would be applicable to

a newly-constructed building. (Ord. 7529-NS § 1 (part), 2017)

12.25.060 Signage

No signage is required. Signage is discouraged. (Ord. 7529-NS § 1 (part), 2017)

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12.25.070 Product Safety, Quality Assurance and Labeling

Medical Cannabis and Medical Cannabis Products shall be tested, and specified compounds shall be

quantitated, as set forth in this Section.

A. The following compounds shall be quantitated as set forth in the following table, using equipment and

methodologies with limits of detection for all compounds no greater than 0.1% by weight, or 1 mg/g

Constituent Equipment/Methodology

THCA HPLC1, or GC2 with derivatization, or othermethodology approved by a state or the federalgovernment as meeting a limit of quantitation of

0.1% by weight

THC

CBDA

CBD

CBN

1 High-performance liquid chromatography2 Gas chromatography

B. The quantitative information required by subdivision A shall be printed on labels for all Medical Cannabis

and Medical Cannabis Products as set forth in the following table.

Product type Label information

Cannabis (flowers, leaf and concentrates, including

water processed concentrates)

% by weight and mg/g

Capsules/pills mg/capsule

Oils, butters, tinctures (for internal consumption) weight/volume mg/g

Topicals (external application) mg/g or mg/mL, as

applicable

C. Medical Cannabis and Medical Cannabis Products shall be tested for contaminants as set forth in the

following table. Medical Cannabis and Medical Cannabis Products that contain more than the permissible levels

may not be provided to any Member or any other person, and shall either be destroyed or returned to their

source(s) at the option of the owner.

Contaminant Testing methodologyPermissible

amount

EPA-controlled Any methodology that the City determines is 100 ppb (total of

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pesticides

commonly used

in cannabis

cultivation

sufficiently sensitive to determine that the

permissible amount has not been exceeded, using

EPA-or FDA-accepted methodologies for

pesticides, including, not limited to, GC-MS1,

Elisa2

all quantitated

pesticides)3

Microbiological

contaminants

Any methodology approved by any U.S. or

recognized international standards organization• APC4 <

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

flammable

solvents

(concentrates

only)

Head space analysis 400 ppm (total of

all solvents)7

1 Gas chromatography-mass spectrometry2 Enzyme-linked immunosorbent assay3 Parts per billion4 Aerobic plate count5 Colony-forming unit6 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

D. Cultivation Businesses shall maintain a written or computerized log documenting:

1. the date, type, and amount of Product tested;

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2. the source(s) of any contaminated Medical Cannabis or Medical Cannabis Products;

3. the report containing the results of the testing, including the name and level of the substance detected;

and

4. the disposition of the Medical Cannabis or Medical Cannabis Product from which the contaminated

sample was obtained, including the amount and the date and manner of disposition.

Such logs shall be maintained for at least one year and made available to the City upon request.

E. Packaging and Labeling for Medical Cannabis and Medical Cannabis Products.

1. Medical Cannabis and Medical Cannabis Products shall be contained in packaging that bears labels

containing the following information, in addition to any other information that a Cultivation Business may

choose to provide or that may be required by law:

a. the name and contact information for the Facility;

b. the weight;

c. the quantity of compounds as set forth in subdivision B;

d. the date of manufacture or production; and

e. a complete list of ingredients.

2. Scales and weighing mechanisms must be able to weigh to within 1/100th of a gram, shall be

maintained in good working order and shall be subject to annual inspection by either the Alameda County

Department of Agriculture/Weights and Measures or a licensed scale company.

F. This Section shall be deemed repealed and of no further force or effect once testing as set forth in Article

10 of Chapter 3.5 of the Business and Professions Code is available. (Ord. 7529-NS § 1 (part), 2017)

12.25.080 Energy use

A. Facility may not be approved unless it includes all feasible (under the current Title 24, Part 6) cost-effective

water and energy efficiency measures, including but not limited to natural daylighting, high efficiency lighting,

networked lighting and mechanical controls, and natural cooling.

B. Additionally, the following systems should be included as feasible: on-site renewable energy generation;

energy storage batteries; water collection, filtration and reuse; and rainwater harvesting.

C. The application for a Facility shall include a description of all energy and water systems, measures

employed to maximize efficient resource use, and the following metrics, with supporting documentation:

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1. Planned lighting power density (watts/sf)

2. Planned lighting Energy Utilization Index (kBtu/sf/year)

3. Planned total site Energy Utilization Index (kBtu/sf/year)

4. Planned potable water consumption (gallons/sf/year)

D. A Cultivation Business shall mitigate the carbon dioxide emissions caused by the generation of electrical

energy delivered to its Facility by participating in East Bay Community Energy’s EBCE) 100% renewable content

option for electricity or equivalent. Until businesses have the option to purchase power through EBCE, the offset

will be achieved through purchase of renewable energy certificates certified by the Center for Resource

Solutions.

E. If a Facility uses natural gas to generate electricity for consumption at the site, the Cultivation Business

shall offset the carbon content of all electrical energy delivered to the Facility by participating in a program that

is included in one of the Offset Project Registries approved by the California Air Resources Board and consists

of a project or projects that are solely located in the United States and are ether producing energy or reducing

energy consumption.

F. For purposes of calculating carbon emissions, the carbon dioxide content of natural gas shall be 5.302

metric tons per 1,000 therms and the carbon dioxide content for electricity shall be the value, at the time of

filing, from the most recent Power Content Label published by the California Energy Commission.

G. The Cultivation Business shall be responsible for demonstrating compliance on a calendar-year basis.

Documentation shall include copies of energy and water bills, as well as an authorization to energy and water

providers to disclose energy and water consumption at the Facility directly to the City. All parties that are

responsible for energy and water bills shall also be responsible for providing such documentation and

authorization.

H. The annual amount paid by a Cultivation Business to both mitigate carbon dioxide emissions caused by the

generation of electrical energy to its Facility and to offset the carbon content of all electrical energy delivered to

its Facility shall not exceed 10% of the Facility’s annual energy bill. This fee shall be reconsidered after five

years to determine whether it should be readjusted to reflect lower energy rates or higher costs of renewable

energy certificates. (Ord. 7559-NS § 1, 2017: Ord. 7529-NS § 1 (part), 2017)

12.25.090 Records

A. General. All Cultivation Businesses and Facilities shall maintain contemporaneous financial and operational

records sufficient to show compliance with this Chapter, Chapter 12.26, and applicable California law, as well as

satisfaction of commitments made in the Cultivation Business’s application and during the ranking and allocation

process, if any. Such records shall be maintained in a secure location under the control of the Cultivation

Business within the City of Berkeley, and shall be subject to inspection by the City upon reasonable notice

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during regular operational hours or by appointment.

B. Finances.

1. Cultivation Businesses shall operate on a Not-for-Profit basis. Sale of Medical Cannabis to cover

anything other than reasonable compensation and reasonable out-of-pocket expenses is explicitly

prohibited. To the extent they provide goods or services not related to Medical Cannabis, Cultivation

Businesses need not operate on a Not-For-Profit basis.

2. Cultivation Businesses 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 and shall include information on staff/principal compensation.

C. Qualified Patient or Primary Caregiver status. Cultivation Businesses shall keep an accurate roster of all

Principals and employees, which shall include either the State of California Medical Marijuana Identification Card

number issued by a county pursuant to Health & Safety Code Sections 11362.7 et seq. or a copy of a

physician’s referral and, if any such person is a Primary Caregiver, a written authorization from the Qualified

Patient to be represented by such Primary Caregiver. Such records shall be maintained in a manner that

protects the confidentiality of all persons identified therein.

D. Operations. Cultivation Businesses shall maintain the following information and make it available to the City

within 30 days of the end of each calendar year.

1. The Collectives and /or Dispensaries of which the Principals and employees are Members.

2. The total amount of revenue collected during the year;

3. The consideration received for each Batch;

4. Monetary and non-monetary contributions;

5. Total monetary and non-monetary distributions to Members of any of the Dispensaries and/or

Collectives of which the Principals or employees are Members, other than Medical Cannabis, Medical

Cannabis Products or Edibles provided for monetary consideration;

6. Salaries and overhead; and

7. A complete list of the types of Medical Cannabis, Medical Cannabis Products and Edibles available,

and the prices thereof.

E. Convictions. Cultivation Businesses shall immediately report any conviction of a person subject to Section

12.28.030.A that would cause him or her to be ineligible to be a Principal or employee. (Ord. 7529-NS § 1 (part),

2017)

The Berkeley Municipal Code is current through Ordinance 7569-NS, and legislation passed through September 12, 2017.

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12.25.100 Ranking and allocation procedure and criteria

The Council may by resolution establish procedures and criteria for accepting applications to operate Facilities

and determining which, if any, to approve. (Ord. 7529-NS § 1 (part), 2017)

12.25.110 Confidentiality of information

A. The City’s review of information submitted or maintained pursuant to this Chapter shall preserve the

confidentiality of all information about Principals to the maximum extent consistent with state and local law. The

City shall incur no liability for the inadvertent or negligent disclosure of such information. Disclosure of any

Principal information to the City for purposes of this Chapter shall not be deemed a waiver of confidentiality.

Financial information provided to the City pursuant to Section 12.25.090 shall be deemed to be "financial

information" covered by Chapter 7.26.

B. The information required by Section 12.25.040 and recordings from security cameras, shall be confidential

and shall not be subject to public inspection or disclosure except to City employees for purposes of law

enforcement.

C. In order to protect confidentiality, Dispensaries shall not collect or maintain Protected Health Information.

Dispensaries shall maintain membership records and information about members in a manner that ensures that

the information will not be disclosed except as required by this Chapter or other laws. If a Dispensary maintains

information conveyed by a Member to a Dispensary regarding such Member’s medical condition, information

conveyed by a Member to a Dispensary regarding efforts to ameliorate or otherwise address symptoms

associated with such Member’s medical condition, or information regarding Medical Cannabis, Medical Cannabis

Products and/or Edibles provided to a Member, such information shall be kept in a manner that is in compliance

with the Confidentiality of Medical Information Act. Membership lists shall be available to City employees

charged with the administration of this Chapter for inspection on site without a warrant during business hours or

by appointment. (Ord. 7529-NS § 1 (part), 2017)

12.25.120 Authority of City Manager

A. The City Manager or his or her designee shall have authority to determine the nature of any purported

Cultivation Business or Facility and whether that Cultivation Business or Facility complies with any of the

requirements of this Chapter and to conduct inspections as provided in Chapter 1.16.

B. The City Manager or his or her designee shall have authority to enter onto private property and perform

such inspections as may be necessary or convenient to implement and enforce this Chapter, and to adopt

regulations to implement this Chapter. (Ord. 7529-NS § 1 (part), 2017)

12.25.130 Abatement of violations

A. Violations of this Chapter shall constitute a public nuisance under Chapter 1.26. The City may enforce this

Chapter through proceedings under Chapter 1.24, Chapter 1.28, Chapter 23B.64 and any other law or ordinances

it deems appropriate.

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B. Notwithstanding anything to the contrary, violations of this Chapter shall not be punishable as public

offenses to the extent that doing so would conflict with state law. (Ord. 7529-NS § 1 (part), 2017)

12.25.140 Fees

The City Council may establish by resolution the fees that shall be charged for administration and

implementation of this Chapter. The adoption of such fees shall not prevent the City from recovering

enforcement costs not specified in such resolution. (Ord. 7529-NS § 1 (part), 2017)

12.25.150 Severability

If any word, phrase, sentence, part, section, subsection, or other portion of this Chapter, or any application

thereof to any person or circumstance is declared void, unconstitutional, or invalid for any reason, then such

word, phrase, sentence, part, section, subsection, or other portion, or the prescribed application thereof, shall be

severable, and the remaining provisions of this Chapter, and all applications thereof, not having been declared

void, unconstitutional or invalid, shall remain in full force and effect. The City Council hereby declares that it

would have passed this title, and each section, subsection, sentence, clause and phrase thereof, irrespective of

the fact that any one or more sections, subsections, sentences, clauses or phrases had been declared invalid or

unconstitutional. (Ord. 7529-NS § 1 (part), 2017)

12.25.160 Severability

Chapter 12.25 of the Berkeley Municipal code shall not be effective until such time as an amendment to the

Berkeley Zoning Ordinance which limits the maximum number of cultivation sites to six locations has become

effective. (Ord. 7529-NS § 1 (part), 2017)

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Chapter 12.26PATIENTS ACCESS TO MEDICAL CANNABIS ACT OF 2008

Sections:

12.26.010 Purposes.

12.26.030 Reserved

12.26.035 Recreational cannabis.

12.26.040 Medical cannabis collectives.

12.26.050 Availability in pharmacies.

12.26.060 Quality control encouraged.

12.26.070 Permissible quantities of medical cannabis.

12.26.080 Transportation of medical cannabis.

12.26.090 Medical cannabis paraphernalia.

12.26.100 Police procedures and training.

12.26.110 Cannabis Commission.

12.26.120 Emergency Distribution.

12.26.130 Medical cannabis organizations.

12.26.140 Compliance with all applicable laws.

12.26.150 Violations of square footage limitations not punishable as public offenses--public nuisance.

Title.

This initiative shall be known and may be cited as the Patients Access to Medical Cannabis Act of 2008. (Ord.

7068-NS § 1, 12/08/08)

Findings And Declarations.

The People of the City of Berkeley find all of the following to be true:

A. We strongly support the right of seriously ill patients to use medical cannabis in the treatment of cancer,

anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraines, or any other serious illness or condition

for which cannabis provides relief.

B. We strongly oppose the arrest, prosecution, and incarceration of persons legally-qualified under the

Compassionate Use Act of 1996 (Proposition 215) by local, state, or federal law enforcement.

C. There is a need in our community for safe and affordable access to medical cannabis.

D. In the absence of meaningful state regulation, it is necessary for local governments to adopt policies and

guidelines for the purpose of facilitating safe access and protecting patients.

E. The provision of medical cannabis should occur in a safe and orderly manner in order to protect patients

and the community. In the absence of clear guidelines, there has been a lack of consistency in the permitting

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and regulation of medical cannabis dispensing.

F. There is a need for specific instructions for City officials and staff in order to eliminate this inconsistency.

G. There are no scientifically valid studies that determine the yield of medicine based on specific numbers of

plants or the quantity of medication necessary for a patient. Berkeley’s arbitrarily- low cultivation limits place

undue burdens on local patients, and therefore require revision based on patient’s needs.

H. The People of the City of Berkeley further find and declare that we enact this initiative pursuant to the

powers reserved to the State of California, the City of Berkeley, and its people under the Tenth Amendment to

the United States Constitution. (Ord. 7068-NS § 2, 12/08/08)

12.26.010 Purposes.

The purpose of this chapter is to implement California Health and Safety Code Section 11362.5, known as the

Compassionate Use Act of 1996 and to regulate the location of facilities lawfully used for the storage, dispensing

and use of medical cannabis, other than the cultivation or possession of medical cannabis by an individual

patient or caregiver at the patient or caregiver’s home, lawfully incident to the residential use of that home. The

Compassionate Use Act is the state law removing state law penalties for qualified patients, and primary care

givers to those patients, for possession and cultivation of a personal amount of medical cannabis for qualified

patients. This chapter is intended:

A. To help ensure that seriously ill Berkeley residents can obtain and use cannabis for medical purposes

where that medical use has been deemed appropriate and recommended or approved by a physician who has

determined that the patient’s health would benefit from the use of cannabis in the treatment of cancer, anorexia,

AIDS, chronic pain, spasticity, glaucoma, arthritis, migraines, or any other serious illness or condition for which

cannabis provides relief.

B. To help ensure that qualified patients and their primary caregivers who obtain or cultivate cannabis solely

for the qualified patient’s medical treatment with the recommendation or approval of a physician are not subject

to criminal prosecution or sanction.

C. To encourage the federal and state governments to implement a plan to provide for the safe and affordable

distribution of medical cannabis to patients whose medical doctors approve or recommend medical cannabis to

treat a serious illness or condition.

D. To protect citizens from the adverse impacts of irresponsible medical cannabis distribution, storage and

use practices. (Ord. 7068-NS § 3 (part), 12/08/08: Ord. 6826-NS § 1 (part), 2004: Ord. 6620-NS § 1, 2001)

12.26.030 Reserved

(Ord. 7531-NS § 1, 2017: Ord. 7359-NS § 1, 2014: Ord. 7161-NS § 1, 2010; Ord. 7068-NS § 3 (part), 12/08/08:

Ord. 6826-NS § 1 (part), 2004: Ord. 6620-NS § 1, 2001)

The Berkeley Municipal Code is current through Ordinance 7569-NS, and legislation passed through September 12, 2017.

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12.26.035 Recreational cannabis.

No recreational cannabis use may be approved under this Section until the City Council adopts a licensing

process and standards for such uses. (Ord. 7512-NS § 1, 2016)

12.26.040 Medical cannabis collectives.

A. Pooling of Resources Recognized. The City of Berkeley recognizes that some qualified patients may not

have primary caregivers and also may not be able to undertake all the physical activities necessary to cultivate

cannabis for personal medical use. Accordingly, this section recognizes that qualified patients may join together

with or without their primary caregivers to form medical cannabis collectives for the purpose of acquiring or

cultivating and manufacturing medical cannabis solely for the personal medical use of the members who are

qualified patients. The City recognizes that not all members of a medical cannabis collective will perform the

same tasks or contribute to the collective in an equal manner. Accordingly, medical cannabis collectives are

free to decide how to best pool their resources and divide responsibilities in cultivating medical cannabis for the

personal medical use of their members who are qualified patients.

B. Restriction on Membership. Membership in a medical cannabis collective must be restricted to qualified

patients and their primary caregivers. However, primary caregivers shall not be allowed to obtain cannabis for

their own personal use. In addition, a primary caregiver cannot be a member of a medical cannabis collective,

unless the primary caregiver’s qualified patient is also a member.

C. Restriction on Distribution to Non-Members. Medical cannabis collectives and each member thereof, shall

not sell, barter, give away, or otherwise distribute cannabis to non-members of the medical cannabis collective.

D. Amount of Dried Cannabis and Plants.

1. Medical Cannabis Collectives may possess a reasonable quantity of dried cannabis and cannabis

plants to meet the needs of their patient members. Medical Cannabis Collectives shall not accumulate

more cannabis than is necessary to meet the personal medical needs of their Qualified Patients.

2. Except as permitted in Title 23, cultivation of medical cannabis by a medical cannabis collective that is

not a Medical cannabis dispensary may only be incidental to a residential use. Cultivation occupying more

than the lesser of 200 square feet or 25% of building square footage shall not be considered incidental, and

is prohibited.

3. For purposes of this subdivision, "square feet" and "square footage" means the horizontal areas of all

floors, including usable basement and cellars, below the roof and within the outer surface of the main walls

of buildings (or the center lines of party walls separating such buildings or portions thereof).

E. Size of Visible Cannabis Gardens. The City of Berkeley recognizes that large scale outdoor cultivation of

medical cannabis will create a risk of theft and violence due to the high monetary value of a large number of

cannabis plants and the relative ease of theft by trespassing. Large-scale outdoor cannabis cultivation will also

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unfairly create tension and fear among the surrounding residents of trespassing, thefts, and violence.

Accordingly, any medical cannabis collective or Collectives that cultivate medical cannabis plants outdoors

(excluding secure rooftops or balconies that are not visible from other buildings or land) or in any place that is

visible with the naked eye from any public or other private property, can only cultivate 10 such plants at one

time on a single parcel or adjacent parcels of property.

F. Restriction on Excessive Cultivation and Possession. Nothing in this Section shall authorize any individual,

organization, affiliation, collective, cooperative or other entity to (1) cultivate or possess a quantity of medical

cannabis that is inappropriate for the personal medical need of the patient(s) for whom it is intended; or (2)

cultivate or possess any quantity of cannabis for non-medical purposes. (Ord. 7161-NS § 2, 2010; Ord. 7068-NS

§ 3 (part), 12/08/08: Ord. 6620-NS § 1, 2001)

12.26.050 Availability in pharmacies.

To encourage the standardization of medical cannabis, the City of Berkeley urges the federal government to

reschedule cannabis so that it may be made available to qualified patients through legally licensed pharmacies

and urges the state government to urge the federal government to do so as well. (Ord. 7068-NS § 3 (part),

12/08/08: Ord. 6620-NS § 1, 2001)

12.26.060 Quality control encouraged.

The City of Berkeley strongly encourages all qualified patients, primary caregivers, and medical cannabis

collectives to consult the available cannabis cultivation literature to ensure that the medical cannabis lawfully

cultivated under state law is free of undesired toxins or molds. The City of Berkeley cautions that natural

molding from improper storage, certain soils for indoor growing, foreign materials that unintentionally becomes

lodged in cultivated cannabis, and pesticides, can all potentially render the medical cannabis totally unsafe for

consumption. Collectives are encouraged to use their best effort to determine whether or not cannabis is

organically grown. (Ord. 7068-NS § 3 (part), 12/08/08: Ord. 6620-NS § 1, 2001)

12.26.070 Permissible quantities of medical cannabis.

The Compassionate Use Act allows Qualified Patients or their Primary Caregivers to possess or cultivate

cannabis for the Qualified Patient’s "personal medical purposes." Because each Qualified Patient will have

different needs regarding appropriate Personal Medical Use, this Section seeks to ensure that each Qualified

Patient or his or her Primary Caregiver can possess enough cannabis to meet the Qualified Patient’s personal

medical need.

A. Cultivation of Medical Cannabis. Notwithstanding any other provision of law, and pursuant to California

Health and Safety Code Section 11362.77(c) as effective on January 1, 2004, all cultivation of cannabis for

medical purposes by a Qualified Patient or Primary Caregiver shall be lawful and shall in no way be subject to

criminal prosecution when said cultivation is conducted solely for the personal medical purposes of Qualified

Patients. Such lawful cultivation may include the cultivation and possession of both female and male plants at all

stages of growth, clones, seedlings, and seeds, and related cultivation equipment and supplies. Medical

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Cannabis Collectives, Qualified Patients, Primary Caregivers, and cultivators may cultivate individually or

collectively.

B. Possession of Medical Cannabis. Notwithstanding any other provision of law, and pursuant to California

Health and Safety Code Section 11362.77(c) as effective on January 1, 2004, all possession of cannabis for

medical purposes by a Qualified Patient or Primary Caregiver shall be lawful and shall in no way be subject to

criminal prosecution when said possession is undertaken solely for the personal medical purposes of Qualified

Patients. Medical Cannabis Collectives, Qualified Patients, Primary Caregivers, and cultivators may possess

individually or collectively.

C. Property and Equipment. The rental, leasing, or providing of equipment or space utilized for cultivation,

processing, or storage of medical cannabis in accordance with this Section shall be deemed lawful.

D. Size of Visible Cannabis Gardens. The City of Berkeley recognizes that large scale outdoor cultivation of

cannabis may create a risk of theft. Accordingly, any Medical Cannabis Collective that cultivates cannabis

plants outdoors (excluding secure rooftops, balconies, or other locations that are not visible from other buildings

or land) or in a place that is visible with the naked eye from other public or private property, may cultivate no

more than ten such visible plants at one time on a single parcel of property. (Ord. 7068-NS § 3 (part), 12/08/08:

Ord. 6620-NS § 1, 2001)

12.26.080 Transportation of medical cannabis.

A qualified patient or a primary caregiver of a qualified patient may transport medical cannabis within the City of

Berkeley to the extent that the quantity transported and the method, timing, and distance of the transportation

are reasonably related to the qualified patient’s current medical need at the time of transport. (Ord. 7068-NS § 3

(part), 12/08/08: Ord. 6620-NS § 1, 2001)

12.26.090 Medical cannabis paraphernalia.

A qualified patient and the primary caregiver of a qualified patient may possess paraphernalia that the qualified

patient needs to smoke or otherwise consume medical cannabis. (Ord. 7068-NS § 3 (part), 12/08/08: Ord. 6620-

NS § 1, 2001)

12.26.100 Police procedures and training.

A. Within six months of the date that this chapter becomes effective, the training materials handbooks, and

printed procedures of the Police Department shall be updated to reflect its provisions. These updated materials

shall be made available to police officers in the regular course of their training and service.

B. Medical cannabis-related activities shall be the lowest possible priority of the Police Department.

C. Qualified patients, their primary caregivers, and medical cannabis collectives who come into contact with

law enforcement will not be cited or arrested and dried cannabis or cannabis plants in their possession will not

be seized if they are in compliance with the provisions of this chapter.

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D. Qualified patients, their primary caregivers, and medical cannabis collectives who come into contact with

law enforcement and cannot establish or demonstrate their status as a qualified patient, primary caregiver, or

medical cannabis collective, but are otherwise in compliance with the provisions of this chapter, will not be cited

or arrested and dried cannabis or cannabis plants in their possession will not be seized if (1) based on the

activity and circumstances, the officer determines that there is no evidence of criminal activity; (2) the claim to

be a qualified patient, primary caregiver, or medical cannabis collective is credible; and (3) proof of status as a

qualified patient, primary caregiver, or medical cannabis collective can be provided to the Police Department

within three business days of the date of contact with law enforcement. (Ord. 7068-NS § 3 (part), 12/08/08: Ord.

6620-NS § 1, 2001)

12.26.110 Cannabis Commission.

The purpose of this Section is to ensure that cannabis provision in Berkeley is conducted in a safe and orderly

manner to protect the welfare of Qualified Patients and the community.

A. A cannabis commission is established. The commission shall consist of nine members. Appointments to

the commission shall be made, and vacancies on the commission shall be filled, by council members, in

accordance with the provisions of Sections 2.04.030 through 2.04.130. At least one commissioner shall be a

member of a medical cannabis dispensary, one shall be a member of a collective that is not a dispensary, and

one shall be a cultivator who is not primarily associated with a single dispensary and provides cannabis to more

than one dispensary.

B. The commission shall recommend to the City operational and safety standards for Cannabis Collectives

and Dispensaries, and shall consult with any individual, organization, affiliation, collective, cooperative or other

entity which seeks to open a new Cannabis Collective or dispensary in Berkeley or to relocate an existing

Cannabis Collective or dispensary. The commission shall advise the City as to whether the proposed Cannabis

Collective or dispensary has a strategy for compliance with the published safety and operational standards

before the new Cannabis Collective or dispensary commences lawful operation.

C. The commission will monitor the compliance of Cannabis Collectives and dispensaries in Berkeley for the

purpose of correcting any violations of the safety and operational standards. Cannabis Collectives or

dispensaries found to be in willful or ongoing violation of the standards shall be deemed in violation of this

Chapter and referred to the City for appropriate action. (Ord. 7545-NS § 1, 2017: Ord. 7161-NS § 3, 2010: Ord.

7068-NS § 3 (part), 12/08/08)

12.26.120 Emergency Distribution.

The City of Berkeley strongly opposes the federal prosecution of medical cannabis patients, caregivers, and

providers. The City shall make all reasonable accommodation for the provision of medical cannabis to Qualified

Patients or their Primary Caregivers in the event that access to medical cannabis is interrupted or severely

diminished as the result of civil or criminal federal law enforcement activity. The City shall accommodate

distribution of medical cannabis as early as possible following such a disruption and no later than thirty (30)

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days after the disruption. (Ord. 7068-NS § 3 (part), 12/08/08)

12.26.130 Medical cannabis organizations.

A. Six medical cannabis dispensaries shall be allowed within the limits of the City of Berkeley, in locations and

subject to the requirements specified in Title 23.

B. All medical cannabis facilities and organizations shall maintain contemporaneous financial and operational

records sufficient to show compliance with this Chapter and state law governing medical cannabis, which shall

be subject to inspection by the City. Such records shall protect the confidentiality of their members.

C. The City Manager may issue regulations to implement this Section. (Ord. 7500-NS § 1, 2016; Ord. 7161-NS

§ 4, 2010: Ord. 7068-NS § 3 (part), 12/08/08: Ord. 6826-NS § 2 (part), 2004)

12.26.140 Compliance with all applicable laws.

Nothing in this chapter shall be construed as excusing any person or entity from compliance with all other

applicable federal, state and local laws. The City may make compliance with such laws a condition of deeming

such person or entity in compliance with local law, except to the extent it would conflict with the purposes of this

chapter. (Ord. 7068-NS § 3 (part), 12/08/08: Ord. 6826-NS § 2 (part), 2004)

12.26.150 Violations of square footage limitations not punishable as public offenses--public nuisance.

A. Notwithstanding anything to the contrary, violations of square footage limitation in Section 12.26.040.D shall

not be punishable as public offenses to the extent that doing so would conflict with state law.

B. Violations of this Chapter are hereby declared to be public nuisances and shall be subject to Chapters 1.24

and 1.26. (Ord. 7359-NS § 2, 2014: Ord. 7161-NS § 5, 2010)

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Chapter 12.27MEDICAL CANNABIS DISPENSARIES AND COLLECTIVES

Sections:

Article I General

12.27.010 Applicability

12.27.020 Reserved

Article II Dispensaries

12.27.030 Eligibility requirements

12.27.040 Information requirements

12.27.050 Operating Standards

12.27.060 Signage

12.27.070 Product Safety, Quality Assurance and Labeling

12.27.080 Medical cannabis for low income Members

12.27.090 Records

12.27.100 Ranking and allocation procedure and criteria

12.27.110 Confidentiality of information

Article III Collectives

12.27.120 Limitations on Collective operations

12.27.130 Operating standards for all Collectives

Article IV Enforcement

12.27.140 Fees.

12.27.150 Authority of City Manager

12.27.160 Severability

12.27.170 Reserved

12.27.180 Reserved

12.27.010 Applicability

A. This Chapter applies to dispensaries and Collectives as defined in Chapter 12.23.

B. The three existing Retail Dispensaries permitted as of January 1, 2012, under Berkeley Municipal Code

section 12.26.130 shall have a grace period of 12 months from the effective date of this ordinance to comply

with it. Any such Retail Dispensary that substantially complies with this Chapter by that time may continue to

operate and shall not be required to participate in the ranking and allocation process under 12.27.100. Any such

Retail Dspensary that does not substantially comply with this ordinance by that date shall cease operation, but

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may apply to operate under Berkeley Municipal Code section 12.27.100 on the same basis as any other

applicant. (Ord. 7532-NS § 1, 2017: Ord. 7360-NS § 1 (part), 2014)

12.27.020 Reserved

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

12.27.030 Eligibility requirements

A. No Principal of any Dispensary may be a Principal for any other Dispensary in Berkeley. (Ord. 7532-NS

§ 3, 2017: Ord. 7360-NS § 1 (part), 2014)

12.27.040 Information requirements

Every Dispensary shall provide the following information to the City, and shall update it annually and whenever

there is any material change.

A. A description of the Dispensary and its location, which shall include such information as the City may

require that demonstrates compliance with applicable provisions of this Chapter.

B. The name, address and 24-hour contact information for each Principal, including a photocopy of at least one

primary form of photo identification, such as a California Drivers License or US Passport. This information shall

also include any aliases, maiden or married names or other former legal names.

C. Proof of each Principal’s status as a qualified patient or primary caregiver.

D. For each Principal, a signed consent for the City to conduct a background check, including criminal history.

E. Proof of the nature of the Dispensary’s organizational status, such as articles of incorporation, by-laws,

partnership agreements, and other documentation as may be appropriate or required by the City. (Ord. 7360-NS

§ 1 (part), 2014)

12.27.050 Operating Standards

Dispensaries shall also comply with the operating standards set forth in this Section.

A. Membership.

1. No person other than a Member may Cultivate Medical Cannabis on behalf of a Dispensary.

2. The scale of Cultivation by or on behalf of a Dispensary shall be proportional to its Member load.

3. No physician recommendations for Medical Cannabis may be provided on site.

4. All prospective members must be advised in writing, prior to accession to membership, as follows:

"WARNING: Medical cannabis products including edibles are not tested by local, state or federal

governmental agencies for health, safety, or efficacy. There may be health risks associated with the

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consumption of these products."

B. Non-diversion. Dispensaries shall take all practicable steps necessary to prevent and deter diversion of

Medical Cannabis to non-Members. Dispensaries must limit access to Medical Cannabis to authorized

personnel only, and must maintain an inventory management system that:

1. Accounts for all Medical Cannabis;

2. Tracks each Batch of Medical Cannabis received by the Dispensary from its source, including each

Batch’s approximate content of Active Ingredients and Cannabis By-Products as a percentage of weight;

3. Retains all information listed in paragraphs 1 and 2 above for a period of at least 120 days from receipt

of the Batch; and

4. Is capable of producing a summary showing the information necessary to verify non-diversion.

C. Dispensing.

1. Dispensaries may not dispense to any person who is not a Member, and may not dispense without

first verifying membership.

2. Dispensaries may not provide more Medical Cannabis for a Member than is necessary for the

personal medical use of the Qualified Patient for whom the Medical Cannabis is intended, and may not

dispense more than one ounce of dried Medical Cannabis in leaf form per day per Qualified Patient as

defined in state law; provided that:

a. if a Qualified Patient has a physician’s recommendation that this quantity does not meet his or her

medical needs, the Qualified Patient or his or her Primary Caregiver may possess, and the Dispensary

may dispense to him or her, an amount of Medical Cannabis consistent with those needs;

b. a Dispensary may provide more than one ounce of dried Medical Cannabis if the excess amount

is low concentration Medical Cannabis that would not normally be sold for consumption, and is only

used for preparation of Medical Cannabis Products or Edibles by a Member; or

c. a Qualified Patient needs a greater quantity due to a planned absence from the area.

3. Retail Dispensaries may not distribute free samples for promotional purposes outside of the

Dispensary premises.

4. If a Member has an identification card issued pursuant to Health & Safety Code Section 11362.71 or

11362.735, a Dispensary shall use the number from that card to ensure compliance with this subdivision.

5. No physician recommendations for Medical Cannabis may be provided on site.

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6. All prospective members must be advised in writing, prior to accession to membership, as follows:

"WARNING: Medical cannabis products including edibles are not tested by local, state or federal

governmental agencies for health, safety, or efficacy. There may be health risks associated with the

consumption of these products."

D. Members and employees.

1. All employees and volunteers must be Members who are at least 18 years of age.

2. Dispensaries may not admit any person under 18 years of age to membership without written

authorization of a parent or legal guardian. Any Member under 18 years of age shall be accompanied by a

parent or legal guardian at all times that such person is at the Dispensary.

E. Security.

1. Dispensaries shall provide adequate security and lighting on-site to ensure the safety of persons and

protect the premises from theft at all times. Lighting shall be of sufficient intensity to illuminate all areas of

the lot.

2. Dispensaries must maintain security guards and camera coverage of their entire grounds to an extent

sufficient to ensure the safety of persons and deter crime. Cameras must be maintained in good condition,

and use a format approved by the City Manager, which is of adequate quality, color rendition and resolution

to allow the ready identification of any individual committing a crime. The cameras shall be in use 24 hours

per day, seven (7) days per week. The areas to be covered by the security cameras include, but are not

limited to, dispensing areas, storage areas, cultivation areas, all doors, parking lots, and any other area

determined by the City Manager. Surveillance footage must be retained for a period of 90 days and made

available to the Berkeley Police Department for purposes of investigation of alleged crimes, promptly upon

request without the necessity of a warrant or subpoena. Retention and maintenance of security camera

recordings shall comply with Section 12.27.110.

3. Dispensaries must be equipped with an alarm system that is operated and monitored by a security

company licensed by and in good standing with the California Department of Consumer Affairs. Alarms

shall be maintained and in good working condition at all times.

4. In order to prevent unauthorized entry during non-business hours, a Dispensary shall either secure all

exterior windows and roof hatches from the inside with bars, retractable, folding or sliding metal gates, or

metal rollup or accordion doors, or provide at least one security guard during those hours.

5. Any security guards employed by Dispensaries shall be licensed and possess a valid Department of

Consumer Affairs "Security Guard Card" at all times. Security personnel may not be armed.

6. All Medical Cannabis except for limited amounts used for display purposes, samples or immediate

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sale, shall be securely stored at all times, and the entrance to all storage areas shall be locked and under

the control of staff.

7. Dispensaries shall make transactions with payment methods other than cash whenever feasible. All

cash received, except that needed for retail customer transactions shall be kept in a secure receptacle

such as a drop safe or other type of safe.

F. Neighborhood compatibility.

1. Dispensaries shall be operated to ensure neighborhood compatibility, and shall take all steps

necessary to ensure that Members do not create neighborhood disturbances. Such measures shall include,

but not be limited to, providing a security guard to patrol the area surrounding the Dispensary during all

hours of operation.

2. Dispensaries shall provide the Police Department and all residents and property owners within 100 feet

with the current name, phone number, secondary phone number and e-mail address of an on-site

community relations staff person to whom notice of any operating problems associated with the

establishment may be reported. This information shall be updated as necessary to keep it current.

Dispensaries shall encourage neighbors to call this person to try to solve any operating problems.

3. All Dispensaries shall have an on-site manager responsible for overall operation at all times they are

open, and shall provide the Police Department with contact information for all such persons, including

telephone number and e-mail address. Dispensaries shall also provide the Police Department with the

current name and phone numbers of at least one 24-hour-on-call manager. This information shall be

updated as necessary to keep it current.

4. Dispensaries shall take all reasonable steps to discourage and correct objectionable conditions that

constitute a public or private nuisance in parking areas, sidewalks, alleys and areas surrounding the

premises and adjacent properties. Such conditions include, but are not limited to: smoking; creating a noise

disturbance; loitering; littering; and graffiti.

5. Dispensaries shall ensure all graffiti is removed from property and parking lots under their control

within 72 hours of its appearance.

6. Dispensaries shall operate only between the hours of 9:00 a.m. and 9:00 p.m.

G. Consumption of Medical Cannabis, Tobacco and Alcohol.

1. Smoking of Medical Cannabis is prohibited at Dispensaries and within 50 feet of Dispensaries on the

public right of way. For purposes of this subdivision, the term "smoking" does not include the use of an

electronic and/or battery-operated device, the use of which may resemble smoking, which can be used to

deliver an inhaled dose of Medical Cannabis, including but not limited to any device manufactured,

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distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an

electronic pipe, an electronic hookah, or any other product name or descriptor.

2. Sale or consumption of tobacco is prohibited at Dispensaries.

3. Sale, service and consumption of alcoholic beverages at Dispensaries is prohibited, and Dispensaries

shall prohibit any person in possession of an alcoholic beverage from entering or remaining on the

premises.

H. Accessibility. Dispensaries shall comply with all physical accessibility requirements that would be

applicable to a newly-constructed building, except that pre-existing Dispensaries permitted under Ordinance No.

6826-N.S. shall not be required to comply with such requirements as long as they remain in the same location

as when this Chapter became effective, except as may be required by other laws.

I. Termination of Membership.

A Dispensary shall terminate the membership of any Member of whom it is aware who purposely or repeatedly

violates the limitations in this Section or who operates a motor vehicle after ingesting any Medical Cannabis

Product at that Dispensary. Prompt termination of membership under this subdivision shall be considered in any

enforcement proceeding against a Dispensary. (Ord. 7532-NS § 4, 2017: Ord. 7360-NS § 1 (part), 2014)

12.27.060 Signage

A. A sign shall be posted at the entrance to any Dispensary that includes the following language:

This Dispensary only provides medical cannabis to its members, who must have legally recognized

California Medical Cannabis Identification Cards or a verifiable, written recommendation from a

physician for medical cannabis.

The required text shall be of sufficient size to be easily read from a distance of five feet.

B. A sign shall be posted in a conspicuous location inside the structure at the location advising:

This Dispensary is registered in accordance with the laws of the City of Berkeley. The sale of

marijuana and the diversion of marijuana for non-medical purposes are violations of State law. The

use of marijuana may impair a person’s ability to drive a motor vehicle or operate heavy machinery.

C. A sign or signs shall be posted in a location or locations conspicuous from all sales areas inside the

structure that state:

WARNING: Medical cannabis products, including edibles are, not tested by local, state or federal

governmental agencies for health, safety, or efficacy. There may be health risks associated with the

consumption of these products.

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The required text shall be of sufficient size to be easily read from a distance of five feet. (Ord. 7532-NS § 5,

2017: Ord. 7360-NS § 1 (part), 2014)

12.27.070 Product Safety, Quality Assurance and Labeling

Medical Cannabis shall be tested, and specified compounds shall be quantitated, as set forth in this Section.

A. The following compounds shall be quantitated as set forth in the following table, using equipment and

methodologies with limits of detection for all compounds no greater than 0.1% by weight, or 1 mg/g.

Constituent Equipment/Methodology

THCA HPLC1, or GC2 with derivatization or other

methodology approved by a state or the

federal government as meeting a limit of

quantitation of 0.1% by weight

THC

CBDA

CBD

CBN

1 High-performance liquid chromatography2 Gas chromatography

B. The quantitative information required by subdivision A shall be printed on labels for all Medical Cannabis as

set forth in the following table.

Product type Label information

Cannabis (flowers, leaf and concentrates,

including water processed concentrates)

% by weight and mg/g

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

consumption)

weight/volume

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.

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C. Medical Cannabis shall be tested for contaminants as set forth in the following table. Medical Cannabis that

contains more than the permissible levels may not be provided to any Member or any other person, and shall

either be destroyed or returned to their source(s) at the option of the owner.

ContaminantTesting

methodologyPermissible amount

EPA-controlled

pesticides

commonly used in

cannabis cultivation

Any methodology that the

City determines is

sufficiently sensitive to

determine that the

permissible amount has

not been exceeded using

EPA- or FDA-accepted

methodologies for

pesticides, including, not

limited to GC-MS1, Elisa2

100 ppb (total of all quantitated pesticides)3

Microbiological

contaminants

Any methodology

approved by any

U.S. or recognized

international

standards

organizations

• APC4 < 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 flammable

solvents

(concentrates only)

Head space analysis 400 ppm (total of all solvents)7

1 Gas chromatography-mass spectrometry2 Enzyme-linked immunosorbent assay3 Parts per billion4 Aerobic plate count5 Colony-forming unit6 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

D. Baked goods, such as cookies and brownies, shall be exempt from testing for contaminants. These

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products are still subject to testing for potency, as required for the label information in Section 12.27.070.B, and

must use medical cannabis that has been tested for contaminants.

E. Dispensaries shall maintain a written or computerized log documenting:

1. the date, type, and amount of Product tested;

2. the source(s) of any contaminated Medical Cannabis;

3. the report containing the results of the testing, including the name and level of the substance detected;

and

4. the disposition of the Medical Cannabis from which the contaminated sample was obtained, including

the amount and the date and manner of disposition.

Such logs shall be maintained for at least one year and made available to the City upon request.

F. Packaging and Labeling for Medical Cannabis.

1. Medical 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 Dispensary may choose to

provide or that may be required by law:

a. the name and contact information for the Dispensary;

b. the weight;

c. the quantity of compounds as set forth in subdivision B;

d. the date of manufacture or production; and

e. a complete list of ingredients.

2. Scales and weighing mechanisms must be able to weigh to within 1/100th of a gram, shall be

maintained in good working order and shall be subject to annual inspection by either the Alameda County

Department of Agriculture/Weights and Measures or a licensed scale company.

G. Preparation, Packaging and Labeling of Edibles.

1. Edibles. Edibles shall be limited to those items approved in the California Homemade Food Act,

Chapter 6.1 (commencing with Section 51035) of Part 1 of Division 1 of Title 5 of the Government Code.

2. Compliance with State Food Safety Requirements. A Dispensary that prepares, dispenses, or in any

manner distributes Edible Medical Cannabis Products must comply with the relevant provisions of all State

and local laws specified by the City Manager regarding the preparation, distribution, labeling and sale of

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food, even if those laws are not directly applicable to Edibles. Any facility used by a Dispensary to produce

Edibles shall be constructed, operated and inspected in accordance with the applicable building code and

applicable food safety requirements.

3. Preparation of Edibles.

a. Individuals involved in the production or distribution of Edibles containing Medical Cannabis shall

thoroughly wash their hands before commencing production and before handling the finished product.

Gloves must be worn when packaging edible products containing Medical Cannabis.

b. In order to reduce the likelihood of foodborne disease transmission, individuals who are suffering

from symptoms associated with acute gastrointestinal illness or are known to be infected with a

communicable disease that is transmissible through foodstuffs are prohibited from preparing edible

products containing Medical Cannabis until they are free of that illness or disease, or are incapable of

transmitting the illness or disease through foodstuffs. Individuals who have sores or cuts on their

hands must use gloves when preparing and handling edible products containing Medical Cannabis.

c. Edibles that are produced or distributed at a Dispensary may only be prepared by a Member of

that Dispensary and, if prepared in Berkeley, shall only be prepared in a facility permitted and

inspected for the production of food by a government agency, such as a commercial kitchen or a

facility operating in accordance with the California Homemade Food Act.

d. Certified Food Handler. A Member who produces Edible Medical Cannabis Products must be a

State certified food handler. The valid certificate number of such Members must be on record at each

Dispensary where the edible product is distributed, and a copy of the certificate kept either on-site, or

made available during inspections if kept off-site.

e. Hand-washing Facilities. Hand-washing facilities shall be adequate and convenient and be

furnished with running water at a suitable temperature. Handwashing facilities shall be located in the

facility in Edible preparation areas and where good sanitary practices require employees to wash

and/or sanitize their hands, and provide effective hand-cleaning and sanitizing preparations and

sanitary towel service or suitable drying devices.

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 and 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 Medical Cannabis and the total weight (in ounces or grams) and

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

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package label must have a warning clearly legible emphasizing that the product is to be kept away

from children.

b Labels of Edibles that are not tested for contaminants (baked goods) shall include a statement that

the cannabis used in the product was tested for contaminants.

c. Packaging of Edibles shall be opaque, and may not make it appear as if the Edible is a food

product. Packaging that makes the product attractive to children or imitates candy is not allowed.

d. Packaging of edibles shall be tamper-evident.

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. Section 12.27.070 shall be deemed repealed and of no further force or effect once testing as set forth in

Article 10 of Chapter 3.5 of the Business and Professions Code is available. (Ord. 7532-NS § 6, 2017: Ord.

7360-NS § 1 (part), 2014)

12.27.080 Medical cannabis for low income Members

A. At least 2% (by weight) of the annual amount of Medical Cannabis in dried plant form provided by a

Dispensary to all Members, shall be provided at no cost to very low-income Members who are Berkeley

residents. This amount shall be calculated every six months, based on the amount dispensed during the

immediately preceding six months. Medical Cannabis provided under this Section shall be the same quality on

average as Medical Cannabis that is dispensed to other members.

B. For purposes of this Section, income shall be verified using federal income tax returns or other reliable

method approved by the City Manager.

C. For purposes this Section, "very low income" shall mean the household income established by the most

recent annual City Council resolution that establishes the maximum income levels for qualification for exemption

from specified local taxes and fees. (Ord. 7532-NS § 7, 2017: Ord. 7360-NS § 1 (part), 2014)

12.27.090 Records

A. General. All Dispensaries shall maintain contemporaneous financial and operational records sufficient to

show compliance with this Chapter, Chapter 12.26, and applicable California law, as well as satisfaction of

commitments made in the Dispensary’s application and during the ranking and allocation process. Such records

shall be maintained in a secure location under the control of the Dispensary within the City of Berkeley, and shall

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be subject to inspection by the City upon reasonable notice during regular operational hours or by appointment.

B. Finances.

1. Dispensaries shall operate on a Not-for-Profit basis. Sale of Medical Cannabis to cover anything other

than reasonable compensation and reasonable out-of-pocket expenses is explicitly prohibited. To the

extent they provide goods or services not related to Medical Cannabis, Dispensaries need not operate on a

Not-For-Profit basis.

2. Dispensaries 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 and shall include information on staff/principal compensation.

C. Membership. Dispensaries shall keep an accurate roster of Members, which shall include either the State

of California Medical Marijuana Identification Card number issued by a county pursuant to Health & Safety Code

Sections 11362.7 et seq. or a copy of a physician’s referral and, if using a primary caregiver, a written

authorization from the qualified patient to be represented by such primary caregiver. Such records shall be

maintained in a manner that protects the confidentiality of the Dispensary’s Members.

D. Operations. Dispensaries shall maintain the following information and 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 and non-monetary contributions from Members;

5. Total monetary and non-monetary distributions to Members other than Medical Cannabis Products or

Edibles dispensed for monetary consideration;

6. Salaries and overhead; and

7. A complete list of the types of Medical Cannabis, Medical Cannabis Products and Edibles available,

and the prices thereof.

E. Convictions. Dispensaries shall immediately report any conviction of a person subject to Section

12.27.030.A that would cause him or her to be ineligible to have a position other than that of Member. (Ord.

7360-NS § 1 (part), 2014)

12.27.100 Ranking and allocation procedure and criteria

The Council may by resolution establish procedures and criteria for accepting applications to operate

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Dispensaries and determining which, if any, to approve. (Ord. 7360-NS § 1 (part), 2014)

12.27.110 Confidentiality of information

A. The City’s review of information submitted or maintained pursuant to this Chapter shall preserve the

confidentiality of all information about Principals and Members to the maximum extent consistent with state and

local law. The City shall incur no liability for the inadvertent or negligent disclosure of such information.

Disclosure of any Principal or Member information to the City for purposes of this Chapter shall not be deemed a

waiver of confidentiality. Financial information provided to the City pursuant to Section 12.27.090 shall be

deemed to be "financial information" covered by Chapter 7.26.

B. The information required by Section 12.27.040 and recordings from security cameras, shall be confidential

and shall not be subject to public inspection or disclosure except to City employees for purposes of law

enforcement.

C. In order to protect confidentiality, Dispensaries shall not collect or maintain Protected Health Information.

Dispensaries shall maintain membership records and information about members in a manner that ensures that

the information will not be disclosed except as required by this Chapter or other laws. If a Dispensary maintains

information conveyed by a Member to a Dispensary regarding such Member’s medical condition, information

conveyed by a Member to a Dispensary regarding efforts to ameliorate or otherwise address symptoms

associated with such Member’s medical condition, or information regarding Medical Cannabis, Medical Cannabis

Products and/or Edibles provided to a Member, such information shall be kept in a manner that is in compliance

with the Confidentiality of Medical Information Act. Membership lists shall be available to City employees

charged with the administration of this Chapter for inspection on site without a warrant during business hours or

by appointment. (Ord. 7360-NS § 1 (part), 2014)

12.27.120 Limitations on Collective operations

As a use that is incidental to the residential use of property in residential zoning districts, Collectives shall

comply with the following operating limitations:

A. A Collective may not generate more than 5 Member trips per day per location, excluding trips by residents

of the Collective location.

B. Cash on hand shall be minimized, and no more than $1000 may be retained overnight per location.

C. Collectives may not operate at more than four (4) locations in Berkeley, and 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 have Member visits to obtain Medical Cannabis except for social purposes before 8:00

a.m. or after 9:00 p.m.

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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, and 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 and within

50 feet of Collectives on the public right of way.

H. Collectives may not have any exterior display identifying them as such.

I. Establishment and maintenance of a Collective may not involve any changes in utility service or exterior

modifications beyond those that would be customary for a residence.

J. Collectives may not have any impacts on adjoining properties, such as, but not limited to, excessive noise,

glare, smells, smoke, etc., beyond those that are normal for residential use. (Ord. 7360-NS § 1 (part), 2014)

12.27.130 Operating standards for all Collectives

Collectives shall comply with the following provisions of this Chapter.

A. Section 12.27.050, subdivisions A, B and C.

B. Section 12.27.070 subdivisions A-F. Subsection 12.27.070.C shall only apply to collectives with 25 or more

members.

C. Section 12.27.090, subdivisions B and D. Subsection 12.27.090.B.2 shall only apply to collectives with 25

or more members.

D. Section 12.27.110, to the extent applicable.

E. Before it may obtain a business license pursuant as required by Chapter 9.04, a Collective must obtain an

inspection from the City that any cultivation or processing of Medical Cannabis that it intends to undertake at a

given site will not pose a fire hazard. (Ord. 7360-NS § 1 (part), 2014)

12.27.140 Fees.

The City Council may establish by resolution the fees that shall be charged for administration and

implementation of this Chapter. The adoption of such fees shall not prevent the City from recovering

enforcement costs not specified in such resolution. (Ord. 7532-NS § 8, 2017: Ord. 7360-NS § 1 (part), 2014.

Formerly 12.27.170)

12.27.150 Authority of City Manager

The City Manager may promulgate regulations for the administration and implementation of this Chapter,

including, but not limited to, regulations relating to non-diversion, record-keeping, and tracking and tracing

The Berkeley Municipal Code is current through Ordinance 7569-NS, and legislation passed through September 12, 2017.

Berkeley Chapter 12.27 MEDICAL CANNABIS DISPENSARIES AND COLLECTIVES Page 38 of 39

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Medical Cannabis. (Ord. 7532-NS § 9, 2017: Ord. 7360-NS § 1 (part), 2014)

12.27.160 Severability

If any word, phrase, sentence, part, section, subsection, or other portion of this Chapter, or any application

thereof to any person or circumstance is declared void, unconstitutional, or invalid for any reason, then such

word, phrase, sentence, part, section, subsection, or other portion, or the prescribed application thereof, shall be

severable, and the remaining provisions of this Chapter, and all applications thereof, not having been declared

void, unconstitutional or invalid, shall remain in full force and effect. The City Council hereby declares that it

would have passed this title, and each section, subsection, sentence, clause and phrase thereof, irrespective of

the fact that any one or more sections, subsections, sentences, clauses or phrases had been declared invalid or

unconstitutional. (Ord. 7532-NS § 10, 2017: Ord. 7360-NS § 1 (part), 2014. Formerly 12.27.180)

12.27.170 Reserved

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

12.27.180 Reserved

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

The Berkeley Municipal Code is current through Ordinance 7569-NS, and legislation passed through September 12, 2017.

Berkeley Chapter 12.27 MEDICAL CANNABIS DISPENSARIES AND COLLECTIVES Page 39 of 39

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Proposed changes to the Berkeley Municipal Code related to Delivery-Only Dispensaries

June 1, 2017

12.23.020 Definitions H. 1. “Dispensary” means both Retail Dispensaries and Delivery-Only Dispensaries.

2. "Retail Dispensary" shall mean an organization that is authorized underChapter 12.27 and Title 23 to dispense Medical Cannabis at a lawfully established non-residential location. A Dispensary may also provide other incidental services to its Members to the extent permitted by state law, such as cultivating, acquiring, baking, storing, processing, testing, transporting and delivering Medical Cannabis. In dispensing Medical Cannabis to its Members, a Dispensary may be reimbursed for the cost of its services and materials. A Dispensary may be organized as any statutory business entity permitted under California law, provided it operates in a Not-For-Profit manner as defined in Chapter 12.27.

3. “Delivery-Only Dispensary” is a Dispensary that is limited to acquiring MedicalCannabis and related products, and delivering it to its Members, and does not have a location to which Members may come to acquire Medical Cannabis or any other good or service.

12.27.115 Delivery-Only Dispensaries – Delivery requirements A. In addition to the six existing Retail Dispensaries, under Berkeley Municipal Code

Section 12.26.130 and any Retail Dispensaries selected under Section 12.27.100, an unlimited number of Delivery-Only Dispensaries shall be permitted, on a first-come-first-served basis.

B. Delivery-Only Dispensaries shall comply with the requirements of Chapter 12.23and this Chapter that are applicable to Dispensaries except those that are determined by the City Manager to be inapplicable to Delivery-Only Dispensaries because of the nature of their operation as distinct from Retail Dispensaries.

C. Delivery-Only Dispensaries shall only be allowed under this Section in zoningdistricts where they are specifically permitted.

D. All Dispensaries that provide delivery services to their members shall comply withthe following requirements, as well as all applicable requirements of state law. In the event of a conflict, state law shall prevail.

1. All vehicles used for delivery shall be maintained and operated in a mannerand in a condition required by law and applicable regulations.

2. The following persons may not drive delivery vehicles:a. a person who does not possess a valid driver’s license;b. a person who has been at fault within the two years immediately preceding

the application in any motor vehicle accident causing death or personal injury; c. a person who has been at fault in three or more motor vehicle accidents

within the previous 12 months. d. a person who has been under suspension, revocation or probation within

the last five years by the Department of Motor Vehicles for a cause involving the safe operation of a motor vehicle;

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e. a person who has been convicted of any of the following misdemeanoroffenses within the past five years: driving under the influence or reckless driving involving alcohol or reckless driving involving bodily injury;

f. a person who has been convicted of any of the following offenses: a secondor subsequent conviction for driving under the influence, or any felony conviction for driving under the influence (with or without injury), or vehicular manslaughter, or habitual traffic offender.

3. The following persons may not be involved in making deliveries:a. any person who is required to register as a sex offender under Section

290 of the California Penal Code; b. any person within the past ten years who has been convicted of any felony

offense involving moral turpitude. 4. Persons involved in making deliveries must have in their possession a copy of

the document memorializing the City’s approval of the delivery service. 5. Persons involved in making deliveries may not be armed.6. Delivery vehicles may not advertise any activity related to Cannabis or

advertise the name of the Dispensary. 7. Delivery of the Medical Cannabis shall be directly to the residence or

business address of the Member unless said residence or business is in a park, school or hospital. Deliveries to any other locations are prohibited.

8. Deliveries may occur only between the hours of 8:00 a.m. and 11:00 p.m.9. The delivery vehicle shall not carry or transport at any one time more than a

total of $3,000 worth of medical cannabis, in any combination. 10. All orders to be delivered shall be packaged by the name or identification

number of the Member for whom the delivery is intended. 11.In addition to the requirements of Section 12.27.050 subdivisions A and B, the

person responsible for making deliveries shall have a copy of the record of all delivery requests while making deliveries.

12. Signage advertising the Delivery-Only Dispensary or referencing cannabis,including symbols such as a cannabis leaf or a green cross, is prohibited at the Delivery-Only Dispensary.

13. Signage advertising the dispensary or referencing cannabis, includingsymbols such as a cannabis leaf or a green cross, is prohibited on any delivery vehicle.

14. All Dispensaries that provide delivery service shall maintain at all timesCommercial General Liability providing coverage at least as broad as ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury with limits of not less than One Million Dollars ($1,000,000) per occurrence and Comprehensive Automobile Liability (owned, non-owned, hired) providing coverage at least as broad as ISO Form CA 00 01 on an occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than One Million Dollars ($1,000,000). The Commercial General Liability policy shall provide contractual liability, shall include a severability of interest or equivalent wording, shall specify that insurance coverage afforded to the City shall be primary, and shall name the City, its officials and employees as additional insured. Failure to maintain insurance as required herein at all times shall be grounds for immediate suspension of the privilege of providing delivery service.

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PROPOSED 2018 Commission Meeting Dates

Name of Commission: Medical Cannabis Commission

Commission Secretary: Elizabeth Greene

2017 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, 7/5/18 OR 2:00 PM

Thursday, 7/12/18

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, 9/6/18 OR 2:00 PM

Thursday, 9/13/18

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

Thursday, 10/11/18

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

Thursday, 11/8/18

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

January consideration – Martin Luther King Jr. Day is on Monday, 1/15/18.

March consideration – Purim is on Thursday, 3/1/18.

April consideration – Passover is on Saturday, 3/31/18, Easter Sunday is on Sunday, 4/1/18, and Orthodox Easter is on Sunday, 4/8/18.

June consideration – Memorial Day is on Monday, 5/28/18.

July consideration – July 4th is observed on Wednesday, 7/4/18.

September consideration – Labor Day is on Monday, 9/3/18. Yom Kippur is on Wednesday, 9/19/18.

October consideration – If September meeting is held on 9/13, then there will only be three weeks between that and an 10/4 meeting. Indigenous People’s Day is Monday, 10/8/18.

November consideration – If October meeting is held on 10/11, then there will only be three weeks between that date and a 11/1 meeting. Veteran’s Day is observed on Monday, 11/12/18.

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To: Mayor and Berkeley City Council From: Berkeley Cannabis Commission Subject: Medical Cannabis Cultivation Licensing & Selection Date: November 17, 2017

Considerations

from: BMCC Letter to: BCC, February 23, 2016 Meeting, subject: Planning Commission Recommendations Writing on behalf of Medical Cannabis Commission to express Commission’s unanimous support for Planning Commission’s recommended changes to Zoning Ordinance Section 23E.72.040, related to medical cannabis cultivation. The Medical Cannabis Commission support for these changes based on following reasons:

1. Many changes necessary – address compatibility w/ new State laws, passed Oct. 2015, related to medical cannabisregulations, specifically max. indoor cultivation area (22,000 sq.ft.), 600 ft. school buffer zone – cultivation sites.

2. Identifying total sq.ft – for cultivation w/ numeric limit (180,000 sq.ft.) mirrors current 6 limit locations each w/max. size 30,000 sq.ft., restates, maximizes production area, therefore increasing taxation revenue.

3. Removing limit on cult. Locations # - allows more opportunities for smaller businesses to be established, newState laws mention specifically: Vertical Integration- Complicated restrictions to prevent vertical integration (AB 266,19328). In general, licensees can only hold licenses- 2 separate categories. These smaller businesses will have own Statelicensing category under new State regs.

Commission believes these changes will make the City’s existing medical cannabis cultivation ordinance morecompatible with new State law, and certainly more favorable to smaller cultivation businesses which we considerto be the best suited and most likely to locate in Berkeley.

In addition, commission cultivation selection process will have significant input from West Berkeley Artisans & Industrial Companies (WEBAIC), we began conversation w/ one of their members at planning commission hearings, which will continue.

Thank you for your careful, serious consideration of this important issue, which should improve the quality of medicine and lower the cost to qualified medical cannabis patients, as well as provide employment and tax revenue for our community in general.

Date: January 2017from: Councilmember Hahn: What was the rationale for allowing medical cannabis sites to be permitted by-right? I know that was in Measure T, but given that everything in T is subject to change by the Council (& it looks like much of it has been or will be changed), why was that carried forward? Staff A: Measure T was a Berkeley ballot measure that passed in 2010. It stipulated that “four medical cannabis dispensaries shall be permitted as of right with a Zoning Certificate in C prefixed zones if they comply with the parking requirements applicable to the uses they include, and any security requirements promulgated by the Chief of Police”. For cultivation businesses, Measure T specified that they “shall be permitted as a matter of right with a Zoning Certificate at 6 locations in the M District, subject to the following limitations…”. City staff carries regulations forward as specified in a ballot measure unless modified by the City Council. Historically, the Council does not modify direction from ballot measures. The City Council modified the 6 cultivation location limit in 2016.

Cannabis Cultivation Ordinance/Licensing – from CC Vice Chair Pappas – Opposing Proposed 6 Location Limit – BCC Meeting, June 27, 20171. Tax revenues- 180k sq ft (measure T, BCC- 3.15.16)- $1 million median estimate (low $658k to high $1.3 million),annual taxes - 180k sq ft cultivated vs. 132k sq ft (6 locations x 22k sq ft- new state regulation), only $165k in annualtaxes if cultivation limited- 6 locations, & average each site- 5k sq ft.Lost potential tax revenue to the City- $835k- 6 cultivation sites total 30k sq ft.2. Unnecessary restriction- locations for cultivation. Retain maximum of 180k sq ft cultivation in city. To label 6location limit solution to “unlimited locations” is a negative connotation not applied to other 35+ use categories inWest Berkeley, none have restriction on location number. Singling out this category does not recognize importance ofmedical cannabis cultivation regarding quality & cost for patients.

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Cultivation Licensing and Selection – Page 2

3. Encourage small businesses (under 5k sq ft area). These businesses have own licensing category under new statelaw & are better suited for Berkeley considering rentals available, lease rates & energy costs for indoor growing.Furthermore, with Berkeley’s # of parcels less 5k sq ft, city has opportunity to offer diverse group of small-businesscultivators, ideal for entry level businesspersons- including African Americans & Latinos significantly hurt by War onDrugs. In Oakland, community equity considerations & ownership in cannabis business currently mandated.4. Land Use. M Zone: 72 parcels, 61 under 5k sq. ft. 85% parcels in M + MM + MU-LI Districts, less than 5k sq. ft.Only 3.5% of 4 Manufacturing Districts’ inventory used if 180k sq. ft. cultivated. Only, 0.7% of ManufacturingDistricts’ land area & 0.03% of total city land area for cultivation of medical cannabis.5. Rental Market Impact Considerations. Some new spaces not needed when current Berkeley undergroundcultivators seek licenses. Other vacancies - not leased for cultivation due to reluctant landlords. Communities -cannabis cultivators “gobble up” space & increase rents (e.g., Colorado Springs, Denver, Oakland) DO NOT HAVESQ FT MAXIMUM. Therefore highly improbable, 3.5% of rentals in Manufacturing Districts- significantly increasecosts, other 96.5% rental inventory.6. Current Statewide Cultivation Proposals. Localities encouraged- initiate cultivation regulation. CannabisCultivation Prgm now Cal Cannabis Cultivation Licensing - preference local ordinances & regs prior Jan 1, 2018.Local Permits Required Commercial activity- BOTH state & local , permit . Grandfathering Facilities operating in compliancewith local ordinances before Jan 1, 2018- operate until- license, approved or denied. Facilities operation before Jan 1, 2016 receivepriority. Existing local licenses fast tracked for state license- possible local tax revenue delay avoided.7. Medical cannabis commission, Planning commission, Staff. In agreement with lack of fundamental basis &reasoning for 6 cultivation location limiting.8. BCC & mayor – lack - sensible/knowledgeable reasoning, 6 location limit, existing cultivation operations to acceptregulations/taxation, reduction/ elimination residential collective cultivation. Long previous unnecessary delays.

from: Cannabis Commission Opposing 6-Location Cultivation Limit - Land Use Cultivation Cannot Overwhelm the Manufacturing Districts: • Only 3.5% of the four Manufacturing Districts’ inventory would be used if all allowable 180,000SqF were cultivated.• Similarly, only 0.7% of the Manufacturing Districts’ land area and 0.03% of total city land area would be used forcultivation of medical cannabis.• Some Manufacturing District Inventory (including warehouses) is protected solely for manufacturing businesses and,therefore, could not be used for cultivation.• Some cannabis leases will not take new space because some current underground cultivators in Berkeley will seeklicenses.• Not all vacancies will be leased for cannabis because of reluctant landlords.• Oft-cited communities in which cannabis cultivators “gobble up” space and drive up rents (e.g., Colorado Springs,Denver, Oakland) DO NOT HAVE AN AGGREGATE SQUARE FOOT MAXIMUM.• It is highly improbable, therefore, that rents on 3.5% of inventory in the Manufacturing Districts would drive uprents for the other 96.5% of the inventory.

Previous discussion

from: MCC subject: Recommendation – removing numeric cultivation limitdate: Nov 5, 2015 meeting, CC recommended removing numeric limit, & capping area cultivation permitted in City to 180,000 sq. ft. Numeric limit - result loss of potential space for cultivation - each location, not large as possible. Removing limit allow smaller sites established in M District w/o reducing overall area for cultivation. 180,000 sq ft limit – max. based on assumed total from existing ZO language - 6 sites with maximum of 30,000 sq ft each.

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Cultivation Licensing and Selection – Page 3from: Councilmember Harrison subject: Compromise Suggestion – Cannabis Cultivation Ordinance Revisions – BCC Action Item 44, date: 6/27/17 Based on description in item Planning Commission considered, can City Council adopt 3rd option without returning to Planning Commission? Whatever Council decides – be noticed for another meeting for actual vote? Planning Commission Action: Planning Commission considered cultivation location quotas of 6+ at its 3-15-17 meeting. Commission voted to not recommend any specific quota number for cultivation locations to Council. Commission requested Council base any number it adopts on additional research, desire to encourage small “clean & green” businesses. (8-0-0-0, planning commission vote)

from: Cannabis Commissiondate: July 2017 Cannabis Commission (CC) recommends Berkeley City Council (BCC) oppose a 6-location limit to the number of medical cannabis cultivation sites. No other uses in West Berkeley are restricted to specific number of locations. A 6-location limit, because of recent changes in State law (22,000 sq.ft. indoor limitation), would reduce by 27% the maximum aggregate square feet allowed for cultivation, as approved by voters in 2010 & reaffirmed by BCC in February 2016. In addition, because 85% of parcels in the M + MM + MU-LI Districts less than 5,000 sq.ft., a highly likely

reality is limiting location number would result in smaller cultivation amount (%) of allowable square feet. Additional consideration, Berkeley’s number of small parcels (up to 5,000 sq.ft, BMCR Type 1a, CDFA Article

3.b, “Specialty Cottage Indoor”) are ideal for entry-level, aspiring cultivation businesspeople - many of whom,judging from public comment at monthly MCC meetings, will be African Americans & Latinos, disproportionatelyaffected by War on Drugs. Berkeley has an opportunity to take a step to address this inequity.

A limit on number of locations, & thereby significant reduction in potential square footage cultivated, will sharply limit City’s ability to raise from $658,000 to $1,322,800 in new annual tax revenue. Other cities & counties are lifting cultivation bans, thereby successfully directing taxes gained from cannabis operations toward municipal problems. Here in Berkeley, from homelessness, community funding, and potholes.

Thus, after 2+ years of extensive research, MCC recommends the BCC continue to support & not alter or amend its February 2016 decision & that BCC:

adopt & finalize MCC & staff cultivation ordinance & licensing recommendations maintain an effective control factor of an 180,000 aggregate square foot maximum for medical cannabis

cultivation in Berkeley, oppose limiting number of cultivation locations, for the sake of cottage industry, patient medicine quality &

price, community tax revenue benefits We urge you to read and review the carefully prepared enclosed documents. The first page provides a more

detailed explanation of MCC’s reasoning on this matter. The second page provides further background & information. The two attachments provide sources & supporting material for information & data on the first two pages. A final document is in response to concerns and questions expressed at the January 31, 2017 BCC meeting. Please contact any member of the MCC for further inquiry or questions on this topic. Your appointees on the

MCC should contact you on this matter. Sincerely, David Lampach, Chair, MCC

Current recommendations/choices

from: staff, in response, recommends Council consider one of two options:A. Maintain existing Zoning Ordinance language (180,000 sq.ft. limit, no quota on # locations); orB. Add quota – no less than 9 locations, allowing for possibility of 180,000 sq.ft. Cultivation; orC. 3rd Council option – direct staff prioritize local growers/cooperatives in permitting process / set aside someallotted sq.ft. specifically for local small growers/cooperatives. Achieved by maintaining all cultivators' 6 locationlimit (using max. of 132,000 of available 180,000 ft.), allocating remaining 48,000 ft. to local cultivators, cooperatives,without specific location limit.

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Cultivation Licensing and Selection – Page 4from: vice chr. Pappas, Berk. cannabis com. subject: Comprehensive Berkeley Cannabis Regulations

Cultivation – Ordinance23E.72.040 Medical Cannabis CultivationA. ...Cultivation of medical cannabis defined, Chapter 12.26, Chapter 12.27 & State’s Medical Marijuana Regulation& Safety Act permitted - matter of right with Zoning Certificate in M District, subject to following limitations:1. Such locations limited to licensed medical cannabis organizations.2. Medical cannabis may not be dispensed, & client, patient/member services prohibited.3. No single location used for cultivation & associated uses by licensee may exceed 22,000 sq.ft., except separatespaces used by different licensees may be aggregated on same location.4. Total area for medical cannabis cultivation not exceed 180,000 sq.ft..B. Locations comply w/ security regulations promulgated by Police Chief, & these requirements, & not locatedwithin 600 ft. of private / public elementary, middle / high school. Locations may include testing, processing,manufacturing & food preparation, if permitted by State’s Medical Marijuana Regulation & Safety Act.C. No medical cannabis uses approved under this Section until City Council adopts licensing process & standardsfor uses. Standards include requirement indoor cultivation uses provide energy offset through program specified byCity to offset net increased energy used by facility compared to a regular industrial facility, & may include whetherproposed facilities provide percentage of all usable product cultivated at no cost to very low income patients & willuse organic methods in cultivation & processing to maximum extent reasonable; & whether their form oforganization, ownership & practices ensure equity & accountability, low prices & adequate supply of high qualitymedical cannabis to members.Cultivation/LicensingA. Two-tier cultivation

1. Larger cultivations – 15,000 to 22,000 sq ft / 6 location limit with UP or ZAB hearingB. Smaller local grower priority

1. Remaining 180,000 sq ft area – (6 x 22,000 sq ft) - 132,000 sq ft = 48,000 sq ft – smaller local cultivators, ora. 180,000 sq ft area – (6 x 15,000 sq ft) -90,000 sq ft = 90,000 sq ft smaller local cultivators

2. Therefore 48,000 sq ft to 90,000 sq ft available to local small grower cooperatives cultivators3. Small grower cooperatives 2,000 to 10,000 sq ft – UP licensing; under 2,000 sq ft – ZC licensing

from: Cannabis Commission subject: Local Cultivator 3rd Option – Response – Additions1. Two-tier cultivation2. Larger cultivations – 15,000 to 22,000 sq ft / 6 location limit with UP or ZAB hearing3. Smaller local grower priority4. Remaining 180,000 sq ft area – (6 x 22,000 sq ft) - 132,000 sq ft = 48,000 sq ft to local cultivatorsor 180,000 sq ft area – (6 x 15,000 sq ft) -90,000 sq ft = 90,000 sq ft local cultivators5. Therefore 48,000 sq ft to 90,000 sq ft available to local small grower cooperatives cultivators6. Small grower cooperatives 2,000 to 10,000 sq ft – UP licensing; under 2,000 sq ft – ZC licensing

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To: Mayor and Berkeley City Council From: Berkeley Cannabis Commission Subject: Cannabis Nursery Ordinance – Licensing & Selection Date: November 17, 2017

Considerations CFDA – Proposed Nursery Regulations June 2017 / 3.7 Nursery Activities Nurseries in CDFA regs - cultivation site used solely as cannabis nurseries. Nurseries maintain plants in vegetative stage, growth period between germination & flowering – plant – no flowers/buds. Plants focus on photosynthesis & accumulating resources needed for flowering & reproduction. Some nurseries propagate from seed, most create clones - cuttings from “mother plants.” also produce seeds from mature plants.

Nursery operations - indoors / combination of outdoor, indoor, mixed-light techniques. Proposed Program -licensed nurseries meet cleanliness standards - minimize plant pests & diseases establishment & spread. 3.7.1 General Operations Nursery cultivation process involves following: 1. Preparing cutting materials & growth medium - sterilizing tools to remove cuttings (e.g., razor/sharp scissors) toreduce possibility - fungi, viruses, diseases affecting cuttings, & presoaking growing medium - pH-balanced water.2. Taking cuttings from mother plant - branch tips w/ 3+ nodes (leaves come out of individual stem), cutting off 1-2leaves at nodes (farthest from branch tip), & cutting at 45° angle (0.25” below last node). Branch tips range 2-6”.3. Treating and planting the cuttings - applying rooting product (gel/40 powder) to tip, cutting - stimulate rootgrowth. Cutting placed in growth medium (typically rockwool cubes, possibly other media - perlite & peat moss mix),& multiple cuttings placed in plastic tray. Some cultivators use perlite layer between tray & growing medium - allowspace, roots to grow once emerge from growth medium. Metal shelving units used - hold multiple trays.4. Growing cuttings until roots well established - daily lighting, temperature, moisture adjustments. Once allcuttings & growth medium placed on tray, cuttings & (when used) inside of humidity dome misted w/ water,humidity dome placed over tray. Ideal cutting climate conditions, kept at apprx. 72-80° (F) & covered, humidity domeremoved temporarily 2-3 times /day to mist cuttings & for fresh air under dome. Cuttings watered - prevent growthmedium - drying. Faster root development, heating pads placed underneath trays, if temperatures maintained in idealrange. Cuttings exposed to bright, not intense, light approximately 18-24 hrs. /day. Fluorescent lighting placed withinfew in. of plants, more intense lighting if farther from plants (2-6', depending on bulb wattage)5. Preparing rooted cuttings for transport & distribution final step in cultivation process. Once cuttings establishroots, quality assurance/quality control check completed - verify plant health, check for established roots, & inspectfor pests. Checked final cuttings placed in transport containers, distribution. Distribute within 2-3 days, roots established, some facilities held plants for several wks. - client needs. Once plants available - distribution, generallyprovided to retail dispensaries/directly to cultivators. Total time between planting cutting & distribution - rootedcannabis plant apprx. 10 days - 3 wks. Seed production - time used, cultivate for flowers, based (outdoor, indoor,mixed light). 3.7.2 Typical Equipment Used Nurseries - similar equipment, nutrient/resource, lighting, air ventilation/circulation needs - other cultivation methods. Nurseries - soil/hydroponic growth systems similar to indoor & mixed-light cultivation. Nurseries - similar lighting procedures & techniques to indoor & mixed-light cultivation operations, use more fluorescent lights than HPS. Use similar air ventilation & circulation operations - indoor/mixed-light cultivation operations.

Table ES-1. License Types

Cultivation Category Outdoor Indoor Mixed

Nursery No size Restriction No size Restriction No size restriction

Humboldt County Cannabis Land Use Ordinance Language Permitting RETAIL Cannabis Nurseries “Nursery”: licensee – produces only clones, immature plants, seeds, other agricultural products for retail/wholesale sale, used specifically for medical cannabis planting, propagation, cultivation. 55.4.8.7 Nurseries – producing commercial cannabis nursery products for retail sale, permitted use inside Coastal Zone, zoning districts CG, ML, MG, & MB, subject to Use Permit, Section conditions/limitations. Nurseries producing commercial cannabis nursery products for bulk wholesale sale/to supply retail nursery outlets permitted use in AE zoning district/ RA zoning district on parcels 5+ acres, subject to Special Permit, section conditions/limitations.

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Nurseries – Page 3Sonoma County Nursery DefinitionNursery – Cannabis: establishment produces only clones, immature plants, seeds – wholesale distribution to permitted cultivators/dispensaries – specifically for medical cannabis planting, propagation.Nursery – Retail: establishment – propagation of trees, shrubs, horticultural/ornamental plants grown under cover/outdoors for public sale. Includes commercial scale greenhouses, establishments for plant material, lawn and garden supplies, related items sale. Retail nursery not include cannabis nurseries, classified separately.Nursery – Wholesale: establishment – commercial production - trees, plants, seeds, stock, other vegetation grown on site outdoors in ground/in containers for wholesale distribution to other businesses. Wholesale nursery not include cannabis nurseries, classified separately. Wholesale nursery may include greenhouses up to 2,500 sq.ft. in size.Nursery – Wholesale Greenhouse: establishment – commercial production - trees, plants, seeds, stock, other vegetation grown within commercial greenhouse for wholesale distribution to other businesses. Wholesale greenhouse nursery not include cannabis nurseries, classified separately.

Tentative List of Current Plant Nursery 1. Lee's Florist & Nursery Address: 1420 University Ave, Berkeley CA 94702 District: 42. Berkeley Horticultural Nursery Address: 1310 McGee Ave, Berkeley, CA 94703 District: 53. East Bay Nursery Address:2332 San Pablo Ave, Berkeley, CA 94702 District: 24. Oaktown Native Plant Nursery Address:702 Channing Way, Berkeley, CA 94710 District: 2 (Note: within 300 ft ofDreamland For Kids Playground, but legal)5. Cactus Jungle Nursery and Garden Address: 1509 Fourth St, Berkeley, CA 94710 District: 1 (Note: within 300 ft ofGolden Gate Kids Preschool)6. Westbrae Nursery Address: 1272 Gilman St, Berkeley, CA 94706 District: 1 (Note: within 700 ft of RedwoodGarden Preschool)7. Spiral Gardens Address: 2850 Sacramento St, Berkeley, CA 94702 District: 2 (Note: within 900 ft of San PabloPark)8. FLORA ARTE Address: 2070 M.L.K. Jr Way, Berkeley, CA 94704 District: 4 (Note: within 900 ft of BerkeleyHigh)9. Native Here Nursery Address: 101 Golf Course Dr Tilden Regional Park, Berkeley, CA 94708, Berkeley, CA 94708District: 6?10. Oaktown Native Plant Nursery Address: 2410 Roosevelt Ave, Berkeley, CA 94703 District: 4 (Note: within 900 ftof Walden Center and School)11. Succulent & Cactus Address: 1735 Delaware St, Berkeley, CA 94703 District: 1 (Note: Within 500ft of OhloneDoggy Park)12. The Gardener Address: 1836 Fourth St, Berkeley, CA 94710 District: 1 (Note: Within 300 ft of Golestan CenterFor Language Immersion and Cultural Education)

Previous discussion

To: Honorable Mayor and Members of the City Council From: Councilmember Kriss Worthington - CONSENT CALENDAR July 25, 2017 Subject: Ordinance to Clarify City Policy on Cannabis Nurseries

RECOMMENDATION: Planning Commission & Cannabis Commission create ordinance to clarify city policy on cannabis/existing nurseries.

BACKGROUND: Considering state policies on cannabis regulation, imperative Berkeley follow such trends & clarify city policy on cannabis & existing nurseries. CA passed proposition 64 11-8-16, legalized cannabis use by adults 21 years/older. Chapter 1 of Prop.: cannabis nursery: “licensee that produces only clones, immature plants, seeds, & other agricultural products used specifically for planting, propagation, & cultivation of marijuana,”

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Nurseries – Page 4Type 4—Cultivation; Nursery license- specifically for cannabis nurseries.

Proposition 64 adopted zoning requirement for cannabis business. “No licensee – within 600-foot radius of school providing instruction in kindergarten, any grades 1 through 12, day care center, or youth center existing when license issued, unless a licensing authority/local jurisdiction specifies different radius.”

Chap. 20/Prop.: any CA city – right to adopt, enforce local ordinances to regulate adult use cannabis businesses. Urgent Planning Commission work with Cannabis Commission to adopt ordinances & regulations for adult use cannabis in order to emulate state progress on cannabis policy.

ENVIRONMENTAL SUSTAINABILITY Consistent with Berkeley’s Environmental Sustainability Goals and no negative impact.

Current recommendations/choices

From: Berkeley Cannabis Commission Subject: Nursery Regulation/Ordinance/Licensing Date: July 13, 2017

Unfortunately, our commission and cultivation subcommittee have neglected to review possible nursery regulations ordinance and licensing

Currently, council member Kriss Worthington has asked (see above) for our commission input on nurseries, because he has spoken with at least 2 nursery operators hoping to be licensed by the city.

Included above: CDFA proposed Nursery Regulations, June 2017. & additional nursery regulation in other jurisdictions.

Nursery Regulation Ordinance Licensing – Berkeley Considerations -Cultivation or cannabis business; presently nurseries not included in cultivation regulation ordinance; in placeexisting permitting for cannabis businesses (planning staff input?)-Zoning locations; cultivation businesses restricted to M-Zone; lower impact of nurseries; possible comparison totesting labs; perhaps even allowed in residential-Wholesale or retail; some nurseries sell only to dispensaries; other nurseries may provide clones, seeds to individuals,private cooperatives; perhaps 2 tier licensing-CDFA nursery considerations; worthy of commission review; provide overview of operations-Public comment, commission/staff discussion; present different aspects for nursery approval-Council member Worthington; willingness for fast-tracking and agendacizing; an incentive and inspiration comparedto years of continuing cultivation regulation ordinance licensing delays-Further input; from research and contacted/questioned interested/knowledgeable parties, possibly a late itemaddition to commission Nov. '17 packet-Staff input; possible pre-meeting research, also as late item; city attorney input

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Date: 10/10/2017

To: Honorable Mayor and City Council From: Cannabis Commission Subject: SUPPLEMENT - Recommendations for Comprehensive Cannabis Regulation in Berkeley

Please accept these late supplemental recommendations of the Cannabis Commission for cannabis regulation in Berkeley.

1 – Permit “For Profit” Businesses – The Cannabis Commission recommends that Berkeley permits cannabis businesses to become for profit, as soon as possible. State law allows cannabis businesses to be “for profit,” and there is no longer any reason to require a not-for-profit status. For-Profit status allows businesses access to capital that might otherwise be unavailable to not-for-profit businesses. This would help Berkeley based businesses be competitive in an increasingly difficult marketplace.

2 – Expansion of Cultivation Beyond the M District is Necessary – Cultivation of cannabis needs to be permitted beyond the M district, which has a near zero vacancy rate. Restrictions stemming from the designation of the skate park as a “youth facility” will exacerbate this problem even further than initially anticipated.

3 – Support Equity – The Cannabis Commission supports the development of policies that lead to equity and diverse ownership in all cannabis business categories.

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Open house 2017

You’re Invited!

CITY OF BERKELEY PLANNING DEPARTMENT

PRESENTS:

DECEMBER 6TH, 2017, 3PM–6PM1947 CENTER STREET, 3RD FLOOR

Meet the teaM who helps you build our City

Visit the beautifully reModeled perMit serViCe Center, learn how to subMit projeCt appliCations, and disCoVer how staff reViews your plans. see the work being done to ensure safe rental housing, and learn about the latest green energy prograMs. Meet staff who inspeCt buildings and CoMMerCial sites to ensure safe ConstruCtion and to

address toxiC ContaMination.

Refreshments, Answer Station,

Giveaways, and more!Please Note: This event is being held in a wheelchair accessible location. To request a disability-related accommodation(s) to participate, 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 event date. Please refrain from wearing scented products to this event.

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TO: Cannabis Commission

FROM: Elizabeth Greene, Medical Cannabis Commission Secretary

SUBJECT: Clarification of Council Referral re Cultivation Selection Process

DATE: November 16, 2017

At the July 13, 2017 meeting, the Commission developed a list of questions aimed to clarify the Council’s referral for a cultivation selection process. Staff discussed these questions with Councilmember Harrison; the questions and answers are below.

1. What is meant by “all forms of cultivators”?A: Indoor, outdoor and mixed light.

2. Can the six larger locations have multiple cultivators?A: Yes

3. Did the Council want a selection process for the six large sites as well as the smallersites? If not, what is the reasoning?A: Yes, there should be a selection process for small and large sites.

4. Do the 6 large cultivators/large cultivator sites need to be established before thesmall cultivators are selected? If so, what is the reasoning?A: No, the selection processes can occur concurrently.

5. Does “specific location limit” mean no limit on the number of cultivators smaller than15,000 sf?A: Yes. The term should have been “specific numeric limit”.

6. Is the area for small cultivators limited to 48,000 sf, or can it increase if the largercultivators do not use the maximum (22,000 sf) area permitted? (ie – if one cultivatoronly takes 15,000 sf, that leaves 7,000 sf that cannot be uses by another largecultivator.)A: The area can increase if larger cultivators do not use the entire 132,000 sf. Thiswill be determined as each individual cultivator is selected.

Staff also took the opportunity to ask why medium cultivators were identified as being between 15,000 sf and 22,000 sf, since the State’s definition includes businesses between 10,000 sf and 22,000 sf. The Councilmember did not know why the 15,000 sf number was used, and did not have a strong feeling about it. She was open to using the State’s figures.

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Cannabis Social Events This November

November 11-12High Times Cannabis CupSan Bernardino

December 9 • 10 AM - 4:30 PMCannabis 411: How To Build a Cannabis Business in California333 Madonna Rd., San Luis Obispo

November 18 • 11 AM - 10 PM3rd Annual Humboldt County CupRedwood Acres Fairground3750 Harris St. Eureka

November 18, 2017Oaksterdam 10 Year Anniversary Celebration & Award ShowScottish Rite Center Oakland, CA OaklandScottishRite.comGraduation Ceremony- 5:00-6:3010 Year Anniversary Celebration & Award Show- 7:00pm-11:00pm

PLEASE JOIN US TO CELEBRATE THE CANNABIS COMMUNITY & RECOGNIZE A DECADE OF QUALITY TRAINING FOR THE CANNABIS INDUSTRY

The evening will include but not limited to:

• Dinner• Awards Show• Entertainment• Networking Opportunities• Keynote Speaker

NETWORK WITH LEADERS & PIONEERS OF THE $6.7 BILLION CANNABIS INDUSTRY

KEYNOTE SPEECHfrom Oaksterdam University founder RICHARD LEE

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CANNABIS ADVISORY COMMITTEE MEETING

WHERE: Sacramento Masonic Temple, 1123 J Street, Sacramento CA 95814WHEN: Thursday, November 16, 2017, from 10 a.m. to 4 p.m.LIVE WEBCAST: Bureau to webcast meeting https://thedcapage.blog/webcasts/

Bureau of Cannabis Control (Bureau)- 1st public Cannabis Advisory Committee meeting Meeting Notice & Agenda http://bcc.ca.gov/about_us/committeeMeeting materials on the Bureau website as available.

CDFA Application Training Sessions for Cannabis Cultivation Licensing - 12:30 PM startTuesday, November 28Orange County—Santa AnaMarriott Courtyard8 MacArthur PlaceSanta Ana, CA 92707

Thursday, November 30San Bernardino CountyDouble Tree Inn285 East Hospitality LaneSan Bernardino, CA 92408

Tuesday, December 5Fresno CountyHugh M. Burns State Building2550 Mariposa Mall, Room 1036Fresno, CA 93721

Thursday, December 7Riverside CountyUC Riverside—Palm Desert Center75080 Frank Sinatra Drive, Building B114- B117Palm Desert, CA 92211

Tuesday, December 12Butte County—OrovilleButte College3536 Butte Campus Drive - Black Box TheaterOroville, CA 95965

Tuesday, November 28Yolo County—West SacramentoZiggurat Building707 3rd StreetWest Sacramento, CA 95605

Thursday, November 30Monterey County—SalinasCalifornia State University, Monterey Bay National Steinbeck Center1 Main Street, Salinas, CA 93901

Tuesday, December 5Mendocino County—UkiahUkiah Valley Conference Center200 South School StreetUkiah, CA 95482

Thursday, December 7Alameda County—OaklandElihu M. Harris State Office Building, Room 11515 Clay StreetOakland, CA 94612

Thursday, December 12Humboldt County—Eureka Sequoia Conference Center901 Myrtle AvenueEureka, CA 95501

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23C.16.060 Medical Cannabis Residential Cultivation

No Use Permit shall be required for qualified patients to cultivate medical cannabis in their residence or on their

residential property. (Ord. 7068-NS § 4 (part), 12/08/08)

23E.16.070 Medical Cannabis Uses

A. 1. Subject to the licensing requirement of paragraph 3, six medical cannabis dispensaries as defined in

Section 12.26.030 shall be permitted as of right with a Zoning Certificate in C-prefixed zones if they comply with

the parking requirements applicable to the uses they include, and any security requirements promulgated by the

Chief of Police. When applicable, Zoning Certificates for medical cannabis uses shall be issued without undue

delay and following normal and expedient consideration of the permit application.

2. Medical cannabis dispensaries may not be located within 600 feet of another medical cannabis

dispensary or a public or private elementary, middle or high school. It is the intent of the voters that the

Council not adopt buffer zones from additional uses absent a compelling necessity.

3. No new medical cannabis dispensary may be approved under this Section until the City Council adopts

a licensing process and standards for medical cannabis dispensaries. Such standards may include, but

shall not be limited to, whether proposed dispensaries will provide a percentage of all usable product

dispensed at no cost to very low income patients and will provide product that is produced using organic

methods; and whether their form of organization, ownership and practices ensure equity and accountability,

low prices and an adequate supply of high quality medical cannabis to their members.

B. A medical cannabis dispensary existing and authorized as of January 1, 2010, that does not comply with

this Section, may continue at its current medical cannabis dispensing location and shall be considered a legal

nonconforming use. Notwithstanding Section 23C.04.060 or subdivision (A)(2) of this Section, the Zoning Officer

may approve an Administrative Use Permit to allow the expansion of a legal nonconforming medical cannabis

dispensary use on any parcel or on two adjacent parcels where a dispensary was located on one of the parcels

as of July 1, 2010.

C. Uses such as, but not limited to, testing, processing, and food preparation, that involve medical cannabis

as defined in Chapter 12.26 but do not involve dispensing, client, patient or member services, or cultivation

(other than for testing), shall be evaluated and regulated under this Title without regard to the fact that they

involve medical cannabis, except that no commercial facility used for medical cannabis food preparation may be

used for the preparation of any other type of food. (Ord. 7501-NS § 1, 2016; Ord. 7161-NS § 6, 2010: Ord. 7068-

NS § 4 (part), 12/08/08)

23E.72.040 Medical Cannabis Cultivation

A. Notwithstanding anything to the contrary in this Chapter, cultivation of medical cannabis as defined in

Chapter 12.26, Chapter 12.27 and the State’s Medical Marijuana Regulation and Safety Act shall be permitted as

The Berkeley Municipal Code is current through Ordinance 7569-NS, and legislation passed through September 12, 2017.

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a matter of right with a Zoning Certificate in the M District, subject to the following limitations:

1. Such locations shall be limited to licensed medical cannabis organizations.

2. Medical cannabis may not be dispensed, and client, patient or member services are prohibited, at such

locations.

3. No single location used for cultivation and associated uses by a licensee may exceed 22,000 square

feet, except that separate spaces used by different licensees may be aggregated on the same location.

4. The total area used for medical cannabis cultivation shall not exceed 180,000 square feet.

B. Such locations shall comply with security regulations promulgated by the Chief of Police, and the

requirements of this Chapter, and shall not be located within 600 feet of a private or public elementary, middle or

high school. Such locations may include testing, processing, manufacturing and food preparation, if permitted by

the State’s Medical Marijuana Regulation and Safety Act.

C. No medical 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, and 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 and processing to the maximum extent reasonable;

and whether their form of organization, ownership and practices ensure equity and accountability, low prices and

an adequate supply of high quality medical cannabis to their members. (Ord. 7464-NS § 1, 2016: Ord. 7161-NS

§ 7, 2010)

The Berkeley Municipal Code is current through Ordinance 7569-NS, and legislation passed through September 12, 2017.

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Subject: CANNABIS BUSINESS' – CURRENTLY LICENSED/LOCAL ADULT USE PERMITTING - TO OBTAIN STATE LICENSING To: Mayor and Berkeley City Council From: Berkeley Cannabis Commission Date: November 17, 2017

CONSIDERATIONS

Subject: Commercial Cannabis Regulations and Licensing Meeting Date: July 25, 2017 Item Number: 51 Submitted by: Mayor Jesse Arreguin Revised ordinances updated, reflect recently passed SB 94, Medicinal & Adult Use Cannabis Regulation & Safety Act (MAUCRSA). Trailer bill - Governor Brown 6-27, significant changes to CA commercial cannabis regulatory scheme. New law, combines medical & adult-use cannabis systems into 1 licensing structure w/ same regulatory framework governing medical & adult use facilities. Berkeley’s local licensing regulations must be consistent w/ recently adopted state law...AMENDING CHAPTER 12.23 - BERKELEY MUNICIPAL CODE - GENERAL CANNABIS REGULATION BE IT ORDAINED by Council of City of Berkeley as follows: Section 1. Chapter 12.23 of Berkeley Municipal Code amended to read as follows: Chapter 12.23 Commercial (non-medical) Cannabis General RegulationsSections: 12.23.010 Purpose & Applicability 12.23.020 Definitions 12.23.030 Operating Standards – Eligibility 12.23.040 Authority of City Manager 12.23.050 Abatement of violations 12.23.060 Severability

12.23.010 Purpose & Applicability Purpose – Chapter, collect in 1 location all definitions & general operating standards applicable to all Cannabis Organizations. Intent of Council, adopt regulations consistent w/ CA Health & Safety Code section 11362.5 (Compassionate Use Act), CA Health & Safety Code sections 11362.7-11362.83 (Medical Marijuana Program), Medicinal & Adult-Use Cannabis Regulation & Safety Act (MAUCRSA) - protect public health, safety, & welfare. Nothing in Division intended to reduce rights, qualified patient, primary caregiver, authorized by CA Health & Safety Code sections 11362.5(d) & 11362.765, individuals 21 years of age/older, authorized by AUMA Act. Division interpreted consistent w/ state law. Nothing in Division intended, authorize sale, distribution, possession, planting, cultivation, harvesting, drying, processing, manufacturing, compounding, converting, producing, deriving, or preparing of marijuana, or any other transaction, in violation of state law. Division applies to Commercial Cannabis Organizations as defined in Section 12.2X.020(J). …12.2X.020 Definitions [relevant to Adult Use cannabis business permitting]…C. "Cannabis" - same meaning as Section 26001(f), Business and Professions Code. D. “Cannabis By-Products”: delta-8-THC & cannabinol present in amounts >.2% product’s dry weight. E. “Cannabis Organization”: any licensee required by state, licensed as type “A-license” / type “M-license” pursuant Business & Professions Code & starting w/ Section 26000; CO includes Commercial Cannabis Organization & Medical Cannabis Organization ...G. “Commercial Cannabis Activity”: same meaning set forth, Section 26001(k), CA Business & Professions Code. H. “Cannabis Cultivation Business” / “Cultivation Business”: Cannabis Organization, primary activity Cultivation. I. “Cannabis Cultivation Facility”/“Facility”: building / location Commercial Cannabis cultivated. J. "Cannabis Organization"/“CO”: person req. hold lic. Div. 10 (end Section 26000), Business & Professions Code.

1. All CO’s authorized under Chapter have state lic. under Division 10, Business & Professions Code. 2. With exception - testing laboratory licenses, may be used to test cannabis & cannabis products regardless whether intended for use by individuals possessesing physician's recommendation, all licenses under Chapter bear clear designation by State indicating license for commercial marijuana adult-use cannabis activity, distinct from licensed commercial medical cannabis activity, prominently affixing an "A"/"M," respectively.

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Cannabis Businesses – Page 2...M. “Commercial Cannabis Organization”/“CCO”: licensee required, state, licensed type "A-license" - cultivation, manufacture / distribution of cannabis & cannabis products intended for adults 21+ yrs. age & do not possess physician's recommendations....Q. “Customer”: natural person 21+ yrs. age. ...T. “Edible Cannabis Product” (“Edible”): Commercial Cannabis Product intended, whole/in part, for human consumption. Edible Medical Cannabis Products not considered food, purposes of implementation CA Retail Food Code (Health & Safety Code §§ 113700 et. Seq.)/California Sherman Food & Drug & Cosmetic Act (Health & Safety Code §§ 109875 et. seq.). U. "Primary caregiver": same meaning provided in CA Health & Safety Code Section 11362.7. V. “Principal”: same meaning “Owner” under Section 26001(al)(1) of Chapter 1, Division 10 CA Business & Professions Code & rules/regulations - Bureau Cannabis Control in Department Consumer Affairs. W. “Manufacture”: same as in Section 26001(ag), Chapter 1, Division 10, CA Business & Professions Code . X. “Manufacturer”: same as Section 26001(ah), Chapter 1, Division 10, CA Business & Professions Code. “Medical Cannabis Organization” / “CCO”: any licensee required by state, licensed type "M-license" - cultivation, manufacture /distribution cannabis, cannabis products intended for Qualified Patients/Caregivers....Z. "Solvent": substance, another substance is dissolved in, forming solution. AA."Tincture": extract, Cannabis, solution of such, typically made w/ alcohol. AB."Qualified patient" same as CA Health & Safety Code, Section 11362.7…12.23.030 Operating Standards – Eligibility A. COs comply w/ CA law governing Commercial Cannabis Activity, state laws adopted, Commercial Cannabis, including, not limited to DivisionS 8 & 10 Business & Professions Code, Chapters 12.2X, 12.2X, 12.2X, Title 23 Berk. Municipal Code, any other City laws or regulations, pay all applicable state/ local taxes.

1. To extent Chapter, Chapters 12.2X, 12.2X, 12.2X more restrictive - state law, apply. Extent requirements of Chapter, Chapters 12.2X, 12.2X, 12.2X less restrictive - state law, requirements, state law apply.

B. COs only obtain Cannabis from licensees authorized to distribute cannabis under Division 10, CA Business & Professions Code no later than 2019, or otherwise provided by state law. …E. No person allowed position w/ CCO if <21, except provided State law, Chapter 12.27 / 12.25, or convicted of: 1. homicide; 2. within preceding 10 yrs., any serious/violent felony in Penal Code Section 1192.7(c), Section 667.5(c); 3. within preceding 10 yrs., violation of Penal Code Sec. 243-247, except for subdivision (a) Section 243; 4. within preceding 10 yrs., offense under Section 11361, Articles 1, 3, 5.within preceding 5 years felony violation Health & Safety Code Section 11358, Section 11359, Section 11360. F. All COs maintain contemporaneous financial, operational records sufficient to show compliance Chapter & Chapters 12.2_, 12.2_, 12.2_, state law governing medical cannabis, which records shall subject to city inspection. 12.23.040 Authority of City Manager A. City Manager & designee authority to determine nature of CO/purported CO & whether CO complies w/ any of requirements of Chapter/Chapters 12.26, 12.27, 12.23, to conduct inspections provided in Chapter 1.16. B. City Manager, designee application process. implement Chapter, Chapters 12.2_, 12.2_, 12.2_ ASAP. City Manager, designee issue regs implement Chapter, Chapters 12.2_, 12.2_ , 12.2_. C. City Manager, designee authority enter private property, perform inspections necessary, convenient implement, enforce Chap., adopt regs implement Chapter, Chapters 12.26, 12.27, 12.25. D. City, public interest, not disclosing info. containing names, addresses, SS #, tax info., security details, operating procedures applicants/licensees submitted - Chapter 12.23, 12.24, 12.25, 12.26, 12.27 outweighs public interest disclosing &, all info. submitted, license, application, Cannabis license exempt from disclosure. CA Government Code Sec. 6254. (& BMC 15.12.110 Community right to know; public records.) CA Health & Safety Code Sec. 11362.713, info. containing names, addresses, SS# patients, medical conditions, names primary caregivers, received, contained records DPH, any county DPH deemed “medical information” within meaning Confidentiality Medical Information Act (Civil Code § 56, et seq.) not disclosed by City except in accordance w/ restrictions disclosure individually identifiable indo. - Confidentiality Medical Information Act, CA Government Code Section 6254, other CA law. City finds public interest not disclosing info. w/ names, addresses, SS#, tax info., operating procedures any applicant/ licensee submitted extent Chapter 12.27 outweighs public interest disclosing, all information submitted connection w/ license, app. Medical Cannabis lic. exempt, disclosure. CA Gov. Code Soc. 6254. (see also BMC 15.12.110 Community right to know; public records.) E. City Man., former/existing Berkeley officials, administrators, employees not do w/o court order signed, judge:

(1) Use agency money, facilities, property, equipment, personnel, assist fed. agency investigate, detain, detect, report, arrest person, commercial/noncommercial cannabis/medical cannabis activity authorized CA & here.

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Cannabis Businesses - Page 3(2) Respond request, federal agency, personal information, individual authorized Commercial Cannabis Organization possess, cultivate, transport, manufacture, sell, possess for sale Cannabis Products, if request made for investigating/enforcing fed. marijuana law. (3) Provide info., person applied/received license, engage in commercial cannabis/commercial medical cannabis activity this Chapter, MAUCRSA, MCRSA, & AUMA. (4) Transfer individual, fed. law enforcement authorities, purposes marijuana enforcement/detain individual, request federal law enforcement, conduct legal under state law, authorized under this chap.

Purposes sec., following definitions: (1) “AUMA”: Control, Regulate & Tax Adult Use Marijuana Act, approval of Prop. 64 @ 11-8-16, state gen. Election, Division 10 (end Section 26000) Business & Professions Code. (2) “MCRSA” - Medical Cannabis Regulation & Safety Act, Chapter 3.5 (end w/ Section 19300) Div. 8 Business & Professions Code, licensing Cultivators, Manufacturers, Testing Laboratories, Distributors, Dispensaries med. cannabis, Medical Cannabis Products this & Article 2.5 (commencing Sec. 11362.7) REPEALED by MAUCRSA. (3) “MAUCRSA”, Medicinal & Adult-Use Cannabis Regulation & Safety Act of 2017. 12.23.050 Abatement of violations A. Violations Chapter, Chapters 12.2_, 12.2_, 12.2_ constitute public nuisance under Chapter 1.26. City may enforce Chapter via proceedings, Chapter 1.24, Chapter 1.28, Chapter 23B.64, other law/ordinances deems appropriate. B. Notwithstanding anything to the contrary, violations of this Chapter or Chapters 12.26, 12.27, 12.23 or 12.2X shall not be punishable as public offenses to the extent that doing so would conflict with state law. 12.23.060 Severability If word, phrase, sentence, part, section, subsection, other portion, Chapter, any application thereof person/circumstance declared void, unconstitutional, invalid, such word, phrase, sentence, part, section, subsection, other portion, prescribed application thereof, severable, remaining provisions of Chapter, all applications thereof, not having been declared void, unconstitutional/invalid, remain, full force/effect. City Council declares passed this title, each section, subsection, sentence, clause, phrase thereof, irrespective any sections, subsections, sentences, clauses, phrases declared invalid/unconstitutional.

BERKELEY CANNABIS BUSINESS LICENSES – Currently listed, including dispensary cultivators •055 186601003,,,BL-004969,CANNABIS COLLECTIVE, Cannabis, EFW HEALTH, CC 3 Partnership 2437 PIEDMONT AVE # 22 BERKELEY, CA 94704-2472 Business Owner: 2437 PIEDMONT AVE. BERKELEY, CA 94704 •057 203401000,,,BL-004657,CANNABIS WHOLESALE DISTRIBUTION, Cannabis, GDO MEDS, CC 0 Corp. 2120 UNIVERSITY AVE. BERKELEY, CA 94704-1026 Business Owner: 2120 UNIVERSITY AVE, BERKELEY, CA 94704 •060 246502100,No,No,BL-052649,COLLECTIVE (CANNABIS), Cannabis, CRAFT INDUSTRIES LLC, CC 6 LLC 1474 UNIVERSITY AVE. #44 BERKELEY, CA 94708-1807 Business Owner: 2323 ROSE ST. BERKELEY, CA 94708 •060 235100107,Yes,Yes,BL-050654,MANUFACTURING & WHOLESALE OF CANNABIS PRODUCTS, Cannabis, DOC GREEN'S HEALING COLLECTIVE, CC 4 Sole Ownership 1563 SOLANO AVE. #420 BERKELEY, CA 94707, Business Owner: 1310 NINTH ST. BERKELEY, CA, 94710 BERKELEY, (37.879448,•053 159901000,,,BL-004622, MEDICAL CANNABIS COLLECTIVE, Cannabis, STONEY CREEK HEALTHWORKS, CC 2 Corp.KRISTOFER KOOI, 855 EAST LINDO AVE. CHICO CA, 95926 Business Owner: 2922 OTIS ST. E BERKELEY, CA 94703 BERKELEY, (37.855405,•,,,BL-004110,MEDICAL CANNABIS R & D LABORATORY, Cannabis, C3 LABS LLC, CC 8 Partnership C3BERKELEY, (37.880786, ZZZZZZZZZZZZZ,,,BL-008197,MEDICAL BERKELEY,

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Cannabis Businesses - Page 4•056 194200302,,,BL-006452,MEDICAL MARIJUANA PRODUCTION FACILITY, Cannabis, 5/9 PATIENTS ASSOCIATION, CC-2 Corp. 816 BANCROFT WAY BERKELEY, CA 94710-2227,Business Owner: 816 BANCROFT WAY BERKELEY, CA 94710 BERKELEY, (37.863441,•,,,BL-004661,WHOLESALE CANNABIS, Cannabis, RIVER WELLNESS, CC 0 Corp. 201 SPEAR ST. STE 1100 SAN FRANCISCO, CA 94105-6164 Business Owner: 0 VARIOUS, BERKELEY, CA 94704 BERKELEY,•057 203401000,,,BL-004636, WHOLESALE CANNABIS SALES, Cannabis, PURE SOURCE COOPERATIVE INC., CC 0 Corp. 2120 UNIVERSITY AVE. BERKELEY, CA 94704-1026 Business Owner: 2120 UNIVERSITY AVE. BERKELEY, CA 94704 BERKELEY, (37.87221, ,,,BL-004557,WHOLESALE BERKELEY,•,,,BL-004659,WHOLESALE MEDICAL CANNABIS, Cannabis, LIANA CONCEPTS INC, CC 0 Corp. 201 SPEAR ST. STE 1100 SAN FRANCISCO, CA 94105-6164, Business Owner: VARIOUS, BERKELEY, CA 94704 •,,,BL-004664,WHOLESALE MEDICAL CANNABIS, Cannabis, BLACK AND GOLD GROUP INC., CC 0 Corp.1010 DALE CREEK RD. WEED, CA 96094-9025 Business Owner: VARIOUS, BERKELEY, CA 94704

•(37.879356, ,,,BL-004559, CANNABIS BERKELEY,•BERKELEY,(37.860945,,,Yes,BL-003431,MANUFACTURER BERKELEY,•BERKELEY, (37.863389, ,No,Yes,BL-050709,MED BERKELEY,(37.863389,,,,BL-003266,MEDICAL BERKELEY,•BERKELEY,(37.881417,,,,BL-004621,MEDICAL BERKELEY, (37.888503,•BERKELEY, (37.853966,ZZZZZZZZZZZZZ,,,BL-007374,MEDICAL BERKELEY,??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????BERKELEY, (37.883109,BERKELEY,(37.863462,(37.869271,BERKELEY, (37.879448,BERKELEY, (37.853966,BERKELEY, (37.848143,BERKELEY, (37.863437, BERKELEY, (37.863437,BERKELEY, (37.879305,BERKELEY, (37.85898,

PREVIOUS DISCUSSION

Subject: Ordinance to Clarify City Policy on Cannabis Nurseries / Current Cannabis Businesses To: Honorable Mayor and Members of the City Council From: Councilmember Kriss Worthington - CONSENT CALENDAR July 25, 2017 Recommendation: Planning Commission & Cannabis Commission create ordinance to clarify city policy on existing nurseries/cannabis businesses

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Cannabis Businesses – Page 5Proposition 64 adopted zoning requirement for cannabis business. “No licensee – within 600-foot radius of school providing instruction in kindergarten, any grades 1 through 12, day care center, or youth center existing when license issued, unless a licensing authority/local jurisdiction specifies different radius.”

Chap. 20/Prop.: any CA city – right to adopt, enforce local ordinances to regulate adult use cannabis businesses. Urgent Planning Commission work with Cannabis Commission to adopt ordinances & regulations for adult use cannabis in order to emulate state progress on cannabis policy.

Subject: Temp Rec Licenses for Existing Manufacturing BusinessFrom: [email protected] on behalf of daniel ! Sent: Wednesday, October 11, 2017 12:01 PM To: Greene, Elizabeth Elizabeth & Commission, Presentation before City Council last night - quite impressive, & taken well, I commend your obvious hard work. City Council seemed to approve allowing EXISTING MANUFACTURING LICENCEES to be granted temporary / "grandfathered in" COMMERCIAL RECREATIONAL LICENCES therefore can apply for State temporary Recreational Cannabis Manufacturing licenses available Jan 1st. Temporary commercial licenses already approved by Council for dispensaries (or will be soon), manufacturing businesses not included. As I mentioned to Council, our business & other Berkley manufacturers will be severely disadvantaged if we cannot apply for State rec. license Jan. 1. State license app. requires local license - permits Commercial Recreational sales, if we wait until spring 2018 when Berkeley Rec. ordinances scheduled for release, would not be able to apply for State Rec. licence until after. Very difficult to get products on shelves coming into Rec. market so late, dispensaries that already carry our products, including Berkeley dispensaries, must remove our products from Commercial sales because not made by "Commercial Cannabis Manufacturer". Let me know if anything I can do to make sure this crucial exception for Berkley to license EXISTING MEDICAL CANNABIS MANUFACTURES is issued temporary or "grandfathered" in COMMERCIAL RECREATIONAL MANUFACTURING LICESES proceeds in a timely manner, so that we can apply for a State license in November. Thank you kindly, Daniel Kosmal, Doc Greens Healing Collective

RECOMMENDATIONS / CURRENT CHOICES

Subject: Recommendations for Comprehensive Cannabis Regulation in Berkeley Date: 10/6/2017 To: Honorable Mayor and City Council From: Cannabis Commission

The Cannabis Commission respectfully submits the following recommendations regarding comprehensive cannabis regulation in Berkeley. ...2 -- Provisional Adult Use Licensing For Currently Licensed Cannabis Businesses – Cannabis businesses first need a local license before the state will grant a license permitting adult use retail sales. To the extent allowed under State law, the commission believes the city should issue provisional adult use licenses to pre-existing licensed cannabis businesses in the city. Under California Health and Safety Code 26070.5, local jurisdictions have the ability to issue provisional adult use retail licenses during the transition period leading to the full implementation of adult use cannabis regulation within the state. This would allow currently licensed entities within the city to prepare for full adult use implementation, and would also enable the city to capture additional tax dollars during the interim period.

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Cannabis Businesses – Page 6The relevant state law is as follows:

26070.5 (b) Any local jurisdiction may issue temporary local licenses to nonprofit entities primarily providing wholeplant marijuana and marijuana products and a diversity of marijuana strains and seed stock to low income persons so long as the local jurisdiction: (1) confirms the license applicant’s status as a nonprofit entity registered with the California Attorney General’s Registry of Charitable Trusts and that the applicant is in good standing with all state requirements governing 1 of 3 ITEM VII.A.1 CANNABIS COMMISSION OCTOBER 5TH, 2017 9 of 18 nonprofit entities; (2) licenses and regulates any such entity to protect public health and safety, and so as to require compliance with all environmental requirements in this division; (3) provides notice to the bureau of any such local licenses issued, including the name and location of any such licensed entity and all local regulations governing the licensed entity’s operation, and; (4) certifies to the bureau that any such licensed entity will not generate annual gross revenues in excess of two million dollars ($2,000,000). (c) Temporary local licenses authorized under subdivision (b) shall expire after twelve months unless renewed by the local jurisdiction. (d) The bureau may impose reasonable additional requirements on the local licenses authorized under subdivision (b).

3 – Where Should Cannabis Businesses Locate – Adult use retail, medical retail, and delivery-only dispensaries should remain or continued to be zoned in commercial areas. Existing permits for other cannabis businesses, e.g. edibles, topicals, oils, etc. have been issued in industrial zones. 4 – Which license types/permits should be issued – The Cannabis Commission supports the staff recommendation that all cannabis business license types should be permitted in Berkeley, with the exception of large cultivation licenses larger than 10,000 square feet... 6 – On The Issue Of Co-location – The current State cannabis regulations allow for contemporaneous colocation of both Medical and Adult use businesses. The commission recommends that Berkeley allow Medical and Adult use licenses to coexist with the same facility/business. The commission also recommends allowing separately licensed delivery only dispensaries to coexist at the same location, given their limited neighborhood impact and minimal spatial requirements. 7- No Additional Requirements Beyond State Regulations – The State allows for jurisdictions to create more restrictive regimes related to cannabis regulation. The Cannabis Commission recommends that Berkeley align with State minimum regulations in general, and not create a regulatory framework that is in any way more restrictive than State law. 8 – No Unnecessary Limitation On City’s Ability To Issue Additional Licenses – A current proposed draft ordinance for comprehensive cannabis regulation within Berkeley reads as follows:

H. The City Council shall establish procedures for the issuance and renewal of Commercial Cannabis Organization licenses. 2. Except as otherwise set forth in this Chapter 12.XX, the City shall not accept additional applications for Commercial Dispensary licenses until January 1, 2020.

The commission recommends that the city refrain from creating ordinance language that restricts its ability to create new licensees at any time that it deems appropriate. There is simply no need to legislate temporary monopolies in any license category. The city at its own discretion should be able to add dispensaries, or any other cannabis business, in accordance with the wishes of the community. City Council should therefore reject any effort to unnaturally limit its own flexibility with respect to deciding these issues in the future. 9 – Urgency – To the extent feasible, the commission supports urgency legislation to allow pre-existing cannabis businesses of all license types to operate in the city prior to the adoption of a comprehensive regulatory framework. The commission feels that Berkeley cannabis businesses will be at a competitive disadvantage vis-à-vis cannabis businesses in nearby cities that are quicker in implementing regulations. Thank you for your consideration.

COMMISSION SUMMARY

1. Review, adopt ordinance changes in CONSIDERATIONS2. Adopt similar process/temporary adult use permit for existing cannabis businesses as local MCDs

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Subject: MEDICAL CANNABIS CULTIVATION LICENSING & SELECTION To: Mayor and Berkeley City Council From: Berkeley Cannabis Commission Date: November 17, 2017

CONSIDERATIONS

Subject: Planning Commission Recommendations From: BMCC Letter To: BCC, February 23, 2016 Meeting,

Writing on behalf of Medical Cannabis Commission to express Commission’s unanimous support for Planning Commission’s recommended changes to Zoning Ordinance Section 23E.72.040, related to medical cannabis cultivation. The Medical Cannabis Commission support for these changes based on following reasons:

1. Many changes necessary – address compatibility w/ new State laws, passed Oct. 2015, related to medical cannabis regulations, specifically max. indoor cultivation area (22,000 sq.ft.), 600 ft. school buffer zone – cultivation sites.

2. Identifying total sq.ft – for cultivation w/ numeric limit (180,000 sq.ft.) mirrors current 6 limit locations each w/ max. size 30,000 sq.ft., restates, maximizes production area, therefore increasing taxation revenue.

3. Removing limit on cult. Locations # - allows more opportunities for smaller businesses to be established, new State laws mention specifically: Vertical Integration- Complicated restrictions to prevent vertical integration (AB 266, 19328). In general, licensees can only hold licenses- 2 separate categories. These smaller businesses will have own State licensing category under new State regs. Commission believes these changes will make the City’s existing medical cannabis cultivation ordinance more compatible with new State law, and certainly more favorable to smaller cultivation businesses which we consider to be the best suited and most likely to locate in Berkeley. In addition, commission cultivation selection process will have significant input from West Berkeley Artisans & Industrial Companies (WEBAIC), we began conversation w/ one of their members at planning commission hearings, which will continue. Thank you for your careful, serious consideration of this important issue, which should improve the quality of medicine and lower the cost to qualified medical cannabis patients, as well as provide employment and tax revenue for our community in general.

From: Councilmember Hahn:Date: January 2017 What was the rationale for allowing medical cannabis sites to be permitted by-right? I know that was in Measure T, but given that everything in T is subject to change by the Council (& it looks like much of it has been or will be changed), why was that carried forward? Staff A: Measure T was a Berkeley ballot measure that passed in 2010. It stipulated that “four medical cannabis dispensaries shall be permitted as of right with a Zoning Certificate in C prefixed zones if they comply with the parking requirements applicable to the uses they include, and any security requirements promulgated by the Chief of Police”. For cultivation businesses, Measure T specified that they “shall be permitted as a matter of right with a Zoning Certificate at 6 locations in the M District, subject to the following limitations…”. City staff carries regulations forward as specified in a ballot measure unless modified by the City Council. Historically, the Council does not modify direction from ballot measures. The City Council modified the 6 cultivation location limit in 2016.

Cannabis Cultivation Ordinance/Licensing – from CC Vice Chair Pappas – Opposing Proposed 6 Location Limit – BCC Meeting, June 27, 20171. Tax revenues- 180k sq ft (measure T, BCC- 3.15.16)- $1 million median estimate (low $658k to high $1.3 million), annual taxes - 180k sq ft cultivated vs. 132k sq ft (6 locations x 22k sq ft- new state regulation), only $165k in annual taxes if cultivation limited- 6 locations, & average each site- 5k sq ft.Lost potential tax revenue to the City- $835k- 6 cultivation sites total 30k sq ft. 2. Unnecessary restriction- locations for cultivation. Retain maximum of 180k sq ft cultivation in city. To label 6 location limit solution to “unlimited locations” is a negative connotation not applied to other 35+ use categories in West Berkeley, none have restriction on location number. Singling out this category does not recognize importance of medical cannabis cultivation regarding quality & cost for patients.

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Cultivation Licensing and Selection – Page 23. Encourage small businesses (under 5k sq ft area). These businesses have own licensing category under new state law & are better suited for Berkeley considering rentals available, lease rates & energy costs for indoor growing. Furthermore, with Berkeley’s # of parcels less 5k sq ft, city has opportunity to offer diverse group of small-business cultivators, ideal for entry level businesspersons- including African Americans & Latinos significantly hurt by War on Drugs. In Oakland, community equity considerations & ownership in cannabis business currently mandated.4. Land Use. M Zone: 72 parcels, 61 under 5k sq. ft. 85% parcels in M + MM + MU-LI Districts, less than 5k sq. ft. Only 3.5% of 4 Manufacturing Districts’ inventory used if 180k sq. ft. cultivated. Only, 0.7% of Manufacturing Districts’ land area & 0.03% of total city land area for cultivation of medical cannabis. 5. Rental Market Impact Considerations. Some new spaces not needed when current Berkeley underground cultivators seek licenses. Other vacancies - not leased for cultivation due to reluctant landlords. Communities - cannabis cultivators “gobble up” space & increase rents (e.g., Colorado Springs, Denver, Oakland) DO NOT HAVE SQ FT MAXIMUM. Therefore highly improbable, 3.5% of rentals in Manufacturing Districts- significantly increase costs, other 96.5% rental inventory. 6. Current Statewide Cultivation Proposals. Localities encouraged- initiate cultivation regulation. Cannabis Cultivation Prgm now Cal Cannabis Cultivation Licensing - preference local ordinances & regs prior Jan 1, 2018. Local Permits Required Commercial activity- BOTH state & local , permit . Grandfathering Facilities operating in compliance with local ordinances before Jan 1, 2018- operate until- license, approved or denied. Facilities operation before Jan 1, 2016 receive priority. Existing local licenses fast tracked for state license- possible local tax revenue delay avoided.7. Medical cannabis commission, Planning commission, Staff. In agreement with lack of fundamental basis & reasoning for 6 cultivation location limiting.8. BCC & mayor – lack - sensible/knowledgeable reasoning, 6 location limit, existing cultivation operations to accept regulations/taxation, reduction/ elimination residential collective cultivation. Long previous unnecessary delays.

From: Cannabis Commission Opposing 6-Location Cultivation Limit - Land Use Cultivation Cannot Overwhelm the Manufacturing Districts: • Only 3.5% of the four Manufacturing Districts’ inventory would be used if all allowable 180,000SqF were cultivated. • Similarly, only 0.7% of the Manufacturing Districts’ land area and 0.03% of total city land area would be used for cultivation of medical cannabis. • Some Manufacturing District Inventory (including warehouses) is protected solely for manufacturing businesses and, therefore, could not be used for cultivation. • Some cannabis leases will not take new space because some current underground cultivators in Berkeley will seek licenses. • Not all vacancies will be leased for cannabis because of reluctant landlords. • Oft-cited communities in which cannabis cultivators “gobble up” space and drive up rents (e.g., Colorado Springs, Denver, Oakland) DO NOT HAVE AN AGGREGATE SQUARE FOOT MAXIMUM. • It is highly improbable, therefore, that rents on 3.5% of inventory in the Manufacturing Districts would drive up rents for the other 96.5% of the inventory.

PREVIOUS DISCUSSION

Subject: Recommendation – removing numeric cultivation limitFrom: MCC Date: Nov 5, 2015 meeting, CC recommended removing numeric limit, & capping area cultivation permitted in City to 180,000 sq. ft. Numeric limit - result loss of potential space for cultivation - each location, not large as possible. Removing limit allow smaller sites established in M District w/o reducing overall area for cultivation. 180,000 sq ft limit – max. based on assumed total from existing ZO language - 6 sites with maximum of 30,000 sq ft each.

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Cultivation Licensing and Selection – Page 3Subject: Compromise Suggestion – Cannabis Cultivation Ordinance Revisions – BCC Action Item 44From: Councilmember Harrison Date: 6/27/17 Based on description in item Planning Commission considered, can City Council adopt 3rd option without returning to Planning Commission? Whatever Council decides – be noticed for another meeting for actual vote? Planning Commission Action: Planning Commission considered cultivation location quotas of 6+ at its 3-15-17 meeting. Commission voted to not recommend any specific quota number for cultivation locations to Council. Commission requested Council base any number it adopts on additional research, desire to encourage small “clean & green” businesses. (8-0-0-0, planning commission vote)

From: Cannabis CommissionDate: July 2017 Cannabis Commission (CC) recommends Berkeley City Council (BCC) oppose a 6-location limit to the number of medical cannabis cultivation sites. No other uses in West Berkeley are restricted to specific number of locations. A 6-location limit, because of recent changes in State law (22,000 sq.ft. indoor limitation), would reduce by 27% the maximum aggregate square feet allowed for cultivation, as approved by voters in 2010 & reaffirmed by BCC in February 2016. In addition, because 85% of parcels in the M + MM + MU-LI Districts less than 5,000 sq.ft., a highly likely reality is limiting location number would result in smaller cultivation amount (%) of allowable square feet. Additional consideration, Berkeley’s number of small parcels (up to 5,000 sq.ft, BMCR Type 1a, CDFA Article 3.b, “Specialty Cottage Indoor”) are ideal for entry-level, aspiring cultivation businesspeople - many of whom, judging from public comment at monthly MCC meetings, will be African Americans & Latinos, disproportionately affected by War on Drugs. Berkeley has an opportunity to take a step to address this inequity. A limit on number of locations, & thereby significant reduction in potential square footage cultivated, will sharply limit City’s ability to raise from $658,000 to $1,322,800 in new annual tax revenue. Other cities & counties are lifting cultivation bans, thereby successfully directing taxes gained from cannabis operations toward municipal problems. Here in Berkeley, from homelessness, community funding, and potholes. Thus, after 2+ years of extensive research, MCC recommends the BCC continue to support & not alter or amend its February 2016 decision & that BCC:

adopt & finalize MCC & staff cultivation ordinance & licensing recommendations maintain an effective control factor of an 180,000 aggregate square foot maximum for medical cannabis

cultivation in Berkeley, oppose limiting number of cultivation locations, for the sake of cottage industry, patient medicine quality &

price, community tax revenue benefits We urge you to read and review the carefully prepared enclosed documents. The first page provides a more detailed explanation of MCC’s reasoning on this matter. The second page provides further background & information. The two attachments provide sources & supporting material for information & data on the first two pages. A final document is in response to concerns and questions expressed at the January 31, 2017 BCC meeting. Please contact any member of the MCC for further inquiry or questions on this topic. Your appointees on the MCC should contact you on this matter. Sincerely, David Lampach, Chair, MCC

RECOMMENDATIONS/CURRENT CHOICESFrom: staff, in response, recommends Council consider one of two options:A. Maintain existing Zoning Ordinance language (180,000 sq.ft. limit, no quota on # locations); orB. Add quota – no less than 9 locations, allowing for possibility of 180,000 sq.ft. Cultivation; orC. 3rd Council option – direct staff prioritize local growers/cooperatives in permitting process / set aside some allotted sq.ft. specifically for local small growers/cooperatives. Achieved by maintaining all cultivators' 6 location limit (using max. of 132,000 of available 180,000 ft.), allocating remaining 48,000 ft. to local cultivators, cooperatives, without specific location limit.

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Cultivation Licensing and Selection – Page 4Subject: Clarification of Council Referral re: Cultivation Selection Process To: Cannabis Commission From: Elizabeth Greene, Medical Cannabis Commission Secretary Date: November 16, 2017 July 13, 2017 meeting, Commission developed questions to clarify Council’s referral for cultivation selection process. Staff discussed w/ Councilmember Harrison; questions & answers below. 1. What is meant - “all forms of cultivators”? A: Indoor, outdoor, mixed light. 2. Can 6 larger locations have multiple cultivators? A: Yes 3. Did Council want selection process for 6 large sites & smaller sites? If not, what reasoning? A: Yes, there should be selection process, small & large sites. 4. Do 6 large cultivators/large cultivator sites need establishing before small cultivators selected? If so, what reasoning? A: No, the selection processes can occur concurrently. 5. Does “specific location limit” mean no limit on # of cultivators smaller than 15,000 SF? A: Yes. Term should have been “specific numeric limit”. 6. Area, small cultivators, limited to 48,000 sf ? Or increase if larger cultivators do not use max. (22,000 sf) area permitted? (ie – if 1 cultivator only takes 15,000 sf, 7,000 sf that cannot be used by another large cultivator.) A: Area - increase if larger cultivators not use entire 132,000 sf. Determined as each individual cultivator selected. Staff asked why medium cultivators were identified as being between 15,000 s.f. and 22,000 sf, since State’s definition includes businesses between 10,000 sf and 22,000 sf. Councilmember did not know why 15,000 sf was used. Open to State’s figures.

Subject: Comprehensive Berkeley Cannabis RegulationsFrom: vice chr. Pappas, Berk. cannabis com. Cultivation – Ordinance23E.72.040 Medical Cannabis CultivationA. ...Cultivation of medical cannabis defined, Chapter 12.26, Chapter 12.27 & State’s Medical Marijuana Regulation & Safety Act permitted - matter of right with Zoning Certificate in M District, subject to following limitations:1. Such locations limited to licensed medical cannabis organizations.2. Medical cannabis may not be dispensed, & client, patient/member services prohibited. 3. No single location used for cultivation & associated uses by licensee may exceed 22,000 sq.ft., except separate spaces used by different licensees may be aggregated on same location.4. Total area for medical cannabis cultivation not exceed 180,000 sq.ft..B. Locations comply w/ security regulations promulgated by Police Chief, & these requirements, & not located within 600 ft. of private / public elementary, middle / high school. Locations may include testing, processing, manufacturing & food preparation, if permitted by State’s Medical Marijuana Regulation & Safety Act.C. No medical cannabis uses approved under this Section until City Council adopts licensing process & standards for uses. Standards include requirement indoor cultivation uses provide energy offset through program specified by City to offset net increased energy used by facility compared to a regular industrial facility, & may include whether proposed facilities provide percentage of all usable product cultivated at no cost to very low income patients & will use organic methods in cultivation & processing to maximum extent reasonable; & whether their form of organization, ownership & practices ensure equity & accountability, low prices & adequate supply of high quality medical cannabis to members. Cultivation/LicensingA. Two-tier cultivation 1. Larger cultivations – 15,000 to 22,000 sq ft / 6 location limit with UP or ZAB hearingB. Smaller local grower priority 1. Remaining 180,000 sq ft area – (6 x 22,000 sq ft) - 132,000 sq ft = 48,000 sq ft – smaller local cultivators, or a. 180,000 sq ft area – (6 x 15,000 sq ft) -90,000 sq ft = 90,000 sq ft smaller local cultivators 2. Therefore 48,000 sq ft to 90,000 sq ft available to local small grower cooperatives cultivators 3. Small grower cooperatives 2,000 to 10,000 sq ft – UP licensing; under 2,000 sq ft – ZC licensing

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Cultivation Licensing – Page 5

COMMISSION SUMMARY

From: Cannabis Commission Subject: Local Cultivator 3rd Option – Response – Additions1. Two-tier cultivation2. Larger cultivations – 15,000 to 22,000 sq ft / 6 location limit with UP or ZAB hearing3. Smaller local grower priority 4. Remaining 180,000 sq ft area – (6 x 22,000 sq ft) - 132,000 sq ft = 48,000 sq ft to local cultivatorsor 180,000 sq ft area – (6 x 15,000 sq ft) -90,000 sq ft = 90,000 sq ft local cultivators5. Therefore 48,000 sq ft to 90,000 sq ft available to local small grower cooperatives cultivators6. Small grower cooperatives 2,000 to 10,000 sq ft – UP licensing; under 2,000 sq ft – ZC licensing

Commission Statement re: cultivation ordinance/licensing and permit selection process In conclusion, the commission respectfully reminds the current mayor and city council of over 3 years delaying approval of the cultivation ordinance (for the sake of “waiting for state regulations”), and since January 31, the delay in approving a license and permit selection process for a limited (M-Zone) area of the city where cannabis cultivation is permitted according to Measure T (2010). Please act on the cannabis commission recommendations.

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Subject: CANNABIS DELIVERY-ONLY DISPENSING – ORDINANCE/LICENSING & SELECTIONTo: Mayor and Berkeley City Council From: Berkeley Cannabis Commission Date: November 17,2017

CONSIDERATIONS

Subject: Language related to deliveries, Delivery DefinitionFrom: MCRSA, Assembly Bill No. 266, CHAPTER 68919300.5... (m) “Delivery”: commercial transfer of medical cannabis/medical cannabis products from dispensary, to amount determined by bureau to primary caregiver/qualified patient defined Sec. 11362.7 Health & Safety Code, or testing laboratory. “Delivery” includes use by dispensary of technology platform owned & controlled by dispensary / independently licensed - enables patients / caregivers to arrange for / facilitate commercial transfer by licensed dispensary of medical cannabis / medical cannabis products...Article 9. Delivery 19340. (a) Deliveries - only made by dispensary in city, county, city, county not explicitly prohibit. (b) Upon licensing authority approval, licensed dispensary delivering medical cannabis / med. can. products comply w/ both of following:

(1) City, county, city, county where licensed dispensary located, where deliveries, do not prohibit delivery.(2) Dispensary employees delivering medical cannabis / med. can. products carry copy of dispensary license authorizing those services during deliveries & employee’s government-issued ID, present license, ID upon request – state, local law enforcement, regulatory authority employees, & other state, local agencies enforcing this chapter.

(c) County has authority impose tax, on each delivery transaction completed by licensee. (d) During delivery, licensee maintain physical copy - delivery request, make it available, request of licensing authority & law enforcement officers. Delivery request documentation comply w/ state, federal law regarding protection of confidential medical info. (e) Qualified patient / primary caregiver requesting delivery maintain copy of delivery request, make it available, on request, to licensing authority & law enforcement officers. (f) Local jurisdiction not prevent medical cannabis carriage / med. can. products on public roads by licensee acting in compliance with chapter.

Subject: Proposed changes to the Berkeley Municipal Code related to Delivery-Only Dispensaries Source: MCC Date: April 6, 2017

12.23.020 Definitions H. 1. “Dispensary” means both Retail Dispensaries, Delivery-Only Dispensaries. 3. “Delivery-Only Dispensary”, Dispensary limited to acquiring Medical Cannabis, related products, delivering it to Members, not have location where Members acquire Medical Cannabis, any other good / service.12.27.115 Delivery-Only Dispensaries – Delivery requirements A. In addition to 6 existing Retail Dispensaries, under Berkeley Municipal Code Section 12.26.130, any Retail Dispensaries selected under Sec. 12.27.100, unlimited number of D-oD permitted, on a first-come, first-served basis. B. Delivery-Only Dispensaries comply w/ requirements Chapter 12.23 & Chapter applicable, Dispensaries except those determined by City Manager inapplicable to Delivery-Only Dispensaries because of nature their operation. C. Delivery-Only Dispensaries shall only allowed in zoning districts where specifically permitted. D. Dispensaries providing delivery services comply w/ the following requirements, as well as all applicable requirements of state law. In event of conflict, state law shall prevail. 1. Delivery vehicles maintained & operated manner & condition required by law, applicable regulations. 2. May not drive delivery vehicles: a. not possess valid driver’s license; b. at fault within 2 years preceding app. in any motor vehicle accident causing death / personal injury; c. at fault in 3+ accidents within previous 12 months. d. under suspension, revocation, probation within 5 yrs. by DMV for cause, safe operation of motor vehicle; e. convicted any following misdemeanors within 5 yrs.: DUIs / reckless driving involving alcohol / reckless driving involving bodily injury; f. convicted of any: 2nd / subsequent conviction for DUI, felony conviction for DUI (with / without injury), vehicular manslaughter, habitual traffic offender.

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Delivery-only Dispensaries – Page 23. not involved in deliveries: a. registered sex offender; b. within 10 years - felony conviction involving moral turpitude. 4. must have in copy of document memorializing City’s service delivery approval. 5. may not be armed. 6. Vehicle not advertise Cannabis activity or Dispensary. 7. Medical Cannabis Delivery directly to residence / business address of Member unless residence / business in park, school / hospital. Deliveries to other locations prohibited. 8. Deliveries only between hours 8:00 a.m. - 11:00 p.m. 9. Delivery vehicle not carry / transport more than $3,000 total $3,000 worth medical cannabis, at 1 time. 10. Orders packaged by name / ID # of deliveree Member. 11. Deliverer have copy of record of all delivery requests while making deliveries. 12. Signage advertising D-oD / referencing cannabis, including symbols e.g. cannabis leaf / green cross, prohibited at D-oD. 13. Signage advertising dispensary / referencing cannabis, including symbols e.g. a cannabis leaf / green cross, prohibited on delivery vehicle. 14. Dispensaries providing delivery service always maintain Commercial General Liability providing coverage at least broad as ISO CGL Form 00 01 on occurrence basis for bodily injury, including death, of 1+ persons, property damage & personal injury w/ limits of not less than $1 million per occurrence & Comprehensive Automobile Liability (owned, nonowned, hired) providing coverage at least broad as ISO Form CA 00 01 on occurrence basis for bodily injury, including death, of 1+ persons, property damage & personal injury, w/ limits of not less than $1 Million. Commercial General Liability policy provide contractual liability, include severability of interest / equivalent wording, specify insurance coverage afforded to City primary, & name City, officials, employees as additional insured. Failure to always maintain insurance grounds for immediate suspension of privilege of providing delivery service.

PREVIOUS DISCUSSION

Subject: Delivery-only Dispensary Regulation From: Nasser Azimi, President Ohana Operations Date: February 22, 2017

Honorable Members of the Berkeley Medical Cannabis Commission (MCC)

We are very pleased to learn that City of Berkeley is considering regulations for Delivery-Only dispensaries. We appreciate the opportunity to share our experience, lessons learned, and proven industry standards from other jurisdictions that have already legalized marijuana delivery. Ohana Gardens’ leadership has over 8 years of experience in the marijuana industry, with emphasis on Cultivation and Delivery-Only Dispensaries, and over 25 years of technology integration into private and public business models. Over the past 3 years, our collective experience, research, and careful business planning has culminated into a state of the art and systemic approach for Delivery-Only Dispensary business model that includes, but is not limited to:

1. Patient and driver safety and security; 2. Discreet operations with near invisibility and no public access or signage; 3. Multi-level patient verification; 4. GPS Route Management with No-Delivery zones near schools or parks; 5. Transparent and auditable accounting of all transactions through the point of sale.

We are encouraged by the progress City of Berkeley has made to regulate marijuana business operations, in particular Delivery-Only Dispensaries. Delivery-Only business models that are based on proven industry standards are already in motion across a number of jurisdictions in California and Oregon. The entities involved are helping provide a good solution for jurisdictions that are rightly concerned about community complaints regarding the visibility of storefronts to our kids and neighborhoods, while expanding the City’s reach to capture tax revenue from neighboring jurisdictions that banned storefronts but allow deliveries via permitted entities from neighboring jurisdictions.

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As a responsible Berkeley-based operator with presence in other jurisdictions that have legalized marijuana, we would like to share some concerns about limiting the number of delivery-only dispensaries to 10 and the first-come-first-serve permitting procedures. Based on our experience and research, many jurisdictions have already experienced negative consequences associated with such policies and are now recovering from loss of tax revenue, procedural chaos, and unexpected liabilities associated with anti-trust matters. As such, we offer the following analysis of the advantages and disadvantages of such policies and alternative solutions that streamlined access to safe medicine in many other jurisdictions while empowering responsible operators to succeed.

Based on our experience, first-come-first-serve policies create inequities that mostly favor well capitalized entities to position themselves to be the “first in line” due to their financial capacity that is proven to outperform less capitalized start-up entities with responsible and experienced operators. Furthermore, use of a first-come-first-serve policy combined with a limitation of 10 licenses will clearly risk survival of existing Delivery-Only dispensary operators in Berkeley who have taken the initiative to create jobs and support the state and local tax revenue. If any of these entities does not make the top 10, they would have to close shop and terminate their tax paying sales and jobs.

Based on historical developments within other jurisdictions, zoning requirements combined with limited supply of Delivery-Only Dispensary facilities, will create market-driven limits and/or consolidation resulting in self-regulation of a limit that will eventually enable the most responsible operators to succeed regardless of size. Another disadvantage of limiting Delivery-Only Dispensaries is that it will undoubtedly entice dispensaries outside the City of Berkeley to compete and outperform the local Berkeley operators via their delivery services. If Berkeley limits the number to 10, well capitalized outside entities will have a limited base of competition in Berkeley and therefore can dominate the patient-base accordingly. However, if the City establishes no limits or at least a limit that correlates with a reasonable population density of the City districts or neighborhoods, that would provide a broader choice of medicine to patients while disturbing or limiting outside entities’ ability to compete within Berkeley and therefore keeping the tax revenue in the City!

Although banning outside entities from delivering within the city limits is an option, the enforcement costs of such a local law will clearly offset the benefits. In addition, if limiting is perceived to cause any sort of competitive imbalance by the well capitalized entities, the liabilities associated with a possible anti-trust legal action can also quickly offset the benefits.

Instead of the possible chaos that can result from first-come-first-serve permitting procedures, a point-based application review and evaluation maybe a more prudent and objective approach. Such approaches are objective because they put the burden of presenting and establish a sound operational capacity upon the operators rather than using public policies and the ensuing liabilities to do so. Such approaches are also equitable because they won’t give well capitalized entities the leverage to outperform responsible start-ups.

A point based system would place the burden of defining a credible and responsible operation upon the operators and would also prevent the chaos associated with entities “Camping out” in front of city hall to be the first or the first 10 to submit their application. With a point based system, the City would define proven industry standards as an operational framework for Delivery-Only applicants to meet industry standards for security, public safety, cash management, community outreach, etc. City of Berkeley could then require the operators to define detailed plans and procedures that are filed with their application to describe how they specifically will meet the City’s requirements of compliance with the industry standard framework. Using appropriate criteria for each component of the framework, City staff reviewing Delivery-Only Dispensary applications would assign points based on predefined criteria.

Example of criteria that are based on industry standards can include, but not be limited to: 1. Public safety 2. Facility security 3. Environment, resource, and odor management 4. Community engagement and outreach 5. Business and jobs growth plan 6. Crime fighting or reduction plan 7. Automated Track and trace transparency and auditability from seed/clone to sale 8. Cash management inside and outside of the facility (armored service?) 9. Fair treatment of employees or support of labor unions that can legitimize legalization

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Example of a scoring system can include, but not be limited to: 0 Point for undefined compliance with industry standard framework 1 Point for defined compliance that falls below the industry standards 2 Points for defined compliance that meets industry standards 3 Points for defined compliance that exceeds industry standards

Another alternative to a point based system or first-come-first-serve that would also prevent possible chaos and unanticipated liabilities would be for the city to establish a registration deadline for interested or currently operating applicants to register their respective business and business location within the City of Berkeley by a reasonable deadline of up to 30 calendar days. Registration would give the City a good view of the level of interest, identification of facility locations, number of jobs, etc. in order to ensure that responsible existing operators are not forced out of business which would result in loss of local jobs and possible loss of tax revenue to other jurisdictions.

We appreciate the opportunity to share our operational experience with you and look forward to working with you on the City’s Delivery-Only Dispensary regulations.

Please let me know if you have any questions. My contact information is (916) 757-4892 or [email protected] Sincerely Nasser Azimi, President Ohana Operations

Subject: Delivery-only Dispensary issues

To: Medical Cannabis Commission, Cultivation, AUMA and Delivery-Only Dispensaries Subcommittee From: Elizabeth Greene, Secretary Date: February 22, 2017 Feb 2, 2017 MCC meeting, MCC questions, to proposed delivery-only dispensary ordinance. Below these ideas, along w/ ideas from staff designed to focus subcommittee discussion on topic. Staff will review all changes w/ City Attorney. Staff suggests you consider these issues w/ following questions in mind: 1. Important to address issue in ordinance? 2. If yes, does MCC have adequate info for decision? 3. If additional info necessary to address issue, what info? Is answer difficult to obtain? Does answer exist? 4. Important to delay final decision on ordinance language to search for information? Issues mentioned at the February 2, 2017 MCC meeting. Staff provided responses when related to language in ordinance. 1. 12.27.115.D.2 & 3 – should crimes mentioned here be folded into Chapter 12.23 w/ other crimes. (Staff recommends these crimes remain in this ordinance because only relate to delivery-only dispensaries.) Subcommittee thinks these crimes should remain in ordinance, but should be look-back period. 5 yrs. recommended. Someone convicted of DUI 20 yrs. ago precluded from being driver. Seems inconsistent w/ fairness, spirit of rules. 2. 12.27.115.D.7 – remove term “of marijuana” – business should not deliver non-medical cannabis products outside proscribed delivery hrs. Subcommittee agreed.4. Should other uses be added to delivery-only dispensary definition ? (Staff is also looking into this.) Subcommittee believes definition should read as follows: “Delivery-Only Dispensary” Dispensary limited to delivering Medical Cannabis, related products / services to Members, does not have location Members may come to acquire Medical Cannabis. Further info sought as to why certain types of services couldn’t be offered @ business location (i.e. counseling services). Subcommittee thought patients should be allowed to visit delivery service location to inspect for cleanliness, for purpose of registering w/ delivery & other forms of patient inquiry.5. Should language specifying a) delivery services only deliver to patient and/or b) driver will verify patient ID at delivery time be added to ordinance? (Staff checking w/ City Attorney whether this necessary.) Subcommittee agrees. 6. Additional security requirements to protect drivers (require 360° cameras, etc.)? Subcommittee felt question should be asked in next MCC meeting during David Hua presentation. 7. Should definition be amended, indicate products used w/ medical cannabis (papers, bongs) delivered as well as actual med. can.? Yes. See #4 above.

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Question from staff:

1. Any other issues should be considered in ordinance? Yes. This question should be asked of David Hua at next MMC meeting. Subcommittee - drivers should be allowed more inventory than specifically ordered by patients during delivery routes. Patients will often reject products ordered in favor of others. Also, environmental, communal impacts of back & forth trips significantly heightened. Subcommittee recommends city should look into monetary cap per car (i.e. San Jose requires each car carry no more than $3000 product at any time).

2. Selection or application process, or should licenses issued on first-come/first-served basis? Does answer change if there is limit on # of D-oDs? If a selection process desired, what would MCC like to see in process, remembering more detailed info. required, slower process. Staff would evaluate, give comments on any selection process (legality of process, availability of staff to review applications, etc.) Subcommittee not support limit in # of licenses, or in alternative - if there is limit, selection process utilized. Justification for no cap, # of licenses hinges on fact from consumer perspective, no difference between in-city or out-of-city delivery service. Demand for delivery-based products exactly the same whether or not products originated in city. Therefore, same # of cars on road, limit or no-limit. Question then whether city interested in tax revenue. Limit simply denies city tax revenue, not changing amount of deliveries occurring. Seemed most sensible to not have limit on delivery services, since these businesses essentially nondescript, render low impact on surrounding neighborhoods. If there were limit, subcommittee felt a selection process should be used. Several delivery businesses attending meetings, helping inform process, interacting in community. Should have chance to operate in Berkeley. No selection process, limit would turn licensing process into race to permit office on first day of licensing, seemed illogical & inconsistent with community approach. Staff also looking into how City licenses businesses based outside City providing services within City (landscapers, housecleaning services, etc.) Delivery services subject to same licensing requirements these businesses have. Subcommittee would like to know more about how out-of-town service providers regulated, taxed. Enforcement mechanism? Staff- MRCSA (AB 266) language relating to delivery services.

V11. Discussion and Action Items A. Discuss Delivery-only Dispensaries and selection process.Date: March 2, 2017- Berkeley Cannabis Commission meeting Chair Lampach introduced David Hua, co-founder of Meadow, a platform for delivery-only dispensaries. David Hua presented information- Meadow & his knowledge about other jurisdictions handle delivery-only dispensaries. Meadow is a cannabis technology company that created a software that help dispensaries manage inventory, sales, and deliveries. Delivery dispensaries give the ability to deliver in areas that don’t allow storefronts. The software allows the dispensary to track its drivers and most deliveries arrive in about 36 minutes. In San Jose, drivers must be badged by the police department, drivers cannot carry weapons, and drivers can only have $3,000 worth of medical cannabis product in their trunk. With Meadow, each driver has a smart phone with the Meadow app and GPS, the products are stored in lock box in the trunk, driver has a backpack to take to door for delivery, and drivers do not go inside the destination. With Meadow, orders have to be made through a dispensaries and then the dispatcher will contact a driver and a label can be made in the trunk of a driver, but the software still tracks every step of the order. Drivers are required to check the license of the client with the address of the order. Meadow has only had a couple of instances where there were snatch-and-grabs, but no violent situations. In San Jose, most of the start locations of delivery-only dispensaries are located in industrial areas or commercial areas that are outside the main downtown areas. In regards to security, drivers have secure storage boxes in their trunks. In regards to traffic, delivery-only dispensaries do not increase traffic in areas, they can be compared to pizza delivery businesses. In regards to odors, the products are typically already packaged and therefore, delivery will cause little or no odors, compared to cultivation and manufacturing of the products. With Meadow, all clients must sign up online and provide their medical cannabis documents. Cities with delivery-only dispensaries require the following for their applications for a license: location of operation, type of vehicles, insurance, security plan, training programs, and best practices. In San Francisco, delivery-only dispensaries are required to get approval from Health Department and then a Use Permit with a Public Hearing. In some cities multiple delivery-only dispensaries can operate out of one location.

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RECOMMENDATIONS/CURRENT CHOICES

Subject: Recommendations for Comprehensive Cannabis Regulation in Berkeley Date: 10/6/2017 To: Honorable Mayor and City Council From: Berkeley Cannabis Commission Cannabis Commission submits following recommendations regarding comprehensive cannabis regulation in Berkeley.

1 – Approve Current Delivery-Only Dispensary Ordinance – Best interest of city to enact, implement current draft delivery-only cannabis dispensary ordinance. Current draft ordinance reviewed by Cannabis Commission, appropriate zoning recommended by Planning Commission. Under draft ordinance, delivery-only dispensaries not have to undergo selection process, little additional impact on city staff, other related city infrastructure. Delivery-only dispensaries already operating in Berkeley & surrounding cities. Commission meetings have included great deal of public comment, input from unlicensed delivery-only dispensary operators seeking regulation, licensing. Generally nature of these businesses - make deliveries where licensed & surrounding cities. E.g., delivery-only dispensaries licensed in Oakland already deliver cannabis products to Berkeley, vice versa.Therefore, whether Berkeley chooses to enact ordinance approving delivery-only dispensaries, this type of commerce will occur within city limits & consumer demand will be basically same. Cannabis Commission - in city’s interest to enact quickly draft delivery-only dispensary ordinance, to capture tax revenue, inevitably lost to other cities in absence of regulation...4 – Which license types/permits should be issued – Cannabis Commission supports staff recommendation all cannabis business license types permitted in Berkeley, with exception of large cultivation licenses >10,000 sq.ft. 6 – Co-location – Current State cannabis regulations allow for contemporaneous co-location of Medical & Adult use businesses. Commission recommends Berkeley allow Medical & Adult use licenses to coexist w/ same facility/business. Commission recommends allowing separately licensed delivery-only dispensaries to coexist at same location, given limited neighborhood impact & minimal spatial requirements. 7- No Additional Requirements Beyond State Regulations – State allows for jurisdictions to create more restrictive cannabis regulation regimes. Cannabis Commission recommends Berkeley align State min. regulations in general, not create regulatory framework more restrictive than State law. 8 – No Unnecessary Limitation On City’s Ability To Issue Additional Licenses – A current proposed draft ordinance for comprehensive cannabis regulation within Berkeley as follows:

1. City Council establish procedures issuance, renewal Commercial Cannabis Organization licenses.2. Except as otherwise set forth in this Chapter 12.XX, City shall not accept additional applications for Commercial Dispensary licenses until January 1, 2020.

Commission recommends city refrain from creating ordinance language restricting ability to create new licensees at any time it deems appropriate. No need to legislate temporary monopolies, any license category. City at its own discretion should be able to add dispensaries, any other cannabis business, in accordance w/ wishes of community. City Council should therefore reject efforts to unnaturally limit own flexibility in deciding these issues in future. 9 – Urgency – Commission supports urgency legislation to allow pre-existing cannabis businesses of all license types to operate in city prior to adoption of comprehensive regulatory framework. Commission - Berkeley cannabis businesses competitive disadvantage vis-à-vis cannabis businesses in nearby cities quicker in implementing regulations. Thank you for your consideration, David Lampach, chairman Berkeley Cannabis Commission

COMMISSION SUMMARY

1 – Adopt ordinance definitions and langauage from MRSCA/AB 2662 – Adopt licensing selection process, commission recommendations3 – Attempt Counsil review and approval before January 1, 2018

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Subject: CANNABIS NURSERY ORDINANCE – LICENSING & SELECTIONTo: Mayor and Berkeley City Council From: Berkeley Cannabis Commission Date: November 17, 2017

CONSIDERATIONS CFDA – Proposed Nursery Regulations June 2017 / 3.7 Nursery Activities Nurseries in CDFA regs - cultivation site used solely as cannabis nurseries. Nurseries maintain plants in vegetative stage, growth period between germination & flowering – plant – no flowers/buds. Plants focus on photosynthesis & accumulating resources needed for flowering & reproduction. Some nurseries propagate from seed, most create clones - cuttings from “mother plants.” also produce seeds from mature plants. Nursery operations - indoors / combination of outdoor, indoor, mixed-light techniques. Proposed Program - licensed nurseries meet cleanliness standards - minimize plant pests & diseases establishment & spread. 3.7.1 General Operations Nursery cultivation process involves following: 1. Preparing cutting materials & growth medium - sterilizing tools to remove cuttings (e.g., razor/sharp scissors) to reduce possibility - fungi, viruses, diseases affecting cuttings, & presoaking growing medium - pH-balanced water. 2. Taking cuttings from mother plant - branch tips w/ 3+ nodes (leaves come out of individual stem), cutting off 1-2 leaves at nodes (farthest from branch tip), & cutting at 45° angle (0.25” below last node). Branch tips range 2-6”. 3. Treating and planting the cuttings - applying rooting product (gel/40 powder) to tip, cutting - stimulate root growth. Cutting placed in growth medium (typically rockwool cubes, possibly other media - perlite & peat moss mix), & multiple cuttings placed in plastic tray. Some cultivators use perlite layer between tray & growing medium - allow space, roots to grow once emerge from growth medium. Metal shelving units used - hold multiple trays.4. Growing cuttings until roots well established - daily lighting, temperature, moisture adjustments. Once all cuttings & growth medium placed on tray, cuttings & (when used) inside of humidity dome misted w/ water, humidity dome placed over tray. Ideal cutting climate conditions, kept at apprx. 72-80° (F) & covered, humidity dome removed temporarily 2-3 times /day to mist cuttings & for fresh air under dome. Cuttings watered - prevent growth medium - drying. Faster root development, heating pads placed underneath trays, if temperatures maintained in ideal range. Cuttings exposed to bright, not intense, light approximately 18-24 hrs. /day. Fluorescent lighting placed within few in. of plants, more intense lighting if farther from plants (2-6', depending on bulb wattage)5. Preparing rooted cuttings for transport & distribution final step in cultivation process. Once cuttings establish roots, quality assurance/quality control check completed - verify plant health, check for established roots, & inspect for pests. Checked final cuttings placed in transport containers, distribution. Distribute within 2-3 days, roots established, some facilities held plants for several wks. - client needs. Once plants available - distribution, generally provided to retail dispensaries/directly to cultivators. Total time between planting cutting & distribution - rooted cannabis plant apprx. 10 days - 3 wks. Seed production - time used, cultivate for flowers, based (outdoor, indoor, mixed light). 3.7.2 Typical Equipment Used Nurseries - similar equipment, nutrient/resource, lighting, air ventilation/circulation needs - other cultivation methods. Nurseries - soil/hydroponic growth systems similar to indoor & mixed-light cultivation. Nurseries - similar lighting procedures & techniques to indoor & mixed-light cultivation operations, use more fluorescent lights than HPS. Use similar air ventilation & circulation operations - indoor/mixed-light cultivation operations.

Table ES-1. License Types

Cultivation Category Outdoor Indoor Mixed

Nursery No size Restriction No size Restriction No size restriction

Humboldt County Cannabis Land Use Ordinance Language Permitting RETAIL Cannabis Nurseries “Nursery”: licensee – produces only clones, immature plants, seeds, other agricultural products for retail/wholesale sale, used specifically for medical cannabis planting, propagation, cultivation. 55.4.8.7 Nurseries – producing commercial cannabis nursery products for retail sale, permitted use inside Coastal Zone, zoning districts CG, ML, MG, & MB, subject to Use Permit, Section conditions/limitations. Nurseries producing commercial cannabis nursery products for bulk wholesale sale/to supply retail nursery outlets permitted use in AE zoning district/ RA zoning district on parcels 5+ acres, subject to Special Permit, section conditions/limitations.

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Nurseries – Page 2Sonoma County Nursery DefinitionNursery – Cannabis: establishment produces only clones, immature plants, seeds – wholesale distribution to permitted cultivators/dispensaries – specifically for medical cannabis planting, propagation.Nursery – Retail: establishment – propagation of trees, shrubs, horticultural/ornamental plants grown under cover/outdoors for public sale. Includes commercial scale greenhouses, establishments for plant material, lawn and garden supplies, related items sale. Retail nursery not include cannabis nurseries, classified separately.Nursery – Wholesale: establishment – commercial production - trees, plants, seeds, stock, other vegetation grown on site outdoors in ground/in containers for wholesale distribution to other businesses. Wholesale nursery not include cannabis nurseries, classified separately. Wholesale nursery may include greenhouses up to 2,500 sq. ft. in size.Nursery – Wholesale Greenhouse: establishment – commercial production - trees, plants, seeds, stock, other vegetation grown within commercial greenhouse for wholesale distribution to other businesses. Wholesale greenhouse nursery not include cannabis nurseries, classified separately.

Tentative List of Current Plant Nursery 1. Lee's Florist & Nursery Address: 1420 University Ave, Berkeley CA 94702 District: 42. Berkeley Horticultural Nursery Address: 1310 McGee Ave, Berkeley, CA 94703 District: 5 3. East Bay Nursery Address:2332 San Pablo Ave, Berkeley, CA 94702 District: 2 4. Oaktown Native Plant Nursery Address:702 Channing Way, Berkeley, CA 94710 District: 2 (Note: within 300 ft of Dreamland For Kids Playground, but legal) 5. Cactus Jungle Nursery and Garden Address: 1509 Fourth St, Berkeley, CA 94710 District: 1 (Note: within 300 ft of Golden Gate Kids Preschool) 6. Westbrae Nursery Address: 1272 Gilman St, Berkeley, CA 94706 District: 1 (Note: within 700 ft of Redwood Garden Preschool) 7. Spiral Gardens Address: 2850 Sacramento St, Berkeley, CA 94702 District: 2 (Note: within 900 ft of San Pablo Park) 8. FLORA ARTE Address: 2070 M.L.K. Jr Way, Berkeley, CA 94704 District: 4 (Note: within 900 ft of Berkeley High) 9. Native Here Nursery Address: 101 Golf Course Dr Tilden Regional Park, Berkeley, CA 94708, Berkeley, CA 94708 District: 6? 10. Oaktown Native Plant Nursery Address: 2410 Roosevelt Ave, Berkeley, CA 94703 District: 4 (Note: within 900 ft of Walden Center and School) 11. Succulent & Cactus Address: 1735 Delaware St, Berkeley, CA 94703 District: 1 (Note: Within 500ft of Ohlone Doggy Park) 12. The Gardener Address: 1836 Fourth St, Berkeley, CA 94710 District: 1 (Note: Within 300 ft of Golestan Center For Language Immersion and Cultural Education)

PREVIOUS DISCUSSION

Subject: Berkeley City Council should allow ‘nursery only’ dispensariesFrom: Berkeleyside.com op-ed(http://www.berkeleyside.com/2017/01/30/op-ed-berkeley-city-council-allow-nursery-dispensaries/)By: Rick Kelley, Matthew Witemyre, & Natalie Koski-KarellDate: Jan. 30, 2017, 2 p.m.

Cannabis nurseries can provide an alternative to industrial crop production.

After years of excellent work by Medical Cannabis Commission, Berkeley City Council scheduled to consider 2 new chapters for municipal code on January 31. Berkeley residents who favor sound, sensible eitable cannabis policy should pay attention.

Chapters under discussion - allowing medical cannabis cultivation facilities in Manufacturing (M) District (Chapter 12.25), governing medical cannabis operations definitions (Chapter 12.23).

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Nurseries – Page 3 Important because decisions before council structure industry locally, helping to determine the types of businesses and cooperatives that will thrive in the coming years.

Our organization, Solidarity Nursery Cooperative, hopes to open storefront cannabis nursery, seed library in Berkeley. Incorporated worker cooperative ; plans signing recognition agreement w/ International Longshore & Warehouse Union (ILWU).

Nursery very low-impact business. Would adhere to responsible security, zoning requirements. Our storefront will also be community resource center, provide classes on growing from seed, hand pollination and seed saving, permaculture techniques, organic pest control, cultivation processes.

We encourage sustainability, environmentalism, better alternatives industrial crop production, monocropping in cannabis cultivation. Under our model, also sell companion plants - dill, chives, chrysanthemums for organic pest control, cover crops like comfrey, clover, & small selection of basic gardening supplies.

We will foster self-sufficiency, emphasize gardening's proven health benefits. Community members will buy starter plants, discuss their experiences, become more engaged in the political process.

Will create seed library, give away heirloom, landrace seeds free to members - maintain genetic diversity in public domain, to lower home cultivation barrier.

All aims & endeavors fitting squarely into Berkeley’s historic role, forefront of green initiatives, ones that should be supported in the emerging regulatory environment. We asked City Council to definition for “Nursery-Only Dispensary” to Chapter 12.23.020.K as “a Dispensary, the primary activity,, to produce clones, immature plants, seeds, other agricultural products specifically for planting, propagation, cultivation of medical cannabis,” to direct staff to create application process.

CA cannabis industry changing dramatically, moving to fully-regulated market. Many destructive practices in traditional corporate agriculture starting to take hold. We hope City of Berkeley will continue to support community-focused social-purpose cannabis organizations, and empower home cultivators to grow medicine at home by adding “Nursery-Only Dispensaries” to Chapter 12.23. Rick Kelley, Matthew Witemyre, Natalie Koski-Karell are the owner-operators of the Solidarity Nursery Cooperative

Subject: Ordinance to Clarify City Policy on Cannabis NurseriesTo: Honorable Mayor and Members of the City Council From: Councilmember Kriss Worthington - CONSENT CALENDAR July 25, 2017 RECOMMENDATION: Planning Commission & Cannabis Commission create ordinance to clarify city policy on cannabis/existing nurseries. BACKGROUND: Considering state policies on cannabis regulation, imperative Berkeley follow such trends & clarify city policy on cannabis & existing nurseries. CA passed proposition 64 11-8-16, legalized cannabis use by adults 21 years/older. Chapter 1 of Prop.: cannabis nursery: “licensee that produces only clones, immature plants, seeds, & other agricultural products used specifically for planting, propagation, & cultivation of marijuana,” Type 4—Cultivation; Nursery license- specifically for cannabis nurseries. Proposition 64 adopted zoning requirement for cannabis business. “No licensee – within 600-foot radius of school providing instruction in kindergarten, any grades 1 through 12, day care center, or youth center existing when license issued, unless a licensing authority/local jurisdiction specifies different radius.” Chap. 20/Prop.: any CA city – right to adopt, enforce local ordinances to regulate adult use cannabis businesses. Urgent Planning Commission work with Cannabis Commission to adopt ordinances & regulations for adult use cannabis in order to emulate state progress on cannabis policy. ENVIRONMENTAL SUSTAINABILITY Consistent with Berkeley’s Environmental Sustainability Goals and no negative impact.

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Nurseries – Page 4Subject: Retail Cannabis Nurseries in Berkeley From: [email protected] Date: November 12, 2017

S➢ tate cannabis regulatory structure permits vertical integration, with exception of few categories (i.e. testing), subject to local regulations, businesses may conduct business under at least 2 license categories simultaneously.

➢Cannabis nurseries classified as cultivation license (type 4) - state law. Type 4 license holders restricted to wholesale transactions w/ commercially licensed growers.

For ➢ retail nursery transactions, nursery requires limited retail license - only sell immature, non-flowering plants, seeds, clones, etc. For state licensing - type 10A dispensary license. 10A dispensary license holders legally permitted to hold nursery licenses.

➢Berkeley location, cultural climate, ideal city to permit retail nursery sales. Berkeleyside 1/17 op-ed ➢Small, non-commercial cultivators benefit greatly from dedicated business, focused on education, to acquire

immature plants/seeds. ➢Retail cannabis nurseries - can sell companion plants, fertilizer, tools, provide context appropriate for plant

cultivation, vs. retail dispensary = cannabis consumable products sales. ➢Existing nurseries in locations permissible for cannabis business in Berkeley optimal locations for these

businesses.

RECOMMENDATIONS/CURRENT CHOICES

Subject: Nursery Regulation/Ordinance/LicensingFrom: Berkeley Cannabis Commission Date: July 13, 2017Unfortunately, our commission and cultivation subcommittee have neglected to review possible nursery regulations ordinance and licensing

Currently, council member Kriss Worthington has asked (see above) for our commission input on nurseries, because he has spoken with at least 2 nursery operators hoping to be licensed by the city.

Included above: CDFA proposed Nursery Regulations, June 2017 & additional nursery regulation in other jurisdictions.

Nursery Regulation Ordinance Licensing – Berkeley Considerations -Cultivation or cannabis business; presently nurseries not included in cultivation regulation ordinance; in place existing permitting for cannabis businesses (planning staff input?) -Zoning locations; cultivation businesses restricted to M-Zone; lower impact of nurseries; possible comparison to testing labs; perhaps even allowed in residential -Wholesale or retail; some nurseries sell only to dispensaries; other nurseries may provide clones, seeds to individuals, private cooperatives; perhaps 2 tier licensing -CDFA nursery considerations; worthy of commission review; provide overview of operations -Public comment, commission/staff discussion; present different aspects for nursery approval -Council member Worthington; willingness for fast-tracking and agendacizing; an incentive and inspiration compared to years of continuing cultivation regulation ordinance licensing delays -Further input; from research and contacted/questioned interested/knowledgeable parties, possibly a late item addition to commission Nov. '17 packet -Staff input; possible pre-meeting research, also as late item; city attorney input

COMMISSION SUMMARY1. Ordinance licensing zones-2. Wholesale / retail- definition, differences3. No permit limit 4. Selection first come first serve5. ZC or AUP

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From: Rick Kelley < [email protected]>Sent: Monday, November 13, 2017 11:32 AMTo: Charles Pappas; David Lampach ([email protected]); Greene,

ElizabethSubject: Solidarity Nursery Cooperative as Existing NurseryAttachments: Memo_ Existing Nurseries, Solidarity Nursery Cooperative.pdf; business

license.pdf; certified producer cert.pdf; Fee Exempt License Copy.pdf; LetterFromOaklandFIGMENT.pdf; merritt letter.pdf; really, really free market letter.pdf; Signatures Collected at CBCB.pdf; zoning certificate.pdf

Dear Berkeley Medical Cannabis Commission,

On behalf of Solidarity Nursery Cooperative, I'm writing in regard to recent developments with the Berkeley cannabis nursery ordinance.

We're very appreciative of all your hard work on this issue, and contend that our organization should be considered for inclusion on the list of existing nurseries, which was sent to MCC and the Planning Commission in July.

Attached to this email, please find a number of relevant pieces of documentation establishing our credentials. We'd greatly appreciate it if MCC could examine these supporting documents and pass a recommendation to the Council and Planning Commission.

Thank you in advance for your consideration, and please contact us at your earliest convenience with any questions or comments.

Sincerely,

Rick Kelley1507 Addison St.Berkeley, CA 94703

Page 1 of 1

11/13/2017file:///G:/LANDUSE/Boards%20and%20Commissions/MCC/Packet/2017/2017-11-16/La...

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Memorandum To: Berkeley City Council

From: Solidarity Nursery Cooperative, Inc.

Date: November 13, 2017

Re: Cannabis Nursery Permitting

We have been following the Council's work on medical and adult-use cannabis permitting closely, and we appreciate the good work of the Council, City Staff, and the Medical Cannabis Commission.

Further, we thank the Council for unanimously passing, as a consent item, the ordinance to clarify Berkeley policy on existing nurseries for cannabis production from the July Council meeting, and sending it to the Planning Commission and MCC. We are excited about this progress and believe our Cooperative should be considered an “existing nursery” for purposes of cannabis nursery permitting. Solidarity Nursery Cooperative incorporated as a worker cooperative nursery last year, with a mission to help create a just and legal cannabis industry with shared equity. We are committed to preserving the genetic and cultural heritage of those who have devoted their lives to cannabis freedom, and to good jobs for all. We support sustainable agriculture, family and urban farmers, the practices of seed saving and sharing, and a future where the economic benefits of cannabis legalization are shared with all workers and communities, instead of further enriching private equity and the privileged few. While waiting for the ability to apply for a cannabis nursery permit in Berkeley, our cooperative has provided free edible and landscape plants to FIGMENT, a free and inclusive participatory art event; the Merritt College Landscape Horticulture Spring and Fall Plant Sales; and the Berkeley Really, Really Free Market, a no-barter no-sales free marketplace. We even started up a Little Free Nursery (similar to the ubiquitous Little Free Libraries found throughout Berkeley) and have given away hundreds of plants to West Berkeley residents near San Pablo park. All told, we’ve given away over a thousand (non-cannabis) plants and seed packets this year. Before giving away any plants, we reached out to the Alameda Department of Agriculture to inquire if we would need a nursery license for these activities. They said that as long as the plants were not crossing county lines and we received no remuneration, we would not require a nursery license. Since we learned of the item on existing nurseries, Solidarity Nursery Co-op applied for and obtained a nursery license from the state of California, certified producer certification from Alameda County, and a business license from the City of Berkeley. Although we have not been engaging in commerce, we have been operating as a nursery cooperative to produce plants in Berkeley. We ask the Council to please add us to the preliminary list of existing

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nurseries for purposes of cannabis permitting. Our supporting documentation is attached below. Thank you for your consideration.

Sincerely,

Natalie Koski-Karell, Matthew Witemyre & Rick Kelley Solidarity Nursery Cooperative

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August 21, 2017 Rick Abruzzo Oakland FIGMENT [email protected] To Whom It May Concern, FIGMENT is a free, inclusive, participatory arts event held in multiple cities and drawing tens of thousands of participants each year. FIGMENT's mission is to offer free, family-friendly and participatory art to entire communities. At the Oakland FIGMENT, held on June 10th 2017 in Mosswood Park, the event was greatly pleased to host community member, Solidary Seed Initiative and Cooperative. The SSI commitment to our principles of non-commodification was exemplified by their donation of dozens of seedlings to families, kids and attendees from the surrounding community. Their generosity, outreach and education of the value of horticulture is a gift to Alameda County and we look forward to their continued engagement, collaboration and success in the future. Sincerely, Rick Abruzzo Oakland FIGMENT Co-producer

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To: Berkeley City Council Dear Berkeley City Council, I am writing this letter to certify that Matthew Witemyre of Solidarity Seeds Initiative contributed to my event in Berkeley. I am the founder of the Berkeley Really, Really Free Market. My event aims to engage the community in the sharing economy. Participants bring items they don’t want and shop (for free) among what others bring. People get their needs met without having to make a new purchase and things stay out of the landfill. At my last event on August 15, 2017 the Solidarity Seeds Initiative donated 50 food plants and approximately 25 landscape plants. The donation was a big hit at the event among participants. I hope to work with Matthew in the future. Sincerely, Karoline Galea Founder Berkeley Really Really Free Market

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MEDIA ADVISORY

FOR IMMEDIATE RELEASE: November 15, 2017

Contact: Alex Traverso (916) 574-7546

LICENSING AUTHORITIES TO HOLD MEDIA AVAILABILITY UPON RELEASING CANNABIS REGULATIONS

SACRAMENTO – California’s three state cannabis licensing authorities today announced plans

to release regulations for commercial medicinal and adult-use cannabis at tomorrow’s inaugural

meeting of the Cannabis Advisory Committee.

The regulations and their summaries will be available on the Bureau of Cannabis Control’s

website at http://www.bcc.ca.gov/ during this time. Other documents and materials related to the

regulations can also be accessed through the website.

The Bureau of Cannabis Control, Department of Public Health and Department of Food and

Agriculture can be reached for comment through a press conference call at noon.

Members of the media will be invited to participate in the conference call at 888-810-6750. The participant passcode is 4178521. After a brief overview of the regulatory process from Bureau Chief Lori Ajax, media members will be placed in a call queue for an opportunity to speak with the three licensing authorities regarding the regulations. Upon the conclusion of the conference call at 12:30, television media outlets will be welcomed into State Capitol Room 1190 for a 30-minute media availability. The advisory committee meeting will resume at approximately 1 p.m. with an expanded overview of the regulatory process. The Meeting Notice and Agenda for the Cannabis Advisory Committee Meeting can be found

here: http://bcc.ca.gov/about_us/committee.

For additional information about the advisory committee meeting, or to subscribe to email alerts to hear about updates as they become available, please visit our website - http://www.bcc.ca.gov/. For information on all three licensing authorities, please visit the state’s cannabis web portal – cannabis.ca.gov. Follow the Bureau on Facebook, Twitter and Instagram for daily news and updates.

# # #

BUREAU OF CANNABIS CONTROL P.O. Box 138200, Sacramento, CA 95813-8200 P (916) 574-8170 F (916) 574-8676 | www.bcc.ca.gov

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From: Bureau of Cannabis Control <[email protected]> on behalf of Bureau of Cannabis Control <[email protected]>

Sent: Thursday, November 16, 2017 12:01 PMTo: [email protected]: LICENSING AUTHORITIES RELEASE EMERGENCY MEDICINAL AND ADULT-USE

CANNABIS REGULATIONS

SACRAMENTO – California’s three state cannabis licensing authorities announced today that proposed emergency licensing regulations for commercial medicinal and adult‐use cannabis have been posted online and are available to the public for review. 

The Department of Consumer Affairs’ Bureau of Cannabis Control, Department of Public Health’s Manufactured Cannabis Safety Branch, and Department of Food and Agriculture’s CalCannabis Cultivation Licensing Division each developed the new regulations to reflect the law defined in California’s Medicinal and Adult‐Use Cannabis Regulation and Safety Act (MAUCRSA). 

The regulations and their summaries can be viewed by clicking the following links: 

Bureau of Cannabis Control: www.bcc.ca.gov/law_regs/bcc_prop_text_reg.pdf www.bcc.ca.gov/law_regs/bcc_fact_sheet.pdf 

CA Department of Food and Agriculture: www.bcc.ca.gov/law_regs/cdfa_prop_text_emerg_reg.pdf www.bcc.ca.gov/law_regs/cdfa_fact_sheet.pdf 

CA Department of Public Health: http://www.bcc.ca.gov/law_regs/cdph_prop_text_emerg_reg.pdf http://www.bcc.ca.gov/law_regs/cdph_sum_emerg_reg.pdf 

On June 27, 2017, the Governor signed MAUCRSA, which creates one regulatory system for both medicinal and adult‐use cannabis. Prior to that law’s passage, state licensing authorities had released proposed regulations to govern the implementation of the Medical Cannabis Regulation and Safety Act. The public hearings and comments from a broad cross section of stakeholders that were informing that regulatory process have also been taken into consideration in the drafting of these proposed emergency regulations. 

The licensing authorities expect the emergency regulations to be effective in December 2017. The implementation date for the issuance of the state commercial cannabis licenses remains the same: January 1, 2018. However, California will only be able to license those businesses that are in compliance will all local laws.  

In addition, the Business, Consumer Services and Housing Agency will hold a workshop with state‐chartered banks and credit unions next month to discuss regulatory and compliance issues, as well as potential approaches to banking cannabis‐related businesses. 

For additional information about the proposed regulations, or to subscribe to email alerts to hear about updates as they become available, please visit our website ‐ http://www.bcc.ca.gov/. 

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For information on all three licensing authorities, please visit the state’s cannabis web portal – cannabis.ca.gov. Follow the Bureau on Facebook, Twitter and Instagram for daily news and updates. 

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ To unsubscribe from this email list please click on the link below and follow the instructions on the web page. 

https://www.dca.ca.gov/webapps/bcc/subscribe.php 

You may reply to this email by contacting [email protected] 

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Dear Medical Cannabis Commissioners: Consistent with recommendation 9 in your letter from Oct 6, my office has prepared the below language to address the urgency issue that you have recommended to the City Council. I greatly appreciate your advocacy to help motivate the C:Jty to act expeditiously. Kriss W

To: From:

Subject:

Kriss Worthington Councilmember, City of Berkeley, District 7 2180 Milvia Street, 5th Floor, Berkeley, CA 94704 PHONE 510-981-7170, FAX 510-981-7177, EMAIL [email protected]

CONSENT CALENDAR November 28, 2017

Honorable Mayor and Members of the City Council Councilmember Kriss Worthington, Mayor Arreguin, and Councilmembers Ben Bartlett and Cheryl Davila

Adopt an Ordinance to Amend BMC 12.27 to Allow Existing Berkeley Licensed Medical Cannabis businesses into the new state adult use regulation and taxation system

RECOMMENDATION: 1) Temporary Authorization to allow existing Berkeley cannabi� businesses to apply for state

cannabis permits to expand their existing medical cannabis activities to include adult use.Temporary permission will expire once Berkeley establishes· comprehensive policies.

2) Adopt first reading of an Ordinance to amend BMC 12.27 to allow existing Berkeleylicensed medical cannabis businesses into the new state adult use regulation and taxationsystem.

BACKGROUND Officially recognized cannabis businesses with Berkeley business licenses have acted responsibly and played by the rules. They have paid their taxes and paid their dues. The new state of California law establishes long overdue statewide standards. We want to build on Berkeley's established cannabis infrastructure to allow local businesses to flourish and not be left behind by the new state landscape.

FINANCIAL IMPLICATIONS: Likely increased cannabis tax revenue

CONTACT PERSON: Councilmember Kriss Worthington

Attachment: Proposed Ordinance

510-981-7170

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