A plan that would have forced Oakland’s cannabis businesses to hand over 25 percent of their profits has been scrapped by the city following a contentious four-hour debate Monday night. The city will also revise the controversial cannabis equity program that called for setting aside half of the city’s pot permits for ex-cons and a handful of East Oakland residents.
This is the issue that had Councilwoman Desley Brooks up in arms at a meeting of the Rules Committee last month. She, Larry Reid and Noel Gallo voted to keep the program as is Monday, while Dan Kalb, Annie Campbell Washington, Rebecca Kaplan and Abel Guillen voted to change it. Councilwoman Lynette Gibson McElhaney was not present for the vote.
Although it’s hard to believe now, the equity program was approved unanimously by the city council just six months ago. It didn’t take long for members to turn on it. Critics of the program, which was sponsored by Brooks, said it would decimate the city’s marijuana industry. They also point out that it primarily benefited people in her district or that of her council ally, Larry Reid.
With Monday’s vote, the city administrator will be tasked with writing new laws for Oakland’s pot permits. The council has also requested an analysis from the city’s Department of Race and Equality.
The clock is ticking. Under state law, all cannabis businesses must have a city permit and state license by January of 2018. Many other cities already have their systems in place, while Oakland’s councilmembers continue the back and forth. If this continues, some pot businesses say they will have no choice but to leave.