Cannabis Ordinance

Cannabis Dispensary Ordinance

The City Council adopted Ordinance 2019-004 on April 1, 2019, enabling the City's three previously permitted medical cannabis dispensaries to conduct retail sales of cannabis for adult use beginning in January 2020.

The City has issued only three cannabis dispensary permits; all three have been issued at this time and there are no further plans to issue additional licenses.

  • 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;
  • 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. The City has no plans to expand the number of dispensary permits at this time. Please contact the City Manager's Office at 510-577-3351 or email MMJ Info for questions regarding this program.

Cannabis Product Manufacturing

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 code requirements before being accepted for processing.

The Planning Division has prepared a handout for businesses interested in participating in Cannabis Product Manufacturing (PDF). 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. Cannabis testing laboratories may not operate in conjunction with other cannabis business activities under State law.

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 possess a limited number of cannabis plants for personal use under State law.

Cannabis Delivery & Distribution

Businesses that deliver or distribute cannabis to the public outside of a dispensary are not permitted and may not be established in the City of San Leandro. Licensed and permitted cannabis delivery and distribution businesses based in other jurisdictions are required to obtain and hold a valid City business license, provide documented approval from their respective jurisdiction and authorization from the State Bureau of Cannabis Control before delivering or distributing to clients within the City of San Leandro in accord with State law. Business to business transportation and distribution of cannabis products and materials to licensed manufacturers and dispensaries is permitted in the city of San Leandro with a business license.

Cannabis Definitions (§1.12.108)

See cannabis definitions in the San Leandro Zoning Code.

Industry, Cannabis Product Manufacturing. Cannabis manufacturing, processing, and packaging of products derived from or infused with cannabis, including edibles, concentrates and extracts for wholesale or retail to cannabis dispensaries or other cannabis product distributors and manufacturers as allowed by state law. This definition includes cannabis manufacturers requiring a Type 6 or 7 license from the State of California. This definition does not include the cloning, planting or cultivation of cannabis plants or the direct sales, distribution, delivery, or dispensing of manufactured cannabis products to the public.

Laboratories, Cannabis Testing Facilities. Laboratories conducting safety, quality control, and analytical testing services of cannabis and products derived from cannabis as a service to cannabis dispensaries, medical facilities, government agencies, cannabis product manufacturers, or other entities as allowed by state law. This definition includes cannabis testing and laboratory facilities requiring a Type 8 license from the State of California. This definition does not include the cloning, planting or cultivation of cannabis plants or the direct sales, distribution, delivery, or dispensing of cannabis and cannabis products to the public.

Medical Cannabis. All parts of the plant Cannabis sativa L., also referred to as marijuana, whether growing or not, as defined by California Health and Safety Code Section 11018, as amended from time to time. This includes "cannabis" as: 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 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 incapable of germination.

Medical Cannabis Dispensary. A collective, or cooperative, or other non-profit or for profit entity qualified or permitted to do business in the State of California and the City of San Leandro that distributes, dispenses, stores, exchanges, processes, delivers, makes available, transmits and/or gives away cannabis ("marijuana") for medicinal purposes to four or more qualified patients and/ or primary caregivers pursuant to California Health and Safety Code Sections 11362.5 and 11362.7 et seq. Baked medicinal products (i.e., brownies, bars, cookies, cakes), tinctures and other non-refrigerated type items are acceptable for manufacture and sale at a dispensary.