Building Inspection Commission backs ordinance to waive investigation fees for registered cannabis operators

The San Francisco Building Inspection Commission on Feb. 21 voted unanimously to support an ordinance (Board of Supervisors file no. 180,054) that would waive or reimburse non-discretionary investigation fees imposed under the building code for operators registered with the city's Office of Cannabis.

Nicole Elliott, director of the Office of Cannabis, told commissioners the city began a registration process in September 2017 aimed at bringing roughly 250 cultivation, manufacturing, distribution, testing and delivery activities into a regulated marketplace. Elliott said the registration was designed as a quasi-amnesty to encourage operators to come out of the shadows and that the proposed fee waiver would help them concentrate limited resources on meeting safety and code requirements rather than on punitive investigation fees.

Deputy Inspector Ed Sweeney, Inspection Services, said DBI expects to collect permit fees when operators submit for permits but that the ordinance would remove the penalties and notices-of-violation fees that otherwise could be assessed during the legalization inspections. Sweeney cited recent fire incidents at grows as part of the justification for moving operators into the regulated system.

Commissioners pressed staff for fiscal projections. Sweeney said preliminary counts from inspections showed modest sums: penalties already paid on inspected sites totaled about $6,200, with unpaid penalties around $10,044 in the sample cited, and that DBI will collect permit fees when applications are filed. Vice Chair Deborah Walker and other members said the financial impact appears nominal relative to DBI's overall budget and that the public safety and compliance benefits outweighed the foregone penalty revenue.

The ordinance includes a sunset provision allowing the city to reinstate fees after Dec. 21 (as discussed in the hearing). Commissioners emphasized outreach and a public-information campaign to ensure operators know the window to legalize and take advantage of the waiver. The commission recorded a formal motion to support the legislation, and a roll-call vote carried unanimously.

Next steps: the commission's support will be forwarded as the ordinance proceeds to the Board of Supervisors for formal action and the mayor for signature; staff said waivers would be applied retroactively once the board and mayor act.

Votes at a glance: motion to support ordinance (Board file 180,054) — approved unanimously by roll-call vote.