REGULATION OF CANNABIS – FOLLOW-UP #1

CITY COUNCIL DIRECTION

  • PURSUE REGULATION OF RECREATIONAL AND MEDICINAL CANNABIS USE
    • No Ballot Measure to Regulate
  • RETURN IN 2 MONTHS TO DISCUSS THE FOLLOWING QUESTIONS
    • Schedule
    • Lottery vs. Merit Based Qualification Process
      • Can/Should We Regulate Land/Lease Value Market Forces?
    • Staffing
    • Expected Litigation

COUNCIL QUESTIONS – TOO EARLY TO ANSWER

STAFFING & LITIGATION – Both Will Depend Upon . . . . . . .

  • Qualification Process
  • Number Permitted
  • Complexity of Regulations

STAFFING – Dedicated Personnel & One Primary Point of Contact (Consistency & Expertise)

  • Planner(s)
  • Code Enforcement Officer(s)
  • Attorney
  • Paralegal
  • Building & Fire Inspector(s)
  • Finance Tax/Customer Service Rep(s)
  • 3 Police Officers (Detective for County Task Force)
  • PD Analyst

Consultants Can Be Used for Some (e.g. legal, auditors etc.) and Team Leader – Primary Point of Contact

ORDINANCE DEVELOPMENT (6-9 MONTHS)

  • Factors: Public Input & Council Hearings
  • Efficiency Assist: Ad Hoc Council Committee
  • APPLICATION DEVELOPMENT (1 MONTH)
  • APPLICATION INTAKE (1-2 MONTHS)
  • APPLICATION EVAL & APPROVAL (1-3 MONTHS)
    • Efficiency Assist: Administrative Approval Process

BUILD OUT AND OPENING 1-2 YEARS

BIG PICTURE ISSUES

  1. TYPES OF BUSINESSES TO ALL0W?
  2. WHERE TO ALLOW?
  3. DO WE LIMIT THE NUMBER AND – IF SO – HOW TO CALCULATE?
  4. LOTTERY VS. MERIT-BASED QUALIFICATION?
  5. ADMINISTRATIVE OR LEGISLATIVE APPROVAL PROCESS?
  6. TAXATION BALLOT MEASURE?
  7. AD HOC COMMITTEE?
  • TYPES OF BUSINESSES TO ALLOW
    • Cultivation
      • Indoor Only?
      • Market in Corona?
      • Higher Secondary Issues?
      • Complexity of Regulation
  • Manufacturing
  • Distribution
  • Testing Labs
  • Retailers (Storefront)
  • Retailers (Non-Storefront)

WHERE TO ALLOW?

  • M – Manufacturing Zones?
  • C2 & C3 – Restricted and General Commercial Zones?
  • Specific Plans with General Commercial Zones?
  • Others?

DO WE LIMIT THE NUMBER AND – IF SO – HOW TO CALCULATE?

  • If Limited, it is Typically Retail
  • Some Argue for 1 Retail for Every 10K-15K Population
  • BUT . . . . Are Limits Needed with Zoning & Distance Requirements?
  • Let Qualification Criteria & Market Dictate?

LOTTERY VS. MERIT-BASED QUALIFICATION

  • Merit = More Control
  • Merit = Less Litigation (IF . . . . # Not Limited/Fair/Non-Political)
  • Lottery = More Open
  • Limit Qualification Process
    • Zoning Issues
    • Public Health, Safety & Welfare Issues
    • Not Market Issues (e.g. Land/Lease Value Market Forces)

ADMINISTRATIVE OR LEGISLATIVE APPROVAL PROCESS?

  • Admin = Efficiency
  • Admin = Less Political = Less Litigation Issues
  • Admin = Concerns Addressed in Ordinance & Qualification Criteria
  • Leg = Each Business Publicly Examined

TAXATION BALLOT MEASURE?

  • Less Risky Than Contractual Collection
  • Better Collection Powers
  • Contractual May Be Necessary – Ballot Measure Timing?

AD HOC COMMITTEE?

  • Recommended for Time Efficiency
  • Routine Input for Staff
  • Can Increase Public Input
  • Ordinance Including All Issues Would Return to Full Council
    • Zoning & Distance Requirements
    • Merit Based Qualification Criteria
    • Rating Process
    • Suggested Tax/Fee Rates