City Hall Thursday, February Milvia Street 2:00 PM Redwood Room (Sixth Floor) AGENDA

Transcription

1 MEETING OF THE City Hall Thursday, February 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. III. IV. Public Comment Approval of Minutes A. February 1, 2018 Draft Action Minutes Planning Staff Report V. Chairperson s Report VI. VII. Subcommittee Report Discussion and Action Items A. Continuation from meeting: Review staff proposed changes to cannabis ordinance language and vote on Commission recommendation to Council. Staff report calls out changes since ; attachments with revised language are marked Revised. Attachments: Staff report a Council referral b. Matrix of existing and proposed ordinances/regulations (Revised) c. Draft new BMC chapter (General Regulations) (Revised) d. Draft new BMC Chapter (Operating Standards) (Revised) e. Draft new BMC Chapter (Cannabis Business Signs and Cannabis Product Advertising) (Revised) f. Existing BMC Chapters 12.23, and showing new locations for existing ordinance language g. Draft changes to Zoning Ordinance: new Chapter 23C.25 (Cannabis Businesses), modified use tables in C- and M-Districts and new Definition (23F.040) (Revised) h. Existing Zoning Ordinance Sections 23E , 23E showing new locations for existing ordinance language 2. Recommendations from Comprehensive Cannabis Subcommittee B. Discuss selection proposals and vote on Commission recommendation to Council. Attachments: Staff report-selection Process 2. Cannabis selection options 1 of 150

2 C. Discuss and vote on the need to have a regular meeting on March 1 st and/or to have a subcommittee meeting to continue discussion of the draft cannabis ordinance and selection proposal. VIII. IX. 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. City of Berkeley Design Review Guidelines Correspondence A. Charley Pappas - to Cannabis Commission B. Charley Pappas Draft Ordinance Review C. Charley Pappas State License Types D. Charley Pappas correspondence to Council re cultivation licensing E. Charley Pappas correspondence to Council re nursery licensing F. Charley Pappas correspondence to Council re delivery-only dispensing G. Charley Pappas State regulations re collectives H. Charley Pappas Berkeley Permit Types X. Adjournment Berkeley Cannabis Commission website: Cannabis Commission Secretary: Elizabeth Greene, 1947 Center Street, 2nd Floor, Berkeley CA Phone: , EGreene@cityofberkeley.info 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: 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 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, 3 rd 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 (V) or (TDD) at least three business days before the meeting date. Please refrain from wearing scented products to this meeting. 2 of 150

3 1 of 4 Draft Minutes From 2/1/18 MEETING OF THE City Hall Thursday, February 1, Milvia Street 2:00 PM Redwood Room (Sixth Floor) I. Call to Order 2:09 pm DRAFT ACTION MINUTES A. Roll Call and Ex Parte Communication Disclosures Commissioners present: Brewster, Cable, Ferguson-Riffe, Jones, Pappas, Carlisle, Cooper, Lampach, Rice. Absent: None. Staff Present: Secretary Elizabeth Greene, Savith Iyengar, Sydney Stephenson, Manual Ramirez. Ex Parte Communications: None. B. Changes to Order of Agenda Motion to change Agenda to Items C(discussion of subcommittee), B, C (vote), A, D (Pappas), motion not seconded. Motion to change Agenda D, C, A, B, (Lampach), motion not seconded. Motion/second to change Agenda D, A, B, C, (Cooper/Brewster). The motion carried (Ayes: Brewster, Ferguson-Riffe, Jones, Carlisle, Pappas, Lampach, Rice, Cooper. Noes: None. Abstain: Cable. Absent: None.) II. III. IV. Public Comment: Four public comments. The comments were concerned about the cannabis regulations and whether they address the issue of childcare workers using cannabis during their breaks. The comments also emphasized the importance of equity not only for the business of retail, cultivation, distribution, and manufacturing, but also equity in education, job training, and public health. In addition, the comments expressed concern that the legalization of cannabis in California is violating federal law and that Berkeley is controlled by white supremacists, and the Commission should assess a system to create a revenue stream to build housing. Approval of January 18, 2018 Minutes Motion/second to approve the January 18, 2018 (Pappas/Jones). The motion carried (Ayes: Brewster, Ferguson-Riffe, Jones, Carlisle, Pappas, Cable, Cooper. Noes: None. Abstain: Lampach, Rice. Absent: None.) Planning Staff Report 3 of 150

4 2 of 4 Draft Minutes From 2/1/18 Secretary Greene made the following announcements: All Commissioners are present at this meeting, thus the quorum is 5. Council took public comment on cannabis taxes on January 30 th, however, were not able to discuss and thus will be discussing again on February 13 th. The Planning Commission will discuss cannabis regulations related the Zoning Ordinance at the February 7 th meeting, holding a Public Hearing on February 21 st. On February 15 th, the Chambers of Commerce is having a meeting on the proposed ordinance to answer questions from their members. On January 23 rd the Council voted on a process for the location change of Apothecarium. There are eight late items in this packet. V. Chairperson s Report Chair Pappas made announcements from the Late Communication #6 regarding cannabis news. VI. VII. Subcommittee Report There was no subcommittee meeting. Discussion and Action Items D. Election of chairperson No public comment. Motion/second to elect Commissioner Jones as Chair of the Cannabis Commission (Lampach/Brewster). The motion carried (Ayes: Brewster, Ferguson-Riffe, Jones, Carlisle, Pappas, Cable, Lampach, Rice, Cooper. Noes: None. Abstain: None. Absent: None) Motion/second to elect Commissioner Cooper as Vice Chair of the Cannabis Commission (Rice/Cable). The motion carried (Ayes: Brewster, Ferguson- Riffe, Jones, Carlisle, Pappas, Cable, Lampach, Rice, Cooper. Noes: None. Abstain: None. Absent: None) A. Review staff proposed changes to cannabis ordinance language and vote on Commission recommendation to Council. Chair Jones recommended to begin the discussion by going through the matrix attached in the packet. Public Comment: Eight public comments. The comments stated that there should be 600 buffer from liquor stores as well and that there should be no delivery of cannabis outside of California. Deliveries should be allowed at businesses and hotels, not only residences. The comments also were concerned about limiting cultivation to only the M District, there are good locations in the MM District, and there will not be enough incentive for businesses to come into Berkeley if we only allow cultivation in the M District. There are large enough sites in the MM District of cannabis cultivation. Another comment expressed concern about only allowing retailers to buy from licensed cultivators. Other comments were concerned that there are not proposed regulations about change of ownership, only regulations for change of location. 4 of 150

5 3 of 4 Draft Minutes From 2/1/18 Another comment encouraged to add language to grandfather existing dispensaries with temporary adult use licenses as adult use retailers in Section 23C G. Other comments mentioned that there are a lot of redundancies in Chapters 21 and 22 with the State regulations. Commissioner Rice responded to the public comments about location of cultivation. She asked for the public to submit written testimonies encouraging the expansion of cultivation outside of the M District. Commissioner Pappas voiced his concern that there needs to be selection process first for cultivators in the M District so that Council can see there is a need for expansion outside of the M District. Retail: Medicinal Use The Commission first discussed the topics within the Retail: Medicinal Use section of the attached matrix. Commissioner Cable stated that the 600 buffer between retailers should be reduced. Ferguson-Riffe stated that the 600 buffer should stay and is important. Commission Cooper mentioned that they should leave as is and deal with it when it becomes an issue later. Motion/second for Commissioner Brewster to different buffers for Retail business that sell non-smokeable products. (Jones/Cable). The motion carried (Ayes: Brewster, Ferguson-Riffe, Jones, Carlisle, Pappas, Cable, Lampach, Rice, Cooper. Noes: None. Abstain: None. Absent: None) The Commission discussed the issue of quotas for retailers. The Commission raised the question where there needs to be a definition of non-psychoactive/psychotropic products and if there should be a different quota limit for non-psychoactive use. Motion/second to recommend no quotas for A and M retailers (Ferguson- Riffe/Carlisle). The motion carried (Ayes: Brewster, Ferguson-Riffe, Jones, Carlisle, Pappas, Cable, Lampach, Rice. Noes: Cooper. Abstain: None. Absent: None) Motion/second to recommend no quotas for Delivery-only retailers (Pappas/Brewster). The motion carried (Ayes: Brewster, Ferguson-Riffe, Jones, Carlisle, Pappas, Cable, Lampach, Rice. Noes: Cooper. Abstain: None. Absent: None) Motion/second to recommend approving the recommended security regulations for medicinal retailers (Jones/Carlisle). The motion carried (Ayes: Brewster, Ferguson-Riffe, Jones, Carlisle, Pappas, Cable, Lampach, Rice, Cooper. Noes: None. Abstain: None. Absent: None) The Commission agreed on the recommended on-site consumption language, and agreed with the recommended with the delivery regulations for medicinal use. Retail: Adult Use The Commission agreed with all staff recommendations for Adult-Use regulations topics from the matrix except for the quota, see motion above. Retail: Delivery-only The Commission agreed with the location for delivery-only retailers, see motion above for quota recommendation. 5 of 150

6 4 of 4 Draft Minutes From 2/1/18 Motion/second to recommend changing the buffer for delivery-only retailers to 300 from schools and no buffer from other retailers (Lampach/Cable). The motion carried (Ayes: Brewster, Ferguson-Riffe, Jones, Carlisle, Pappas, Cable, Lampach, Rice, Cooper. Noes: None. Abstain: None. Absent: None) Commissioner Jones recommended pushing the matrix topics of Cultivation, Manufacturing, and Other to the subcommittee discussion. B. Vote on date for special meeting to continue discussion of draft cannabis ordinance and selection process and possible changes to future meetings. Public Comment: None. Motion/second to set the special Cannabis Commission meeting on February 22nd (Lampach/Jones). The motion carried (Ayes: Brewster, Ferguson-Riffe, Jones, Carlisle, Pappas, Cable, Lampach, Rice, Cooper. Noes: None. Abstain: None. Absent: None) C. Discuss and possibly vote on forming a subcommittee to provide recommendations to the Commission on the draft cannabis ordinance and selection process. Public Comment: None. Motion/second to form a subcommittee to discuss cultivation, manufacturing, general for all businesses, other, and microbusinesses, and all subtopics as based on the matrix in the packet (Jones/Pappas). The motion carried (Ayes: Brewster, Ferguson-Riffe, Jones, Carlisle, Pappas, Cable, Lampach, Rice, Cooper. Noes: None. Abstain: None. Absent: None) Motion/second to hold the meeting at 3:00pm to 5pm on February 8 th. (Brewster/Jones). The motion carried (Ayes: Brewster, Ferguson-Riffe, Jones, Carlisle, Pappas, Cable, Lampach, Rice, Cooper. Noes: None. Abstain: None. Absent: None) The subcommittee will be made up Commissioners Brewster, Pappas, Carlisle, Jones. X. Adjournment Adjourned at 4:07. Eight late items were distributed at the meeting. Commissioners in attendance: 9 of 9 (Cooper and Carlisle left at 4:00pm) Members of the public in attendance: Approximately 37 Public comments: 12 Length of meeting: 1 hour and 58 minutes. APPROVED: Elizabeth Greene Medical Cannabis Commission Secretary 6 of 150

7 TO: FROM: Page 1 of 2 Cannabis Commission Elizabeth Greene, Secretary ATTACHMENT VII.A.1 SUBJECT: Comprehensive Cannabis: Ordinance revisions DATE: Staff revised the draft ordinances and matrix to correct mistakes, address new information related to State regulations and reflect modifications driven by the proposed selection process. Some of these corrections are minor, while others will have a more significant effect. The changes are outlined below. In the attachments, the changes are shown in a track change format and/or highlighted. Corrections Matrix (Attachment b): Selection process for cultivators was changed to show it would only apply to large cultivators; Delivery-only, Signage and Residential collective information was changed to match new or revised ordinance language. Chapter (Attachment c): References to deleted chapters were corrected. Zoning Ordinance (Attachment g): Section 23C was corrected to read that cultivation is only permitted in the M District. Clarifications/New information Chapter (Attachment d): Staff learned that the state will not allow local jurisdictions to permit unlicensed residential collectives beyond January 9, Therefore, the language in Sections and.130 has been replaced with the existing language in and.130 (modified as necessary). Section will be changed to explicitly call out that collectives will be prohibited and must cease operation after January 9, Chapter (Attachment e): The Cannabis Advertising chapter was modified to include information about specific signage for cannabis businesses. These changes were added to address concerns about exposure of minors to cannabisrelated businesses and products. The regulations include: o Retail storefront sign area will be half of that allowed for other businesses. o Delivery-only Retailers signage will be the same as other businesses in business complex (i.e. office) buildings. o Non-retail businesses will be limited to 12 square-feet of signage. Zoning Ordinance (Attachment g): Section 23C H.2 has been changed to reflect that delivery-only businesses are not permitted in ground-floor units with street frontage in C-prefixed districts. Selection process options Changes to quotas are included in the matrix and Chapter See the Selection Process memo attached for information about these changes. 7 of 150

8 Page 2 of 2 ATTACHMENT VII.A.1 Future changes A correction may be needed to reflect new State laws related to smoking and vaping. This change would impact on-site consumption at Retailers with patient and customer visits. Staff will have more information on this at the meeting. Attachments: a Council referral b. Matrix of existing and proposed ordinances/regulations (REVISED) c. Draft BMC Chapter 12.21(REVISED) d. Draft BMC Chapter (REVISED) e. Draft BMC Chapter (REVISED) f. Existing BMC Chapters 12.23, and g. Draft Zoning ordinance changes (REVISED) h. Existing Zoning Ordinance chapters related to cannabis 8 of 150

9 Page 1 of 2 ATTACHMENT VII.A.1.a Page 1 of 53 Office of the Mayor To: Honorable Members of the City Council ACTION CALENDAR July 25, 2017 From: Subject: Mayor Jesse Arreguín Commercial Cannabis Regulations and Licensing RECOMMENDATION: Refer to the City Manager and Cannabis Commission the proposed local ordinances to establish a licensing process for Commercial Cannabis operations, as permitted under Proposition 64, Adult Use of Marijuana Act. The Council requests that the City Manager and Cannabis Commission report to the City Council on its recommendations on regulations and licensing for commercial cannabis businesses before the end of BACKGROUND: Existing Berkeley law contains no provisions for any sort of non-medical cannabis business structure. Proposition 64, the Adult Use of Marijuana Act, which passed statewide with 57% of the vote, and in Berkeley with 83.5%, permits local governments to establishing licensing in advance of state regulations for recreational cannabis. The proposed ordinances, based in large part on current Berkeley medical rules, would: Provide a structure for the licensure and regulation of Commercial Cannabis Organizations consistent with California Health and Safety Code section (Compassionate Use Act), California Health and Safety Code sections (Medical Marijuana Program), the Medical Cannabis Regulation and Safety Act, and the Adult Use of Marijuana Act (Proposition 64, or AUMA) to protect public health, safety, and welfare. Empower the City Manager to determine if the Commercial Cannabis Organization is in compliance with Berkeley rules. Define all terms as set forth in the Control, Regulate and Tax Adult Use of Marijuana Act ( AUMA ) as may be supplemented by rules or regulations issued by the Bureau of Marijuana Control within the Department of Consumer Affairs, the Department of Food and Agriculture or the Department of Health. Not reduce the rights of qualified patients and primary caregivers, or individuals over 21 as authorized by AUMA, to access and personal cultivation. Require City Council establish procedures for the issuance of a local license in those types similar to the types permitted under State law. Permit, if permitted by state law, a dispensary to operate both a Medical and Nonmedical Commercial Cannabis Organization at a single location. Martin Luther King Jr. Civic Center Building 2180 Milvia Street, 5 th Floor, Berkeley, CA Tel: (510) Fax: (510) TDD: (510) mayor@cityofberkeley.info Web: 9 of 150

10 Page 2 of 2 ATTACHMENT VII.A.1.a Page 2 of 53 Commercial Cannabis Regulations and Licensing ACTION CALENDAR July 25, 2017 Require that a Principal of any Commercial Dispensary may not be a Principal for any other Dispensary in Berkeley except that any Principal may be a Principal for any Dispensary that is licensed to operate both a Medical and Nonmedical Commercial Cannabis Organization at a single location. Permit medical dispensaries authorized as of January 1, 2017 and in substantial compliance with Chapters and and Title 23 as reasonably determined by the City Manager to qualify for a Commercial Cannabis Dispensary license. Prohibit the City from issuing new dispensary licenses until January 1, 2020, to ascertain demand. Require track and trace of cannabis by batch and impose operating standards in compliance with BMC and AUMA. Require neighborhood compatibility in a manner similar to existing Berkeley requirements. Prohibit smoking on site and within 50 feet of a Dispensary but, to the extent permitted by State law, permit the ingestion, smoking or vaporizing on site if restricted to persons over 21, not visible from any other public place, and so long as alcohol and tobacco sales or consumption are not permitted on site. Require signage similar to that required for medical dispensaries. Require Product Safety and Quality Assurance measures similar to and no less stringent than as required for medical dispensaries. Permit the City Council to establish by resolution fees that shall be charged to implement the Chapter. Prohibit the City from responding to a federal law enforcement information request or providing information about a person who has applied for or received a license to engage in commercial cannabis activity pursuant to BMC, MCRSA, and AUMA. FINANCIAL IMPLICATIONS: Staff time. Taxes assessed on new commercial cannabis operations will result in additional General Fund revenues to support city services. CONTACT PERSON: Mayor Jesse Arreguín Attachments: 1. Proposed Amendments to the Berkeley Municipal Code permitting Commercial Cannabis businesses 10 of 150

11 Page 1 of 8 Topic Subtopic Existing Regs (Ord) Proposed Regs (Ord) Retail: Medicinal Location In any C-prefixed district (ZO Same (ZO 23C F) Use 23E A.1) Quota limit 6 (ZO 23E A.1) Same Quota by zoning district (ZO 23C F) Buffer 600 away from other Same (ZO 23C B) cannabis retailers and schools with K-12 students (ZO 23E A.2) Security Requirements for lighting, licensed, unarmed security guards, camera coverage, alarm system, storage of product and cash, bars on openings if no guards after hours. (BMC E) Same, with addition that any State requirements that are stricter will apply (BMC G) Retail: Adult Use (No current regs. Proposed regs same as medicinal, except as shown) On-site consumption Allowed for non-combustible products (vaping, edibles, topicals, etc.) (BMC G) Selection process MBAP (Resolution 66,711- N.S.) Change in Cannabis Commission review. location - relocation Change in AUP if legal, non-conforming location - dispensary; otherwise expansion assumed same as noncannabis businesses Changes in No regulations ownership Delivery regulations Delivery permitted per definition, but no regulations (BMC K.2) ATTACHMENT VII.A.1.b Language clarified to specifically allow noncombustible consumption at Retailers which allow customer visits. Removed language about smoking of cannabis within 50 feet of a Retailer (BMC I and G) TBD, see Selection Process section (under Other topic) No recommendation yet No recommendation yet No recommendation yet Same delivery regulations as for delivery-only dispensaries (BMC H) Location N/A All C-prefixed districts (ZO 23C G) Quota limit N/A Limit of 12, Included in Medicinal Retailer quota (ZO 23C G) 11 of 150

12 Page 2 of 8 Topic Subtopic Existing Regs (Ord) Proposed Regs (Ord) Retail: Deliveryonly ( Existing regs are those proposed by Cann Comm and Planning Comm) Location All C-prefixed districts except C-N (recommended by Planning Comm) Delivery-specific requirements Quota limit Buffer Selection process None (recommended by Cannabis Comm) Same as medicinal retail (ZO 23E A.2) No recommendation regarding discretionary review (Planning Commission) Vehicle and driver requirements, insurance, signage, deliveries only to residence or business of Member. Only applied to delivery-only dispensaries (recommended by Cannabis Commission) ATTACHMENT VII.A.1.b All C-prefixed districts (not on ground floor adjacent to street frontage) and in M- prefixed districts as an ancillary use to another cannabis business (recommended by staff) (ZO 23C H.2) 10 (recommended by staff) None (ZO 23C H.1) Same (ZO 23C B) Same selection process as other Retailers Same, but deliveries can only be to a residence. Regulations will apply to any Retailer making deliveries to patients. (BMC H) 12 of 150

13 Page 3 of 8 Topic Subtopic Existing regs (ord) Proposed regs (ord) Cultivation Location M District only (ZO Same (ZO 23C A) 23E A) Size Maximum 22,000 sf (area of cultivation and associated uses) (ZO 23E A.3) Same maximum size, but measured by canopy area (ZO 23C A.3) Quota limit Buffer Security On-site consumption 180,000 sf cap on all commercial cultivation in city. (No decision on numeric quota for businesses) (ZO 23E A.4) 600 away from schools with K-12 students (ZO 23E B) Requirements for lighting, licensed, unarmed security guards, camera coverage, alarm system, storage of product and cash, bars on openings if no guards after hours. (BMC E) Not permitted, except for employees with medical needs (BMC G.1 and 4) ATTACHMENT VII.A.1.b 180,000 sf cap still applies. Numeric limit of 6 for businesses between 10,001 sf and 22,000 sf. No numeric limit for businesses under 10,000 sf, but 180,000 cap applies (ZO 23C A.4, 5 and 6) 300 away from schools with K-12 students (ZO 23C C) Same, with addition that any State requirements that are stricter will apply (BMC G) Same, except remove BMC G.4 (BMC I and G) Selection process Yes, but no decision on type Yes for cultivators 10,000 of canopy area or greater. No selection process for smaller cultivators. Change in N/A No recommendation yet location - relocation Change in N/A No recommendation yet location - expansion Changes in N/A No recommendation yet ownership Nurseries Not mentioned Businesses applying for a State Nursery permit must obtain the specific permits required for cultivation use at the site. (BMC (definition) 13 of 150

14 ATTACHMENT VII.A.1.b Page 4 of 8 Topic Subtopic Existing regs (ord) Proposed regs (ord) Manufacturing Location Same as non-cannabis Light Same (ZO 23C ) Manufacturing (ZO 23E C) Quota limit None required (not Same (not mentioned) mentioned) Buffer None required (not mentioned) 300 away from schools with K-12 students (ZO Testing (same as Manufacturing, except as shown) R&D (same as Manufacturing, except as shown) Distributor (same as Manufacturing, except as shown) Microbusiness Security None required (not mentioned) 23C B) Same as dispensaries, cultivators and distributors for security, lighting, alarm system, storage of product and cash. No local requirement for guards and cameras. (BMC G) On-site consumption Not mentioned Remove BMC G.4 (BMC I and G) Selection process None (not mentioned) Same (not mentioned) Change in location - relocation Change in location - expansion Changes in ownership Location, changing location, expansion Location, changing location, expansion Same as non-cannabis Light Manufacturing Same as non-cannabis Light Manufacturing Same as non-cannabis Light Manufacturing Same as non-cannabis testing (23E C) Same as non-cannabis R&D (23E C) Same (not mentioned) Same (not mentioned) Same (not mentioned) Same (ZO 23C ) Same (State license type = Manufacturing) (ZO 23C ) Security N/A Same as Retailer and Cultivator (BMC G) Location, changing location expansion N/A Same as non-cannabis Wholesale Use (ZO 23C ) Not called out in ordinance as a separate use. Businesses applying for a State microbusiness permit must obtain the specific permits required for the individual uses at the site. Any use that is included at a microbusiness site must meet the same requirements (location, buffer, quota, selection, security, etc) as if the use was a sole operator. (BMC (definition)) 14 of 150

15 ATTACHMENT VII.A.1.b Page 5 of 8 Topic Subtopic Existing regs (ord) Proposed regs (ord) General for all businesses New definitions N/A Added new definitions to address new State Revised definitions Patient requirements and physician recommendations Ownership/profit status Background checks Any person associated with a medical cannabis business must be a Qualified Patient or Primary Caregiver and members of the collective (State law, BMC B and D, B, A and B, D) Must operate as a collective and not-for-profit (State law, BMC B.1, B.1) Businesses cannot be operated by or hire people with convictions for specific crimes (BMC F) regulations (BMC ) Revised definitions to address new State regulations (BMC ) Remove references to membership requirements, including BMC B and D, and D (BMC ) Removed both requirements Removed requirement defer to State. Odor control Not mentioned Odor control plan language added (BMC E) Non-diversion plan Only for Dispensaries and Cultivators (BMC Expanded to all Cannabis Businesses (BMC F) Neighborhood compatibility Security B, B) Only for Dispensaries and Cultivators (BMC F, F) Only for Dispensaries and Cultivators (BMC E, E) Expanded to all Cannabis Businesses, with no requirements for guards at Manufacturers and Testing Labs. Retailers shall provide Police and nearby residents contact information for the business. Remove hours of operations for Dispensaries. (BMC H) Expanded to all Cannabis Businesses, with no requirements for guards and bars on windows at Manufacturers and Testing Labs (BMC G) 15 of 150

16 ATTACHMENT VII.A.1.b Page 6 of 8 Topic Subtopic Existing regs (ord) Proposed regs (ord) Sale/consumption of tobacco and alcohol Not permitted at Dispensaries and Cultivators (BMC G and Not permitted at any Cannabis Business (BMC I) Consumption of cannabis by patients Accessibility Exterior signage Records/reporting requirements Ranking and Allocation Confidentiality of information Authority of City Manager G) Only for Dispensaries and Cultivators (BMC G, G) All businesses must be accessible; three original businesses not required to comply as long as at original address No language about Exterior signage. Signage discouraged for cultivators and dispensaries (BMC , ) Dispensaries and cultivators must report financial records to verify taxes, not-for-profit status and 2% to low-income distribution, and convictions (BMC , ) Council may establish a selection process for dispensaries and cultivators (BMC , ) Only for Cultivators and Dispensaries (BMC ) BMC , , Add language about consumption being prohibited in public places. Remove language about smoking prohibition within 50 of Dispensaries (BMC I, G) Same; add language that expansions of existing businesses must meet ADA requirements (BMC E) Allow for customer-serving retail at half to amount allowed per other retail requirements; delivery-only Retail subject to Business complex sign standards; limit otherto directional signs for non-customer businesses to 12 square feet (BMC J, F20.40) Expanded to all cannabis businesses. Removed reference to not-for-profit status, and reporting of convictions. (BMC ) Expanded to all Retailers and Major Cultivators. Minor changes to language. (BMC ) Same, but remove language regarding Medical membership records (BMC ) Added subsection to allow City Manager to require businesses to obtain operating permits from Fire, Toxics and other divisions as 16 of 150

17 ATTACHMENT VII.A.1.b Page 7 of 8 Topic Subtopic Existing regs (ord) Proposed regs (ord) necessary to ensure public safety. (BMC , ) Abatement of BMC , Same (BMC ) violations Fees BMC , Same (BMC Severability BMC , , ) Same (BMC , ) Other Use tables N/A Cannabis uses shown in use tables (Non-Residential District Uses Tables in the ZO) Growing in backyards Patients can grow up to 10 plants in backyard more if on rooftop or balcony not visible from other properties Not mentioned, allowed per State law Billboards Not mentioned Prohibited Lounges Not mentioned Staff recommends considering the use a Retail (storefront) use, which would need a Retailer license (BMC G) Temporary events Not mentioned Prohibited (BMC ) Residential collectives Allowed (BMC ) Taxes Medical = 2.5% Non-medical = 10% Selection Process (equity, community benefit requirements, etc.) Prohibited after per State. Can continue until that time under existing residential collective regulationsstaff recommends to continue allowing Residential collectives but with additional regulations per the State (BMC ) No recommendation yet No recommendation yet 17 of 150

18 Page 8 of 8 Topic Subtopic Existing regs (ord) Proposed regs (ord) Not-for-profit All dispensaries and cultivators must operate on a not for profit basis. ( B.1 and B.1) Operating Permit The City Manager/Council may authorize regs to administer Chapter ( and ) ATTACHMENT VII.A.1.b Only collectives must operate on a not-for-profit basis. ( D) Operating permits for all cannabis businesses may be required by the City Manager ( C and C) 18 of 150

19 Chapter (formerly 12.23) CANNABIS BUSINESSES: GENERAL REGULATIONS Sections: Purpose and Applicability Definitions Information Requirements Operating Standards Records Operating Procedure and Criteria Confidentiality of Information Authority of City Manager Abatement of Violations Fees Severability 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 Cannabis Businesses and to implement the provisions contained in the Medicinal and Adult-Use of Cannabis Regulation and Safety Act, codified in Division 10 of the Business and Professions Code, Section 1602 and 1617 of the Fish and Game Code, Sections 37104, 54036, and of the Food and Agriculture Code, Division 10 of the Health and Safety Code, Division 2 of the Revenue and Taxation Code, Sections and of the Vehicle Code, and Sections 1831, 1847, and of the Water Code ( MAUCRSA ), as amended from time to time Definitions Page 1 of 12 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. Adult Use Cannabis means Cannabis and Cannabis Products intended for consumption by adults 21 and over, and that is not Medicinal Cannabis. ATTACHMENT VII.A.1.c C. Adulterant means any poisonous or deleterious substance that may render Cannabis or Cannabis Products impure or injurious to health, as determined by the City s Environmental Health or Public Health Divisions. 19 of 150

20 ATTACHMENT VII.A.1.c Page 2 of 12 D. Adulterated means any Cannabis or Cannabis Product with Contaminates exceeding any testing thresholds and/or containing any Adulterant. E. "Batch" shall have the same meaning as set forth in MAUCRSA, as amended from time to time, F. "Cannabis" shall have the same meaning as set forth in Section of the Business and Professions Code, as amended from time to time, and includes both adult-use and medicinal cannabis. G. Cannabis Business is a business possessing a State license as specified in Section of the Business and Professions Code, as amended from time to time, and includes Cannabis Businesses with an A designation ( ACB ) and Cannabis Businesses with an M designation ( MCB ). H. "Cannabis By-Products" means delta-8-thc and cannabinol when present in amounts greater than 0.2% of a product s dry weight. I. "Cannabis Compound(s)" means any or all of the following chemicals, as the context requires: 1. "THC" or "Δ9-THC" means Δ 9 -tetrahydrocannabinol, (Δ)-(6aR,10aR)-6,6,9- trimethyl-3-pentyl-6a,7,8,10a- tetrahydro-6h-benzo[c]chromen-1-ol. 2. "THCA" or "Δ9-THCA" means the acid form of THC. 3. "CBD" or "Cannabidiol" means 2-[(1R,6R)-6-isopropenyl-3-methylcyclohex-2- en-1-yl]-5-pentylbenzene-1,3- diol. 4. "CBDA" or "Cannabidiolic acid" means the acid form of CBD. 5. "CBN" or "Cannabinol" means 6,6,9-trimethyl-3-pentyl-benzo[c]chromen-1-ol. J. Cannabis Cultivation Facility" or "Facility" shall have the same meaning as cultivation site as set forth in Section of the Businesses and Professions Code. It includes Major Cannabis Cultivation Facility, defined as follows: Major Cannabis Cultivation Facility means a Facility that is between 10,000 sf and 22,000 sf in total canopy area. K. Cannabis Products shall have the same meaning as set forth in Section of the Business and Professions Code, as amended from time to time, and includes both 20 of 150

21 Page 3 of 12 medicinal and adult-use Concentrates and Cannabis Products. L. Cannabis Waste means contaminated Cannabis or Cannabis Products that cannot be rendered safe and any Cannabis or Cannabis Products that have been designated as a waste by a Cannabis Business, or regulatory authority. Cannabis Waste does not include materials from the cultivation and manufacturing processes not known to be contaminated with pesticide or heavy metal residues and which may be composted by an approved process. M. "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 Medicinal 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 Medicinal 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 N. "Concentrate" shall have the same meaning as set forth in Section of the Business and Professions Code, as amended from time to time. O. "Contaminant" means any pesticide, residual solvent or microbiological organism or product thereof, heavy metal, or any other Adulterant as determined by the Environmental Health Division. P. Cosmetic Cannabis Product means any article, or its components, intended to be rubbed, poured, sprinkled, or sprayed on, introduced to, or otherwise applied to, the human body, or any part of the human body, that is not an Edible Cannabis product and includes tinctures. Q. "Cultivate and Cultivation" mean any activity involving the planting, growing, harvesting, drying, curing, grading or trimming of cannabis. R. Cultivator means an individual or entity required to be licensed to cultivate cannabis pursuant to MAUCRSA, as amended from time to time. ATTACHMENT VII.A.1.c S. Deliver and Delivery shall mean any transit of Cannabis or Cannabis Product from a Retailer to a Customer at a residence. 21 of 150

22 Page 4 of 12 T. Distributor means an individual or entity required to be licensed as a distributor pursuant to MAUCRSA, as amended from time to time. U. "Edible Cannabis Product" (or "Edible") means a cannabis product that is intended to be used, in whole or in part, for human consumption, including but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section of the health and Safety Code, or a drug, as defined by Section of the Health and Safety Code. V. Manufacturer means an individual or entity required to be licensed as a manufacturer pursuant to MAUCRSA, as amended from time to time. ATTACHMENT VII.A.1.c W. Medicinal Cannabis means Cannabis and Cannabis Products intended as medicine for those with a valid physician s recommendation in compliance with California law. X. Microbusiness shall have the same meaning set forth in MAUCRSA, as amended from time to time. Y. Nursery means an individual or entity required to be licensed as a Type 4 Cultivator pursuant to MAUCRSA, as amended from time to time, and includes Class 1 Nursery and Class 2 Nursery, defined as follows: 1. Class 1 Nursery means a nursery that does not produce mature, flowering plants, such as cuttings or clones. 2. Class 2 Nursery means a nursery that produces mature plants with flowers for the purpose of producing seeds, whether for distribution to a Retailer or for research purposes. A Class 2 Nursery may also produce cuttings or clones. Z. "Primary Caregiver" shall have the same meaning as set forth in Section of the Business and Professions Code, as amended from time to time. AA. "Principal" means any person that has direct or non-delegated indirect authority over the management or policies of a Cannabis Business. BB. "Protected Health Information" means documentation of a an MCB s Qualified Patient s medical history or condition other than a physician s recommendation, an identification card issued pursuant to Health and Safety Code Section et seq., or the written designation of a Primary Caregiver by a Qualified Patient or identification 22 of 150

23 ATTACHMENT VII.A.1.c Page 5 of 12 card holder. Protected Health Information shall not include information conveyed by a Qualified Patient to a Retailer regarding such Qualified Patient s medical condition, information conveyed by a Qualified Patient to a Retailer regarding efforts to ameliorate or otherwise address symptoms associated with such Qualified Patient s medical condition, or information regarding Cannabis or Medicinal Cannabis Products provided to a Qualified Patient. CC. "Qualified Patient" shall have the same meaning as provided in California Health and Safety Code Section DD. Retailer 1. Retailer means both Retailers with a location to which Customers, Qualified Patients, or Primary Caregivers may come to acquire Cannabis or any other good or service, and Delivery-Only Retailers. 2. "Retailer" shall mean an ACB ( A-Retailer ) or MCB ( M-Retailer ) that is authorized under Chapter 12.21, Title 23, and California law to dispense Cannabis at a non-residential location. A Retailer may deliver to its Qualified Patients, Primary Caregivers, or adult consumers also and provide other incidental services to its Qualified Patients, Primary Caregivers, or adult consumers to the extent permitted by California law. 3. "Delivery-Only Retailer is a Retailer that is limited to acquiring Cannabis and delivering it to its Qualified Patients, Primary Caregivers, and adult consumers, and does not have a location to which Qualified Patients, Primary Caregivers, and adult consumers may come to acquire Cannabis or any other good or service. EE. "Solvent" means any substance in which another substance is dissolved, forming a solution. FF. "Tincture" means an extract of Cannabis or solution of such, typically made with food-grade alcohol or glycerin Information Requirements Every Cannabis Business shall provide the following information to the City s Environmental Health Division, and shall be updated whenever there is any material change. A. A description of the Cannabis Business and its location, which shall include such information as the City may require that demonstrates compliance with applicable 23 of 150

24 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 the nature of the Cannabis 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 Operating Standards A. All Cannabis Businesses shall comply with the operating standards set forth in this Section. A. Cannabis Businesses shall comply with Health and Safety Code Sections et seq. and any other California laws that may be adopted concerning Adult- Use and Medicinal Cannabis, including but not limited to the Medicinal and Adult-use of Cannabis Regulation and Safety Act, and Chapters or 12.26, and 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 and fees. To the extent the requirements of this Chapter and Chapters and are more restrictive than California law, they shall apply. To the extent the requirements of this Chapter and Chapters and are less restrictive than California law, the requirements of California law shall apply except in instances where the state has expressly allowed localities to be less strict. B. MCBs may retain memberships. Page 6 of 12 ATTACHMENT VII.A.1.c C. Cannabis Businesses shall only obtain Cannabis from licensed cultivators as authorized by California law. D. All employees and volunteers of a Cannabis Business, with the exception of an M- Retailer, must be at least 21 years of age. A Qualified Patient who is at least 18 years old may work or volunteer at an M-Retailer. E. The Environmental Health Division may require any Cannabis Business to submit an odor control plan to be approved by the Division. F. Non-diversion. ACBs shall take all practicable steps necessary to prevent and deter diversion of Cannabis and Cannabis Products to persons under 21 years of age, including by using the state-mandated Track-and-Trace system. MCBs shall take all practicable steps necessary to prevent and deter diversion Medicinal Cannabis and Medicinal Cannabis Products to persons other than Qualified Patients or their Primary 24 of 150

25 ATTACHMENT VII.A.1.c Page 7 of 12 Caregivers, or non-mcbs, including by using the state-mandated Track-and-Trace system. G. Security. 1. Cannabis Businesses 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 premises. 2. Retailers, Distributors and Cultivators 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 Cannabis Businesses 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 Retailers, Distributors and Cultivators 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 Cannabis 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 Cannabis Businesses must securely store all Cannabis at all times, except for limited amounts used for display purposes, samples or immediate sale, and the entrance to all storage areas shall be locked and under the control of staff 25 of 150

26 at all times. 7. Cannabis 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. 8. If any of the requirements in this section conflict with state law, the stricter requirement will apply. H. Neighborhood compatibility Page 8 of 12 ATTACHMENT VII.A.1.c 1. Cannabis Businesses shall be operated to ensure neighborhood compatibility, and shall take all steps necessary to ensure that Customers do not create neighborhood disturbances. Such measures shall include, but not be limited to, providing a security guard to patrol the area surrounding any Retailer, Distributor or Cultivator during all hours of operation. 2. Retailers shall provide the Police Department and all residents and property owners within 100 feet with the current name, phone number, secondary phone number and 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. Retailers shall encourage neighbors to call this person to try to solve any operating problems. 3. All Cannabis Businesses 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 address. Cannabis 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. Cannabis 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 the premises and adjacent properties. Such conditions include, but are not limited to: smoking; creating a noise disturbance; loitering; littering; and graffiti. 5. Cannabis Businesses shall ensure all graffiti is removed from property and parking lots under their control within 72 hours of its appearance. 26 of 150

27 Page 9 of 12 I. Sale and Consumption of Cannabis, Tobacco and Alcohol 1. Sale or consumption of tobacco is prohibited at Cannabis Businesses. 2. Sale and/or service of alcoholic beverages at Cannabis Businesses is prohibited. J. Exterior Signage. Exterior signage identifying the presence of a Cannabis Business is discouraged except that authorized for Retailers with a retail location for Customer purchases. K. Holding requirements. Any juice or beverage produced in accordance with Section of the California Code of Regulations Title 17, Division 1, Chapter 13, Subchapter 3, Article 4 that requires refrigeration to prevent the rapid growth of undesirable organisms or the formation of alcohol through fermentation shall be held below 41 F to prevent the cannabis product from becoming adulterated during the manufacturing, processing, packing, holding, and transporting. Transporting includes both by a Distributor among licensees and by Retailers conducting delivery to Customers, Qualified Patients, and Qualified Caregivers. Fixed facilities shall hold such cannabis products in equipment certified to ASTM commercial food safety equipment standards by an organization such as but not limited to NSF, UL, or ETL Records A. General. All Cannabis Businesses 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 Cannabis Business s application and during the ranking and allocation process. Such records shall be maintained in a secure location under the control of the Cannabis Business within the City of Berkeley, and shall be subject to inspection by the City upon reasonable notice during regular operational hours or by appointment. B. Finances. ATTACHMENT VII.A.1.c 1. Cannabis 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 fair payment of taxes and for M-Retailers very low income 2% distribution verification. C. Operations. Cannabis 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 total number of very low-income members and the amount distributed; 27 of 150

28 The total and net amount of revenue collected during the year; 3. The consideration paid for each Batch; 4. Monetary and non-monetary contributions; 5. Total monetary and non-monetary distributions to suppliers; 6. Salaries and overhead; and 7. A complete list of the types of Cannabis, Cannabis Products and Edibles available, and the prices thereof Operating Procedure and Criteria No Cannabis Business may operate in the City of Berkeley without all applicable City of Berkeley licenses. The Council may by resolution establish procedures and criteria for accepting applications to operate Cannabis Businesses and determining which, if any, to approve 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 shall be deemed to be "financial information" covered by Chapter B. The information required by Section 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 Authority of City Manager Page 10 of 12 A. The City Manager or his or her designee shall have authority to determine the nature of any Cannabis Business or purported Cannabis Business and whether that entity complies with any of the requirements of this Chapter, Chapters and 12.26, and Title 23, and to conduct inspections as provided in Chapter B. The City Manager or his or her designee may promulgate regulations for the ATTACHMENT VII.A.1.c 28 of 150

29 ATTACHMENT VII.A.1.c Page 11 of 12 administration and implementation of this Chapter, including, but not limited to, regulations relating to non-diversion, record-keeping, and tracking and tracing Cannabis. C. The City Manager or his or her designee may require any Cannabis Business to obtain operating permits from the City of Berkeley Fire Department, Toxics Management Division, Environmental Health Division, and any other department or division. D. 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, Chapters and 12.26, and Title 23, and to adopt regulations to implement this Chapter, Chapters and 12.26, and Title Abatement of Violations A. Violations of this Chapter or Chapters or 12.26, or shall constitute a public nuisance under Chapter 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 or 12.26, or shall not be punishable as public offenses to the extent that doing so would conflict with California law Fees The City Council may establish by resolution the fees that shall be charged to Cannabis Businesses for administration and implementation of this Chapter. The adoption of such fees shall not prevent the City from recovering enforcement costs from Cannabis Businesses not specified in such resolution 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 29 of 150

30 458 declared invalid or unconstitutional. Page 12 of 12 ATTACHMENT VII.A.1.c 30 of 150

31 ATTACHMENT VII.A.1.d Page 1 of 19 Chapter CANNABIS BUSINESS OPERATING STANDARDS Sections: Article I General Applicability and Purpose Selection Process Article II Cannabis Businesses Eligibility requirements Retailers Distributors Manufacturers Cultivators Testing Laboratories Microbusiness Product Safety and Quality Assurance Reserved Article III Collectives Limitations on Collective operations Operating standards for all Collectives Product Safety and Quality Assurance for Collectives Article IV Enforcement Fees Authority of City Manager Severability Reserved Applicability and Purpose A. This Chapter applies to all Cannabis Businesses as defined in Chapter The purpose of the Chapter is to provide specific operating standards applicable to these businesses and to implement the provisions contained in the Medicinal and Adult-Use of Cannabis Regulation and Safety Act, codified in Division 10 of the Business and Professions Code, Section 1602 and 1617 of the Fish and Game Code, Sections 37104, 54036, and of the Food and Agriculture Code, Division 10 of the Health and Safety Code, Division 2 of the Revenue and Taxation Code, Sections and of the Vehicle Code, and Sections 1831, 1847, and of the Water Code ( MAUCRSA ), as amended from time to time Selection Process The Council may by resolution establish procedures and criteria for accepting applications to operate Retailers or Major Cannabis Cultivators and determining which, if any, to approve. 31 of 150

32 ATTACHMENT VII.A.1.d Page 2 of Eligibility requirements A. No Principal of any business of a certain license type may be a Principal for any other business of a different license type in the City of Berkeley, except that a State M licensee may also be a State A licensee of the same license type Retailers Retailers shall comply with the operating standards set forth in this Section. A. Retailers must obtain operating permits from and allow inspections by the City of Berkeley Environmental Health Division. B. Retailers shall only allow Customer visits between the hours of 9:00 a.m. and 9:00 p.m. C. A Retailer may deliver cannabis only to the extent allowed by its State license. D. Retailers may not distribute free samples for promotional purposes outside of the Retailer premises. E. Accessibility. Retailers shall comply with all physical accessibility requirements that would be applicable to a newly-constructed building, except that pre-existing Retailers permitted under Ordinance No 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. F. Signage. 1. All Retailers must either provide to each Customer or prominently display at all points of sale a notice containing the language set forth in this Section. a. If provided to each Customer, the notice shall be printed on paper that is no less than 5 inches by 8 inches in size, and shall be printed in no smaller than 18-point font. b. If prominently displayed at all points of sale, the notice shall be printed on a poster no less than 8-1/2 by 11 inches in size, and shall be printed in no smaller than a 28-point font. 2. All Retailers must prominently display a notice as set forth in subsection E.1.b that contains the following language: The use of cannabis may impair a person s ability to drive a motor vehicle or operate heavy machinery. All Retailers that provide delivery services, including Delivery-only Retailers, must provide this notice to each delivery Customer as set forth in subsection E.1.a. 3. All Retailers must prominently display a notice as set forth in subsection E.1.b that contains the following language: WARNING: Cannabis is not tested by local, state or federal governmental agencies for health, safety, or efficacy. There may be health risks associated with the consumption of cannabis or cannabis products. All Retailers that provide delivery services, including Delivery-only Retailers, must provide this notice to each Customer as set forth in subsection E.1.a. 4. Any M-Retailer that allows Customer visits must prominently display a notice as set forth in subsection E.1.b that contains the following language:: 32 of 150

33 ATTACHMENT VII.A.1.d Page 3 of 19 This M-Retailer provides medicinal cannabis only to Qualified Patients and their Primary Caregivers, who must have a valid California Medical Marijuana Identification Card or a verifiable, written recommendation from a physician for medicinal cannabis. All M-Retailers that provide delivery services, including Delivery-only M-Retailers, must provide this notice to each delivery Customer as set forth in subsection E.1.a. 5. All M-Retailers must prominently display a notice as set forth in subsection E.1.b that contains the following language: This Medicinal Cannabis Retailer is licensed in accordance with the laws of the City of Berkeley and the State of California. The sale or diversion of medicinal cannabis for non-medical purposes is a violation of State and local laws. All M-Retailers that provide delivery services, including Delivery-only M-Retailers, must provide this notice to each delivery Customer as set forth in subsection E.1.a. 6. Any A-Retailer that allows Customer visits must prominently display a notice as set forth in subsection E.1.b that contains the following language: This Adult-Use Cannabis Retailer is licensed in accordance with the laws of the City of Berkeley and the State of California. The sale or diversion of adult- use cannabis to persons under the age of 21 is a violation of State and local laws. All A-Retailers that provide delivery services, including Delivery-only A-Retailers, must provide this notice to each delivery Customer as set forth in subsection E.1.a. G. Consumption of Cannabis 1. The consumption of Cannabis or Cannabis Products in public places is prohibited. 2. Notwithstanding subsection F.1, the consumption of Cannabis and Cannabis Products is permitted at Retailers that allow Customer visits, with the exception of smoking. Smoking of Cannabis is prohibited at Retailers. 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 Cannabis, including but not limited to any device manufactured, 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. H. Delivery Requirements 1. All Retailers that provide delivery services must comply with the following requirements and all applicable requirements of State law. In the event of a conflict, State law shall prevail. a. All vehicles used for delivery shall be maintained and operated in a manner and in a condition required by law and applicable regulations. b. The following persons may not drive delivery vehicles: i. a person who does not possess a valid driver s license; 33 of 150

34 ATTACHMENT VII.A.1.d Page 4 of 19 ii. a person who has been at fault within the immediately preceding two years in any motor vehicle accident causing death or personal injury; iii. a person who has been at fault in three or more motor vehicle accidents within the previous 12 months; iv. 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; v. a person who has been convicted of any of the following misdemeanor offenses within the past five years: driving under the influence or reckless driving involving alcohol or reckless driving involving bodily injury; vi. a person who has been convicted of any of the following offenses: a second or 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. c. The following persons may not be involved in making deliveries: i. any person who is required to register as a sex offender under Section 290 of the California Penal Code; ii. any person who has within the past ten years been convicted of any felony offense involving moral turpitude. d. Persons involved in making deliveries must have in their possession a copy of the document memorializing the City s approval of the delivery service. e. Persons involved in making deliveries may not be armed. f. Delivery vehicles may not advertise any activity related to Cannabis, carry symbols or emblems related to Cannabis, or advertise the name of the Retailer. g. Delivery of Cannabis shall be directly to the residence of the Customer unless said residence is in a park, school or hospital. Deliveries to parks, schools, hospitals, and all non-residential locations are prohibited. h. Deliveries may occur only between the hours of 8:00 a.m. and 10:00 p.m. i. Delivery vehicles shall not carry or transport at any one time an amount of Cannabis, Cannabis Products, cash and/or cash equivalents worth, in total, more than three thousand dollars ($3,000). j. All orders to be delivered shall be packaged by the name or identification number of the Customer for whom the delivery is intended. k. In addition to the requirements of Section subdivisions A and B, the person responsible for making deliveries shall have a copy of the record of all delivery requests while making deliveries. l. All Retailers that provide delivery service shall maintain at all times Commercial General Liability insurance providing coverage at least as broad as ISO CGL Form 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 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 34 of 150

35 ATTACHMENT VII.A.1.d Page 5 of 19 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. I. M-Retailers 1. M-Retailers must not admit any person without first verifying his or her status as a Qualified Patient or Primary Caregiver. 2. No physician recommendations for Medicinal Cannabis may be provided on site. 3. M-Retailers may not provide more Medicinal Cannabis to a Qualified Patient or Primary Caregiver than is necessary for the personal medicinal use of the Qualified Patient for whom the Medicinal Cannabis is intended, and may not dispense more Medicinal Cannabis to a Qualified Patient or Primary Caregiver per day than permitted by State law. 4. M-Retailers must take all practicable steps necessary to prevent and deter diversion of Medicinal Cannabis to any person who is not a Qualified Patient or Primary Caregiver. M-Retailers must limit access to Medicinal Cannabis to authorized personnel only. M-Retailers must maintain an inventory management system that accounts for all Medicinal Cannabis separately from Adult Use Cannabis if both types are sold or distributed at the Retailer. 5. M-Retailers must not admit any Qualified Patient under 18 years of age pursuant to MAUCRSA. 6. Medicinal Cannabis for low income persons a. At least 2% (by weight) of the annual amount of Medicinal Cannabis in dried plant form provided by a M-Retailer to Qualified Patients and Primary Caregivers shall be provided at no cost to very low-income Qualified Patients who are Berkeley residents or their Primary Caregivers. This amount shall be calculated every six months, based on the amount dispensed during the immediately preceding six months. Medicinal Cannabis provided under this Section shall be the same quality on average as Medicinal Cannabis that is dispensed to other persons. b. For purposes of this Section, income shall be verified using federal income tax returns or another reliable method approved by the City Manager. c. For purposes this Section, "very low income" shall mean the household income levels established by the U.S. Department of Housing and Urban Development. d. M-Retailers shall keep an accurate roster of very low-income Qualified Patients who are Berkeley residents, which shall include a copy of either a California Medical Cannabis Identification Card or a physician s recommendation, 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 Qualified Patient and Primary Caregiver. e. M-Retailers shall track distributions to very low-income Qualified Patients (or their Primary Caregivers) in an inventory management system compatible 35 of 150

36 ATTACHMENT VII.A.1.d Page 6 of 19 with the state Track-and-Trace program. M-Retailers shall generate a report every six (6) months showing the total percentage of Medicinal Cannabis sales distributed to Berkeley residents. If an M-Retailer voluntarily expands the program to residents outside of Berkeley, that percentage shall be calculated separately. J. A-Retailers must not admit any person under 21 years of age. If an A-Retailer also holds an M-Retailer license, access to the M-Retailer portion of the establishment is subject to the requirements of subsection H. K. Delivery-only Retailers 1. Delivery-Only Retailers shall comply with all requirements that are applicable to Retailers except as specifically exempted based on the absence of Customer visits. 2. Delivery-only Retailers shall only be established in zoning districts where they are specifically permitted. 3. Signage and advertising or referencing cannabis, including symbols such as a cannabis leaf or a green cross, are prohibited at Delivery-Only Retailers Distributors A. Distributors must obtain operating permits from and are subject to inspections by the City of Berkeley Environmental Health Division. B. Distributors must arrange for the testing of Cannabis and Cannabis Products consistent with the City of Berkeley testing procedures specified in Section of this Chapter until such time as testing procedures specified by the Bureau of Cannabis Control are available and conducted locally. C. Testing as specified by the Bureau of Cannabis Control shall be conducted no later than July 1, 2018 at which time BMC Sections and are repealed. D. Distributors must maintain a written or computerized log compatible with the State Track-and-Trace system documenting: 1. the date, type, and amount of Product tested; 2. the source(s) of any contaminated Medical Cannabis 3. the results of the testing, including the name and level of the substance detected; and 4. the disposition of the Cannabis from which any 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 be made available to the City upon request. E. Distributors are subject to the provisions of the California Retail Food Code and the Sherman Food, Drug and Cosmetic Law, even if those laws are not directly applicable to Edible or Cosmetic Cannabis Products. Handwashing facilities shall be adequate and convenient and be furnished with running water at a suitable temperature. Handwashing facilities shall be located in 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. 36 of 150

37 ATTACHMENT VII.A.1.d Page 7 of 19 F. 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 Manufacturers A. All Manufacturers must obtain operating permits from and are subject to inspections by the City of Berkeley Environmental Health Division. B. Compliance with State Food and Product Safety Requirements. 1. A Manufacturer that prepares Cannabis Products must comply with the relevant provisions of all State and local laws regarding the preparation, distribution, labeling and sale of food and cosmetics, even if those laws are not directly applicable to Edible or Cosmetic Cannabis Products. 2. Preparation of Edible and Cosmetic Cannabis Products. a. Individuals involved in the production or distribution of Edibles and Cosmetic Cannabis Products shall thoroughly wash their hands before commencing production and before handling the finished product. Gloves must be worn when packaging Edibles or Cosmetic Cannabis Products. 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 Edibles or Cosmetic Cannabis Products 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 Edibles or Cosmetic Cannabis Products. c. All employees of Manufacturers who produce Edibles must be State certified food handlers. The valid certificate number of such Manufacturers must be on record at each Retailer 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. 3. 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. 4. Manufacture of Concentrates a. Cold-water and mechanical extraction equipment shall be maintained in sanitary condition and approved for use by the City of Berkeley Environmental Health Division. b. Any manufacture method using compressed gases or flammable solvents, whether volatile or non-volatile, shall be approved in advance and inspected by the City of Berkeley Fire Department and Toxics Management Division. c. All Concentrates shall be produced under sanitary conditions and maintained free of filth and contaminants. 37 of 150

38 Page 8 of 19 ATTACHMENT VII.A.1.d Cultivators A. Cultivators must obtain operating permits from and are subject to inspections by the City of Berkeley Environmental Health Division. B. Cultivator license types shall be the same as defined in MAUCRSA, with the exception of Type 4 Cultivation, as defined in Section C. Cultivators may only provide Cannabis or Cannabis Products to other Cannabis Businesses that are permitted by State and local authorities and compliant with State and local law. D. Energy Use. Cultivators must include 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. 1. Cultivators must include the following systems to the extent feasible: on-site renewable energy generation; energy storage batteries; water collection, filtration and reuse; and rainwater harvesting. 2. Cultivators must include in any application for a Cannabis Cultivation Facility a description of all energy and water systems, measures employed to maximize efficient resource use, and the following metrics, with supporting documentation: a. Planned lighting power density (watts/sf) b. Planned lighting Energy Utilization Index (kbtu/sf/year) c. Planned total site Energy Utilization Index (kbtu/sf/year) d. Planned potable water consumption (gallons/sf/year) 3. Cultivators must 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. 4. If a Facility uses natural gas to generate electricity for consumption at the site, the Cultivator must 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. 5. For purposes of calculating carbon emissions, the carbon dioxide content of natural gas shall be 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. 6. Cultivators shall be responsible for demonstrating compliance with this Section 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. 38 of 150

39 ATTACHMENT VII.A.1.d Page 9 of The annual amount paid by a Cultivator 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. E. Class 2 Nurseries must track the amount of, and disposition of, flower remaining after seed harvesting. F. Cultivators must store in a safe manner all pesticides approved for use. Only pesticides approved for use may be stored onsite. Any unapproved pesticides found onsite will trigger a crop hold until the live plants are tested and found free of unapproved pesticide. Plants with any level of unapproved pesticides may be destroyed in the presence of City officials designated by the City Manager. G. Cultivators must maintain all growing rooms in a clean, safe and sanitary manner and free of visible molds and fungal growth. H. Cannabis Cultivation Facilities shall not harbor infestations of rodents or non-beneficial insects. I. In Facilities using CO2 enrichment, ambient oxygen sensors shall be installed in any hallways, offices, or other enclosed occupied spaces Testing Laboratories Testing Laboratories must obtain operating permits from and are subject to inspections by the City of Berkeley Environmental Health Division Microbusinesses Microbusinesses must obtain separate City-issued operating permits for each activity conducted on the premises Temporary Cannabis Events Temporary Cannabis events as defined in MAUCRSA are prohibited Reserved Limitations on Collective operations As a use that is incidental to the residential use of property in residential zoning districts, and only acquires and provides Medicinal Cannabis to Qualified Patients and Primary Caregivers, Collectives shall comply with the following operating limitations: 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. Each Collective may not operate at more than four (4) residential locations in Berkeley, and may not store or maintain at any site at any time more than a combined 39 of 150

40 ATTACHMENT VII.A.1.d Page 10 of 19 total of 10 pounds of dried Medical Cannabis and concentrates, of which no more than 1 pound may be concentrates. D. Collectives may not allowhave Member visits to obtain Medical Cannabis except for social purposes before 8:00 a.m. or after 9:00 p.m. E. No alcohol may be served for consideration. F. No consideration may be charged for entry into the Collective or any part of the residence in which the Collective is located, no live entertainment may be provided, 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 modifications tochanges in utility services or exterior modifications beyond those that would be customary for a residence. J. Collectives shall 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. K. Collectives must consist of Members who are Berkeley residents.this section shall become inoperative and be deemed repealed on January 9, L. All cultivation of Medical Cannabis must be conducted at the residential collective location(s). M. All Edibles must be produced at the residential collective location(s) and base ingredients must conform to items on the most recent California Department of Public health s Approved Cottage Foods list. N. A collective Member, when off the premises, may not have on his or her person an amount of Medicinal Cannabis or Medicinal Cannabis Products in excess of that allowed by State law. O. Primary Caregivers may retrieve Medicinal Cannabis or Medicinal Cannabis Products for their Qualified Patient that is unable for medical reasons to retrieve Medicinal Cannabis or Medicinal Cannabis Products from the collective. Convenience delivery services are expressly prohibited. P. On an annual basis, collectives shall pay the annual operating fee established by the City Council and obtain an Operating Permit from the City of Berkeley Environmental Health Division. Permittees may be subject to inspection by the City of Berkeley Environmental Health Division. Q. Collectives may not manufacture concentrated Medicinal Cannabis products by means of any pressurized gas or flammable solvent whether volatile or non-volatile Operating standards for Collectives Collectives mustshall comply with the following provisions. of this Chapter. A. Membership. 1. No person other than a Member may cultivate Medicinal Cannabis on behalf of a Collective. 2. The scale of cultivation by or on behalf of a Collective shall be proportional to its Membership. 40 of 150

41 ATTACHMENT VII.A.1.d Page 11 of No physician recommendations for Medicinal Cannabis may be provided on site. 4. All prospective members must be advised in writing, prior to accession to membership, as follows: "WARNING: Cannabis is not tested by local, state or federal governmental agencies for health, safety, or efficacy. There may be health risks associated with the consumption of Cannabis or Cannabis Products." "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." B. Non-diversion. Collectives shall take all practicable steps necessary to prevent and deter diversion of Medicinal Cannabis to non-members. Collectives must limit access to Medicinal Cannabis to authorized personnel only, and must maintain an inventory management system that: 1. Accounts for all Medicinal Cannabis dispensed to Members; 2. Tracks each Batch of Medicinal Cannabis cultivated by the Collective 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 Batchone year; and 4. Is capable of producing a summary showing the information necessary to verify non-diversion. C. Dispensing. 1. Collectives may not dispense to any person who is not a Member and may not dispense without first verifying membership. 2. Collectives may not provide more Medicinal Cannabis for a Member than is necessary for the personal medical use of the Qualified Patient for whom the Medicinal Cannabis is intended, and may not dispense more than one ounce of dried Medicinal Cannabis in leaf form per day per Qualified Patient 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 Collective may dispense to him or her, an amount of Medicinal Cannabis consistent with those needs; b. a Collective may provide more than one ounce of dried Medicinal Cannabis if the excess amount is low concentration Medicinal Cannabis that would not normally be sold for consumption and is only used for preparation of Medicinal 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. Collectives may not distribute free samples outside of the Collectives premises. 4. If a Member has an identification card issued pursuant to Health & Safety Code Section or , Collective shall use the number from that card to ensure compliance with this subdivision. D. Product Safety, Quality Assurance and Labeling Medical Cannabis shall be tested, and specified compounds shall be quantitated, as set forth in this Subsection. 41 of 150

42 ATTACHMENT VII.A.1.d Page 12 of 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 THC CBDA CBD CBN 1 High-performance liquid chromatography 2 Gas chromatography HPLC 1, or GC 2 with derivatization or other methodology approved by a state or the federal government as meeting a limit of quantitation of 0.1% by weight 2. 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) Edibles (other than beverages) Capsules/pills Oils, butters, tinctures (for internal consumption) Topicals (external application) Beverages % by weight and mg/g mg/package or mg/serving if applicable; nutritional and allergen information as required by the CDPH for cottage foods mg/capsule weight/volume mg/g mg/g or mg/ml, as applicable mg/container and mg/serving, if applicable; nutritional and allergen information as required by the CDPH for cottage foods. 3. The following requirement shall only apply to collectives with 25 or more members. 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. Testing Contaminant Permissible amount methodology 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 100 ppb (total of all quantitated pesticides)3 42 of 150

43 Contaminant Page 13 of 19 Testing methodology been exceeded using EPA- or FDA-accepted methodologies for pesticides, including, not limited to GC-MS1, Elisa2 Permissible amount ATTACHMENT VII.A.1.d Microbiological contaminants Residual flammable solvents (concentrates only) Any methodology approved by any U.S. or recognized international standards organizations APC4 < 100,000 CFUs 5 Yeast/Mold = APC<10,000 CFUs Coliform 1,000 CFUs Pseudomonas 1,000 CFUs 6 Salmonella = 0 CFU E. coli = 0 CFU Head space analysis 400 ppm (total of all solvents) 7 1 Gas chromatography-mass spectrometry 2 Enzyme-linked immunosorbent assay 3 Parts per billion 4 Aerobic plate count 5 Colony-forming unit 6 This limit shall apply as of July 1, Prior to that date, the limit for Pseudomonas shall be 10,000 CFU. 7 Parts per million 4. Baked goods, such as cookies and brownies, shall be exempt from testing for contaminants. These products are still subject to testing for potency, as required for the label information in Section D.2, and must use medical cannabis that has been tested for contaminants. 5. Collectives shall maintain a written or computerized log documenting: a. the date, type, and amount of Product tested; b. the source(s) of any contaminated Medical Cannabis; c. the report containing the results of the testing, including the name and level of the substance detected; and d. 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. 6. Packaging and Labeling for Medical Cannabis. a. 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: i. the name and contact information for the Dispensary; ii. the weight; 43 of 150

44 ATTACHMENT VII.A.1.d Page 14 of 19 iii. the quantity of compounds as set forth in subdivision B; iv. the date of manufacture or production; and v. a complete list of ingredients. E. Finances. 1. Collectives shall operate on a Not-for-Profit basis. Sale of Medicinal 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 Medicinal Cannabis, Collectives need not operate on a Not-For-Profit basis. 2. Collectives with more than 25 members shall make their financial records available to the City on an annual basis. Such audited records shall be limited to information necessary for the City to determine the not-for-profit status of the organization and shall include information on staff/principal compensation. EF. Operations. Collectives 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 Medicinal Cannabis Products or Edibles dispensed for monetary consideration; 6. Salaries and overhead; and 7. A complete list of the types of Medicinal Cannabis, Medicinal Cannabis Products and Edibles available, and the prices thereof. FG. Confidentiality. Collectives shall comply with the following provisions of this Section to the extent applicable: 1. 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 shall be deemed to be "financial information" covered by Chapter The information required by Section 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. 3. In order to protect confidentiality, Collectives shall not collect or maintain Protected Health Information. Collectives 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 Collective maintains information conveyed by a Member to a Collective regarding such Member s medical condition, information conveyed by a Member to a Collective regarding efforts to ameliorate or otherwise address symptoms associated with such Member s medical condition, or information regarding Medicinal Cannabis, Medicinal Cannabis 44 of 150

45 ATTACHMENT VII.A.1.d Page 15 of 19 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. GH. Before it may obtain a business license pursuant as required by Chapter 9.04, a Collective must obtain an inspection from the City or authorized City representative that any cultivation or processing of Medical Cannabis that it intends to undertake at a given site will not pose a fire hazard. I. This Section shall become inoperative and be deemed repealed on January 9, Product Safety and Quality Assurance for CollectivesCollectives Prohibited Collectives shall be prohibited and must cease operation after January 9, 2019 pursuant to California Health and Safety Code Sections and and California Business and Professions Code Section Collectives with more than 25 members shall test all Medicinal Cannabis and Medicinal Cannabis Products, 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 THC CBDA CBD CBN 1 High-performance liquid chromatography 2 Gas chromatography HPLC 1, or GC 2 with derivatization or other methodology approved by a state or the federal government as meeting a limit of quantitation of 0.1% by weight B. The quantitative information required by subdivision A shall be printed on labels for all Medicinal Cannabis as set forth in the following table. Product type Label information Cannabis (flowers, leaf and concentrates, including water processed concentrates) Edibles (other than beverages) Capsules/pills Oils, butters, tinctures (for internal % by weight and mg/g mg/package or mg/serving if applicable; nutritional and allergen information as required by the CDPH for cottage foods mg/capsule weight/volume 45 of 150

46 consumption) Product type Topicals (external application) Beverages mg/g Label information mg/g or mg/ml, as applicable mg/container and mg/serving, if applicable; nutritional and allergen information as required by the CDPH for cottage foods. C. Medicinal Cannabis shall be tested for contaminants as set forth in the following table. Medicinal Cannabis that contains more than the permissible levels may not be provided to any Member or any other person, and shall either be destroyed or returned to their source(s) at the option of the owner. Testing Contaminant Permissible amount methodology EPA-controlled pesticides commonly used in cannabis cultivation Microbiological contaminants Residual flammable solvents (concentrates only) 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/LC-MS1, Elisa2 Any methodology approved by any U.S. or recognized international standards organizations 100 ppb (total of all quantitated pesticides)3 APC4 < 100,000 CFUs 5 Yeast/Mold = APC<10,000 CFUs Coliform 1,000 CFUs Pseudomonas 1,000 CFUs 6 Salmonella = 0 CFU E. coli = 0 CFU Head space analysis 400 ppm (total of all solvents) 7 1 Gas chromatography-mass spectrometry 2 Enzyme-linked immunosorbent assay. ELISA may be used to screen for test failures only. Negative/passing results must be verified by GC/LC-MS. 3 Parts per billion 4 Aerobic plate count 5 Colony-forming unit 6 This limit shall apply as of July 1, Prior to that date, the limit for Pseudomonas shall be 10,000 CFU. 7 Parts per million Page 16 of 19 ATTACHMENT VII.A.1.d 46 of 150

47 ATTACHMENT VII.A.1.d Page 17 of 19 D. Baked goods, such as cookies and brownies, shall be exempt from testing for contaminants. These products remain subject to testing for potency, as required for the label information of this Section, and must use Medicinal Cannabis that has been tested for contaminants. E. Collectives shall maintain a written or computerized log documenting: 1. the date, type, and amount of Product tested; 2. the source(s) of any contaminated Medicinal Cannabis; 3. the report containing the results of the testing, including the name and level of the substance detected; and 4. the disposition of the Medicinal 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 Medicinal Cannabis. 1. Medicinal Cannabis that is made available to members shall be contained in packaging that bears labels containing the following information, in addition to any other information that a Collective may choose to provide or that may be required by law: a. the name and contact information for the Collective; b. the weight; c. the quantity of compounds as set forth in subdivision B; d. the date of manufacture or production; and e. a complete list of ingredients. G. Collectives with more than 25 members will be subject to the following regulations for 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 Collective 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 food, even if those laws are not directly applicable to Edibles. 3. Preparation of Edibles. a. Individuals involved in the production or distribution of Edibles containing Medicinal Cannabis shall thoroughly wash their hands before commencing production and before handling the finished product. Gloves must be worn when packaging edible products containing Medicinal 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 Medicinal 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 Medicinal Cannabis. 47 of 150

48 ATTACHMENT VII.A.1.d Page 18 of 19 c. Edibles that are produced at a Collective may only be prepared by a Member of that Collective. d. Certified Food Handler. A Member who produces Edible Medicinal Cannabis Products must be a State certified food handler. The valid certificate number of such Members must be on record at each Collective 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. 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 Medicinal 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 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. This Section shall apply only to Collectives 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 Authority of City Manager A. The City Manager or his or her designee shall have authority to determine the nature of any Cannabis Business or purported Cannabis Business and whether that entity complies with any of the requirements of this Chapter, Chapters and 12.26, and Title 23, and to conduct inspections as provided in Chapter B. The City Manager or his or her designee 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 Cannabis. 48 of 150

49 ATTACHMENT VII.A.1.d Page 19 of 19 C. The City Manager or his or her designee may require any Cannabis Business to obtain operating permits from the City of Berkeley Fire Department, Toxics Management Division, Environmental Health Division, or any other department or division. D. 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, Chapters and 12.26, and Title 23, and to adopt regulations to implement this Chapter, Chapters and 12.26, and Title 23. E. The City Manager or his or her designee may promulgate regulations for the selection of Retailers, Cultivators, and other Cannabis Businesses that require a selection process 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 Reserved 49 of 150

50 Sections: ATTACHMENT VII.A.1.e Page 1 of 4 Chapter 20.40XX CANNABIS BUSINESS SIGNS AND CANNABIS PRODUCT ADVERTISING Purpose Definitions Cannabis product advertising prohibited Exceptions Violations deemed a public nuisance Enforcement Reinspection fee Exemptions Joint and several liability Severability Permitted signs Number of signs permitted on premises Sign area limitations Purpose. The purposes of this chapter are to: A. primary purpose of this chapter is Tto promote the general welfare and reduce illegal purchase and A.B. consumption of cannabis or cannabis products by persons under the age of 21, which is accomplished by limiting the exposure of persons under the age of 21 to cannabis product advertising; and To provide design criteria and development standards to be used in the review of applications for cannabis business signage to ensure that the cannabis businesses are compatible with the other land uses in the City Definitions. Cannabis and Cannabis Products shall have the same meaning as set forth in Berkeley Municipal Code Section "Cannabis product advertising" means any billboard, sign, poster, placard, device, graphic display, or other item which promotes or is designed to promote the sale, use or consumption of a particular brand of cannabis or cannabis products, but shall not mean any advertising on the packaging of the product itself. "Owner or operator" includes the owner of the property at which the advertising subject to this chapter is located, the owner of any billboard or other structure on which cannabis product advertising is located, as well as the operator of any commercial or other establishment at that location. "Person" means any individual, firm corporation, partnership, cooperative association, receiver, trustee, assignee public or private entity, or other legal entity. 50 of 150

51 ATTACHMENT VII.A.1.e "Publicly visible location" means any outdoor Page location 2 of and 4 any window of a commercial CANNABIS establishment COMMISSION that is visible to the public from any street sidewalk, or other public thoroughfare. This shall not be construed to include the inside of any commercial establishment, with the exception of its windows Cannabis product advertising prohibited. No person shall place or maintain, or cause or allow to be placed or maintained any cannabis product advertising in any publicly visible location Exceptions. This chapter shall not apply to cannabis product advertising which is: A. Inside any commercial establishment, except that no cannabis product advertising may be placed in a publicly visible location inside any commercial establishment. B. On commercial vehicles used for transporting cannabis products Violations deemed a public nuisance. Any violation of the provisions of this chapter is declared to be a public nuisance. The procedures for the abatement of such nuisances shall be governed by Berkeley Municipal Code Chapter 1.24 as may hereafter be amended Enforcement. A. Infraction. Any person violating any provision or failing to comply with any requirement of this chapter shall be deemed guilty of an infraction as set forth in Chapter 1.20 of this code. 1. Each separate display of cannabis product advertising in violation of this chapter is deemed to be a separate offense. 2. Each day an item of cannabis product advertising remains in violation of this chapter is deemed to be a separate offense. B. Civil Action. In addition to any other remedy provided by this chapter, any violation of this chapter may be enforced by a civil action brought by the City or any other interested person. The City or any other interested person may seek and the court shall grant as appropriate: 1. Injunctive relief, both temporary and permanent; 2. Reasonable attorney fees and costs of suit. C. Remedies Not Exclusive. Nothing in this chapter shall preclude the City from seeking any other remedy provided by law Reinspection fee. The City Council may adopt a resolution establishing a fee which must be paid by the owner or operator of a specified location whenever the City Manager, or his or her designee, determines upon reinspection that a person has failed to comply with any orders, notices or directions issued by the City under this chapter. 51 of 150

52 ATTACHMENT VII.A.1.e Exemptions. Page 3 of 4 This chapter shall apply to all existing cannabis product advertising in violation of this chapter unless the owners or operators of the location at which such advertising is located provide written documentation to the City Manager, or his or her designee, within thirty days from the effective date of the ordinance codified in this chapter that this chapter unreasonably interferes with any contracts executed before the date of adoption of said ordinance. A. Failure to provide such timely, written documentation shall be deemed a waiver of the right to seek an exemption. B. The City Manager is authorized to grant an exemption from enforcement of this chapter for up to 6 months from the date of adoption. The decision of the City Manager with respect to such exemption is final.) Joint and several liability. The advertiser, the property owner and any operator of any location at which prohibited cannabis product advertising exists shall be jointly and severally liable for violations of this chapter 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 Permitted signs. A. Retailers that have a storefront and allow customer visits are allowed on-premises signs as set forth in BMC Chapter B. Delivery-only Retailers are allowed business complex signs as set forth in BMC Section C. Non-retailers are allowed on-premises signs as set forth in BMC Chapter Number of signs permitted on premises. A. The number of on-premises signs for Cannabis Retailers are limited to BMC Section B. The number of on-premises signs for Cannabis non-retailers are limited to BMC Section Sign area limitations. A. The sign area for all signs of Retailers that have a storefront shall not exceed seven and a half (7.5) percent of the building face of the premises or seventy-five (75) square feet, whichever is less. B. The sign area for all signs of Delivery only Retailers are subject to BMC Section of 150

53 ATTACHMENT VII.A.1.e Page 4 of 4 C. The sign area for all signs of non-retailers shall not exceed twelve (12) square feet. D. Signage may not include depictions of cannabis or cannabis products. Logos with such depictions are also prohibited on signs. 53 of 150

54 1 of 29 ATTACHMENT VII.A.1.f Chapter will be deleted. Many of the Sections/Subsections will be modified and divided between and See comments to determine the new location of information contained within Sections/Subsections. Chapter MEDICAL CANNABIS GENERAL REGULATIONS Sections: Purpose and Applicability Definitions Operating Standards--Membership--Eligibility Authority of City Manager Abatement of violations Severability 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 NS 1 (part), 2017) 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 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 Commented [SS1]: See Commented [SS2]: See Commented [SS3]: See E Commented [SS4]: See F 54 of 150

55 2 of 29 ATTACHMENT VII.A.1.f 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: 1. "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. 2. "THCA" or "Δ9-THCA" means the acid form of THC. 3. "CBD" or "Cannabidiol" means 2-[(1R,6R)-6-isopropenyl-3-methylcyclohex-2-en- 1-yl]-5-pentylbenzene-1,3- diol. 4. "CBDA" or "Cannabidiolic acid" means the acid form of CBD. 5. "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 et. seq.) or the California Sherman Food and Drug and Cosmetic Act (Health & Safety Code 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 Medical cannabis collectives Commented [SS5]: See I Commented [SS6]: See N Commented [SS7]: See O Commented [SS8]: See W 55 of 150

56 3 of 29 ATTACHMENT VII.A.1.f 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 K. Dispensary. 1. "Dispensary" means both Retail Dispensaries and Delivery-Only Dispensaries. 2. "Retail Dispensary" shall mean an organization that is authorized under Chapter 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 "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.K. "Medical Cannabis Cultivation Business" or "Cultivation Business" means a Medical Cannabis Organization whose primary activity is Cultivation. N.L. "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 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 Commented [SS9]: See M Commented [SS10]: See DD Retailer Commented [SS11]: See J 56 of 150

57 4 of 29 ATTACHMENT VII.A.1.f costs, regulatory compliance costs, debt service, and reserves. Q.M. "Primary caregiver" shall have the same meaning as provided in California Health and Safety Code Section R.N. "Principal" means any person that has direct or non-delegated indirect authority over the management or policies of an MCO. S.O. "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 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.P. "Solvent" means any substance in which another substance is dissolved, forming a solution. U.Q. "Tincture" means an extract of Cannabis or solution of such, typically made with alcohol. V.R. "Qualified patient" shall have the same meaning as provided in California Health and Safety Code Section (Ord NS 1 (part), 2017) Operating Standards--Membership--Eligibility A. MCOs shall comply with Health and Safety Code Sections 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, and 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, and are more restrictive than state law, they shall apply. To the extent the requirements of this Chapter and Chapters 12.26, and 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 Commented [SS12]: See Z Commented [SS13]: See AA Commented [SS14]: See BB Commented [SS15]: See FF Commented [SS16]: See CC Commented [SS17]: See Commented [SS18]: See B 57 of 150

58 5 of 29 ATTACHMENT VII.A.1.f use or in any manner not permitted by this Chapter, Chapter 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 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; 2. within the preceding 10 years, any serious or violent felony listed in Penal Code Section (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 or Articles 1, 3, 5. within the preceding 5 years any felony violation of Health and Safety Code Section 11358, Section or Section 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, 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 NS 1 (part), 2017) 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, or 12.25, and to conduct inspections as provided in Chapter B. The City Manager or his or her designee may issue regulations to implement this Chapter and Chapters 12.26,12.27 and 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 Commented [SS19]: See of 150

59 6 of 29 ATTACHMENT VII.A.1.f or Chapters 12.26, or (Ord NS 1 (part), 2017) Abatement of violations A. Violations of this Chapter or Chapters 12.26, or shall constitute a public nuisance under Chapter 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, or shall not be punishable as public offenses to the extent that doing so would conflict with state law. (Ord NS 1 (part), 2017) 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 NS 1 (part), 2017) Commented [SS20]: See Commented [SS21]: See of 150

60 7 of 29 ATTACHMENT VII.A.1.f 1 Chapter will be deleted. Many of the Sections/Subsections will be modified and divided between and See comments to determine the new location of information contained within Sections/Subsections. 2 3 Chapter MEDICAL CANNABIS CULTIVATION Sections: Article I General Applicability Reserved Article II Medical Cannabis Cultivation Businesses and Facilities Eligibility requirements Information requirements Operating Standards Signage Product Safety, Quality Assurance and Labeling Energy use Records Ranking and allocation procedure and criteria Confidentiality of information Article III Enforcement Authority of City Manager Abatement of violations Fees Severability Severability Applicability This Chapter applies to Medical Cannabis Cultivation. (Ord NS 1 (part), 2017) Reserved (Ord NS 1 (part), 2017) Eligibility requirements A. No Principal of any Cultivation Business may be a Principal for any other Cultivation Business in Berkeley. (Ord NS 1 (part), 2017) Commented [GE1]: See A 60 of 150

61 8 of 29 ATTACHMENT VII.A.1.f Information requirements Every Cultivation Business shall provide the following information to the City, and shall update it annually and 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 NS 1 (part), 2017) 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. 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. Commented [GE2]: See Commented [GE3]: See H.2 Commented [GE4]: See E and B Commented [GE5]: See C Commented [GE6]: See D Commented [GE7]: See F 61 of 150

62 9 of 29 ATTACHMENT VII.A.1.f 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 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. 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 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, Commented [GE8]: See G 62 of 150

63 10 of 29 ATTACHMENT VII.A.1.f including telephone number and 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 NS 1 (part), 2017) Signage No signage is required. Signage is discouraged. (Ord NS 1 (part), 2017) 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 THC CBDA CBD CBN THCA 1 High-performance liquid chromatography 2 Gas chromatography HPLC 1, or GC 2 with derivatization, or other methodology approved by a state or the federal government as meeting a limit of quantitation of 0.1% by weight Commented [GE9]: See H Commented [GE10]: Prohibited by State law except by Retailers Commented [GE11]: Commented [GE12]: See D Commented [GE13]: See I Commented [GE14]: These testing requirements will only apply to Residential Collectives. Commented [GE15]: See A 63 of 150

64 11 of 29 ATTACHMENT VII.A.1.f 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) Capsules/pills Oils, butters, tinctures (for internal consumption) Topicals (external application) % by weight and mg/g mg/capsule weight/volume mg/g 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. Permissible Contaminant Testing methodology amount EPA-controlled pesticides commonly used in cannabis cultivation Microbiological contaminants Residual flammable solvents (concentrates only) 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-MS 1, Elisa 2 Any methodology approved by any U.S. or recognized international standards organization Head space analysis 100 ppb (total of all quantitated pesticides) 3 APC 4 < 100,000 CFUs5 Yeast/Mold = APC<10,000 CFUs Coliform 1,000 CFUs Pseudomonas 1,000 CFUs 6 Salmonella = 0 CFU E. coli = 0 CFU 400 ppm (total of all solvents) 7 Commented [GE16]: See B Commented [GE17]: See C 64 of 150

65 12 of 29 ATTACHMENT VII.A.1.f Permissible Contaminant Testing methodology amount 1 Gas chromatography-mass spectrometry 2 Enzyme-linked immunosorbent assay 3 Parts per billion 4 Aerobic plate count 5 Colony-forming unit 6 This limit shall apply as of July 1, 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; 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 NS 1 (part), 2017) 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. Commented [GE18]: See D and E Commented [GE19]: See F Commented [GE20]: See F Commented [GE21]: See C Commented [GE22]: See D 65 of 150

66 13 of 29 ATTACHMENT VII.A.1.f 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: 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 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 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 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 NS 1, 2017: Ord NS 1 (part), 2017) 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 Commented [GE23]: See A 66 of 150

67 14 of 29 ATTACHMENT VII.A.1.f the control of the Cultivation Business within the City of Berkeley, and shall be subject to inspection by the City upon reasonable notice 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 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 A that would cause him or her to be ineligible to be a Principal or employee. (Ord NS 1 (part), 2017) 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 NS 1 (part), 2017) 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 Commented [GE24]: See D (collectives only) Commented [GE25]: See B and B Commented [GE26]: See H.6.d only applies to M-Retailers in relation to very low income Patients. Commented [GE27]: See C Commented [GE28]: See Commented [GE29]: See of 150

68 15 of 29 ATTACHMENT VII.A.1.f 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 shall be deemed to be "financial information" covered by Chapter B. The information required by Section 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 NS 1 (part), 2017) 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 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 NS 1 (part), 2017) Abatement of violations A. Violations of this Chapter shall constitute a public nuisance under Chapter 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 shall not be punishable as public offenses to the extent that doing so would conflict with state law. (Ord NS 1 (part), 2017) 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 NS 1 (part), 2017) Commented [GE30]: See and Commented [GE31]: See Commented [GE32]: See and of 150

69 16 of 29 ATTACHMENT VII.A.1.f 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 NS 1 (part), 2017) Severability Chapter 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 NS 1 (part), 2017) Commented [GE33]: See and of 150

70 17 of 29 ATTACHMENT VII.A.1.f Chapter will be deleted. Many of the Sections/Subsections will be modified and divided between and See comments to determine the new location of information contained within Sections/Subsections. Chapter MEDICAL CANNABIS DISPENSARIES AND COLLECTIVES Sections: Article I General Applicability Reserved Article II Dispensaries Eligibility requirements Information requirements Operating Standards Signage Product Safety, Quality Assurance and Labeling Medical cannabis for low income Members Records Ranking and allocation procedure and criteria Confidentiality of information Article III Collectives Limitations on Collective operations Operating standards for all Collectives Article IV Enforcement Fees Authority of City Manager Severability Reserved Reserved Applicability A. This Chapter applies to dispensaries and Collectives as defined in Chapter B. The three existing Retail Dispensaries permitted as of January 1, 2012, under Berkeley Municipal Code section 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 Any such Retail Dspensary that does not substantially comply with this ordinance by that date shall cease operation, but may apply to operate under Berkeley 70 of 150

71 18 of 29 ATTACHMENT VII.A.1.f Municipal Code section on the same basis as any other applicant. (Ord NS 1, 2017: Ord NS 1 (part), 2014) Reserved (Ord NS 2, 2017: Ord NS 1 (part), 2014) Eligibility requirements A. No Principal of any Dispensary may be a Principal for any other Dispensary in Berkeley. (Ord NS 3, 2017: Ord NS 1 (part), 2014) 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 NS 1 (part), 2014) 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 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; Commented [GE1]: See A Commented [GE2]: See Commented [GE3]: See A only applies to collectives Commented [GE4]: See H.2 Commented [GE5]: See E.3 71 of 150

72 19 of 29 ATTACHMENT VII.A.1.f 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 or , 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. 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. Commented [GE6]: See E and B Commented [GE7]: See H.1 Commented [GE8]: See H.3 and C Commented [GE9]: See also D Commented [GE10]: For 2 a, b, c, 3 and 4, see C Commented [GE11]: See H.2 Commented [GE12]: See E.3 Commented [GE13]: See D Commented [GE14]: See H.5 Commented [GE15]: See F 72 of 150

73 20 of 29 ATTACHMENT VII.A.1.f 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 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 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 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 address. Dispensaries shall also provide the Police Department with the current name and phone Commented [GE16]: See G 73 of 150

74 21 of 29 ATTACHMENT VII.A.1.f 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, 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 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 NS 4, 2017: Ord NS 1 (part), 2014) 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: Commented [GE17]: See B Commented [GE18]: See H Commented [GE19]: See F.1 and 2 Commented [GE20]: See D Commented [GE21]: See E.4 74 of 150

75 22 of 29 ATTACHMENT VII.A.1.f 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. The required text shall be of sufficient size to be easily read from a distance of five feet. (Ord NS 5, 2017: Ord NS 1 (part), 2014) 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 THC CBDA CBD CBN 1 High-performance liquid chromatography 2 Gas chromatography HPLC 1, or GC 2 with derivatization or other methodology approved by a state or the federal government as meeting a limit of quantitation of 0.1% by weight 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) Edibles (other than beverages) Capsules/pills Oils, butters, tinctures (for internal consumption) % by weight and mg/g mg/package or mg/serving if applicable; nutritional and allergen information as required by the CDPH for cottage foods mg/capsule weight/volume mg/g Commented [GE22]: See E.5 Commented [GE23]: See E.3 Commented [GE24]: These testing requirements will only apply to Residential Collectives Commented [GE25]: See A Commented [GE26]: See B 75 of 150

76 23 of 29 ATTACHMENT VII.A.1.f Product type Topicals (external application) Beverages Label information mg/g or mg/ml, as applicable mg/container and mg/serving, if applicable; nutritional and allergen information as required by the CDPH for cottage foods. 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. Testing Contaminant Permissible amount methodology EPA-controlled pesticides commonly used in cannabis cultivation Microbiological contaminants Residual flammable solvents (concentrates only) 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 Any methodology approved by any U.S. or recognized international standards organizations 100 ppb (total of all quantitated pesticides)3 APC4 < 100,000 CFUs 5 Yeast/Mold = APC<10,000 CFUs Coliform 1,000 CFUs Pseudomonas 1,000 CFUs 6 Salmonella = 0 CFU E. coli = 0 CFU Head space analysis 400 ppm (total of all solvents) 7 1 Gas chromatography-mass spectrometry 2 Enzyme-linked immunosorbent assay 3 Parts per billion 4 Aerobic plate count 5 Colony-forming unit 6 This limit shall apply as of July 1, 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 products are still subject to testing for potency, as required for the Commented [GE27]: See C 76 of 150

77 24 of 29 ATTACHMENT VII.A.1.f label information in Section 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 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 Commented [GE28]: See D Commented [GE29]: See D and E Commented [GE30]: See F Commented [GE31]: See F Commented [GE32]: See G. These will only apply to Collectives with over 25 members 77 of 150

78 25 of 29 ATTACHMENT VII.A.1.f 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 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 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 NS 6, 2017: Ord NS 1 (part), 2014) 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 Commented [GE33]: See G and E Commented [GE34]: See C Commented [GE35]: See H.6 78 of 150

79 26 of 29 ATTACHMENT VII.A.1.f 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 NS 7, 2017: Ord NS 1 (part), 2014) 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 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 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. Commented [GE36]: See A Commented [GE37]: See D (collectives only) Commented [GE38]: See B and B Commented [GE39]: See H.6.d only applies to M-Retailers in relation to very-low income Patients Commented [GE40]: See C 79 of 150

80 27 of 29 ATTACHMENT VII.A.1.f E. Convictions. Dispensaries shall immediately report any conviction of a person subject to Section A that would cause him or her to be ineligible to have a position other than that of Member. (Ord NS 1 (part), 2014) Ranking and allocation procedure and criteria The Council may by resolution establish procedures and criteria for accepting applications to operate Dispensaries and determining which, if any, to approve. (Ord NS 1 (part), 2014) 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 shall be deemed to be "financial information" covered by Chapter B. The information required by Section 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 NS 1 (part), 2014) 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. Commented [GE41]: See Commented [GE42]: See Commented [GE43]: See A-J 80 of 150

81 28 of 29 ATTACHMENT VII.A.1.f 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. 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 NS 1 (part), 2014) Operating standards for all Collectives Collectives shall comply with the following provisions of this Chapter. A. Section , subdivisions A, B and C. B. Section subdivisions A-F. Subsection C shall only apply to collectives with 25 or more members. C. Section , subdivisions B and D. Subsection B.2 shall only apply to collectives with 25 or more members. D. Section , 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 NS 1 (part), 2014) 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 NS 8, 2017: Ord NS 1 (part), Formerly ) 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 Medical Cannabis. (Ord NS 9, 2017: Ord NS 1 (part), 2014) 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 Commented [GE44]: See A-C Commented [GE45]: See A-F Commented [GE46]: See D and E Commented [GE47]: See F Commented [GE48]: See G Commented [GE49]: See and Commented [GE50]: See B and B Commented [GE51]: See and of 150

82 29 of 29 ATTACHMENT VII.A.1.f 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 NS 10, 2017: Ord NS 1 (part), Formerly ) Reserved (Ord NS 11, 2017: Ord NS 1 (part), 2014) Reserved (Ord NS 12, 2017: Ord NS 1 (part), 2014) 82 of 150

83 Page 1 of 29 Chapter 23C.25 CANNABIS USES ATTACHMENT VII.A.1.g Sections: 23C Retail Uses 23C Cultivation 23C Manufacturing, Testing and Distribution Section 23C Retailer A. Retailer is defined in Section B. Retailers may not be located within 600 feet of another Retailer or a public or private elementary, middle or high school. C. Expansion of an approved Retailer shall follow the conversion regulations for the Zoning District in which it is located and shall comply with subdivision (B) of this Section. D. An M-Retailer 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 or subdivision (B) 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, E. No changes in ownership or approved location shall be approved until such time as the City Council established procedures and criteria to allow such changes. F. Medicinal Cannabis Retailers 1. Six XX Medicinal Cannabis Retailers as defined in Section 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. G. Adult Use Retailers 1. Twelve XX Adult Use Retailers as defined in Section shall be permitted as of right with a Zoning Certificate in C-prefixed zones if they comply with the regulations in BMC Chapter 12.XX, parking requirements applicable to the 83 of 150

84 uses they include, and any security requirements promulgated by the Chief of Police. H. Delivery-only Retailers Page 2 of 29 ATTACHMENT VII.A.1.g 1. ALTERNATIVE A: RECOMMENDATION - In addition to the six existing Medicinal Cannabis Retailers, under Berkeley Municipal Code Section and any A-Retailers Dispensaries selected under Section , an unlimited number of Delivery-only Retailers shall be permitted, on a first-come-first-served basis. OR 1. ALTERNATIVE B: STAFF RECOMMENDATION - In addition to the six existing M-Retailers under Section and any A-Retailers selected under Section , ten (10) XX Delivery-only Retailers shall be permitted, subject to a Council-approved selection process. 2. ALTERNATIVE A: PLANNING COMMISSION RECOMMENDATION Delivery-only Retailers as defined in Section shall be allowed subject to issuance of an (Administrative Use Permit or Use Permit) in all C-prefixed zones except Commercial Neighborhood (C-N). Delivery-only Retailers must comply with the regulations in Chapters and and Title 23, comply with the parking requirements applicable to retail uses, and any security requirements promulgated by the Chief of Police. 2. ALTERNATIVE B: STAFF RECOMMENDATION Delivery-only Retailers as defined in Section shall be allowed in all C-prefixed zones. Delivery-only businesses are permitted only on second floors prohibited on the ground floor adjacent to street frontage. Delivery-only Retailers must comply with the regulations in Chapters and and Title 23, comply with the parking requirements applicable to retail uses, and any security requirements promulgated by the Chief of Police. 3. Delivery-Only Retailers may locate in all M-prefixed zones only as an ancillary use to another type of Cannabis Business. I. No new Retailer may be approved under this Section until the City Council adopts a licensing process and standards for Retailers. Such standards may include, but shall not be limited to, whether proposed dispensaries will provide a percentage of all useable 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. 84 of 150

85 Section 23C Page 3 of 29 Cannabis Cultivation ATTACHMENT VII.A.1.g A. Notwithstanding anything to the contrary in this Chapter, cultivation of cannabis as defined in Chapters and and MAUCRSA, shall be permitted as a matter of right with a Zoning Certificate in all M-prefixed zones the M District, subject to the following limitations: 1. Such locations shall be limited to licensed Cannabis Businesses. 2. Cannabis may not be dispensed, and client, patient or member services or retail sales are prohibited, at such locations. 3. No single location used for cultivation and associated uses by a licensee may exceed 22,000 square feet of total canopy area, except that separate spaces used by different licensees may be aggregated on the same location. 4. Up to six Major Cannabis Cultivation Facilities between the size of 10,000 sf and 22,000 sf in total canopy area are permitted. 5. There is no numeric limit for Cannabis Cultivation Facilities under 10,000 sf in total canopy area. These uses are limited by the total area permitted for cannabis cultivation set forth in subsection 23C A.7 minus the area available for Major Cannabis Cultivation Facilities. 6. Outdoor commercial cultivation is prohibited. 7. The total canopy area used for cannabis cultivation shall not exceed 180,000 square feet. (23E A) B. Cannabis nurseries, as defined in Chapter are considered Cannabis Cultivation uses and are subject to the same regulations as Cultivators. C. Such locations shall comply with all regulations in Chapter 12.XX, security regulations promulgated by the Chief of Police, and the requirements of this Chapter, and shall not be located within 300 feet of a private or public elementary, middle or high school. Such locations may include testing, processing, manufacturing and food preparation only to the extent expressly permitted by MAUCRSA. D. No Cannabis uses may be approved under this Section until the City Council adopts a licensing process and standards for such uses. Such standards shall include a requirement that indoor cultivation uses provide for an energy offset through a program specified by the City to offset the net increased energy that is used by the Facility as compared to a regular industrial facility, 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, 85 of 150

86 Page 4 of 29 ATTACHMENT VII.A.1.g ownership and practices ensure equity and accountability, low prices and an adequate supply of high quality cannabis to Customers. Section 23C Cannabis Manufacturing, Testing Labs and Distribution A. Uses such as, but not limited to, testing, processing, and food preparation, that involve cannabis as defined in Chapter 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 cannabis. B. Manufacturers, Testing Labs, Research and Development and Distribution businesses which are licensed as Cannabis Businesses by the State may not be located within 300 feet of a public or private elementary, middle or high school. C. For the purposes of this Chapter, the following Cannabis uses shall be evaluated and regulated for Zoning purposes in the same way as the existing non-cannabis uses, with the exception of distance buffers from schools: Cannabis Use Manufacturing, processing, food preparation Testing labs Research and Development Distribution Non-Cannabis Use Light Manufacturing Testing labs Research and Development Wholesale Uses 86 of 150

87 Page 5 of 29 Changes to Definitions (Chapter 23F ) ATTACHMENT VII.A.1.g Cannabis Uses: Cannabis uses include retail sales, cultivation, manufacturing, testing, and distributing. See BMC Chapters and for cannabis regulations and Section 23C.24 for land use regulations. Light Manufacturing: Primarily involved in baking, brewing, fabricating, milling, processing and other similar forms of mechanical and chemical treatment. Light manufacturing uses are generally in the following groups in the North American Industrial Classification System (NAICS): Light Manufacturing Uses NAICS Code Apparel and Other Textile Mill Products Electronic and Electric Equipment, except semiconductors , , , , , , Fabricated Metal Products Food Processing Furniture and Fixtures Industrial Machinery and Equipment Instruments and Related Products Leather and Leather Products, except leather tanning Lumber and Wood Products, except logging Miscellaneous Manufacturing Paper and Allied Products, except paper, pulp and paperboard mills Perfumes, Cosmetics and Toilet Preparations Printing and Publishing, except publishing without printing Rubber and Miscellaneous Plastic Products Stone, Clay and Glass Products, except cement , Textile Mill Products Transportation Equipment of 150

88 Light Manufacturing Uses Cannabis Manufacturing Page 6 of 29 ATTACHMENT VII.A.1.g NAICS Code Retail Products Store: An establishment engaged in the sales of personal, consumer or household items to the customers who will use such items, including, but not limited to: Retail Products Stores Antique Stores Comments Includes Collectibles Art/Craft Shops Art Galleries Art and Craft Supply Stores Audio/Video Records, Tapes, Disks Sales Shops Automobile Parts Stores Bicycle Shops Excludes video rental stores Excludes service of auto parts Includes sales, parts and repair/service Bookstores, Periodical Stands Clothing Stores Computer Stores Drugstores Includes apparel, hats, shoes and accessories Hardware and software Includes pharmaceutical, sundries, cosmetic/personal care items Fabric, Textile and Sewing Supply Shops Flower and Plant Stores Food Products Stores, Specialized Food Products Stores, General Furniture Stores, Household or Office Garden Supply Stores, Nurseries Includes live, fresh-cut and/or dried flowers; excludes nurseries Includes Bakeries Includes groceries, markets and supermarkets Includes carpets and rugs Does not include Cannabis Nurseries, see Cannabis Cultivation definition in Gift/Novelty Shops 88 of 150

89 Retail Products Stores Glass Pane and Mirror Stores Hobby Shops Page 7 of 29 Comments ATTACHMENT VII.A.1.g Household Hardware and Housewares Stores Household Electronics/Electrical Stores (Audio, Telephone and Video/TV) Excludes video rental stores Jewelry/Watch Shops Linen Shops Includes bedding Musical Instruments and Materials Stores Office Supply Stores Paint/Wallpaper Stores Photography Equipment Supply Stores Secondhand Stores Includes cameras and film developing Includes used/vintage clothing and household goods Small Appliance Stores Sporting Goods Stores Includes equipment, clothing and supplies, excluding Firearm/Munitions Businesses Stationery, Cards and Paper Goods Stores Toy Stores Variety Stores 89 of 150

90 Changes to Commercial District and Manufacturing District Use Tables (multiple chapters) Table 23E C-1 General Commercial District Provisions: Uses Permitted Use Retail Sales All Retail Sales Uses, except those listed below Alcoholic Beverage Retail Sales including Liquor Stores and Wine Shops Department Stores Classification Special Requirements (if any) ZC* UP(PH) ZC* As defined in Sub-title F, except otherwise listed (does not include Video Rental Stores) Includes sale for off-site consumption at restaurants Prohibited within the University Avenue Strategic Plan Overlay (unless in conjunction with a restaurant or general food product store) Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops, including Auction Houses Pet Stores, including Sales and Grooming of Animals (but not Boarding) Page 8 of 29 UP(PH) UP(PH) ATTACHMENT VII.A.1.g Prohibited within the University Avenue Strategic Plan Overlay Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process Medicinal-Use Cannabis Retailer ZC Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process Delivery-only Cannabis Retailer (Adult-use and Medicinal-use) Subject to the requirements of Section 23C.24 and BMC Chapters and ZC, AUP or UP ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and of 150

91 Page 9 of 29 ATTACHMENT VII.A.1.g Miscellaneous Uses Automatic Teller Machines UP(PH) When not a part of a Retail Financial Service Cafeteria, Employee or Residential Cemeteries, Crematories, Mausoleums UP(PH) Prohibited Columbaria AUP Allowed with a ZC if incidental to a Community and Institutional Use, limited to 400 niches, no more than 5% of the subject property area, and located within the main building Circus or Carnival UP(PH) Commercial Excavation UP(PH) Including earth, gravel, minerals, or other building materials including drilling for, or removal of, oil or natural gas Dry Cleaning and Laundry Plants UP(PH) Emergency Shelter See Chapter 23C.10. Up to 25 beds More than 25 beds Kennels or Pet Boarding Laboratories, Testing (including Cannabis Testing) Mortuaries ZC UP(PH) Prohibited AUP** UP(PH) Public Utility Substations, Tanks UP(PH) Radio, Television, or Audio/Sound Recording and/or Broadcast Studios UP(PH) 91 of 150

92 Warehouses or Storage including Mini-storage Warehouses ATTACHMENT VII.A.1.g Page 10 of 29 UP(PH) Prohibited within the University February Avenue 22, 2018 Strategic Plan Overlay Wireless Telecommunications Facilities Microcell Facilities, Modifications to Existing Sites, and Additions to Existing Sites When the Site Is Not Adjacent to a Residential District All Other Telecommunication Facilities AUP UP(PH) Subject to the requirements of Section 23C Subject to the requirements and findings of Section 23C Table 23E C-N Neighborhood Commercial District Provisions: Uses Permitted Use Classification Special Requirements (if any) Retail Sales All Retail Sales Uses, except those listed below Alcoholic Beverage Retail Sales including liquor stores and wine shops Department Stores Over 3,000 s.f. ZC* UP(PH) AUP Prohibited As defined in Sub-title F, except otherwise listed. (Does not include Video Rental Stores) Includes sale for off-site consumption at restaurants Drugstores ZC* A new or expanded Drugstore is prohibited if it is over 5000 square feet in Gross Floor Area, and within 1000 feet of any property containing an existing Drugstore, as measured by a straight line from the nearest point of the property line of the parcel on which the Drugstore is proposed to the nearest point of the property line of the parcel on which the nearest Drugstore is located. Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use 92 of 150

93 Use Pawn Shops, including Auction Houses Pet Stores, including Sales and Grooming of Animals (but not Boarding) ATTACHMENT VII.A.1.g Page 11 of 29 Classification Special Requirements (if any) Prohibited UP(PH) Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and Medicinal-Use Cannabis Retailer Delivery-only Cannabis Retailer (Adult-use and Medicinal-use) ZC Prohibited OR ZC ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and Table 23E C-E Elmwood Commercial District Provisions: Uses Permitted Use Retail Sales All Retail Sales Uses, except those listed below Alcoholic Beverage Retail Sales, including liquor stores and wine shops Department Stores Over 3,000 s.f. Classification Special Requirements (if any) ZC* UP(PH) ZC* Prohibited As defined in Sub-title F, except otherwise listed (does not include Video Rental Stores). Includes sale for off-site consumption at restaurants Drugstores ZC* A new or expanded Drugstore is prohibited if it is over 5000 square feet in 93 of 150

94 Use ATTACHMENT VII.A.1.g Page 12 of 29 Classification Special Requirements (if any) Gross Floor Area, and within 1000 feet of any property containing an existing Drugstore, as measured by a straight line from the nearest point of the property line of the parcel on which the Drugstore is proposed to the nearest point of the property line of the parcel on which the nearest Drugstore is located. Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops, including Auction Houses Pet Stores, including Sales and Grooming of Animals Prohibited UP(PH) Does not include boarding of animals Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process Medicinal-Use Cannabis Retailer ZC Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process Delivery-only Cannabis Retailer (Adult-use and Medicinal-use) Subject to the requirements of Section 23C.24 and BMC Chapters and ZC, AUP or UP ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and Table 23E C-NS North Shattuck Commercial District Provisions: Uses Permitted Use Retail Sales All Retail Sales Uses, except those listed below Classification Special Requirements (if any) ZC* As defined in Sub-title F, except otherwise listed (does not include Video Rental Stores). 94 of 150

95 Use Alcoholic Beverage Retail Sales, including liquor stores and wine shops Department Stores Over 3,000 s.f. ATTACHMENT VII.A.1.g Page 13 of 29 Classification Special Requirements (if any) UP(PH) Includes sale for off-site consumption at restaurants ZC* Prohibited Drugstores ZC* A new or expanded Drugstore is prohibited if it is over 5000 square feet in Gross Floor Area, and within 1000 feet of any property containing an existing Drugstore, as measured by a straight line from the nearest point of the property line of the parcel on which the Drugstore is proposed to the nearest point of the property line of the parcel on which the nearest Drugstore is located. Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops, including Auction Houses Pet Stores, including Sales and Grooming of Animals (but not Boarding) Prohibited UP(PH) Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process Medicinal-Use Cannabis Retailer ZC Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process Delivery-only Cannabis Retailer (Adult-use and Medicinal-use) Subject to the requirements of Section 23C.24 and BMC Chapters and ZC, AUP or UP ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and of 150

96 Page 14 of 29 ATTACHMENT VII.A.1.g Table 23E C-SA South Area Commercial District Provisions: Uses Permitted Use Retail Sales All Retail Sales Uses, except those listed below Alcoholic Beverage Retail Sales, including liquor stores and wine shops Department Stores Over 3,000 s.f. Classification Special Requirements (if any) ZC* UP(PH) ZC* UP(PH) As defined in Sub-title F, except otherwise listed (does not include Video Rental Stores) Includes sale for off-site consumption at restaurants No sales of distilled alcoholic beverages are allowed along Adeline Street south of Ashby Avenue Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops Prohibited Including Auction Houses Pet Stores UP(PH) Including Sales and Grooming of Animals (but not Boarding) Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process Medicinal-Use Cannabis Retailer Delivery-only Cannabis Retailer (Adult-use and Medicinal-use) ZC ZC, AUP or UP(PH) Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and of 150

97 ATTACHMENT VII.A.1.g Page 15 of 29 Table 23E C-T Telegraph Avenue Commercial District Provisions: Uses Permitted Use Classification Special Requirements (if any) Retail Sales All Retail Sales Uses, except those listed below Alcoholic Beverage Retail Sales including liquor stores and wine shops Department Stores Over 3,000 s.f. Drug Paraphernalia (any use involving the sale or distribution thereof) ZC Prohibited ZC UP(PH) Prohibited As defined in Sub-title 23F, except otherwise listed (does not include Video Rental Stores) Includes sale for off-site consumption at restaurants As defined in California Health and Safety Code Section (d) Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops Prohibited Including Auction Houses Pet Stores UP(PH) Including Sales and Grooming of Animals (but not Boarding) Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process Medicinal-Use Cannabis Retailer Delivery-only Cannabis Retailer (Adult-use and Medicinal-use) ZC ZC, AUP or UP(PH) Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and Table 23E C-SO Solano Avenue Commercial District Provisions: Uses Permitted 97 of 150

98 Use Retail Sales All Retail Sales Uses, except those listed below Alcoholic Beverage Retail Sales, including liquor stores and wine shops Department Stores Over 3,000 s.f. ATTACHMENT VII.A.1.g Page 16 of 29 Classification Special Requirements (if any) ZC* UP(PH) ZC* Prohibited As defined in Sub-title F, except otherwise listed (does not include Video Rental Stores) Includes sale for off-site consumption at restaurants Drugstores ZC* A new or expanded Drugstore is prohibited if it is over 5000 square feet in Gross Floor Area, and within 1000 feet of any property containing an existing Drugstore, as measured by a straight line from the nearest point of the property line of the parcel on which the Drugstore is proposed to the nearest point of the property line of the parcel on which the nearest Drugstore is located. Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops Pet Stores including Sales and Grooming of Animals (but not Boarding) Prohibited UP(PH) Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process Medicinal-Use Cannabis Retailer Delivery-only Cannabis Retailer (Adult-use and Medicinal-use) ZC ZC, AUP or UP(PH) Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and of 150

99 Use ATTACHMENT VII.A.1.g Page 17 of 29 Classification Special Requirements (if any) Table 23E C-W West Berkeley Commercial District Provisions: Uses Permitted Use Retail Sales Permits Required to Establish, Expand or Change Use (sq. ft.) Retail uses as defined in Sub-title 23F, except otherwise listed. All Retail Sales Uses, except those specified below Alcoholic Beverage Retail Sales, including liquor stores and wine shops Under 3,500 3,500-7,500 7,500 or more ZC AUP UP(PH) ** UP(PH) Special Requirements (if any) **Except when part of a combination commercial/residential use; see Mixed Use Development heading Includes sale for off-site consumption at restaurants Firearm/Munitions Businesses UP(PH) Prohibited on any property devoted to residential use Pawn Shops, including Auction Houses UP(PH) Smoke Shops UP(PH) Prohibited if within 1,400 feet of a school or public park Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and Medicinal-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process Delivery-only Cannabis Retailer (Adult-use and Medicinal-use) ZC, AUP or UP(PH) Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process 99 of 150

100 Use Page 18 of 29 Permits Required to Establish, Expand or Change Use (sq. ft.) ATTACHMENT VII.A.1.g Special Requirements (if any) Subject to the requirements of Section 23C.24 and BMC Chapters and Miscellaneous Uses Automatic Teller Machines AUP When not part of a Retail Financial Service Cafeteria, Employee or Residential Cemeteries and Mausoleums AUP Prohibited Columbaria AUP Allowed with a ZC if incidental to a Community and Institutional Use, limited to 400 niches, no more than 5% of the subject property area, and located within the main building Circus or Carnival UP(PH) Prohibited in designated nodes. See Section 23E C Commercial Excavation Prohibited Including earth, gravel, minerals or other building materials including drilling for, or removal of, oil or natural gas Dry Cleaning and Laundry Plants Emergency Shelter Up to 25 beds More than 25 beds Prohibited ZC UP(PH) See Chapter 23C.10. Kennels or Pet Boarding UP(PH) Prohibited on ground floor in designated node Laboratories, Commercial Physical or Biological Laboratories, Testing (including Cannabis Testing) Mortuaries and Crematories Public Utility Substations, Buildings, Tanks Radio, Television, or Audio/Sound Recording and/or Broadcast Studios Prohibited AUP if less than 10,000 sq. ft. UP(PH) if more than 10,000 sq. ft. UP(PH) UP(PH) UP(PH) See Section 23E C Prohibited in designated node. See Section 23E C Prohibited on ground floor in designated node. See Section 23E C 100 of 150

101 Wireless Telecommunications Facilities Microcell Facilities, Modifications to Existing Sites, and Additions to Existing Sites When the Site Is Not Adjacent to a Residential District All Other Telecommunication Facilities AUP UP(PH) Light Manufacturing and Wholesale Trade Uses Subject to the requirements and findings of Section 23C Subject to the requirements and findings of Section 23C Manufacturing uses prohibited on ground floors in designated nodes. See Section 23E C Light Manufacturing and Wholesale Trade Uses (including Cannabis Distributors) 5,000 or less sq. ft. AUP 5,000 sq. ft. or more UP(PH) All Other Manufacturing Uses Warehouses or Storage (including Mini-storage Warehouses) Page 19 of 29 UP(PH) Prohibited ATTACHMENT VII.A.1.g Table 23E C-DMU Downtown Mixed Use Commercial District Provisions: Uses Permitted Retail Sales All Retail Sales Uses, except those listed below Use Classification Special Requirements Alcoholic Beverage Retail Sales, including liquor stores and wine shops Department Stores Under 10,000 s.f. Firearm/Munitions Businesses Pawn Shops, including Auction Houses Pet Stores, including Sales and Grooming of Animals (but not Boarding) Smoke Shops ZC UP(PH) AUP ZC Prohibited UP(PH) UP(PH) Prohibited As defined in Sub-title 23F, except otherwise listed Includes sale for off-site consumption at restaurants 101 of 150

102 ATTACHMENT VII.A.1.g Use Page 20 of 29 Classification Special Requirements Adult-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and Medicinal-Use Cannabis Retailer ZC ZC shall only be issued after business is approved through the selection process Delivery-only Cannabis Retailer (Adult-use and Medicinal-use) ZC, AUP or UP(PH) Subject to the requirements of Section 23C.24 and BMC Chapters and ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and Miscellaneous Uses Automatic Teller Machines When not a Part of a Retail Financial Service Exterior Interior Cafeteria, Employee or Residential Cemeteries, Crematories, Mausoleums UP(PH) AUP UP(PH) Prohibited Columbaria AUP Allowed with a ZC if incidental to a Community and Institutional Use, limited to 400 niches, no more than 5% of the subject property area, and located within the main building. Circus or Carnival Dry Cleaning and Laundry Plants Emergency Shelter Up to 60 beds More than 60 beds Kennels or Pet Boarding UP(PH) UP(PH) ZC UP(PH) Prohibited See Chapter 23C of 150

103 Laboratories, Testing (including Cannabis Testing) Mortuaries Public Utility Substations, Tanks Radio, Television or Audio/Sound Recording Studios Broadcast Studios Warehouses or Storage including Ministorage Warehouses Wireless Telecommunications Facilities Microcell Facilities, Modifications to Existing Sites, and Additions to Existing Sites When the Site Is Not Adjacent to a Residential District Page 21 of 29 AUP UP(PH) UP(PH) AUP UP(PH) UP(PH) AUP ATTACHMENT VII.A.1.g Subject to the requirements and findings of Section 23C All Other Telecommunication Facilities UP(PH) Subject to the requirements and findings of Section 23C Table 23E M Manufacturing District Provisions: Uses Permitted Uses Manufacturing and Wholesale Trade Construction Products Manufacturing Permits Required to Establish, Expand or Change Use (sq. ft.) Under 20,000 20,000 40,000 More than 40,000 ZC AUP UP(PH) Light Manufacturing ZC ZC UP(PH) Mini-storage Warehouses Pesticides, herbicides and fertilizers Petroleum refining and products Prohibited Prohibited Prohibited Pharmaceuticals AUP UP(PH) UP(PH) Primary Production Manufacturing Semiconductors Warehouses (other than Mini-storage) Warehouse-Based Non- Store Retailers AUP UP(PH) UP(PH) UP(PH) ZC AUP UP(PH) Special Requirements (if any) ZC AUP UP(PH) Allowed in Manufacturing, 103 of 150

104 Wholesale Trade Establishments (including Cannabis Distributors) Other Industrial Uses ZC AUP UP(PH) Art/Craft Studio ZC <10,000 AUP 10,000 20,000 Bus, cab, truck and public utility depots AUP UP UP(PH) >20,000 ATTACHMENT VII.A.1.g Wholesale Trade February or 22, 2018 Warehouse. See Section 23E A Workspaces only, no Live/Work permitted. Commercial Excavation UP(PH) Including earth, gravel, minerals, or other building materials, including drilling for, or removal of, oil or natural gas Contractors AUP UP Dry Cleaning and Laundry Plants Laboratories, Testing and Commercial Biological Research ZC AUP UP(PH) No retail service permitted Prohibited Media Production ZC <10,000 AUP 10,000 20,000 Recycled Materials Processing Repair Service (other than auto repair) Services to Buildings and Dwellings Page 22 of 29 UP(PH) >20,000 ZC* AUP UP * If all processing done indoors; if any outdoors, AUP ZC AUP UP No retail sales permitted AUP Cannabis Cultivation ZC ZC shall only be issued after business is approved through the selection process Subject to the requirements of Section 23C.24 and BMC Chapters and of 150

105 ATTACHMENT VII.A.1.g Page 23 of 29 Table 23E MM Mixed Manufacturing District Provisions: Uses Permitted Permits Required to Special Requirements Uses Establish, Expand or (if any) Change Use (sq. ft.) Manufacturing and Wholesale Trade Construction Products Manufacturing Under 20,000 20,000 40,000 More than 40,000 ZC AUP UP(PH) Light Manufacturing ZC ZC UP(PH) Mini-storage Warehouses Prohibited Changes of Use to Mini Storage Warehouse Prohibited Pesticides, herbicides and fertilizers Petroleum refining and products Prohibited Prohibited Pharmaceuticals AUP UP(PH) UP(PH) Primary Production Manufacturing AUP UP UP(PH) Semiconductors Warehouse-Based Non-Store Retailers Warehouses (other than Ministorage) Wholesale Trade establishments (including Cannabis Distributors) Other Industrial Uses Art/Craft Studio Bus, cab, truck and public utility depots UP(PH) ZC AUP UP(PH) Allowed in Manufacturing, Wholesale Trade or Warehouse, See Section 23E D ZC AUP UP(PH) ZC AUP UP(PH) ZC <10,000 AUP AUP 10,000 20,000 UP UP(PH) >20,000 Workspaces only, no Live/Work permitted. Allowed in Manufacturing, Wholesale Trade or Warehouse. See Section 23E D Commercial Excavation UP(PH) Including earth, gravel, minerals, or other building materials, including drilling for, or 105 of 150

106 Uses Page 24 of 29 Permits Required to Establish, Expand or Change Use (sq. ft.) Under 20,000 20,000 40,000 More than 40,000 ATTACHMENT VII.A.1.g Special Requirements (if any) removal of, oil or natural gas Contractors AUP UP Allowed in Manufacturing, Wholesale Trade or Warehouse. See Section 23E D Dry Cleaning and Laundry Plants ZC AUP UP(PH) No retail service permitted Laboratories, Testing and Commercial Biological Research (including Cannabis Testing) Media Production AUP UP UP(PH) ZC <10,000 AUP 10,000 20,000 UP(PH) >20,000 Recycled Materials Processing ZC* AUP UP * If all processing done indoors; if any outdoors, AUP Research and Development ZC AUP Change of Use from Warehouse and Wholesale Trade Repair Service (other than auto repair) Services to Buildings and Dwellings AUP UP(PH) UP(PH) See Section 23E A2. ZC AUP UP No retail sales permitted AUP Table 23E MU-LI Mixed Use-Light Manufacturing District Provisions: Uses Permitted Uses Manufacturing and Wholesale Trade Permits Required to Establish, Expand, or Change use by Floor Area (sq. ft.) Under 20,000 20,000 30,000 More than 30,000 Special Requirements (if any) Increased Permit requirements in locations within 150 ft. of a residential use in either the R or MU-R district. See Section 23E D 106 of 150

107 Uses Construction Products Manufacturing Page 25 of 29 Permits Required to Establish, Expand, or Change use by Floor Area (sq. ft.) Under 20,000 20,000 30,000 More than 30,000 UP(PH) UP(PH) UP(PH) Light Manufacturing ZC AUP UP(PH) Mini-storage Warehouses Pesticides, Herbicides and Fertilizers Petroleum refining and products Prohibited Prohibited Prohibited ATTACHMENT VII.A.1.g Special Requirements (if any) Pharmaceuticals AUP UP(PH) UP(PH) Permitted only in locations at least 500 ft. from R or MU-R Districts; see Section 23E F Primary Production manufacturing Semiconductors and related devices Warehouses (other than Ministorage) Warehouse-Based Non-Store Retailers Wholesale Trade establishments (including Cannabis Distributors) Other Industrial Uses Art/Craft Studios Prohibited Prohibited ZC AUP UP(PH) See Retail Uses for storage of goods for a retail use ZC AUP UP(PH) Allowed in Manufacturing, Material Recovery Enterprise, Wholesale Trade or Warehouse. See Section 23E A.1 ZC AUP UP(PH) ZC <10,000 AUP 10,000 20,000 UP(PH) >20,000 Workspaces only, live/work limited. Section 23E E. Allowed in Manufacturing, Material Recovery Enterprise, Wholesale Trade or Warehouse. See Section 23E A of 150

108 Uses Bus, cab, truck, public utility depots Page 26 of 29 Permits Required to Establish, Expand, or Change use by Floor Area (sq. ft.) Under 20,000 20,000 30,000 More than 30,000 ATTACHMENT VII.A.1.g Special Requirements (if any) AUP UP(PH) UP(PH) UP(PH) required if lot is over 20,000 sq. ft. regardless of floor area Commercial Excavation UP(PH) Including earth, gravel, minerals, other building materials, drilling for oil or natural gas Contractors AUP UP(PH) UP(PH) Allowed in Manufacturing, Material Recovery Enterprise, Wholesale Trade or Warehouse. See Section 23E A.1. Dry Cleaning and Laundry Plants Laboratories, Commercial, Physical or Biological using: Class 1 Organisms only ZC AUP UP(PH) UP(PH) Class 2 Organisms UP(PH) Permitted only in locations at least 500 ft. from R or MU-R Districts. See Section 23E Class 3 Organisms Laboratories, Motion Picture, Photo Processing Laboratories, Testing (including Cannabis Testing) Material Recovery Enterprise Media Production ZC <10,000 UP(PH) UP(PH) UP(PH) Prohibited AUP 10,000 20,000 UP(PH) >20,000 Recycled Materials Processing UP(PH) If lot is over 20,000 sq. ft. Recycling Redemption Center UP(PH) If lot is over 20,000 sq. ft. Repair Service (other than auto repair) Research and Development ZC AUP ZC AUP UP(PH) No retail sales permitted 108 of 150

109 Uses Change of Use From Warehouse and Wholesale Trade Services to Buildings and Dwellings Page 27 of 29 Permits Required to Establish, Expand, or Change use by Floor Area (sq. ft.) Under 20,000 20,000 30,000 More than 30,000 ATTACHMENT VII.A.1.g Special Requirements (if any) AUP UP(PH) UP(PH) See Section 23E A.2. AUP Table 23E MU-R Mixed Use-Residential District Provisions: Uses Permitted Uses Manufacturing and Wholesale Trade Manufacturing Uses Construction Products Manufacturing Light Manufacturing Primary Production Manufacturing Warehouses Mini-storage Warehouses Warehouses or Storage Wholesale Trade (including Cannabis Distributors) Permit Required to Establish, Expand or Change Use (sq. ft.) Prohibited AUP if 5,000 or less; UP(PH) if more than 5,000 Prohibited Prohibited UP(PH) AUP if 5,000 or less; UP(PH) if more than 5,000 Special Requirements (if any) Subject to the finding under Section 23E K and parking requirements under Section 23E B See Retail Uses for Storage of Goods for a Retail Use; also see parking requirements under Section 23E B Subject to parking requirements; see Section 23E B 109 of 150

110 Page 28 of 29 ATTACHMENT VII.A.1.g Section 23E Medical Cannabis UsesReserved A. 1. Subject to the licensing requirement of paragraph 3, six medical cannabis dispensaries as defined in Section 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 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, C. Uses such as, but not limited to, testing, processing, and food preparation, that involve medical cannabis as defined in Chapter 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 NS 1, 2016; Ord NS 6, 2010: Ord NS 4 (part), 12/08/08) Section 23E Medical Cannabis CultivationReserved A. Notwithstanding anything to the contrary in this Chapter, cultivation of medical cannabis as defined in Chapter 12.26, Chapter and the State s Medical Marijuana Regulation and Safety Act shall be permitted as a matter of right with a Zoning Certificate in the M District, subject to the following limitations: 110 of 150

111 Page 29 of 29 ATTACHMENT VII.A.1.g 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 NS 1, 2016: Ord NS 7, 2010) 111 of 150

112 1 of 2 ITEM VII.A.1.h February 1, 2018 Sections 23E and 23E will be deleted. Many of the Sections/Subsections will be modified and placed in a new chapter: 23C.25. See comments to determine the new location of information contained within Sections/Subsections. 1 2 Section 23E Medical Cannabis Uses A. 1. Subject to the licensing requirement of paragraph 3, six medical cannabis dispensaries as defined in Section 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 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, C. Uses such as, but not limited to, testing, processing, and food preparation, that involve medical cannabis as defined in Chapter 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 NS 1, 2016; Ord NS 6, 2010: Ord NS 4 (part), 12/08/08) Commented [GE1]: See 23C F Commented [GE2]: See 23C B Commented [GE3]: See 23C D Commented [GE4]: See 23C A 112 of 150

113 2 of 2 ITEM VII.A.1.h February 1, Section 23E Medical Cannabis Cultivation A. Notwithstanding anything to the contrary in this Chapter, cultivation of medical cannabis as defined in Chapter 12.26, Chapter and the State s Medical Marijuana Regulation and Safety Act shall be permitted as 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 NS 1, 2016: Ord NS 7, 2010) Commented [GE5]: See 23C A Commented [GE6]: See 23C C Commented [GE7]: See 23C D 113 of 150

114 1 of 4 Item VII.A.2 Topic Subtopic Existing regs (ord) Proposed regs (ord) Subcommittee Notes/Recommendations Cultivation Location M District only (ZO 23E A) Same (ZO 23C A) 3 different options to be considered by the commission on 02/22/2018: 1. Locations approved on a case-by- case basis in other zones as a part of the selection process. Size Quota limit Maximum 22,000 sf (area of cultivation and associated uses) (ZO 23E A.3) 180,000 sf cap on all commercial cultivation in city. (No decision on numeric quota for businesses) (ZO 23E A.4) Same maximum size, but measured by canopy area (ZO 23C A.3) 180,000 sf cap still applies. Numeric limit of 6 for businesses between 10,001 sf and 22,000 sf. No numeric limit for businesses under 10,000 sf, but 180,000 cap applies (ZO 23C A.4, 5 and 6) 2. Request the commission to send a friendly letter to city council encouraging them to open up options in different zones. 3. Require the 6 large businesses to be in the M district, then approve the other small businesses on a case-by- case basis in other zones. Use the states designations (MAUCRSA SEC. 49 Section of the Business and Professions Code) to help determine the best zone for these businesses. We agree with the proposed regs. We agree with the proposed regs. Buffer 600 away from schools with K-12 students (ZO 23E B) Security Requirements for lighting, licensed, unarmed security guards, camera coverage, alarm system, storage of product and cash, bars on openings if no guards after hours. (BMC E) 300 away from schools with K-12 students (ZO 23C C) Same, with addition that any State requirements that are stricter will apply (BMC G) We agree with the proposed regs. We agree with the proposed regs. 114 of 150

115 2 of 4 Item VII.A.2 On-site consumption Not permitted, except for employees with medical needs (BMC G.1 and 4) Same, except remove BMC G.4 (BMC I and G) We agree with the proposed regs. Selection process Yes, but no decision on type Yes No discussion as we are waiting for a final proposal from staff. Change in location - relocation N/A No recommendation yet We agree with the proposed regs. Change in location - expansion N/A No recommendation yet We agree with the proposed regs. Changes in ownership N/A No recommendation yet The commission should discuss requiring that any majority changes in ownership be subject to review by the Cannabis commission and/or city council or another appropriate body. Nurseries Not mentioned Businesses applying for a State Nursery permit must obtain the specific permits required for cultivation use at the site. (BMC (definition) Other Use tables N/A Cannabis uses shown in use tables (Non-Residential District Uses Tables in the ZO) We recommend that outdoor growing should be considered on a case-by-case basis. The commission should also discuss the distinction between wholesale nurseries and retail nurseries. Potential collaboration options for existing nursery businesses. No discussion happened on this topic. Growing in backyards Patients can grow up to 10 plants in backyard more if on rooftop or balcony not visible from other properties Not mentioned, allowed per State law No discussion happened on this topic. 115 of 150

116 3 of 4 Item VII.A.2 Billboards Not mentioned Prohibited No discussion happened on this topic. Lounges Not mentioned Staff recommends considering the use a Retail (storefront) use, which would need a Retailer license (BMC G) No discussion happened on this topic. Temporary events Not mentioned Prohibited (BMC ) Berkeley should allow BYOC pop-up events to the extent that state law allows. Residential collectives Allowed (BMC ) Staff recommends to continue allowing Residential collectives but with additional regulations per the State (BMC ) No discussion happened on this topic. Taxes Medical = 2.5% Non-medical = 10% No recommendation yet No discussion happened on this topic. Selection Process (equity, community benefit requirements, etc.) No recommendation yet Specifically concerning equity: Berkeley should look to the state for guidelines on equity. We should start with achievable equity instead of just dispensaries encourage equity in manufacturing, delivery-only, cultivation, etc. Extra points earned on equity if you are part of a population that has been disproportionately effected by the war on drugs. Further discussion and clarification needed during the Cannabis Committe on 02/22/ of 150

117 4 of 4 Item VII.A.2 Licensing Definitions R, T, V, X: add langauge to clarify licensing types. Specifics below: R: " Cultivator means an individual or entity required to be licensed as an ACB, MCB, or both to cultivate cannabis pursuant to MAUCRSA, as amended from time to time." T: " Distributor means an individual or entity required to be licensed as an ACB, MCB, or both distributor pursuant to MAUCRSA, as amended from time to time." V: " Manufacturer means an individual or entity required to be licensed as an ACB, MCB, or both manufacturer pursuant to MAUCRSA, as amended from time to time." X: " Microbusiness shall have the same meaning set forth in MAUCRSA as an ACB, MCB, or both, as amended from time to time." 117 of 150

118 TO: FROM: Cannabis Commission Elizabeth Greene, Secretary Page 1 of 2 ATTACHMENT VII.B.1 SUBJECT: Comprehensive Cannabis: Proposed selection process DATE: Summary The Cannabis Commission has been considering new cannabis regulations since its January 18, 2018 meeting. One aspect of the regulations that was not included with the original packet was a selection process for license types which would be subject to a quota. On July 11, 2017, the Council directed staff to create an overall preference for qualified owners from populations or groups that have been disproportionately targeted for enforcement, criminalization, and/or incarceration related to marijuana offenses. Staff has designed two options which would apply to all businesses subject to a quota: Retailers with storefronts and cultivators with a canopy area of 10,000 square feet or greater. The recommendation to apply a quota to Delivery-only retailers has been removed. These options represent two ends of a spectrum. Option 1 allows candidates and locations to be considered in the order received and includes equity for the community at the end of the process. Option 2 considers Equity candidates at the beginning of the process and does not consider location. The best answer might be somewhere between these two options. See Attachment 1 for a description of these proposals. These selection process options would change some regulations, specifically quotas. These changes are shown as highlighted text in the ordinances and matrix attached to Item VII.A. Please note that many of the highlighted changes reflect clarifications and corrections and are not a result of the selection process proposal. Selection process considerations The following issues were considered in the development of these proposals: 1. Quotas. Basing the restriction on districts instead of city-wide numeric limits will allow for more potential businesses while addressing concerns about overconcentration. 2. Location. Requiring a location at the time of application would require applicants to maintain control of the site throughout the AUP process, but would guarantee that the applicant will have a site. Option 2 does not guarantee that the applicants selected will find a location. 3. Buffers between businesses. Buffers would prevent overconcentration in one area, but would be difficult to implement on a first-come, first served basis. 4. Public input. An AUP process allows the public an opportunity to voice support or concern about a project. This will also add time to the approval process. 118 of 150

119 Page 2 of 2 5. Equity. The options consider equity in two separate ways: equity for communities versus equity for individuals. Option 1 promotes equity through creation of a fund to support communities within Berkeley. The 2% tax is suggested because it is comparable to the 2% of product that Medicinal Retailers are required to give low-income patients. It would be paid by all cannabis businesses except Medicinal Retailers. Option 2 promotes individual Equity businesses by giving them an opportunity to secure a location before other businesses. 6. Lottery selection. Using a lottery will allow equity to be considered while significantly reduce the amount of time required to identify eligible business candidates. The time is estimated to be days from the time of submittal to the lottery. 7. Timing. AUPs take between 5 8 months, longer if appealed. Option 2 would be a faster process for Equity candidates, but would require others to wait. Changes to ordinances The proposed ordinances would be modified if the selection process is approved. The modifications are: 1. Quotas for storefront Retail: this would be changed from a city-wide limitation to a limitation within districts. The final number could be 32 businesses see the attachment for the numeric calculation. 2. Changes in ownership. If Option 2 is selected, Equity businesses would need to maintain their ownership for a set timeframe (1-3 years). Next Steps Please review the attachment and give comments to staff regarding the selection process options. ATTACHMENT VII.B.1 Attachment: 1. Outline of Selection Process Options for Cannabis Retail and Cultivation Businesses 119 of 150

120 Option 1 Page 1 of 2 Outline of Selection Process Options for Cannabis Retail and Cultivation Businesses ATTACHMENT VII.B.2 Allow a certain number of Storefront Retailers per geographical area/zoning district. This will add up to a maximum of 32 businesses (26 new + 6 existing). See below for calculation and reasoning. Large Cultivators limited to 6 locations in the M District Applicants must have a location and an Administrative Use Permit (AUP) to apply o Allows the public to review and comment on these projects/locations. Allocate half of the available licenses (13 for Retail, 3 for Cultivators). o Applications for remaining 13 slots will be accepted after 3 years to determine impact on equity. No limit for other cannabis businesses, including Delivery-only Retailers. No selection process first-come, first-served for all license types. All businesses (except Medicinal Retailers) pay 2% into the General Fund. This money will be earmarked like Soda Tax to be spent in a way to improve equity in Berkeley (no definition of that yet). Delivery-only and storefront Retail businesses will have a 600 feet buffer from schools only. (Other proposed business types, buffers remain 300 feet from schools.) Revisit after 3 years to determine impact on equity. Option 2 Allow a certain number of Storefront Retailers (Medicinal, Adult-Use or both) per geographical area/zoning district. This will add up to a maximum of 32 businesses (26 new + 6 existing). See below for calculation and reasoning. Large Cultivators limited to 6 locations in the M District. No limit for other cannabis businesses, including Delivery-only Retailers. Selection process for storefront Retailers and large Cultivators: o Allocate half of available slots (13 for Retail and 3 for Cultivators) for equity candidates only. Establish a short window (one day?) during which Equity applications will be accepted Retail applications will not need a location; cultivators will require a location. Applications will consist of information to determine equity standing and any information required for the State for a license, except that Retailers will not submit information related to a location. 120 of 150

121 Page 2 of 2 ATTACHMENT VII.B.2 All applications with staff-verified equity status will be entered into a lottery. Thirteen applications will be selected by a lottery. These applicants will have nine months to find a location. o Applications for remaining 13 slots will be accepted after the nine month period expires. Same process to select the general applicants (application window, lottery), without equity status check. o All applicants will have 2 years from the time of selection to establish a business. A one year extension may be granted if the applicant has a location and State license, and has applied for a building permit. Delivery-only will only have a buffer from schools. Storefront Retailers will have a 600-foot buffer from schools and each other. The proposed buffers for other businesses remain 300 feet from schools. Revisit after 3 years to determine impact on equity. Numeric Calculation Staff evaluated the commercial districts that are available in the city. All districts were assigned a minimum of one storefront Retail slot. Additional storefront Retail slots were assigned to some districts based on the size of the district, the area that is ineligible due to a school, and the existence of existing dispensaries. The C-1 and the C-SA have two distinct areas, so those were each evaluated separately. C-1 (University) 1 C-1 (Telegraph) 1 C-SA (Sacramento) 1 (already has 1) C-SA (Lorin) 3 (already has 1) C-W 4 (already has 1) C-NS 1 C-SO 1 C-E 1 C-N 1 C-DMU 2 C-T 0 (Already has 2) Each C-N district 1 (There are 11 separate C-N locations = Claremont Hotel; Claremont/Prince; Alcatraz/College; MLK/Dwight; MLK/Hearst; MLK/Virginia; MLK/Rose; Euclid; Hopkins/Fountain; Hopkins/Monterey; Gilman.) Total new storefront Retailers = new storefront Retailer locations + 6 existing storefront Retailer locations (one of these will be the Apothecarium) 32 total storefront Retailer locations 121 of 150

122 1 of 4 ITEM VIII.A As required under BMC Section 23E A, of the Zoning Ordinance, the following Design Review Guidelines are to be used by the Design Review Committee, Landmarks Preservation Commission, or City Staff when Design Review is required for exterior changes to buildings in the City s commercial and industrial zones. A) BUILDING AND PARKING SITING (1) Setbacks. a. The street facade of commercial streets should be respected, in order to create or maintain the sense of urban space. No new building line facing a street should be significantly in front of, or behind adjacent building facades unless such a variation complements or enhances the immediate urban space. b. For usual lot shapes and locations, the building footprint should allow for corners and spaces that can be used by pedestrians. c. Whenever possible parking should be behind buildings, underground, or in a central court. Screening of parking areas shall be subject to design review. (2) Orientation and Protection of Sunlight and Views. a. Buildings should be oriented to take advantage of the sun or outdoor private/public open space areas. Year-round solar access for adjacent buildings is encouraged. b. Views out from public areas and from existing buildings should be retained whenever possible by the use of setbacks, orientation and height limitations. The natural topography should be used to achieve these ends. (3) Parking and Driveways. Conflict with pedestrian circulation should be prevented by the proper location and design of auto entrances. B) STREET FACADES (1) Harmony with Surroundings. The proposed design should be in harmony with its surroundings through the coordination of such design elements as cornice lines, eaves, and setbacks with those of existing neighborhood buildings. This is especially important when the architectural style of the proposed design is in strong contrast to that of adjacent structures. Form, color, materials and texture of existing buildings should be considered in design of new structures. Landscaping should also be compatible with surroundings. (2) Articulation. Street facades in general and the ground floor level in particular should include elements of pedestrian scale and three-dimensional interest. 122 of 150

123 2 of 4 ITEM VIII.A (3) Window and Door Treatment. Window and door placement, size, grouping and shape should be sensitive to the neighborhood pattern, and should relate to design characteristics of surrounding buildings, especially when adjacent to historic structures. Security devices and grillwork visible from the street should be integrated into the overall building design. (4) Signs and Other Building Accessories. a. Signs shall be in conformity with Title 20 of the Berkeley Municipal Code (Signs). Signage should be integrated with the building design. Materials used for signs should be compatible with the building's architectural materials as well as with the design of neighborhood signs, or be incorporated into artwork integral to the surroundings. When multiple tenants in the same building provide signs adjacent to each other, a signable theme encouraging compatibility of such elements as size, shape, lettering, colors, and design elements should be established. Vandal-proof and weather resistant signage is encouraged. b. Secondary building accessories such as garbage receptacles, utility meters and mechanical and electrical equipment should be screened from the view of pedestrians. Screening of such accessories should be done in a way that is harmonious with the building design, or as integrated artwork in the building design. (5) Heights. In general, the height of adjacent buildings especially historic structures should be respected in the design of new buildings. Abrupt changes in height may be appropriate, even desirable, in certain situations, such as the need for focal points, landmarks, and the closure of long views. Such techniques as setbacks and terraces may be used to reduce the visual impact of differing heights, if the impact is negative. (6) Lighting. Lighting for circulation, security, building/sign identification should be non-obtrusive, except for light fixtures which are themselves decorative additions to the streetscape. Large visible expanses of fluorescent lights should be avoided. If necessary, structural screening or window shades should be incorporated into the building design to minimize nighttime glare. (7) Walls and Fences. Large, unarticulated expanses of any particular wall material that deaden the pedestrian environment should be avoided. The use of clear windows for ground floor retail project is encouraged. Walls designed to allow sitting areas for pedestrians or space for landscaping and artwork are encouraged, especially in areas of heavy pedestrian use. Landscaping and/or art work should be maximized if large expanses of wall must be left devoid of openings. 123 of 150

124 3 of 4 ITEM VIII.A (8) Neighborhood Pattern. It is not the intent of this section that neighborhood pattern, or characteristics of adjacent buildings, be necessarily copied literally, particularly if they have little or no architectural merit. Diversity and innovation are positive values, and are encouraged where they do not disrupt the harmony of the overall urban setting. C) LANDSCAPING AND OPEN SPACE (1) Protection of Existing Landscape. New construction should include measures to protect desirable and existing landscaping of significance, especially street trees and landscaping visible from the sidewalk. In the event that existing landscaping must be displaced or obscured, every effort should be made to replace it with new landscaping of equal or greater prominence. (2) New Development. The provision of planters, trees, ground covers, and shrubs with automatic watering systems is encouraged where they do not impede pedestrian movement and where the building owner and/or tenant will provide continuing maintenance. The City's Public Works Department and Parks/Marina Office should be consulted regarding the provision of sidewalk landscaping. (3) Sidewalk Areas. Sidewalk areas should include landscaping that is coordinated with the neighborhood design. The consistent use of one species of tree along a street or block is encouraged. Paving materials may be varied but must create a pattern that is sensible in terms of cues for people who have visual impairments. (4) Parking. If parking is not placed underground, behind buildings, or in interior courts, it should incorporate adequate landscaping or artwork for visual screening. Screening should not interfere with pedestrian safety. When adjacent to public sidewalks, parking areas should include walls, beaming, artwork or shrubbery that is at least three feet, but no more than four feet, in height between the sidewalk and the first row of parked cars. Parking areas should include setbacks for landscaping and/or artwork to minimize visibility of parked cars, especially from the street. Shading of at least fifty percent (50%) of the surface area (as measured at 12 noon on June 21) is encouraged to reduce heat buildup and to improve visual appearance. (See also Chapter 23E.28 of the Zoning Ordinance.) (5) Public Open Space Areas. The inclusion of public open spaces is encouraged as a means of providing places for people to come together for community interaction and enlivening the pedestrian environment. These spaces should be wheelchair accessible and the entrances should be visible from the street. Such amenities as artwork, patios with benches, fountains with nearby sitting areas, and interior courtyards are encouraged. These open space areas should be located to take advantage of 124 of 150

125 4 of 4 ITEM VIII.A winter and afternoon sunlight, and to protect from prevailing winds. Roof plazas and gardens are encouraged. D) CIRCULATION (1) Location of Driveways. Shared parking facilities are encouraged whenever possible to minimize the number of curb cuts. Driveways should be designed to have minimum interference with pedestrian traffic flow. Whenever possible, driving and loading access should be to and from side streets rather than main thoroughfares. (2) Pedestrian Paths. Pedestrian paths and arcades interior to the block which joins different parts of buildings as well as different streets are encouraged. These paths should be lighted, should not contain blind corners, and should be marked for a clear understanding of direction and destination points. Entry points to the pathways and arcades should be defined by architectural elements such as gateways, change in paving materials, signage, and artwork. (3) Building Entrances. Entrance points should be clearly defined and easily identifiable by pedestrians by appropriate locations and by elements such as awnings, signage, artwork, or changes in paving material to define the entry point. Building on corner lots are encouraged to incorporate a cut away entrance to improve visibility and pedestrian circulation. (4) Transit Loading Points. Where appropriate, remodeling of adjacent transit loading points may be desirable. Transit loading points should be designed to provide protection for transit users in inclement weather. Adequate room should be provided for transit loading so that pedestrian traffic is not interrupted. (5) Bicycle Parking. New developments should provide usable bicycle racks that are visible from a public way and that do not impede pedestrian or auto circulation. When possible, locked and covered structures for bicycles should be provided and designed to be compatible with the building and neighborhood. (6) Access For Disabled Persons. Provisions for disability access should be compatible with the overall building design and should be clearly visible. In addition, they should comply with all existing disability access laws. 125 of 150

126 Greene, Elizabeth From: Sent: To: Cc: Subject: 1 of 1 Charles Pappas <nberkhills@sbcglobal.net> Saturday, February 03, :22 PM Greene, Elizabeth David Lampach; Molly Dooley Jones; Wengraf, Susan I am sorry for behaving badly... Item IX.A Communications Dear Berkeley cannabis commissioners, city staff, members of the public, Please accept my sincere apology for my loud outburst and profanity interrupting Thursday's cannabis commission meeting (Feb. 1, 18). My zeal and passion for correcting/improving perceived long time city and state problems, inequities, injustice regarding cannabis, certainly are no excuse for my negative, unproductive, impolite verbal expression and argument. If you can forgive my truly inappropriate behavior, I would be grateful, be a better commissioner and try to remember always "practice kindness, choose happiness". HHDL. Respectfully, Charley Pappas ps Please attach to next subcommittee/commission agendas of 150

127 1 of 6 Item IX.B Communications Cannabis Commission Draft Ordinance Review- Red Line (noting disagreements) /Clarification Explanation/ January/Febuary 2018 Acting Chairman Pappas', Red Line/Clairification Explanations page 8 Next Steps in Approval Process - HAC & the CHC will review specific components of proposals at respective meetings (Feb 1, 2018 & Feb 22, 2018) & may provide feedback to the Council. /Question HAC/CHC participation/ The CC & PC will provide recommendations to the Council on all or portions of the cannabis proposals: Cannabis Commission: Recommendations on the draft BMC, ZO & selection process. Anticipated Timeline: January 18th & February 1st meetings. Planning Commission: Recommendations on the draft ZO. Anticipated timeline: February 7th & February 21st meetings. All four commissions will hold public meetings to review the proposals & will provide an opportunity for public comment. Council consideration: Based on the commission schedule above, the Council could consider the draft proposals, recommendations & other feedback at a meeting between April 24th & May 15th. /Object to longer than shorter time frame for council consideration/approval/ page 9,10,11 Commercial Cannabis Regulations and Licensing BACKGROUND: Existing Berkeley law contains no provisions for any sort of non-medical cannabis business structure. Proposition 64, the Adult Use of Marijuana Act, which passed statewide with 57% of the vote, & in Berkeley with 83.5%, permits local governments to establishing licensing in advance of state regulations for recreational cannabis. The proposed ordinances, based in large part on current Berkeley medical rules, would: - Empower the City Manager to determine if the Commercial Cannabis Organization is in compliance with Berkeley rules. /Standard, therefore objection withdrawn/ Not reduce the rights of qualified patients & primary caregivers, or individuals over 21 as authorized by AUMA, to access & personal cultivation. COLLECTIVES -Prohibit the City from issuing new dispensary licenses until January 1, 2020, to ascertain demand /Give me a break!?! For what purpose.../ Existing and Proposed Cannabis Regulations page 11,12 Retail: Medicinal Use Selection process / MBAP (Resolution 66,711- N.S.) TBD, / see Selection Process section Changes in ownership / No regulations / No recommendation yet Quota limit / N/A / Limit of 12, (ZO 23C G) Quota limit / None (recommended Cannabis Comm) / 10 (recommended staff) (ZO / Restrictive regulation with questionable neccessity, just a number... Selection process / No recommendation regarding discretionary review (Planning Commission) / Same selection process as other Retailers Retail: Adult Use- Quota limits / N/A / Limit of 12, (ZO 23C G) / same as above Retail: Delivery only- Location / All C-prefixed districts except C-N (recommended by Planning Comm) / All C-prefixed districts & in M-prefixed districts as an ancillary use to another cannabis business (recommended by staff) (ZO 23C H.2) Quota limit / None (recommended Cannabis Comm) / 10 (recommended staff) (ZO 23C H.1) / same as above Selection process / No recommendation regarding discretionary review (Planning Commission) / Same selection process as other Retailers. Delivery-specific requirements- Vehicle & driver / insurance, signage, deliveries only to residence or business of Member. Only applied to delivery-only dispensaries / Same, but deliveries can only be to a residence / clarification neccessary. Regulations will apply to any Retailer making deliveries to patients. (BMC H) page 13,14 Cultivation- Quota limit / 180,000 sf cap on all commercial cultivation in city. (No decision on numeric quota for businesses) (ZO 23E A.4) / 180,000 sf cap still applies Numeric limit of 6 for businesses between 10,001 sf & 22,000 sf. No numeric limit for businesses under 10,000 sf, but 180,000 cap applies (ZO 23C A.4, 5 & 6) 127 of 150

128 2 of 6 Item IX.B Communications Page 2 Buffer / 600 away from schools with K-12 students (ZO 23E B) / 300 away from schools with K-12 students (ZO 23C C) Selection process / Yes, but no decision on type / Yes / Nurseries / Not mentioned / Businesses applying for a State Nursery permit must obtain the specific permits required for cultivation use at the site. (BMC / Discussion necessary / Microbusiness / Not called out in ordinance as a separate use. Businesses applying for a State microbusiness permit must obtain the specific permits required for the individual uses at the site. Any use that is included at a microbusiness site must meet the same requirements (location, buffer, quota, selection, security, etc) as if the use was a sole operator. (BMC ) Considerations for adult use permitting important page 15,17 General for all businesses- Ownership/profit status Must operate as a collective & not-forprofit (State law, BMC B.1, B.1) / Removed both requirements Records/reporting requirements / Dispensaries and cultivators must report financial records to verify taxes, not-for-profit status & 2% to low-income distribution, & convictions (BMC , ) Expanded to all cannabis businesses / Removed reference to not-for-profit status, & reporting of convictions. (BMC ) Ranking / Allocation Council may establish a selection process for dispensaries & cultivators (BMC , ) / Expanded to all Retailers & Major Cultivators. Minor changes to language. (BMC ) / Large cultivators only same as merit-based dispensary process / Authority of City Manager / BMC , , / Added subsection to allow City Manager to require businesses to obtain operating permits from Fire, Toxics & other divisions as necessary to ensure public safety. (BMC , ) / When applicable various departments Growing in backyards / Patients can grow up to 10 plants in backyard more if on rooftop or balcony not visible from other properties / Not mentioned, allowed per State law Residential collectives / Allowed (BMC ) / Staff recommends to continue allowing Residential collectives with additional regulations per the State (BMC ) Taxes/Medical = 2.5% Non-medical = 10% / No recommendation yet / Make our own, state may adjust Selection Process / (equity, community benefit requirements, etc.) No recommendation yet - Not-for-profit / All dispensaries & cultivators must operate on a not for profit basis. ( B.1 and B.1) / Only collectives must operate on a not-for-profit basis. ( D) - Operating Permit / The City Manager/Council may authorize regs to administer Chapter ( & ) Operating permits for all cannabis businesses may be required by the City Manager ( C and C) page 19 CANNABIS BUSINESSES: GENERAL REGULATIONS Chapter (fmr 12.23) Definitions - X. Microbusiness shall have the same meaning set forth in MAUCRSA, as amended from time to time. Y. Nursery means an individual or entity required to be licensed as a Type 4 Cultivator pursuant to MAUCRSA, as amended from time to time, & includes Class 1 Nursery & Class 2 Nursery, defined as follows: 1. Class 1 Nursery means a nursery that does not produce mature, flowering plants, such as cuttings or clones. 2. Class 2 Nursery means a nursery that produces mature plants with flowers for the purpose of producing seeds, whether for distribution to a Retailer or for research purposes. A Class 2 Nursery may also produce cuttings or clones. DD. Retailer 3. "Delivery-Only Retailer is a Retailer that is limited to acquiring Cannabis & delivering it to its Qualified Patients, Primary Caregivers, & adult consumers, & does not have a location to which Qualified Patients, Primary Caregivers, & adult consumers may come to acquire Cannabis or any other good or service. / Objection - in state law, I don't think so page 27, Authority of City Manager A. The City Manager or his or her designee shall have authority to determine the nature of any Cannabis Business or purported Cannabis Business & whether that entity complies with any of the requirements of this Chapter, Chapters and 12.26, & Title 23, and to conduct inspections as provided in Chapter of 150

129 3 of 6 Item IX.B Communications Page 3 B. The City Manager or his or her designee may promulgate regulations for the administration & implementation of this Chapter, including, but not limited to, regulations relating to non-diversion, record-keeping, & tracking & tracing 10 of 11 ITEM VII.B.3 January 18th, of 113 Cannabis. C. The City Manager or his or her designee may require any Cannabis Business to obtain operating permits from the City of Berkeley Fire Department, Toxics Management Division, Environmental Health Division, & any other department or division. / Again, when applicable to department D. The City Manager or his or her designee shall have authority to enter onto private property & perform such inspections as may be necessary or convenient to implement & enforce this Chapter, Chapters & 12.26, & Title 23, & to adopt regulations to implement this Chapter, Chapters and 12.26, and Title 23. / Request standard page 29,30 CANNABIS BUSINESS OPERATING STANDARDS Chapter Selection Process The Council may by resolution establish procedures & criteria for accepting applications to operate Retailers or Major Cannabis Cultivators and determining which, if any, to approve. Eligibility requirements A. No Principal of any business of a certain license type may be a Principal for any other business of a different license type in the City of Berkeley, except that a State M licensee may also be a State A licensee of the same license type. page 34 Distributors A. Distributors must obtain operating permits from & are subject to inspections by the City of Berkeley Environmental Health Division. B. Distributors must arrange for the testing of Cannabis & Cannabis Products consistent with the City of Berkeley testing procedures specified in Section of this Chapter until such time as testing procedures specified by the Bureau of Cannabis 252 Control are available & conducted locally. page 35 Manufacturers / State law? / A. All Manufacturers must obtain operating permits from & are subject to inspections by the City of Berkeley Environmental Health Division / Other businesses? Complaint-driven only page 36 Cultivation A. Cultivators must obtain operating permits from & are subject to inspections by the City of Berkeley Environmental Health Division. / Same as above perhaps large-scale only B. Cultivator license types shall be the same as defined in MAUCRSA, with the exception of Type 4 Cultivation, as defined in Section C. Cultivators may only provide Cannabis or Cannabis Products to other Cannabis Businesses that are permitted by State & local authorities & compliant with State & local law. Exceptions? E. Class 2 Nurseries must track the amount of, & disposition of, flower remaining after seed harvesting Microbusinesses- Microbusinesses must obtain separate City-issued operating permits for each activity conducted on the premises. / Of course! page 37,38 Limitations on Collective operations Incidental to the residential use of property in residential zoning districts, & only acquires & provides Medicinal Cannabis to Qualified Patients and Primary Caregivers, Collectives shall comply with the following operating limitations: A. Collective no more than 5 Member trips / day per location, excluding residents' trips. / Unneccessary B. Cash on hand shall be minimized, & no more than $1000 may be retained overnight per location. / Ridiculous C. Each Collective may not operate at more than four (4) residential locations in Berkeley, & may not store or maintain at any site at any time more than a combined total of 10 pounds of dried Medical Cannabis and concentrates, of which no more than 1 pound may be concentrates. / All unneccessary restrictions with anti-existing, uninclusive features D. Collectives may not allow Member visits to obtain Medical Cannabis except for social purposes before 8:00 a.m. or after 9:00 p.m. / Unneccessary E. No alcohol may be served for consideration. / Unneccessary 129 of 150

130 4 of 6 Item IX.B Communications Page 4 F. No consideration may be charged for entry into the Collective or any part of the residence in which the Collective is located, no live entertainment may be provided, & no entertainment of any sort may be provided for consideration. G. Smoking of Medical Cannabis by non-residents is prohibited in all exterior areas of Collectives. / Unneccessary, should be complaint-driven only K. Collectives must consist of Members who are Berkeley residents. / Counter to existing situation - e.g. Contra-costa L. All cultivation of Medical Cannabis must be conducted at the residential collective location(s). M. All Edibles must be produced at the residential collective location(s) & base ingredients must conform to items on the most recent CA Dept of Public health s Approved Cottage Foods list. O. Primary Caregivers may retrieve Medicinal Cannabis or Medicinal Cannabis Products for their Qualified Patient that is unable for medical reasons to retrieve Medicinal Cannabis or Medicinal Cannabis Products from the collective. Convenience delivery services are expressly prohibited. / What does this mean? P. On an annual basis, collectives shall pay the annual operating fee established by the City Council & obtain an Operating Permit from the City of Berkeley Environmental Health Division. Permittees may be subject to inspection by the City of Berkeley Environmental Health Division. / What kind of permittee? Other businesses? Q. Collectives may not manufacture concentrated Medicinal Cannabis products by means of any pressurized gas or flammable solvent whether volatile or non-volatile Operating standards for Collectives- Collectives- comply with the following provisions. A. Membership. 1. No person other than a Member may cultivate Medicinal Cannabis on behalf of a Collective. / Disagree, unneccessary 2. The scale of cultivation by or on behalf of a Collective shall be proportional to its Membership. / Overly restrictive 4. Prospective members advised in writing, prior- membership, as follows: "WARNING: Cannabis is not tested by local, state or federal governmental agencies for health, safety, or efficacy. There may be health risks associated with the consumption of Cannabis or Cannabis Products." B. Collectives shall take all practicable steps necessary to prevent & deter diversion of Medicinal Cannabis to non-members. Collectives must limit access to Medicinal Cannabis to authorized personnel only, must maintain an inventory management system that: 1. Accounts for all Medicinal Cannabis dispensed to Members; 4. Capable producing summary showing the information necessary to verify non-diversion. C. Dispensing. 1. Collectives may not dispense to any person who is not a Member & may not dispense without first verifying membership. / Disagree, legal cannabis 2. Collectives may not provide more Medicinal Cannabis for a Member than is necessary for the personal medical use of the Qualified Patient for whom the Medicinal Cannabis is intended, & may not dispense more than one ounce of dried Medicinal Cannabis per day per Patient: / Larger or omit 3. Collectives may not distribute free samples outside of the Collectives premises. /Omit D. Finances. 1. Collectives shall operate on a Not-for-Profit basis. Sale of Medicinal Cannabis to cover anything other than reasonable compensation & reasonable out-of-pocket expenses is explicitly prohibited. To the extent they provide goods or services not related to Medicinal Cannabis, Collectives need not operate on a Not-For-Profit basis. 130 of 150

131 5 of 6 Item IX.B Communications Page 5 2. Collectives with more than 25 members shall make their financial records available to the City on an annual basis. Such audited records shall be limited to information necessary for the City to determine the not-for-profit status of the organization & shall include information on staff/principal compensation. / Other home industries? page 40,41,42,43 E. Operations. Collectives shall maintain the following information & make it available to the City within 30 days of the end of each calendar year. / Who is this for? 1. The total number of members during the year; 2. The total amount of revenue collected during the year; 3. The consideration paid for each Batch; 4. Monetary & non-monetary contributions from Members; 5. Total monetary & non-monetary distributions to Members other than Medicinal Cannabis Products or Edibles dispensed for monetary consideration; 6. Salaries & overhead; & / other home businesses? 7. Complete list- types of Medicinal Cannabis, Medicinal Cannabis Products & the prices thereof G. Before obtaining business license pursuant required by Chapter 9.04, a Collective must obtain an inspection from the City or authorized City representative that any cultivation or processing of Medical Cannabis that it intends to undertake at a given site will not pose a fire hazard. / same as other businesses? Product Safety and Quality Assurance for Collectives Collectives with more than 25 members shall test all Medicinal Cannabis & Medicinal Cannabis Products, & specified compounds shall be quantitated, as set forth in this Section. B. The quantitative information required by subdivision A shall be printed on labels for all Medicinal Cannabis as set forth in the following table. / Business owners C. Medicinal Cannabis shall be tested for contaminants as set forth in the following table. Medicinal Cannabis that contains more than the permissible levels may not be provided to any Member or any other person, & shall either be destroyed or returned to their source(s). D. Baked goods, such as cookies and brownies, shall be exempt from testing for contaminants. These products remain subject to testing for potency, as required for the label information of this Section, & must use Medicinal Cannabis that has been tested for contaminants. / Business stricter than private E. Collectives shall maintain a written or computerized log documenting: 1. the date, type, and amount of Product tested; 2. the source(s) of any contaminated Medicinal Cannabis; / Unneccessary for private organizations 3. Report containing results of testing, including name & level of substance detected; & 4. the disposition of the Medicinal Cannabis from which the contaminated sample was obtained, including the amount & the date and manner of disposition. Such logs shall be maintained for at least one year & made available to the City upon request. / same as above F. Packaging & Labeling for Medicinal Cannabis. 1. Medicinal Cannabis that is made available to members shall be contained in packaging that bears labels containing the following information, in addition to any other information that a Collective may choose to provide or that may be required by law: - a. the name & contact information for the Collective; b. the weight; - c. the quantity of compounds as set forth in subdivision B; d. the date of manufacture or production; & e. a complete list of ingredients. G. Collectives 25 + members- regulations, Preparation, Packaging & Labeling of Edibles. d. Certified Food Handler. A Member who produces Edible Medicinal Cannabis Products must be a State certified food handler. / Business only, against present existing situations 4. Packaging of Edibles. a. All Edibles shall be individually wrapped at the original point of preparation. A label indicating the nature of the product shall be distinctly & clearly legible on the front of the package. Additional label information must include: (i) a warning if nuts or other known allergens are used; (ii) a warning that the item is a medication containing Medicinal Cannabis the total 131 of 150

132 6 of 6 Item IX.B Communications Page 6 weight (in ounces or grams) & amount of Active Ingredients in the package; (iii) the date of manufacture; (iv) a statement that the contents are not a food product; and (v) information indicating any caloric impact on the patient. The package label must have a warning clearly legible emphasizing that the product is to be kept away from children. A recommendation 5. Producers of Edibles that are not tested for contaminants shall maintain a written or computerized log documenting: a. The source of the cannabis used in each batch of product; b. The contaminant testing date; and c. The testing facility for the cannabis. / same as previous - H. This Section shall apply only to Collectives. page 55,58,59 MEDICAL CANNABIS CULTIVATION Chapter G. Dispensing and Consumption of Medical Cannabis, Tobacco and Alcohol. 2. Sale or consumption of tobacco is prohibited at Facilities. / restrictive, unneccessary C. Medical Cannabis & Medical Cannabis Products shall be tested for contaminants as set forth in the following table. Medical Cannabis & Medical Cannabis Products that contain more than the permissible levels may not be provided to any Member or any other person, & shall either be destroyed or returned to their source(s) at the option of the owner. / Business only page 78,79 CANNABIS USES Chapter 23C.25 Cannabis Cultivation Section 23C A. Notwithstanding anything to the contrary in this Chapter, cultivation of cannabis as defined in Chapters & & MAUCRSA, shall be permitted as a matter of right with a Zoning Certificate in all M-prefixed zones, subject to the following limitations: 1. Such locations shall be limited to licensed Cannabis Businesses. 2. Cannabis may not be dispensed, & client, patient or member services or retail sales are prohibited, at such locations. 3. No single location used for cultivation & associated uses by a licensee may exceed 22,000 square feet of total canopy area, except that separate spaces used by different licensees may be aggregated on the same location. 4. Up to six Major Cultivation Facilities between the size of 10,000 sf & 22,000 sf in total canopy area are permitted. 5. There is no numeric limit for Cannabis Cultivation Facilities under 10,000 sf in total canopy area. These uses are limited by the total area permitted for cannabis cultivation set forth in subsection 23C A.7 minus the area available for Major Cultivation Facilities. 6. Outdoor commercial cultivation is prohibited. / Case-by-case basis 7. Total canopy area cannabis cultivation shall not exceed 180,000 square feet. (23E A) B. Cannabis nurseries, as defined in Chapter are considered Cannabis Cultivation uses and are subject to the same regulations as Cultivators. / Smaller cultivator regulations, not larger. Plus, wholesale retail considerations C. Such locations shall comply with all regulations in Chapter 12.XX, security regulations promulgated by the Chief of Police, and the requirements of this Chapter, & shall not be located within 300 feet of a private or public elementary, middle or high school. Such locations may include testing, processing, manufacturing and food preparation only to the extent expressly permitted by MAUCRSA. / Case-bycase basis D. No Cannabis uses may be approved under this Section until the City Council adopts a licensing process and standards for such uses. Such standards shall include a requirement that indoor cultivation uses provide for an energy offset through a program specified by the City to offset the net increased energy that is used by the Facility as compared to a regular industrial facility, & may include, but shall not be limited to, whether proposed Facilities will provide a percentage of all usable product cultivated at no cost to very low income patients and will use organic methods in cultivation & processing to the maximum extent reasonable; & whether their form of organization, ownership & practices ensure equity & accountability, low prices & an adequate 101 supply of high quality cannabis to Customers. / No, temporary should be available 132 of 150

133 CA Bureau of Cannabis Control Medicinal & Adult-Use Cannabis Regulation & Safety Act (MAUCRSA) 20 License Types (see BCC, Commercial Cannabis Business Licensing Program Regulations: Cultivation licenses: Type 1 = Cultivation; Specialty outdoor; Type 1A = Cultivation; Specialty indoor; Type 1B = Cultivation; Specialty mixed-light; Type 1C = Cultivation; Specialty cottage; (AB 2516, 2016) Type 2 = Cultivation; Outdoor; Small. Type 2A = Cultivation; Indoor; Small. Type 2B = Cultivation; Mixed-light; Small. Type 3 = Cultivation; Outdoor; Medium. Type 3A = Cultivation; Indoor; Medium. Type 3B = Cultivation; Mixed-light; Medium. Type 4 = Cultivation; Nursery. Type 5 = Cultivation; Unlimited; (Prop. 64, Not available until 2023) Other licenses: 1 of 1 Item IX.C Communications Type 6 = Manufacturer 1. Type 7 = Manufacturer 2. Type 10A = Dispensary; No more than three retail sites. Type 8 = Testing. Type 11 = Distribution. Type 10 = Dispensary; General. Type 12 = Transporter. (Note: Prop 64 does not include this license) Type 13 = Micro-business 133 of 150

134 1 of 5 Item IX.D Communications 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 , 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 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 Cannabis Cultivation Ordinance/Licensing from CC Vice Chair Pappas Opposing Proposed 6 Location Limit BCC Meeting, June 27, Tax revenues- 180k sq ft (measure T, BCC )- $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. 134 of 150

135 2 of 5 Item IX.D Communications Cultivation Licensing and Selection Page 2 3. 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, Local Permits Required Commercial activity- BOTH state & local, permit. Grandfathering Facilities operating in compliance with local ordinances before Jan 1, 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 limit From: 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. 135 of 150

136 3 of 5 Item IX.D Communications Cultivation Licensing and Selection Page 3 Subject: Compromise Suggestion Cannabis Cultivation Ordinance Revisions BCC Action Item 44 From: Councilmember Harrison Date: 6/27/17 Based on description in item Planning Commission considered, can City Council adopt 3 rd 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 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. ( , planning commission vote) From: Cannabis Commission Date: 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 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 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); or B. Add quota no less than 9 locations, allowing for possibility of 180,000 sq.ft. Cultivation; or C. 3 rd 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. 136 of 150

137 4 of 5 Item IX.D Communications Cultivation Licensing and Selection Page 4 Subject: 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 Regulations From: vice chr. Pappas, Berk. cannabis com. Cultivation Ordinance 23E Medical Cannabis Cultivation A....Cultivation of medical cannabis defined, Chapter 12.26, Chapter & 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/Licensing A. Two-tier cultivation 1. Larger cultivations 15,000 to 22,000 sq ft / 6 location limit with UP or ZAB hearing B. 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 137 of 150

138 5 of 5 Item IX.D Communications Cultivation Licensing Page 5 COMMISSION SUMMARY From: Cannabis Commission Subject: Local Cultivator 3 rd Option Response Additions 1. Two-tier cultivation 2. Larger cultivations 15,000 to 22,000 sq ft / 6 location limit with UP or ZAB hearing 3. 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 cultivators or 180,000 sq ft area (6 x 15,000 sq ft) -90,000 sq ft = 90,000 sq ft local cultivators 5. Therefore 48,000 sq ft to 90,000 sq ft available to local small grower cooperatives cultivators 6. 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. 138 of 150

139 1 of 4 Item IX.E Communications Subject: CANNABIS NURSERY ORDINANCE LICENSING & SELECTION To: 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 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 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 (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 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) 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 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. 139 of 150

140 2 of 4 Item IX.E Communications Nurseries Page 2 Sonoma County Nursery Definition Nursery 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 District: 4 2. Berkeley Horticultural Nursery Address: 1310 McGee Ave, Berkeley, CA District: 5 3. East Bay Nursery Address:2332 San Pablo Ave, Berkeley, CA District: 2 4. Oaktown Native Plant Nursery Address:702 Channing Way, Berkeley, CA 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 District: 1 (Note: within 300 ft of Golden Gate Kids Preschool) 6. Westbrae Nursery Address: 1272 Gilman St, Berkeley, CA District: 1 (Note: within 700 ft of Redwood Garden Preschool) 7. Spiral Gardens Address: 2850 Sacramento St, Berkeley, CA District: 2 (Note: within 900 ft of San Pablo Park) 8. FLORA ARTE Address: 2070 M.L.K. Jr Way, Berkeley, CA 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 District: 6? 10. Oaktown Native Plant Nursery Address: 2410 Roosevelt Ave, Berkeley, CA District: 4 (Note: within 900 ft of Walden Center and School) 11. Succulent & Cactus Address: 1735 Delaware St, Berkeley, CA District: 1 (Note: Within 500ft of Ohlone Doggy Park) 12. The Gardener Address: 1836 Fourth St, Berkeley, CA 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 dispensaries From: Berkeleyside.com op-ed ( By: Rick Kelley, Matthew Witemyre, & Natalie Koski-Karell Date: 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). 140 of 150

141 3 of 4 Item IX.E Communications 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 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 communityfocused social-purpose cannabis organizations, and empower home cultivators to grow medicine at home by adding Nursery-Only Dispensaries to Chapter Rick Kelley, Matthew Witemyre, Natalie Koski-Karell are the owner-operators of the Solidarity Nursery Cooperative Subject: Ordinance to Clarify City Policy on Cannabis Nurseries 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 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 , 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. 141 of 150

142 4 of 4 Item IX.E Communications Nurseries Page 4 Subject: Retail Cannabis Nurseries in Berkeley From: urbanfarmconsult@gmail.com Date: November 12, 2017 State 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/Licensing From: Berkeley Cannabis Commission 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 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 SUMMARY 1. Ordinance licensing zones- 2. Wholesale / retail- definition, differences 3. No permit limit 4. Selection first come first serve 5. ZC or AUP 142 of 150

143 1 of 6 Item IX.F Communications Subject: CANNABIS DELIVERY-ONLY DISPENSING ORDINANCE/LICENSING & SELECTION To: Mayor and Berkeley City Council From: Berkeley Cannabis Commission Date: November 17,2017 CONSIDERATIONS Subject: Language related to deliveries, Delivery Definition From: MCRSA, Assembly Bill No. 266, CHAPTER (m) Delivery : commercial transfer of medical cannabis/medical cannabis products from dispensary, to amount determined by bureau to primary caregiver/qualified patient defined Sec 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 (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, 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 Delivery-Only Dispensaries Delivery requirements A. In addition to 6 existing Retail Dispensaries, under Berkeley Municipal Code Section , any Retail Dispensaries selected under Sec , unlimited number of D-oD permitted, on a first-come, first-served basis. B. Delivery-Only Dispensaries comply w/ requirements Chapter & 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. 143 of 150

144 2 of 6 Item IX.F Communications Delivery-only Dispensaries Page 2 3. 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 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 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. 144 of 150

145 3 of 6 Item IX.F Communications Delivery-only Dispensaries Page 3 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 145 of 150

146 4 of 6 Item IX.F Communications Delivery-only Dispensaries Page 4 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) or nazimi@ohanagardens.org 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 D.2 & 3 should crimes mentioned here be folded into Chapter 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 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 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. 146 of 150

147 5 of 6 Item IX.F Communications Delivery-only Dispensaries Page 5 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 outof-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, 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, deliveryonly 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. 147 of 150

148 6 of 6 Item IX.F Communications Delivery-only Dispensaries Page 6 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 B est 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., deliveryonly 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, 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 Adopt licensing selection process, commission recommendations 3 Attempt Counsil review and approval before January 1, of 150

149 1 of 1 Item IX.G Communications CURRENT CA STATE COLLECTIVE/COOPERATIVE REGULATIONS CA COLLECTIVE COOPERATIVE LAW (EXPIRING 2019) HEALTH AND SAFETY CODE - HSC DIVISION 10. UNIFORM CONTROLLED SUBSTANCES ACT [ ] CHAPTER 6. Offenses and Penalties [ ] ARTICLE 2.5. Medical Marijuana Program [ ] (a) Subject to subdivision (d), qualified patients, persons, w/ valid ID cards, & designated primary caregivers, qualified patients & persons with identification cards, who associate within CA in order collectively / cooperatively cultivate cannabis for medicinal purposes, not solely on that basis be subject to state criminal sanctions... (b) collective / cooperative manufactures medicinal cannabis products not, solely on that basis, be subject to state criminal sanctions if collective / cooperative abides by all requirements: (1) The collective or cooperative does either or both of the following: (A) Utilizes only manufacturing processes- either solventless or employ only nonflammable, nontoxic solvents generally recognized as safe... (B) Utilizes only manufacturing processes using solvents exclusively w/i closed-loop systemfollowing requrmts: (I) The system uses only solvents that are generally recognized as safe... (ii) System- designed - recapture & contain solvents during manufacturing process, & otherwise prevent off-gassing solvents into ambient atmosphere to mitigate risks - ignition & explosion, manufacturing process. (iii) Licensed engineer certifies- system commercially manufactured, safe for intended use, & built- recognized codes & generally accepted good engineering practices, (iv) certification document - signature & stamp - professional engineer, serial # extraction unit. (2) collective/cooperative approval - local fire official, closed-loop system, other equipment, extraction operation, facility. (3) Collective/cooperative meets fire, safety, & building code requirements 1- more following: (A) California Fire Code. (B) National Fire Protection Association (NFPA) standards. (C) International Building Code (IBC). (D) The International Fire Code (IFC). (E) Other standards - complying fire, safety, building codes, processing, handling, storage solvents/gasses. (4) collective/cooperative possesses valid seller s permit issued by State Board ofequalization. (5) collective/cooperative possesses valid local license, permit, other authorization - manufacturing medicinal cannabis products, in compliance w/ conditions imposed by city/county issuing local license, permit, etc. (c) this section, manufacturing = compounding, converting, producing, deriving, processing, preparing, directly/indirectly - chemical extraction/independently via chemical synthesis, medicinal cannabis products. (d) Section- remain until 1 yr after Bureau of Cannabis Control posts notice on Web site - licensing authorities have commenced issuing licenses. (e) Section- repealed 1 yr after date which notice posted - subdivision (d). 149 of 150

150 1 of 1 Item IX.H Communications BERKELEY LAND USE PERMIT TYPES Zoning Certificate A Zoning Certificate (ZC) serves as a record of the initial establishment of a use, or the construction of a structure, which is allowed as a matter of right. A ZC is generally issued at the Permit Services Center counter by Land Use Planning staff. For more information about ZCs, and Zoning Conformance review, please see Zoning Ordinance Chapter 23B.20. Administrative Use Permit An Administrative Use Permit (AUP) is a discretionary permit for the use of land or land development that is issued by the Zoning Officer. An AUP sometimes requires environmental review pursuant to the California Environmental Quality Act (CEQA). An AUP may be appealed to the Zoning Adjustments Board and its decision may be appealed to the City Council by any "aggrieved person or entity." For more details about AUP please see the Zoning Ordinance Chapter 23B.28. Please review the application submittal requirements (.pdf) for more information. Use Permit (Public Hearing) A Use Permit (UPPH) is a discretionary permit for the use of land or land development that is issued by the Zoning Adjustments Board after a public hearing. A UPPH often requires environmental review pursuant to the California Environmental Quality Act (CEQA). A UPPH may be appealed to the City Council by any aggrieved body. For more details about UPPH please see the Zoning Ordinance Chapter 23B.32. Please review the application submittal requirements (.pdf) for more information. 150 of 150

151 1 of 3 LATE COMMUNICATIONS Cannabis Commission MEMO To: Berkeley Cannabis Commission From: Commissioner Cecily Brewster Date: February 19, 2018 RE: Brewster to differentiate buffers for Retail businesses that sell non-smokeable products. Section 23C Retailer A. Retailer is defined in Section (section DD) B. Retailers may not be located within 600 feet of another Retailer or a public or private elementary, middle, or high school (emphasis added) Proposed Changes (For purposes of this exercise, I ve broken (B) into two parts): B.1. Retailers may not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued. B.2. Possibilities: Retailers shall not be located within a 600-foot radius of another Retailer that sells like cannabis products. [For purposes of this section, Retailers exclusively selling non-incendiary cannabis products including: cosmetic, tinctures, and edible products shall be distinguished from Retailers selling primarily dried flowers]. OR Retailers shall not be located within a 600-foot radius of another Retailer that sells like cannabis products, or within a 300-foot radius of any other cannabis Retailer. [For purposes of this section, Retailers exclusively selling non-incendiary cannabis products including: cosmetic, tinctures, and edible products shall be distinguished from Retailers selling primarily dried flowers]. OR Retailers shall not be located within a 300-foot radius of another Retailer. OR Retailers shall not be located within a -foot radius of another Retailer. OR Delete it all together Notes: - B.1. as drafted above is consistent with the State law. - at the time the license is issued is an important distinction that is missing from the current draft foot radius between Retailers is not mandated by the State.

152 2 of 3 LATE COMMUNICATIONS Related Statutes: Cannabis Commission Definitions K. Cannabis Products: shall have the same meaning as set forth in Section of the Business and Professions Code, as amended from time to time, and included both medicinal and adult-use Concentrates and Cannabis Products N. Concentrates: shall have the same meaning as set forth in Section P. Cosmetic Cannabis Product: means any article, or its components, intended to be rubbed, poured, sprinkled, or sprayed on, introduced to, or otherwise applied to, the human body, or any part of the human body, that is not an Edible Cannabis product and includes tinctures. U. Edible Cannabis Product: means a cannabis product that is intended to be used, in whole or in part, for human consumption, including but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section milk) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section of the Health and Safety Code, or a drug as defined by Section of the Health and Safety Code. DD defines Retailer as follows: 1. Retailer means both Retailers with a location to which Customers, Qualified Patients, or Primary Caregivers may come to acquire Cannabis or any other good or service, and Delivery-Only Retailers. 2. Retailer shall mean an ACB ( A Retailer ) or MCB ( M-Retailer ) that is authorized under Chapter 12.21, Title 23, and California law to dispense Cannabis at a non-residential location. 3. Delivery-Only Retailer is a Retailers that is limited to acquiring Cannabis and delivering it to its Qualified Patients California Business and Professions Code Section 26054(b): A premises licensed under this division shall not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued, unless a licensing authority or a local jurisdiction specifies a different radius. The distance specified in this section shall be measured in the same manner as provided in subdivision (c) of Section of the Health and Safety Code unless otherwise provided by law. FYI: Oakland Municipal Code D.1.: Unless the City Administrator in his/her discretion determines that the location will not impact the peace, order and welfare of the public evidence that the proposed location of such dispensary is not within six hundred (600) feet of public or private school providing instruction in kindergarten or grades 1 to 12, inclusive (but not including any private school in which education is primarily conducted in private homes), or youth center. The proposed dispensary or delivery only dispensary must be located in a commercial or industrial zone, or its equivalent as may be amended, of the City

153 3 of 3 LATE COMMUNICATIONS Cannabis Commission ADDITIONAL UNRELATED INFORMATION: As we are discussing the selection process and I happened across my hometown (Portland, Oregon) regulations and thought I d share. Marijuana License Team (MLT): 1. The Cannabis Program within the Office of Neighborhood Involvement will convene a Marijuana License Team (MLT) with the following City Bureaus invited: a) Bureau of Development Services; b) Portland Police Bureau; c) Portland Fire and Rescue; d) Bureau of Revenue and Financial Services; e) Office of Neighborhood Involvement Crime Prevention. 2. The purpose of the MLT will be to: a) Provide input on application review in determining compliance with City Regulations; and b) Substantiate, investigate, and evaluate complaints received.

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