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Board establishes Office of Cannabis, adds equity language and extends advisory task force
Summary
The Board of Supervisors voted unanimously on first reading to create an Office of Cannabis under the City Administrator, require a fee proposal by November, and add language directing the office to consider communities historically harmed by federal drug enforcement in its policy work.
The Board of Supervisors voted unanimously on first reading on July 18 to create an Office of Cannabis under the City Administrator and to extend the city's cannabis legalization task force through Dec. 31, 2018.
The measure, sponsored by Supervisor Matt Haney (introduced in the transcript as Supervisor Sheehy) and co-sponsored by Supervisor Aaron Peskin (recorded as Supervisor Cohen and others), directs the new office to prepare a fee schedule by Nov. 1 and to coordinate implementation of state and local rules after the passage of Proposition 64. The board adopted an amendment — added during debate — that says the office “shall ensure that the perspectives of communities that historically have been disproportionately impacted by federal drug enforcement policies are included and considered in all policy decisions.”
Why it matters: Proposition 64 legalized adult-use cannabis statewide effective Jan. 1, 2018. Supervisors who supported the ordinance argued the city needs a local office to coordinate licensing, inspections, permit renewals, complaint handling and state coordination, and to provide a one-stop point of contact for businesses and community members. Opponents urged additional time to craft equity and enforcement details and warned the city could set fees so high they would limit access for small and minority-owned businesses.
What the board said: Sponsor Supervisor Sheehy told colleagues the office would be a “one-stop shop” to implement the will of voters and to develop local policy before state rules became the default. Supervisor Jeff Sheehy said, “This ordinance only creates a one-stop shop for permitting. Most of the policy work on cannabis is yet to come.” (Transcript: Supervisor Sheehy, item 38.) Multiple supervisors pressed for an equity framework and clearer fee modeling; Deputy City Attorney John Givner and Budget Analyst Deborah Newman explained that financial details and fee proposals would be finalized and returned to the board this fall.
Details of the vote and next steps: The ordinance passed unanimously on first reading, 11-0, as amended. The budget adopted in the same meeting included start-up positions and funding that the board discussed during debate; supervisors noted those hires will proceed through the separate budget process. The ordinance requires the new office to submit a fee proposal (via the City Administrator and controller) to the board by Nov. 1; the board will adopt fees separately.
The board also extended the cannabis legalization task force through Dec. 31, 2018, to provide community input while the office and regulations are developed. Officials said the office will coordinate with multiple departments — notably the Department of Public Health, Planning, the Treasurer, and law enforcement — on licensing, inspections, and enforcement matters.
What remains unresolved: Supervisors asked for specific equity tools (set-asides, reduced fees, incubator supports) to be developed and returned as trailing legislation. The board directed that staff and the task force continue work over the summer and fall so the board can consider more detailed policy and fee proposals before January 1, 2018.
Ending: The board approved the creation of the Office of Cannabis as a first step toward local regulation of adult-use cannabis and charged the office to return with recommended fees and more detailed equity proposals this fall.
