Effect communities of color and that people could have issues getting into the type of workforce they said the 6 police beats that have the most impacted by cannabis Law Enforcement would have a opportunity to get a permit or if someone is arrested in oakland for a cannabis conviction. What happens is, 50 percent of the permits have to go to either people from the disadvantage communities or people who have suffered from Law Enforcement impacts on cannabis so when they issue permits one comes from a equity clause and another issued to another type of ownership. Are you suggesting this not suggesting, just saying just giving backgrounds. This is what oakland has done. I dont kneif it wim work in San Francisco but there are local jurisdakezs that take the equity seriously as we move the new legislation forward. Sorry, real quick. Has San Franciscohave they come up with their own set of recommendsations to present . The task force we have is for adult use so this is different. Sthis for medical cannabis. I dont think they addressed the ecwawty issue. Now they are talking about land use but think they will have recommendation for the board by the end of the year. I imagine that is on the ballot in november will address adult use so we should be forward thinking in the policy. That is why the task force exists. Thank you, supervisor wiener. Department of Public Health is head thg task force and think ecwawty is a main thing i will talk about. Also, taxation how we tax medical cannabis will have a big impact on its output. Quick question back to taxation, is there a estimation how much new revenue will be generated . I dont have a estimation. I know right now when we look at different systems for example the state of washington had adult use tract and medical cannabis tract and they ended up merging them because they had a tax structure that was different on medical cannabis than adult use and 37 percent tax on both. Now, from department of Public Health perspective you mentioned you dont track medical cannabis use. Is this something you will track moving forward . The state now will implement a tracking system and it is two fold. One is tracking the fee soosale of the medical cannabis and also will have a patient tracking database so that is done at the state level. And, for the city and county of San Francisco, how many licenses arenew licenses will be created in order to address the growing industry . Now we have 28 licenses and think it will depend on the zoning. As aaron said, there isnt a lot of opportunity for new businesses to come in now because of space issues. I think we will have to look if we want to expand the medical and adult use we have to think about the taxation zoning to allow for this new industry to expand. Thank you. Just the last thing we need to do is really the state will give treatment to new business the city is in good standing. Just next steps very brief ly, we need to participate in the state agencies currently developing the new laws and regulations. We need to development a city process for working with our Key Stakeholders and informing the key decision i just talked about. Lastly, we need to develop local legislation and also the new local decision we make. Thank you. Thank you. Just want to jump in. I think a lot of times when we talk about medical cannabis locally, the issue that dominates is the clustering issue, the green zone, red zone issue. I think it frustrates absolutely everyone. It frustrates the Planning Department and other departments and frustrates people who want medical cannabis dispensry in their neighborhood but cant mpt it frustrates those in the green zones because they dont want clustering. What frustrates the medical Cannabis Community because there are certain areas where they can go and sometimes the system encourages clustering because oof the areas off limit. In my district, the castro and market the bulk of the neighborhood is off limits thrmpt is a area off Church Street near market where there is a very small green zone, but most of the neighborhood is completely off limits and we know there are parts of the southern part the city and southeast where it is the opposite. It is just a challenging situation and i will say that we asked the taskforce in terms of planning for the possibility of adult use leagueization to try to make good recommendations arounds how to address the clustering green zone, red zone issue to vamuch more equitable system because now the system is not working. I also think it is unfortunate that the clustering green zone red zone issue dominates because we know the cannabis industry is so much more than dispensaries. People think just of the dispensries and worst Case Scenarios and sketchy dispensries. We knethe industry goes beyaunds dispensries for cultivation and manufacturing and the products that are not smoked, this is a industry that is innovating and flourishing and creating so many products with businesses that may not have interaction with the consumer what so ever so there wont be people going in and out but need a place to operate. Our laws are just way way far behind in terms of recognizing the breath and diversity of this industry and community and the products they produce and the need to have a modern and rational permitting system that takes into account the breath of this industry and doesnt just try to pigeon hole everything into the mcd category. Thats challenge we have both in terms of implementing the state law locally and creating the needed permits and parameters and the possibility of adult use legalization and local regulation. I think it is important to keep that in mind. Thank you for the presentation. City presentation is done. Thank you. Madam chair, if there are no question or comments i would like to ask [inaudible] allen to speak. I have been work wg mr. Allen and others on the hearing and also on various issues of interest in terms of medical cannabis. Mr. Allen. Thank you supervisor wiener. Give me just a moment to get settled here. While im doing that i will say your closing comments were quite appropriate in that the diversity of the new industry is yet to be known and as we talk about how to license it on the non retail side and explore what some the pioneers in the industry have done to create Business Models that may look what those license types will be in the future you can see how diverse the community of producers is and in many respects how invisible their businesses are. I will begin by saying they my presentation isnt about medical cannabis dispensaries or retail environment or the challenges that we have in trying to locate a medical cannabis dispensry in the neighborhood. Im encouraged when i hear mr. Star talk about creating find frgz the Planning Commission so when they begin to hear future cannabis dispensry applications they have more than just the number of people that are there to speak against or for it to determine if they say yes or no. We have Something Different with non retail. Good afternoon, im speaking today on behalf of california cannabis voice edgeucational group and california chapter association. The medical marijuana regulatory safety act soon to have the name changed to medical cannabis regulation and safety act because there is no plant named marijuana, there is a plant named cannabis and want science to direct the way the bureaucracy addresses the plant. Use cannabis for the scientific term. Im known because of advocacy of entertainment and night life and for the past two decades i did that. By introduction to the political process started with cannabis and happened long before entertainment. When i met a man named dennis per own in the summer of 1992. By taking me by the hand and walking through the office of insupervisors he showed the power of direct citizen action. That day i recounted to anyone that would lusten of having just been arrest td for growing cannabis in my closet. Arrested for growing pot in my closet which i used to alleviate the side effects of aids drugs for my husband who passed shortly after that arrest. Cannabis was one of the few things that worked for him in the last of his years. After his death i continued my medical cannabis advocacy in 1996 as a board member of the First Medical Cannabis dispensry known as camp or california helping to alleviate medical problems. As the chair of state leagueization task force and taking up social justice issues and zoning and looking at how this industry will look when we have further distinctions between just dispensries and production. San francisco should really show its leadership in cannabis by demonstrated to the state and nation how we can in the thriving urban mixed use environment have cannabis and have it work. Today i ask you to focus not on the retail side, but on the non retail side of licensing and take the retail at another hearing. As mentioned, a requirement for making a application to the state dual licensing system is for the applicant to first provide a permit or statement of authority from the city and county oof San Francisco. In order for that state agency to accept the license. The state has given a date certain of january 1, 2018 for business tooz make that application and if weor they will facethey wont be able to continue. They get there or dont survive the first cut. By working backwards now is the time for San Francisco to start getting our local permits process in order. In failing to provide regulatory and permitting certainty we will see many promises business move from the city and there are many attempts to get out in front of the cannabis industry by providing zoning and other incentives to have the businesses locate there. Regulation gives good aspiring businesses huge incentive to become permitted and licenses. Lets harness the momentum and use this as our call to action. You heard how leadership in the dph created a process to allow for the local production of cannabis in cultivation sites that are all associated with medical cannabis cooperative dispensry and how those 20 registered cultivation sites harmoniously operate today with vuch wale no complaints from neighbors or from the police. Some of those cultivation sites are immediately sharing a boundary with residential uses and still and yet today after two years of operation they produce no complaints. That is a pretty good example of a Good Neighbor. The state gave a temperate for stands alone licenses based on business type and can create a approval process and activate the non retail side of cannabis businesses where they are appropriate as we heard from aaron in his presentation in planning and in so doing not only create incentive where they should go, but advance this made in San Francisco branding opportunity. Cultivation gives a glimps into realty of inblack market. It is my estimate there are at least 150 cultivation sites alive in San Francisco today. 150. We know about 20, there are 150. There are all most all invisible to local authorities and not inspected or approved. While we dont have a complete profile of the businesses, we have engaged the beginning stages of a survai which ill distribute to you now. You can use for reference gives a idea the scope of the businesses and the Workforce Development opportunities. Many cultivation operations want to transition to a legalized business. Some are located in buildings and not in the proper zoning or are incapable being brought up to code and they will have to close or move. That is the realty. Some the folks i talk to actually plan to sun set their business and not continue in a highly regulated environment. They came out of the days when this was the wild west, cannabis was the substance that didnt require regulation and now that is rerelated it no longer fits them and will sun set their business and come will consolidate and others wont make it through the regulatory eye of the needle. For me, the sorting begins with zoning appropriateness. In desire and advocacy to create a clear approval process to guide the evolution of cannabis industry to meet and exceed standards for best practice and being active Good Neighbors, cannabis compalshz programs should continue as part the agrud to Good Neighbor policy to insure financial patients continued access to medicine. We can use cultivation, the only non Retail Cannabis business type which can receive sf recognition to pattern principles to create a pathway to the other 5 groups of non retail license types. Simply stated, mcrsa divides by size. The new multitiered state regulation challenges through dph and it is time to update the system to accommodate the variety of new different cultivation license types. Why is this going on in San Francisco . We have very little land and that is because cannabis grows well both indoors and outdoors. Cannabis cultivation in San Francisco primarily occurs indoors where science enabled master grows to optimize conditions and produce a fine product. They were all developed under threat of prosecution so indoor cultivation facilities created and baroes technology and Business Practices which render them un detectable of the surroundings. A business that exists and produces taxes and jobs is undetectable is a good example of a Good Neighbor. Indoor cultivation has been proved in 20 sites that have gone through the citys recognition process to be able to be permitted, inspected and safe and thats is our goal, create a cystal all can go through. In manufacturing the different issue. The state created two license types for manufacturing. One, volatile, one using non volatile substances. As the distinguishing factor when it falls in the volatile and non volatile. We have similar distinctions in our zoning code so there will be a reezy transition when we talk about volatile and non volatile. It gets more complicated because manufacturing creates a unlikely mix of products. It starts in manufacturing with a process known as extraction. That is where everything from a non volatile co 2 to volatile substance can be used to separate the active cunab noids from the plant mass producing a highly concentrated and molasses like substance along with a huge pile of compose. The extracted product is potent and ready to be refined and transformed into a product you can eat, spray, eb, drop, infuse, smoke, drink, put in your dog, send to the moon, whatever it is, science and technology will show where cannabis belongs. These products Generation Facility resemble more Small Assembly plants and all about again invisible neighbors that offer good paying jobs and benefits. Third type is where you produce things like medical rubs. They are great for arthritis or sublingual spray, great for quick upof the medicine. Shoe insert with can bunoids in the insert allowed to transmit through the sole of your feet. To vape cartridge which 3 years i didnt know about that is the preferred by 30 percent the consumers preferred way to injust cannabis t. Is all most smoke free way to take this concentrate through extraction and refinement without having the consumer have a pipe and joint and have smoke and create a problem. 3 years ago didsant exist today, 30 percent the market, probably a big percentage. Businesses engage in that manufacturing look like knhae other light production facilities and huge opportunities to scale and produce good paying jobs which dont require a technical degree, just good work ethics and showing up on time. Lastly, and also includes in the Large Manufacturing license type is my favorite, the creation of cannabis food or refer to as edibles. A place to create those products actually may very well resemble a commercial kitchen rather than factory. When chefs can produce food San Franciscos food culture will be able to write a new wikipedia section on medical cannabis food and hope we do. For San Francisco, for me, San Francisco belongs at the forfrupt and think medical culinary Cannabis Institute of california where even if the food isnt good, it still does the trick. Let that sink in. There are other type of license that dont exist and created for support services licenses to help the state collect taxes. They make up 3 license types, transportation, distribution and test. The wonderful thing about this is these businesses fit into our existing zoning where we allow transportation facilities, distribution ware house and testing labs. This is part of the lock down the state regulation provides. It has to be transported to that dist pensaries by a licenses transported and a license distributesed with the products tested and labeled by a testing facilities. This happens with a tracking system to among other things established [inaudible] needed such as made in San Francisco or humbolt. You are losing us here. I will end by saying social justice opportunities. We are coming from a incourseerated moment and need it to transition those people. These jobs dont require special skills, why dont we set up Training Programs and reach out to partners in the unions and go to drug policy alliance. Thats smart thing to do. That is one of things im most interested in and wish your presentation focused more of the workforce education and training component earlier in the presentation only because we have a few more items we have to get to that are just as long. I just want to say thank you, you painted quite a vision for us to aspire to. I had no idea about the insoles. I learned so much in the one year i have been studied this particular topic and want to recognize your leadership. The taskforce i think will be a tremendous asset for San Francisco and entire state and i like to say across the entire country if we