Recreational Marijuana Sparks New Industries In SF, But Side Effects Could Kill Buzz

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San Franciscos new era of legalized recreational cannabis could bring pot-friendly hotels, marijuana-selling businesses along popular neighborhood corridors and delivery services.

In the not-so-distant future, local grocers may even start selling cannabis products, and restaurants could serve up marijuana-infused cuisine.

But just how The City will regulate this new industry remains hazy.

Voters in November approved Proposition 64, the state measure legalizing adult recreational use of cannabis, but the state will not begin issuing related permits in cities until January 2018. Cities would need to approve of the applications much like businesses that wish to sell alcohol.

A year ago, The City began planning for the measures passage with the creation of the San Francisco State Cannabis Legalization Task Force. The task force last month released more than 80 recommendations touching on eight policy matters, from restrictions on advertising to a local excise tax of no more than 1 percent.

The report shows how the new industry may take shape in San Francisco, where 74 percent of the voters approved Prop. 64, higher than the statewide 54 percent.

While local voters overwhelmingly support marijuana, when it comes to embracing locations for drug sales, there is often neighborhood resistance, as has been seen with The Citys 34 permitted medical marijuana dispensaries.

Thats why among the most controversial decisions will be how The City regulates the issuance of permits for retail businesses selling cannabis products.

The task force recommends more relaxed rules for pot-selling retailers than dispensaries have had to contend with. San Francisco should reduce the distance new cannabis retailers can operate in proximity to sensitive uses to one that is less than the state-required 600 feet, reads one recommendation.

Another reads, San Francisco should further define and/or refine definitions of sensitive uses and expand locations in which new cannabis retailers could operate, where appropriate.

The task force also recommends policies to prevent clustering of adult use cannabis retailers.

There is a general recommendation for different approval processes based on the location, such as a conditional use permit or discretionary review. Ultimately, the Board of Supervisors would have to approve the permitting rules.

Legislation allowing medical marijuana dispensaries was a politically charged debate that resulted in only a strict geographic area where they could open, leading to the green zone.

Terrance Alan, task force chair, told the San Francisco Examiner on Tuesday that marijuana sales are expected to double if not triple with adult use and he acknowledged the challenges of permitting retail.

What does that look like? Where should it go? All those conversations on the retail side are really sensitive, Alan said. I cant predict whats going to happen in the thousand neighborhoods that we have. I can imagine that San Francisco will encourage neighborhoods to try and figure out a way to do this.

He added, Its the responsibility of the cannabis community, industry and users to change peoples view.

There are a host of other regulations under discussion as well, such as where cannabis may be cultivated, how its products are manufactured and how delivery services could work. The task force recommends delivery service licenses should require a hub, or centralized location, to process orders.

Regina Dick-Endrizzi, executive director of the Small Business Commission, referred the Examiner to a draft Oct. 28 memo from her office when asked to comment. That memo lists a number of concerns about the impact of Prop. 64, such as commercial rents increasing or manufacturing space being gobbled up.

A shortage of spaces in which cannabis can be cultivated, manufactured, or sold could facilitate price gouging by commercial landlords, the memo reads.

Alan said he didnt expect regulations in the first year to allow for businesses that sell other products to also start selling cannabis, like a local grocer, but instead a focus on two kinds of stores, existing dispensaries or an adult recreational use store on its own for those 21 years or older.

The recommendations call for policies for how someone should be handled if driving under the influence of marijuana and that the San Francisco Police Department should collaborate with Child Protective Services to establish guidelines for determining the safety of a juvenile in the custody of an impaired adult.

Prop. 64 could mean a large surge in the local economy. The task force recommends finding the appropriate balance between discretion and visibility of adult use cannabis culture while also catering to tourism such as with pathways for lodging establishments to become cannabis-friendly, thereby providing a legal consumption space for tourists.

The task force is far from done; it will begin meeting again next month to come up with formal legislation proposals for the Board of Supervisors to adopt.

Mayor Ed Lee also issued a directive on Nov. 9, 2016, instructing various city departments to develop regulations around Prop. 64 by Sept. 1.

The mayor has directed [Planning Department director] John Rahaim, and Barbara Garcia [Health Department director], to lead the process of implementing Prop. 64 smoothly, effectively and responsibly here in San Francisco, mayoral spokesperson Ellen Canale said in an email Tuesday.

Additionally, the mayor has directed that new proposed rules are crafted in coordination with the San Francisco Cannabis State Legalization Task force, Canale said.

San Francisco, Terrance Alan, Ellen Canale, Board of Supervisors, Ed Lee, San Francisco Cannabis state, Cannabis Legalization Task Force, San Francisco state, Small Business Commission, Child Protective Services, Regina Dick Endrizzi, Health Department, Planning Department, Barbara Garcia, John Rahaim

News Moderator: Katelyn Baker
Full Article: Recreational Marijuana Sparks New Industries In SF, But Side Effects Could Kill Buzz
Author: Joshua Sabatini
Contact: San Francisco Examiner
Photo Credit: Dan Chambers
Website: San Francisco Examiner