Proposed Cannabis Regulation and Taxation

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Proposed Cannabis Regulation and Taxation

COMMUNITY OUTREACH

On Thursday, May 24th, 2018, SCI Consulting Group held two community meetings: Local Cannabis Policy in Oroville, in which the community members received information regarding the potential process of drafting amd implementing a regulatory ordinance.  Please find the presentation presented by SCI Consulting Group HERE.

BACKGROUND 

On February 1, 2011, the Council, citing public health and safety concerns caused by cannabis activities, passed Ordinance No. 1771 prohibiting cannabis dispensaries and other cannabis related activities within the City.  The current ban makes the establishment or operation of a dispensary and/or other cannabis activities unlawful and subject to administrative fines, civil nuisance abatement and other remedial measures.  

At the December 5, 2017 City Council meeting, the Council received a presentation from Jessica McKenzie, Director of the Inland Cannabis Farmers Association, regarding commercial cannabis. Following a discussion, the Council directed staff to bring more information back at a subsequent meeting.

On January 3, 2018, the Public Safety Director, Community Development Director, and three Councilmembers visited the City of Shasta Lake and met with City staff and elected officials to receive information on how the City of Shasta Lake has been regulating commercial cannabis and what impact it has had to their community.

At the January 16, 2018 City Council meeting, an item was taken back to the City Council to review and consider directing staff to pursue amendments to the City of Oroville Municipal Code regarding commercial cannabis regulations and pursuing a special or general tax applicable to all commercial cannabis businesses. At this meeting, the Council gave staff the following direction:

 1. Direct staff to move forward with bringing back the following items for Council action:

  A. An ordinance to establish comprehensive regulations related to the establishment, operation, cultivation, manufacturing/processing, sale, testing and distribution of commercial cannabis within the City of Oroville.

 B. An ordinance amending the City’s Zoning Code establishing land use regulations for the cultivation, distribution, dispensing, manufacturing/processing, nursery, testing and transport of commercial cannabis within the City of Oroville.

 C. A resolution to approve contract with a consultant to provide guidance in the development of the regulatory fees for cannabis monitoring and compliance, to help develop a cannabis tax measure (ballot initiative), and to facilitate the community outreach process. 

 2. Provide direction regarding a Special or General Election and a ballot measure to adopt an ordinance imposing a special or general tax on all commercial cannabis businesses.

On February 20, 2018, City Council took action on the following:  (votes for these actions can be found in the February 20, 2018 meeting minutes). 

  • Approve the development of a Mayor directed ad hoc committee to include public and private agencies to bring forward an initiative for the 2018 General Election.
  • Approve a special services agreement with SCI Consulting Services for commercial cannabis related consulting services. (Resolution No. 8686, Agreement No. 3245)
  • Deny direction to staff to move move forward with placing an initiative and ordinance on the ballot for voters of the City to determine whether comprehensive commercial cannabis should be allowed in the City.

Measure L and Proposition 64 Results

At the January 16, 2018 City Council meeting, Council requested staff return with the results of how City residents voted for Measure L and Proposition 64. The City of Oroville’s voting results for Measure L and Proposition 64 are as follows. 

 

Yes

No

Proposition 64

51.67% (2,746)

48.33% (2,569)

Measure L

44.33% (2,296)

55.67% (2,883)

 

In summary, Measure L was a Butte County measure for new regulations to allow cultivation, distribution, transportation, manufacturing, and dispensaries, subject to the regulations specified in the measure. And Proposition 64 was a statewide measure for legalizing recreational marijuana for persons aged 21 years or older under state law and establishing certain sales and cultivation taxes.