Category: Proposition 64

In November of 2016, California voters approved Proposition 64, the Adult Use of Marijuana Act (AUMA). Under Proposition 64, adults 21 years of age or older can legally grow, possess, and use cannabis for non-medicinal purposes, with certain restrictions. In addition, beginning on January 1, 2018, AUMA makes it legal to sell and distribute marijuana through a regulated business.

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California Cannabis Law Presentation to Orange County Bar Association

Cannabis Law

The Law Offices of Jennifer McGrath is pleased to announce that Attorney Jennifer McGrath recently delivered a California Cannabis Law presentation to members of the Real Estate Law Section of the Orange County Bar Association.  The presentation entitled “The Impact of Local and State Cannabis Regulations on the Real Estate Market” focused on the history of cannabis law in California, the status of current local cannabis regulations, the potential risks to both landlords and tenants from operating a marijuana business, and tips on negotiating a cannabis lease to minimize risk.  This cannabis law presentation was approved for MCLE credit from the State Bar of California.

View the California Cannabis Law presentation slide show – California Cannabis Law & Real Estate.

The history of California Cannabis Law included discussion of the 1996 voter approved Proposition 215 Compassionate Use Act (CUA), the 2003 SB 420 Medical Marijuana Program Act (MMPA), the 2008 Attorney General Guidelines for the security and non-diversion of medical marijuana, the 2015 Medical Cannabis Regulation and Safety Act (MCRSA), the 2016 Proposition 64 Adult Use of Marijuana Act (AUMA), the 2017 SB 94 Medicinal and Adult‐Use Cannabis Regulation and Safety Act (MAUCRSA), and the 2018 Bureau of Cannabis Control (BCC) emergency regulations of commercial cannabis.

More detailed topics in the California Cannabis Law presentation included California State regulators, types of cannabis businesses (retail, cultivation, manufacturing, distribution, testing, microbusiness, etc.) local city and county regulation of cannabis, zoning and permitting, risk to landlords and property owners, civil citations, property liens, criminal violations, restricted access to property by local building officials and fire inspectors, violations of code, civil complaints and lawsuits, a new California State law penalty for engaging in commercial cannabis activity without a California Cannabis License, cannabis lease terms, private cannabis cultivation, federal cannabis law, the Rohrabacher-Farr Amendment (now known as the Rohrabacher-Blumenauer Amendment), forfeiture, and cannabis banking.

The California Cannabis Law presentation also discussed the difficulties created by the lack of participation of local jurisdictions in the regulated cannabis industry.  Ultimately, less than 15% of cities and counties in California have embraced any type of cannabis business and Governor Brown’s projections of cannabis tax revenue have fallen very short of meeting the State’s objective.  Local jurisdictions have chosen instead to ban cannabis businesses or delay local cannabis licensing.  Many California cannabis industry participants have been unable to obtain a State cannabis license due to the inability to obtain a local cannabis license or permit which is a prerequisite to a State license.

Jennifer McGrath is available for lectures and other speaking engagements on the subjects of California cannabis law and licensing.  The Law Offices of Jennifer McGrath provides legal support and guidance to members of the cannabis community as well as Cities and Counties in navigating the emerging California State and local regulation of both recreational and medical marijuana.

Contact us to learn more about California state or local cannabis regulations, cannabis regulatory compliance, and cannabis litigation.

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Sacramento City Council Approves Permit for High Times Central California Cannabis Cup

Sacramento Cannabis

The County of Sacramento, California, has a population of over 1.5 million.  (Sacramento County Census.)  54% of the voters of the County approved the legalization of cannabis (The Adult Use of Marijuana Act (AUMA) Proposition 64) on November 8, 2016.  (California Proposition 64 County Results.)

The City of Sacramento represents nearly 1/3 of the total County population (Sacramento City Census) and the City of Sacramento is the only city in the County accepting cannabis permit applications for indoor and mixed light marijuana cultivation, non-volatile manufacturing, testing laboratories, delivery-only (non-storefront) dispensaries, and distribution.  There are currently 30 permitted medical cannabis dispensaries, with 11 also having a cannabis license for adult marijuana use.   The City is not accepting any cannabis permit applications for additional dispensaries at this time.  (Sacramento City Cannabis Permit Process.)

The majority of other cities in Sacramento County (representing slightly less than 1/3 of the population of the County – City Census Data) Citrus Heights, Elk Grove, Folsom, and Rancho Cordova, have adopted complete bans of commercial cannabis businesses.

Despite the fact that the majority of Sacramento County voters approved Proposition 64, the County Board of Supervisors also adopted a ban on commercial marijuana businesses by a 3-2 vote.  (Sacramento County Board of Supervisors Action Summary Marijuana Ban.)

It is apparent that the County of Sacramento and most of the County’s cities are struggling with meeting the expectations of their constituents in cannabis regulation and taxation.

In the latest example, even the City of Sacramento, which took the first steps in creating a local cannabis economy, hesitated in permitting the first licensed temporary cannabis activity at the Cal Expo Fairgrounds.

On April 24, 2018, the City of Sacramento considered a temporary permit process resolution to allow the City Manager to license temporary cannabis events.  The City Council continued the item, without any discussion, jeopardizing the potential success of the first-ever Sacramento located Central Valley High Times Cannabis Cup scheduled for May 4-5, 2018.  The policy proposed on April 24, was not limited to just the upcoming event, but to any temporary cannabis event in the City.  (Sacramento City Council Report re Local Approval for Temporary Cannabis Events at Cal Expo.)  The continuance may have been influenced by a decision of the City of San Bernardino to deny a temporary permit less than 48 hours before the High Times 4/20 Cannabis Cup event the week before.  The 4/20 Cannabis Cup event proceeded without the sale of cannabis at the event.

On May 1, 2018, less than 72 hours before the start of the Central Valley High Times Cannabis Cup, the Sacramento City Council considered an agenda item limited to only the upcoming High Times Cannabis Cup Central Valley event.  High Times CEO Adam Levin spoke at the meeting.

After more than two hours of robust debate, the Sacramento City Council approved the temporary City cannabis event permit for the Cannabis Cup at the Cal Expo Fairgrounds.

Contact us to learn more about California state or local cannabis regulations, cannabis regulatory compliance, and cannabis litigation.