CA: L.A. Voters To Decide How To Regulate Cannabis In 2017

Katelyn Baker

Well-Known Member
On Tuesday, Proposition 64 passed by 17 points making California the largest state in the country to legalize recreational marijuana. Now comes the hard part.

Public officials have the herculean task of pulling a billion-dollar industry into the mainstream economy.

The Los Angeles City Council, before election day, had a regulation and taxation plan drafted on the ballot for the Los Angeles County municipal elections on Mar. 7, 2017. The measure, known as CERTA (Cannabis Enforcement, Taxation and Regulation Act), calls for maximum daily criminal and civil fines and other penalties for unlicensed cannabis dispensaries and other businesses beginning July 31, 2018.

In May 2013, Angelenos passed Proposition D, which regulated medical marijuana dispensaries in the city. Afterwards City Attorney Mike Feuer shut down more than 800 dispensaries.

"The cannabis tax and enforcement measure the city council placed on the March 2017 ballot lays the groundwork for a process leading to a new city regulatory program for the industry that will replace the 2013 Measure D approach," said Paul Michael Neuman, spokesman for Los Angeles City Councilman Paul Koretz, 5th District. "That process of developing regulations and laws, which will address the full range of cannabis business activities and involve input from both L.A.'s communities and industry participants, also will accommodate Proposition 64 and state regulations approved in 2015."

CERTA stipulates rules for obtaining licenses to sell marijuana and fines for operating without them. Licenses will be needed to own and operate a dispensary, as well as cultivating, manufacturing, distributing, shipping or generating revenue from cannabis. CERTA sets maximum criminal and civil penalties for violations that include a $100 fee for every $1,000 in sales, with each day in violation constituting a separate offense. It would also enable the Los Angeles Department of Water and Power to discontinue utilities to any property found violating regulations.

Some feel the proposed measure is a non-comprehensive attempt to secure tax revenue without expected protections most industries have.

"It's a lot of stick and not much carrot," said Craig Scott, president of Brownie Mary Democratic Club of Los Angeles County. "It's a lot of taxation and penalties, without any indication of how they're going to regulate the number of dispensaries, rules and many other companies in this industry: delivering services, manufacturing for edibles, creams and other things. Also cultivation, there's hardly ever any mention of that and other businesses. CERTA could be good, I just don't know. It depends on what the next step is," Scott said.

Proposition D will stay on the books before new regulation takes effect in July 2018. The city scheduled three public hearings on marijuana regulation.

"The vast majority of people in the room were cannabis advocates," Scott said. "There were a few people who had problems with cannabis and thought it was the cause of all evil. People also complained about litter, but I personally live a block from a dispensary, and I see a lot more litter from the 99 Cent Store and the Burger King."

CERTA is not the only option for voters. The United Cannabis Business Alliance Trade Association (UCBA) has its own measure which would grandfather existing dispensaries, allow them to operate in some non-residential zones and specify more stringent fines on non-permitted dispensaries. According to Neuman, the city has been successful at gaining the UCBA's support by incorporating its interests into the CERTA.

"The goal is to bring order to the confusion that currently exists," Neuman said. "Importantly, the council's ballot measure also accommodates key concerns contained in the competing measure placed on the same ballot by industry activists, who we now expect to shift their support to ours."

The UCBA could not be reached for comment but its measure will remain on the March ballot even if the association publicly endorses the CERTA.

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News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: L.A. Voters To Decide How To Regulate Cannabis In 2017
Author: Brent Giannotta
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Photo Credit: Gavin Young
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