Commission Meetings - October 23, 2017 - Minutes

Meeting Date: 
October 23, 2017 - 2:00pm
Location: 
City Hall Rm 400
1 Carlton B. Goodlett Place
San Francisco, CA 94102

PDF icon 2017.10.23_OSB meeting minutes_Final.pdf

SMALL BUSINESS COMMISSION

MEETING MINUTES

Monday, October 23, 2017

2:00 P.M.

SMALL BUSINESS COMMISSIONERS

Mark Dwight, President
Stephen Adams, Vice President

Kathleen Dooley, William Ortiz-Cartagena
Irene Yee Riley, Paul Tour-Sarkissian, Miriam Zouzounis

 

1.  Call to order and roll call.

The meeting was called to order at 2:04 PM.

Commissioners Adams, Dooley, Dwight, Ortiz-Cartagena, Tour-Sarkissian, and Yee Riley were present.
Commissioner Zouzounis was absent. 
Staff in attendance: Regina Dick-Endrizzi (Executive Director), Menaka Mahajan (Senior Policy Analyst), and Rhea Aguinaldo (Assistant Project Manager).
 

5.  General Public Comment. (Discussion Item)

Item #5 was called out of order. 
Public Comment: No members of the public requested to speak.
 

2.  Small Business Commission Certificate of Honor recognizing the contributions of Emily Gasner, founder and CEO of Working Solutions, from 2004-2017.(Discussion Item)

Commissioner Adams presented Ms. Gasner a certificate of honor on behalf of the Small Business Commission for her 20 years of leadership as Executive Director of Working Solutions.  Ms. Gasner delivered remarks and thanked the Small Business Commission for the recognition. Director Dick-Endrizzi extended her appreciation to Ms. Gasner and Working Solutions great partnership with the City and County of San Francisco.

Public comment:
Barbara Morrison, Monetta White, Victor Wong, and Alison Vercruysse spoke in recognition of Ms. Gasner.


Note: Items 3 and 4 were called together.

3.   Board of Supervisors File No. 171042 - Various Codes - Regulation of Cannabis Businesses. (Discussion and Possible Action Item)

4.   Board of Supervisors File No. 171041 - Planning Code - Cannabis Regulation. (Discussion and Possible Action Item)

Presenters: Nicole Elliot, Director, Office of Cannabis and Aaron Starr, Manager Legislative Affairs, Planning Commission. 
Aaron Starr, reviewed land use regulatory framework for the cannabis industry, explained how the MCD conversion would work, and the Planning Commission’s recommendations. 

Director Elliot explained how the equity program will impact the priority of permitting businesses; clarified the proposed process for transitioning Article 33 MCD’s to Article 16 Cannabis Retailers; the current legislation registration process does not have a pathway for non-conforming businesses, legislation would need to be amended to allow for it; extending deadline of Article 33 permit holders to transition to Article 16, provide clarification of regulation for delivery operators.

Commissioner discussion focused on the retention of the 600ft radius as originally proposed; the need for allowing for places to consumption cannabis, providing for two-step registration process for non-conforming businesses; allowing for on-site consumption for both edibles and smoking/vaping; flexibility regarding ownership and investment; allowing for the employee age (18-20) at medicinal cannabis establishments; the need to allow for cannabis businesses, predominately small manufactures to share space or co-locate in commercial facilities; the importance of including additional felony records beyond only cannabis-related offenses; retain compassionate care; allow for Article 33 pipeline applicants to complete the process; allowing a certain level of discretion for the Office of Cannabis, and the need for real-time adjustments.

Israel Nieves provided an overview of the Department of Public Health’s position on consumption and answered questions.

Public Comment: Members of the public that spoke:
Jim Lazarus
Ryan Bush
Imad Bitar
Luke Bruner
Bridget May
Shona, Axis of Love, SF
Mike Lomuto
Jason Bennett
Terrance Alan
Scott Hauge
Margo Wompler
Chris Schulman
Brandon Brown
Alexandra Butler
Aaron Flynn
Denise Dorey
Nina Parks
Chhavi Sahni
Jennifer Garcia
Betsy Kabaker

Motion: Commissioner Adams motioned to recommend that the Board of Supervisors approve BOS File Nos. 171041 and 171042 with ten recommendations, as well as to support Director Elliott’s potential amendments regarding the use of Article 33 permits as authorization of a state temporary license and allowing a pathway for pipeline applicants. The ten recommendations were:

  1. Amend SECTION 1605(d): Separate the registration process into 2 steps (without requiring disclosure of an exact address in the first step) and provide a pathway for existing operators to move toward compliance without interrupting the flow of the supply chain.

  2. Allow small cannabis businesses to share commercial spaces.

  3. Retain the 600 ft. radius requirement regarding distance from a storefront retailer to an existing school, public or private, as proposed in the original draft of the legislation.

  4. Protect and preserve compassionate care programs in the new permitting process.

  5. Amend SECTION 1620: Address issues with shortage of on-site consumption and smoking/vaporization options.

  6. Amend SECTION 1618(0): Allow a cannabis retailer that holds an M-License to employ persons 18 and over (with a valid physician’s recommendation).

  7. Include additional felony records beyond only cannabis-related offenses when equity criteria are developed in the future.

  8. Ensure that MCD ownership provisions are able to accommodate the transition from not-for-profit to for-profit business structures.

  9. Consider a distinction between topicals and edibles in the regulations.

  10. Amend SECTION 1606(b)(5): Clarify the registration process for pipeline applicants that were left out of the process.

Motion: Commissioner Adams
2nd: Commissioner Dooley
Aye: Commissioners Adams, Dooley, Dwight, Ortiz-Cartagena, Tour-Sarkissian, and Yee Riley
Nay: None
Absent: Commissioner Zouzounis
Motion passed, 6-0, 1 absent.
 

6.   Director’s Report. (Discussion Item)
Director Dick-Endrizzi reported on Department Head retreat convened by Mayor Lee that focused on racial equity in department operations and delivery of service.  A brief update was given on the Legacy Business, Business Assistance Grants, 71 grant applications submitted out of 111 eligible to apply.
Public Comment: No members of the public requested to speak.
 

7.   Commissioners’ Reports. (Discussion Item)
Commissioners: No reports. 
Public Comment: No members of the public requested to speak.
 

8.   New Business. (Discussion Item)
Commissioners: No new business.
Public Comment: No members of the public requested to speak.
 

9.   Adjournment. (Action Item)
Motion: Commissioner Ortiz-Cartagena.
2nd: Commissioner Adams. Aye:
All in favor. Nay: None.
Absent: Commissioner Zouzounis.
Motion passed, 6-0, 1 absent.
The meeting was adjourned at 4:20 PM