Committee advances ordinance to ease ownership-transfer limits for some temporary cannabis permit holders

The Public Safety and Neighborhood Services Committee on March 9, 2023 voted to send an ordinance to the Board of Supervisors that would amend the Police Code to allow holders of temporary cannabis business permits who applied at least five years earlier to transfer an aggregate ownership interest of more than 50% to persons who were not listed on the original application, subject to clarified enforcement provisions.

Jackie Thornhill, legislative aide to Supervisor Rafael Mandelman, said the change would be a "relatively narrow, straightforward" fix to help temporary permit holders who have been delayed by a backlog and could allow owners who applied in 2018 or earlier to complete ownership transactions. Thornhill said the ordinance also provides that if an owner transfers more than 50% earlier than allowed, the Office of Cannabis would supervise a six‑month unwind of the transfer.

Nikesh Patel, Director of the Office of Cannabis, described the relevant code provision (verbal citation in the hearing to Article 16, section cited in the record) that currently bars temporary permit holders from selling 50% or more until a permanent Article 16 permit is awarded, and said the office estimates about 55 temporary permit holders are affected by the rule. With no public comment, Vice Chair Angadio moved the item and the committee recorded unanimous 'aye' votes; the clerk reported no opposition. The ordinance will be forwarded to the Board for consideration.