San Jose regulates commercial cannabis operations under SJMC Chapter 6.88. Dispensaries and retail cannabis businesses require a Cannabis Regulatory Permit from the City and must comply with strict zoning requirements. Cannabis businesses are generally limited to commercial and industrial zoning districts and must maintain buffer distances of at least 150 feet from schools, 1,000 feet from other cannabis businesses, and specified distances from residential zones, parks, and community centers.
The City issues limited Cannabis Regulatory Permits for various license types including retail, cultivation, manufacturing, distribution, and testing. Operating hours are restricted to 6:00 AM to 10:00 PM. All cannabis businesses must have security plans, surveillance systems, and odor control measures. The City conducts annual compliance inspections. Cannabis businesses must pay a Cannabis Business Tax under SJMC Chapter 4.66.
Operating without a Cannabis Regulatory Permit is a misdemeanor. Violations can result in permit revocation, fines up to $2,500 per day, and criminal prosecution. The City has conducted enforcement actions against unlicensed dispensaries.
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