# Board of Supervisors Minutes: November 14, 2017 - Meeting date: 2017-11-14 - Document type: minutes - Pages in official PDF: 34 - [Canonical HTML transcript](https://sfbos.info/documents/474/2017-11-14-minutes) - [Authoritative City PDF](https://sfgov.legistar.com/View.ashx?M=M&ID=574018&GUID=F3CDEBB0-9FB2-4C74-BB93-B198A0DD8F18) > This text was extracted for search and accessibility. The linked City PDF is the authoritative public record. ## Structured legislative records ### File 171187: Planning Code - Cannabis Regulation - Pages: 19-20 ### File 171042: Various Codes - Regulation of Cannabis Businesses - Pages: 20-21 - Vote 1: continuance - Action: rd of Supervisors to send letters annually to state and federal officials requesting that cannabis be regulated and taxed; and affirming the Planning Department’s determination under the California Environmental Quality Act. Supervisor Cohen moved that this Ordinance be CONTINUED to the Board of Supervisors meeting of November 28, 2017. Before a second was attained, Supervisor Cohen was excused from the remainder of the meeting and the motion was re-made later in the discussion by Supervisor Sheehy. Supervisor Sheehy moved that this Ordinance be AMENDED in Health Code, Section 3322, by adding restrictions and requirements to the ‘Transition Provisions’ for medical cannabis dispensaries that apply for a permit to sell adult use cannabis. Before a second was attained, Supervisor Sheehy withdrew this motion. Supervisor Fewer, seconded by Supervisor Tang, moved that this Ordinance be AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE, by requiring the Director of Cannabis to adopt rules, regulations and guidelines to ensure Cannabis Retailers and maintain and sell an inventory that is sufficient in volume and variety for medicinal customers. The motion carried by the following vote: - Ayes: Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang, Yee - Vote 2: amendment - Action: City and County of San Francisco Page 849 Printed at 12:51 pm on 1/3/18 Board of Supervisors Meeting Minutes 11/14/2017 Supervisor Tang, seconded by Supervisor Peskin, moved that this Ordinance be AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE, in Health Code, Section 3322, by adding restrictions and requirements to the ‘Transition Provisions’ for medical cannabis dispensaries. The motion carried by the following vote: - Ayes: Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang, Yee - Vote 3: amendment - Action: Supervisor Safai, seconded by Supervisor Yee, moved that this Ordinance be AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE, in Police Code, Section 1618, by requiring cannabis businesses that previously held a medical cannabis dispensary permit to ensure that at least 35% of all business work hours are performed by local residents. The motion carried by the following vote: - Ayes: Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang, Yee - Vote 4: amendment - Action: Supervisor Safai, seconded by Supervisor Farrell, moved that this Ordinance be AMENDED by adding a new ‘Health Code, Section 3322(d)(4)’ that requires a medical cannabis dispensary that wishes to sell adult use cannabis to submit a ‘Good Neighbor Policy’ and 'Security Policy.' The motion FAILED by the following vote: - Ayes: Breed, Farrell, Safai, Sheehy, Tang - Noes: Fewer, Kim, Peskin, Ronen, Yee - Excused: Cohen - Vote 5: first-reading - Action: Supervisor Sheehy, seconded by Supervisor Ronen, moved that this Ordinance be CONTINUED AS AMENDED ON FIRST READING to the Board of Supervisors meeting of November 28, 2017. The motion carried by the following vote: - Ayes: Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang, Yee ## Extracted text ### [Page 20](https://sfbos.info/documents/474/2017-11-14-minutes#page-20) Board of Supervisors Meeting Minutes 11/14/2017 Recommendation of the Rules Committee 171042 [Various Codes - Regulation of Cannabis Businesses] Sponsors: Mayor; Sheehy Ordinance amending the Administrative, Business and Tax Regulations, Health, and Police Codes to comprehensively regulate commercial activities relating to the cultivation, manufacture, distribution, testing, sale, and delivery of medicinal and adult use cannabis by, among other things: 1) requiring businesses that engage in commercial cannabis activities to obtain a permit from the Office of Cannabis; 2) requiring the Director of the Office of Cannabis to implement an Equity Program to promote equitable ownership and employment opportunities in the cannabis industry by providing priority permitting for Equity Applicants and Equity Incubators, as defined; 3) defining eligibility for temporary and permanent cannabis business permits; 4) establishing priorities for the review of cannabis business permit applications; 5) establishing operating standards for cannabis businesses; 6) establishing criteria for granting, denying, suspending, and revoking cannabis business permits; 7) requiring all cannabis businesses to ensure that 50% of work hours are performed by San Francisco residents, and cannabis businesses with ten or more employees to adopt labor peace agreements; 8) authorizing the imposition of fines and penalties for violation of local and state laws governing cannabis businesses, and establishing procedures by which cannabis businesses may appeal a fine or permit penalty; 9) allowing pre-existing non-conforming cannabis operators to register with the Office of Cannabis and apply for cannabis business permits in 2018; 10) prohibiting the consumption of cannabis and cannabis products on the premises of all cannabis businesses, except Storefront Cannabis Retailers and Cannabis Microbusinesses that obtain consumption permits from the Department of Public Health; 11) prohibiting until January 1, 2019, tours of cannabis cultivators, manufacturers, and cannabis microbusinesses, and authorizing the Director of Cannabis to extend the prohibition on tours, or establish guidelines for the operation of tours; 12) prohibiting the acceptance of new applications for medical cannabis dispensary permits, starting January 1, 2018; 13) allowing medical cannabis dispensaries to sell adult use cannabis, starting January 1, 2018, and prohibiting medical cannabis dispensaries from cultivating cannabis under the authority of a medical cannabis dispensary permit, starting April 1, 2018; 14) establishing a sunset date of December 31, 2018, for Article 33 of the Health Code (“Medical Cannabis Act”); 15) requiring the Department of Public Health to implement an ongoing public health education campaign about the safe consumption and health benefits of cannabis; 16) requiring the Controller to submit a report to the Board of Supervisors within one year of the effective date of Article 16 recommending whether the issuance of cannabis business permits should be subject to any limits; 17) establishing an Equity Operator Fund to receive any monies appropriated for the purpose of assisting Equity Operators; 18) eliminating the duty of the Clerk of the Board of Supervisors to send letters annually to state and federal officials requesting that cannabis be regulated and taxed; and affirming the Planning Department’s determination under the California Environmental Quality Act. Supervisor Cohen moved that this Ordinance be CONTINUED to the Board of Supervisors meeting of November 28, 2017. Before a second was attained, Supervisor Cohen was excused from the remainder of the meeting and the motion was re-made later in the discussion by Supervisor Sheehy. Supervisor Sheehy moved that this Ordinance be AMENDED in Health Code, Section 3322, by adding restrictions and requirements to the ‘Transition Provisions’ for medical cannabis dispensaries that apply for a permit to sell adult use cannabis. Before a second was attained, Supervisor Sheehy withdrew this motion. Supervisor Fewer, seconded by Supervisor Tang, moved that this Ordinance be AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE, by requiring the Director of Cannabis to adopt rules, regulations and guidelines to ensure Cannabis Retailers and maintain and sell an inventory that is sufficient in volume and variety for medicinal customers. The motion carried by the following vote: Ayes: 11 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang, Yee City and County of San Francisco Page 849 Printed at 12:51 pm on 1/3/18 ### [Page 21](https://sfbos.info/documents/474/2017-11-14-minutes#page-21) Board of Supervisors Meeting Minutes 11/14/2017 Supervisor Tang, seconded by Supervisor Peskin, moved that this Ordinance be AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE, in Health Code, Section 3322, by adding restrictions and requirements to the ‘Transition Provisions’ for medical cannabis dispensaries. The motion carried by the following vote: Ayes: 11 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang, Yee Supervisor Safai, seconded by Supervisor Yee, moved that this Ordinance be AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE, in Police Code, Section 1618, by requiring cannabis businesses that previously held a medical cannabis dispensary permit to ensure that at least 35% of all business work hours are performed by local residents. The motion carried by the following vote: Ayes: 11 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang, Yee Supervisor Safai, seconded by Supervisor Farrell, moved that this Ordinance be AMENDED by adding a new ‘Health Code, Section 3322(d)(4)’ that requires a medical cannabis dispensary that wishes to sell adult use cannabis to submit a ‘Good Neighbor Policy’ and 'Security Policy.' The motion FAILED by the following vote: Ayes: 5 - Breed, Farrell, Safai, Sheehy, Tang Noes: 5 - Fewer, Kim, Peskin, Ronen, Yee Excused: 1 - Cohen Supervisor Sheehy, seconded by Supervisor Ronen, moved that this Ordinance be CONTINUED AS AMENDED ON FIRST READING to the Board of Supervisors meeting of November 28, 2017. The motion carried by the following vote: Ayes: 11 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang, Yee ROLL CALL FOR INTRODUCTIONS See Legislation Introduced below. Supervisor Farrell was noted absent at 5:52 p.m. and for the remainder of the meeting. City and County of San Francisco Page 850 Printed at 12:51 pm on 1/3/18