§ 1626. CANNABIS DISTRIBUTORS.

(a) Authorized activities. A Cannabis Distributor Permit authorizes the Permittee to engage in the Commercial Distribution of Medicinal Cannabis and Adult Use Cannabis, provided that the Permittee is both an A-licensee and an M-licensee. A Cannabis Distributor that holds only an A-license may engage in the Commercial Distribution of Adult Use Cannabis and Cannabis Products only. A Cannabis Distributor that holds only an M-License may engage in the Commercial Distribution of Medicinal Cannabis and Cannabis Products only.

(b) Operating Standards. In addition to the operating requirements set forth in Section 1618 of this Article 16, a Cannabis Distributor shall comply with the following operating standards:

(1) A Cannabis Distributor shall inspect all Cannabis and Cannabis Products received by it for quality assurance prior to Distribution.

(2) A Cannabis Distributor shall Distribute Cannabis and Cannabis Products by Commercial Vehicle only. Distribution by non-Commercial Vehicles, drones, human powered vehicles, and unmanned vehicles is prohibited.

(3) If a Cannabis Distributor receives notice that any Cannabis or Cannabis Products that are currently or were previously in the Cannabis Distributor’s possession, and that were either Cultivated or Manufactured by a Cannabis Business located in San Francisco or intended for possible distribution or sale to a Cannabis Business located in San Francisco, have been tested and have failed any requirements established by state regulation, the Cannabis Distributor shall notify the Department of Public Health and the Office of Cannabis as soon as practicable, and no later than 48 hours after the Cannabis Distributor receives notice of those results. Such notification shall include, to the extent available to the Cannabis Distributor, the name, State license number, and local Permit number of the Manufacturer that provided the Cannabis to be tested, the test results, reason for failure, and any applicable track and trace information.

(Added by Ord. , File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. , File No. 191174, App. 12/20/2019, Eff. 1/20/2020)