August 2015 | News Nuggets

BAY AREA

CCVH proposes Humboldt land use
ordinance

The California Cannabis Voice-Humboldt (CCVH) proposed a new
land use ordinance that would strictly regulate cannabis cultivation within
Humboldt County, if approved. The ordinance would address a number of issues,
including the regulation of cannabis through every stage, from planting,
cultivating, harvesting, processing, packaging, transportation, distribution
and sales. If the ordinance is passed, cannabis will be allowed to be grown in
any area where agriculture use is permitted (which includes the Timber
Production Zone). This means that county residents would also be able to grow
cannabis (in areas up to 600 square feet) anywhere that it’s legal to grow
trees or flowers, or anywhere that cows, chickens, etc. can legally be raised.
Anyone growing cannabis in less than 600 feet of allotted space would not be
required to have a permit, and the ordinance would dictate anyone growing over
that amount for commercial purposes would need to obtain the proper permit. The
CCVH plans to give the details of their ordinance to the Humboldt County Board
of Supervisors as a ballot initiative with hopes that they will adopt it.

Vallejo compromises
with advocates for better cannabis collective ordinance

A special meeting was held by the Vallejo City Council for a
medical cannabis collective ordinance in flux. A referendum was submitted by
cannabis activists and patients in May that aimed to replace the city’s own
ordinance, which would limit the number of collectives to only four. The
advocates believe that this is was harmful towards already established
collectives that responsibly paid their Measure C tax. The special meeting
yielded a 6-1 vote for the council to repeal the suspend ordinance, followed by
“grandfathering in” certain collectives. This will allow any collectives who
were both open before the establishment of Measure C and routinely paid their
taxes to gain immunity from prosecution. It also requires that a 1,000 foot
buffer zone be in place for all collectives. The council estimates that these
rules will permit 12 collectives to operate and will generate $450,000 in
Measure C revenue for this current fiscal year.

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COLORADO

Denver sees increase in
cannabis-related electricity

Colorado’s electricity usage has jumped dramatically over
the past few years, due to an increase in population as well as the uprising of
cannabis. A reported 1.2 percent of electricity use in Denver has risen
annually, with 45 percent of that coming from medical cannabis grow facilities,
according to The Denver Post. In an attempt to conserve energy
and still maintain a healthy amount of electricity use, Denver has announced
that it aims to cap its usage levels in comparison to numbers captured in 2012.
The city wants to ensure that there is a good balance between conserving energy
and healthy industrial growth. Cannabis growth requires major electricity for
lighting, air-conditioning and dehumidifiers, and innovative companies are
seeking a solution to keep cannabis growing, as well as switch to more energy
efficient methods of growth. Some companies will soon begin testing LED lamps
for cannabis grows, in an attempt to reduce energy use without harming the
plants. Currently, Denver does not have any immediate plans to regulate energy,
especially when it comes to cannabis. This month, The White House will unveil
its Clean Power Plan, and those details may or may not effect a change in
Denver’s energy consumption.

Colorado Springs sees an
increase in medical cannabis revenue and decrease in crime

As time passes and the Colorado cannabis industry grows
exponentially, new stats in crime and revenue are surfacing. Colorado Springs
has seen a positive move in terms of increased profits and decreased crime of
its medical cannabis industry (recreational cannabis is not sold within city
limits). According to records from 2010, there were 303 licensed medical
cannabis businesses in the city, and during that year, 42 attempted burglaries
were committed, according to The Gazette. As of
June of this year, there are 152 licensed businesses and only four attempted
crimes against those businesses were recorded. Some attribute this sway of
crime to the increased security measures, such as locks and bars on windows,
but many also see it as a sign that the industry is getting stronger and
smarter about their businesses. With high success and low crime rate, it’s
predicted that El Paso County’s tax revenue will reach $2 million in revenue by
the end of the year. 

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LOS ANGELES

Cannabis testing begins in Palm
Springs

Palm Springs is the first city in California to require lab
testing on medical cannabis. The city has gradually approved of five
collectives to operate within its limits, and all of them are now required to
utilize testing from SC Labs, which is based in Santa Cruz. A contract was
struck between SC Labs and the city to search for anything dangerous for humans
to consume, such as mold. “There’s some really scary stuff that can happen when
you are curing, which is when you cut down the plant . . . all kinds of
contaminants can get in there,” commented Palm Springs Safe Access (PSSA)
President Robert Van Roo. PSSA even adds nitrogen to their air-tight
containers, in order to exclude the presence of oxygen, which can cause the
growth of unhealthy molds and other materials. Palm Springs implemented a tax
when medical cannabis patients purchase their medicine, and that money is
directly contributed to laboratory testing

Malibu City Council
rescinds original votes about approving a new collective

Malibu was on the right track to approving a new collective
to operate within the city back in March, when the Malibu City Council voted
5-0 to possibly change the Malibu Municipal Code that would allow the sale of
both liquor and cannabis to be sold on the same lot, according to The Malibu Times. In May, the council
again voted unanimously to further change the wording to allow for “adults to
kind of make their own choices,” followed by a proposal to ratify new wording
in June. In July however, the city council voted 5-0 and denied the approval of
a conditional use permit application for a collective that would operate next
door to a liquor store. The council members state that they’ve simply become
uncomfortable with the two businesses operating side by side, claiming and
disregarding their earlier votes towards approval over the past few months. It
appears that many people who appeared to speak out against the opening of
another collective were from a local competitor that opened a collective in the
city in April.

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MICHIGAN

Pittsfield Charter
Township mulling over medical cannabis

The Board of Trustees in Pittsfield Charter Township is
currently gathering information regarding the regulation of provisioning
centers (previously referred to as dispensaries). Currently, Pittsfield
Township has no zoning ordinances for provisioning centers, although one has
already opened without permission from the township, and its presence is one of
the main reasons that the city seeks to establish an ordinance on the matter. Following
that provisioning center’s opening, Pittsfield Township approved a six-month
moratorium until they can finalize plans for provisioning centers in the
future. Pittsfield Township plans to draft two ordinances, one that details
where dispensaries can be located, and another that addresses how they regulate
the operation of each business. For now, Pittsfield Township is closely
watching the success of neighboring cities, such as Ypsilanti’s cannabis
regulations, as well as future state legislation for guidance. Progress
regarding medical cannabis in Pittsfield Township is expected to be discussed
by the planning commission or it will circle back to the board in late-summer
or early fall.

Portage residents to
vote on decriminalizing cannabis

A cannabis advocate group based in Portage has submitted the
necessary 1,930 signatures in order to place a charter amendment on the
upcoming November ballot. The amendment would keep the city from enacting any
ordinance that would make it a crime to possess, transfer or transport an ounce
or less of cannabis on private property for anyone over the age of 21, which is
reportedly similar to charter amendments that were passed last year in Hazel
Park and Oak Park, according to Mlive.com.
Unfortunately, even if the amendment is passed, it does not restrict law
enforcement from ticketing people for small amounts of cannabis, due to state
laws. The group behind the petition, called the Committee for a Safer Portage
is still supportive of keeping law enforcement focused on more harmful
substances, such as alcohol or heroin. If the charter amendment is passed, it
would make Portage the 15th city to decriminalize cannabis in Michigan.

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OREGON

Failed house bill
celebrated by hemp growers

Many hemp growers are celebrating House Bill 2668, which
failed to pass in Salem. The bill would have dampened the industry by limiting
the number of approved growers to 13—essentially freezing the number until
March 2017. The bill would have also revoked the original 13 growers’ licenses
and give the Department of Agriculture the ability to re-issue them (as long as
they were located far enough from schools and other places where children are
located). The bill, which was presented by Representative Peter Buckley,
believed that halting hemp growers growth would allow the state to focus on the
regulating of medical cannabis, and the with the number of growers kept small,
would allow the state to easily manage and ensure that hemp growers follow
state regulations properly. Now that HB-2668 is a thing of the past, growers
can focus on gathering the state’s first legal hemp harvest.

OR legislation
approves early cannabis sales program

The approved bill of SB-460 is a temporary program that will
allow the “early” sale of recreational cannabis in Oregon. The bill has already
moved on to Governor Kate Brown’s desk and if signed, it would mark the
quickest turnaround time that a state will have begun legal recreational
cannabis sales, which would become effective on October 1. According to The Oregonian, it took almost an entire
year for both Colorado and Washington to begin retail sales after it was
approved by legislation. Backers of the bill strongly advised that it was a
necessary step towards keeping new users from purchasing cannabis from black
market sellers, instead of legal dispensaries. Under a separate measure,
HB-2041, a 25 percent tax on cannabis will be put into effect, however it would
not begin under January 4, 2015, allowing for a three-month, tax-free shopping
period.

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SAN DIEGO

SD Planning Commission request
workshop to discuss ordinance changes

San Diego approved its strict medical cannabis ordinance
back in April 2014 and is now in its 16-month journey of carefully choosing
collectives from its many divided districts. Although the process is
progressing slower than anticipated, a few members of the Planning Commission
have mulled over adding a few potential changes to the ordinance. The main
focus, according to Commissioner Theresa Quiroz, was a request for a public
workshop that would discuss how to deal with collectives who completed the
necessary requirements for consideration, but were not the best or first
choice. The workshop would address topics such as how to weigh input from
community planning groups and adding a better definition for “minor-oriented”
facilities, as well as giving applicants a three-year window to open their
businesses after they have been approved. It would also discuss a possible
change in the approval process, giving further consideration to avoid approving
the first applicants, rather than an applicant that applied later on but might
be superior due to many factors (i.e. location or size).

Cannabis banking
continues to be an issue for SD

Applicants who want to open a collective in San Diego have
overcome many hurdles, only to encounter more after trying to work with a
banking system that refuses to support them. The city is finally ramping up
speed in approving cannabis collective applicants, now with nine approved—only
one of which, A Green Alternative (AGA), is currently open for business,
according to Fox 5 San Diego. More will be open in the coming months, however
even AGA is currently unable to protect its earnings. Despite a steady stream
of customers and an estimated $2 million to make within its first year of
sales, banks aren’t approving loans for the business, nor will they create
company bank accounts or credit cards due to the federally illegal status of
cannabis, “I’m running a legal business and I’m treated as though I’m not,”
said AGA co-founder David Blair. A promising cannabis banking bill was recently
proposed that would help assist and help cannabis businesses protect their
money, but as of this writing, the amendment has only passed through the
Senate.

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WASHINGTON

New cannabis measure
approved in WA House

A new tax structure has been established through the newly
passed House Bill 2136, which will implement a 37 percent excise tax instead of
the current, three-tiered tax structure. Previously, there was a 25 percent tax
on producers, processors and retailers, according to Komo News. Now, the 37 percent excise tax (which acts as a sales
tax) does not require access points to report it as income. The measure will
allow cities and counties to reduce the buffer limitation which most access
points must be located away from places where children frequent, such public
parks, libraries, arcades, etc. (although the 1,000 feet limit still applies to
schools). Instead of the statewide 1,000 feet requirement, the buffer can be
lowered to as little as 100 feet. The measure also ban cannabis vending
machines, cannabis clubs and drive-thrus. The measure was approved in the House
by a 59-38 vote and has moved on to the Senate for further consideration.

Federal
government gives money to analyze cannabis in WA sewage

A unique study from the University of Puget Sound received
approval and money from the Federal government to examine sewage samples from
two different Washington cities over the course of three years. The National
Institute of Health is giving the university, and Associate Chemistry Professor
Dan Burgard, $120,000 to operate the study, which aims to view how per-capita
cannabis use has changed after first going legal last July. On a more detailed
level, scientists would analyze the wastewater samples for levels of
metabolites that are produced when the body processes cannabis, according to Associated
Press. It’s also expected that the study will reveal if the opening
of access points in the area have caused an increase in the whole community’s
cannabis use, with details on which days residents use cannabis over others.
The two cities being studied will remain anonymous until the study is complete.

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NATIONAL

Hawaii begins
licensing medical cannabis dispensaries

Hawaiian Governor David Ige signed a monumental bill for the
island state that will allow it to begin licensing medical cannabis dispensaries,
as well as ban any discrimination toward medical patients. Under the bill, the
state is allowed to have eight licensed dispensaries, which are slated to begin
selling in November 2016. Potential applicants for such businesses must have
lived in Hawaii for at least five years, and are required to have at least $1
million to their name. Although the bill is officially signed, patients are
expecting to wait a few months at least for the state to draft rules regarding
licensing and regulation, “The bill sets a timeline. We will make a good faith
effort to create a fair process that will help people most in need,” stated
Governor Ige. Hawaii is home to an approximate 13,000 medical cannabis
patients, who previously have either grown their own plants or purchased medicine
from the black market.

INTERNATIONAL

Vancouver is the
first Canadian city to regulate medical cannabis

It took the Vancouver City Council four nights of deliberation
before arriving at an 8-3 vote for an ordinance that would regulate medical cannabis
and help control the market. Many dispensaries have opened up in large numbers
over the past few years, with an estimated 100 dispensaries open in Vancouver
alone, according to The Huffington Post. “These new rules will give the
city the tools we need to properly manage dispensaries, while enabling those
who provide a vital medical service. This is a common sense approach to a
complicated issue, which has been made worse by the lack of action from the federal
government,” stated Vancouver Mayor Gregor Robertson regarding the approval.
Following this ruling, dispensaries are required to be located at least 1,056
feet away from places where children frequent, remain off limits to anyone 18
or younger, and all employees are subject to yearly criminal record searches.
Dispensaries are also required to pay an annual licensing fee of $30,000
Canadian dollars, unless they qualify as a non-profit compassion club.