Adult Use in Full Swing

Recreational cannabis sales could begin in San Francisco as early as January 6. Of all places, the city that’s commonly known for its progressive stance on cannabis struggled to enact recreational cannabis rules for the first day of recreational sales. A few disagreements and hiccups, including a disputed equity clause, caused the city to delay recreational cannabis sales five days later than the city’s original goal of Jan. 1.

In November 2016, nearly three out of four voters in San Francisco supported Proposition 64. Each individual city or municipality in California is in various stages of approval of recreational sales, if at all. San Francisco officials did their best to implement a system in time for the first days of recreational licenses being in effect.

“This legislation strikes the right balance for San Francisco residents and businesses. It brings the cannabis industry out of the shadows, addresses safety and public health concerns and takes a substantive approach to atoning for the harmful effects of the ‘War on Drugs’ by establishing an equity program.”

 

As one of his final acts before his unexpected death on Dec. 12, San Francisco Mayor Edwin M. Lee approved legislation to adopt recreational cannabis rules, amending San Francisco’s Planning Code to include recreational cannabis businesses. “Today, I signed legislation that establishes comprehensive regulations for commercial cannabis activity in San Francisco and allows for the sale of adult-use cannabis in our city,” Lee said in a prepared statement on Dec. 6. “This legislation strikes the right balance for San Francisco residents and businesses. It brings the cannabis industry out of the shadows, addresses safety and public health concerns and takes a substantive approach to atoning for the harmful effects of the ‘War on Drugs’ by establishing an equity program.” A day earlier, San Francisco’s Board of Supervisors gave the final go-ahead.

On Dec. 12, six days after establishing recreational rules, Lee passed away with family and friends by his side. He leaves behind a long legacy, as the first Asian American mayor of San Francisco.

Per a grandfather clause buried in legislation, the city’s 45 existing medical cannabis dispensaries and delivery services will have the option of obtaining state permits to sell recreational cannabis. Businesses must acquire a local permit as well as a state permit to operate. The laws will take 30 days to take effect.

Supervisor Jeff Sheehy was not happy about missing the January 1 deadline, citing that missing the intended start date “makes us look bad.” Sheehy also said that despite differences, the city has been able to reach a compromise.

Temporary state-level licenses from the Bureau of Cannabis Control will be available on Jan. 1, which last 120 days and can be extended for up to 90 days. Once those expire, permanent licenses can be obtained.

According to the city’s first preliminary cannabis tax report, the city sells around 10 million grams of cannabis annually. When recreational sales commence, those numbers could triple—up to 30 million grams. If California follows in the footsteps of Washington State, the price per gram could drop substantially. Currently, the average cost of a gram in San Francisco is high at $14 per gram—but that could drop to as little as $7 per gram over time with the rollout of recreational sales.

It’s high time that recreational cannabis sales get moving—because no one deserves it more than the residents of San Francisco—who have been ahead of the curve for decades when it comes to cannabis.