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Rules Committee advances ordinance to waive investigation fees for cannabis operators to encourage compliance
Summary
The committee gave a positive recommendation to an ordinance authorizing waiver or refund of nondiscretionary investigatory fees imposed by building inspectors on cannabis supply-chain operators, with Director Nicole Elliott calling the registration process an amnesty pathway and inspectors reporting up to 12 daily site visits to address safety issues.
The Rules Committee advanced an ordinance designed to remove a barrier to legalization in San Francisco's cannabis supply chain by waiving nondiscretionary investigatory fees that building inspectors currently assess for permitless work.
Supervisor Sheehy introduced the item, saying the fee waiver is intended to bring operators out of the unregulated market and into compliance. "We wanted to pull people out of the woodwork... we don't want to penalize them to come forward," Sheehy said.
Nicole Elliott, director of the Office of Cannabis, described the registration program as an amnesty pathway that allows operators to work with the city toward compliance. Elliott noted that multiple departments have been inspecting sites and that these visits have uncovered imminent life-safety issues at some locations. "As you mentioned, every day these dollars don't go reimbursed to these operators is a day that they have less money to meet compliance," Elliott told the committee, emphasizing the tradeoff between short-term fee revenue and long-term public-safety and compliance goals.
Elliott said the ordinance gives the Department of Building Inspection the authority to waive or refund investigatory penalties that the department otherwise must impose; the Building Commission has reviewed and supported the proposal. Committee members voted to send the ordinance to the full Board with a positive recommendation.
The committee did not adopt amendments on the floor; the ordinance will proceed to the Board of Supervisors for further consideration.
