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Mirkarimi Medical Cannabis Act proposal 6-28-05

Unofficial Summary by Michael R. Aldrich

Official Summary (page 1 of the bill)

Amending the SF Planning Code to:
Define medical cannabis dispensaries (MCDs)
Prohibit dispensaries in residential-house and residential-mixed zoning districts.
Permit dispensaries elsewhere subject to restrictions based on a dispensary's proximity to schools, community centers and institutions for the treatment of addictive diseases. Require adequate ventilation for dispensaries.
Prohibit the sale or distribution of alcohol at dispensaries.
Require Planning Department notice to interested individuals and properties within 300 feet of proposed dispensaries.
Require dispensaries operating before April 1, 2005, to obtain a permit within 18 months of the effective date of this legislation or cease operation.
Require a notice that permits for dispensaries are not intended to and do not authorize the violation of State or Federal law.
Make environmental findings and findings of consistency with the priority policies of the Planning Code Section 101.1 and the General Plan.

Amending the San Francisco Health Code to
Set medical marijuana possession guidelines;
Require a permit, business license, and business registration certificate for a medical cannabis dispensary;
Set out the application process for a medical cannabis permit; Set out operating requirements for medical cannabis dispensaries;
Set out the administrative process for imposing penalties and/or permit suspension or revocation for violations.

Amending the SF Traffic Code to
create an infraction for double parking in front of a MCD ($100 fine).

Amending the SF Business & Tax Regulations to
authorize the Department of Health to issue medical cannabis dispensary permits
and to set out the license fees for medical cannabis dispensaries.

Sec. 1c) terminates the Interim Moratorium and establishes this ordinance as permanent.

Sec. 2) amends the Planning Code zoning regulations to include MCDs as follows:

Sec. 209.3 Institutions to include:
(k) Medical cannabis dispensary as defined by Section 3201(f) of the San Francisco Health Code provided that

(a) the MCD has applied for a permit from the DPH;

(b) if cannabis smoked on site, MCD must be 1,000 feet from an elementary or secondary school, community clubhouse, neighborhood center or other community cultural center;

(c) if cannabis smoked on site, provide adequate ventilation;

(d) If cannabis is not smoked on site, 500 feet from school, community clubhouse, neighborhood center, or other community cultural center;

(e) regardless of whether cannabis smoked on site, 300 feet from an institution for the treatment of addictive diseases;

(f) no alcohol sold or distributed on the premises for on or off-site use;

(g) upon acceptance of a complete application for a building permit for a MCD the Planning Department shall cause a notice to be posted on the proposed site and shall cause written notice to be sent to all properties within 300 feet (in the block or across the street) and to individuals or groups requesting notification.

(h) all building permit applications shall be held for a period of 30 calendar days from the date of the mailed notice to allow review by neighbors; and
(i) after this 30 day period, all requests for Planning Commission review of a building permit application for a medical cannabis dispensary shall be processed in accordance with Section 312(e) of this Code;

(j) MCDs that can demonstrate they were in operation prior to April 1, 2005 have 18 months from the effective date of this legislation to obtain a permit or must cease operation and any dispensary operating in a Residential-House or Residential-Mixed district of the City or which began operation after April 1, 2005, must immediately cease operation;

(k) Issuance of permit does not authorize violation of State or Federal law.

Sec. 217. Institutions. Amended to include MCDs (SAME AS ABOVE)
Identical language to amend Sec. 217 the same as Sec. 209.3 above.

(Sec. 2) Zoning Control Tables by District

MCDs are permitted in the following districts, on the first story.
Sec. 710. Neighborhood Commercial Cluster District NC-1
Sec. 711. Small-scale Neighborhood Commercial District NC-2
Sec. 712. Moderate-scale Neighborhood Commercial District NC-3
Sec. 713. Neighborhood Commercial Shopping Center District NC-S
Sec. 714. Broadway Neighborhood Commercial District
Sec. 715. Castro Street Neighborhood Commercial District
Sec. 716. Inner Clement Street Neighborhood Commercial District
Sec. 717. Outer Clement Street Neighborhood Commercial District
Sec. 718. Upper Fillmore Street Commercial District
Sec. 719. Haight Street Neighborhood Commercial District
Sec. 720. Hayes-Gough Neighborhood Commercial District
Sec. 721. Upper Market Street Neighborhood Commercial District
Sec. 722. North Beach Neighborhood Commercial
Sec. 723. Polk Street Neighborhood Commercial
Sec. 724. Sacramento Street Neighborhood Commercial District
Sec. 725. Union Street Neighborhood Commercial
Sec. 726. Valencia Street Neighborhood Commercial District
Sec. 727. 24th Street-Mission Neighborhood Commercial District
Sec. 728. 24th Street-Noe Valley Neighborhood Commercial District
Sec. 729. West Portal Avenue Neighborhood Commercial
Sec. 730. Inner Sunset Neighborhood Commercial District
Sec. 810. Chinatown Community Business District
Sec. 811. Chinatown Visitor Retail District Zoning
Sec. 812. Chinatown Chinatown Residential Neighborhood
Sec. 813. Red-Residential Enclave District
Sec. 814. SPD- South Park District
Sec. 815. RSD- Residential/Service Mixed Use District
Sec. 816. SLR- Service/Light Industrial/Residential Mixed Use District
Sec. 817. SLI- Service/Light Industrial District
Sec. 818. SSO- Service/Secondary Office District

(Sec. 2) Sec. 790.141 MEDICAL CANNABIS DISPENSARY (pp. 28-29)
A medical cannabis dispensary shall be as defined by Section 3201(1) of the San Francisco Health Code provided that: (Same as above, page 2 under Sec. 209.3)

Sec. 890.131, MEDICAL CANNABIS DISPENSARY (SAME AS ABOVE) pp.29-31.
(Identical language to amend Sec. 890.131 to match Sec. 790.141 and Sec. 209.3 above.)

Section 3. Environmental Review. The Planning Department concluded environmental review of this ordinance pursuant to the California Environmental Quality Act Documentation or that review is on file with the clerk of the Board of Supervisors in File No. ________.

Section 4. The San Francisco Health Code is hereby amended by adding Article 32, Sections 3200 through 3220, to read as follows;

Sec. 3200. Title. This article shall be cited as the “Medical Cannabis Act.”

Sec. 3201. Definitions. For the purposes of this article;

(a) “Cannabis” means marijuana and all parts of the plant Cannabis, 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 includes marijuana infused in foodstuff. 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 seeds of the plant are incapable of germination

(b) “City” means the City and County of San Francisco

(c) “Convicted” means having pled guilty or having received a verdict of guilty, including a verdict following a plea of nolo contendere, to a crime.

(d) “Director” means the Director of Public Health or any individual designated by the Director to act on his or her behalf, including but not limited to inspectors.

(e) “Excessive profits,” means the receipt of consideration of a value substantially higher than the reasonable costs of operating the facility.

(f) “Medical cannabis dispensary” means any association, cooperative, or collective of four or more qualified patients or primary caregivers with a valid identification card that facilitates the lawful distribution of medical cannabis.

(g) “Medical Cannabis Identification Card” or “Identification Card” means a document issued by the State Department of Health Services pursuant to California Health and Safety Code Sections 11362.7 et seq. or the City pursuant to Health Code Article 28 that identifies a person authorized to engage in the medical use of marijuana and the person’s designated primary caregiver, if any, or identifies a person as a primary caregiver for a medical marijuana patient.

(h) “Permittee” means the owner, proprietor, manager, or operator of a medical cannabis dispensary or other individual, corporation, or partnership who obtains a permit pursuant to this Article.

(i) “Primary Caregiver” shall have the same definition as California Health and Safety Code Section 11362.7 et seq., and as may be amended, and which defines “primary caregiver” as a individual designated by a qualified patient or by a person with an identification card, who has consistently assumed responsibility for the housing, health or safety of that patient or person, and may include a licensed clinic, a licensed health care facility, a residential health care facility, a hospice, or a home health agency as allowed by California Health and Safety Code 11362.7(d)(1-3).

(j) “Qualified patient” shall have the same definition as California Health & Safety Code Section 11362.7 et seq., and as may be amended, which states that a “qualified patient” means a person who is entitled to the protections of California H&S Code Section 11362.5, but who does not have a valid medical cannabis identification card. For the purposes of this article, a “qualified patient who has a valid identification card” shall mean a person who fulfills all of the requirements to be a “qualified patient” under California H&S Code Section 11362.7 et seq. and also has a valid medical cannabis identification card.

Sec. 3202. MEDICAL MARIJUANA GUIDELINES.

Pursuant to the authority granted under Health & Safety Code section 11362.77, the City and County of San Francisco enacts the following medical marijuana guidelines:

(a) A qualified patient, person with a valid identification card, or primary caregiver may possess no more than one pound of dried marijuana per qualified patient. In addition, a qualified patient or primary caregiver may also maintain no more than twelve (12) mature or twenty-four (24) immature marijuana plants per qualified patient.

(b) If a patient has a doctor’s recommendation that this quantity does not meet the qualified patient’s medical needs, the qualified patient (etc) may possess an amount of marijuana consistent with the patient’s needs.

(c) Only the dried mature processed flowers of female cannabis plant or the plant conversion shall be considered when determining allowable quantities of marijuana under this section.

Sec. 3203. PERMIT REQUIRED FOR MEDICAL CANNABIS DISPENSARY.
Except for research facilities, it is unlawful to operate or maintain, or to participate therein, or to cause or to permit to be operated or maintained, any medical cannabis dispensary without first obtaining a permit pursuant to this article.

Sec. 3204. APPLICATION FOR MEDICAL CANNABIS DISPENSARY PERMIT.

(a) Every applicant for a medical cannabis dispensary permit shall file an application with the Director upon a form provided by the Director and pay a non-refundable permit application fee of $7,396.00 to cover the costs to all City departments of investigating and processing the application and any applicable surcharges, exclusive of filing fees for appeals before the Board of Appeals.

(b) The permit application form shall provide clear notice to applicants that the Fire Code includes a requirement, among others that may apply, that an establishment obtain a place of assembly permit if it will accommodate 100 or more persons based on its square footage.

(c) The applicant for a MCD permit shall set forth under penalty of perjury, the following on the permit application:

(1) The proposed location of the MCD;

(2) The name & residence address of each person applying for the permit and any other person who will be engaged in management or operation of the MCD;

(3) A unique identifying number from at least one government-issued form of identification, such as a social security card, a state driver’s license or identification card, or a passport for of each (sic) person applying for the permit and any other person who will be engaged in management or operation of the MCD;

(4) Written evidence that each person applying for the permit and any other person who will be engaged in management or operation of the MCD is at least 18 years of age;

(5) All felony convictions of each person applying for the permit and any other person who will be engaged in the management or operation of the MCD;

(6) Whether cultivation of medical cannabis shall occur on the premises of the MCD;

(7) Whether smoking of medical cannabis shall occur on the premises of the MCD;

(8) Whether food will be prepared, dispensed or sold on the premises of the MCD; and

(9) Proposed security measures for the MCD, including lighting and alarms, to insure the safety of persons and to protect the premises from theft.

(d) TYPO- this section (d) is missing on the original.
(e) If the applicant is a corporation, give its name exactly as shown in its articles of incorporation, and the names and residence addresses of each of the officers, directors and each stockholder owning more than 10 percent of its stock of the corporation. If the applicant is a partnership, the application shall set forth the names and residence address of each of the partners. If one or more of the partners is a corporation, the provisions of this Section pertaining to a corporation apply.

(f) The Director is hereby authorized to require in the permit application any other information including, but not limited to, any information necessary to discover the truth of the matters set forth in the application.
(g) Each person applying for the permit and any other person who will be engaged in management or operation of the MCD shall submit with the permit application a signed waiver authorizing the San Francisco Police Department to perform a thorough and complete criminal and employment background check.

Sec. 3205. REFERRAL TO OTHER DEPARTMENTS (INSPECTIONS)
(a) Upon receiving a completed MCD permit application and permit application fee, the Director shall immediately refer the application to the Planning Department, Department of Building Inspections, Police Department and Fire Department.
(b) Said departments shall inspect the premises proposed to be operated as a medical cannabis dispensary and confirm the information provided in the application and shall make separate written recommendations to the Director concerning compliance with the codes that they administer. Specifically, the Police Department shall perform a thorough and complete criminal and employment background check on each person applying for the permit and any other person who will be engaged in management or operation of the MCD. The Department of Building Inspections shall, in consultation with the Police Department, approve the security measures for the MCD, including lighting and alarms, to insure the safety of persons and to protect the premises from theft. Departments’ written approval, rejection and/or recommendations regarding the permit shall be delivered to the Director.

Sec. 3206. NOTICE OF HEARING ON PERMIT APPLICATION.
(a) After receiving written approval of the permit application from other City Departments as set out in Section 3205, the Director shall fix a time and place for a public hearing on the applications, not be more than 45 days after the receipt.
(b) No fewer than 10 days before the date of the hearing, the permit applicant shall cause to be posted a notice of such hearing in a conspicuous place on the property at which the proposed MCD is to be operated. The applicant shall comply with any requirements regarding the size and type of notice specified by the Director. The applicant shall maintain the notice as posted the required number of days.

Sec. 3207. ISSUANCE OF MEDICAL CANNABIS DISPENSARY PERMIT.
(a) Within 14 days following a hearing, the Director shall either issue the permit or mail a written statement of his or her reasons for denial thereof to the applicant.
(b) In recommending the granting or denying of such permit and in granting or denying the same, the Director, shall give particular consideration to the capacity, capitalization, complaint history of the applicant and any other factors that in their discretion he or she deems necessary to the peace and order and welfare of the public;
(c) No MCD permit shall be issued if the Director finds:
(1) That the applicant has provided materially false documents or testimony, or
(2) That the applicant has not complied fully with the provisions of this Article; or
(3) That the operation as proposed by the applicant, if permitted, would not have complied with all applicable laws, including, but not limited to, the Building, Planning, Housing, Police, Fire, and Health Codes of the City, including the provisions of this Article and regulations issued by the Director pursuant to this Article; or
(4) That the permit applicant or any other person who will be engaged in management or operation of the MCD has been convicted of a violent felony within the State of California or a crime that would have constituted a violent felony if committed with the State of California. However, the Director may issue a MCD permit to any individual convicted of such a crime if the Director finds that the conviction occurred at least five years prior to the date of the permit application or more than three years have passed from the date of the termination of a penalty for such a conviction to the date of the permit application and, that no subsequent felony convictions of any nature have occurred; or
(5) That a permit for the operation of a MCD, which permit had been issued to the applicant or to any other person who will be engaged in management or operation of the MCD, has been revoked, unless more than five years have passed from the date of the revocation to the date of the application; or
(6) That the City has revoked a permit for the operation of a business in the City which permit has been issued to the applicant or to any other person who will be engaged in the management or operation of the MCD unless more than five years have passed from the date of the application to the date of the revocation.
(d) The Director shall notify the Police Department of all approved permit applications.
(e) The permit shall contain the following language, “issuance of this permit by the City and County of San Francisco is not intended to and does not authorize the violation of State or Federal law.”

Sec. 3208. OPERATING REQUIREMENTS FOR MCDs.

(a) Medical cannabis dispensaries shall meet all the operating criteria for the dispensing of medical cannabis as is required pursuant to California Health & Safety Code Section 11362.7 et seq. by this Article, and by the Director’s administrative regulations for the permitting and operation of MCDs.

(b) MCDs shall be operated only as collectives or cooperatives in accordance with CH&S Code Sec. 11362.7 et seq. All patients or caregivers served by a MCD shall be members of that MCD’s collective or cooperative.

(c) The MCD shall receive only compensation for actual expenses, including reasonable compensation incurred for services provided to qualified patients with a valid identification card or primary caregivers with a valid identification card to enable that person to use or transport marijuana pursuant to CH&S Code Section 11362.7 et seq., or for payment for out-of-pocket expenses incurred in providing those services, or both. Sale of medical cannabis for excessive profits is explicitly prohibited. Each MCD shall maintain records demonstrating that it complies with the requirements of this paragraph. Each MCD shall make these records available for inspection, examination, and copying by the Department upon request by the Department. Such records shall not include patient records or materials identifying individual patients.

(d) MCDs shall sell or distribute only cannabis manufactured and processed in the State of California that has not left the State before arriving at the MCD.

(e) Unlawful for any person or association operating a MCD to permit any breach of peace therein or any disturbances of public order or decorum by any tumultuous, riotous or disorderly conduct, or otherwise, or to permit such dispensary to remain open, or patrons to remain upon the premises, between the hours of 12 a.m. and 7 a.m. the next day.

(f) MCDs may not dispense more than one pound of dried marijuana per qualified patient or primary caregiver per visit to the MCD. MCDs may not maintain more than twelve (12) mature or twenty-four (24) immature marijuana plants per qualified patient or primary caregiver. MCDs shall use medical cannabis identification card numbers to ensure compliance with this provision. (If patient has doctor’s recommendation for more, MCD can dispense more to that patient.) (Only the dried mature processed flowers of female cannabis plant or the plant conversion shall be considered when determining allowable quantities of marijuana.)

(g) No medical cannabis shall be smoked, ingested or otherwise consumed in the public right of way within fifty (50) feet of a MCD. Any person violating this provision shall be deemed guilty of an infraction and upon the conviction thereof shall be punished by a fine of $100. MCDs shall post a sign near their entrances and exits providing notice of this policy.

(h) Any cultivation of medical cannabis on the premises of the MCD must be conducted indoors.

(i) All sales and dispensing of medical cannabis shall be conducted on the premises of the MCD. However, delivery of cannabis to qualified patients with valid identification cards and primary caregivers with a valid identification card outside the premises of the MCD is permitted if the person delivering the cannabis is a qualified patient with a valid identification card or primary caregiver with a valid identification card who is a member of the MCD.

(j) The MCD shall not hold license to sell alcoholic beverages, or operate a business that sells alcoholic beverages. Nor shall alcoholic beverages be consumed on the premises or on in (sic) the public right of way within fifty feed(sic) of a MCD.

(k) In order to protect confidentiality, the MCD shall maintain records of all qualified patients using only the identification card number issued by the State or City.
(l) The MCD shall provide litter removal services twice each day of operation on and in front of the premises and, if necessary, on public sidewalks within hundred (sic) (100) feet of the premises.

(m) The MCD shall provide adequate security on the premises, including lighting and alarms, to insure the safety of persons and to protect the premises from theft.

(n) Signage for the MCD shall be limited to one wall sign not to exceed ten square feet in area, and one identifying sign not to exceed two square feet in area; such signs shall not be directly illuminated.

(o) The MCD shall provide the Director, the chief of police and all neighbors located within fifty (50) feet of the establishment with the name, phone number and facsimile number of an on-site community relations staff person to whom one can provide notice if there are operating problems associated with the establishment. The MCD shall make every good faith effort to encourage neighbors to call this person to try to resolve operating problems, if any, before any calls or complaints are made to the police department or other City officials.

(p) MCDs may sell or distribute cannabis only to members of the MCD’s collective or cooperative and only to those members with a medical cannabis identification card.

(q) Unlawful for any MCD to employ anyone who is not at least 18 years of age.

(r) It shall be unlawful for any MCD to allow any person who is not at least 18 years of age on the premises during hours of operation unless that person is a qualified patient with card or primary caregiver with card.

(s) MCDs that display or sell drug paraphernalia must do so in compliance with CH&S Code Section 11364.5 and 11364.7.

(t) MCDs shall maintain all scales and weighing mechanisms on the premises in good working order. Scales and weighing mechanisms used by MCDs are subject to inspection and certification by the Director.

(u) MCDs that prepare, dispense or sell food must comply with and are subject to the provisions of all relevant State and local laws regarding the preparation, distribution and sale of food.

(v) The MCD shall meet any specific, additional operating procedures and measures as may be imposed as conditions of approval by the Director in order to insure that the operation of the MCD is consistent with protection of the health, safety and welfare of the community, qualified patients with a valid identification card and primary caregivers with a valid identification card, and will not adversely affect surrounding uses.

Sec. 3209. PROHIBITED OPERATIONS.
All MCDs operating in violation of CH&S Code Sections 11362.5 and 11362.7 et seq., or this Article are expressly prohibited. No entity that distributed medical cannabis prior to the enactment of this Article shall be deemed to have been a legally established use under the provisions of this Article, and such use shall not be entitled to claim legal nonconforming status for the purposes of permitting.

Sec. 3210. DISPLAY OF PERMIT.
Every permit to operate a MCD shall be displayed in a conspicuous place within the establishment so that it may be readily seen by individuals entering the premises.

Sec. 3211. SALE OR TRANSFER OF PERMITS.
(a) Upon sale, transfer or relocation of a MCD, the permit and license for the establishment shall be null and void unless another permit has been issued pursuant to this Article, provided, however, that upon the death or incapacity of the permittee, the MCD may continue in business for six months to allow for an orderly transfer of the permit.
(b) If the permittee is a corporation, a transfer of 25% of the stock ownership of the permittee shall be deemed to be a sale or transfer and the permit and license for the establishment shall be null and void unless a permit has been issued pursuant to this Article; provided, however, that this subsection shall not apply to a permittee corporation, the stock of which is listed on a stock exchange in this state or in the City of New York, State of New York, or which is required by law to file periodic reports with the Securities and Exchange Commission.

Sec. 3212. RULE AND REGULATIONS.
(a) The Director shall issue rules and regulations regarding the conduct of hearings concerning the denial, suspension or revocation of permits and the imposition of administrative penalties on MCDs.
(b) The Director may issue regulations governing the operation of MCDs. These regulations shall include, but need not be limited to;
(1) A requirement that the operator provide patients and customers with information regarding activities that are prohibited on the premises.
(2) A requirement that the operator prohibit patrons from entering or remaining on the premises if they are in possession of or are consuming alcoholic beverages, or are under the influence of alcohol;
(3) A requirement that the operator require employees to use protective gloves when handling cannabis;
(4) A description of the size and type of notice of hearing to be posted in a conspicuous place on the property at which the proposed MC is to be operated and the number of days said notice shall remain posted; and
(5) A description of the size and type of sign posted near the entrances and exits of MCDs providing notice that no medical cannabis shall be smoked, ingested or otherwise consumed in the public right of way within fifty (50) feet of a MCD and that any person violating this policy shall be deemed guilty of an infraction and upon the conviction thereof shall be punished by a fine of $100.

(c) Failure by an operator to do either of the following shall be grounds for suspension or revocation of a MCD permit: (1) comply with any regulation adopted by the Director under this Article, or (2) give free access to areas of the establishment to which patrons have access during the hours the establishment is open to the public, and at all other reasonable times, at the direction of the Director, or at the direction of any City peace, fire, planning, or building official or inspector for inspection with respect to the laws that they are responsible for enforcing.

Sec. 3213. INSPECTION AND NOTICES OF VIOLATION.
(a) The Director may inspect each MCD regularly and based on complaints, but in no event fewer than two times annually. If informal attempts by the Director to obtain compliance fail, the Director may take the following steps:
(1) The Director may send written notice of noncompliance with the provisions of this Article to the operator of the MCD. The notice shall specify the steps that must be taken to bring the establishment into compliance. The notice shall specify that the operator has 10 days in which to bring the establishment into compliance.
(2) If the Director inspector determines that the operator has corrected the problem and is in compliance with the provisions of this Article, the Director may so inform the operator.
(3) If the Director determines that the operator failed to make the necessary changes in order to come into compliance with the provisions of this Article, the Director may issue a notice of violation.
(b) The Director may not suspend or revoke a permit issued pursuant to this Article, impose an administrative penalty, or take other enforcement action against a MCD until the Director has issued a notice of violation and provided the operator an opportunity to be heard and respond as provided in Section 3216.
(c) If the Director concludes that announced inspections are inadequate to ascertain compliance with this Article (based on public complaints or other relevant circumstances), the Director may use other appropriate means to inspect the areas of the establishment to which patrons have access. If such additional inspection shows noncompliance, the Director may issue either a notice of noncompliance or a notice of violation, as the Director deems appropriate.
(d) Every person to whom a permit shall have been granted pursuant to this Article shall post a sign in a conspicuous place in the MCD. The sign shall state that it is unlawful to refuse to permit an inspection by the DPH, or any City peace, fire, planning, or building official or inspector, conducted during the hours the establishment is open to the public and at all other reasonable times, of the areas of the establishment to which patrons have access.
(e) Nothing in this Section shall limit or restrict the authority of a police officer to enter premises licensed or permitted under this Article (i) pursuant to a search warrant signed by a magistrate and issued upon a showing of probable cause to believe that a crime has been committed or attempted (ii) without a warrant in the case of an emergency or other exigent circumstances, or (iii) as part of any other lawful entry in connection with a criminal investigation or enforcement action.

Sec. 3214. VIOLATIONS AND PENALTIES.
(a) Any person who or dispensary that violates any provision of this Article or any rule or regulation adopted pursuant to this Article may, after being provided notice and an opportunity to be heard, be subject to an administrative penalty not to exceed $1,000 for the first violation of a provision or regulation in a 12-month period, $2,500 for the second violation of the same provision or regulation in a 12-month period, and $5,000 for the third and subsequent violations of the same provision or regulation in a 12-month period.
(b) The Director may not impose an administrative penalty or take other enforcement action under this Article against a MD until the Director has issued a notice of violation and provided the operator an opportunity to be heard and respond as provided in Section 3216.
(c) Nothing herein shall prohibit the District Attorney from exercising the sole discretion vested in that officer by law to charge an operator, employee, or any other person associated with a MC with violating this or any other local or state law.

Sec. 3215. REVOCATION AND SUSPENSION OF PERMIT.
(a) Any permit issued for a MCD may be revoked, or suspended for up to 30 days, by the Director if the Director determines that:
(1) the operator or any employee has violated any provision of this Article or any regulation issued pursuant to this Article;
(2) the operator has violated any other local law, or any State law;
(3) the operator has engaged in any material misrepresentation when applying for a permit;
(4) the MCD is being managed, conducted, or maintained without regard for the public health or the health of patrons;
(5) the operator has refused to allow any duly authorized City official to inspect the premises or the operations of the MCD;
(6) based on a determination by another City department, including the Department of Building Inspections, the Fire Department, the Police Department, and the Planning Department, that the MD is not in compliance with the laws under the jurisdiction of the department.

(b) The Director may not suspend or revoke a permit issued pursuant to this Article or take other enforcement action against a MCD until the Director has issued a notice of violation and provided the operator an opportunity to be heard and respond as provided in Section 3216.
(c) Notwithstanding paragraph (b), the Director may suspend summarily any MCD permit issued under this Article pending a noticed hearing on revocation or suspension when in the opinion of the Director the public health or safety requires such summary suspension. Any affected permittee shall be given notice of such summary suspension in writing delivered to said permittee in person or by registered letter.
(d) If a permit is revoked, no application for a MC may be submitted by the same person for three years.

Sec. 3216. NOTICE AND HEARING FOR ADMINISTRATIVE PENALTY AND/OR REVOCATION OR SUSPENSION.
(a) If the Director determines that a MCD is operating in violation of this Article and/or the rules and, he or she shall issue a notice of violation to the operator of the MCD.
(b) The notice of violation shall include a copy of this Section and the rules and regulations adopted and info about hearings concerning the denial, suspension or revocation of permits and the imposition of administrative penalties on MCDs. It shall include a statement of any informal attempts by the Director to obtain compliance. The notice of violation shall inform the operator that:
(1) The Director has made an initial determination that the MCD is operating in violation and
(2) The alleged acts or failures to act that constitutes the basis for the Director’s initial determination, and
(3) That the Director intends to take enforcement action against the operator, and the nature of that action including the administrative penalty to be imposed, if any, and/or the suspension or revocation of the operator’s permit; and
(4) That the operator has the right to request a hearing before the Director within fifteen (15) days of receipt of the notice of violation in order to allow the operator an opportunity to show that the MC is operating in compliance with this Article and/or the rules and regulations adopted pursuant to this Article.

(c) If no request for a hearing is filed with the Director within the appropriate period, the initial determination shall be deemed final and shall be effective within fifteen (15) days. The Director shall issue an Order imposing the enforcement action and serve it upon the party served with the notice of initial determination. Payment of any administrative penalty is due within 30 days of service of the Director’s Order, paid to the Treasurer of CCSF. The alleged violator against whom an administrative penalty is imposed shall also be liable for the costs and attorney’s fees incurred by the City in bringing any civil action to enforce the provisions of this section, including obtaining a court order requiring payment of the administrative penalty.
(d) If the alleged violator files a timely request for a hearing, within fifteen (15) days of receipt of the request, the Director shall notify the requestor of the date, time, and place of the hearing. The Director shall make available all documentary evidence against the MCD no later than fifteen (15) days prior to the hearing. Such hearing shall be held no later than forty-five (45) days after the Director receives the request, unless time is extended by mutual agreement of the affected parties.
(e) At the hearing, the MCD shall be provided an opportunity to refute all evidence against it. The Director shall conduct the hearing. The hearing shall be conducted pursuant to rules and regulations adopted by the Director.
(f) Within twenty (20) days of the conclusion of the hearing, the Director shall serve written notice of the Director’s decision on the alleged violator. If the Director’s decision is that the alleged violator must pay an administrative penalty, the notice of decision shall state that the recipient has ten (10) days in which to pay the penalty. Any administrative penalty assessed and received in an action brought under this Article shall be paid to the Treasurer of the City. The alleged violator against whom an administrative penalty is imposed also shall be liable for the costs and attorney’s fees incurred by the City in bringing any civil action to enforce the provisions of this section, including obtaining a court order requiring payment of the administrative penalty.

Sec. 3217. APPEALS TO BOARD OF APPEALS.
(a) Right of Appeal. The final decision of the Director to grant, deny, suspend, or revoke a permit, or to impose administrative sanctions, may be appealed to the Board of Appeals in the manner prescribed in Article 1 of the SF Business and Tax Regulations Code. An appeal shall stay the action of the Director.
(b) Hearing, as specified in Article 1 of the SF Business and Tax Regulation Code.

Sec. 3218. BUSINESS LICENSE & BUSINESS REGISTRATION CERTIFICATE.
(a) Every MCD shall be required to obtain a business license from the City in compliance with Article 2 of the Business and Tax Regulations Code.
(b) Every MCD shall be required to obtain a business registration certificate from the City in compliance with Article 12 of the Business and Tax Regulation Code.

Sec. 3219. DISCLAIMERS AND LIABILITY. (See next page, General Welfare)
By regulating MCDs, the City and County of SF is assuming an undertaking only to promote the general welfare. It is not assuming nor is it imposing on its officers and employees, an obligation for breach of which it is liable in monetary damages to any person who claims that such breach proximately caused injury. To the fullest extent permitted by law, the City shall assume no liability whatsoever, and expressly does not waive sovereign immunity, with respect to the permitting and licensing provisions of this Article, or for the activities of any MCD. (Nor any personal liability for any actions taken by a public officer or employee.) This Article (the “Medical Cannabis Act”) does not authorize the violation of state or federal law.

Sec. 3220. SEVERABILITY.
If any provision of this Article shall be held invalid, the remainder is not affected thereby. (See full statement next page.)

Section 5. The San Francisco Traffic Code is hereby amended by amending Sections 53 and 132, to read as follows:
Sec. 53. Double Parking, (i.e., vehicles stopping, parking or standing in front of a MCD) fine of $100. DPT must install signs. Doesn’t apply to emergency vehicles.
Sec. 132. Penalty Schedule. Adds Violation TC53B, Dbl Prking Med.Cann.Dispens. to the penalty schedule with a $100 fine. (page 55, line 21)

Section 6. The San Francisco Business and Tax Regulation Code is hereby amended by amending Section 1, and by adding Sections 1.177 and 249.17, to read as follows:

Sec. 1. DESIGNATING DEPARTMENTS FOR ISSUANCE OF PERMITS.
Permits shall be issued for the location and conduct of MCDs by the various departments, by adding Sec. 1.77 and 249.17 to the SF Business & Tax Regulation Code.
Sec. 1.77. MEDICAL CANNABIS DISPENSARIES. For the establishment, maintenance and operation of medical cannabis dispensaries – by the DPH.
Sec. 249.17. MEDICAL CANNABIS DISPENSARY LICENSE FEE.
Every person, firm or corporation engaged in operating a MCD shall pay an annual license fee of $2,182.00 to the Tax Collector to cover the costs of annual inspections, enforcement and other costs to the City.

Section 7. Promotion of the General Welfare.
By regulating medical cannabis dispensaries, the City and County of San Francisco is assuming an undertaking only to promote the general welfare. It is not assuming, nor is it imposing on its officers and employees, an obligation for breach of which it is liable in money damages to any person who claims that such breach proximately caused injury. To the fullest extent permitted by law, the City shall assume no liability whatsoever, and expressly does not waive sovereign immunity, with respect to the permitting and licensing provisions of this Article, or for the activities of any MCD. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this Article shall not become a personal liability of any public officer or employee of the City. This ordinance does not authorize the violation of state or federal law.

Section 8. SEVERABILITY.
If any provision of this ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this ordinance which can be given effect without the invalid or unconstitutional provision or application. To this end, the provisions of this ordinance shall be deemed severable.

(Approved as to form by the City Attorney.)