Committee sends ordinance to pause new cannabis retail applications to full Board after amendments

The Public Safety and Neighborhood Services Committee voted May 25 to send to the full Board an ordinance that would bar acceptance of new cannabis retail permit applications in San Francisco effective upon the ordinance's enactment, with the committee forwarding the measure with a positive recommendation after adopting sponsor amendments.

Sponsor Supervisor Safai framed the item as a response to market saturation, illegal-market pressure and security risks for cannabis operators, noting the city prioritized equity when implementing Proposition 64 and that some promises of equity have not been realized. He asked the Office of Cannabis (OOC) to present data and recommendations.

Nikesh, Director of the Office of Cannabis, told the committee the OOC has permitted 33 new equity-owned businesses (31 storefront retail, 2 delivery-only) and that the existing or "legacy" industry includes about 47 businesses (32 medical dispensaries and 15 delivery-only). Nikesh said there are approximately 100 pending applications from verified equity applicants (63 storefront, 9 delivery, 28 microbusinesses) and about 71 pending legacy applications, of which roughly 24 appear inactive and unlikely to pursue conversion. OOC cited processing-time improvements for verified equity applicants (from about 18 months previously to roughly 9–12 months recently) and recommended including a sunset provision tied to metrics and giving verified equity applicants additional runway (292 verified applicants on record, five in verification process).

Public comment ran for more than an hour and was mixed: community speakers from Visitation Valley expressed neighborhood opposition to added dispensaries (Marlene Tran, Hazel Lee); equity and legacy operators including Jakari Donaldson, Ben Bridal, Johnny Delaplane, Connor Johnston and Nina Parks urged a moratorium to allow existing operators and equity applicants to survive and proposed refinements (trigger tied to land-use approvals, pause for applicants without DBI/planning approvals, expanded buffer zones, and clearer timelines); other commenters including Chris Calloway and Shauna Gokenire urged carve-outs and fuller stakeholder engagement to protect medical access and compassion programs; some callers urged more data and questioned the saturation claim.

Supervisor Chan joined the meeting and read a drafted amendment (to be finalized with the City Attorney) asking the Controller to submit an analysis no later than June 30, 2027 on financial, operational and neighborhood impacts of the moratorium; Deputy City Attorney Anne Pearson said the language was drafted by the City Attorney's office but had not yet been approved as to form. The committee approved the sponsor's amendments presented at committee and then voted unanimously to forward the ordinance as amended to the Board with a positive recommendation. The Board will consider the ordinance on June 6, 2023; Chan's reporting amendment was read into the record and will be addressed at the full Board.