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Medical Cannabis and Cannabis Product Manufacturing

Medical Cannabis and Cannabis Product Manufacturing

Medical Cannabis Ordinance

On December 16, 2013, the City Council approved a medical cannabis ordinance allowing for the operation of one medical cannabis dispensary within city limits.  That adopted ordinance was subsequently amended to allow for the issuance of up to three dispensary permits, subject to the following conditions:

  • The City will issue only three medical cannabis dispensary permits;
  • The approved dispensaries may only be located in the City’s industrial and commercial zoning districts; cannot be within 1,000 feet of a school, library, youth center, park and recreation facility and places of religious worship; and cannot be within 500 feet of a residential zone;
  • The City Manager may impose separate conditions of approval;
  • A public hearing on the approval of a conditional use permit must be held by the Board of Zoning Adjustments (BZA) for any dispensary permit that is approved by the City Council;
  • Operating, security, recordkeeping, facilities, and signage regulations are set in the ordinance;
  • On-site distribution of edible cannabis products will be allowed and regulated to prevent the transmission of foodborne illnesses;
  • Medical cannabis dispensaries are limited to serving patients with medical needs. The sale of cannabis for wider adult use is not permitted;
  • Payment of non-refundable permit application fee(s), an annual permit renewal fee, and annual business license fee will be required.

Current Status of San Leandro's Dispensary Permits

Application materials were released to the public on December 5, 2014, and questions regarding the application were due to the City no later than December 18, 2014.  Application materials for Phase I and Phase II were due back to the City no later than January 15, 2015, so the application period is now closed. Phase III finalists were notified in June 2015, and the City Council awarded the first dispensary permit on September 8, 2015.  The second permit was issued on July 18, 2016 and the third permit was issued on October 17, 2016.  Additional dispensary permits are not currently available at this time.  Please contact the City Manager's Office at (510) 577-3351 or email MMJinfo@sanleandro.org for additional assistance regarding this program.    


Cannabis Product Manufacturing Pilot Program‚Äč 

On June 19th, the City Council authorized a pilot program that will allow for the issuance of up to five non-retail cannabis product manufacturing permits. Additional details on the pilot program be found within agenda item 5A from the June 19, 2017 meeting agenda. The Pilot Program, codified in Title 5, Chapter 6 of the San Leandro Administrative Code, will take effect on August 16, 2017.

The pilot program allows up to five Conditional Use Permit applications to be considered and issued for cannabis product manufacturers. Under the pilot program, up to five applications will be accepted. Once the City has received five applications, no additional applications will be accepted until an application is closed or withdrawn, or if a previously issued Conditional Use Permit lapses or is revoked. The City Council will review the outcome of the pilot program once the five initially permitted Cannabis Product Manufacturing uses have been established and become operational. The City Council may modify or expand the program if it is successful.

Applications for Cannabis Product Manufacturing may only be submitted to the Permit Center with a prior appointment. At that time, a staff planner will review the application materials to ensure the required documentation has been provided in accord with the Pilot Program before being accepted for processing.

The Planning Division has prepared a handout for businesses interested in participating in the Cannabis Product Manufacturing Pilot Program. Contact the Planning Services Division at (510) 577-3325 or visit the Permit Center at City Hall for more information or to make an appointment.

Cannabis Testing Laboratories

Cannabis testing laboratories that provide independent safety and quality control testing services for cannabis manufacturers and dispensaries are a conditionally permitted use (requiring a CUP) eligible for consideration in the Community Commercial (CC), Industrial General (IG), Industrial General - Assembly Use (IG-AU), and Industrial Park (IP) zoning districts. There are no limitations on the number of cannabis testing laboratories permitted in the City of San Leandro.


Commercial Cultivation of Cannabis Plants

The commercial cultivation and cloning of cannabis plants is prohibited in the City of San Leandro. Individuals are permitted to posses a limited number of cannabis plants for personal use under State law.


Cannabis Delivery and Distribution

Businesses that deliver, distribute or transport cannabis are not currently permitted in the City of San Leandro. In the future, these businesses may be allowed to operate in the City under forthcoming State regulations if they are licensed by the State of California, legally established in another jurisdiction and obtain a valid business license. The City of San Leandro is awaiting the outcome of the State's draft regulations regarding these uses.