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San Francisco health officials outline phased cannabis ordinance, equity program and local permitting ahead of 2018 state licenses
Summary
City health officials and planning staff briefed the Health Commission on a proposed local cannabis ordinance that would create an Office of Cannabis, a phased registration-to-permit process tied to an equity program, 600-foot buffers around schools, and delivery and consumption authorizations; commissioners and public commenters urged strong public-health safeguards and clearer consumption pathways.
Nicole Elliott, director of the newly created Office of Cannabis, told the Health Commission the proposed ordinance aims to implement state rules for medical and adult-use commercial cannabis while prioritizing public health, youth protections and equity. She said the city's approach will use a phased registration and permitting process so existing operators can move toward temporary and then permanent permits once an equity program is in place.
The ordinance, introduced by the mayor and co-sponsored by a supervisor, would create local authorization requirements in addition to state licensing and require a local equity program to be established before permanent adult-use and medical permits are issued. "The proposed ordinance requires the creation of this [equity] program, and requests that it be designed to foster equitable access to participation in the industry," Elliott said during the briefing.
Planning Department manager Aaron Starr outlined land-use controls in the proposal: three categories for cannabis activity (non-retail PDR uses, a new cannabis retail category, and medical cannabis dispensaries), a reduction of buffers around schools from 1,000 feet to the state standard of 600 feet, and an anti-clustering rule that would prevent cannabis retail establishments from locating within 300 feet of each other. Starr said indoor cultivation would be limited to a canopy of 22,000 square feet and that conversion applications by existing medical cannabis dispensaries must be filed by June 30, 2018 and approved by Dec. 31, 2019.
Mavis, assistant director of policy and planning at DPH and coordinator of the cannabis task force, described the task force's recommendations and DPH's regulatory priorities: consumer protection (including controls on pesticides and hazardous materials for cultivation), point-of-sale accuracy, data collection to monitor health impacts, and a citywide public-health campaign focused on driving under the influence and youth exposure. She emphasized that DPH intends to require sub-permits for any retail locations seeking to operate consumption lounges so the department can enforce food-safety and sanitation standards for edibles and other products.
Commissioners pressed staff on several fronts: whether the equity program has been established (it has not; Elliott said it will be developed after the equity report), how the city is tracking federal enforcement risk (staff said they are watching U.S. Department of Justice activity closely), and whether planning conditional-use findings can include concerns about overconcentration alongside alcohol and tobacco density. Commissioner Burnell asked about mental-health clinics as a sensitive use; Aaron Starr said conditional-use findings can consider nearby services, although he cautioned the planning commission against making medical determinations.
Public commenters urged broader consumption pathways to limit black-market activity. Margo, a cannabis business operator, said she supports the ordinance but warned that restricting public consumption to the current eight smoking-enabled medical dispensaries could push use into uncontrolled settings. "If people don't have anywhere to smoke, they're gonna smoke it wherever they want," she said. Terrence Allen, chairman of the cannabis state legalization task force, urged the commission to plan for a range of consumption formats and more than the existing smoking lounges to accommodate tourists and reduce illicit sales.
Elliott and DPH officials stressed the process is fluid: the state is expected to release emergency regulations in November and begin issuing temporary licenses Jan. 1, 2018. The Office of Cannabis and DPH will continue coordinating as the city refines permitting, equity criteria and operating standards. The commission asked staff to provide quarterly updates focused on permitting details and the equity program timeline as the legislation advances to the Planning Commission and the Board of Supervisors.
Next steps: staff said several reports and a proposed fee schedule will be delivered to the mayor and Board of Supervisors on Nov. 1; the Planning Commission is slated to consider the draft ordinance on Oct. 19, and the state's emergency regulations are expected in November, which may require local adjustments.
