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Committee backs measure extending MCD temporary authorizations and adding apprenticeship and labor requirements

Public Safety and Neighborhood Services Committee, San Francisco County · November 19, 2021
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Summary

The committee voted 3–0 to send an ordinance to the full Board that extends temporary medical cannabis dispensary authorizations while applications process and would require certified apprenticeship hiring targets and labor‑peace/collective bargaining thresholds for certain dispensaries.

The Public Safety and Neighborhood Services Committee voted unanimously on Nov. 19 to send an ordinance to the full Board that would amend the police and health codes to tighten workforce and certification standards for medical cannabis dispensaries (MCDs) operating under temporary authorizations and extend the renewal timeline for those authorizations.

Supervisor Safaie, the ordinance sponsor, told the committee the proposal “strengthens our equity and apprenticeship programs” by requiring participating temporary MCDs to ensure that “35% of new hires are from certified apprenticeship programs to the extent feasible,” and by requiring dispensaries with more than 10 employees to enter into either a labor‑peace agreement or a collective‑bargaining agreement with a bona fide labor organization. Safaie said the change brings parity between the 35 MCDs currently operating under temporary permits and businesses regulated under Article 16.

Acting Director John Pierce of the Office of Cannabis said the ordinance also modifies the renewal timeline (extending it beyond the current 120‑day rolling renewal) to give the office more time to address complaints and process reauthorizations. Pierce told the committee that reauthorization is “holistic” and that the office would consider signs of bad‑faith complaint filings as part of the renewal review process.

Supervisor Aaron Peskin pressed staff on a provision referencing the absence of public health or safety complaints in the prior 150 days, asking whether a late‑filed spurious complaint could create a due‑process problem for a dispensary. Pierce replied that the change lengthens the review window and does not remove the office’s discretion; he said the department had not previously seen a last‑minute bad‑faith filing and does not anticipate such a pattern.

Ryan McGilly, an organizer with UFCW Local 5, called in support and said the ordinance will give cannabis workers more protection and create apprenticeship opportunities. Pierce said the Office of Cannabis processes permanent Article 16 applications in the order received and that, with additional staff expected from a proposed state grant, the office estimates it could complete the transition of the 35 MCDs in about two years.

The committee voted 3–0 to send the ordinance to the full Board with a positive recommendation.