This Chapter provides the location and operating standards for personal cannabis cultivation and commercial cannabis businesses to ensure neighborhood compatibility, minimize potential environmental impacts, provide safe access to medicine and provide opportunities for economic development.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

A.

Compliance with City Code. Personal cannabis cultivation and commercial cannabis businesses shall only be allowed in compliance with this Chapter and all applicable regulations set forth in the City Code, including but not limited to, the cannabis business tax ordinance, and all regulations governing building, grading, plumbing, septic, electrical, fire, hazardous materials, nuisance, and public health and safety.

B.

Compliance with State Laws and Regulations. All commercial cannabis businesses shall comply with all applicable state laws and regulations, as may be amended, including all permit, approval, inspection, reporting and operational requirements, imposed by the state and its regulatory agencies having jurisdiction over cannabis and/or cannabis businesses. All cannabis businesses shall comply with the rules and regulations for cannabis as may be adopted and as amended by any state agency or department including, but not limited to, the Bureau of Cannabis Control, the Department of Food and Agriculture, the Department of Public Health, the Department of Pesticide Regulation, and the Board of Equalization.

C.

Compliance with Local and Regional Laws and Regulations. All cannabis businesses shall comply with all applicable Alameda County and other local and regional agency regulations, including, but not limited to, regulations issued by the Regional Water Quality Control Board and the Alameda County Public Health Department.

D.

Commercial cannabis businesses shall provide copies of state, regional and local agency permits, approvals or certificates upon request by the City to serve as verification for such compliance. Commercial cannabis permits issued pursuant to Article 14, Chapter 6 of this Code are valid for one year.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

Personal cannabis cultivation for medical and adult use shall be permitted only in compliance with the provisions of this Article and shall be subject to the following standards and limitations.

A.

Cannabis Maximum Limitation. The personal cultivation of cannabis is limited to no more than six (6) mature plants within a single private residence or upon the grounds of that private residence, at one time regardless of the number of residents. For purposes of this section, "private residence" means a house, an apartment unit, a mobile home, or other similar dwelling.

B.

Residency Requirement. Cultivation of cannabis may occur only on parcels with an existing legal residence occupied by a full-time resident. Nothing in the section is intended, nor shall it be construed, to preclude any landlord from limiting or prohibiting personal cultivation by tenants.

C.

Outdoor Cultivation. Cannabis plants shall not be located anywhere in a front or street side yard. Cannabis plants are permitted inside and rear yards only if fully screened from public view with a solid fence or wall.

D.

Indoor Cultivation. All structures used for personal cannabis cultivation (including accessory structures, greenhouses, and garages) must be legally constructed with all applicable building and fire permits (including grading, building, electrical, mechanical and plumbing) and shall adhere to the development standards of the underlying zoning district.

E.

The following operating requirements are applicable to personal cannabis cultivation:

1.

Visibility. No visible markers or evidence indicating that cannabis is being cultivated on the site shall be visible from the public right of way.

2.

Security. All enclosures and structures used for cannabis cultivation shall have security measures sufficient to prevent access by children or other unauthorized persons.

3.

Prohibition of Volatile Solvents. The manufacturing of cannabis products for personal non-commercial consumption shall be limited to processes that are solvent-free or that employ only non-flammable, nontoxic solvents that are recognized as safe pursuant to the federal Food, Drug and Cosmetic Act. The use of volatile solvents to manufacture cannabis products for personal consumption is prohibited.

4.

Lighting. Grow lights shall not exceed one thousand two hundred (1,200) watts per light and are prohibited from producing a glare that interferes with other residents' reasonable enjoyment of their property.

5.

Odors. No cannabis odors may be detectable from any place outside the residence. An odor absorbing ventilation and exhaust system must be installed if the odor generated inside the residence is detected outside the property or premises, or anywhere on adjacent property or public rights-of-way, or within another unit located within the same building as the cultivation.

6.

Generators. The use of generators for personal cannabis cultivation is prohibited, except for temporary use in the event of a power outage or for emergency use. For purposes of this subsection, emergency use is defined in accordance with 17 California Code of Regulations § 93115, as may be amended. For purposes of this subsection, the limit on use of a generator in an emergency is ninety (90) days.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

Commercial cannabis businesses shall be administratively and conditionally permitted only in compliance with the provisions of Chapter 6, Article 14 (Commercial Cannabis Businesses) and Chapter 10, Article 1 (Planning, Zoning and Subdivisions), as amended, and shall be subject to the following standards and limitations.

A.

Land Use. All commercial cannabis businesses shall be located in compliance with the requirements of Chapter 10, Article 1 (Planning, Zoning and Subdivisions), as amended, and as designated in the Zoning Code. For purposes of this Chapter, commercial cannabis businesses shall include the following land use classifications, all of which are further defined in Chapter 10, Section 10.1-3500 (Definitions):

1.

Commercial cannabis cultivation, up to 5,000 sf.

2.

Commercial cannabis cultivation, 5,001 sf or greater.

3.

Commercial cannabis delivery, including non-storefront retail.

4.

Commercial cannabis retail dispensaries (storefront).

5.

Commercial cannabis distribution.

6.

Commercial cannabis manufacturing - Level 1, up to 5,000 sf.

7.

Commercial cannabis manufacturing - Level 1, 5,001 sf or greater.

8.

Commercial cannabis manufacturing - Level 2.

9.

Commercial cannabis microbusinesses.

10.

Commercial cannabis testing laboratory.

B.

Required Setbacks. All commercial cannabis businesses operating within the City of Hayward shall be subject to a one thousand-foot minimum setback from any public or private school and a six hundred-foot minimum setback from all other sensitive land uses as described in California Business and Professions Code Section 26054 and California Health and Safety Code Section 11362.768, including libraries, designated public open space areas and designated public parks that contain a children's playground(s) or similar area dedicated towards children activities, including but not limited to sports fields and swimming pools. The required setback may be reduced as part of the issuance of a conditional use permit from the Planning Commission if it is found that the public convenience and necessity will be served by an alternate distance requirement and that alternative measures to assure public health and safety are in place with respect to a commercial cannabis business. The distance shall be measured from the closest boundary line of the property on which the commercial cannabis business is located to the closest boundary line of the property on which the school or sensitive land use is located.

C.

Development Standards. The development standards for specific cannabis land uses in this Chapter supplement and are required in addition to the underlying zoning districts listed in Chapter 10, Article 1 (Zoning Ordinance), Chapter 10, Article 2 (Off-Street Parking Regulations), Chapter 10, Article 22 (Green Building Requirements for Private Development), and Chapter 10, Article 28 (Downtown Development Code) of the Hayward Municipal Code.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

The following general operating requirements are applicable to all commercial cannabis businesses identified in this Chapter including commercial cannabis testing labs. In addition, requirements specific to each cannabis business subtype are set forth in subsections 10-1.3605 (Commercial Cannabis Cultivation), 10-1.3606 (Commercial Cannabis Delivery), 10-1.3607 (Commercial Cannabis Distribution), 10-1.3608 (Commercial Cannabis Manufacturing), 10-1.3609 (Commercial Cannabis Microbusiness), and 10-1.3610, (Commercial Cannabis Retail Dispensary).

A.

Dual Licensing. The City recognizes that state law requires dual licensing at the state and local level for all cannabis businesses. All cannabis operators shall therefore be required to obtain a commercial cannabis permit issued from the City of Hayward and obtain a cannabis license from the State of California. Applicants shall comply at all times with all applicable local and state licensing requirements and any conditions related to that license, including permit renewal.

1.

New Operators. New commercial cannabis businesses which have received land use permit approval pursuant to this Chapter shall not commence operations until the business can demonstrate that all necessary state and local licenses and agency permits have been obtained.

2.

Grounds for Revocation. Failure to demonstrate dual licensing in accordance with this Chapter shall be grounds for revocation of a City issued permit. Revocation of a local permit and/or a state license shall terminate the ability of the commercial cannabis business to operate until a new commercial cannabis permit and/or state license is obtained.

B.

Age Restriction. No person who is younger than the minimum age established by state law for the purchase, possession or consumption of cannabis and cannabis-related products shall be allowed on the premises of a licensed commercial cannabis business.

C.

Inventory and Tracking. All cannabis businesses shall, at all times, operate in a manner to prevent possible diversion of cannabis and shall promptly comply with any track and trace program established by the state. Operators shall also notify the Hayward Police Department within twenty-four (24) hours of discovering any of the following:

1.

Significant discrepancies identified during inventory. The level of significance shall be two (2) percent of inventory or per state regulations, whichever is stricter.

2.

Diversion, theft, or loss, or any criminal activity involving the commercial cannabis use or any agent or employee of the commercial cannabis use.

3.

Any other breach of security.

D.

Multiple Permits Per Site. Multiple cannabis businesses and cannabis operators proposed on any one site or parcel shall be permitted only if all the proposed cannabis businesses and their co-location operators are located on separate and distinct premises as defined in Business and Professions Code Section 26001 and have obtained all necessary local and state permits or licenses, and land use approvals from appropriate local and state agencies. Subject to the provisions of this Zoning Ordinance, cannabis operators holding multiple licenses from the state may operate from a single premises to the extent such operation is consistent with state law, as it may be amended from time to time.

E.

Transfer of Ownership Operator. Transfers of ownership interests that result in new majority ownership are not permitted and operators will be required to re-apply for a new commercial cannabis permit, consistent with the provisions outlined in Chapter 6, Article 14 of the Hayward Municipal Code. A permittee shall notify the City if it intends to transfer partial ownership or operational control of a commercial cannabis business and shall complete and submit a New Owner Attestation Form prior to any partial ownership transfer and pay the additional fee associated with the background/LiveScan check. The transferee shall be responsible for complying with all applicable local and state licensing requirements. Any conditions imposed upon the transferor by the original conditional use permit shall be binding upon any subsequent transferees. Any transfer of ownership or operational control of a commercial cannabis business which results in a lapse of normal operations for a period of six (6) months or more shall be required to obtain a new use permit, consistent with Sections 10-1.3170 or 10-1.3270 of this Code, as applicable. Any changes to the approved business name, changes to the product marketing, and/or rebranding of the commercial cannabis business shall be subject to review and approval by the City prior to any changes.

F.

Employee Identification.

1.

While at the commercial cannabis business's premises or location, each owner, manager, and employee engaged in the cultivation, processing, manufacturing, distributing, testing, transporting, delivery, handling or dispensing of cannabis shall, at all times while engaged in the duties of his or her position, wear in plain sight, on his or her person and above the waist, a valid identification badge, which has been reviewed and approved by the City of Hayward.

2.

While engaged in the duties of his or her position for the cannabis business, but not at the cannabis business's premises or location, each owner, manager and employee engaged in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis shall at all times have in his or her possession a valid identification badge, approved by the City of Hayward.

3.

Upon request by any City official charged with enforcing the provisions of this Code, or any state official charged with enforcing state law pertaining to cannabis businesses, each owner, manager and employee engaged in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis shall produce such valid identification badge for inspection.

4.

No owner, manager, or employee engaged in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis shall engage in any activities on behalf of the commercial cannabis business, without first obtaining a valid identification badge from the commercial cannabis operator within ten (10) days of employment.

5.

Identification badges shall remain at the commercial cannabis business's premises when not in use. Owners, managers, and employees participating in the cultivation, processing, manufacturing, distribution, testing, transporting, delivery, handling or dispensing of cannabis shall not take identification badges home or off-premises, except in the case of traveling off-premises on official business of the cannabis business, including delivery or transport of cannabis.

G.

Security. Commercial cannabis businesses shall provide adequate security on the premises, including any on-site security, lighting and alarms, to insure the public safety and the safety of persons within the facility and to protect the premises from theft. All commercial cannabis businesses shall provide at least one, state-licensed, security guard on the premises during hours of operation. Additionally, all commercial cannabis businesses and cannabis operators shall include a security and safety plan that includes the following minimum requirements:

1.

Security Cameras. Security surveillance IP video cameras shall be installed and maintained in good working order to provide coverage on a twenty-four-hour real-time basis of all internal and exterior areas where cannabis is cultivated, weighed, manufactured, packaged, stored, transferred, tested, and dispensed. The cameras shall allow for remote access to be provided to the Hayward Police Department. The security surveillance cameras shall be oriented in a manner that provides clear and certain identification of all individuals within those areas. IP cameras shall remain active at all times and be NDAA compliant. All security cameras shall be capable of operating under any lighting condition. Security video must use standard industry format to support criminal investigations and shall be maintained for ninety (90) days.

2.

Alarm System. A professionally monitored security alarm system shall be installed and maintained in good working condition. The alarm system shall include sensors to detect entry and exit from all secure areas and all windows. Commercial cannabis businesses shall keep the name and contact information of the alarm system installation and monitoring company as part of the commercial cannabis business's onsite books and records. Cannabis operators shall also identify a local contact who will be responsible for addressing security and safety issues and shall provide and keep current that contact information to the Hayward Police Department as part of the permitting process.

3.

Secure Storage and Waste. Commercial cannabis products and associated product manufacturing, distribution or cultivation waste shall be stored and secured in a manner that prevents diversion, theft, loss, hazards and nuisance. Additionally, all trash and recycling containers, regardless of location, must be locked and secured.

4.

Transportation. Commercial cannabis businesses shall implement procedures for safe and secure transportation and delivery of commercial cannabis, including all commercial cannabis products and currency in accordance with state law.

5.

Building Security. All points of ingress and egress to a commercial cannabis business shall be secured with Building Code compliant commercial-grade, non-residential door locks and/or window locks.

6.

Emergency Access. Security measures shall be designed to ensure emergency access is provided to the Hayward Police Department and Hayward Fire Department for all areas on the premises in the case of an emergency.

7.

Background Checks. All employees working in a commercial cannabis business shall be subject to background/LiveScan checks prior to the start date of employment. Additionally, all employees shall furnish the Hayward Police Department a state or federal registered identification card, upon request. Employees must authorize the use of the results to run a state and federal criminal background check. LiveScan fees are payable to the Hayward Police Department at the time of submission of the LiveScan.

8.

Inspections. During regular business hours, all commercial cannabis business premises shall be accessible, upon request, to an identified Hayward Police Department, Hayward Fire Department, Planning Division or Code Enforcement employee for random and/or unannounced inspections.

9.

Additional Information. The Chief of Police may require additional information to be included in the site security plan, including but not limited to, identification of on-site security personnel.

H.

Odor Control. All commercial cannabis businesses shall incorporate and maintain adequate on-site odor control measures such that the odors as a result of cultivation, manufacturing, distribution, transport or sales of cannabis and cannabis-related products cannot be readily detected from outside of the structure in which the business operates or from other non-cannabis businesses adjoining the commercial cannabis business.

I.

Neighborhood Compatibility Plan. Prior to the issuance of any commercial cannabis permit, applicants shall submit a neighborhood compatibility plan that demonstrates how the management and operation of the proposed commercial cannabis business will be compatible with the surrounding neighborhood, including proposals to mitigate potential negative impacts on the surrounding neighborhood.

J.

Point of Contact. All commercial cannabis businesses shall provide the City Manager or his/her designee, and all residents, businesses and property owners within one hundred (100) feet of the permitted premises with the current name, phone number, secondary phone number and e-mail address of an on-site community relations staff person to whom notice of any operating problems associated with the premises may be reported. This information shall be updated as necessary to keep it current.

All commercial cannabis businesses shall have an on-site manager at each permitted facility within the City of Hayward who is responsible for overall operation during times that employees are conducting operations and shall provide the City Manager or his/her designee with contact information for all such persons, including telephone number and email address. Permittees shall also provide the City with the name and contact information including phone number of at least one manager that can be reached twenty-four (24) hours a day.

K.

Nuisance Abatement. Commercial cannabis business operators shall take all reasonable steps to discourage and correct conditions that constitute a public or private nuisance in parking areas, sidewalks, alleys, and areas surrounding a permitted facility. Such conditions include but are not limited to: smoking; creating a noise disturbance; loitering; littering; and graffiti. Graffiti must be removed from property and parking lots under the control of the permittee within forty-eight (48) hours of discovery. To mitigate potential nuisances, all cannabis operators shall participate in the Adopt-A-Block program with Keep Hayward Clean and Green.

L.

Testing Laboratories. In addition to the general requirements for commercial cannabis businesses listed in Section 10-1.3604, all testing laboratories must obtain and maintain ISO/IEC 17025 accreditation by the State of California. Testing laboratories may be issued a provisional license allowing them to operate while they obtain ISO/IEC 17025 accreditation, provided they meet all other local and state requirements.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

In addition to the general operating requirements set forth in Section 10-1.3604, this section provides additional requirements for commercial cannabis cultivation.

A.

Use Permit Required. Depending on the size of the facility, an administrative use permit or conditional use permit shall be required for commercial cannabis cultivation, pursuant to the land use and development regulations contained within Chapter 10, Article 1 (Zoning Ordinance), as amended. Commercial cannabis cultivation businesses up to five thousand (5,000) square feet of gross floor area are permitted in select zoning districts, subjected to an administrative use permit. Commercial cannabis cultivation businesses containing five thousand one (5,001) square feet or greater gross floor area are permitted in select zoning districts, subject to issuance of a conditional use permit.

B.

Outdoor commercial cultivation prohibited. The commercial cultivation of cannabis may only be conducted within a fully enclosed space.

C.

Pesticides. The commercial cultivation of cannabis must be conducted in accordance with all applicable federal, state, and local laws and regulations governing the use of pesticides. Any fumigation or insecticidal fogging shall comply with the California Fire Code Chapter 26 (Fumigation and Insecticidal Fogging).

D.

Sustainability Plan. As part of an application to operate within the City of Hayward, all commercial cannabis cultivation businesses shall provide a sustainability plan that incorporates best practices of sustainability for the proposed business operations and site-specific improvements. The plan may include, but not limited to, energy conservation and efficiency measures, water conservation measures, strategies to reduce air emissions, and recycling practices.

E.

Generators. The use of generators for commercial cannabis cultivation is prohibited, except for temporary use in the event of a power outage or for emergency use. For purposes of this subsection, emergency use is defined in accordance with 17 California Code of Regulations § 93115, as may be amended. For purposes of this subsection, the limit on use of a generator in an emergency is ninety (90) days.

F.

Fire Protection Report. A technical report may be required by the Hayward Fire Department as part of the process to evaluate fire protection and determine the acceptability of equipment, extraction operations, or other processes as well as the storage/use of hazardous materials. The report shall be prepared by a qualified registered design professional or other professional approved by the Hayward Fire Department.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

In addition to the general operating requirements set forth in Section 10.1-3604, this section provides additional operational requirements for commercial cannabis delivery operators:

A.

Use Permit Required. An administrative use permit shall be required for commercial cannabis delivery operations, pursuant to the land use and development regulations contained within Chapter 10, Article 1 (Zoning Ordinance), as amended.

B.

Non-Storefront Retail. Commercial cannabis delivery operators may sell cannabis goods to customers exclusively through delivery. A non-storefront retailer shall have and maintained a secured premises to store the cannabis goods for delivery, and the premises shall not be open to the public. A non-storefront retailer may only sell cannabis goods, cannabis accessories, and branded merchandise or promotional materials and may only receive cannabis goods for sale from a licensed distributor. All cannabis goods must comply with all packaging and labeling requirements as required by the state. The sale of expired cannabis or cannabis products is prohibited.

C.

Delivery Vehicles.

1.

Delivery vehicles shall not contain identifiable markings that associate the delivery service with the cannabis business.

2.

The applicant shall provide the Police Department with information regarding any motor vehicle used for the delivery of cannabis goods, including the vehicle's make, model, color, vehicle identification number (VIN), license plate number and Department of Motor Vehicles registration information. Vehicles shall be registered with the Hayward Police Department. Any motor vehicle used to deliver or transport cannabis goods is subject to inspection by the Hayward Police Department. Vehicles may be stopped and inspected by the Hayward Police Department at any licensed premises or during delivery or transport.

3.

Each delivery vehicle shall be equipped with a functioning dual-facing video camera and recording system affixed to the vehicle and positioned in such a way so as to capture the driver/interior of the vehicle, as well as the front outside of the vehicle.

4.

Video recordings from each delivery vehicle recording system shall be retained for ninety (90) calendar days. Such recordings shall be made available and accessible to the Hayward Police Department immediately upon request for review and copying during normal hours of operation, without the need for a search warrant, subpoena or court order.

5.

The delivery vehicle video and recording system must be of adequate quality, color rendition, resolution, and position to allow the ready identification of any individual driving the delivery vehicle, approaching the delivery vehicle, or occupying the passenger compartment of the delivery vehicle.

6.

Delivery vehicle video recordings shall be made available and accessible to the Hayward Police Department within twenty-four (24) hours of request.

7.

The delivery vehicle shall be equipped with a GPS tracking system that collects and stores vehicle movement during product delivery and meets the requirements for GPS reporting under Section 12(A)(8) and Section 12(B)(7). The historical driving data will be stored at least sixty (60) calendar days. The cannabis business shall provide this data to the Hayward Police Department upon request.

8.

Each delivery vehicle shall be equipped with a secure, locked container to store products. A secure container means an enclosed container affixed to a vehicle, the contents of which are not visible from the outside of the vehicle, which is made of sufficient materials and design so as to prevent entry without key or combination and cannot be easily removed from the vehicle.

D.

Delivery Log. All commercial cannabis delivery operators must maintain a delivery log of all transactions and provide access to that log upon request to the Hayward Police Department. A "Delivery log" means a list of all deliveries of cannabis and/or cannabis product completed per delivery vehicle. The log shall contain the following information:

1.

Name, address, and phone number of the cannabis business.

2.

Date of the delivery or deliveries.

3.

Time of departure from the cannabis business of the delivery vehicle.

4.

Time of return to the cannabis business of the delivery vehicle.

5.

Name, City-approved ID badge number, and delivery driver endorsement number of the delivery driver.

6.

Make, model, license plate number, and GPS tracking device ID assigned to the vehicle.

7.

Order number associated with each unique delivery.

8.

Address of the delivery for each order number.

9.

Time of delivery for each order number.

10.

Price or total value for each order number.

11.

Total price or value of all completed orders delivered.

12.

Name and signature of a manager certifying that the delivery log is complete and accurate.

13.

Total number of deliveries completed for that vehicle during that shift.

14.

Explanation and information concerning any unanticipated circumstances, if any, that occurred during the delivery (e.g. vehicle accident, flat tire, theft of product).

E.

Delivery Manifest. All commercial cannabis delivery operators must maintain a delivery manifest of all transactions and provide access to that manifest upon request to the Hayward Police Department. "Delivery manifest" means a detailed accounting of the cannabis and cannabis products authorized by the delivery center to be contained in the delivery vehicle at the time of departure from the delivery center and at the time of return to the delivery center. The delivery manifest shall contain the following information:

1.

Name, address, and phone number of the cannabis business.

2.

Date of departure of cannabis or cannabis product from the cannabis business and the time of return to the cannabis business.

3.

Time of departure of cannabis or cannabis product from the cannabis business and the time of return to the cannabis business.

4.

Name, City-approved ID badge number, and delivery driver endorsement number of the delivery driver.

5.

Make, model license plate number, and GPS tracking device ID assigned to the vehicle.

6.

Type of product (e.g. flower, concentrate, edible, infused product).

7.

Itemized product description (e.g. strain, manufacturer, description of edible such as candy bar, cookie, description of infused product such as tincture, lotion).

8.

Itemized amount of product by quantity or weight as appropriate for the type of product.

9.

Itemized value of product by quantity or weight as appropriate for the type of product.

10.

Total amount of product by quantity or weight as appropriate for the type of product at the time of departure from the cannabis business and at the time of return to the cannabis business if a transaction(s) did not occur or was modified.

11.

Total value of all medicinal cannabis and medicinal cannabis products in the vehicle at the time of departure from the cannabis business and at the time of return to the cannabis business.

F.

Safety and Security.

1.

If delivery services will be provided as part of the commercial cannabis retail operation, the application shall describe the operational plan and specific extent of such service, security protocols, and how the delivery services will comply with the requirements set forth in this Chapter and state law.

2.

A licensed retailer's delivery employee shall not carry cannabis goods in the delivery vehicle with a value in excess of five thousand dollars ($5,000.00) at any time. The value of cannabis goods carried in the delivery vehicle for which a delivery order was not received and processed by the licensed retailer prior to the delivery employee departing from the licensed premises may not exceed three thousand dollars ($3,000.00).

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

In addition to the general operating requirements set forth in Section 10.1-3604, this section provides additional operational requirements for commercial cannabis distribution operators:

A.

Use Permit Required. An administrative use permit shall be required for commercial cannabis distribution operations, pursuant to the land use and development regulations contained within Chapter 10, Article 1 (Zoning Ordinance), as amended.

B.

Distribution Vehicles.

1.

Vehicles used for distribution between licensed cannabis operators shall not contain identifiable markings that associate the distribution service with the cannabis business.

2.

A licensed distributor shall only travel between licensees' premises, except for necessary rest, fuel, or vehicle repair stops, while transporting cannabis goods, consistent with State law.

3.

The applicant shall provide the Police Department with information regarding any motor vehicle used for the delivery of cannabis goods, including the vehicle's make, model, color, vehicle identification number (VIN), license plate number and Department of Motor Vehicles registration information. Vehicles shall be registered with the Hayward Police Department. Any motor vehicle used to deliver or transport cannabis goods is subject to inspection by the Hayward Police Department. Vehicles may be stopped and inspected by the Hayward Police Department at any licensed premises or during delivery or transport.

4.

Each vehicle used in association with the distribution operation shall be equipped with a functioning dual-facing video camera and recording system affixed to the vehicle and positioned in such a way so as to capture the driver/interior of the vehicle, as well as the front outside of the vehicle.

5.

Video recordings from each distribution vehicle recording system shall be retained for ninety (90) calendar days. Such recordings shall be made available and accessible to the Hayward Police Department immediately upon request for review and copying during normal hours of operation, without the need for a search warrant, subpoena or court order.

6.

The distribution vehicle video and recording system must be of adequate quality, color rendition, resolution, and position to allow the ready identification of any individual driving the delivery vehicle, approaching the delivery vehicle, or occupying the passenger compartment of the delivery vehicle.

7.

Distribution vehicle video recordings shall be made available and accessible to the Hayward Police Department within twenty-four (24) hours of request.

8.

The distribution vehicle shall be equipped with a GPS tracking system that collects and stores vehicle movement during product delivery. The historical driving data will be stored at least sixty (60) calendar days. The cannabis business shall provide this data to the Hayward Police Department upon request.

9.

Each distribution vehicle shall be equipped with a secure, locked container to store products. A secure container means an enclosed container affixed to a vehicle, the contents of which are not visible from the outside of the vehicle, which is made of sufficient materials and design so as to prevent entry without key or combination and cannot be easily removed from the vehicle.

C.

Delivery Log. All commercial cannabis distribution operators must maintain a log of all transactions and provide access to that log upon request to the Hayward Police Department. A "delivery log" means a list of all deliveries of cannabis and/or cannabis product completed per delivery vehicle. The log shall contain the following information:

1.

Name, address, and phone number of the cannabis business.

2.

Date of the delivery or deliveries.

3.

Time of departure from the cannabis business of the delivery vehicle.

4.

Time of return to the cannabis business of the delivery vehicle.

5.

Name, City-approved ID badge number, and delivery driver endorsement number of the delivery driver.

6.

Make, model, license plate number, and GPS tracking device ID assigned to the vehicle.

7.

Order number associated with each unique delivery.

8.

Address of the delivery for each order number.

9.

Time of delivery for each order number.

10.

Price or total value for each order number.

11.

Total price or value of all completed orders delivered.

12.

Name and signature of a manager certifying that the delivery log is complete and accurate.

13.

Total number of deliveries completed for that vehicle during that shift.

14.

Explanation and information concerning any unanticipated circumstances, if any, that occurred during the delivery (e.g. vehicle accident, flat tire, theft of product).

D.

Delivery Manifest. All commercial cannabis distribution operators must maintain a delivery manifest of all transactions and provide access to that manifest upon request to the Hayward Police Department. "Delivery manifest" means a detailed accounting of the cannabis and cannabis products authorized by the delivery center to be contained in the delivery vehicle at the time of departure from the delivery center and at the time of return to the delivery center. The delivery manifest shall contain the following information:

1.

Name, address, and phone number of the cannabis business.

2.

Date of departure of cannabis or cannabis product from the cannabis business and the time of return to the cannabis business.

3.

Time of departure of cannabis or cannabis product from the cannabis business and the time of return to the cannabis business.

4.

Name, City-approved ID badge number, and delivery driver endorsement number of the delivery driver.

5.

Make, model license plate number, and GPS tracking device ID assigned to the vehicle.

6.

Type of product (e.g. flower, concentrate, edible, infused product).

7.

Itemized product description (e.g. strain, manufacturer, description of edible such as candy bar, cookie, description of infused product such as tincture, lotion).

8.

Itemized amount of product by quantity or weight as appropriate for the type of product.

9.

Itemized value of product by quantity or weight as appropriate for the type of product.

10.

Total amount of product by quantity or weight as appropriate for the type of product at the time of departure from the cannabis business and at the time of return to the cannabis business if a transaction(s) did not occur or was modified.

11.

Total value of all medicinal cannabis and medicinal cannabis products in the vehicle at the time of departure from the cannabis business and at the time of return to the cannabis business.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

In addition to the general operating requirements set forth in Section 10.1-3604, this section provides additional operational requirements for commercial cannabis manufacturing, level 1 and level 2:

A.

Use Permit Required. Depending on the size of the facility, an administrative use permit or conditional use permit shall be required for commercial cannabis manufacturing (non-volatile) operations, pursuant to the land use and development regulations contained within Chapter 10, Article 1 (Zoning Ordinance), as amended. Commercial cannabis manufacturing level 1 (non-volatile) up to five thousand (5,000) square feet of gross floor area are permitted in select zoning districts, subject to an administrative use permit. Commercial cannabis manufacturing level 1 (non-volatile) over five thousand (5,000) square feet of gross floor area are permitted in select zoning districts, subject to a conditional use permit. Commercial cannabis manufacturing - level 2 (volatile) are only permitted in the select zoning districts, subject to the issuance of a conditional use permit, regardless of size.

B.

Extraction Processes. Commercial cannabis manufacturers shall utilize only extraction processes that are (a) solvent-free or that employ only non-flammable, nontoxic solvents that are recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act, and/or (b) use solvents exclusively within a closed loop system that meets the requirements of the federal Food, Drug, and Cosmetic Act including use of authorized solvents only, the prevention of off-gassing, and certification by a California licensed engineer.

C.

Loop Systems. No closed loop systems shall be utilized without prior inspection and approval of the City's Building Official and Fire Code Official.

D.

Standards of Equipment. Manufacturing, processing and analytical testing devices used by the cannabis manufacturer must be UL (Underwriters Laboratories) listed or otherwise certified by an approved third-party testing agency or engineer and approved for the intended use by the City's Building Official and Fire Code Official.

E.

Food Handler Certification. All owners, employees, volunteers or other individuals that participate in the production of edible cannabis products must be state certified food handlers. The valid certificate number of each such owner, employee, volunteer or other individual must be on record at the cannabis manufacturer's facility where that individual participates in the production of edible cannabis products.

F.

Edible Product Manufacturing. Commercial cannabis businesses that sell or manufacture edible cannabis products shall obtain a permit from the Alameda County Public Health Department. Permit holders shall comply with state and county health permit requirements. These requirements provide a system of prevention and overlapping safeguards designed to minimize foodborne illness, ensure employee health, demonstrate industry manager knowledge, ensure safe food preparation practices and delineate acceptable levels of sanitation for preparation of edible products.

G.

Sustainability Plan. As part of an application to operate within the City of Hayward, all commercial cannabis cultivation businesses shall provide a sustainability Plan that incorporates best practices of sustainability for the proposed business operations and site-specific improvements. The plan may include, but not limited to, energy conservation and efficiency measures, water conservation measures, strategies to reduce air emissions, and recycling practices.

H.

Fire Protection Report. A technical report may be required by the Hayward Fire Department as part of the process to evaluate fire protection and determine the acceptability of equipment, extraction operations, or other processes as well as the storage/use of hazardous materials. The report shall be prepared by a qualified registered design professional or other professional approved by the Hayward Fire Department.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

In addition to the general operating requirements set forth in Section 10.1-3604, this section provides additional operational requirements for commercial cannabis microbusinesses shall comply with the following:

A.

Use Permit Required. A conditional use permit shall be required for commercial cannabis microbusiness operations, pursuant to the land use and development regulations contained within Chapter 10, Article 1 (Zoning Ordinance), as amended.

B.

As part of the conditional use permit, applicants shall obtain a license issued by the State Bureau of Cannabis Control for the cultivation of cannabis on an area less than ten thousand (10,000) square feet and to act as a licensed distributor, manufacturer - level 1 (non-volatile), or retailer (storefront or non-storefront) pursuant to California Business and Professions Code sections 26050 and 26070. In order to be defined as a microbusiness, the applicant must engage in three of the four listed activities and comply with all the operational and regulatory guidelines for each activity as defined by this Chapter.

C.

Fire Protection Report. A technical report may be required by the Hayward Fire Department as part of the process to evaluate fire protection and determine the acceptability of equipment, extraction operations, or other processes as well as the storage/use of hazardous materials. The report shall be prepared by a qualified registered design professional or other professional approved by the Hayward Fire Department.

D.

Retail Use. The retail sales of cannabis and cannabis products (storefront) is allowed as a component of a microbusiness operation as defined by Business and Professions Code Section 26070. The operator must hold a microbusiness (Type 12) license issued by the state Bureau of Cannabis Control. The cumulative floor area of the storefront retail component shall not exceed ten (10) percent of the first-floor area of the industrial building used for microbusiness activities or one thousand (1,000) square feet, whichever is less. All cannabis and cannabis products for sale as part of an ancillary storefront retail activity must have been cultivated, produced, or manufactured on-site. For non-storefront retail uses, there is no size limitation for non-storefront retail activities and there is no limitation to what retail cannabis products can be sold.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

In addition to the general operating requirements set forth in Section 10-1.3604, this section provides location and operating requirements for commercial cannabis retail dispensaries:

A.

Use Permit Required. A conditional use permit shall be required for commercial cannabis retail dispensaries, pursuant to the land use and development regulations contained within Chapter 10, Article 1 (Zoning Ordinance), as amended.

B.

Drive-Through Dispensaries. Drive-through, drive-up or walk-up window services in conjunction with commercial cannabis retail dispensaries is prohibited.

C.

Setbacks and Buffers. In addition to the zoning requirements and development regulations contained in Chapter 10 (Zoning Ordinance), all commercial cannabis retail storefront dispensaries shall be subject to the following:

1.

Overconcentration. To avoid overconcentration, a commercial cannabis retail storefront dispensary shall not be located within five hundred (500) feet of any other commercial cannabis retail storefront dispensary within the City of Hayward.

2.

Legal Non-Conforming Use. Establishment of a school or sensitive land use, as defined in Business and Professions Code Section 26054 and Health and Safety Code Section 11362.768, within the required five hundred-foot buffer of a commercial cannabis retail storefront dispensary after such facility has obtained a conditional use permit shall render the retail storefront dispensary a legally non-conforming use, which is subject to the protections and provisions of Section 10-1.2900 (Non-Conforming Uses).

D.

Operational Requirements. In addition to project specific conditions of approval, commercial cannabis retail dispensaries shall comply with the following operational requirements:

1.

Employees. The commercial cannabis retail operator shall maintain a current register of the names of all employees employed by the commercial cannabis retailer and shall disclose such register for inspection by any City officer or official for purposes of determining compliance with the requirements of this section.

2.

Recordkeeping. The commercial cannabis retail operator shall maintain patient and sales records in accordance with state law.

3.

Protocols and requirements for persons entering the site. No person shall be permitted to enter a commercial cannabis retail dispensary without government issued photo identification. A commercial cannabis retail dispensary shall not provide cannabis or cannabis products to any person, whether by purchase, trade, gift or otherwise, who does not possess a valid government-issued photo identification card or a valid physician's recommendation under Section 11362.712 of the Health and Safety Code.

4.

Hours of Operation. A commercial cannabis retail dispensary may operate up to seven (7) days per week with the hours of operation determined by the Planning Commission with the issuance of a conditional use permit. Upon commercial cannabis permit renewal, the City may impose more restrictive hours of operation due to site-specific conditions or as the result of excessive and extraordinary calls for service, as determined by the City's Police Department. The basis for any restriction on the hours or operation shall be specified in the commercial cannabis permit.

5.

Secured Access. A commercial cannabis retail dispensary shall be designed to prevent unauthorized entrance into areas containing cannabis or cannabis products. Limited access areas accessible to only authorized personnel shall be established.

6.

Product Storage. Commercial cannabis and cannabis products that are not used for display purposes or immediate sale shall be stored in a secured and locked room, safe, or vault, and in a manner reasonably designed to prevent diversion, theft, and loss.

7.

Cannabis Paraphernalia. No dispensary shall sell or display any cannabis related paraphernalia or any implement that may be used to administer commercial cannabis or commercial cannabis products unless specifically described and authorized in the conditional use permit. The sale of such products must comply with the City's Zoning Code and any other applicable state regulations.

8.

On-site Physician Restriction. Commercial cannabis retail dispensaries shall not have an on-site or on-staff physician to evaluate patients and provide a recommendation for medical cannabis.

9.

Site Management. The commercial cannabis retail operator shall take reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks, alleys and areas surrounding the premises during business hours if directly related to the patrons of the subject retailer. For purposes of this subsection, "Reasonable steps" shall include calling the police in a timely manner; and requesting those engaging in nuisance activities to cease those activities, unless personal safety would be threatened in making the request.

10.

Permit Display. All commercial cannabis retail dispensaries shall maintain a copy of the valid operating commercial cannabis permit issued by the City on display during business hours and in a conspicuous place so that the same may be readily seen by all persons entering the facility.

11.

Storefront Entrance and Accessibility. The storefront entrance of a commercial cannabis retail dispensary shall be ADA accessible and placed in a visible location that provides an unobstructed view from the public right-of-way.

E.

On-Site Consumption. In general, on-site consumption of cannabis and cannabis products by customers or employees is prohibited. If permitted, the consumption of cannabis and cannabis products shall be subject to the following requirements:

1.

Patients. Qualified patients, as defined by state law, shall not be permitted to consume medical cannabis on the site of a commercial cannabis retail dispensary except as permitted in accordance with Chapter 5, Article 6 (Smoking Pollution Control) of the Hayward Municipal Code and state law and as follows:

i.

Conditional use permit applications for a commercial cannabis retail business shall include a statement as to whether the use will include on-site consumption by patients of medical cannabis and medical cannabis products.

ii.

If on-site consumption will be included, the application shall describe the operational plan and specific extent of such provision, security protocols, and how the consumption will comply with the requirements set forth in this Chapter and state law. Specifically, any on-site consumption shall be subject to the following conditions: (1) Access to the area where cannabis consumption is allowed is restricted to persons 21 years of age or older; (2) cannabis consumption is not visible from any public place or non-age restricted area; (3) sale or consumption of alcohol or tobacco is not allowed on the premises.

2.

Employees. Employees of a commercial cannabis retail facility who are qualified patients may consume medical cannabis or medical cannabis products on-site within designated spaces not visible by members of the public, provided that such consumption is in compliance with Chapter 5, Article 6 (Smoking Pollution Control) of the Hayward Municipal Code and state law.

3.

Signage and Public Notice. The entrance to a commercial cannabis retail dispensary shall be clearly and legibly posted with a notice indicating that smoking, vaping, and consumption of cannabis and cannabis products is prohibited on site, except as permitted in accordance with Chapter 5, Article 6 of the Hayward Municipal Code (Smoking Pollution Control) and state law.

F.

Delivery Services. Commercial cannabis retail dispensaries that provide customer deliveries of cannabis and cannabis products shall be permitted as an ancillary use, pursuant to the regulations outlined in Section 10-1.3606.

G.

Ancillary Cannabis, Industrial Hemp and CBD. No general retailer can sell any cannabis or cannabis products as an ancillary use at their retail location without first applying for a commercial cannabis retail dispensary permit as the principal land use at their location and complying with the location and permitting requirements of this Section. Retail sales of products that contain CBD (cannabidiol) derived from industrial hemp are allowed and do not require a commercial cannabis permit. The use of industrial hemp as the source of CBD to be added to food products is prohibited, unless otherwise permitted by the State of California.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

A.

Temporary special events that involve onsite cannabis sales to, and consumption by persons 21 years of age or older shall not be allowed unless the commercial cannabis business obtains a special event permit from the City pursuant to the adopted Rules and Regulations for Food Vendors and the Rules and/or the Regulations for Special Event Organizers, as applicable, and demonstrates that it possesses a local cannabis business permit and state license for retail cannabis sales.

B.

Permit Required. Applications for a special event that includes cannabis shall be considered a temporary use, per Chapter 10, Article 1 (Zoning Ordinance) and shall obtain an administrative use permit, pursuant to the zoning district and location of the event.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

In addition to the required findings contained in Section 10-1.3125 (Administrative Use Permit) and Section 10-1.3125 (Conditional Use Permit), every land use application requiring discretionary review for cannabis and cannabis products shall be required to make the following findings prior to issuance:

1.

The proposed cannabis use will not be detrimental to the public health, safety, or general welfare in that the cannabis operation is situated in an appropriate location where sensitive land uses will not be adversely impacted;

2.

Appropriate measures have been taken to address nuisances related to odor, noise, exhaust, and waste related to the cannabis operation;

3.

The cannabis operation is designed to be safe, secure, sustainable and aesthetically compatible with the surrounding area; and

4.

The cannabis operation will not place a burden on the provision of public services disproportionate to other industrial or commercial uses.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)

In addition to the permitting requirements contained in Chapter 6 (Businesses, Professions and Trades), the reviewing authority may require modification, discontinuance or revocation of a conditional use permit or administrative use permit for a commercial cannabis business if the review authority finds that the use is operated or maintained in a manner that it:

A.

Adversely affects the health, peace or safety of persons living or working in the surrounding area;

B.

Contributes to a public nuisance; or

C.

Has resulted in excessive nuisance activities including disturbances of the peace, illegal drug activity, diversion of commercial cannabis or commercial cannabis products, public intoxication, smoking in public, harassment of passerby, littering, or obstruction of any street, sidewalk or public way; or

D.

Violates any provision of the Hayward Municipal Code or condition imposed by a City issued permit, or violates any provision of any other local, state, regulation, or order, including those of state law or violates any condition imposed by permits or licenses issued in compliance with those laws.

(Amended by Ordinance 21-05, § 4, adopted July 20, 2021)