CA: County Adopts The First Of The Commercial Medical Pot Ordinances

Katelyn Baker

Well-Known Member
Monterey County's proposed commercial pot ordinance is moving forward.

At Tuesday's meeting, the board of supervisors unanimously greenlighted the inland and coastal zoning ordinances — two of the five medical marijuana ordinances.

The board will consider the first reading of the remaining three ordinances, related to permits and tax on July 19.

If the ordinances pass, the only ordinance that would require a public vote is the tax measure on commercial cannabis. The measure is expected to be placed on the November ballot.

This means the county continues to move forward in having its own commercial medical pot regulations.

Commercialized medical marijuana is a hot button topic in municipalities across California. The state has allowed local governments to decide whether to allow it or ban it, and create their own set of regulations. Monterey County is allowing for sales and cultivation, and over the past year staff has been at work to produce a permanent ordinance.

The county considers the issue critical since it relates to economic development. County staff expects that medical marijuana will bring more tax revenue and jobs to the region. And in a region where agriculture is already an economic engine, the issue has sparked debate and discussion over land and water use.

Public packs meeting

Tuesday was also the first time that the draft ordinances were open to public comment.

Attendees packed the board of supervisors' chamber and attracted nearly two dozen speakers.

Attendees represented a variety of interests - agriculture, growers, patients using marijuana for medicinal purposes and residents who shared concerns over public safety issues. At Tuesday's meeting there appeared to be a balance of opponents and proponents.

A number of residents from Lockwood in south Monterey County said that the existing industry, which has been operating under the radar, has created public safety hazards.

One resident said there was "a lot of damage to private roads, bright lights at night, and generators. We'd like to see the ordinance stay as strict as possible."

Salinas resident Cheryl Ward-Kaiser is against the county moving so quickly on the ordinance before coming up with a specific public safety strategy. Ward-Kaiser said her husband was murdered in 1991 at their home. The three-time cancer survivor said there are numerous medical alternatives to marijuana.

"I think they are nuts and they are going to be sorry," said Ward-Kaiser of the county. "It's all about security."

Move forward?

With continued questions over outdoor cultivation and taxes, there were questions on whether the board should wait to forward on the ordinances.

The county's planning commission recommended the board hold off on adopting an ordinance. The commission's list of 20 suggestions including considering outdoor cultivation.

"I feel like we are pushing a little too fast," said Supervisor Fernando Armenta, who said he wanted more details on enforcement.

County supervisors all agreed that the medical marijuana ordinance has been a challenge to put together given the diversity of interests.

"This was one of the most difficult ordinances to come up with," said Supervisor John Phillips, who served on the ad hoc committee.

And there are numerous unknowns. How great of a public safety issue would it be and how much tax revenue could it bring? How much water would the burgeoning industry require?

The tax ordinance, which places a special tax on the medical marijuana businesses, is arguably one of the more controversial.

The county is proposing a $15 per square foot tax, which the industry isn't happy with.

"That's an exorbitant amount to be paying," said Joey Espinoza, president of Coastal Growers Association and Monterey County NORML's deputy director. Monterey County NORML is a nonprofit that supports reform of marijuana laws and lobbies in favor of the cannabis industry.

Espinoza said the industry is proposing a 5 percent tax on gross sales since "we are being taxed by multiple agencies." High taxes are likely to spawn a larger black market, he said.

In the meantime, the industry continues to operate as it adopts a wait and see attitude.

In late February the county extended its interim ordinance, which allows growers who significantly invested in the business before July 1, 2015 to operate.

Soon after that vote, Jeff Brothers, CEO of FLRish, Inc. that has medical marijuana dispensaries in Northern California including San Jose, launched his cultivation operation in a greenhouse just south of Salinas.

High taxes also limit what Brothers forecasts can be an "important economic engine for Monterey County."

Aaron Johnson, partner at L+G, LLP and legal counsel who represents medical cannabis growers in the county, suggested having a range of amounts per square foot or a tax on a gross receipt.

Brave new world

In the now yearlong process of drafting the ordinance, numerous county agencies including the District Attorney and Sheriff have been involved along with an ad hoc committee and planning commission.

County staff has tapped into counties such as Butte which have adopted ordinances as case studies. The county has tapped HdL, a California-based firm for its medical marijuana consulting services.

"This is a brave new world that we are entering into," said John Guertin, the county's acting deputy director of the Resources Management Agency at Tuesday's meeting. "This is just getting our feet wet," Guertin said calling the county's approach a "phased step into getting into this world."

County Associate Planner Craig Spencer, who is leading the initiative, said a phased approach is safer. Spencer pointed to nearby Santa Cruz County, which had challenges keeping up with the industry growth. The upshot included fire hazards and hillside conversions.

In an interview on Monday, Parker said having an ordinance is a priority for the county. The county has until February 26, 2017 to complete the ordinance, but the board of supervisors said it is a priority item.

Since the county finalized its draft in May the draft has been revised and presented to the Planning Commission on June 21 and June 28.

"I believe they wanted something within a few months of the interim ordinance," said Spencer.

"Having an ordinance and regulations that spell out ground rules for cultivation. It really means there's clarity for the people who would like to do the cultivation and manufacture," said Parker.

Parker said it is especially important for a county where agriculture is a significant part of the economy. Agriculture is the key economic driver in Salinas Valley and is a $9 billion industry.

Although some specifics of how the industry will be regulated remains unknown, Parker suggested the medical marijuana industry will bring additional revenue to the county.

The greenhouses, which were used for the once flourishing cut flower industry, will now be used for cannabis.

"It is using existing infrastructure in a positive way," said Parker.

Connie Bauer, who works for Creekside Farms a small farm in Monterey County, said the farm plans to expand the business from lavender to cannabis "because things have been difficult last few years."

Numerous residents said the ordinance came down to the potential revenue medical marijuana can bring in.

"It's about the money," said Terry Kaiser, a sergeant with Monterey County Sheriff's Office who attended the meeting with his wife Ward-Kaiser.

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News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: County Adopts The First Of The Commercial Medical Pot Ordinances
Author: Amy Wu
Contact: (831) 424-2221
Photo Credit: AP
Website: The Californian
 
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