San Francisco Almost Certainly Won’t Be Selling Cannabis on Jan. 1

(Nicolas McComber/iStock)

SAN FRANCISCO—If you booked a New Year’s trip to San Francisco—the birthplace of medical cannabis in America and the first city in the country to experiment with the concept of retail sales—in order to celebrate the dawn of the recreational marijuana era in California, it’s time to update your itinerary.

“It’s embarrassing that we probably won’t be ready on Jan. 1.”
Sen. Scott Wiener (D-San Francisco)

The San Francisco Board of Supervisors failed to come to terms on regulations for the nascent industry at a meeting Tuesday. Amid criticism and controversy—and bowing at least in part to pressure from vocal neighborhood activists opposed to retail sales—the lawmakers elected to delay further discussion of cannabis rules for two weeks, until Nov. 28.

The move means San Francisco will almost certainly be sitting on the runway Jan. 1, when California’s first state-licensed cannabis stores open for business.

“It’s embarrassing that we probably won’t be ready on Jan. 1,” state Sen. Scott Wiener (D-San Francisco) told Leafly.

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After a solid majority of California voters legalized adult-use cannabis last November, the onus has shifted to California cities and counties to pass rules for how and where retail marijuana stores and other cannabis businesses would be allowed to operate. Many of the state’s thousand-plus existing medical marijuana dispensaries are eligible for state permits to sell either medical or recreational marijuana under new regulations—but only if they also receive local approval.

The earliest the city could see a licensed store open for business is Jan. 5.

San Francisco lawmakers were scheduled to decide on a pair of proposals Tuesday, including one with zoning controls so strict it would have made it next to impossible for any new cannabis retail outlets to open in the densely populated city.

Barring extreme parliamentarian gymnastics, the very earliest the city could see a licensed store open for business is Jan. 5. Likelier than that, some observers say, is lawmakers passing the buck to voters, who could be asked to approve commercial cannabis rules at the ballot in June’s primary election.

“We’ve already had three … hearings, and we haven’t been able to move anything forward for these past two weeks,” said Supervisor Jeff Sheehy, sponsor of a proposal that would have allowed San Francisco’s roughly three-dozen existing medical dispensaries to start selling cannabis to all adults 21 and over on Jan. 1 under provisional permits.

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Concerns over racial and socioeconomic equity scotched that proposal—a competing proposal was just as unpalatable to Sheehy and other supporters of the marijuana industry. That plan included stricter-than-ever land-use restrictions, including prohibitions on placing retail marijuana outlets near day-care centers and as a complicated web of neighborhood carve-outs, local caps on dispensaries, and other various other restrictions.

“We’re still stuck on land use—and we didn’t even talk about it” on Tuesday, an incredulous Sheehy told Leafly News on Tuesday evening. “We have not been able to move anything forward for two weeks, and with Thanksgiving coming, I don’t see how we’re going to move anything forward in the interim.”

“We have the exact situation we were trying to avoid: a fire drill.”
Sen. Scott Wiener (D-San Francisco)

Another possibility: Either the cannabis industry or marijuana-hating agitators collect signatures and put competing referendums before voters next June.

At a press conference prior to the Tuesday’s Board of Supervisors vote, Wiener, the state senator and a former San Francisco lawmaker, threatened a ballot initiative if the restrictive proposal passed the board.

Before Wiener decamped to the state Legislature, he put in place a system to ready San Francisco for legalization, creating a task force responsible for recommending rules to San Francisco Mayor Ed Lee and the Board of Supervisors on how to regulate recreational sales. The task force presented its findings in January.

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“And as far as I can tell, a good eight or nine months went by and nothing happened,” Wiener told Leafly News. “Now we have the exact situation we were trying to avoid: a fire drill.”

It’s a surprising and demoralizing setback for the legal cannabis industry in San Francisco, where 74% of voters supported Prop. 64, last year’s legalization ballot measure. Medical marijuana has been openly sold and dispensed in San Francisco since the early 1990s, years before California first-in-the-nation statewide medical-marijuana initiative passed in 1996.

The city isn’t alone in its slow, reluctant approach to legalization. As of Tuesday, none of California’s major cities have put regulations in place for the first day of sales, although San Diego may be the closest. In the Bay Area, the only dispensaries that say they are guaranteed to sell to all adults 21 and over, no medical-marijuana recommendation required, are in Berkeley.

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Of the three other states to legalize adult-use last November—Maine, Massachusetts, and Nevada—only Nevada, where retail dispensaries opened on the Las Vegas Strip in July, has recorded a sale.

Cannabis industry advocates present at Tuesday’s hearings saw the delay as a blessing. No regulations are better than bad regulations, they said—for now, at least.

“At this point, we just need good policy,” said Stephanie Tucker, a consultant active with the San Francisco Cannabis Retail Alliance, a loose organization of medical-cannabis dispensary permit-holders. “If that means we have to go to the ballot, we go to the ballot. This can’t go forward in its current form.”

“We have to be able to grow as an industry,” she added. “We’re not even five minutes old, and all they’re thinking is restriction, restriction, restriction.”

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Others say the fumble by San Francisco—with its massive 4/20 celebration every year, its cannabis-friendly atmosphere, and a long history of leadership on weed—sets bad precedent in California, where dozens of the state’s 400-plus cities have passed severe restrictions or bans on commercial marijuana activity in advance of the legal market’s launch.

“San Francisco should not be setting a bad example and encouraging more communities to do the same,” Wiener said. “The rest of the state is looking at San Francisco, and if San Francisco is shutting down this industry, why would any other city do differently?”