1621.5 Temporary Cannabis Event

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Background

Police Code, Article 16, Section 1621.5, establishes procedures for the Office of Cannabis to issue permits authorizing cannabis sales or consumption, or both, in connection with temporary events, and providing a mechanism for the temporary waiver of City laws restricting smoking or cannabis consumption.

The following rules apply to the development of operating standards with regard to temporary cannabis event and further outline application requirements.

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Rules

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Required General Information

1. Cannabis Event Organizer license and all information submitted to the BCC for the license.

2. Name of the event (the event must be advertised by this name and by no other name)

3. Dates and hours of event (and approval of relevant agency)

4. The hours during which cannabis goods will be sold if different from above

5. For any event requiring public outreach, informing the public that cannabis sales and/or consumption will be a part of the event, will be required.

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Contact Information

1. Contact information for a designated contact person(s) who shall be onsite at the event and reachable by telephone at all times that the event is occurring.

2. A point of contact (name, title in license, phone number and email) for each licensee and permit holder that will serve as a retailer, exhibitor and/or advertiser at the event.

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Exhibitor Information

1. A list of all licensees and permit holders that will be providing onsite sales of cannabis goods at the temporary cannabis event.

2. Copy of all licensees’ state licenses, local authorizations, and local jurisdiction regulating point of contact.

3. A list of all employees that will be providing onsite sales of cannabis goods at the temporary cannabis event.

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Access & Equity

1. Description of how the Cannabis Event Organizer will expand opportunity to a variety of permitted retailers and cannabis business owners:

   1. For events with an estimated attendance of 500 or fewer people: 1 or more

   2. For events with an estimated attendance of 501-1000: 2 or more

   3. For events with an estimated attendance of 1001 people or more: 3 or more

      1. Events with 3 or more retailers will also be required to include at least one retailer with fewer than 10 employees. 

2. Description of how the applicant will work to further the City’s equity goals as a part of the temporary cannabis event. 

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Attestations

1. Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true, and accurate. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the permit, or revocation of a permit issued.

2. By submission of this application, I agree to indemnify, hold harmless and assume the defense of the City and County of San Francisco from and against any and all claims, demands and actions for damages resulting from conduct under any permit issued in response to this application, regardless of the negligence of City and County of San Francisco.

3. By acceptance of this permit, the permittee agrees to indemnify, hold harmless and assume the defense of the City and County of San Francisco from and against any and all claims, demands and actions for damages resulting from work under this permit, regardless of the negligence of City and County of San Francisco.

4. By submission of this application, I acknowledge and accept that the decision by the City and County of San Francisco's Office of Cannabis ("Office) whether to grant or deny a permit application shall be made in accordance with all applicable state, and local laws in effect at the time the Office processes that application. I acknowledge and accept that after the Office issues a permit, the Office retains the discretion to modify or rescind that permit based on factors including but not limited to changes in applicable law, newly-discovered facts, and public safety considerations.

5. By submission of this application, I acknowledge that I am aware that Ordinance No. 190756 was introduced in the San Francisco Board of Supervisors on July 9, 2019. I understand that, if enacted, this ordinance would impose various requirements regarding cannabis events permitted under Police Code section 1621.5, retroactive to the July 9, 2019 date of introduction. Requirements imposed by this ordinance include, but are not limited to, the following: 1) Only entities that hold a San Francisco-issued Cannabis Business Permit may provide onsite sales of cannabis goods at the event, and only if those entities have been identified in the application for the Cannabis Event Permit; and 2) An applicant for a Cannabis Event Permit must identify any individuals and/or entities that will provide onsite sales of cannabis goods at the event, affirm that these sellers hold a San Francisco-issued Cannabis Permit, and demonstrate that it will take steps sufficient to reasonably ensure that no undisclosed or unpermitted sellers will operate at the event. 

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Security Plan

1. All Cannabis Event Organizers will be required to submit a Security Plan that contains information related to how the applicant will secure the premises, limit loitering around entrances and exits, manage potential crowds, control diversion, manage security, and identify appropriate personnel. 

2. The Cannabis Event Organizer will ensure the limited access area will not be visible to the public.  This area should be clearly identified on the premises diagram and fenced.

3. The plan will be reviewed by the SFPD. 

4. If a significant amount of cash is expected to pass through the event premises, additional security requirements may be imposed after consultation with permitting agencies.

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Security Personnel Requirements

1. The Cannabis Event Organizer shall hire or contract for security personnel to provide security services for the licensed cannabis sales and/or consumption area.

2. All security personnel hired or contracted by the Cannabis Business Temporary Event Applicant shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code.

3. Security personnel shall be reviewed by permitting agencies. 

4. Exhibitors are prohibited from hiring private security for the sales and consumption area.

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Security Notification Requirements

1. The Cannabis Event Organizer will notify the Department of Cannabis Control, the Office of Cannabis, and San Francisco Police Department within 24 hours of discovery of any of the following situations:

   1. A cannabis retailer or Cannabis event organizer discovers a significant discrepancy in its inventory and reports said discrepancy to the Cannabis Event Organizer or the organizer’s staff.

   2. A cannabis retailer, the Cannabis Event Organizer or the organizer’s staff discovers diversion, theft, loss, or any other criminal activity pertaining to the sale cannabis goods at the Event.

   3. A cannabis retailer, the Cannabis Event Organizer or the organizer’s staff discovers diversion, theft, loss or any other criminal activity by an agent or employee of the cannabis exhibitor or Cannabis Event Organizer, pertaining to the operations of the exhibitor or the Cannabis Event Organizer.

   4. A cannabis retailer or the Cannabis Event Organizer discovers loss or unauthorized alteration of records related to cannabis goods, customers or the exhibitor’s employees or agents.

   5. A breach of security is brought to the attention of the Cannabis Event Organizer.

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Premises Diagram

1. General - A to scale diagram of the physical layout of the temporary cannabis event that clearly displays:

   1. where the temporary cannabis event will be taking place on the location grounds,

   2. all entrances and exits that will be used by participants during the event,

   3. all cannabis consumption areas, if applicable,

   4. all retail areas where cannabis goods will be sold,

   5. the area where cannabis waste will be stored,

   6. all areas where cannabis goods will be stored (i.e. “distribution area(s)”),

   7. the specific location of each cannabis licensee who will be participating in the event

   8. Each exhibitor area must be assigned a cannabis event location number. The diagram shall contain this number, and the markings on the diagram shall be in black-and-white print.

   9. Location of emergency services, including ambulances.

   10. Path of travel within designated premises

2. This premises diagram may be amended with Office of Cannabis approval. 

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Additional Requirements

1. If any area where a licensee that is not a retailer will be advertising and/or exhibiting, that licensee’s name, license number and event assigned number.

2. Proof of insurance must be submitted to the Office and any other permitting agency. 

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Permit Conditions/Operating Standards

1. The licensed cannabis event organizer shall be responsible for ensuring that all rules and requirements for the onsite sale of cannabis goods are followed within the temporary permitted premises.

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Alcohol and Tobacco

1. Alcohol consumption and sales or tobacco sales are strictly prohibited from taking place within the cannabis goods sales and consumption area of the Event.

2. Tobacco consumption will be prohibited in the event, in addition to the specified cannabis consumption area.

3. Event holders interested in alcohol will be required to maintain separate premises for alcohol consumption. 

4. Any Person found engaging in the sale or consumption of alcohol or sale of tobacco products within the cannabis goods sales and consumption area of the Event will be immediately removed from the premises of the Event and prohibited from reentering the premises for the remainder of the Event.

5. No refund will be provided to any Person removed from the Event for failure to comply with these rules.

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Permits

1. All permits associated with the event must be maintained on site with the event sponsor or their designee during the event.

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Participating Licensees

1. The Event Sponsor is responsible for ensuring all participants must follow record retention provisions in local and state law.

2. Retailers

   1. All sales must be conducted by permitted retailers (including microbusiness with retail).

   2. Retail and microbusiness exhibitors must comply with all daily limit requirements pursuant to local and State rules and regulations.

   3. A retail or microbusiness exhibitor shall not sell more than the amounts consistent with existing state limits to a single adult-use cannabis customer in a single day.

   4. All retailers must maintain and prominently display at their assigned area their cannabis event location number and a copy of their state commercial cannabis license.

   5. All Cannabis Goods sold at the Event must follow all requirements for laboratory testing, quality assurance and labeling as defined by applicable local and State rules and regulations.

   6. All cannabis goods sold must be provided to consumers in an exit package that meets state law requirements.

   7. Premises diagram must be in compliance with all City permit requirements and other regulations for the cannabis event.

3. Exhibitors

   1. Must maintain and prominently display at their assigned location their assigned cannabis event location number and a copy of their state commercial cannabis license.

   2. Cannabis Goods may only be displayed by a cannabis exhibitor and only within the sales and consumption area of the Event.

   3. Cannabis exhibitors shall not display Cannabis Goods in a place that is visible from outside the sales and consumption area or the Event premises.

   4. Cannabis exhibitors must store cannabis goods in secured, lockable containers.

   5. Cannabis Goods removed from their packaging for display shall not be sold, consumed or shared.

   6. Cannabis Goods removed from their packaging for display must be destroyed at the end of the Event in a manner that is compliant with all local and state rules and regulations, and preapproved by the Cannabis Event Organizer.

4. Distributors

   1. Only California State licensed distributors are eligible to participate as distribution exhibitors at the Event.

   2. At no time during the Event may a distribution exhibitor sell, gift or in any way provide Cannabis Goods to retail customers.

   3. At no time during the Event may a distribution exhibitor sell or provide Cannabis Goods to an event exhibitor, other than an official retail or microbusiness exhibitor.

   4. At no time during the Event may a distribution exhibitor receive Cannabis Goods from an entity other than a licensed distributor that is preapproved by the Cannabis Event Organizer.

   5. All Cannabis Goods delivered to the Event by, or on the behalf of, a distribution exhibitor must be delivered with manifests in compliance with all applicable local and State rules and regulations.

   6. The distribution of Cannabis Goods, by distribution exhibitors, shall only occur in clearly identified distribution areas.

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Enforcement

1. To ensure compliance, an Office of Cannabis staff member with inspection authority will be on-site for all temporary cannabis events during the pilot phase.

2. The Director of the Office of Cannabis or designee may require a permitted event to cause any sales or consumption of cannabis or cannabis products at the event to cease or otherwise be limited, without delay or within such other timeframe as the Director determines, if the Director determines that such action is necessary to protect public health or safety, or to ensure compliance with applicable State or City laws.

3. The Director or designee may require the holder of a Cannabis Event Permit to expel from the event any participant selling cannabis or cannabis products in a manner inconsistent with applicable State or City laws.

4. The Office of Cannabis may issue administrative penalties and recover enforcement costs from permit holders selling cannabis. 

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Signage

1. Event sponsor shall place signage at or near each entrance to the event that clearly states “No Persons Under 21 Allowed” at or near each public entrance to any area where the sale or consumption of cannabis goods is allowed in font no less than 1 inch in height.

2. If applicable, event sponsor shall place signage at each entrance that shows path of travel, restrooms, phones (if any), all accessible features, drinking fountains and the name and location of a contact person who is responsible for dealing with any problems which may arise during the street closure.

3. If consumption is allowed, event sponsor will be responsible for prohibiting tobacco smoking, as well as including signage displaying harms of smoking.

4. Signage of unlicensed cannabis businesses will not be allowed at events.

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Waste Disposal

1. All cannabis waste generated at a temporary cannabis event shall be collected and disposed of in accordance with the requirements of state and local law.

2. The permitted cannabis event organizer may contract or arrange for the collection and disposal of cannabis waste generated during the temporary cannabis event only with a DPH approved licensed waste hauler.

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Age Restrictions

1. Only persons age 21 or older may enter a permitted premises and purchase or consume cannabis goods at a temporary cannabis event.

2. Prior to selling cannabis goods to a customer, any employee of a licensee that is an exhibitor shall confirm, using a government issued identification, the age and identity of the customer.

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Sales and Exhibition

1. Each sale at a temporary cannabis event shall be performed by a licensed retailer, a licensed non-storefront retailer, or licensed microbusiness that is authorized to engage in retail sales.

2. All sales of cannabis goods at a temporary cannabis event must occur in a retail area as designated in the premises diagram approved by the permitting authorities.

3. Any retailer or exhibitor engaging in the display, sales, or consumption of cannabis or cannabis goods, outside of the specific booth or area assigned to the retailer or exhibitor could result in the immediate removal of the retailer/exhibitor and retailer/exhibitor staff from the Event premises.

4. Licensed retailers or licensed microbusinesses shall only conduct sales activities within their specifically assigned area, identified in the diagram of the physical layout of the temporary cannabis event

5. Mobile sales activities via wagon, cart, or similar means are prohibited at the temporary cannabis event site

6. Cannabis and cannabis goods sales must cease 1 hour before event closure or as determined by the approved security plan.

7. All product sold at an event must otherwise comply with the requirements for cannabis products under state law (i.e. verified by testing laboratory, entered into track and trace system, labeled and packaged according to existing state and local regulations, etc).

8. All retailers and microbusinesses exhibiting at the Event are required to have all Cannabis Goods sold at the Event transported to the Event by a California licensed distribution exhibitor that has been pre-approved by the Cannabis Event Organizer.

9. Retailers and microbusinesses engaged in the sale of Cannabis Goods to customers shall keep a limited amount of Cannabis Goods in their booths during sales hours.

10. California licensed commercial cannabis cultivators, manufacturers, nurseries and distributors are also allowed to exhibit at an event, however, these licensees are strictly prohibited from selling or providing free cannabis goods to retail customers at any time during the temporary cannabis event.

11. No licensee, employee or agent of a licensee shall provide free cannabis goods to a person at a temporary cannabis event unless the provision of free cannabis complies with the requirements of Section 5411 of the Bureau of Cannabis’s regulations.

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Cannabis Consumption

1. The Cannabis Event Organizer is required to obscure visibility into the consumption area of at least 8 feet.  Possible options include an opaque fence or tent.                                                    a. The Director of the Office of Cannabis may approve an exemption to Section (t) (1) of this rule. To request an exemption, the applicant must document exceptional circumstances that prevent compliance with the specified rule, and demonstrate that an exemption would not allow for violations of applicable state laws and local code. The Director will determine, in their sole discretion, whether or not a requested exemption is in the interests of the public, and will provide that determination in writing to the requesting applicant. 

2. A gated or fenced-in buffer area should surround the consumption space to limit overlap with publicly-accessible areas.  

3. The consumption area should be separate from the area where cannabis is being sold and where exhibitors are present.

4. Consumption areas shall not be in locations where smoke can enter the windows of residents. 

5. The consumption area should be supplied with potable running water that is easily accessible, if it is not supplied in other areas in the cannabis sale and consumption area. 

6. The consumption area should have adequate restroom facilities (i.e. Porta Potties) and temporary handwashing facilities, if such facilities are not supplied in other areas in the cannabis sale and consumption area. 

7. Cannabis Event Organizers intending to have consumption are required to attend a pre-event meeting with the OOC and SFDPH to ensure compliance.

8. The plan will be reviewed by the SFFD.

9. Cannabis Event Organizers will be responsible for ensuring the event medical plan includes contingencies for cannabis consumption.

10. Dab bars or the act of dabbing is prohibited at all Cannabis Events. Dabbing includes, but is not limited to, the action or practice of inhaling small quantities of concentrated cannabis oil, resin, shatter or wax. 

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Standard Operating Procedures

1. Event organizer SOP Agreement will be shared with vendors and reviewed and approved by the Office of Cannabis to ensure compliance.  Standard Operating Procedures will include, but are not limited to:

   1. Diversion or Theft – Procedures for notifying law enforcement and regulators in the case of product diversion or theft.

   2. Security Services – The responsibility to provide security services that comply with the Business and Professions Code and makes clear that exhibitors are prohibited from hiring their own security for sales and/or consumption areas. This is the sole responsibility of the event organizer.  

   3. Sales – The framework by which sales may be allowed. For example:

      1. Acknowledgement of local limits.   

      2. Adherence to specified product allowed in a retailer booth at any given time.

   4. Transportation and Distribution – Description of how cannabis goods will be transported to premises by a licensed distributor.  Procedures must include, but are not limited to:

      1. Method for storing and securing product, including, secured lockable storage containers equipped with commercial grade locks.

      2. Movement of product between the distribution hub at the event and the licensed retailer stalls throughout the day.

   5. Securing of Cash – Process for both retailers and distributers.

   6. Age verification – Acknowledgment that age verification is required at the point of entry and at the point of sale. 

      1. Procedure for verifying age.  This may include electronic age verification.

   7. Note: Cannabis Event Organizer will be responsible for ensuring that services requiring internet access, including but not limited to electronic age verification, inventory maintenance systems, and/or payment services are operable in proposed premises.