Contributed by: R.E. Graswich
The great California cannabis freeze has begun to thaw.
Cities and counties across the state are slowly accepting the reality that marijuana isn't going away, despite rushing more than 250 local anti-cannabis ordinances onto the books last winter, after Gov. Brown signed state legislation to regulate the product.
From Nevada County to San Diego, reluctant local authorities are now exploring ways to create a regulated and taxable cannabis market in their communities, often by letting voters make the final decision.
But the process of crafting local marijuana policy is anything but smooth.
In Costa Mesa, voters will find at least three local marijuana initiatives on their November ballots. The Orange County community has argued for years about regulating dispensaries. Now the city council intends to let residents decide for themselves in the general election.
Two Costa Mesa ballot measures were qualified by residents who hope to update the city's ordinance that bans dispensaries. One initiative would allow eight dispensaries. Another would permit four dispensaries operated as cooperatives, with a 6 percent tax added to the retail sales.
The city council wants to place its own cannabis ordinance on the ballot -- a proposal that doesn't specify any number for dispensaries but addresses testing, taxing and other regulations.
Costa Mesa has banned cannabis dispensaries since 2005, but many sites have operated illegally. A federal law enforcement task force closed several illicit businesses in the city in 2012.
Nevada County is also backpedaling on its marijuana cultivation ban. The rural Northern California County had become a popular location for outdoor grows, which prompted Sheriff Keith Royal in January to seek a total prohibition on outdoor cultivation.
The county board of supervisors approved the sheriff's proposal on the first read, provoking howls of protests from community members. The board added a non-binding resolution to support its ban on the June ballot, claiming the county would rescind the prohibition if voters failed to support the cultivation prohibition.
That's exactly what happened.
A 58-percent majority rejected the county's ban, prompting board chairman Dan Miller to schedule meetings with cannabis industry stakeholders. Miller continued to stir controversy by refusing to allow news reporters into the meetings despite protests from the stakeholders and public.
"We can't be honest" in discussions if media are present, Miller said.
The city of Sacramento went to the June ballot to establish a 5 percent business tax on commercial cannabis cultivation. The revenue was earmarked for youth services, such as after-school programs.
But the initiative failed to earn support from the required 66.6 percent of voters, winning just 65 percent. The tax proposal's sponsor, city councilman Jay Schenirer, is exploring a return to the ballot for a second try at the marijuana business tax in November.
Sacramento already taxes retail sales at medical marijuana dispensaries.
San Diego city councilman Mark Kersey wants voters to decide in November on a tax that would range from 8 to 15 percent on retail sales of medical cannabis.
"With the whole landscape changing, now is probably a good time to have this conversation," Kersey said.
A number of California cities have tax ordinances on retail sales at dispensaries, including Los Angeles, San Jose, Oakland, Berkeley, Long Beach, Palm Springs and Sacramento, with taxes ranging from 6 to 15 percent. The state also taxes retail cannabis sales.
The local ordinances will find a crowded November ballot. A statewide initiative to allow adults over 21 to purchase cannabis without a medical recommendation is expected to qualify for the general election ballot.
The Adult Use of Marijuana Act would add a 15 percent state tax on the product, meaning customers could end up paying fees upwards of 25 percent beyond the retail price, thanks to state and local taxes.
Ten other proposed statewide ballot measures involving adult-use marijuana proposed for November failed to qualify by June 17, the state Secretary of State's office reported.