In 1996, California became the first state to decriminalize cannabis use for medicinal purposes by passing Proposition 215. The Medical Marijuana Regulation and Safety Act (“MMRSA”), effective on January 1, 2016, established a comprehensive State licensing and regulatory framework for the cultivation, manufacture, transportation, storage, distribution, and sale of medicinal cannabis.
Then, in November 2016, California, joining seven other states and Washington, D.C., decriminalized recreational cannabis as well. California voters did so by passing Proposition 64, which decriminalized recreational cannabis for persons aged 21 years or older and established a system of taxation.
In 2017, the State of California adopted Senate Bill 94, which formed a single comprehensive regulatory system. On January 1, 2018, this comprehensive cannabis law became effective in California. Accordingly, the Alameda City Council has adopted local ordinances regulating commercial cannabis activity and personal cultivation in the City of Alameda (the “regulatory ordinance”).
The following are frequently asked questions (FAQs) about cannabis regulation in the City of Alameda.
Cannabis Businesses
1. How will the City decide what cannabis businesses to allow in Alameda?
Answer: The Regulatory Ordinance limits cannabis businesses in Alameda to one nursery, two medicinal dispensaries, four manufacturing businesses, and two testing labs. On April 23, 2018 the City published a Request for Proposals (RFP) for allocating this limited number of permits. For dispensaries only, before applying for a cannabis business license, a person will have to secure one of the designated slots for a cannabis business awarded through the RFP process. Testing labs, nursery, and manufacturing permits will be awarded on a first-come/first serve basis.
One RFP phase was completed in July 2018; a subsequent RFP phase is expected before the calendar year.
2. Is there a listserv interested parties can be added to for additional information about commercial cannabis businesses?
Answer: The City maintains an email list of people interested in receiving City of Alameda cannabis information. To be added to this list, please email your request to lbutler@alamedaca.gov.
3. Where are cannabis businesses prohibited?
Answer: No commercial cannabis activity can occur on publicly owned land. No dispensary or nursery (cultivation) may locate within 1,000 feet of a sensitive use (for example, school, youth center, etc.) and no other cannabis business may locate within 600 feet of such uses. In addition, dispensaries are required to be disbursed (one-mile separation distance) to avoid over-concentration.
4. What are the permitted commercial cannabis businesses?
Answer: All retail cannabis businesses are required to initially participate in the RFP process to ultimately obtain the right to apply (1) first for a land use permit, and (2) then for an operator’s permit. All other commercial cannabis business operators can apply on a first come-first served basis.
Permitted activities include:
Cultivation solely as a nursery is permitted. The number of nurseries is capped at one. Nursery operators also need to obtain a distribution license.
Retail medicinal dispensaries and the delivery of medicinal cannabis in conjunction with those dispensaries is permitted. The number of medicinal dispensaries in the City of Alameda is capped at two. Delivery from medicinal cannabis dispensaries in the City of Alameda to an address within the City of Alameda is permitted with a permit. Delivery by off-island cannabis businesses is also allowed with a permit.
Manufacturing and distribution of cannabis is permitted. The number of manufacturing businesses is capped at four.
Testing labs for cannabis are permitted. The number of testing labs is capped at two.
All other cannabis businesses not specified in City Ordinances, including adult use dispensaries and delivery only from an Alameda location, are prohibited.
NOTE: The foregoing information is based on local law as of the date of this FAQ. In October 2018, the Council will consider amendments to the local ordinances, regulations, and RFP process that may change certain information in this answer, including regulations related to retail permits (e.g., adult use, cap, etc.).
5. Where can a cannabis business locate?
The following map shows zoning districts where cannabis businesses may be located within the City of Alameda, subject to other requirements (e.g., buffer zones, separation distances) according to the ordinance adopted on December 5, 2017. Please contact staff for more information at lbutler@alamedaca.gov.
If you have problems viewing this map, you can also view or download it here, as it was an exhibit to the staff report:
https://alameda.legistar.com/LegislationDetail.aspx?ID=3197759&GUID=59F3B68F-FC18-4F4A-8DD8-2A369233DE49 (See Exhibit 3, titled “Potential Commercial Cannabis Activity Zones”).
NOTE: The foregoing information is based on local law as of the date of this FAQ. In October 2018, the Council will consider amendments to the local ordinances, regulations, and RFP process that may change certain information in this answer, including regulations affecting where cannabis businesses will be able to locate.
1. Where can I find information about when and where to lease space for a future cannabis business?
Answer: If you are interested in leasing premises for a cannabis business you should contacted a leasing agent or consult other sources where landlords advertise space for rent. You should look for places that are within the Potential Commercial Cannabis Activity Zones. Please be advised that a lease is not a substitute for obtaining a permit through the City’s regulatory process.
2. Can a delivery service located in the City of Alameda operate in the City of Alameda?
Answer: Yes, but only if that Cannabis Business has been issued a medicinal retailer/dispensary permit and a delivery permit.
NOTE: The foregoing information is based on local law as of the date of this FAQ. In October 2018, the Council will consider amendments to the local ordinances, regulations, and RFP process that may change certain information in this answer, including regulations potentially allowing delivery-only cannabis businesses.
3. Can a delivery service located in a different city deliver in the City of Alameda?
Answer: Yes, off-island Cannabis Businesses may deliver to an address within the City of Alameda so long as they obtain a delivery permit.
NOTE: The foregoing information is based on local law as of the date of this FAQ. In October 2018, the Council will consider amendments to the local ordinances, regulations, and RFP process that may change certain information in this answer, including regulations related to permitting requirements for off-island delivery businesses.
4. Do I need a business license to operate a Cannabis Business in the City of Alameda?
Answer: Yes, a business license is required, but only after an operator’s permit and use permit have been obtained. A business license is also required for off-island delivery businesses. Business licenses are issued by the City’s Finance Department. For more information about business licenses, contact at (510) 747-9851; finance@alamedaca.gov.
5. How is cannabis being taxed?
Answer: The State of California is levying a gross receipts tax of 15%, to be collected by distributers. Sales tax is charged on all recreational cannabis sold. Medicinal cannabis is not subject to State sales tax. The City of Alameda does not currently tax cannabis and cannabis products.
6. What are the fees to obtain a permit for cannabis business activity?
Answer: The City of Alameda is currently completing a fee study. Once the study is completed, the City Council will review the study and adopt a fee structure for cannabis business permits.
7. Can I sell cannabis or cannabis products at a special event (e.g., street festivals, concerts, etc.)?
Answer: No.
Personal Use/Cultivation
1. What personal cultivation is allowed in the City of Alameda?
Answer: State law allows adults aged 21 years and older to grow up to six marijuana plants at a time for personal use. A primary caregiver may cultivate for up to five patients and up to 30 plants. Indoor cannabis cultivation is limited to a single 100 square-foot area for personal adult-use and a maximum of 500 square feet for primary caregivers. Personal use cultivation must abide by lighting and electricity restrictions, have no exterior evidence of cultivation, and must not adversely affect occupants or neighbors.
It is also important to note what is prohibited. In Alameda, outdoor cultivation for personal use is prohibited. In addition, use of compressed flammable gas or gas products for personal use is prohibited.
2. Where can I use marijuana in Alameda?
Answer: The City’s smoking ordinance prohibits smoking cannabis in public and in multi-family dwelling units. Moreover, smoking in public remains prohibited by State law. However, on-site consumption at medicinal dispensaries in the City of Alameda will be allowed.
3. Who do I contact for nuisance complaints related to cannabis or violations of the smoking ordinance?
Answer: Contact the Alameda Police Department at its non-emergency number: (510) 217-5227
General
1. Where can I find additional information?
Answer: Additional information can be found online.
o Ordinance 3201: Cannabis Operator’s Ordinance
o Ordinance 3202: City’s Smoking Ordinance
o Ordinance 3206: Land use regulations regulating cannabis businesses and personal use
o State of California Cannabis Portal
2. Who can I contact with questions regarding cannabis regulations?
Answer: The Building and Planning Department administers the regulatory and land use permitting process for cannabis business activity and personal use. Please contact Lois Butler with questions at (510) 747-6894, or lbutler@alamedaca.gov.
