Cannabis Opportunities in San Bernardino; or lack thereof

Marijuana Laws

For several years, cannabis businesses of any kind were banned in the City of San Bernardino.  In November 2016, the citizens of San Bernardino had three choices regarding the future of cannabis in their town.  Two of the choices were the result of the initiative process which requires the proponents to collect sufficient signatures from registered voters in the City before they could be placed on the ballot.  The third choice was a City-sponsored ballot measure.  With three options on the ballot, San Bernardino voters were faced with a difficult choice.

Measure “O” established a regulatory process for all cannabis businesses (medical and adult-use), including zoning restrictions related to specific parcel numbers, distance from residential zones, and taxation.  Measure “N” also established a regulatory process for medical cannabis businesses only, including zoning restrictions to permit businesses in commercial zones, established distance requirements, imposed a 5% taxation on all gross receipts, and mandated a minimum of twenty medical cannabis business licenses in the City.  Measure “P”, placed on the ballot by the City Council,  established a regulatory process for all cannabis businesses, including zoning restrictions, but no taxation.

The City-wide ballot measures were on the same ballot as California Proposition 64 (Adult Use of Marijuana Act – AUMA) , the State-wide legalization of Adult Use of Cannabis (read more about California Cannabis Law).  Nearly 53% of the citizens of the County of San Bernardino voted for the legalization of the Adult Use of Cannabis.

Measure “O” was the successful measure with 54% of the votes cast (Measure “N” received 51.10%, and Measure “P” 48.45%).

The City was simultaneously sued to mandate the immediate implementation of Measure “O” and, alternatively, a challenge to the validity of Measure “O”.  The Court issued its Final Statement of Decision invalidating Measure “O” on February 9, 2018.  Read the Court Decision on San Bernardino Measure O.

It is anticipated that the proponents of Measure “O” will appeal the trial court decision and request a stay of the trial court decision.  It is further anticipated that the proponents of Measure “N” will file a lawsuit demanding that Measure “N” is immediately operative.  For more info, see this article from the San Bernardino Sun.

Meanwhile, on February 1, 2018, the City of San Bernardino extended a moratorium for ten months and fifteen days reinstating the previous ban of all cannabis businesses.  City staff presented proposed new regulations to the City Council on February 7, 2018.  The proposed new regulations will be forwarded to the Planning Commission for consideration.

Between lawsuits and City Council consideration of new regulations,  it is unclear what the future of cannabis will be in the City of San Bernardino.

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

Protection Extended for State Medical Marijuana Programs

US Congress Protects State Marijuana

After a brief government shutdown, protection for state medical marijuana programs was extended again until March 23, 2018.  Congress and the President signed off on a six-week continuing resolution.

The budget resolution extends the Rohrabacher-Blumenauer Amendment which prohibits the use of funds to prevent certain States from implementing their own State laws that authorize the use, distribution, possession, or cultivation of medical marijuana.  That language was initially passed by Congress in 2014 as the Rohrabacher-Farr Amendment (H.Amdt.748) and is now known as the Rohrabacher-Blumenauer Amendment.  This is the eighth time the amendment has been temporarily extended by a continuing resolution from Congress, which hasn’t passed a new federal budget since 2015.

The Rohrabacher-Blumenauer Amendment was supported by a bipartisan group letter to House and Senate leadership from 66 Congress members including Rep. Dana Rohrabacher, R-California, and Rep. Earl Blumenauer, D-Oregon.

Also in support of the Rohrabacher-Blumenauer Amendment was a letter from California State Treasurer John Chiang.  Read more about state cannabis law at California Cannabis Law.

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