San Joaquin County preparing for legal cannabis
STOCKTON — The sale of cannabis for adult recreational use soon will be legal in California, and cities around San Joaquin County have responded accordingly in the waning months of 2017.
From Lodi to Tracy to Escalon, cities and the county itself are preparing for imminent legal recreational cannabis commerce by ensuring that their current local ordinances extend indefinitely. In so doing, local governments will maintain control over their commercial cannabis destinies and supersede state law, which kicks in Jan. 1. It can get very confusing, though. In Stockton, for instance, two medical-cannabis dispensaries already are operating legally and the city is accepting applications for up to two more legal dispensaries and a maximum of four legal indoor medical cannabis cultivation sites.
Yet, earlier this month, the Stockton City Council also adopted a ban on all new medical and non-medical cannabis businesses. City officials say they expect to have Stockton’s new regulations for the era of legal recreational marijuana in place sometime in 2018.
In some other cities in San Joaquin County, the expectation is that marijuana commerce — both medical and recreational — will remain completely illegal years into the future.
Speaking on behalf of the city of Manteca in response to a media inquiry earlier this month, Police Sergeant Michael Aguilar said he does not believe his city will allow any form of cannabis commerce anytime soon.
Why the confusion?
California voters approved the Adult Use of Marijuana act a year ago, legalizing recreational cannabis use for people 21 and older. Jan. 1, 2018, looms especially large because it’s the moment when regulated commercial cannabis businesses selling recreational marijuana for adult use actually become legal in the state.
But it was only this month that the state released its rules for legal cannabis commerce. California will begin accepting applications for temporary licenses for distributors, growers and sellers on Jan. 2.
Tracy wants to hear from residents
The city of Tracy has banned cannabis commerce, but perhaps not forever.
“We’ve been directed by council to do community outreach,” Finance Director Karin Schnaider said. “We have a survey online to tell the council what they want.”
Further discussion of the matter is expected at Tracy’s council meeting scheduled for Dec. 5.
Cash cow
Ultimately, the state projects that cannabis will generate up to $1 billion a year in new revenue.
A year ago when Stockton voters approved the four medical dispensaries and four medical cultivators, the city projected new tax revenue of about $1 million annually once all sites are up and running.
City Councilwoman Christina Fugazi said she is hoping cannabis testing and manufacturing businesses will mean even more new dollars for Stockton’s economy.
“I hope that we get to that point where this is an industry that will create more jobs, higher tech-related jobs in Stockton,” she said.
To this point, the legal sale of medical marijuana in California has been a strictly cash business. Not surprisingly, the accountant side of Councilwoman Susan Lenz voiced concern earlier this month that cash businesses dealing in marijuana may be ripe for fiscal chicanery.
Local attorney Zach Drivon, whose practice focuses on cannabis reform, sought to allay Lenz’s apprehension at this month’s council meeting. Drivon said those conducting legal cannabis commerce will have too much at stake to be caught skimming funds off the top.
“It’s assumed on the industry side that unwavering regulatory compliance is a no-brainer because you stand to lose your license,” Drivon said. “You become subject to exorbitant fines and criminal prosecution in some cases if you step outside the lines.”
As far as taking the cash out of cannabis — and involving the banking and credit-card systems — the state is working on it but it’s an issue that is complex and much bigger than California.