- Posted by Erica Treeby
- On February 16, 2017
- breaking, California, cannabis, Cannabis License, Cannabis Permit, commercial cultivation, commercial medical cannabis, cultivation, dispensaries, manufacturing, MCRSA, Measure M, permit, Proposition 64, Proposition D, regulations, zoning ordinance
It’s only been only three months since California’s voters overwhelmingly decided to legalize recreational Cannabis, and now Los Angeles’s voters are being asked to make yet another Cannabis-related decision. On the upcoming March 7, 2017 ballot are two competing measures, which propose to regulate commercial Cannabis activity within the City of Los Angeles.
Measure M, entitled Cannabis Regulation After Citizen Input, Taxation and Enforcement, is a proposition by the City Council and Mayor. Measure N is a citizen-sponsored initiative, which was originally written by the UCBA Trade Association. Although the proponents of Measure N abandoned support for the measure and now support Measure M, Measure N will still appear on the ballot. In the city’s voter information pamphlet, the authors of Measure N urge voters to vote “yes” on Measure M.
If Approved, What Will Measure M Do?
Proposition M will empower the City Council and the Mayor to create a new regulatory framework for commercial Cannabis activity within the City of Los Angeles, after first obtaining input from the public. Proponents of Proposition M say that it will give residents a voice in crafting their city’s commercial Cannabis regulations.
The proposed law would allow the City Council and the Mayor to make decisions such as, the types of permits to offer; i.e., cultivation, manufacturing etc; locations where businesses can set up shop; the tax rate businesses will be required to pay; and how steep the penalties will be for violating the new laws. Importantly, Measure M will also allow the city to establish a permitting program in order to align with the requirements of the MCRSA (AB 243, AB 266, and SB 643). Currently, the City of Los Angeles is not issuing permits for Cannabis related businesses. And, because the proposed legislation applies to both medical and non-medical Cannabis, Measure M will also help pave the way for recreational marijuana retail outlets to set up shop before the State begins issuing licenses in January of 2018.
Finally, Measure M includes the establishment of new business taxes, effective January 1, 2018, including taxes of $100 per each $1,000 of gross receipts from Cannabis sales and $50 per each $1,000 of gross receipts from medical Cannabis sales; $10 per each $1,000 of gross receipts from Cannabis transportation, testing or research; and $20 per each $1,000 of gross receipts from Cannabis manufacturing, cultivation or other commercialization of Cannabis.
What About Proposition D?
In 2013, Los Angeles’ voters approved Proposition D, which limited the number of medical Cannabis dispensaries that could operate to 135, at a time when there were over 1,000 pot shops operating within the city. Proposition D does not require dispensaries to obtain a permit from the city in order to operate.
If approved, Measure M will require the City Council to pass an ordinance repealing Proposition D, effective January 1, 2018, at the latest. Existing dispensaries operating in compliance with Proposition D will be given priority in the permit application process established by the city.
If you are a registered voter in the City of Los Angeles, don’t forget to get out and vote on March 7, 2017!
Contact CannaBusinessLaw for expert assistance in compliance with Cannabis licensing, permitting and the application process relating to commercial Cannabis in California.