Board advances commercial cannabis regulatory overhaul; apprenticeship requirement and ownership limits debated

The Board of Supervisors on Dec. 4 advanced an ordinance amending the municipal code for commercial cannabis activity, addressing licensing, ownership limits and apprenticeship pathways.

Supervisor Mandelmann, a co‑sponsor of the cleanup package, said the ordinance is an update after the city’s initial implementation period. “I would like to say that we have finished and we're done and we don't have to worry about this anymore. I cannot say that,” he added, noting further refinements will be necessary in 2019.

The rules package includes restrictions aimed at preventing large consolidation of retail storefronts and provisions encouraging equity applicants. Board members debated ownership‑cap language and whether limits should apply prospectively or include existing operators (grandfathering). Supervisors discussed a cap that would limit new permits per beneficial interest; the committee had agreed to limit beneficial interest to four permits prospectively, and the board asked staff to clarify whether the cap counts existing permits toward the total.

Separately, a related item to require that 35% of certain new hires be registered apprentices was continued for a week to allow discussions with industry groups and because a state apprenticeship approval was expected.

The cannabis ordinance was passed on first reading. Supervisors said additional amendments and a duplicated file would return in early 2019 to resolve open questions about ownership caps and equity program implementation.

Ending: The ordinance cleared first reading and will return with technical fixes and additional provisions after staff and industry discussions.