1st, 2019. So a grandfathered mcd, as defined in section 190 of the planning code, that receives a permit to operate as an mcd before january 1st, 2019, so in the 2018 window shall be deemed a temporary cannabis sales use, and upon expiration of the temporary cannabis sales use authorization, the land use authorization for the parcel will revert to the original authorization to operate as an mcd unless the establishment has received a permit authorization to operate az a Retail Cannabis use. This would also need to result in an amendment to 205. 2 in the planning code. It would just add a subsection to that sub of the code stating that a temporary permit for cannabis use would last for one year and would expire on january 1st, 2019. The amendment would also provide for a process for these grandfathered mcds to obtain a Permanent Land use authorization to become Cannabis Retail uses, and that would be to section 190 of the planning code, subsection c, which would state in order for a grandfathered mcd to convert to a Cannabis Retail use, a completed application for the change of use must be submitted to the department of building inspection no later than march 31st, 2018 and first approval by the Planning Department or Planning Commission must be received on or before december 31st, 2019. An application will be deemed to have received its first approval from planning when that body issues its decision regardless of any appeal or lawsuit is filed subsequently challenging the application, so this would allow the grandfathered mcd while operating as a temporary cannabis sales use to move forward in the process to convert to obtain a permanent lant use authorization to parallel the permanent operational permit that its seeking at the same time. President breed supervisor peskin, this sounds very similar to what you introduced at the last meeting. Supervisor peskin insofar as we have included it in item number 9, which we have adopted, this conforms item 8 to item 9. Supervisor safai madam chair . President breed supervisor peskin, are you done . Supervisor safai . Supervisor safai just to oversimplify, we already updated the police code. This is to do the land use. Supervisor peskin correct. Supervisor safai to allow for everything that weve talked about. President breed anyone else on the amendment . Supervisor cohen yes, thank you. President breed supervisor cohen. Supervisor cohen thank you very much. Id like to direct my question to the City Attorneys office. Im just wondering how does this complement or not complement the work that weve established the last six hours . So none of the other amendments that weve discussed today created a land use authorization for the temporary uses, which have been amended into the operational ordinance, so in order for a for a medical cannabis dispensary to operate as a cannabis adult use sales establishment next year, they will need both an operational permit under the other item number 8 ordinance as well as a land use approval, so this amendment is intended to accompany the amendments that have already been made in the other ordinance so that the mcds can, in fact operate as temporary uses on january 1st. Supervisor cohen thank you, madam president , i know you dont particularly care for amendments on the fly. It sounds like this is an interesting amendment that i havent had a chance to take a look at. I dont know if anyone else is knowledgeable about this, but it is going to be amending in dealing with land use authorizations. In my experience as a former chair of the Land Use Committee and serving for the last six years on the Land Use Committee. This is something we need to take seriously and pore over and not rush into. I would like to encourage supervisor peskin, if he would like to speak about it, he can speak about it, but so far, ive only heard from the City Attorney. I dont know if theres anything else you would like to add. Supervisor peskin insofar as as we provided for it in one law and we have not provided for it in the land use law, we have to have it in the land use law or weve only got the cake half baked. Weve just conforming the two laws to one another as supervisor safai said, insofar as its in the police code. We dont have any enabling legislation in the Land Use PlanningCode Provisions in order to do what we intended to do by virtue of putting it into the police code stuff that we already have unanimously agreed on. Supervisor cohen so madam president , through the president to supervisor peskin, just at first blush through the City Attorney, it sounds complementary and it doesnt sound like any dubeobudious tr that youre setting upon up at the 11th hour. Supervisor peskin correct. At the last meeting, i realized we had put it in the police code, and i went to the City Attorney, and i said well, dont we have to have it in the land use section, and they said yes, if that was your intention, and i said yes, so we asked miss wang to draft that concern and put it in an amendment. Supervisor cohen i think the only concern is it allows for an immediate opportunity for a process to convert and to be used temporarily until they go through a process, so thats my only concern, and i dont understand why its necessary to do that. This is exactly what i think you and i talked about, mr. Givner, that this was similar to the legislation that was proposed last week by you and supervisor sheehy, the amendment, and the one issue that i think many members of the board had was allowing for an automatic an automatic transfer of adult use, like come january 1, without there being a clear process, but there is a process, i understand. But the process is after the fact. Supervisor peskin so madam president , i think the context of the amendment in the last meeting was very, very different, which was we were at an impasse, and there was pressure to have some amount of retail adult use starting january 1, and the proposal at that time was to only have that. The objection to that was there would be no we had not yet arrived at the equity applicant solution, which today, we have arrived at. Nonetheless, unanimously, and this was not my amendment from last week. We all put it in the police code at the last not last week, but two weeks ago, so presumably, and that was did not come from this supervisor. We wanted to enable it in the land use code and hence, the amendment. But the context of that conversation was very different. It just meant that as of january 1, there would only be these 30 facilities. That conversation has changed today. President breed but based on this particular amendment, as of january 1, it would still be only these particular facilities that could add adult use while theyre given a temporary theyre given a temporary a temporary permit to operate and to do adult use beginning january 1 or whenever we pass this law and it goes into effect, and then, they would have to go through the process to do this permanently to do adult use permanently. Supervisor peskin and all of those, again, are subject to the same kind of appeal procedures that we previously discussed relative to section 312, whether its conditional use or discretionary review, they have 90 days to apply, and if they dont get it in a kbrae year, they revert back to mcds. President breed and i think it reverts back to i didnt want any amendment without a public process, so i know we need to do this so it relates to mcds and as it concerns land use, but the ability to do this after this legislation has passed is what im most concerned about. I would like a moment to review this particular legislation and make sure that i completely understand where youre coming from. I believe i do, but incident is we just received it, and we know in some regard that we have to do it because i know, i discussed it with our attorney, jon givner yesterday, and supervisor kim and i had a discussion about this in particular, and wanting to make sure that this is included, and so we know that its necessary. I think how its done is of question to me at this time. Supervisor kim. Supervisor kim okay. So i did ask a number of questions of mr. Givner yesterday, and i apologize. I think theres just too much going on, and i so think the biggest or the big rocks i want to understand is what is the process with this amendment with supervisor peskins amendment to get a temporary permit . What is the process to get a temporary permit under this scheme with this amendment . This isnt really a temporary permit for adult use cannabis sales. What section 3322 does which is called the transition provision as a new section to article 33 of the health code which regulates medical cannabis dispensaries, and if enacted as its now written, it would immediately authorize permanent mcds to sell adult use cannabis as part of this existing article 33 permit as soon as this ordinance goes into effect, provided they do a number of things. Provided they apply for and receive a temporary state cannabis license, provided they receive a determination from the Planning Department that the sale of adult use cannabis on the premises is in compliance with the planning code, and thats where this amendment comes into play and that is how it complements this. Section 3322 would automatically allow these mcds to sell adult use without any any further process provided they meet these criteria, one of which is they have to show they comply with the planning code. Supervisor kim okay. What did you mean by the statement, theres no such thing as a temporary permit . Well, people have talked about this as a temporary permit for mcds. Theres actually no new permit being given. All of the mcds already have an article 33 permit, and this amendment would basically expand the scope of that permit. Supervisor kim but temporarily. I meant to say its not supervisor kim youre saying its not a permit. Yeah, but the authorization to sell the adult use cannabis would itself be temporary because its authorized for 180 days. Supervisor kim should this board vote on this, all 30 operators would be able to expand to adult use on the day this is enacted as long as they have a temporary state license. Well, there are additional criteria beyond that. They will be able to expand their business to sell adult use cannabis if they apply for and receive a state cannabis license, if they receive a determination from the planning did he want that they are supervisor kim which this amendment takes care of. Right, if they comply with all of the requirements and proce prohibitions that are imposed on Cannabis Retail in article 16, if they apply for a permit within 30 days of being made available, and then there are additional criteria that are made available or required as part of supervisor cohens equity amendment. If theyre mcds that have more than ten employees, theyd have to demonstrate to the satisfaction of the director that within 120 days of the effective day of the ordinance as least 30 of all business work hours are performed by workers who meet at least three of the criteria, and they would have to submit to the office of cannabis an actually equity plan. So its not an automatic expansion for every single mcd, its only for those mcds who meet all six criteria. Supervisor kim now, the date might have changed, but if i remember correctly, we said if wed passed something today, the first conceivable Operation Date in San Francisco is january 1st. I just want to make sure i understand this. If im a current mcd operator, and i guess my current state license, and i chief 30 local hire, and i submit my equity plan, i can assuming we pass the plan as stated by supervisor peskin, and there is no i thought there was in the amendment to article 33, there are no additional notification requirements, and ill defer to deputy City Attorney wang, but my understanding is theres no additional notifications jane skbran what if a neighborhood wanted to appeal just the temporary expansion . Is there an ability for them to do that . There would be no peal for the expansion. And they would be able to temporarily expand for a year . No well, the expansion as authorized would be for 120 days, which could be renewed by the director if the mcd is found to have been making good faith efforts to comply with their equity plans. Supervisor kim okay. Why was a year mentioned for the temporary engs pangs if its only 120 days. I dont know where a year was mentioned. Supervisor kim something about how it reverts back after a year to mcd only. Supervisor peskin because it says on 205. 2 that would be authorized no early it says to be authorized no earlier than january 1, and expire no later than january 1, 19, thats where i get the year from. Supervisor kim so youre eligible within the year to get this temporary expansion. I think that land use expansion would last for one year. Supervisor kim i get it. But the permit use expansion would be for 120 days and would be renewable. Supervisor kim okay, and in the meantime so theyll have the temporary permit for 120 days, assuming they meet all the requirements presented by supervisor peskin and all of the amendments the ones that are already put into place, and then, they have to apply for the permanent in order to extend it beyond the 120 days, although theres one extension beyond that. Right. Supervisor kim now, can you also clarify why delivery is treated differently . Theres 30 current operators, and there are 16 Delivery Services. What happens to those 16 Delivery Services on january 5th . Can they also expand to adult use . So for delivery who have article 33 permit, they would be subjected to this exact same process. Supervisor kim okay. So its not limited to 30, its all 46, so all 46 will be able to expand to adult use on january 5th, assuming they do all of these things. Yes. Supervisor kim okay. Great, and after that, they would apply for a permit, and once a permanent universe is set, then after that point, the equity requirements kick in, so assuming all 46 are able to get a permanent adult use license, then, i assume the next 46 that get a permit to do adult use will be equity applicants. This is a hypothetical. Correct. Supervisor kim no, the next 46. Supervisor yee no, i think its 23. Supervisor kim excuse me . No, youre correct, supervisor kim. Supervisor kim okay, i just wanted to make sure i understood what it is we were voting on today. Thank you. Supervisor yee and i guess through the chair to supervisor peskin, in your amendments, does it have i didnt see anywhere where during this process where sort of automatic, is there any notification of the community . Supervisor peskin i do not see any provisions that counsel with corre can correct me as to the temporary use notification. Victoria wang, deputy City Attorney. Thats correct. The amendments before you do not contain a notification provision for the temporary land use authorization. Supervisor peskin but would for going to permanent. Still excuse me . Supervisor peskin i was just adding for my colleague that those notification requirements would, upon application for a permit conversion, trigger public notice. Correct. Supervisor peskin okay. President breed okay. Anyone else on the amendments . Is everyone ready to vote . Supervisor kim. Supervisor kim im so sorry. I asked about the current number of operators, 46, but i forgot to ask about the pipeline. So if you have land use authorization and youre in the pipeline today, you can convert to adult use . Or is it everyone in the pipeline can convert temporarily im sorry, are eligible for the 120day expansion to adult use . Under the amendment that the board adopted at its last meeting, this temporary expansion of your mcd permit is only available to existing mcds and and a pipeline mcds that have been shutdown by the federal government under the compassionate use act, i believe thats just one other, at this point. Supervisor kim okay. So its 46 plus that were shutdown by federal raids, so what happens to the pipeline . When can they get an adult use expansion . Theyre not eligible for the temporary, but they are eligible for the permanent . Im just wondering if they get them before the equity applicants, as well. Supervisor safai madam chair, can i actually comment on that because my amendment actually dealt with that. President breed supervisor safai, do you have a comment or question for supervisor safai, supervisor kim . Supervisor kim is it okay if i just have them answer first because im just trying to keep everything straight in my head. Supervisor safai i got it. Supervisor kim so those in the pipeline are not eligible for the temporary expansion. Thats correct. Its only for the ones that were shutdown, so going back to supervisor safais earlier amendment which discussed how businesses which businesses will get permitted initially, and what that amendment does is to say that the director may only give permits to, i think, six categories of business, as least initially, and those categories are equity applicants and equity incubators, equity applicants that possessed one prior to the date of this ordinance, temporary businesses that get a nonretail businesses, businesses that have demonstrated to the satisfaction of the director that they were operating in compliance with the compassionate use act of 1996 and were forced to stop their practice because of federal prosecution. So that would capture some people who are in the pipeline, but only those who received their approval from the Planning Commission before the Effective Date of this ordinance, as well as those businesses who registered with the office of cannabis as a preexisting nonconforming operator. Those are the categories of businesses who may be immediately eligible for a permanent permit once they are made available by the office of cannabis. Supervisor kim so if i was to limit my question just to those in the pipeline, its either those who have gotten their Planning Commission approval before the date of this ordinance being finally passed and signed. Thats right. Supervisor kim by the mayor, and it also. And it would be supervisor kim skb thoand that got their mcd permits. So there there may be a number of applicants in the pipeline that wont be eligible for adult use, period, expansion, unless they take on an equity owner. Thank you very much for letting me ask all of these questions. I just wanted to know what were voting on today. President breed so does anyone have any