Board approves limited portability for evicted medical cannabis dispensaries after narrow vote

The San Francisco Board of Supervisors voted 9-2 on Feb. 25 to adopt an ordinance amending the Health Code to let some existing medical cannabis dispensary (MCD) permittees change the location associated with their permit after displacement, subject to detailed conditions and a restriction added as an amendment.

The ordinance, introduced by Supervisor Haney and discussed at length in Land Use committee hearings, allows the director of the Department of Public Health to authorize a displaced MCD permittee to relocate their permitted use to a site already zoned and authorized for medical cannabis dispensary use if the director finds the statutory requirements are met. The board approved an amendment inserted during the meeting that bars portability to any site where a court had previously found the landlord wrongfully evicted another permittee.

Supporters framed the measure as a narrow remedy for equity applicants who have been forced out of storefronts and lack realistic options to keep operating. “The main purpose of this legislation is something to help small businesses and equity applicants who have been evicted,” Supervisor Haney said, arguing the change would be a stop‑gap for vulnerable businesses while the city transitions equity applicants to Article 16 permits.

Opponents warned the measure could create incentives for commercial landlords to evict tenants in hopes of re‑leasing space to higher‑rent uses and said it could set an undesirable precedent. “The players who are benefiting most from a bad situation are the landlords who are knowingly taking advantage of business owners and consequently, leaving storefronts vacant,” said Supervisor Walton, who opposed the ordinance. Walton said the two locations most immediately implicated in prior disputes—1940 Ocean Avenue and 1545 Ocean Avenue—are in his district and exemplify the risk of rewarding speculative behavior by property owners.

The ordinance’s conditions require a written request to the Public Health director, verification that the permittee is an equity applicant by the Office of Cannabis, evidence of eviction or termination of lease at the prior location, and inspection and approval of the new site by relevant departments including the Department of Public Health, the planning department, DBI, Fire, the Mayor’s Office on Disability, the Police Code reviewers, and the Office of Cannabis. The director retains sole authority to determine whether a permittee has satisfied the requirements.

Roll call on the amended ordinance recorded Supervisors Feuer, Haney, Mandelman, Marr, Peskin, Preston, Ronan, Safai and Walton as voting aye; Supervisors Yi and Stephanie voted no. The ordinance passed 9–2 as amended.

The measure affirms CEQA determinations, limits portability to a narrowly defined set of displaced MCD permittees (those not already under Article 16), and adds the amendment to exclude any new location where a judicial finding of wrongful eviction previously exists.

The board debate made clear members want to preserve options for equity applicants while avoiding incentives for landlord speculation; several supervisors urged continued work with the Office of Cannabis and the Department of Public Health to tighten implementation and oversight. The ordinance will take effect according to the usual administrative schedule unless further legal steps are filed.

Votes at a glance: On item 3 (Health Code amendment to allow limited relocation for MCD permittees), adopted as amended, 9 ayes, 2 noes (Yi, Stephanie).

Provenance: Meeting transcript, item 3 introduction and debate beginning with the clerk’s description of item 3 and Supervisor Haney’s remarks (transcript block starting at 262.56) through the roll call and adoption announcement (block starting at 861.525).