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.

Redding is Accepting Commercial Cannabis Permits – Shouldn’t Shasta County as well?

Shasta County California

The City of Redding, California, has recently adopted a cannabis ordinance permitting no more than ten retailers of adult use cannabis and/or medical cannabis businesses and an unlimited amount of commercial marijuana cultivation (indoor only), manufacturers, processors, distributors, testing laboratories, storage facilities or deliverers of cannabis.  Although the Redding cannabis ordinance prohibits the new State business model of a cannabis microbusiness as well as cannabis events, it does permit cannabis licenses for distributors and marijuana testing labs which are in high demand on a State-wide basis as the July 1, 2018 deadline approaches for licensed cannabis facilities.  (See Redding Cannabis Regulations.)

The United States Census Bureau estimates that the population of Redding is over 91,000 (US Census Redding) which represents about one half of the population of Shasta County (US Census Shasta County).

The City of Shasta Lake, California, population over 10,000 (US Census Shasta Lake), permitted medical marijuana dispensaries some time ago and recently expanded the regulations for other commercial cannabis businesses.  (See Shasta Lake Cannabis Regulations).

If over 50% of the County has adopted some form of cannabis regulation, why isn’t the Shasta County Board of Supervisors taking steps to permit, regulate and tax commercial cannabis businesses to benefit their community?

According to a report issued by the California Growers Association released February 15, 2018, less than 25% of California’s fifty-eight counties have adopted ordinances to permit, regulate, and tax commercial cannabis activity of any kind.  (See An Emerging Crisis Barriers to Entry in California Cannabis.)  Without a local license, growers and other cannabis businesses are precluded from applying for a California state cannabis license.

Even the Northern California counties that have established commercial cannabis regulations, such as Humboldt, Trinity, Mendocino, and Sonoma, have incorporated limitations which continue to prevent established marijuana cultivators from obtaining a local cannabis license and thus access to the newly established legal state cannabis market.

Although one of the largest counties in Northern California, Shasta County has yet to embrace the opportunities of commercial cannabis cultivation in both employment and revenue.  The Shasta county-wide unemployment rate of 5.9% is approximately 1/3 greater than the state or national average.  (See Shasta County Unemployment Rate.)  Already a flourishing agricultural area, permitting both indoor and outdoor marijuana cultivation would be a natural fit.

As recently as November 14, 2017, however, the Shasta County Board of Supervisors reiterated the County ban on commercial cannabis activity.  (See Shasta County Cannabis Regulations.)

The neighboring counties of Lassen, Siskiyou, Modoc and Plumas, have also chosen to ban commercial cannabis businesses.  Tehama County went so far as to recently prohibit the cultivation of industrial hemp as well.  (See Tehama County Cannabis Regulations.)

Shasta County has a unique opportunity to adopt cutting edge cannabis regulation and taxation well in advance of neighboring counties and create a model for a thriving cannabis industry that would generate jobs and revenue for the County with little, if any, impact on current demographics.

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