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File Number: 20-251 <br />following extensive discussion and analysis, including at a public hearing held on December 19, <br />2016, which was continued for further research and discussion at a City Council work session <br />held on April 24, 2017. <br />City Council direction provided at that meeting was to allow cannabis laboratories and develop <br />special required findings for approval of Cannabis Product Manufacturing uses. Those findings <br />and regulations were subsequently presented to the City Council and adopted on June 19, 2017. <br />At the time of initial adoption, the cannabis manufacturing regulations were set up as a pilot <br />program that allowed no more than five such permits to be issued, although that cap was <br />subsequently eliminated by the City Council earlier this year. <br />Analysis <br />“Industry, Cannabis Product Manufacturing” is defined in the City of San Leandro Zoning Code <br />Articles 3, 6, & 7 as follows: <br />“Industry, Cannabis Product Manufacturing. Cannabis manufacturing, processing, <br />and packaging of products derived from or infused with cannabis, including edibles, <br />concentrates and extracts for wholesale or retail to cannabis dispensaries or other <br />cannabis product distributors and manufacturers as allowed by state law. This definition <br />includes cannabis manufacturers requiring a Type 6 or 7 license from the State of <br />California. This definition does not include the cloning, planting or cultivation of cannabis <br />plants or the direct sales, distribution, delivery, or dispensing of manufactured cannabis <br />products to the public.” <br /> <br />Cannabis Product Manufacturing businesses are further limited to only the following zoning <br />districts: Industrial General (IG), Industrial General - Assembly Use (IG-AU), and Industrial Park <br />(IP), and subject to a Conditional Use Permit, which requires a noticed public hearing before the <br />Board of Zoning Adjustments. <br />As noted above, cannabis manufacturers are also required to receive a State license. For <br />cannabis manufacturers engaged in extraction, the California Department of Public Health offers <br />two primary license types: <br />·Type 6 - for extraction using a mechanical method or non-volatile solvent (e.g.: carbon <br />dioxide, ethanol, water, cooking oils, butter, or food-grade dry ice) <br />·Type 7 - for extraction using a volatile solvent (e.g.: butane, propane, and hexane) <br />Of these two license types, Type 7 is considered a higher-risk license type. Although a variety of <br />methods exist, one common method of Type 7 processing involves sending flammable solvents <br />(such as butane) through an extraction tube or other device filled with cannabis. The butane then <br />evaporates, leaving a sticky quasi-liquid concentrated form of cannabis extract. Because this type <br />of processing involves the use of volatile solvents, it can cause explosions when not properly <br />handled or administered in a manner that is consistent with appropriate building safety and fire <br />Page 2 City of San Leandro Printed on 6/10/2020 <br />796