City officials review cannabis‑equity pipeline and delivery, but defer moratorium decision

The committee took up Item 2 on Dec. 9 to examine the status of San Francisco’s cannabis equity program and the retail pipeline.

Acting Director John Pierce (Office of Cannabis) reported that every permit issued so far has been to a verified equity applicant. He provided a snapshot of the current market: 15 permanent equity storefront retail permits, 35 authorized medical cannabis dispensaries (MCDs) and a total of about 50 active storefront retail businesses in the city. Pierce said there are about 94 pending applications with a viable path to completion; most of those are equity applicants or applications with a retail component.

Pierce said the office had only recently been authorized to remove inactive applications and planned to begin outreach to applicants and potential removals in January 2022. He advised caution before adopting a moratorium on new permits, arguing that a moratorium could reduce equity participation and workforce placements unless informed by a broader market study tied to the Board’s suspension of the local cannabis tax.

Supervisors discussed delivery rules, market saturation and tiers of applicants (equity, equity incubators, legacy MCDs, and a small number of applicants previously subject to federal enforcement). Staff clarified that delivery into San Francisco must pick up product from a licensed local permittee, and that unlimited roaming delivery with uncontrolled inventory is not permitted.

Joshua Arce (OEWD) described First Source hiring and workforce engagement with the industry and said employers had been participatory in creating apprenticeship and hiring pathways for equity workers.

Two public callers joined the item. One caller opposed legalization on moral grounds; a second caller identified as an equity applicant described difficulty finding a zoned retail location and urged patience with the equity pipeline, opposing an immediate moratorium.

Supervisor Ahsha Safai asked that the item be continued to the chair for further study of tax levels, delivery rules and the parity timeline. The clerk recorded a roll call (Stephanie aye; Haney aye; Marr aye) and the committee continued Item 2 to the call of the chair.