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Committee advances cannabis portability ordinance amid equity and eviction concerns
Summary
An ordinance to let verified equity medical cannabis dispensary permittees relocate to a new site was advanced to the full Board after public testimony from equity applicants and counsel raising concerns about landlord abuse and possible interference with pending applications; the sponsor’s office and staff will meet stakeholders about potential amendments.
The Land Use and Transportation Committee advanced an ordinance Jan. 27 that would amend the health code to allow the Director of Public Health to permit an existing verified equity medical cannabis dispensary (MCD) permittee to operate under its permit at a new location.
Clerk Erica Major read the ordinance’s scope. Attorney Terry Finch, representing 1944 Ocean Cooperative, urged an amendment to prevent portability where the proposed new site is the subject of a wrongful eviction or forcible detainer judgment, saying his client has been in litigation and fears landlord actions could circumvent relief. Finch said his client has “spent nearly a $100,000 in attorney's fees” pursuing relief.
Equity applicants who said they have been displaced or are in process of applying also testified. Fangyu Su, an MCD holder from 1944 Ocean, said the proposed rule should guard against landlord abuse at a new location. Erin Ish, who identified herself as an equity applicant with a family-owned building at 1940 Ocean, told the committee: “If this legislation is approved, my retail cannabis application will be blocked by whoever decides to move into the vacant MCD at 1944.” Ish asked that the ordinance be amended so a grandfathered equity MCD cannot move into a location that would interfere with an existing equity applicant within 600 feet.
Honey Mahogany, representing Supervisor Haney’s office, said staff intended the portability provision to allow narrowly tailored relocation for displaced equity applicants and that sponsor’s staff had arranged to meet with the Ocean representatives to review evidence and consider amendments. Chair Aaron Peskin urged the parties to meet with the sponsor’s office and indicated willingness to participate to resolve concerns.
After public comment and discussion, the committee voted to forward the ordinance to the full Board with recommendation.
The ordinance will reach the full Board at a later meeting for a final vote; staff and sponsor-office follow-up meetings were requested.
