B
Blazing Oaks
- 18
- 13
Original article from the Willits news, by Kate Maxwell:
More than 200 people packed the Willits Community Center on November 5 for an educational event hosted by the Small Farmers Association, which focused on “Laws, Regulations, and Legalization,” and the range of different requirements for cannabis farmers and businesses’ hoping to come into compliance with several new regulations and permits approved this year.
Organized as a roundtable with eight different experts and informational tables for attendees to peruse, the event drew attendees from more than five different counties and covered both legal regulations and aspects of business management important for those trying to make the transition to the state’s newly regulated commercial medical cannabis industry. Such regulations include compliance with local laws, regional requirements such as the newly implemented north coast waterboard permit program, and state licensing requirements for cannabis farmers and businesses, a major shift for what has been a largely unregulated industry forbidding commercial cultivation under previous medical marijuana regulation Proposition 215 and 420.
“Things are really changing,” exclaimed one SFA volunteer to the crowd during the event, who received a certificate of appreciation and won one of several raffles with farming supplies and other goods supplied by local business sponsors. “Instead of getting arrested or harassed by the police,” she said, “I’m getting an award!”
LOCAL AND STATE LAWS
SFA’s Julia Carrera led the discussion on state and local regulations that cannabis cultivators and business owners need to be aware of. The Medical Marijuana Regulation and Safety Act signed by the governor in early October regulates commercial medical cannabis transations for the first time, and creates a dual-licensing requirement that all local and state laws must be followed to be considered in compliance, which goes into effect January 1, 2016, although licenses may not be available until January 1, 2018.
There are variety of different types of licenses that will be available including different sizes and types of cultivation licenses, of which only the largest size (yet to be determined) will be capped by number of licensees. However, utilizing the model based on the alcohol industry, limits are placed on combinations of licenses individuals may hold to prevent vertical integration in the industry, and cultivators must work with a limited number of distributors who will ensure standards for testing and other requirements are met before retail sales occur.
Many of the new standards and regulations will be established by the newly created Bureau of Medical Marijuana Regulation, and cultivators will be regulated under the California Department of Food and Agriculture. Regulators have said such specifics will be part of a public and stakeholder process and encouraged those in the industry to stay in touch with local and state agencies and representatives over the next two years to help shape policy and regulations.
In a handout entitled: “I’m a small farmer that wants to survive this transition: WHAT DO I DO?,” the SFA recommended small marijuana farmers begin with ensuring they are compliant with local regulations, which include city ordinances, county regulations, and regional requirements, and extensively document their current best practices. New regulations state those who can demonstrate that they have been in compliance by the first of the year will be given priority processing in the new application process. Farmers will also need to participate in a “seed-to-sale” tracking system yet to be established, although SFA encourages farmers to explore their options early, and businesses need certificates of sales or to declare income or pay taxes depending on Board of Equalization requirements currently in place today, though further specifics may be implemented.
The SFA and other local advocacy and farmers groups are encouraging locals to contact county representatives, as local laws will largely determine what is licensed locally. Currently, several cities in the county have specific ordinances concerning cultivation and business requirements, and Mendocino County still has the 9.31 “zip-tie” ordinance, with a 25 plant count. The 9.31 ordinance is being reexamined by the Ad Hoc Committee on Marijuana consisting of Supervisors Tom Woodhouse and John McCowan. The committee is expected to report back on changes to the ordinance in light of new state regulations by the end of this year. Humboldt County is currently considering a new cannabis ordinance and implementing a “Medical Marijuana Innovation Zone” in Arcata.
Counties currently have until March, 2016 to either adopt county policies or defer to state guidelines, although this deadline may be extended with “clean-up” legislation proposed by north coast Assemblyman Jim Wood. Wood is also proposing bills to enact excise taxes on medical marijuana to increase environmental and other regulatory funding (AB 1548), and to create a state banking system for cannabis businesses with California Board of Equalization member Fiona Ma (AB 1549).
In a recent forum held by the BOE, Assemblyman Mike Gipson explained he is proposing additional legislation which would give a tax amnesty for cannabis businesses to pay back taxes and and one which would remove the current 10 percent penalty on state fees such as property taxes paid in cash instead electronic transfers. Since federal drug scheduling has prevented banking in the industry, regulations to create a safer economic environment for what has been a largely cash market are a key part of the new commercial laws.
Representatives from Mendocino County’s Farm Bureau were at the event answering questions concerning the county’s “Right to Farm Ordinance,” which will now include cannabis cultivation as it has been reclassifed as agriculture under new state laws. Devon Jones and Frost Pauli encouraged local cultivators to be in touch with the county and state agriculture commissioner to help establish standards and categories to evaluate best practices and compliance as cannabis cultivation transitions to an agricultural framework.
One of the most popular tables was staffed by Kason Grady of the North Coast Regional Water Quality Control Board, which approved a cannabis cultivation permit this August. The NCRWQCB is currently accepting applications for enrollment in the tiered program and conducting inspections, and cultivators are expected to enroll by February 15, 2016. The program establishes best practices and requirements for cannabis cultivators in three tiers to protect water quality and is similar to a one being implemented in the central district.
The NCRWQCB is also in the process of certifying third party inspectors to enroll cultivators in the program and assist with evaluation, reporting requirements, and identify necessary improvements to parcels, which once approved will be posted on the agencies website and allow cultivators working with third parties to apply with reduced fees. All forms and requirements are currently available on the agency’s website where one can sign up for updates to the program. Cultivators will also be required to comply with other state water permits and rights requirements.
INITIATIVES
Representatives from two different initiatives being proposed for the 2016 ballot were also at the event, a small portion of the 20 initiatives currently filed with the state. Initiatives will have to collect enough signatures prior to being placed before voters next November, and range from those fully legalizing adult recreational use of marijuana to those focused on other aspects of the industry. However, the majority of them propose different regulatory structures than the recently passed MMRSA laws and some may overturn aspects of the commercial medical requirements currently being implemented.
At the forum, Lanette Davies presented the Compassionate and Sensible Access Act and the proposed “Patients Bill of Rights,” a constitutional initiative which would protect patients’ rights to medical cannabis in the state constitution. “We’re making it a human right in the state,” said Davies, explaining the initiative hoped to address concerns that access to medical marijuana would be impacted under recreational legalization initiatives. Davies said as a constitutional initiative the group would need to collect over 500,000 signatures, a higher amount than regulatory ones, and was implementing a campaign to help voters sign by mail and electronically, with more information available at sensibleaccess.org.
Another initiative represented was the California Cannabis Hemp Act, and representatives had traveled from Simi Valley to help educate local voters about their proposal, which would legalize marijuana and the production of hemp products across the state, as well as change regulations concerning patients’ access, caregiver and drug testing requirements, and “bars state or local aid to enforcement of federal marijuana laws.”
BEST BUSINESS PRACTICES
Local business and groups advocating for best practices were also represented at the forum to help residents get a taste of the world of commercial cannabis to come. Information about biodynamic cultivation and certification was available, as well as a discussion of business branding led by SFA member PolyKulture Farms. Loud Cannabis, an app designed by SFA members to help farmers market their products, as well as the Mendocino Group, a cannabis branding business also were on hand to advise and answer questions. Earthworm Soil Factory and AG420, two farmers’ supply companies, also had tables at the event.
More than 200 people packed the Willits Community Center on November 5 for an educational event hosted by the Small Farmers Association, which focused on “Laws, Regulations, and Legalization,” and the range of different requirements for cannabis farmers and businesses’ hoping to come into compliance with several new regulations and permits approved this year.
Organized as a roundtable with eight different experts and informational tables for attendees to peruse, the event drew attendees from more than five different counties and covered both legal regulations and aspects of business management important for those trying to make the transition to the state’s newly regulated commercial medical cannabis industry. Such regulations include compliance with local laws, regional requirements such as the newly implemented north coast waterboard permit program, and state licensing requirements for cannabis farmers and businesses, a major shift for what has been a largely unregulated industry forbidding commercial cultivation under previous medical marijuana regulation Proposition 215 and 420.
“Things are really changing,” exclaimed one SFA volunteer to the crowd during the event, who received a certificate of appreciation and won one of several raffles with farming supplies and other goods supplied by local business sponsors. “Instead of getting arrested or harassed by the police,” she said, “I’m getting an award!”
LOCAL AND STATE LAWS
SFA’s Julia Carrera led the discussion on state and local regulations that cannabis cultivators and business owners need to be aware of. The Medical Marijuana Regulation and Safety Act signed by the governor in early October regulates commercial medical cannabis transations for the first time, and creates a dual-licensing requirement that all local and state laws must be followed to be considered in compliance, which goes into effect January 1, 2016, although licenses may not be available until January 1, 2018.
There are variety of different types of licenses that will be available including different sizes and types of cultivation licenses, of which only the largest size (yet to be determined) will be capped by number of licensees. However, utilizing the model based on the alcohol industry, limits are placed on combinations of licenses individuals may hold to prevent vertical integration in the industry, and cultivators must work with a limited number of distributors who will ensure standards for testing and other requirements are met before retail sales occur.
Many of the new standards and regulations will be established by the newly created Bureau of Medical Marijuana Regulation, and cultivators will be regulated under the California Department of Food and Agriculture. Regulators have said such specifics will be part of a public and stakeholder process and encouraged those in the industry to stay in touch with local and state agencies and representatives over the next two years to help shape policy and regulations.
In a handout entitled: “I’m a small farmer that wants to survive this transition: WHAT DO I DO?,” the SFA recommended small marijuana farmers begin with ensuring they are compliant with local regulations, which include city ordinances, county regulations, and regional requirements, and extensively document their current best practices. New regulations state those who can demonstrate that they have been in compliance by the first of the year will be given priority processing in the new application process. Farmers will also need to participate in a “seed-to-sale” tracking system yet to be established, although SFA encourages farmers to explore their options early, and businesses need certificates of sales or to declare income or pay taxes depending on Board of Equalization requirements currently in place today, though further specifics may be implemented.
The SFA and other local advocacy and farmers groups are encouraging locals to contact county representatives, as local laws will largely determine what is licensed locally. Currently, several cities in the county have specific ordinances concerning cultivation and business requirements, and Mendocino County still has the 9.31 “zip-tie” ordinance, with a 25 plant count. The 9.31 ordinance is being reexamined by the Ad Hoc Committee on Marijuana consisting of Supervisors Tom Woodhouse and John McCowan. The committee is expected to report back on changes to the ordinance in light of new state regulations by the end of this year. Humboldt County is currently considering a new cannabis ordinance and implementing a “Medical Marijuana Innovation Zone” in Arcata.
Counties currently have until March, 2016 to either adopt county policies or defer to state guidelines, although this deadline may be extended with “clean-up” legislation proposed by north coast Assemblyman Jim Wood. Wood is also proposing bills to enact excise taxes on medical marijuana to increase environmental and other regulatory funding (AB 1548), and to create a state banking system for cannabis businesses with California Board of Equalization member Fiona Ma (AB 1549).
In a recent forum held by the BOE, Assemblyman Mike Gipson explained he is proposing additional legislation which would give a tax amnesty for cannabis businesses to pay back taxes and and one which would remove the current 10 percent penalty on state fees such as property taxes paid in cash instead electronic transfers. Since federal drug scheduling has prevented banking in the industry, regulations to create a safer economic environment for what has been a largely cash market are a key part of the new commercial laws.
Representatives from Mendocino County’s Farm Bureau were at the event answering questions concerning the county’s “Right to Farm Ordinance,” which will now include cannabis cultivation as it has been reclassifed as agriculture under new state laws. Devon Jones and Frost Pauli encouraged local cultivators to be in touch with the county and state agriculture commissioner to help establish standards and categories to evaluate best practices and compliance as cannabis cultivation transitions to an agricultural framework.
One of the most popular tables was staffed by Kason Grady of the North Coast Regional Water Quality Control Board, which approved a cannabis cultivation permit this August. The NCRWQCB is currently accepting applications for enrollment in the tiered program and conducting inspections, and cultivators are expected to enroll by February 15, 2016. The program establishes best practices and requirements for cannabis cultivators in three tiers to protect water quality and is similar to a one being implemented in the central district.
The NCRWQCB is also in the process of certifying third party inspectors to enroll cultivators in the program and assist with evaluation, reporting requirements, and identify necessary improvements to parcels, which once approved will be posted on the agencies website and allow cultivators working with third parties to apply with reduced fees. All forms and requirements are currently available on the agency’s website where one can sign up for updates to the program. Cultivators will also be required to comply with other state water permits and rights requirements.
INITIATIVES
Representatives from two different initiatives being proposed for the 2016 ballot were also at the event, a small portion of the 20 initiatives currently filed with the state. Initiatives will have to collect enough signatures prior to being placed before voters next November, and range from those fully legalizing adult recreational use of marijuana to those focused on other aspects of the industry. However, the majority of them propose different regulatory structures than the recently passed MMRSA laws and some may overturn aspects of the commercial medical requirements currently being implemented.
At the forum, Lanette Davies presented the Compassionate and Sensible Access Act and the proposed “Patients Bill of Rights,” a constitutional initiative which would protect patients’ rights to medical cannabis in the state constitution. “We’re making it a human right in the state,” said Davies, explaining the initiative hoped to address concerns that access to medical marijuana would be impacted under recreational legalization initiatives. Davies said as a constitutional initiative the group would need to collect over 500,000 signatures, a higher amount than regulatory ones, and was implementing a campaign to help voters sign by mail and electronically, with more information available at sensibleaccess.org.
Another initiative represented was the California Cannabis Hemp Act, and representatives had traveled from Simi Valley to help educate local voters about their proposal, which would legalize marijuana and the production of hemp products across the state, as well as change regulations concerning patients’ access, caregiver and drug testing requirements, and “bars state or local aid to enforcement of federal marijuana laws.”
BEST BUSINESS PRACTICES
Local business and groups advocating for best practices were also represented at the forum to help residents get a taste of the world of commercial cannabis to come. Information about biodynamic cultivation and certification was available, as well as a discussion of business branding led by SFA member PolyKulture Farms. Loud Cannabis, an app designed by SFA members to help farmers market their products, as well as the Mendocino Group, a cannabis branding business also were on hand to advise and answer questions. Earthworm Soil Factory and AG420, two farmers’ supply companies, also had tables at the event.
