Committee forwards ordinance to extend cannabis permit sunset dates to end of 2024

The Government Audit & Oversight Committee voted Oct. 6 to send to the full Board an ordinance that extends the sunset date for provisions governing medical cannabis dispensaries and temporary cannabis business permits from Dec. 31, 2022, to Dec. 31, 2024.

Supervisor Rafael Mandelmann, sponsor of the item, said the extension is necessary to allow longstanding medical dispensaries and temporary permit holders to continue operating while their permanent permit applications are processed. He warned that without the extension some small businesses would be forced to cease operations, potentially strengthening the illicit market.

Nikesh, director of the San Francisco Office of Cannabis, told the committee the change will (a) allow approximately 33 active medical cannabis dispensaries to continue operating while converting to adult‑use permits; (b) cover about 60 temporary permit holders on the supply side who entered via an amnesty program; and (c) buy time for the Office to process applications after pandemic‑related staffing and operational delays. He said the office recently added three staff focused on permitting and had cleared a backlog of equity applicants, issuing 31 equity permits.

Committee members asked about backlog size and processing strategy. Nikesh and Ray Law described steps including interagency coordination with Planning and Building Inspection and targeted case‑management with community‑based partners. The committee voted 3‑0 to forward the ordinance to the full Board with a positive recommendation.

The ordinance also affirms the Planning Department's environmental determinations under CEQA and findings of consistency with the general plan and key planning policies.