Ordinance amending the Health, Planning, Police, and Business and Tax Regulations Codes to establish a new permit type for cannabis cafés to be administered by the Office of Cannabis that will authorize the permittee to sell cannabis and cannabis products only for consumption on the premises of the café; exempt cannabis cafés from the prohibition on smoking in business establishments; eliminate the prohibition on establishments with a cannabis consumption permit requiring employees to enter a designated smoking room as a condition of employment; exempt cannabis cafés in certain circumstances from the 600-foot buffer rule that applies to cannabis retail establishments; restrict eligibility for cannabis café permits for one year to businesses that currently hold a cannabis storefront retailer permit or that have the same owners as such a business; require Equity Applicants that apply for a cannabis café permit to pay the $2,000 application fee, any permit amendment processing costs, and the $3,000 license fee for the first year of operation, associated with the cannabis café permit; af

This ordinance establishes a new permit type for cannabis cafés in San Francisco, allowing for the sale and on-site consumption of cannabis products. Key provisions include:

• Permitting and Administration: The Office of Cannabis will administer the new permit. Cafés will be exempt from general smoking prohibitions in business establishments and from a rule preventing employees from entering designated smoking rooms.
• Location Restrictions: Cannabis cafés will be exempt from the standard 600-foot buffer rule that applies to cannabis retail establishments, under certain circumstances.
• Eligibility: For the first year, only businesses that currently hold a cannabis storefront retailer permit, or have the same owners, are eligible to apply for a cannabis café permit.
• Fees for Equity Applicants: Equity Applicants applying for a cannabis café permit must pay a $2,000 application fee, permit amendment processing costs, and a $3,000 license fee for the first year.
• Operational Standards: Cannabis cafés must obtain a cannabis consumption permit from the Department of Public Health, restrict consumption areas to those 21+ (or 18+ for medicinal), and cannot sell alcohol or tobacco on the premises. Sales are limited to consumption on-site, and certain quantities per customer per day are capped.
• Enforcement: The Police Department may conduct sting operations, including using underage individuals, to check compliance with sales regulations.