Alameda City Council to Vote on Final Passage of Cannabis Business Ordinance

Tonight Alameda City Council will vote on the final passage of Alameda’s cannabis businesses ordinance. The final draft of the ordinance can be found here

Commercial Business Regulations Overview:

Dual Permit Structure. The proposed ordinance (Article XVI) uses a dual permit structure, where businesses must first obtain a Conditional Use Permit (CUP) before applying for and obtaining a Regulatory Permit.

Activity and permit limits. The ordinance allows both medicinal and adult-use commercial cannabis activity. However, dispensary/retail businesses in Alameda can only be medicinal. The ordinance offers permits for (1) nursery cultivation, (2) manufacturing (volatile and non-volatile), (3) laboratory testing, (4) distribution (5) delivery, and (6) dispensary/retail businesses.

  1. Nursery Cultivation. Under the ordinance, only a single permit will be issued for cultivation. That permit is only for nursery cultivation activity, meaning the permit holder can not engage in any activity involving “the planting, growing, harvesting, drying, curing, grading, trimming, or processing of Cannabis, which is prohibited.” Draft Ordinance § 6-59.33(k). The cultivation permittee must also acquire a distributor permit.
  2. Manufacturing. The regulations offer two types of permits for manufacturing, volatile and non-volatile, and limit the total number of manufacturing permits to four.
  3. Laboratory Testing. The ordinance allows for two testing laboratories in Alameda.
  4. Distribution. Only a person holding a cultivation or manufacturing permit can also obtain a distributor permit.
  5. Delivery. The ordinance does not allow for delivery-only businesses in Alameda. However, delivery services to Alameda can be provided by qualified businesses outside of the City who obtain an Alameda delivery permit.
  6. Dispensary/retail. The ordinance allows for only two dispensary/retailer businesses in Alameda, and those businesses can only be medicinal. These dispensary/retail permittees can offer delivery services, but are prohibited from delivering adult-use products. On-site consumption is allowed.
Hannah Strassburger