Report

Cannabis Cafe Operating Standards Rulemaking

Office of Cannabis
You may submit written comments or arguments relevant to the proposed rules during the comment period by emailing officeofcannabis@sfgov.org. You can also submit comments by mail or in person to: Office of Cannabis 49 South Van Ness, Suite 660 San Francisco, CA 94103

Background

Pursuant to Article 16 of the San Francisco Police Code, a Cannabis Cafe is a permitted type of Commercial Cannabis Activity that authorizes a Storefront Cannabis Retailer to sell Cannabis and/or Cannabis Products exclusively for the purpose of Consumption on the premises, subject to all applicable City and State laws.

Applicants seeking a Cannabis Cafe Permit must satisfy the application requirements set forth in Police Code Section 1609 and obtain all additional City approvals necessary to operate a Cannabis Cafe, including, but not limited to, a Cannabis Consumption Permit issued pursuant to Health Code Article 8A.

These rules are intended to implement the operating standards established under Article 16 and provide guidance to Cannabis Café Permit Holders regarding their ongoing responsibilities after permit issuance.

Definitions

"Cannabis Cafe" means a fixed place of business where Cannabis and/or Cannabis Products are sold to Customers exclusively for the purpose of Consumption on the premises.

“Cannabis Café Operations Plan” means the operational plan submitted with a Cannabis Café permit application describing security procedures, cannabis deliveries, and other operational information required by the Director.

“Cannabis Consumption Area” means the area approved by the Department of Public Health under the Cannabis Consumption Permit where cannabis consumption is authorized.

“Cannabis Consumption Permit” means the permit issued pursuant to Health Code Article 8A authorizing on-site cannabis consumption.

“Compassion Program” means a program authorized under Police Code Section 1618(aa) through which a Cannabis Café may provide medicinal cannabis or medicinal cannabis products at no or nominal cost to qualified medical cannabis patients consistent with State law.  

Rules

  1. Required Authorizations
    1. Before commencing Cannabis Cafe operations, every Permittee shall obtain and maintain all licenses, permits, and approvals required by State, and local law including but not limited to:
      1. A valid Office of Cannabis Permit for Cannabis Cafe;
      2. A valid State storefront retailer license;
      3. A Cannabis Consumption Permit issued pursuant to Health Code Article 8A; and
      4. Any permits, inspections, or approvals required by other City Departments.
    2. Failure to maintain any required authorization may result in enforcement action by the Office of Cannabis and/or other governing agencies.
  2. Cannabis Cafe Operations Plan
    1. A Permittee shall operate in accordance with the Cannabis Cafe Operations Plan approved by the Office of Cannabis.
    2. The Operations Plan shall address, at a minimum:
      1. Security procedures;
      2. Receipt and storage of cannabis products;
      3. Cannabis shipment arrival procedures;
      4. Operation of designated consumption areas;
      5. Accommodations for medicinal cannabis patients;
      6. Employee responsibilities, including procedures to prevent customers from leaving the premises with cannabis products purchased for on-site consumption;
      7. Emergency procedures; and
      8. Any additional operational procedures required by the director.
    3. Any material change to the approved Operations Plan, including changes affecting security, designated consumption areas, cannabis deliveries, or medicinal cannabis accommodations, shall be submitted to the Office of Cannabis for review prior to implementation, unless otherwise authorized by the Director.
  3. Security
    1. Permittee shall implement and continuously maintain the security measures described in the approved Security Plan.
    2. Security measures shall be designed to:
      1. Prevent theft or diversion of Cannabis Products;
      2. Protect employees and customers;
      3. Safeguard cannabis inventory;
      4. Deter unauthorized access to restricted areas; and
      5. Promote public safety.
    3. Security procedures shall remain consistent with applicable State cannabis regulation.
  4. Cannabis Shipments
    1. Permittee shall receive cannabis and cannabis products only in accordance with the receiving procedures identified in the approved Operations Plan.
    2. The Operations Plan shall identify:
      1. Shipment hours;
      2. Receiving locations;
      3. Inventory intake procedures;
      4. Storage procedures; and
      5. Security measures during deliveries.
  5. On-Site Consumption Controls
    1. Cannabis Cafes are authorized to permit cannabis consumption only within areas approved under the Cannabis Consumption Permit. Permittee shall implement and maintain reasonable operational controls designed to ensure that cannabis products intended for on-site consumption are consumed only within the authorized consumption area and to minimize unauthorized removal or diversion of such products.
    2. At a minimum, Permittee shall:
      1. Clearly identify and maintain the boundaries of all approved cannabis consumption areas;
      2. Maintain procedures to ensure that cannabis intended for on-site consumption is consumed only within authorized consumption areas;
      3. Implement written operating procedures designed to discourage customers from removing cannabis products intended for on-site consumption from the designated consumption area or the Premises;
      4. Develop procedures for addressing violations of the Cannabis Café's consumption policies, including employee intervention and documentation of significant or repeated incidents;
      5. Maintain reasonable inventory control measures to minimize theft, diversion, or unauthorized distribution of cannabis products intended for on-site consumption; and
      6. Report theft, diversion, or other incidents involving cannabis products as required by State and local law.
  6. Employee Training
    1. Permittee shall ensure that employees responsible for supervising cannabis consumption receive training appropriate to their assigned duties.
    2. Training shall include, at a minimum:
      1. Procedures for preventing unauthorized removal of cannabis intended for on-site consumption;
      2. Refusing service when required by applicable law, regulations or permit conditions; and
      3. Incident reporting requirements.
    3. Training records shall be maintained and made available to the Office of Cannabis upon request.
  7. Medicinal Cannabis Access
    1. Permittee serving medicinal cannabis patients shall maintain the accommodations described in their approved application and Operations Plan.
    2. Such accommodations may include:
      1. Providing an area where qualified patients may communicate confidentially with employees;
      2. Maintaining an adequate supply of medicinal cannabis products; and
      3. Implementing procedures that support qualified medicinal cannabis patients consistent with State law.
  8. Business Name
    1. A Cannabis Cafe shall not operate under a business name that:
      1. Is likely to mislead members of the public into believing cannabis products may legally be sold to persons under 21 years of age; or
      2. Is likely to entice minors to attempt to patronize the business.
  9. Continuing Compliance
    1. Permit Holders shall continuously comply with:
      1. Article 16 of the San Francisco Police Code;
      2. Article 8A of the Health Code;
      3. All applicable State cannabis laws and regulations;
      4. All permit conditions imposed by the Office of Cannabis; and
      5. All applicable rules adopted by the Director.
    2. Failure to maintain required permits or comply with applicable laws may result in enforcement action by the Office of Cannabis and/or other governing agencies.
  10. Compliance with Permit Conditions
    1. Failure to comply with these operating standards, approved permit conditions, or applicable provisions of Article 16 may constitute grounds for enforcement under Police Code Sections 1612, 1615, and 1617.
    2. Enforcement Actions may include:
      1. Issuance of a Notice of Violation;
      2. Administrative penalties;
      3. Suspension of a Cannabis Business Permit;
      4. Revocation of a Cannabis Business Permit; or
      5. Any other remedy authorized by applicable law.

Comment period start date

September 11, 2026

Comment period end date

September 25, 2026