California ….”The Avalon City Council debated the feasibility of allowing cannabis for recreational use during its meeting on Sept. 17. Cannabis Law Report | How to buy Skittles Moonrock online

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Find out why Avalon (CA) cannot decide on Rec cannabis. Then multiply this conversation across the state to get a sense of why cannabis has been a 40-year conversation!

The Avalon City Council met on September 17 to discuss the feasibility of legalizing recreational cannabis. The conversation lasted about two hours.

The council did not take any action.

Mary Schickling, a councilmember, argued that recreational marijuana would be a revenue source for the city.

The federal government does not allow recreational cannabis to be transported through federal waters.

Background

The presentation was given by Management Analyst Devin Hart.

According to Hart, in Nov. 1996, Prop. 215 legalized medical marijuana in California. In November 2016, Proposition 64 was passed. Prop. 64, which was passed in November 2016, legalized cannabis for adult use or recreational use. On June 27, 2017, the then-Gov. Jerry Brown signed legislation that allows local governments to limit or prohibit the use of cannabis businesses for medical and non-medical purposes.

Hart said that the California Code of Regulations forbids transporting cannabis via water, but makes an exception for Catalina Island.

Hart said, “That’s the way we were able get our current medical practice licensed and operational under state legislation.”

She said that federal legislation does not include cannabis in Schedule 1 of illegal drugs. Hart said that the Federal Controlled Substances Act doesn’t include an exemption for medical marijuana.

Hart stated that the Rohrabacher Farr Amendment, which was adopted in December 2014 prohibits the Justice Department spending funds to interfere state cannabis laws.

Hart says that this is important for Avalon, because the Pacific Ocean falls under the jurisdiction of U.S. Coast Guard.

Hart said that there are no federal protections or guidelines to allow the use of recreational or adult-use cannabis.

Anni Marshall, Mayor of Avalon, said: “In Avalon.”

Hart replied, “Anywhere.”

Hart says that federal penalties for possession include up to a year in prison and fines of up to $1,000 for a first offence; 15 days up to two years in prison and $2,500 for a subsequent offense; and 90 days up to three years in jail and fines of up to $2,500 for a third offense.

Hart outlined the penalties for possession with intent to sell of cannabis: Less than fifty kilograms – up to five years imprisonment and a fine of $250,000; 50 to 99 kg – up to 20 years imprisonment and fines as high as $1 million; 100 to 99 kg – up to 40 years prison and fines between $2 million and $5 million. 1,000 kilograms or more: 10 years up to life in prison with fines of $4 million.

Hart said that the Justice Department has proposed that cannabis be moved to Schedule III.

Hart said, “It is still a controlled drug.”

Hart said that the transportation of cannabis along federal waterways would still be illegal, but the penalties will be slightly reduced.

According to the Drug Enforcement Agency, “Schedule 3 drugs, substances or chemicals” are drugs with a low to moderate potential for physical and mental dependence.

Hart said that the city staff interpreted this to mean that there was no way to transport cannabis for adult use to Catalina Island, without violating federal laws or risking the federal penalties we discussed earlier.

She said that the harbor master was in contact with Coast Guard, and they agreed that this is illegal.

She said that the Coast Guard does not need a reason to board a vessel and search it.

She said that the vessel of the previous cannabis operator was boarded several times. Hart said that they were only allowed to deliver because it was for medical purposes.

Hart then moved on to the local cannabis ordinance which was adopted in November 2017.

Hart said that it was wonderful to see the council weighing the impact of a cannabis business on the small town and the community’s nature with the desire to meet the medical needs of people in Avalon.

According to Hart the city requires brick and motor businesses be in special or commercial zones, exterior signs are prohibited, odor control is required, 24 hour video surveillance is required and uniformed security staff must be on site. The city also limits medical cannabis delivery services to one and prohibits public smoking of marijuana.

Hart said that the city could have adopted a cannabis tax but the council chose not to.

Avlaon voters will decide in March 2020 whether to allow recreational cannabis use in the city.

According to Hart, 435 voters voted “yes” and 612 voted “no”.

Voters also considered a measure that would allow a cannabis storefront within the city limits of Avalon.

According to Hart, 682 people voted “no” and 365 people voted “yes”.

Hart then turned his attention to the economic and community impact of expanding the current marijuana ordinance.

Hart said that 75% of Island visitors are day-trippers or cruise ship passengers.

Hart said that if the current cannabis ordinance were expanded to include adult use, a smaller portion of our local population as well as visitors would be able to take part without having to examine potential locations for consumption. As I mentioned earlier, you are currently prohibited from smoking marijuana in public places.

She said that there would be additional costs associated with the administration and enforcement of commercial cannabis regulations, as well as the illicit cannabis market.

Hart said, “I think this is something that every community struggles with.”

Hart said: “I’ve spoken to a lot of people in different cities, and I’ve found that their communities are really struggling with a robust illicit cannabis market.”

Hart says that the legal corridor has fees and regulations. Hart said that the illicit market has an unfair advantage.

She said that Avalon will need to figure out how to regulate the illicit market. Would the city have cats at the Catalina Express to monitor the lines of people waiting on the board? Hart said that if the city expands the market, it will need more administrative staff as well as more code enforcement support.

She then turned to taxation. Hart said that a tax would need to be approved by the local voters.

Hart claims that Santa Barbara taxed cannabis at 20%. Golita, a town nearby, imposed a tax of 5%. Hart said that in the first year, Santa Barbara did not get any revenue.

Hart gave an example where a cannabis product that started at $100 would increase to $140 after taxes.

Hart looked at cities similar to Avalon, and said that they all prohibit marijuana.

Santa Barbara was one of the cities that she said her staff looked at. Population: 87,533. Visitors: 6.5 Million per year.

Hart’s slide shows that the total local cannabis taxes was almost $1.3 Million. The Islander rounded up the figures.

West Hollywood was another city that the staff investigated. Population: 34,514. Visitors: 22 million. Nearly $2 million in local cannabis tax revenue. The figures are again from a slide. The Islander rounded up the figure.

Hart said that there are over 70 cannabis businesses in the area.

South Lake Tahoe. Population: 21,175. Visitors: 15 million.

Cannabis tax revenue: $1 Million

Hart said South Lake Tahoe was on the Nevada border.

Avalon’s population is 4,000, according to another slide. Visitors per year: 1,000,000

Hart was apparently referring staff projections for potential cannabis revenue.

She said that staff had observed a correlation between food and drink sales and cannabis sales in other cities of 3.7% to 4,8%.

Avalon staff rounded up the figure to 5%.

Avalon staff estimated that $120,000 could be generated at a tax rate of 5%; $240,000 at 10%; and $360,000 at 15 percent.

The figures do not include administrative and enforcement costs.

Discussion

Mary Schickling, a councilmember, asked: “I had a question about the impact on thee business. You mentioned cruise ships.”

Hart had earlier expressed concern that Disney Cruise Line might stop using Avalon, as a port-of-call, if the city permitted a cannabis storefront.

Schickling asked Hart about this point.

Hart apologized and said it was probably a bad example to use cruise ships.

Hart said that she was referring to people on a cruise, and not necessarily Disney Cruise ships.

Hart said that they refer to Catalina as the Island of Romance and if a cannabis business was booming, would this negatively impact these areas of the market? She said that it was a matter for consideration.

Schickling said Hart cited Santa Barbara. They have cruise ships, and they also have dispensaries.

Schickling said, “I found it interesting that you included this in the staff report.”

Mayor Marshall expressed her appreciation for the research.

Marshall asked, “But the report says that there is no way for it to get to Catalina. Why do we continue this conversation?”

Schickling replied, “Because I raised this issue.”

Schickling said, “I wanted to have the opportunity to speak to my fellow council members and the mayor as well as the community in order to determine the interest of getting it.”

She said that she believed if they were able to lay the foundation for bringing cannabis across the ocean, other people would be able to step forward and lead the program.

She said that the vote they held before was four years old. She said that a lot can change in four years.

Schickling’s main goal is to create a new tax revenue stream for Avalon.

“It won’t add cars. Schickling said that it will not be flooded with people.

Schickling stated that the housing market in the area will not be affected.

Schickling said, “I was hoping that we could amend the ordinance and lay the foundation for anyone who might be interested in tackling this hurdle and getting things started.”

Marshall said, “I would not recommend Front Street.”

Schickling: “I wanted to jump and see what people felt.”

David Maistros, the City Manager, said that he disagreed with the idea that recreational cannabis has no negative impact on a city. “I’ve heard from a variety of stakeholders, including business people and community members who saw this on the list and asked if it was going to happen,” Maistros stated.

“I do think that having cannabis stores on Front Street has an impact,” Maistros said. It has an impact on visitors who are family-friendly,” Maistros said.

According to Maistros cannabis could impact visitors who might not choose to visit the Island.

Maistros addressed the illegality in transporting recreational marijuana to Catalina. “It puts us in a difficult position as a city to say that we are going to legislate to allow a cannabis business here when we know they couldn’t get it here legally,” Maistros stated.

Schickling said, “They would need to come to us and ask for a licence. We could deny them because they don’t have any legal way to obtain it here.”

“Why would we want it?” Maistros asked.

Marshall asked, “Why bother?”

Schickling said, “It’s not enough to just lay the foundation to be ready.”

Marshall says that being prepared will be when the federal government reclassifies cannabis.

Hart said that they would have to legalize the use of adult drugs.

Marhsall stumbled. “It feels like there are so many ‘ifs’ but no timeframe… “

Hart said that the market in Long Beach was so robust and strong, she wasn’t certain if a sales tax of 15% (Avalon), was viable.

She said that even if an Avalon retailer sold $8,000,000 worth of cannabis, it would still be tied for the highest-grossing business in the city.

Hart said that the staff would be more than happy to conduct a further analysis, if this is the direction of council.

Schickling: “I hate to say it, but weed is already here.”

Schickling: “It is here, people are buying and smoking it.”

She said that in an era when fentanyl was out there, and you didn’t know what you were buying when you bought it, she felt much better about the possibility of the community and its guests being able to go to a licensed dispensary.

Schickling said, “If you are concerned about your children, consider getting a dispensary.”

Michael Ponce, a council member on the Island, said that the community has already been affected by addiction. “We already have drinking problems. Ponce said, “We don’t need another one.”

Yesenia De La Rosa, a councilmember, said that she understood what Schickling had to say. De La Rosa had a problem if the Coast Guard said it was illegal.

Marshall said that she believes the delivery service for medicinal cannabis is doing well.

Janey Hall said that she was tired of giving her money to Long Beach. She said that it was archaic for people to think that cannabis will not be legalized in the federal sense anytime soon.

Hall asked: “How many bars are there per capita?”

She said that on a cruise ship she smells cannabis. Hall said that cannabis is everywhere, because people are looking for places to smoke since they can’t smoke on the ship.

Marshall argued it would be cheaper for medical cannabis to be delivered in Avalon rather than on the mainland.

Hall said, “I don’t think I know anyone who doesn’t use it to sleep.”

Scott Campbell, City Attorney, provided legal perspective. Campbell said that Best Best & Krieger worked for Santa Barbara, Santa Ana and other cities that Avalon looked at.

“We found that the revenues for recreational cannabis are there.” Campbell says that the projections of what cities will actually take are not what you actually get.

He said, “We have problems in some cities where there are one or two legal establishments.”

He said that you have new establishments opening up all the time.

Campbell said, “We have a lot city staff running around.”

“You wouldn’t be having that problem with Avalon if only you had one [dispensary] Campbell said that people might not want to pay the same prices and taxes as they do for recreational cannabis in other cities.

Campbell said: “This is an issue of total local control.”

He said that there were some leakages with illegal cannabis as well as some law enforcement costs across all the cities Best Best & Krieger represent.

Marshall asked if anyone could be prohibited from having a commercial space in which you can go and smoke cannabis with proper ventilation, but not buy it.

Campbell said, “That’s exactly what they have in West Hollywood.”

Campbell said, “That’s an option.”

Schickling added: “I would like to point out that cannabis customers are a different kind of customer from what we see today.”

Schickling said that domestic violence, such as fights and knockdown-and-dragouts, is rare.

Schickling said, “We see a great deal of violence in this city from drunk people.”

We allow it daily. We encourage it. We just had a beer fest. Schickling said, “We have the Wine Festival.”

Schickling said that she would continue to look into whether the federal law could be changed. Schickling said, “But I didn’t want to beat a horse if I didn’t have the support of my council, my community, or my family, so I was hoping to hear more people.”

Yolanda said she was a bit confused.

“We are fine for medical?” She asked.

Marshall confirmed that medical marijuana is available.

Montano said brick and mortar was the current issue for recreational marijuana.

She said that most people who visit a brick-and-mortar to buy cannabis are there for medical reasons. She said that her grandson was battling cancer. She said that it took him five days to become addicted to the pain medication.

Montano said that her daughter spent one month and a half on the paperwork in order to get him approved for medical marijuana. He is now pain-free, he can eat and there is no dependency.

She used medical cannabis when she was undergoing chemotherapy.

She said that people are selling marijuana in the streets.

Montano stated that the Municipal Code does not allow tattoo shops.

“Well, they do it underground,” she said.

Maistros said that it is not the city’s responsibility to decide whether or not you can transport marijuana.

Montano replied: “I understand it, but I am just saying that Mary is just asking questions to see if there’s a chance.

Councilmember Lisa Lavelle stated that she had almost the same number of people for and against her.

She said that the challenge she faced was that the sales taxes rate is interesting when you consider the amount of sales required for recreational cannabis to be a viable option. Then, add the enforcement and regulation sides. Lavelle said that it doesn’t seem to be balancing out as it should.

Lavelle said that she would not be opposed to changing the ordinance, if the federal laws could be changed. However, until this happens, she doesn’t know whether it makes sense at the moment.

Marshall said that for the time being, medical cannabis can be delivered only to hotels.

Schickling asked Schickling why the ordinance only mentions medical delivery.

Schickling asked, “You can’t just have a medical storefront?”

Hart said that when the council developed the first ordinance, it did not want cannabis having a physical presence within the special commercial zone.

Ponce brought up an old vote on medical marijuana.

According to lavote.gov, Avalon voters rejected Measure X in 2016. The measure would have allowed for medical marijuana cultivation and sales with a 12% tax on transactions. According to lavote.gov, the measure would have allowed two medical marijuana dispensaries with a $10,000 licensing fee.

Marshall said that she did not think having a storefront will increase illegal activities.

Schickling thanked Hart’s research.

She said that she would pursue legal cannabis transport through federal waters.