New San Rafael Adult Use Regulations

San Rafael Is Soon to Be an Adult-Use City

A little over a month from now, existing licensees in San Rafael will be able to serve the adult use Market. While the city only allows a limited number of delivery-only dispensaries, as a customer you can now order cannabis locally without being a medical marijuana patient.

History: In January of 2017, after prop 64 had passed, the San Rafael City Council formed the Medical Cannabis adhoc Subcommittee to develop a medical cannabis pilot program. A year later the Council adopted Resolution No. 14455 approving a Medical Cannabis Business Operator License Pilot Program and policies, practices and procedures for administering and enforcing the program, including the number of each license type to be issued. It allowed for delivery only dispensaries, testing labs, infused product manufacturers (and through a later amendment distribution), but it was medicinal only. On March 4th, after the state passed permanent regulations, the city approved adult-use so that local businesses could compete effectively in the burgeoning market.

The March Ordinance made a couple more changes to the existing regulations besides allowing adult-use. Below are some of the highlights:

  • The License Pilot Program dropped “Medical” from its title and is now Cannabis Business Operator License Pilot Program or CBOL.
  • Re-emphasized the fact that licenses are non-transferable in any capacity:
    • Each license is specific to the location where the commercial cannabis business will be operating originally. It is void if location is changed.
    • Even if only one owner changes, you must notify City and submit new application for review of background checks and qualifications. The license is void altogether is new ownership.
  • No license types were added – cultivation and dispensaries are still prohibited
  • Three more licenses were made available: one in distribution (type 11) and two in infused manufacturing (type N)
  • Application review has changed because they are no longer accepting applications:
    • Previously there were 6 sections requiring 85+ points to pass, whereas now there are only 4 Includes Business Plan, Safety and Security Plan, Gross Receipts Activity, and Qualifications of Principles, all worth a max of 25 points with applicants needing only 70+ points to move forward.
  • Fees changed: initial application is $4,100, annual renewal $500, and appeal $1,672.
    • Of note: there is a 30 day window between 60 and 30 days from license expiration date for licensees to file their annual renewal application.
  • There is an increase in allowable operating hours. Cannabis delivery stayed 9 AM to 9PM; however, closing hours for all other licenses increased by an hour from 6 PM to 7 PM.

 

Find out more about what’s going on with San Rafael cannabis regulations at the city website.