Committee adopts Office of Cannabis fee schedule and agrees to equity fee waivers for first year

The Budget and Finance Committee forwarded to the full Board a fee schedule for the Office of Cannabis and adopted Supervisor Malia Cohen’s proposed fee waivers for equity applicants.

Nicole Elliott, director of the Office of Cannabis, presented a year‑one fee schedule that includes a $2,000 one‑time nonrefundable application fee, a $3,000 permit fee and a $5,000 annual business permit fee thereafter; amendment fees were set at $110 per hour with a minimum of two hours. The Department of Public Health outlined inspection and plan‑check fees associated with cultivation and manufacturing operations.

Supervisor Cohen proposed amendments to waive the upfront application fee and first‑year operational fees for qualifying equity applicants designed to address barriers created by access to capital and real estate. Supervisors discussed qualification thresholds for equity applicants (ownership and CEO criteria were cited), timing of fee payments and the fiscal impact of waivers.

Michelle Ellis of the Controller’s office said the current year budget assumed roughly $700,000 in costs for the Office of Cannabis, with about $300,000 supported by general fund in its first half if fees are effective mid‑year; any fee waiver would require shifting general fund or savings elsewhere. Office of Cannabis staff noted it is currently unknown how many equity permits will be issued in 2018 and said they would monitor and reassess fees after year one.

The committee adopted the fee schedule as amended and forwarded the item to the board with a positive recommendation, asking the Office of Cannabis and Controller to return with further fiscal analysis on the impacts of waivers.