Amendment to Medical Cannabis Ordinances Threatens the Future of Oakland’s Cannabis Businesses

On May 3, the Oakland City Council approved the first reading of proposed medical cannabis ordinances 5.80 and 5.81, which are a local attempt to begin implementing regulations alongside the MMRSA. The ordinances allow for cannabis businesses in Oakland to be licensed locally, and also helps them become eligible for a state license in 2018. However, a last-minute amendment was recently added, referred to as the “Equity Permit Program,” which would actually limit the number of cannabis businesses allowed to receive a permit. The amendment places numerous restrictions for a cannabis business permit, and states that “At no time shall the number of General Application permits issued under 5.81 in total exceed the number of Equity Permits under 5.81 in total issued by the City Administrator.”

Many Oakland advocates are unhappy with the amendment’s sudden arrival, and believe that if passed, it could have devastating effects on the future of the city’s cannabis industry. According to an 11-page essay written by Senior Regulatory Analyst Alex Zavell, published on May 10, on the topic of the newly added “Equity Permit Program,” he uses current data to discuss how the amendment will negatively affect cannabis businesses in his thorough analysis. Zavell states that Oakland will lose millions of dollars in potential tax revenue and will experience the loss of many local jobs, among other detrimental effects.

Zavell has made a call to action for local advocates who seek to keep the amendment from being approved, stating that “this ordinance is too important to get wrong.” The Oakland City Council is set for a final vote on the ordinances on Tues, May 17 at 6:30pm (Agenda Item 12). Those who wish to attend and support may do so by registering as a speaker here.