Cannabis Ordinance Update Meeting - Welcome to the April 19th, 2021
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Welcome to the April 19th, 2021
Cannabis Ordinance Update Meeting
The Meeting will begin shortly
• This meeting is being held via Zoom Webinar (6:00 – 7:30 pm)
• If you would like to comment or ask a question, please type your question
in the Q&A in Zoom. If you are joining by phone, you can also comment
during the open forum, please use the 'raise hand' feature by clicking *9
on your phone.
• You may also email Counter.Public@sanjoseca.gov for any technical issues.
4
Zoom Functions & Public Comments
If you are joining us by electronic device and
wish to comment, type your questions in
You will all be placed on mute until we open the “Q&A” feature located at the bottom of
the meeting for public comment. your screen, you can ask questions
throughout the meeting and we will try to
answer them all during the open forum.
If you are joining us by phone and wish to
Speakers will be called upon by staff and
speak during the open forum, you will be
unmuted to speak. Each speaker will be
prompted to raise your hand (press *9 on
limited to two minutes of speaking time
your phone) when we open up the meeting
each time they are called.
for public comment.
General Code of Conduct • Participants will refrain from behavior which disrupts the public meeting or which may intimidate others who wish to voice their opinions. This will include making loud noises, clapping, shouting, booing, hissing or engaging in any other activity in a manner that disrupts or impedes the orderly conduct of the meeting. • Harassment of meeting participants including City staff will not be tolerated in any form. If a participant engages in harassing behavior, City Staff will end the meeting or remove the participant from the Zoom Meeting call. • Finally, please be patient with us, the virtual community meeting format is new and there may be some bumps in the road but we are going to do our best to collect your comments and questions.
CITY COUNCIL POLICY PRIORITY #6 Cannabis Land Use and Regulation Community Outreach Meeting April 19, 2021 Wendy Sollazzi, Division Manager
Agenda
1. Existing Program Overview
2. Council Direction
3. Draft Policy Proposal
4. Survey Results
5. Discussion
81. Existing Program
OverviewSan José Cannabis Program Timeline
June 2014 Dec. 2015 Nov. 2016
Nov. 2017 Jan. 2019
Nov. 2010 Council California March 2019
16 medical Council Council adds
SJ Voters approves voters Council
collectives authorizes cannabis
approve medical approve approves
achieve Registered manufacture,
Measure U marijuana Prop. 64, Cannabis
registration Collectives to distribution,
(Marijuana Zoning & legalizing Equity
(of 65 sell adult use & testing to
Business Tax) Regulatory cannabis for Ordinance
applicants) cannabis program
program those over 21
10Current Program
16 Registered Dispensaries
• 1 retail location (open to public)
• Up to 2 cultivation/
manufacturing sites (not public)
• Annual City Registration
required
• Annual State License required
• Delivery allowed
11Cannabis Business Tax Revenues
Revenues Program Costs
2017-2018 2018-2019 2019-2020 • $2.4 million
$13.0 $15.9 $15.9 • 8.15 FTEs
million million million
2019-2020 Updated Tax Rates
Retail /
Category Cultivation Manufacturing Testing Distribution Delivery
Previous Rates 10% 10% N/A 10% 10%
New Rates 4% 3% 0% 2% 10%
122. Council Direction
Council Direction
Three Categories of Council Direction on Cannabis:
Council Priority #6: Cannabis Land Use and Regulation
Council Priority #8: Cannabis Equity Program
Greenlit Council Direction
14Council Direction: Cannabis Land Use and
Regulation
Direction Source
Evaluate Title 20 as it pertains to the cannabis industry, and the feasibility Foley Policy Priority Nomination (3.3 on 3/5/2019)
of increasing the amount of available cannabis licenses to allow
qualifying dispensary operators to expand or for entrepreneurs to open
new businesses.
Assess allowing the sale of individual licenses and businesses. 2c in Peralez/Carrasco Memo (4.1 on 1/15/2019)
Assess expanding “black out” areas in North and South San José for all 2d in Peralez/Carrasco Memo (4.1 on 1/15/2019)
cannabis uses, not only manufacturing, distribution and testing.
Creating an equity applicant program as outlined by the State of 2h in Peralez/Carrasco Memo (4.1 on 1/15/2019)
California in SB 1294.
[Only the portion of the equity program that relates to land use is
included in Priority #11. The remainder is in Priority #13.]
Present options for the implementation of a cap on the number of retail 2c in Esparza Memo (4.1 on 1/15/2019)
Cannabis Collectives/Businesses in Council District 7.
Assess whether to allow delivery-only dispensaries. Page 4 of Staff Supplemental dated 3/4/2019 for 3.3 on
3/5/2019 CC.
15Council Direction: Cannabis Equity Program
Direction Source
Create an equity applicant program as outlined by the State of California in SB 1294. 2h in Peralez/Carrasco Memo (4.1 on
[Only non-land use components. Land use-related equity issues are under Priority 1/15/2019)
#11.]
16Council Direction: Greenlit Cannabis Direction
Direction Source
Monitoring of the retail tax rate to stay competitive and taking into consideration 2a in Peralez/Carrasco Memo (4.1 on
cannabis business growth and risk assessment. 1/15/2019)
[Handled through PSFSS MFR]
Allowing the current 16 cannabis businesses to open a second location. 2b in Peralez/Carrasco Memo (4.1 on
1/15/2019)
Changing the audit requirement from mandatory to random audits on varying years 2e in Peralez/Carrasco Memo (4.1 on
or as a punitive action. 1/15/2019)
Impact of cannabis waste and a revise for a more stringent cannabis disposal policy 2f in Peralez/Carrasco Memo (4.1 on
1/15/2019)
Report back to the Community and Economic Development Committee in winter 1 in Diep Memo (4.1 on 1/15/2019)
2020 on how many cannabis manufacturing, distribution, and testing business
permits have been issued, any problems arising from the industry, and potential
improvements to the policy recommendations made today.
173. Draft Policy Proposal
Phasing of New Retail Registrations
Policy Feature Current Rules for Relocation and New Equity
Cannabis Retail Registrants
Who Can Apply? • Existing Businesses may relocate
Registration is to new zoning districts
closed. • Qualified Equity Applicants may
apply
How many new
registrations are 0 5*
available?
What kind of
businesses are None Storefront Retail and Delivery
allowed to apply?
Total Retail
Registrations Allowed 16 21
*Relocations are not counted against the cap, but all other registrations must remain within the cap
DRAFT POLICY PROPOSAL 04/19/2021 19Proposed Land Use Rules: Summary New retail storefront registrations and retail storefront relocations would be allowed under revised land use rules, with the following characteristics: • Allowed in retail zoning districts instead of industrial zoning districts • Reduced sensitive receptor setbacks • Increased distances between retail storefront dispensaries • Excluded census tracts New Delivery-Only Businesses would be allowed in industrial areas under the same rules as Cannabis Distribution Businesses. DRAFT POLICY PROPOSAL 04/19/2021 20
Proposed Land Use Rules: Retail Storefront Zoning
Proposed Allowed Zoning Districts
Existing Allowed Zoning Districts
• Commercial General
• Combined Industrial/Commercial
• Light Industrial
• Commercial Neighborhood
• Heavy Industrial
• Commercial Pedestrian
• Combined Industrial/Commercial
• Downtown Primary Commercial
• Industrial Park
• Downtown Primary Commercial
• Downtown Primary Commercial, 2nd
Neighborhood Transition 1
Story Only
• Main Street Commercial
• Main Street Ground Floor Commercial
• Applicable Planned Development districts
• Blackout areas would be lifted for these
zoning districts.
DRAFT POLICY PROPOSAL 04/19/2021 21Proposed Land Use Rules: Retail Storefront Sensitive
Receptors
Existing Sensitive Receptors Proposed Sensitive Receptors
1,000 feet from: 1,000 feet from:
public or private preschool, elementary school, schools, colleges, child day care centers, youth
secondary school, Child Day Care Center, community centers, recreation centers and community centers,
or recreation center, parks, libraries parks, libraries
500 feet from: 500 feet from:
substance abuse rehabilitation center, Emergency Emergency residential shelters, substance abuse
Residential Shelter rehab centers
150 feet from: 150 feet from:
religious assembly, adult day care Residential uses
150 feet from: 1,000 feet from:
Any residential use (property line to property line) Another Dispensary
50 feet from:
Another Dispensary (property line to property line)
DRAFT POLICY PROPOSAL 04/19/2021 22Proposed Land Use Rules: Delivery-Only
Proposed Allowed Zoning Districts Proposed Sensitive Receptors
• Light Industrial 600 feet from:
• Combined Industrial/Commercial Schools, child day care,
• Industrial Park community/recreational facility, park,
library
• Blackout areas would be lifted for
these zoning districts. 150 feet from:
Residential
DRAFT POLICY PROPOSAL 04/19/2021 234. Survey Results
5. Discussion
Contact Info Division of Cannabis Regulation Wendy Sollazzi, Division Manager Email: Wendy.Sollazzi@sanjoseca.gov Planning Division Alexandre Hughes, Planner I Email: Alexandre.Hughes@sanjoseca.gov
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