Expert presentations on state and local regulations with an opportunity to give public comment to the state
Los Angeles Athletic Club
431 W. 7th Street
Los Angeles, CA 90014
June 1: 4:00-7:00pm – Doors open at 3:30pm
$12 on-site parking available plus public transportation options
The proposed new regulations from the state agencies responsible for overseeing cannabis are here, and they have huge implications for everyone in the cannabis industry. This is a critical opportunity to change the rules before they are set for 2018.
These agencies have opened up a public comment period so any interested party can ask for changes or make a case for how they think the regulations can be improved. This gives cannabis advocates and the industry time to respond and present alternatives to the state.
If you can’t make it to the public comment hearings, we want you to have an opportunity to participate and make sure you are heard. In order to gather your feedback, we will be holding a session at the LA Athletic Club to explain and discuss the new regulations and take your comments.
We will also present the latest and greatest on the City of LA ordinance so make sure you make it.
There are important points in the regulations our community needs to be heard on, and our voices are stronger together!
A group representing a number of quasi-legal pot shops in the city of L.A. will throw its considerable weight behind a City Hall–sponsored effort to make those dispensaries fully legal. The organization, the United Cannabis Business Alliance, is scrapping its own measure, which already had qualified for the March ballot. Instead of potentially splitting the pro-pot vote with initiatives that essentially seek the same thing, the UCBA announced this afternoon that it will support Proposition M, which was approved for the ballot by the City Council last month.
“In the spirit of collaboration, the UCBA board of directors determined that the best approach to ensure uniform cannabis regulations for patients, communities and cannabis businesses is by working with the Los Angeles City Council rather than continuing to seek voter approval for our own initiative,” UCBA president Jerred Kiloh said in a statement.
The exact language of next year’s Proposition M, which was the brainchild of City Council president Herb Wesson, is yet to be determined. But Wesson’s office indicated he favors both the legalization of delivery services and an expansion of the number of pot shops in town above the 135 that currently enjoy limited legal immunity.
The two sides have had their differences. UCBA, which claims to be the largest trade association for those quasi-legal shops, has consistently opposed legalizing third-party delivery services such as Speed Weed. And the group hasn’t appeared to be as enthusiastic about increasing the number of pot shops.
Currently, only 135 or fewer medical marijuana dispensaries enjoy quasi-legal status in L.A. under 2013’s Proposition D. But that is all but certain to change, due to both the passage last month of Proposition 64, which legalizes recreational marijuana statewide, and last year’s California’s Medical Cannabis Regulation and Safety Act (MCRSA), which requires local permitting if medical dispensaries want to exist after Jan. 1, 2018.
The Southern California Coalition, an early backer of Wesson’s plan, represents another key faction of quasi-legal shops in the city. It wants to see as many as 495 shops fully legalized in L.A., according to coalition co-founder Virgil Grant. He says there are as many as 1,500 dispensaries within city limits, the vast majority of them illegal. So shutting more than 1,000 of them down while legalizing nearly 500 could serve L.A.’s big appetite for weed, the coalition argues.
Wesson’s proposal would upend Proposition D and leave it up to the City Council to ultimately decide how many shops to permit.
Under California’s new recreational marijuana law, pot shops that obtain the permission of state and local officials can sell recreational pot to those 21 and over starting in 2018. It’s expected that the weed market will expand and that many of L.A.’s medical marijuana dispensaries will convert to recreational sales.
Today, the Los Angeles City Council voted unanimously to request the City Attorney, with the assistance of the Chief Legislative Analyst (CLA), the City Administrative Officer (CAO), Office of Finance, and the Chair of the Rules, Elections, Intergovernmental Relations, and Neighborhoods (REIRN) Committee, to prepare the necessary election ordinance and resolutions to place a ballot measure before the voters at the March 7, 2017 Primary Nominating Election entitled the Cannabis Enforcement, Taxation, and Regulation Act (CETRA).
The recommended proposal mainly deals with taxation and enforcement and can be seen here (agenda item #11). Now is as important a time as ever to GET INVOLVED and participate in this transparent process that we all fought for. The Public Committee Hearings start tomorrow and we will be there!
COUNCIL PRESIDENT WESSON UNVEILS RULES COMMITTEE RECOMMENDATIONS FOR CITY SPONSORED BALLOT INITIATIVE FOR MARCH, 2017
Rules Committee Puts Forth Recommendations For City To Draft Ballot Measure For March, 2017
Today the City of Los Angeles Rules Committee unveiled a framework of recommendations to place a City sponsored measure on the March, 2017 ballot.
The recommendation was to prepare an election ordinance, the “Cannabis Enforcement, Taxation, and Regulation Act” (entire document here) that asks the voters to authorize necessary tax and enforcement measures and grant the City Council the authority to subsequently develop a local cannabis regulatory framework. Highlights include:
Repeal Proposition D effective January 1, 2018
Return “authority to the City of Los Angeles to regulate all aspects of the cannabis industry immediately”
Levy criminal and civil fines for unlicensed cannabis business operating after certain dates
Levy criminal and civil fines for property owners leasing to unlicensed cannabis businesses after certain dates
Implement tax rates for cannabis-related businesses beginning January 1, 2018 as follows:
- 5% gross receipts tax on medical cannabis sales\r\n\r\n10% gross receipts tax on recreational cannabis sales
- 1% gross receipt tax on cannabis distribution, transportation, testing, or research businesses
- 2% gross receipt tax on cannabis manufacturing, processing, or cultivation businesses
- Discharges the Office of Finance with the administration of tax registration, collection, and auditing
- Requests draft ballot ordinance from City Attorney no later than 2pm, Friday, November 4, 2016.
Also circulated at this meeting was a letter from Councilmember Bob Blumenfield, Third District (entire letter found here) asking that the ballot measure include a framework and deadline for development by the City Council “[t]o create a regulatory process and structure for the cultivation, processing, distribution and sale of marijuana products,” and “involve all stakeholders in the process of developing the rules, regulations and ordinances necessary to regulate the safe commercialization of marijuana.” Councilmember Blumenfield details a list of issues to be considered and resolved in this process, including:
- Rules concerning who may qualify for a license
- Regulation of transportation of cannabis in the City
- Penalties and fines for unlicensed businesses
- Zoning for all cannabis business types
- Advertising rules