GOOD MORNING THANK YOU VERY MUCH
FOR JOINING US HERE FOR OUR
INFORMATIONAL HEARINGS OUT WITH
ASSEMBLY MEMBERS AND
CHAIRPERSONS CABALLERO. AND
MISTER WOOD.
AS WE ALL KNOW AS OF JANUARY
ONE TWO THOUSAND AND EIGHTEEN
CALIFORNIA IS NOW THE LARGEST
REGULATED CANNABIS MARKET IN THE
WORLD.
INSIDE VOICES.
AND SO CERTAINLY THERE ARE A
NUMBER OF DIFFERENT CHALLENGES
WITH RESPECT TO ABOUT MARKET
THAT WE HAVE AT HAND THE PURPOSE
OF THIS INFORMATIONAL HEARING IS
TO HEAR. FROM A NUMBER OF
ENTITIES AND INDIVIDUALS WHO
HAVE A ROLE IN THIS NOW
REGULATED MARKETPLACE AND HOW WE
CAN ADDRESS.
THE FUNDAMENTAL ISSUES AS WE
MOVE FORWARD AND SO WITH THAT
SAID I WANT TO TURN IT OVER TO
ASSEMBLY MEMBER AND CHAIRWOMAN
COMPARE FOR. ADDITIONAL OPENING
REMARKS.
THANK YOU VERY MUCH.
MISTER CHAIR I'M.
THANK YOU VERY MUCH FOR BEING
HERE TODAY.
THIS IS A REALLY IMPORTANT
FOLLOW UP HEARING THAT WE
STARTED THE REGULATIONS AND I'M
ON JANUARY FIRST OF THIS YEAR
AND THIS GIVES US AN OPPORTUNITY
TO LOOK AT. ON WHAT'S HAPPENING
HOT WET WITH THE ROLLOUT HAS
BEEN WITH THE CHALLENGES AND THE
OPPORTUNITIES ARE.
SO THAT WE GET IT RIGHT AND SO
I REALLY APPRECIATE YOUR COMING
TODAY AND I THINK.
WE'RE GOING TO HAVE A PRETTY
GOOD HEARING SO WITHOUT FURTHER
ADO WILL WILL MOVE ON AND AND
START LISTENING FROM THE
WITNESSES LISTENING TO THE
WITNESS.
THANK YOU.
DOCTOR WHAT GREAT WITH THANK YOU
VERY MUCH AND APPRECIATE HER
BODY BEING HERE TODAY I WILL
KEEP MY REMARKS VERY BRIEF.
VERY MUCH INTERESTED IN THE
PROGRESS HAS BEEN MADE.
AN INCREDIBLY.
HUGE TASK OF ROLLING THIS OUT
IN A REALLY REALLY SHORT AMOUNT
OF TIME SO I'M VERY INTERESTED
TO HEAR WHAT THE CHALLENGES ARE
BEING FACED AND OBVIOUSLY WE
HAVE SOME QUESTIONS. OF FOLLOW
UP QUESTIONS BASED ON THINGS
THAT WE HAVE HEARD.
IN OUR DISTRICTS SO THANK YOU
VERY MUCH AND I LOOK FOR TO
BEGIN IN THE HEARING.
THANK YOU VERY MUCH TO THEIR
RESPECTIVE CHAIRS UP SO FIRST
PANEL IF YOU WOULD A KIND THE
JOIN US APPEAR ON THE DICE.
WE HAVE BENJAMIN GLICKMAN THE
DEPUTY ATTORNEY GENERAL OF IN
THE OFFICE OF THE. ATTORNEY
GENERAL. SHALL WE HAVE WORN
STANLEY COMMISSIONER FOR THE
CALIFORNIA HIGHWAY PATROL.
RICH DESMOND CALIFORNIA HIGHWAY
PATROL DEAN GRIFFEY LOW DIRECTOR
OF THE PARTMINER CONSUMER
AFFAIRS. LAURIE AJAX CHIEF THE
BUREAU OF CANNABIS CONTROL.
RICHARD PARROTT.
DIRECTOR OF CANNABIS CAL
CANNABIS DEPARTMENT OF FOOD AND
AGRICULTURE AND DOCTOR KAREN
SMITH.
DIRECTOR AND STATE PUBLIC HEALTH
OFFICER WITH THE DEPARTMENT OF
PUBLIC HEALTH THANK YOU SO VERY
MUCH.
FOR JOINING US HERE AND NOW THAT
WE HAVE A FULL AGENDA.
MOVING FORWARD AND IF WE COULD
KINDLY ASK OUR WITNESSES TO KEEP
YOUR TESTIMONY UNDER FIVE
MINUTES SO THAT WE CAN HAVE
ROBUST DIALOGUE AND
CONVERSATION.
WITH OUR COMMITTEE MEMBERS AND
PANELIST HERE ON THE PANEL SO
WITH THAT SAID.
MR GLICKMAN UP IF YOU WOULD
KINDLY BEGIN WHENEVER YOU'RE
READY.
SURE.
CHAIRS LOW WOODEN CABALLERO AND
COMMITTEE MEMBERS THANK YOU FOR
HOLDING THIS IMPORTANT HEARING
TODAY AND ALLOWING ME TO TESTIFY
ON BEHALF OF THE DEPARTMENT OF
JUSTICE.
MY NAME IS BEN GLICKMAN I'M A
DEPUTY ATTORNEY GENERAL IN THE
GOVERNMENT LAW SECTION WHERE I
CHAIR A DEPARTMENT OF JUSTICE
WORKING GROUP.
THAT HAS REPRESENTATIVES FROM
THE DEPARTMENTS VARIOUS SECTIONS
THAT HANDLE CANNABIS RELATED
MATTERS I ALSO WORK WITH OUR
SISTER AGENCIES.
OTHER STATES AND VARIOUS OTHER
STAKEHOLDERS TO COORDINATE
CANNABIS MATTERS FOR THE
DEPARTMENT.
WITH ME TODAY IS MELANIE FONT
HAS RAINER SPECIAL ASSISTANT TO
THE ATTORNEY GENERAL AND SPECIAL
AGENT IN CHARGE LOUIS LOPEZ WHO
EN MASSE TO. COME UP HERE FOR
CERTAIN QUESTIONS I I MAY NOT BE
ABLE TO ANSWER.
AS THE COMMITTEES ARE AWARE OUR
OFFICE PLAYS AN IMPORTANT ROLE
IN CANNABIS ENFORCEMENT AND
IMPLEMENTATION AT THE STATE
LEVEL.
FIRST THE ATTORNEY GENERAL
SERVICES THE STATE'S CHIEF LAW
ENFORCEMENT OFFICER.
THROUGH THIS ROLE IN AS
RESOURCES PERMIT. WE ANTICIPATE
WORKING CLOSELY WITH LOCAL
OFFICIALS AND FEDERAL LAW
ENFORCEMENT TO ENSURE STRICT
COMPLIANCE WITH STATE LAW.
AND TO POLICE THAT LEGAL MARKET.
FURTHER THROUGH OUR CLIENT
REPRESENTATION WE ARE WORKING
WITH THE THREE LICENSING
AGENCIES.
TO HELP ENSURE THAT CALIFORNIA'S
LAWS AND REGULATIONS GOVERNING
CANNABIS ARE ENFORCED.
FINALLY IN LIGHT OF RECENT
DEVELOPMENTS AT THE FEDERAL
LEVEL WE HAVE BEEN IN CONTACT
WITH THE CALIFORNIA'S FOR
FEDERAL PROSECUTORS. IN ARE
WORKING CLOSELY WITH A
BIPARTISAN GROUP OF ATTORNEYS
GENERALS AND OTHER STATES THAT
CURRENTLY REGULATE CANNABIS.
INCREASED RESOURCES FOR THE
DEPARTMENT OF JUSTICE WOULD
SUPPLEMENT AND STRENGTHEN THESE
IMPORTANT EFFORTS.
I AS THE COMMITTEES ARE AWARE
SENATE BILL NINETY FOUR CREATED
A UNIFIED LICENSING SCHEME FOR
BOTH RECREATIONAL AND MEDICINAL
CANNABIS.
AND LICENSE THINGS ARE LICENSES
ARE CURRENTLY ISSUED BY THREE
STATE AGENCIES THAT ARE HERE
TODAY. ALL LET THEM SPEAK ABOUT
THEIR RESPECTIVE ROLES.
THE DEPARTMENT OF JUSTICE'S
PRIMARY ROLE IS REALLY TWO FOLD.
AS MENTIONED ONE OF OUR MAIN
ROLES IS WORKING WITH THE
LICENSING AGENCIES IN
REPRESENTATION AS MATTERS ARISE
IN PARTICULAR WE ANTICIPATE A
SUBSTANTIAL INCREASE IN
LICENSING RELATED DISPUTES. AND
TO SUPPORT THAT INCREASED
WORKLOAD WE HAVE ESTABLISHED A
NEW CANNABIS CONTROL SECTION AT
THE DEPARTMENT. WHICH WILL
PROVIDE CONSISTENT AND
COORDINATED REPRESENTATION OF
THE LICENSING AGENCIES ON A
STATEWIDE BASIS.
IN ADDITION WE ANTICIPATE THAT
AS THE CHIEF LAW ENFORCEMENT
AGENCY OF THE STATE WE
ANTICIPATE INCREASED WORKLOAD
RELATED TO POLICING THE ILLEGAL
MARKET.
THE CALIFORNIA DEPARTMENT OF
JUSTICE BELIEVES THAT VIGOROUS
ENFORCEMENT OF CALIFORNIA'S LAWS
AGAINST ILLEGAL CANNABIS
ACTIVITY IS THE BEST WAY TO
ENSURE A STRONG REGULATED
CANNABIS MARKET.
TO THAT END OUR OFFICE IS
ACTIVELY WORKING WITH FEDERAL
STATE AND LOCAL PARTNERS TO
COORDINATE AND SUPPORT LAW
ENFORCEMENT EFFORTS ACROSS THE
STATE. AGAIN ONE WAY FOR THE
LEGISLATURE TO SUPPORT THESE
IMPORTANT EFFORTS HISSED THROUGH
INCREASED RESOURCES FOR THE
DEPARTMENT. THE COMMITTEES ASKED
THE DEPARTMENT TO SPEAK IN
PARTICULAR ABOUT RECENT
DEVELOPMENTS AT THE FEDERAL
LEVEL.
AS SINCE TWO THOUSAND THIRTEEN
FEDERAL PROSECUTORS HAD HAD
OPERATED PURSUANT TO THE COAL
MEMORANDUM.
THIS MEMORANDUM GENERALLY
ADVISED UNITED STATES ATTORNEYS
NOT TO PROSECUTE INDIVIDUALS OR
BUSINESSES THAT WERE ACTING IN
COMPLIANCE WITH STATE CANNABIS
LAWS. PROVIDED THAT THEIR
ACTIVITIES DID NOT RUN AFOUL OF
OTHER FEDERAL LAW ENFORCEMENT
PRIORITIES.
NOT WITHSTANDING THE SKIES
HOWEVER CANNABIS ALWAYS REMAINED
ILLEGAL UNDER FEDERAL LAW AND
FEDERAL PROSECUTORS ALWAYS
RETAIN DISCRETION TO PROSECUTE
CANNABIS CRIMES.
HOWEVER CONSISTENT WITH THE IT
IT LAW ENFORCEMENT PRIORITY SET
FORTH IN THE COAL MEMO.
US ATTORNEYS NATIONWIDE HAD
GENERALLY FOCUS THEIR EFFORTS ON
MAJOR CRIMES AND OTHER FEDERAL
LAW ENFORCEMENT PRIORITIES SUCH
AS CARTEL ACTIVITY.
ENVIRONMENTAL CRIMES ILLEGAL
GROWS ON FEDERAL LANDS.
IN ADDITION SINCE TWO THOUSAND
FOURTEEN CONGRESS HAS PROTECTED
STATES RIGHTS TO OVERSEE
MEDICINAL CANNABIS.
THROUGH THE ROHRBACHER FAR AND
ROHRBACHER BLUMENAUER
APPROPRIATIONS AMENDMENT.
THESE AMENDMENTS PREVENT THE
UNITED STATES DEPARTMENT OF
JUSTICE FROM USING FEDERAL
MONEY.
TO PREVENT STATES FROM
IMPLEMENTING MEDICINAL MARIJUANA
PROGRAMS.
HOWEVER AS THE COMMITTEES ARE
AWARE IN EARLY JANUARY ATTORNEY
GENERAL SESSIONS RESCINDED THE
CALL MEMORANDUM AND RELATED
GUIDANCE.
IN ITS PLACE ATTORNEY JUST
GENERAL SESSIONS DIRECTED US
ATTORNEYS TO EXERCISE THEIR
PROSECUTORIAL DISCRETION FOR
CANNABIS CRIMES CONSISTENT WITH
LONG STANDING GENERAL GUIDANCE
THAT REQUIRES THESE PROSECUTORS
TO WEIGH ALL RELEVANT
CONSIDERATIONS.
IN DETERMINING LAW ENFORCEMENT
PRIORITIES AND RESOURCE
ALLOCATION.
ATTORNEY GENERAL SESSIONS
ACTIONS HOWEVER DID NOT ALTER
THE ENFORCEMENT LIMITATIONS
IMPOSED BY THE ROHRBACHER
BLUMENAUER AMENDMENTS.
CONGRESS MOST RECENTLY EXTENDED
THAT PROHIBITION THROUGH MARCH
TWENTY THIRD IN THE LATEST
CONTINUING RESOLUTION.
THE IMPACT IF ANY OF ATTORNEY
GENERAL SESSIONS RECENT ACTIONS
WILL TURN ON THE DECISIONS OF
THE STATE'S FOR UNITED STATES
ATTORNEYS.
IMMEDIATELY AFTER THE CALL MEMOS
RECESSION ATTORNEY GENERAL
SERWIS REACHED OUT TO ALL FOUR
US ATTORNEYS TO DISCUSS.
CANNABIS ENFORCEMENT IN
CALIFORNIA.
THE US ATTORNEY'S AT EACH AGREED
TO A MEETING AND WE HOPE THAT
THIS MEETING WILL BE SCHEDULED
IN THE COMING WEEKS.
OUR GOALS IN THAT MEETING ARE
THREEFOLD.
FIRST TO EDUCATE THE FEDERAL
PROSECUTORS ABOUT CALIFORNIA'S
ROBUST REGULATORY SCHEME. SECOND
TO URGE THEM TO CONTINUE THEIR
LONGSTANDING PRACTICES OF
PRIORITIZING ILLEGAL DRUG
ACTIVITY CARTEL ACTIVITY ILLEGAL
GROWS AN ENVIRONMENTAL CRIMES.
AND FINALLY.
TO IDENTIFY OPPORTUNITIES FOR
COOPERATION IN LAW ENFORCEMENT
FOR EXAMPLE POLICING INTERSTATE
EXPORTS MONITORING ILLEGAL CROWS
PUBLIC AND LANDS CRIMES IN
CARTEL ACTIVITY.
LASTLY THE DEPARTMENT IS WORKING
CLOSELY WITH THE NATIONAL
ASSOCIATION OF ATTORNEYS
GENERALS CANNABIS WORKGROUP.
THIS WORK GROUP IS A BIT IN
PLACE FOR SEVERAL YEARS AND HAS
TAKEN AN INCREASED ROLE WAS MORE
AND MORE STATES HAVE ENTERED THE
REGULATED CANNABIS MARKET. THE
GROUP FOCUSES ON FEDERAL POLICY
CHANGES AND PROTECTIONS FOR
CALIFORNIA AND OTHER STATES
REGULATING CANNABIS.
FOR EXAMPLE LAST MONTH ATTORNEY
GENERAL TO SARAH AND EIGHTEEN
OTHER ATTORNEYS GENERALS SENT A
LETTER TO CONGRESS URGING ACTION
TO BRING CANNABIS RELATED
COMMERCE INTO THE BANKING
SYSTEM.
A CRITICAL ISSUE FOR THE STATE.
IN CONCLUSION THE DEPARTMENT OF
JUSTICE IS CLOSELY MONITORING
THE IMPLEMENTATION OF THE
STATE'S REGULATED CANNABIS
MARKETS AS WELL AS LEGAL
DEVELOPMENTS AT THE FEDERAL
LEVEL. WE ARE WORKING CLOSELY
WITH OTHER STATES WITH A SHARED
INTEREST IN PREVENTING FEDERAL
DISRUPTION OF STATE LAW IN THE
WILL OF THE VOTERS.
AND THE DEPARTMENT IS EXAMINING
HOW BEST TO WORK WITH LOCAL
OFFICIALS AND FEDERAL LAW
ENFORCEMENT TO ENSURE STRICT
COMPLIANCE WITH CALIFORNIA LAW.
HOWEVER THERE'S NO WAY AROUND IT
SUCCESSFULLY COMBATING THE
STATE'S ILLEGAL CANNABIS MARKETS
CANNOT HAPPEN WITH THIS
SIGNIFICANT WITHOUT SIGNIFICANT
RESOURCE.
THE ATTORNEY GENERAL IN THE
DEPARTMENT OF JUSTICE STAND
READY TO DEFEND THE LOS OF OUR
STATE AND ITS CITIZENS AGAINST
ANY AND ALL THREATS THANK YOU
VERY MUCH.
ASSEMBLY.
GOOD MORNING CHAIR LOW CHAIR
CAFE HERE OWN CHAIR WOULD AND.
COMMITTEE MEMBERS APPRECIATE
BEING INVITED TO PARTICIPATE IN
THIS IMPORTANT HEARING.
THE CALIFORNIA AVERAGE JOE DOES
NOT HAVE A SPITZ SPECIFIC
REGULATORY ROLE RELATING TO
CANNABIS.
RECREATIONAL USE AND THE NEW
REGULATORY SYSTEM IS ALREADY
HAVING AN IMPACT. ON LAW
ENFORCEMENT AGENCIES THROUGHOUT
CALIFORNIA AND THAT'LL CONTINUE
TO EXPAND AS THE INDUSTRY GROWS.
ALTHOUGH MANY OF THE IMPACTS
WILL BE UNIQUE.
TO LOCAL LAW ENFORCEMENT
AGENCIES THERE ARE SOME VERY
CRUCIAL CHALLENGES.
THAT WILL BE FELT DIRECTLY BY
THE CALIFORNIA HIGHWAY PATROL.
ENFORCING OUR CANNABIS LAWS ON
CALIFORNIA ROADWAYS AND
COMBATING AN INCREASE.
IN IMPAIR DRIVING AS OTHER
STATES HAVE EXPERIENCE AFTER
RECREATIONAL LEGALIZATION.
AS A DEPARTMENT THAT MAKES OVER
TWO MILLION ENFORCEMENT CONTACTS
EACH YEAR WE ARE ON THE FRONT
LINES OF FACING THESE
CHALLENGES.
SINCE THE PASSAGE OF PROPOSITION
SIXTY FOUR WE WORK CLOSELY WITH
THERE'S
STATE AGENCY PARTNERS HERE AT
THIS TABLE TO MAKE SURE WE
UNDERSTAND THE NEW LICENSING
STRUCTURE.
THIS UNDERSTANDING IS CRUCIAL SO
WE CAN SHARE OUR OFFICERS TAKE
APPROPRIATE ACTION WHEN THEY
ENCOUNTERED CANNABIS ON OUR
HIGHWAYS.
IN FACT WE RECENTLY DISTRIBUTED
SEVERAL EDUCATIONAL BULLETINS TO
OUR FIELD PERSONNEL ABOUT THE
REGULATORY STRUCTURE.
WE HAVE ALSO PROVIDED REGULAR
INPUT TO THE TO THE BUREAU OF
CANNABIS CONTROL ANOTHER STATE.
REGULATORS ABOUT INFORMATION LAW
ENFORCEMENT WILL NEED TO VERIFY
THAT CANNABIS THE ENCOUNTERS
BEING TRANSPORTED LEGALLY.
THE BUREAU OF CANNABIS CONTROL
HAS AN ONLINE PORTAL. THAT WE
CAN EXPECT SAYS AND RECENTLY
ESTABLISHED A DEDICATED TWENTY
FOUR HOUR HOTLINE FOR LAW
ENFORCEMENT TO USE TO VERIFY.
LICENSE AND MANIFEST
INFORMATION.
THE CHALLENGE WE EXPECT AT IN
THE NEW REGULATORY ENVIRONMENT
WILL BE DETERMINING WHEN A
LICENSING VIOLATION CROSSES THE
LINE INTO UNLAWFUL POSSESSION.
AND ALSO DISTRIBUTION.
THIS IS UNIQUE CHALLENGE.
FOR THE CHP BECAUSE WE OPERATE
IN ALL FIFTY COUNTIES HERE IN
CALIFORNIA SO WE DIRECTED OUR
HUNDRED AND THREE AREA
COMMANDERS THROUGHOUT THE STATE
TO MEET WITH THE LOCAL DISTRICT
ATTORNEYS TO DISCUSS THE ISSUE.
ANOTHER IMPORTANT ISSUE WE HAVE
BEEN DISCUSSING IS OUR
INVOLVEMENT IN COMBATING BLACK
MARKET CANNABIS.
BOTH LOCALLY AND AS TRANSPORTED
ACROSS JURISDICTIONAL BOUNDARIES
ON THE ROADWAYS.
RICK WE RECOGNIZE THAT
CALIFORNIA LEGAL CANNABIS
INDUSTRY TO FUNCTION IN FLOURISH
IS IMPORTANT AND LAW ENFORCEMENT
FOCUS ON LEGAL OPERATORS.
WE ARE ALWAYS READY TO ASSIST
OUR LOCAL AND STATE LAW
ENFORCEMENT PARTNERS TO
CRACKDOWN ON ILLEGAL ACTIVITY.
AND WE WILL CONTINUE TAKE A
FOURSOME ACTION AGAINST ILLEGAL
OPERATORS WE ENCOUNTER DIRECTLY
ON THE ROAD WITH HIS.
AND IT THIS TIME I TURN IT OVER
TO YOUR AND MY LEGISLATIVE
LIAISON ASSISTANT CHIEF RICH
DESMOND. AND HILL DISCUSS IMPAIR
DRIVING.
GOOD MORNING AND THANK YOU OFFER
MAKING ROOM FOR ME AT THE TABLE
UNCERTAIN WHAT I THINK YOU'RE
HERE COMMITTEE STAFF.
THEY'VE BEEN VERY HELPFUL TO US
AS WE PREPARE FOR THE TESTIMONY
TODAY. I'VE I'VE COME TO THE
COMMITTEE BEFORE A TEST FOR A
LITTLE BIT ABOUT THE IMPAIR
DRIVING CHALLENGES THAT THEY
WERE FACING THE CHP.
AND AS YOU AS YOU ALL KNOW THIS
IS SOMETHING THAT'S VERY
PERSONAL TO OUR AGENCY WE
ACTUALLY JUST LOST AN OFFICER ON
CHRISTMAS EVE AS A RESULT OF OF
SOMEONE WHO IS IMPAIRED.
I ON THE INFLUENCE OF ALCOHOL
AND CANNABIS COMBINED.
SO IT'S AN ISSUE WE TAKE VERY
SERIOUSLY THE TRAFFIC SAFETY
PERSPECTIVE AND CERTAINLY
PERSONALLY BECAUSE THE LOSS OF
OF OUR FELLOW OFFICERS WE
EXPERIENCED.
AS WE DISCUSSED BEFORE AND I'VE
HAD SEVERAL DISCUSSIONS WITH
WITH MANY OF YOU INDIVIDUALLY
ABOUT THE CHALLENGES THE DO YOU
AIDID CHALLENGES AND I USED TO.
THE ACRONYM DO YOU ID DRIVING
UNDER THE INFLUENCE OF DRUGS
CHALLENGES WITH CANNABIS.
CANNABIS IS IS IS NOT LIKE
ALCOHOL IT.
IS NOT ABSORBED AND IT DOESN'T
DISSIPATE IN YOUR BODY THE SAME
WAY ALCOHOL DOES.
THAT'S INHERENT CHALLENGE FROM
THE PERSPECTIVE OF WORD WE
DETERMINE WHERE IMPAIRMENT IS
AND TRY TO CORRELATE THAT WITH
SOME KIND LEVEL WITH CANNABIS.
I GET ASKED FREE FREQUENTLY
ABOUT.
WELL WHY DOESN'T
THE CHP SUPPORT SOME KIND OF
THRESHOLD LEVEL FOR CANNABIS
LIKE WE DO WITH ALCOHOL WE OF
THE.
WAIT BA SEE STANDARD FOR
ALCOHOL THE TRUTH IS CANNABIS IT
DEPENDING ON WHETHER YOU'RE A A.
INFREQUENT USER A CHRONIC USER
YOU MAY HAVE VARYING LEVELS IN
YOUR SYSTEM OF THE ADULT IN
NINETY EIGHT SEE THAT'S THE IN
IMPAIRING FEATURE OF CANNABIS.
YOU MAY HAVE VARYING LEVELS AND
THERE'S NO PLACE THAT WE CAN
PINPOINT IT CORRELATE WITH
IMPAIRMENT IF THAT MAKES SENSE.
YOU THINK IT'S VERY INTERESTING
WHEN I HAVE THE DISCUSSIONS
ABOUT A A THRESHOLD LEVEL FOR.
CANNABIS IMPAIRMENT IS THAT ON
THE ONE SIDE THE THE DRUG
RECOGNITION EXPERT COMMUNITY.
IS VERY CONCERNED THAT ANY
THRESHOLD LEVEL MIGHT BE TOO
HIGH IN OTHER WORDS. IF IF IF A
FIVE NANOGRAM LEVEL FERENC.
FOR INSTANCE IS ESTABLISHED
THERE MAY BE A LOT OF PEOPLE WHO
ARE IMPAIRED WELL BELOW THAT
LEVEL.
ON THE OTHER HAND THERE'S A LOT
OF SCIENTIFIC.
DISCUSSIONS ABOUT.
IF YOU ESTABLISH FIVE NANOGRAMS
SOME PEOPLE MAY NOT BE IMPAIRED
UNTIL WELL ABOVE THAT THAT THAT
AMOUNT AND AGAIN THAT IS ALL
BECAUSE OF THE. COMPLEXITY OF
THIS OF THIS.
OF CANNABIS AND THE INABILITY
TO CORRELATED TO ALCOHOL CENTER
BIG CHALLENGE ON THE DO YOU ID
FRONT FOR US.
ANOTHER BIG CHALLENGE IS.
IT'S IT'S VERY DIFFICULT TO
MEASURE MARIJUANA SO I. I PULL
SOMEONE OVER AND I SUSPECT HIM
OF BEING UNDER THE INFLUENCE AND
MAYBE THEY HAVE THERE'S EVIDENCE
THAT THEY HAVE CONSUMED.
CANNABIS RECENTLY.
.
THE IMPAIRING ASPECTS OF
CANNABIS THAT DELTA NINETY EIGHT
C. LEAVES YOUR SYSTEM VERY
QUICKLY SO IT'S VERY DIFFICULT
TO TO MEASURE THAT IMPAIRING
LEVEL CANNABIS.
I CHALLENGE AT SOMEWHAT RELATED
TO THAT IS THAT WE DON'T IN LAW
FOR SOME WE DON'T HAVE A DEVICE.
IN THE FIELD FOR OFFICERS TO BE
ABLE TO MEASURE.
CANNABIS LEVELS IN YOUR SYSTEM
MUCH LIKE WHAT RIGHT NOW YOU'VE
ALL SEEN THESE THESE PAST WE
CALL THEM HOUSE DEVICES THEIR
PRELIMINARY ALCOHOL SCREENING
DEVICES THAT THAT WE CAN USE AS
A FIELD SOBRIETY TESTS IN THE
FIELD. THERE IS NO.
SIMILAR DEVICE TO MEASURE
RECENT.
CONSUMPTION OF CANNABIS THAT
THAT'S ANOTHER CHALLENGE FOR LAW
ENFORCEMENT.
AND YOU COMBINE THESE WITH AN
INDUSTRY THAT IS CERTAINLY GONNA
BE MARKETING CANNABIS DIFFERENT
IN DIFFERENT WAYS SHAPES AND
FORMS AND DIFFERENT
CONCENTRATIONS ALL OF THESE
CHALLENGES BECOME I THINK.
EVEN EVEN HARDER TO HANDLE.
THE GOOD NEWS IS THAT
PROPOSITION SIXTY FOUR I'VE HAD
SOME SPECIFIC PROVISIONS TO GET
OUT THIS IMPAIR DRIVING ISSUE.
ALLOCATES THREE MILLION
ANNUALLY TO THE CALIFORNIA
HIGHWAY PATROL TO.
STUDY BEST PRACTICES AND
PROTOCOLS FOR BOTH DETECTING AND
APPREHENDING IN PROSECUTING
IMPAIRED DRIVERS.
THAT THAT MONEY WILL START
KICKING IN IN THE EIGHTEEN
NINETEEN FISCAL YEAR AND WERE IN
THE PROCESS RIGHT NOW DEVELOPING
A PLAN ON WHERE TO SPEND THAT
MONEY. IN EXISTING RESEARCH
EFFORT THAT'S GOING ON RIGHT NOW
IS WITH THE UNIVERSITY OF
CALIFORNIA SAN DIEGO IS ACTUALLY
DOING A STUDY RIGHT NOW TO
DETERMINE.
WHAT IS THE BEST WAY FOR AN
OFFICER ON THE SIDE OF THE ROAD
TO DETECT WHETHER SOMEONE IS
IMPAIRED ON OF THE INFLUENCE OF
CANNABIS AND DRUGS? BECAUSE FOR
FOR MANY MANY YEARS THE FOCUS
FOR DOZEN OFFICER LIKE ME WAS
NOT SPECIALLY TRAINED AS A DRUG
RECOGNITION EXPERT.
TO FOCUS ON ALCOHOL WHEN YOU DO
A BETTER JOB IN DETECTING A DRUG
PARA.
ANOTHER ASPECT OF OF.
PROPOSITION SIXTY FOUR IS IT
ALLOCATES A PORTION OF THE TAX
REVENUE.
FOR DO YOU AYE RELATED TRAINING.
EDUCATION AND ENFORCEMENT NOT
JUST FOR THE HIGHWAY PATROL'S
BUT.
IN THE FORM OF GRANTS TO LOCAL
LAW ENFORCEMENT AGENCIES AND
NONPROFIT ORGANIZATIONS.
AND AND THAT'S GOOD THERE'S
THERE'S A LOT OF MONEY SET ASIDE
FOR THAT THAT MONEY WILL NOT
KICK IN I BELIEVE UNTIL NINETEEN
TWENTY FISCAL YEAR.
AT THE HIGHWAY PATROL WE'RE NOT
WAITING FOR THESE THE FUNDING
EFFORTS TO KICK IN AS A LOT
THINGS WERE DOING NET RIGHT NOW
SOMEONE A RELAY THAT YOU VERY
QUICKLY.
WE'VE RESTRUCTURED INTERNALLY
IN OUR DEPARTMENT AND WE'VE
CREATED AND WE'VE DEDICATED DISH
NOBODY'S INTERNALLY FOR IMPAIRED
DRIVING SECTIONS WE CAN PLACE
APPROPRIATE EMPHASIS ON THIS NEW
ISSUE. AND ON THE ADMINISTRATION
OF THESE PROPOSITION SIXTY FOUR
FUNDS.
WE ARE IN THE PROCESS OF
DEVELOPING A.
A NEW WAY TO CAPTURE BETTER
DATA FROM FROM.
COLLISIONS FOR IMPAIRED DRIVING.
RIGHT NOW THERE THERE IS NO
CONSISTENT WAY THAT LAW OFFERS
NAY SHE'S REPORT DATA RELATED TO
IMPAIR DRIVING SO INTERNALLY TO
SEE IF YOU WERE CHANGES AND
THINGS TO DO A BETTER JOB
INTERNALLY.
AS THE STATE WIDE DRUG
RECOGNITION EXPERTS.
COORDINATOR WE TRAIN A MAJORITY
OF THE DRUG RECOGNITION EXPERTS
IN THE STATE AND THAT IS THAT
THE GOLD STANDARD RIGHT NOW FOR
FOR IDENTIFYING IN CANNABIS
IMPAIRED DRIVERS OR DRUG
IMPAIRED DRIVERS.
LAST YEAR THE LEGISLATURE AND
GOVERNOR BROWN APPROVED A
PROVISION IN S. B. NINETY FOUR
TO ALLOCATE THREE MILLION
DOLLARS TO THE CHP TO TRY TO GET
MORE DRUG RECOGNITION EXPERTS
INTO THE SYSTEM.
THE GOOD NEWS IS SINCE THAT
FUNDING HAS HAS STARTED WE'VE
TRAINED TO HUNT A PRICE WE TUNER
TWENTY THREE MORE. DODD DRUG
RECOGNITION RECOGNITION EXPERTS
IN THE STATE WHICH IS GOOD WE'RE
MAKING PROGRESS. IT'S NOT GOING
TO BE A PANACEA WHEN IT COMES TO
IMPAIR DRIVING BUT IT IS IS
CERTAINLY IS A STEP IN THE RIGHT
DIRECTION.
WE ARE TRAINING ALL OF OUR
UNIFORMED FIELD OFFICERS AND
SERGEANTS TO BE OUT TO GET
ADVANCE ROADSIDE IMPAIRED DRIVER
ENFORCEMENT. THAT'S ONE STEP
ABOVE WHAT.
OFFICERS RECEIVING THE ACADEMY.
AND WE OF COURSE PARTICIPATE
WITH OUR STAKEHOLDERS NOT ONLY
AT O. T. S. IN THERE BLUEPRINT.
PROJECT BUT ALSO THE STRATEGIC
HIGHWAY SAFETY PLAN IMPAIRED
DRIVING CHALLENGE AREA AM AND TO
MISTER STANLEY ALSO CHAIRS AREA
A TASK FORCE THAT WAS CREATED BY
THE LEGISLATURE. AND.
THE IDEA OF THE TASK FORCE IS
TO IDENTIFY BEST PRACTICES WERE
DO YOU IDEA EDUCATION DETECTION
APPREHENSION PROSECUTION.
THE GOOD THING ABOUT THAT TASK
FORCES INCLUDES A DIVERSE GROUP
OF REPRESENT IS NOT ONLY FROM
LAW ENFORCEMENT PROSECUTORS
CRIME LABS BUT ALSO THE CANNABIS
INDUSTRY. SCROTAL AND SOCIAL
JUSTICE ORGANIZATIONS AND ALSO
REGULATORY STAKEHOLDERS.
THE SECOND MEETING IS ACTUALLY
YA NEXT WEEK FOR THAT TASK
FORCE.
WHAT WE'RE SEEING IN IN
CALIFORNIA'S A MINUTES IT'S
REALLY TOO EARLY TO KNOW WHAT'S
GONNA HAPPEN HERE BUT WE CAN
LOOK AT COLORADO WASHINGTON?
A COLORADO.
SINCE LEGAL IS A HERB AND A BIT
FROM.
TWENTY THIRTEEN TO TWENTY
FIFTEEN THE NUMBER OF DRIVERS
INVOLVED IN FATAL CRASHES
TESTING POSITIVE FOR MARIJUANA
ROSE BY EIGHTY EIGHT PERCENT.
NOW THAT DOESN'T DEFINITIVELY
SAY HOW MANY THOSE DRIVERS WERE
IMPAIRED BY CANNABIS BUT IT SAYS
A LOT MORE PEOPLE WERE GETTING
KILLED ON THE ROADWAYS IN
COLORADO HAD CANNABIS IN THEIR
SYSTEM MAYOR ONE IN THEIR
SYSTEM.
IN WASHINGTON THE NUMBER OF
ANNUAL TRAFFIC FATALITIES
INVOLVING A MARIJUANA IMPAIRED
DRIVER HAS NEARLY DOUBLED.
FROM THE THREE YEARS PRECEDING
LEGALIZATION THROUGH TWENTY
SIXTEEN
SO WE ANTICIPATE THE SAME
AFFECTING CALIFORNIA.
AND.
AND AND I THINK PROPOSITION
SIXTY FOUR PROVIDES US WITH A
LOT OF TOOLS WERE DOING A LOT OF
THINGS IN THE INNER.
AND AGAIN THANK YOU FOR INVITING
US HERE TODAY AND WE'RE HAPPY TO
ANSWER ANY QUESTIONS OR OR WAIT
UNTIL THE END OF THE.
PANEL PRESENTATION.
THANK YOU MUCH
FEEL.
THANK YOU.
YOUR LOVE DOCTOR WOULD.
CHAIRMAN GABRIELLE COMMITTEE
MEMBERS STAFF.
IT'S A PLEASURE TO BE HERE
BEFORE YOU TODAY TO DISCUSS.
HUB. IN DC IS ROLE WITH WORKING
WITH THE PARTNERS TOWARDS A
STRONG REGULATORY FRAMEWORK.
BRIEF OVERVIEW OF FIRE MY
REMARKS TODAY LIKE TO TAKE THE
OPPORTUNITY. TO.
MENTION THE ROLE THAT THE
DEPARTMENT HAS HAD IN ASSISTING
THE BUREAU OF CANNABIS CONTROL.
WITH THE IMPLEMENTATION OF THE
MEDICINAL AN ADULT USE CANNABIS
REGULATION AND SAFETY ACT.
I'D YOU'RE VERY AWARE THREE
STATE AGENCIES HAVE BEEN ASKED
TO HAS BEEN TASKED WITH
LICENSING THE MEDICINAL AND
DON'T USE OF CANNABIS INDUSTRY.
THOSE BEING THE DEPARTMENT OF
FOOD OF.
FOOD AND AGRICULTURE DEPARTMENT
OF PUBLIC HEALTH AND OF COURSE
THE BUREAU OF CANNABIS CONTROL
WHICH IS UNDER THE DEPARTMENT
CONSISTS CONSUMER AFFAIRS.
BUT UP THE DEPARTMENT CONSUMER
OF AFFAIRS RESPONSIBLE FOR
OVERSEEING AND PROVIDING SUPPORT
TO THE BUREAU. SAID THE BUREAU
CAN FOCUS ON ITS REGULATORY
MISSION. AND ENGAGE THE INDUSTRY
WHILE THE DEPARTMENT HELPS
NAVIGATE THROUGH THE PROCESS
SEASON NUANCES.
OF STATE GOVERNMENT.
IN THIS ROLE MY TEAM AND I
REGULARLY MEET WITH THE BUREAU
OF KEEP UP CABS CONTROL TO JUST
TO DISCUSS EXISTING PROJECTS.
OBJECTIVES AND GENERAL THINGS I
MEAN NEED THEY MAY NEED FROM THE
DEPARTMENT.
THEY MADE FROM FROM THE
DEPARTMENT STAGE STATE AGENCIES
AND OTHERS.
THE DEPARTMENT PROVIDES GUIDANCE
ON SPECIFIC POLICY.
RELATED TO REGULATIONS AND LAW
STRATEGIZING AFFECTED GUIDANCE.
PARDON ME STRATEGY AND EFFECTIVE
STAKEHOLDER AND PUBLIC OUTREACH.
PROVIDING LEGAL INPUT IN
PERSPECTIVE AND PLANNING AND
COORDINATING FOR UPCOMING EVENTS
IN HEARINGS.
I WOULD BE REMISS IF I DIDN'T
ALSO MENTIONED THERE IS A ROLE
SPECIFIC TO THE DEPARTMENT
RELATED TO ENFORCEMENT ACTIONS
IN THAT. OUR DIVISION OUR
DIVISION INVESTIGATION WHEN
NEEDED WHEN EGREGIOUS CASES
ARISE WORK DIRECTLY WITH THE
BUREAU FOR ENFORCEMENT ACTIONS.
THE DEPARTMENT ALSO HELPS THE
BUREAU WITH ITS BUDGET AND
FISCAL MATTERS.
EXPEDITED HIRING NEEDS
GENERAL PROCUREMENT FOR THINGS
LIKE VEHICLES EQUIPMENT.
IT'S NEW FOR SYSTEM NEW FACILITY
IN RANCHO CORDOVA AND OTHER
SATELLITE LOCATIONS.
AS WELL AS ITS IT PROCUREMENT
FOR THE BUREAU FOR THE BUREAU'S
IT SYSTEMS.
COMPUTERS PHONES AND MANY OTHER
THINGS.
FOR ME OF MANY SPIN ENJOYABLE
FOR ME TO SEE THIS ISSUE EVOLVE
OVER THE TIME OF AS MANY OF YOU
AS SOME OF YOU MAY KNOW. I HAD
THE OPPORTUNITY TO WORK IS STAFF
WITHOUT ONE OF THE LEAD AUTHORS
HAVE WON THE FIRST ITERATIONS OF
THIS BILL. DISTANCE
SO BE NOW ON THE IMPLEMENTATION
OF THIS IS BEEN NO VERY
INTERESTING FOR ME PERSONALLY
PROFESSIONALLY.
THANKS AGAIN FOR ALLOWING ME
THE OPPORTUNITY TO PROVIDE THESE
BRIEF REMARKS I TO WELCOME OF
THE A. ASKING ANY QUESTIONS YOU
MAY HAVE FOR ME THANK YOU.
THANK YOU VERY MUCH SAID YOU'RE.
THANK YOU GOOD MORNING COMMITTEE
CHAIRS COMMITTEE MEMBERS AND
STAFF THANK YOU FOR THE
OPPORTUNITY ADDRESS YOU HERE
TODAY. ON SINCE WE LAST MET.
AND THE BUREAU HAS.
MET SEVERAL SUGGESTIONS TO GIVE
SIGNIFICANT MILESTONES SINCE WE
LAST MET AND THAT INCLUDES
TRANSITIONING FROM PROGRAM
DEVELOPMENT TO IMPLEMENTATION.
ALL THE LICENSING AUTHORITIES
HAVE OUR REGULATIONS IN PLACE
OUR ON LINE SYSTEMS ARE UP AND
RUNNING AND WE'RE ACCEPTING
APPLICATIONS AND WHERE BY
ISSUING LICENSES ON A DAILY
BASIS.
THE CANNABIS ADVISORY COMMITTEE
IS.
IN FULL SWING AND.
THEY'RE HARD AT WORK.
I JUST WANT TO GIVE YOU OF OF
BRIEF OVERVIEW OF WHERE WE ARE
ON IMPLEMENTATION OF THE BROUGH
OR BUREAU RELEASED ITS EMERGENCY
REGULATIONS ON NOVEMBER
SIXTEENTH OF TWENTY EIGHTEEN.
I'M SORRY IF TWENTY SEVENTEEN
PARDON ME THAT WERE I'M AHEAD OF
MYSELF IN COORDINATION WITH THE
OTHER TWO LICENSING AUTHORITIES.
THEM MERCHANTS HE REGULATIONS
WERE ADOPTED ON DECEMBER
SEVENTEENTH TWENTY SEVENTEEN ARE
CURRENTLY IN EFFECT.
THE BUREAU OFFICIALLY BEGAN
ACCEPTING APPLICATIONS THROUGH
ITS ONLINE SYSTEM ON DECEMBER
EIGHTH TWENTY SEVENTEEN IN THE
FIRST LICENSE BECOMING EFFECTIVE
JANUARY FIRST OF TWENTY
EIGHTEEN.
AS OF TODAY THE BUREAU HAS
ISSUED A TWELVE HUNDRED AND
FORTY ONE LICENSES FOR THEM THE.
THE LICENSES THAT WE ISSUE.
PURCHASES THE PUBLIC WITH THE
INFORMATION RELATED TO LICENSING
AND OTHER REQUIREMENTS FOR
CANNABIS BUSINESSES THE BUREAU'S
ALSO HOSTED SEVEN WORKSHOPS
AROUND THE STATE. THE WORKSHOPS
TO PLACE IN RIVERSIDE LOS
ANGELES SACRAMENTO IRVINE SAN
DIEGO OAKLAND AND MONTEREY. A WE
HAVE A FINAL WORKSHOP COMING UP
ON MARCH FIRST IN UKIAH. ARE
THESE LICENSE WORKSHOPS INCLUDED
ALL THREE IT LICENSING
AUTHORITIES INCLUDING.
SO MANY OTHER STATE AGENCIES
THAT ARE INVOLVED IN CANNABIS
REGULATIONS ON MOST NOTABLY
DEPARTMENT INSURANCE THE TAXING
AUTHORITIES.
WATER BOARDS AND OTHERS OF THE
WORKSHOPS WERE WELL ATTENDED BY
LOCAL GOVERNMENT REPRESENTATIVES
AND THE PUBLIC WAS ABLE TO
ATTEND THESE WORKSHOPS ASK
QUESTION OBTAIN WRITTEN
MATERIALS. AND REALLY IT WAS
THERE TO ASSIST THEM NAVIGATE
THE APPLICATION PROCESS IN HAVE
ANY ANSWER ANY QUESTIONS THEY
HAVE ON THE REGULATIONS.
THE BUREAU'S CURRENTLY
CONDUCTING.
INSPECTIONS OF LICENSED
PREMISES AS PART OF ITS
ENFORCEMENT PROGRAMS THESE
INSPECTIONS ALLOW THE BUREAU TO
EXAMINE LICENSED PREMISES
EVALUATE COMPLIANCE AND ALSO TO
EDUCATE THE LICENSEES. ARE WHEN
WE GO IN PERSON TO THESE
INSPECTIONS AND OUR ENFORCEMENT
STAFF.
IS JUST REALLY LOOKING TO SEE.
WHEN AND WHERE THEY HAVE HAVE
TROUBLE IN UNDERSTANDING THE
REGULATIONS AND ANSWERING THOSE
QUESTIONS ANY QUESTIONS WE CAN
ANSWER AT THAT TIME IT COMES
BACK TO US AND WE'RE MAKING
SURE.
THAT WERE OUT THE FIELD REALLY.
REALLY WITH A FOCUS ON EDUCATION
AND JUST GETTING THEM TO
UNDERSTAND THESE REGULATIONS.
SO FAR THE LICENSEES EXPRESSED.
UP APPRECIATION FOR US BEING
OUT THERE AND EDUCATE HIM IN THE
FEEL A WERE ALSO COLLABORATING
WITH LOCAL JURISDICTION ON
ENFORCEMENT MATTERS AS WELL AS
SENDING LETTERS TO BUSINESSES
THAT DO NOT HAVE A STATE
LICENSE.
TO INFORM THEM OF THE NEED TO
OBTAIN A STATE LICENSE
ARE WE CONTINUE TO RESPOND TO
EMAILS AND.
TELEPHONE ENQUIRIES.
THEY THEY ARE UPWARDS TO A FEW
HUNDRED.
EACH WEEK.
WHERE CURRENTLY PRODUCING?
WRITTEN MATERIALS TO ADDRESS
AREAS WHEN WE HAVE FREQUENTLY
ASKED QUESTIONS WHICH CAN BE
FOUND ON OUR WEBSITE.
ALSO AS I MENTIONED THE
CANNABIS ADVISORY COMMITTEE IS
TASKED WITH PROVIDING THE
CANNABIS LICENSE YET THIRTY
RECOMMENDATIONS REGARDING OUR
FINAL REGULATIONS. THE CAN
SMITTY CONSIST OF TWENTY TWO
INDIVIDUALS THAT BRING A BROAD
RANGE OF EXPERIENCE IN THE
CANNABIS INDUSTRY LABOR LAW
ENFORCEMENT LOCAL GOVERNMENTS
ALSO JUSTICE AND MORE. THE
ADVISORY COMMITTEE HAS ALREADY
MET IN FULL TWICE ALREADY AND
HAS CREATED STE TEN SUB
COMMITTEES TO FOCUS ON DIFFERENT
ASPECTS OF THE REGULATIONS.
THESE SUBCOMMITTEES INCLUDE
CULTIVATION MANUFACTURING RETAIL
DISTRIBUTION TESTING
LABORATORIES MICRO BUSINESSES
LICENSE APPLICATION ENFORCEMENT
EQUITY AND PUBLIC HEALTH AND
USE.
THE BUREAU CREATED A SURVEY FOR
THE PUBLIC TO SUBMIT INFORMATION
FOR CONSIDERATION BY THE
SUBCOMMITTEES. THE FIRST SURVEY
GATHERED OVER THREE HUNDRED AND
FORTY RESPONSES WHICH REPROBATE
IT TO THE SUBCOMMITTEES FOR
THEIR FEBRUARY THIRTEENTH
MEETING WHICH WAS HELD LAST WEEK
IN SACRAMENTO. ADDITIONAL
SUBCOMMITTEE MEETINGS ARE
SCHEDULED FOR MARCH FIRST AND
THE BUREAU CURRENTLY HAS A
SURVEY OPEN TOGETHER ADDITIONAL
FEEDBACK FOR CONSIDERATION AT
THESE MEETINGS.
THE RECOMMENDATIONS ADOPTED BY
THE SUB COMMITTEES WILL BE
CONSIDERED BY THE FULL ADVISORY
COMMITTEEAT ITS MARCH FIFTEENTH
MEDIAN AND LOS ANGELES.
RECOMMENDATIONS ADOPTED BY THE
FULL ADVISORY COMMITTEE WILL BE
PROVIDED TO THE LICENSING
AUTHORITIES FOR CONSIDERATION IN
DEVELOPING THE PERMANENT
REGULATIONS FOR COMMERCIAL
CANNABIS ACTIVITY. THE ADVISORY
COMMITTEE IS EXPECTED TO MEET US
ON AT LEAST A BI MONTHLY THIS
YEAR AND ADDITIONALLY AN AS
NEEDED.
I'VE ALSO INCLUDED IN YOUR
PACKET.
A LIST OF ALL THE DIFFERENT
LICENSE TYPE THE BUREAU'S
ISSUING AND HOW MANY LICENSE
WE'VE ISSUED FOR EACH LICENSE
AND I LOOK FORWARD TO ANSWERING
YOUR QUESTIONS THANK YOU. THANK
YOU VERY MUCH.
GOOD MORNING COMMITTEE CHAIRS.
COMMITTEE MEMBERS AND STAFF
THANK YOU FOR HAVING ME HERE TO
SPEAK TODAY MY NAME IS RICHARD
PARROTT. AND THE DIRECTOR OF THE
CAL CANNABIS CULTIVATION
LICENSING DIVISION FOR THE
CALIFORNIA DEPARTMENT OF FOOD
AND AGRICULTURE.
I'M HERE TODAY TO PROVIDE AN
UPDATE YOUON OUR CAT
CULTIVATION LICENSING IN
ENFORCEMENT PROGRAMS.
AS LORI MENTIONED IN NOVEMBER OF
TWENTY SEVENTEEN CDFA RELEASED
ITS EMERGENCY REGULATIONS.
DURING THE PUBLIC COMMENT PERIOD
WE RECEIVED A PRIZE ABOUT ONE
HUNDRED AND FIFTY FIVE COMMENTS
WERE CURRENTLY IN THE PROCESS OF
TAKING THAT FEEDBACK AND
PREPARING A REGULAR RULE MAKING
PACKAGE FOR RELEASE LATER THIS
SPRING.
THE CAL CANNABIS CULTIVATION
LICENSING DIVISION HAS TWO
BRANCHES.
LICENSING AND COMPLIANCE
ENFORCEMENT.
FOR TV IN UPDATE FOR THE
LICENSING BRANCH AND I'VE ALSO
PROVIDED YOU A PACKET WITH.
THE NUMBERS THAT ARE KIND OF
MORE SPECIFIED BREAKS THE
MOUNTAIN DETAIL. AS OF EIGHT AM
TODAY.
.
WE HAVE FOUR THOUSAND NINE
HUNDRED SIXTY FOUR REGISTERED
USERS IN OUR ONLINE SYSTEM.
WE'VE HAVE THREE THOUSAND FIVE
HUNDRED FIFTY NINE APPLICATIONS
EMBEDDED.
WE'VE ISSUED FIFTEEN HUNDRED
EIGHTY SIX LICENSES AND TONIGHT
AHERN TWENTY ONE APPLICATIONS.
OUR ONLINE SYSTEM UMMM IS ABLE
TO TAKE TEMPORARY AND.
ANNUAL LICENSE APPLICATIONS
WHICH ARE AVAILABLE EITHER
ONLINE OR BY PAPER.
WITH REGARD TO THE TONIGHT
APPLICATIONS THEY'VE BEEN A
RESULT OF APPLICANTS EITHER NOT
RECEIVING A LOCAL AUTHORIZATION
OR PROVIDING AN INCOMPLETE
APPLICATION.
AND WE DO A.
OUR OUR SYSTEM IS ABLE TO TAKE
ANNUAL APPLICATIONS BUT WERE NOT
ABLE TO ACCEPT THEM
INCOMPLETENESS YET BUT WE WE
ANTICIPATE BEING ABLE TO DO THAT
SOON.
ALSO IN OUR LICENSING SECTION
OUR AND OUR LICENSING BRANCH
STAFF CURRENTLY WORKING TO SET
UP TO PROGRAMS. ARE ORGANICS
PROGRAM IN OUR APPELLATIONS
PROGRAMS THOSE REQUIRED BY
STATUTE WE ANTICIPATE HAVING
SCOPING MEETINGS THIS SUMMER TO
RECEIVE FEEDBACK TO HELP US TO
TO DEVELOP EACH OF THOSE
PROGRAMS.
FOR COMPLIANCE AND ENFORCEMENT
BRANCH.
IT WILL BE SET UP IN SIX REGIONS
WITH STAFF LOCATED STATEWIDE.
STOP OF ALREADY BEGUN PERFORMING
SITE INSPECTIONS IN COMPLIANCE
VISITS FOR TEMPORARY LICENSEES.
OUR OUR SITE INSPECTIONS STARTED
AND WE START CONDUCTING THOSE A
WEEK OF FEBRUARY FIFTH.
THROUGH LAST FRIDAY FEBRUARY
NINETEENTH WE CONDUCTED A TOTAL
OF EIGHTY SITE VISITS TO
TEMPORARY.
CULTIVATION SITES.
THAT REPRESENTS ABOUT SIX
PERCENT OF ALL THE CURRENTLY.
LICENSED.
CULTIVATORS COMPLAINTS IN
EDUCATION IS OUR PRIMARY FOCUS
FOR THESE INSPECTIONS WE ARE
EDUCATING THE LICENSEES AND
HELPING TO PREPARE THEM FOR
SUBMISSION OF THEIR ANNUAL
APPLICATION.
OUR STAFF ARE ALSO CURRENTLY
WORKING WITH OTHER STATE AND
LOCAL AGENCIES TO COLLABORATE ON
INSPECTIONS.
FOR THE REPORTING OF SUSPICIOUS
ACTIVITIES EARLIER OR ILLEGAL
GROW SITES CFA HAS SET UP A CAL
CANNABIS COMPLAINT HOTLINE. OUR
NUMBERS PUBLISHED OUT THERE IT'S
ONE EIGHT THREE THREE WE TAP AND
WE ARE GETTING INFORMATION
THAT'S COMING IN ON THE HOTLINE.
WHEN WE GET WILL RECEIVE
INFORMATION WE TAKE THE
INFORMATION RECEIVED AND
INVESTIGATE THE ISSUE.
OR REFER TO THE APPROPRIATE
STATE OR LOCAL AGENCY DEPENDING
ON THE ISSUE.
WITH REGARD TO THE CALIFORNIA
CANNABIS TRACK AND TRACE SYSTEM.
IN THE MEDICINAL AN ADULT USE
CANNABIS REGULATION AND SAFETY
ACT OR MOUNT CURSOR. CDFA WAS
CHARGED WITH IMPLEMENTING A SEAT
TO SAIL TRACKING SYSTEM FOR
CANNABIS.
IN COLLABORATION WITH THE OTHER
TWO LICENSING AUTHORITIES CDFA
CREATED THE CALIFORNIA CANNABIS
TRACK ENTRY SYSTEM ALSO KNOWN AS
C. C. TT. AND THEN FOLLOWED BY
THE WORD METRIC.
ALL COMMERCIAL CANNABIS
LICENSEES OPERATING UNDER STATE
ISSUED ANNUAL LICENSES WILL BE
REQUIRED TO USE THE CC TT METRIC
SYSTEM. WHICH USES RADIO
FREQUENCY IDENTIFICATION OUR
RFID PLANT AND PACKAGE TAGS
TO TRACK THE MOVEMENT OF
CANNABIS.
CDF IS ALSO WORKING WITH THE
CALIFORNIA CALIFORNIA HER PATROL
AND OTHER STATE AND LOCAL
AGENCIES. TO ALLOW THEM TO
ACCESS TO THE DATA FROM C. CTT
TO MEET THEIR MANDATED NEEDS.
OUR NORTH COAST OFFICE.
I'M WHICH IS REQUIRED BY STATUTE
WILL ALSO INCLUDE A BUSINESS
CENTER WHERE LICENSEES CAN
UPLOAD THEIR CC TT DATA AND OR
USE THE ONLINE LICENSING SYSTEM.
WITH REGARD TO THE NORTH COAST
OFFICE IN ORDER TO MEET THE JULY
FIRST TWENTY EIGHTEEN STATUTORY
REQUIREMENTS AT MEL CARISSA.
DDS IS WORKING WITH DEPARTMENT
OF TAX AND FEE ADMINISTRATION
AND BUREAU OF CANNABIS CONTROL.
TO OPEN A TEMPORARY OFFICE SPACE
CITY COUNTY BUILDING IN EUREKA
TO ALLOW FOR CASH COLLECTION.
DTS IS SAID THAT THE MORE
PERMANENT OFFICE THAT WILL HAVE
THE BUSINESS CENTER CASH
COLLECTION FOR.
I CDFA BUREAU OF CANNABIS
CONTROL PUBLIC HEALTH AND STATE
WATER RESOURCES CONTROL BOARD
WILL NOT BE READY UNTIL AROUND
AUGUST OR SEPTEMBER. THEY
HAVEN'T YET SIGNED A LEASE FOR
THAT LOCATION.
AND CLOSING CDFA HAS
SUCCESSFULLY PROVIDED TRAINING
AND OUTREACH TO THOUSANDS OF
POTENTIAL LICENSEES ON THE
REQUIREMENTS OF THE PROGRAM
THROUGH TRAINING WORKSHOPS.
SOCIAL MEDIA ONLINE TUTORIALS
AND HOW RICH MATERIALS. WERE
CONFIDENT THAT THE CDFA HAS
BUILT A PROGRAM ACCORDING TO THE
MANDATED JULY JANUARY ONE TWENTY
EIGHTEEN DATE. THAT MAINTAINS
THE FUNDAMENTAL MISSION OF THE
DEPARTMENT AND IS RESPONSIVE TO
THE NEEDS OF OUR NEW
STAKEHOLDERS. AND I'M HAPPY TO
ANSWER QUESTIONS TODAY AFTER
WE'RE DONE THINK
THANK YOU MISTER BEAR.
THE CHRISTMAS.
GOOD MORNING TEARS COULD LOCO
EURO AND WOOD THANK YOU FOR THE
OPPORTUNITY TO SPEAK WITH YOU
I'M DOCTOR KAREN SMITH THE STATE
PUBLIC HEALTH OFFICER. AND THE
DIRECTOR OF THE CALIFORNIA
DEPARTMENT OF PUBLIC HEALTH.
THE CALIFORNIA BERMAN PUBLIC
HEALTH MANUFACTURED CANNABIS
SAFETY BRANCH. IS TASKED WITH
REGULATING AND LICENSING
CANNABIS MANUFACTURERS
DEPARTMENTS HIGHEST PRIORITY IN
IMPLEMENTING.
THE CANNABIS STATUTE IS THE
PRODUCTION OF THE PUBLIC'S
HEALTH.
THE DEPARTMENT RELEASED ITS
EMERGENCY REGULATIONS ALONG WITH
THE OTHER TWO LICENSING AND
TEASE ON NOVEMBER SIXTEENTH
TWENTY SEVENTEEN.
AND THE REGULATIONS WERE ADOPTED
ON DECEMBER SEVENTH IN CURRENTLY
IN FACT IT IN EFFECT WITH THE
PERMANENT REGULATION RULE MAKING
TO START EARLY IN THE SPRING
THIS YEAR. THERE'S HARTMAN
CONTINUES TO WORKING CLOSE
PARTNERSHIP AND COOPERATION WITH
THE OTHER TWO.
REGULATING AUTHORITIES
LICENSING AUTHORITIES THE
PROGRAMS MEET REGULARLY TO
COORDINATE ON REGULATIONS AREAS
OF OPERATIONAL EFFICIENCIES
COMMUNICATIONS AND OUTREACH AS
WELL AS LICENSING.
THE DEPARTMENT STARTED ACCEPTING
TEMPORARY LICENSE APPLICATIONS
AS SOON AS THE EMERGENCY
REGULATIONS WERE ADOPTED. CITY
PH HAS RECEIVED A TOTAL OF SEVEN
HUNDRED NINETY THREE
APPLICATIONS WE'VE ISSUED FIVE
HUNDRED AND TWENTY NINE
LICENSES.
THE REMAINDERS OF THE
APPLICATIONS WERE EITHER
WITHDRAWN OR NOT APPROVED BY THE
DEPARTMENT AT THIS TIME EITHER
BECAUSE THE LOCAL JURISDICTION
CURRENTLY BANS THE CANNABIS
MANUFACTURING ACTIVITY OR THE
LOCAL JURISDICTIONS
SPECIFICALLY.
DID NOT APPROVE THE ACTIVITIES
OF THE APPLICANTS
CANNABIS BUSINESS.
OUR STAFF CONTINUE TO WORK
DILIGENTLY TO PROCESS TEMPORARY
APPLICATIONS AS QUICKLY AS
POSSIBLE. REFINING THAT IT
TYPICALLY TAKES ABOUT TWO WEEKS
FROM THE TIME A COMPLETE
APPLICATION IS SUBMITTED TO WHEN
WE ISSUE A DETERMINATION ON THE
TEMPORARY LICENSE.
THE DEPARTMENT IMPLEMENTED A
MANUFACTURED CANNABIS LICENSING
SYSTEM WHICH IS AN ONLINE
APPLICATION PROCESS. IT LAUNCHED
IN EARLY DECEMBER AND ALLOWS
LICENSEES BOTH TO SUBMIT A
MANUFACTURING LICENSE
APPLICATION CHECK THEIR
APPLICATION STATUS AND MAKE
PAYMENTS ONLINE.
ANNUAL LICENSES ARE VALID FOR
ONE YEAR AND CAN ALSO BE REAL
RENEWED IN THE SYSTEM.
THE DEPARTMENT IS READY TO
COLLECT CASH PAYMENTS FOR ANNUAL
LICENSING APPLICATION FEES
THROUGH A CONTRACTUAL AGREEMENT
WITH THE BUREAU. OUT TO AID TO
COLLECT CASH IN SACRAMENTO
DEPARTMENT WILL BE ONE OF THEIR
THREE LICENSING AUTHORITIES IN
NORTH COAST OFFICE. THAT WILL
COLLECT CASH AND PROVIDE
TECHNICAL ASSISTANCE TO
LICENSEES.
OVER THE LAST FOUR MONTHS WE'VE
PARTICIPATED IN OUTREACH EVENTS
AND DEVELOPED A NUMBER OF
RESOURCES TO ASSIST INDUSTRY IN
THE TRANSITION TO THE REGULATED
MARKET.
WE'VE CONDUCTED TEN LICENSING OR
SHOT WORKSHOPS THROUGHOUT THE
STATE DURING THE MONTHS OF
NOVEMBER AND DECEMBER.
TO EDUCATE ADDRESS QUESTIONS
FROM CANNABIS MANUFACTURERS
INFORMATION INCLUDED REGULATORY
REQUIREMENTS THE LICENSE
APPLICATION PROCESS. IN TOTAL
APPROXIMATELY SIX HUNDRED PEOPLE
ATTENDED THE SESSIONS
THE PRESENTATION MATERIALS ARE
ALSO AVAILABLE ON THE
DEPARTMENT'S WEBSITE.
THE DEPARTMENT PARTICIPATED IN
THREE WORKSHOPS HOSTED BY THE
BUREAU OF CANNABIS CONTROL IN
OCTOBER AND FOR IN JANUARY AND
FEBRUARY TWENTY EIGHTEEN.
THE INFORMATION PROVIDED AS
LAURIE STATUS INCLUDED
APPLICATION CHECKLIST ALYSSUM
LICENSE TYPES PACKAGING AND
LABELING GUIDES FOR
MANUFACTURERS. AND A SUMMARY OF
EMERGENCY REGULATIONS ALL OF
THESE MATERIALS ARE ALSO
AVAILABLE ON THE WEBSITE FOR
DOWNLOAD.
THE PROGRAM'S BEEN RESPONDING TO
ALL ENQUIRIES CONCERNS AND
COMPLAINTS FROM INDUSTRY AND THE
PUBLIC WE HAVE MULTIPLE AVENUES
FOR PEOPLE TO A CONTACT US A
TOLL FREE PHONE NUMBER EMAIL
ADDRESS. AND AN ONLINE COMPLAINT
FORM ALL COMPLAINTS ARE REVIEWED
BY OUR CANNABIS TEAM AND
RESPONDED TO APPROPRIATELY. OUR
COMPLIANCE TEAM COORDINATES
CLOSELY WITH LOCAL JURISDICTION
OFFICES AND LOWER LAW
ENFORCEMENT AS NECESSARY.
THE DEPARTMENT'S WEBSITE
INCLUDES EXTENSIVE INFORMATION
FOR LICENSEES AND THE PUBLIC
INCLUDING REGULATORY INFORMATION
LICENSING INSTRUCTIONS A
LICENSEE LOOKUP TOOL. EVENTS
RESOURCES AND FAQS BY TOPIC.
THE PROGRAM ALSO CONTINUES TO
DEVELOP ADDITIONAL RESOURCES
INCLUDING HANDOUTS WEBINARS AND
MORE TO ASSIST LICENSEE. IN
COMPLETING THEIR APPLICATIONS IN
AN UNDERSTANDING HOW TO OPERATE
A HAZARD FREE WORKPLACE AND
PRODUCE SAFE PRODUCTS.
PART OF OUR REGULATORY PROGRAM
INCLUDES THE COMPLIANCE AND
ENFORCEMENT UNIT WHICH WORKS TO
ENSURE PRODUCT SAFETY OF
REQUIREMENTS FOR COMMERCIAL
MATTER CANNABIS MANUFACTURING.
THERE ARE FIVE REGIONAL
INSPECTION TEAM STAFFED BY
ENVIRONMENTAL SCIENTISTS WHICH
OVERSEE A SPECIFIC REGIONAL
TERRITORY AND PROVIDE COVERAGE
THROUGHOUT THE STATE.
THESE TEAMS ARE CURRENTLY
ENHANCING THEIR TRAINING AND
HAVE BEGUN CONDUCTING SITE
VISITS OF LICENSED CANNABIS
MANUFACTURERS. WITH A FOCUS ON
EDUCATING THE MANUFACTURES ABOUT
HOW TO MEET THE REQUIREMENTS.
THE DEPARTMENT CONTINUES TO
ENCOURAGE PARTICIPATION IN THE
REGULATED MARKETS THROUGH A
AGGRESSIVE OUTREACH TO INDUSTRY
ASSOCIATIONS AND STAKEHOLDERS.
AND WE APPRECIATE YOUR CONTINUED
SUPPORT INTERESTING A INSURING A
SUCCESSFUL ROLL OUT OF THE
REGULATIONS AND LICENSING OF THE
REGULATED CANNABIS INDUSTRY.
WHAT I THINK JUST A MOMENT TO
SPEAK TO THE OTHER REQUIRED
ACTIVITY OF THE DEPARTMENT?
SENATE BILL NINETY FOUR
ALLOCATED FIVE MILLION DOLLARS
TO THE APARTMENT HEALTH CARE
SERVICES TO CREATE IMPLEMENT A
PUBLIC EDUCATION CAMPAIGN.
I DID SEE US ENTERED INTO AN
INTER AGENCY DEGREE AGREEMENTS
WITH THE OFFICE OF TRAFFIC
SAFETY TO ADDRESS THE DREADED
DRIVING ASPECTS OF LEGALIZE
CANNABIS. AND WITH CD PH TO
EDUCATE THE PUBLIC ABOUT THE NEW
LAW ASSOCIATED PENALTIES AND
POTENTIAL RISKS.
WE LAUNCHED A LET'S GET CANNABIS
CAMPAIGN ON SEPTEMBER FIRST
TWENTY SEVENTEEN AS DIRECTED BY
SIR S. B. TWENTY FOR THE
CAMPAIGN PROVIDE SCIENTIFICALLY
ACCURATE INFORMATION TO INFORM
CONSUMERS ABOUT WHAT'S LEGAL AND
CAL UNDER CALIFORNIA LAW. THE
POTENTIAL RISKS OF CANNABIS USE
AND OVER USE AND THE RATIONALE
FOR LIMITING CANNABIS SALES TO
YOUTH.
LET'S TALK CANNABIS AIMS TO
PREVENT AND DELAY USE AMONG AT
RISK POPULATIONS INCLUDING
YOUTH.
PREGNANT BREASTFEEDING WOMEN.
WE ARE ALSO CONDUCTING DETAILED
FORMATIVE RESEARCH THROUGH
STATEWIDE FOCUS GROUPS AND
SURVEYS TO BETTER UNDERSTAND
CONSUMPTION PATTERNS ATTITUDES
AND BELIEFS WHICH WILL HELP
GUIDE PUBLIC EDUCATOR EDUCATION
BECAUSE OF EFFORTS.
THE CAMPAIGN INCLUDES A WEBSITE
LET'S TALK CANNABIS DOT CA DOT
OR DOT GOV AND A COMMUNITY TOOL
KIT WHICH INCLUDES CUSTOMIZABLE
DIGITAL RESOURCES. FOR USE BY
LOCAL HEALTH DEPARTMENTS
COMMUNITY BASED ORGANIZATIONS
AND STATEWIDE ORGANIZATIONS.
WE'RE DEVELOPING A CAMPAIGN THAT
WILL FOCUS ON FIVE PRIORITY
AUDIENCES PREGNANT BREASTFEEDING
WOMEN AT RISK YOUTH PARENTS AND
MENTORS. AN HEALTH CARE
PROVIDERS AND ADULT USERS.
OR POTENTIAL USERS
CREATIVE MATERIALS WILL INCLUDE
DIGITAL VIDEOS PSAS SOCIAL MEDIA
CONTENT HAND OUTS IN FACT
SHEETS.
THESE HAVE BEEN A A PERHAPS SOME
OF THESE HAVE ALREADY BEEN
DEVELOPED AND ARE ON THE
WEBSITE.
BUT EACH WILL BE DEVELOP
SPECIFIC FOR THE AUDIENCE AND
PROMOTED THROUGH DIGITAL
PLATFORMS AND SOCIAL MEDIA.
CAMPAIGN INFORMATION A RESOURCES
ARE BEING SHARED WITH OUR
PARTNER STATEWIDE TO AMPLIFY THE
EDUCATIONAL MESSAGES AND.
AND EMPHASIZE PUBLIC SAFETY
ULTIMATELY OUR GOAL IS TO
PREVENT AND REDUCE ANY
UNINTENDED HARM TO YOUTH OR
ADULTS ARISING FROM CURRENT.
COMMERCIAL AVAILABILITY OF
CANNABIS
THANK YOU FOR THE OPPORTUNITY
AND I WELCOME ANY OF YOUR
QUESTION.
COULD YOU VERY MUCH DOCTOR SMITH
AND. NOW WILL. TURN THIS OVER TO
OUR FELLOW COLLEAGUES FOR ANY
QUESTIONS OR COMMENTS AND JUST
A FOUR POINT OF CLARIFICATION
THAT MEMBERS OF THE PUBLIC WILL
HAVE AN OPPORTUNITY. A DURING
PUBLIC COMMENT AT THE CONCLUSION
OF THE THREE PANEL DISCUSSIONS
AGAIN PUBLIC COMMENT WILL BE
MADE AVAILABLE AT THE CONCLUSION
OF THE A FINALLY THIRD PANEL. SO
AT THIS POINT ANY QUESTIONS AT.
FOR OUR PANELISTS
SUMMER LACKEY.
YES THANK YOU.
MISTER CHAIR AND I JUST WANTED
TO.
BEGIN BY THANKING YOU MISS AJAX
FOR ALL YOUR TIRELESS WORK.
AND TRYING TO IMPLEMENT THIS
REGULATORY SYSTEM.
I CAN'T IMAGINE HOW DIFFICULT IT
IS TO PUT THAT TOGETHER ALL
THESE MOVING PARTS AND. THANK
YOU FOR ALL THE HOURS YOU'VE
BEEN PUTTING AND. AND ALSO
CONGRATULATE.
MISTER WARD STANLEY FOR
DEPLOYMENT TO THE CHP HAS ITS
COMMISSIONER.
AND THIS QUESTION WOULD BE
DIRECTED TOWARDS OF MISS AJAX OF
THEM ARE YOU HEARING FROM
LICENSEES ABOUT THE NEED.
FOR FORSMAN AGAINST LEGAL
OPERATORS.
JUDGING BY THE COMMENTS
SUBMITTED TO THE CANNABIS
ADVISORY SUBCOMMITTEE ON
ENFORCEMENT.
THIS SEEMS TO BE A GROWING
PROBLEM.
YEAH WE WE ARE GETTING SO WE
HAVE ONLINE YOU CAN FILE A
COMPLAINT WITH US OR YOU CAN.
PHONE US AND WE A TREMENDOUS
AMOUNT OF OUR LICENSEES HAVE
EXPRESSED CONCERN OVER COMPETING
WITH.
.
OF THE UNLICENSED MARKET OUT
THERE SO THAT IS THE. HAS BEEN
PROBABLY ONE OF THE PRIMARY
CONCERNS THAT WE'RE HEARING EVEN
ON THE FIELD AS OUR INSPECTORS
GO OUT.
KID THANK YOU THE GENERAL BUDGET
RELEASES PROPOSED DELAYING
SEVERAL SOURCES OF FUNDING UNTIL
THE NINETEEN TWENTY FISCAL YEAR.
WHAT KIND OF ENFORCEMENT OF
PUBLIC LANDS AN ENVIRONMENTAL
CLEANUP AS POSSIBLE WITHOUT
RELEASING PROP SIXTYFORCE
FUNDING?
FOR THIS.
ENVIRONMENTAL RESTORATION
PROTECTION ACCOUNT.
SO I'M I'M JUST CAN YOU TELL ME
YOU AT WHAT SPECIFICALLY YOU'RE
ASKING.
I'M.
YEAH BUT WHAT I'M WHAT I'M
ASKING FOR IS SO WHAT KIND OF
FORSMAN. CAN WE DO ON PUBLIC
LANDS OF THIS WAS ACTUALLY.
THE CASE IF WE DELAY THAT
FUNDING RIGHT.
I THINK THAT'S SOMETHING THAT.
YOU KNOW I'LL BE HONEST WITH
YOU WE'VE BEEN REALLY FOCUSED ON
ONE LICENSING AND THEN ONE
GETTING OUT THERE AND EDUCATING
PEOPLE TO GET LICENSE. I THINK
THOSE ARE CONVERSATIONS WE WOULD
BE HAVING WITH OUR. WITH THE
ATTORNEY GENERAL'S OFFICE IN CH
P. TO SEE WHILE WHERE WE CAN DO
ENFORCEMENT ON PUBLIC LANDS.
BUT THAT IS
PART OF A GREATER UNDERSTANDING
WITH THE BUREAU AND OUR OTHER
LAW ENFORCEMENT POP UP PARTNERS
WITH THE STATE.
OKAY.
JUST A FEW MORE QUESTIONS IF
THAT'S OKAY.
RICHER.
IN THIS QUESTION WOULD BE THAT
TO EITHERTHE COMMISSIONER CHIEF
DESMOND. WHAT IS A SIEGE PIECING
ON HIGHWAYS AS FAR AS LICENSE
DISTRIBUTORS?
AND A WHAT KINDS OF ILLEGAL
TRANSPORT IS IT SEEN.
OUR EARTH THEY EVEN HAVE ANY
INDICATION.
DESPERATE THANK YOU. THAT JUST
RECENTLY WE HAD A. ENFORCEMENT
STOP THAT WAS MADE FOR A DUI UP
IN NORTHERN CALIFORNIA NINE FIVE
BY ONE OR OFFICERS IN.
HE CAME INTO CONTACT THE GERMANY
STOPPED IN FOR. POSSIBLY DRIVING
OF INFLUENCE.
AND IT TURNED OUT HE WAS DRIVING
ON THE INFLUENCE OF OF CANNABIS.
ANNE AT APPROXIMATELY SIXTY
POUNDS OF MARIJUANA WITHIN.
HE HAD LIMITED INFORMATION
REGARDING.
YOU KNOW LOCATION WORKING FROM
AND SO ON AND SO FORTH.
AND THE OFFICER CALLED IS
STARTING OUT. TO SYSTEM THEY
MADE SOME CALLS.
ANSWERS TO BCC WEBSITE THEY
WERE ABLE TO FIND.
I ANY INFORMATION.
AT THAT TIME.
SO WHAT THEY DID THEY ARRESTED
HIM FOR DE WHY.
ANY THIS BOOK
THE COUNTY JAIL NORTH.
AND THEN THE FOLLOWING DAY THE
SERGEANT DID SOME MORE. RESEARCH
ON THE BCC WEBSITE HE WAS ABLE
TO FIND THE GERMANS LICENSE AND
AFTER THE GENTLEMAN WAS
RELEASED.
.
FOR BEING ARRESTED FOR DUI.
YEAH HE WAS ABLE TO PICK UP THIS
MARIJUANA AND MOVE ON S..
AT SIR.
YOU NO PROCEED ON OKAY.
THAT WAS JUST SO FAR THAT'S THE
THE ONLY INCIDENT. THAT WE'VE
BEEN MADE AWARE WHERE.
THE OFFICER HAS SOME TROUBLE
TRYING TO.
I LOCATE THE. PERSON'S LICENSE.
BECAUSE OF I COULD FOLLOW UP
WITH THAT WHAT WHAT ACTIONS CAN
THE CHP OFFICER TAKE OF THE
ENCOUNTER LICENSE DISTRIBUTOR.
WHO IS A VIOLATION OF STATE
REGULATIONS ARE LOST TO DO WE
HAVE A MECHANISM IN?
IN PLACE TO.
RECOGNIZE THAT AND TO TAKE
FOLLOW BACK WHAT BIG THEY CAN'T
FOLLOW UP A THE BUREAU OF
CANADA'S CONTROL THE RECENT
RELEASED.
.
A TELEPHONE NUMBER AND I FOR A
LAW ENFORCEMENT OFFICERS AND
THEIR. IN EMAIL ADDRESS THAT. IF
THEY COME ACROSS SOMEONE IN THAT
YOU'RE ABOUT THE LICENSE THEY
CAN CALL THAT NUMBER OR SEND
EMAIL TO THAT EMAIL ADDRESS AND
GET SOME INFORMATION BACK.
THE TRY TO DETERMINE THAT THE
PERSONS ARE LICENSED PRODUCTS
BALLOT OR NOT.
OKAY.
AND MY LAST QUESTION WOULD BE
FOR A MISTER PARENT. OF WHAT'S
THE STATUS ATTRACTED TRACE.
.
BEING INTEGRATED INTO THE DOJ
CLUTCH SYSTEM.
SO WE ARE IN THE PROCESS OF
WORKING ON THAT PROJECT WERE IN
MEETINGS WITH DEPARTMENT OF
TECHNOLOGY AND DOJ.
AND IT'S IT'S.
IT'S BEING WORKED ON RIGHT NOW
WE HAVE FUNDING AVAILABLE FOR
THAT AND IT'S AYE I DON'T HAVE
IT AN EXACT TIME LINE BUT IF IT
IS IN. SUBJECT OF ONGOING
REGULAR MEETINGS WITH DOJ CDFA.
AND COME.
DEPARTMENT TECHNOLOGY.
OKAY THANK YOU MIGHT MY FINAL
COMMENT MISTER CHAIR AND TO
THOSE LISTENING. IS THAT YOU CAN
SEE THERE'S A LOT OF PROBLEMS
HERE IN THE FORSMAN ARENA.
AND WERE IN FEBRUARY ALREADY.
AND.
THE LONGER WE TAKE TO
COORDINATE JUSTICE OF FORSMAN
EFFORT. OF THE BIGGER
DISADVANTAGE
OF THOSE WHO ARE TRYING TO PLAY
BY RULES WILL HAVE AND THE LESS.
LIKELIHOOD THEY ARE TO WANT TO
PLAY BY THE RULES AND SO I'M
HOPING THAT WE AS A BODY CAN. DO
THE THINGS NECESSARY TO PUT IN
PLACE MAYBE A COORDINATED EFFORT
WITH LAW ENFORCEMENT. AND
COMMUNICATE MORE CLEARLY WITH
THE LOCAL AND STATE OFFICIALS AS
TO WHAT WHAT NEEDS TO BE DONE SO
THAT.
THEY CAN NOW HAVE A CHANCE TO BE
SUCCESSFUL.
THANK YOU VERY MUCH MISTER
LACKEY.
CHAIRMAN COMING UP.
THANK YOU VERY MUCH.
WELL FIRST LET ME THANK ALL THE
PRESENTERS AYE APPRECIATE
GETTING THE AND UPDATED
INFORMATION.
I'M I'M HAPPY TO HEAR THAT.
LETTERS ARE GOING OUT TO
INDIVIDUALS THAT ARE NOT
LICENSED IT WAS ONE OF THE
COMPLAINTS THAT I HEARD. I HAVE
HEARD REPEATEDLY AND
COORDINATION WITH LOCAL ON
FORSMAN IS GOING TO BE REALLY
CRITICAL SO.
THANK YOU FOR THAT.
I HAVE A QUESTION I HAVE A
COUPLEOF QUESTIONS THE FIRST
ONE IS.
.
TO CDFA Y. DON'T TEMPORARY
LICENSEES HAVE TO RIVER REPORT
INTO TRACK AND TRACE.
AND WITH NO TRACK ENTRY
SOMEPLACE INTO PERMANENT
LICENSING HOW IS ENFORCEMENT
GOING TO BE DONE.
AND HOW MUCH LATITUDE WILL BUT
THE POLICE HAVE TO HAVE PRODUCTS
EAST.
OKAY I'LL ANSWER THAT SOME.
SO WITH REGARD TO TRACK AND
TRACE INTEMPERATE LICENSEES LIKE
TO PROVIDE YOU SOME BACKGROUND
ON HOW WE GOT TO WHERE WE ARE
TODAY.
SEVERAL FACTORS HAD TO BE
CONSIDERED BY ALL LICENSING
AUTHORITIES PRIOR TO RELEASE OF
THE EMERGENCY REGULATIONS SO
THIS IS AS WE ARE WORKING ON THE
REGULATIONS. LAST SEPTEMBER AND
OCTOBER.
USERS OF THE.
USERS OF THE CALIFORNIA
CANNABIS TRACK ENTRY SYSTEM NEED
TO BE TRAINED PARTY USING THE
SYSTEM.
TRAINING WOULD NOT HAVE BEEN
ABLE TO BE COMPLETED PRIOR TO
JANUARY ONE TWENTY EIGHTEEN. AND
WOULD HAVE IMPACTED THE ABILITY
FOR CELLS OUR PRODUCT TO
COMMENCE AS OF JANUARY FIRST
WHICH WAS.
WHAT WE BELIEVED Y. TEMPORARY
LICENSES WERE WERE INCLUDED IN
THE STATUTE WAS TO ALLOW THE
EXISTING BUSINESSES TO? CONTINUE
ON THE.
TEMPORARY LICENSE PROCESS IS A
VERY STREAMLINED PROCESS.
HAD TEMPORARY LICENSE HE'S BEEN
REQUIRED TO USE THE THAT TRACK
AND TRACE SYSTEM LICENSING
AUTHORITIES WOULD HAVE HAD TO
WOULD HAVE HAD TO CHARGED FEES
FOR TEMPORARY LICENSES.
BY THEN ALL OF THE LICENSING
AUTHORITIES HAD.
COLLECTIVELY DECIDED THAT
TEMPORARY LICENSES WOULD HAVE NO
FEES THE THE SYSTEMS FOR THE
LICENSING HAD BEEN PROGRAMMED AS
IN A WAY TO NOT ACCOUNT FOR
REQUIRING FEES.
SO HAD TEMPORARY LICENSE HE'S
BEEN REQUIRED TO USE THE TRUCK
INTEREST SYSTEM LICENSING
AUTHORITIES WOULD OF HAD TO
CHARGE FEES.
AND THAT PROGRAMMING TO CHANGE
THE SYSTEMS AT THAT JUNCTURE
WOULD HAVE JEOPARDIZED OUR
ABILITY TO ISSUE TEMPORARY
LICENSES AS OF JANUARY FIRST SO
WE WERE CAUGHT IN A REAL.
THE POSITION OF HAVING TO MAKE
SOME DECISIONS BECAUSE THIS HAD
TO BE INCORPORATED INTO THE
EMERGENCY REGULATIONS. AND
DECISIONS HAD TO BE MADE PRIOR
TO THE RELEASE OF THE EMERGENCY
REGULATIONS.
SO DO TO THOSE TIME LINES.
.
THE LICENSING AUTHORITIES GOT
TOGETHER COLLECTIVELY DECIDED
THAT WHAT WE WOULD DO IS TO
TRAIN THE LICENSEES ON THE TRACK
AND TRACE SYSTEM AT THE TIME
THEY MAKE APPLICATION FOR AN
ANNUAL LICENSE.
.
WE DECIDED SO WE DECIDED THAT WE
WOULD TRAIN THEM.
AT THE TIME THEY MAKE
APPLICATION AND THAT WE WOULD BE
ISSUING THE UNIQUE IDENTIFIERS
TO OUR IF ID TAGS.
AFTER THEY RECEIVE THE TRAINING
AND HAVE THEIR ANNUAL LICENSE.
SO ONCE THAT ONCE THE ANNUAL
APPLICANT IS NOTIFIED BY THE
LICENSING AGENCY THAT THEIR
APPLICATIONS BEEN ACCEPTED AND
THEN WE WILL ALSO BE RECEIVING
APPLICATION FEES. THEY'LL BE
GETTING THEIR TRAINING AND THEN
ONCE YOU HAVE THE ANNUAL LICENSE
THOUGH MEDULLA HAVE THIRTY DAYS
TO GET THEIR RFID TAGS AND APPLY
THOSE TO PRODUCTS.
IN THE INTERIM. THEM TEMPORARY
LICENSEES ARE REQUIRED TO USE
PAPER SALES INVOICES OR RECEIPTS
AND MANIFESTS
AND THOSE ARE ALL PRESCRIBED BY
EACH LICENSING AUTHORITY IN
REGULATION. I'M IN COMPLIANCE
WAS WHAT THE STATUTE REQUIRES.
THE CONTENTS OF THE.
.
THE CONTENTS OF WHAT NEEDS TO
BE REQUIRED IN THE MANIFEST AT
HOME WE HAVE A FILLABLE PDF
THAT'S BEEN PROVIDED ON OUR
WEBSITE TO ALLOW THE INDUSTRY TO
USE THAT AS A. AS A GUIDELINE TO
DOCUMENT.
ALL THE ELEMENTS IN THAT
TEMPLATE ARE IN COMPLIANCE WITH
WHAT'S IN OUR REGULATIONS.
WE ALSO HAVE AS AS.
.
THE CHP MENTION AND LORI
MENTIONED SO IN THE INTERIM
DURING THIS TEMPORARY LICENSING
PHASE WHEN THE LICENSEES ARE
USING THE PAPER PROCESS.
THE BUREAU HAS SET UP THE
ABILITY FOR LAW ENFORCEMENT TO
HAVE ACCESS TO THE MANIFEST
INFORMATION THEY HAVE A TWENTY
FOUR HOUR NUMBER AND AN EMAIL
WHERE THEY CAN. CONTACT THE
BUREAU IF THEY HAVE QUESTIONS
AND EVERY LICENSEE DURING DURING
THIS TEMPORARY PHASE AS THEY
TRANSFER PRODUCT FROM ONE
LICENSEE TO ANOTHER. REQUIRED TO
HAVE THOSE PAPER DOCUMENTS WITH
THE PRODUCT AND EACH LICENSEE IS
REQUIRED TO RETAIN THIS PAPER
OCUMENTS.
SO IT IT IT ESSENTIALLY WAS A
WAS A TIMING ISSUE SO IS THERE A
TIME.
LIMIT FOR HOW LONG YOU CAN HAVE
A TEMPORARY LICENSE SO TEMPORARY
LICENSES ARE VALID FOR HUNDRED
AND TWENTY DAYS. AND THEN THEY
CAN BE EXTENDED FOR AN
ADDITIONAL NINETY DAYS AT THE
DISCRETION OF THE LICENSING
AUTHORITY.
FOR.
THE INFIRM FOR STATED PURPOSE I
MEAN FIRST SPECIFIC PURPOSE AND
I'M JUST TRYING TO GET YEAH.
WHEN WILL THE TEMPORARY AND IN
THAT AND FROM THAT POINT ON
EVERYBODY SHOULD
RIGHT ARE YOU. COMES WHEN WE
LOOKED AT THIS.
.
LIKE I SAID WHEN WE DISCUSS THIS
HOME.
LAST SEPTEMBER AND OCTOBER WE
KIND OF LOOKED AT THEIR THERE'S
THIS FOR SIX MONTHS OF TWENTY
EIGHTEEN. THURS AND OUR
REGULATIONS AND AND EACH
LICENSING AUTHORITIES
REGULATIONS THERE IS MENTION OF
A TRANSITION PERIOD AND WHEN WE
LOOKED AT. TEMPORARY LICENSES
BEING VALID FOR FOUR MONTHS
AND THEN SOME CAN BE EXTENDED A
NINETY DAY PERIOD AND THAT'S
MORE TO ALLOW IF THE LICENSING
AUTHORITY. IS HOW NEED SOME
ADDITIONAL PROCESSING TIME THEY
COULD EXTEND IT SO WE ENVISIONED
THAT THIS FOR SIX MONTHS WOULD
KIND OF BE A TRANSITION PERIOD
ON WE WE GET PEOPLE AND TO TRACK
AND TRACE.
THANK YOU VERY MUCH FOR THAT I
APPRECIATE THE INFORMATION
AND KIND OF THE CHALLENGES WITH
TRYING TO DO STUFF SAID AFTER
EMERGENCY REGULATIONS I MEAN
THIS IS.
PART OF THE CHALLENGE IT DOING
IT THIS WAY. WITH EXPEDITED
TIMELINES
BOB THE NEXT QUESTION I HAVE IS
IS FOR MR GLICKMAN AND IT
ESSENTIALLY IF I'M REALLY
APPRECIATE YOUR TESTIMONY.
AND ALL OF THE WORK THAT'S
COMING OUT OF OF THE AG'S
OFFICE.
IT'S REALLY IMPORTANT ONE OF
THE ACTIVITIES THAT I'M HEARING
SO SO THERE'S THE. THERE'S THE.
FEDERAL ATTORNEY GENERAL COMING
IN AND DOING ENFORCEMENT AND THE
POTENTIAL FOR THAT BUT.
WHAT I'VE HEARD THE REAL ISSUE
IS IS THE?
INTERNAL REVENUE SERVICE
AND IN MY REGION THAT THEY'VE
COME IN WITH
AUDITOR'S
AND THEY STARTED IT AT AT A
DIFFERENT KIND OF PROCESS WHERE
THEY ARE LOOKING AT THE.
EXPENSES. THAT ARE BEING.
AT USED AS BUSINESS EXPENSES BY
THE.
RETAILERS AND THEY ARE THEY
HAVE IN THE PAST.
CONFISCATED PRODUCT AND CLOSED.
STORES DOWN.
AND BECAUSE OF NOT AN AUDITING
PROCESS AS OPPOSED TO IT E..
ILLEGAL DRUG ENFORCEMENT PROCESS
ALTHOUGH THEY USE THE FACT THAT
IT'S AN ILLEGAL PRODUCT.
PER FEDERAL MONEY CUT GOVERNMENT
AS IT THE EXCUSE TO COME AND.
TAKEOVER PRODUCT NOT ALLOW A
BUSINESS EXPENSES AS A TAX
ISSUE HAVE HAVE YOU SEEN THAT
HAPPEN AND IS THERE A STRATEGY.
FOR HOW TO DEAL WITH THAT
BECAUSE IT JUST IT UNDERMINES
EVERYTHING THAT WE'RE DOING TO
A.
TO HAVE.
AND THE IRIS COME IN AND SAY
YEAH BUT THIS IS STILL ILLEGAL
AND WE CAN CONFISCATE WITHOUT A
COURT ORDER.
RIGHT IT AS FAR SPECIFIC
EXAMPLES LIKE I CAN'T POINT TO
ANY AND IF YOU IF YOU HAVE SOME
OUR OFFICE WOULD CERTAINLY BE
INTERESTED AND HEARING ABOUT THE
ME IT IS AN ISSUE ARE AWARE OF
AN AND SOMETHING OUR OFFICES
MONITORING. I KNOW I IN COLORADO
THERE WERE THERE WERE REPORTS
LAST FALL OF OF SIMILAR
ACTIVITIES BY BY THE IRS.
UNFORTUNATELY AS THE COMMITTEES
ARE AWARE WE HAVE VERY LIMITED
CONTROL OVER OVER THE FEDERAL
GOVERNMENT IN AND THE AYE ARE
ASKED
IN IN IN A QUIRK OF FEDERAL LAW
EVEN ILLEGAL DRUG TRAFFICKING
UNDER FEDERAL LAW. YOU'RE
REQUIRED TO PAY YOUR TAXES AND
YOU'RE NOT RECORD HERE NOT
PERMITTED TO DEDUCT THOSE
BUSINESS EXPENSES SO THAT AS YOU
KNOW IT DOES PROVIDE. KIND OF
THE THE EXCUSE FOR THE AYE
ARRESTED TO COME AFTER THIS
ACTIVITY I WOULD ANTICIPATE THAT
WOULD BE ONE OF THE SUBJECTS
THAT THAT ATTORNEY GENERAL TO
SARAH WOULD WOULD RAISE WITH THE
US ATTORNEY'S WHEN THOSE
MEETINGS HAPPEN. OUT ITS
DEFINITION WERE AWARE OF.
THANK YOU VERY MUCH.
MISTER GIPSON.
THANK YOU VERY MUCH MISTER
CHAIRMAN AND CERTAINLY HAS BEEN
EDUCATIONAL EXPERIENCE FOR ME TO
STAY HERE THE PADDLE IN THE
ARTICULATION OF WHERE WE ARE AND
WHERE WE STAND IN CALIFORNIA. I
HAVE A FEW QUESTIONS ON THIS ONE
IS TO THE DEPARTMENT OF HEALTH.
YOU MADE MENTION THERE'S.
SEVEN HUNDRED AND TWENTY TWO
APPLICANTS AND YOU. ALREADY
ISSUED FOUR HUNDRED AND NINETY
WHAT HAPPENS THAT TWO HUNDRED
AND THIRTY TWO.
LICENSE.
BETTER STILL YET TO BE PROCESS
IN APPROVED THAT'S ONE QUESTION
FOR YOU.
SO. LET ME GIVE YOU THE EXACT
NUMBERS.
AT WHICH MAY HELP A LITTLE THAT
WE RECEIVED A TOTAL OF SEVEN
HUNDRED NINETY THREE WE'VE
ISSUED FIVE HUNDRED AND TWENTY
NINE ONE HUNDRED TWENTY SIX WERE
WITHDRAWN BY THE APPLICANT
USUALLY BECAUSE THEY REALIZE
THEY THERE WERE SOME PIECE
MISSING.
HUNDRED TO WERE DETERMINED TO
BE ON AUTHORIZED THAT MEANS THAT
THE LOCAL JURISDICTION HAD NOT
PROVIDED APPROVAL THIS IS A
JOINT LICENSING. SO THERE IS
THAT RIGHT NOW AS OF THIS
MORNING WHERE THIRTY NINE THIRTY
SIX EXCUSE ME APPLICATIONS IN
THE QUEUE.
OKAY. I'M YOU MADE MENTION ABOUT
WORKSHOPS THREE WORKSHOPS THAT
YOU HAVE THAT THE BUREAU HAS
HOSTED.
OCTOBER TWO THOUSAND SEVEN
TEAMS UP UNTIL JANUARY FEBRUARY
TWO THOUSAND EIGHTEEN HAVE ANY
OF THOSE BEEN IN THE LOS ANGELES
AREA. AND IF NOT ARE YOU
PLANNING ON HAVING SOME THE
WORKSHOPS IN THE LOS ANGELES
AREA.
SO THE THE WORKSHOPS AT THE
BUREAU HOSTED WE DID HAVE ONE IN
LA.
AND WE ALSO HAD ONE AND.
AND IRVINE IN WE WE WE CONTINUE
TO PLAN TO DO THESE WORKSHOPS
THROUGHOUT THE YEAR SO
THROUGHOUT THE YEAR.
AND I KNOW BOTH PUBLIC HEALTH
AND CDFA THEY ALSO DID A
SPECIFIC WORKSHOPS JUST FOR
THEIR.
LICENSEES AND I'LL LET THEM
TELL YOU WHERE THOSE WERE.
ACTUALLY I'M SORRY I DON'T HAVE
THE EXACT LOCATIONS BUT WE
BEHALF I'D BE HAPPY TO PROVIDE
THIS TO YOU OUR REALLY DUNCE TEN
SPECIFIC TO MANUFACTURERS AND I
CAN TELL YOU EXACTLY WHERE THE
LOS ANGELES COUNTY. NO OVERALL I
DON'T HAVE THE LOCATIONS WITH ME
OKAY POLITICS YES. I RIBS A LOS
ANGELES PORTION LOS ANGELES AND
SO FOR ME EDUCATION IS IMPORTANT
AND THESE WORKSHOPS IMPORTANT.
AND THAT WE MAKE SURE THAT THE
PEOPLE SPECIAL LOS ANGELES BEING
SO HEAVILY POPULATED HAVE AN
OPPORTUNITY TO COME AWAY IN
CITIES WORKSHOPS.
AND NOTHAVING THEM ISN'T IS NOT
AN OPTION.
WHERE DOES THE DMV FIT IN ALL
THIS
BECAUSE I HAVEN'T HEARD ANYTHING
TERMS THAT A DMV AND IN TERMS OF
THEIR EDUCATION AND THEIR? BODY
AND.
AS PART THIS PROCESS.
I KNOW THERE'S A PLACE FOR.
CONSUMER TALK ABOUT THE PLACE
THE NASCENT.
ADDITIONAL FOLLOW UP QUESTIONS.
CERTAINLY I MEAN GIVE IT HAS NO
SPECIFIC ROLE IN THE REGULATIONS
I MEAN WE HAD DISCUSSIONS WITH
THEM IN GENERAL ABOUT
ENFORCEMENT ISSUES AND.
WHEN IT COMES THAT LICENSING
AND REGISTRATION BUT WE HAD
OCCASION TO TALK ABOUT THIS.
I'M SURE WE WILL ENCOUNTER%
SITUATIONS THAT MIGHT INFORM
THOSE FURTHER DISCUSSIONS BUT.
I CAN CERTAINLY CHECK IN WITH A
FOLLOW UP TO YOUR OFFICE.
THANK YOU THEIR THREE MILLION
DOLLARS.
THIS IS TO THE HIGH PATROLLING
ALSO COMMISSIONERS AND STANLEY
CONGRATULATIONS ON BEING
COMMISSIONER.
THAT THREE MILLION DOLLARS
BEING SET ASIDE UNDERSTAND THAT
THE.
.
I GUESS THE DISTRIBUTION DID YOU
SAY IS STARTED ALREADY. AMITABH%
DONNA UNDERSTOOD YOU TO SAY.
IS ONE OF YOU.
THAT.
MONIES ARE COMING AND IT THE
EDUCATION IS COMING BUT.
FULL IS NOT FUNDED I'M CONCERNED
BY THAT. ARE BECAUSE WE HAVE A
LAW THAT IS BEING IMPLEMENTED
RIGHT NOW CALIFORNIA. AND I WAS
A FOR PLEASE OPPORTUNITY YOU
KNOW.
EDUCATION IS VERY IMPORTANT TO
LAW ENFORCEMENT SPACE IN THIS
SPACE BECAUSE IS BRAND NEW.
AND THE TRAINING IS VERY
CRITICAL.
TO LAW ENFORCEMENT OR TO MAKE
IT EFFECTIVE ARREST NGUYEN WHEN
CALLED UPON. SO WHAT IS
HAPPENING WITH THE DEPARTMENTS
WHO HAVE YET TO GET THE TRAINING
YET TO RECEIVE ON THE FUNDING
FOR THE TRAIN.
I'LL I'LL TALK ABOUT THAT THE
THREE MILLION DOLLARS WE GOT
SPECIFICALLY FOR THE GRE
TRAINING THAT TRAINING HAS
ROLLED OUT. AND WE TRAINED.
SINCE IT HAS RULED OUT WE
TRAINED AND ADDITIONAL TWO
HUNDRED TWENTY THREE.
DE ARTISTE THROUGHOUT THE STATE
BOTH WITHIN CHP AND OTHER LAW
ENFORCEMENT AGENCIES.
AND THAT TRAINING IS CONTINUING
UNTIL THE END.
INTO THE FISCAL YEAR NOW QUITE
RICH SPEAK.
ADD TO THE OTHER MONIES THAT.
YOU'RE REFERRING TO.
SO THE OTHER THE OTHER FUNDING
POT.
IS THAT THE LARGER POT FOR DO
YOU Y. DE.
ENFORCEMENT EDUCATION TRAINING
FOR NOT ONLY SEES PEOPLE ALL
OFFERS AGENCIES WE'VE BEEN TOLD
IS THAT. THERE WILL NOT BE
FUNDING FOR THAT POT OF MONEY
UNTIL NINETEEN TWENTY.
FISCAL YEAR AND SO IT YOU KNOW
WE WE AGREE THERE'S OF THOSE
THERE'S A LOT MORE MOBILE DO
WHEN THAT MONEY
AS IN. IN THE INTERIM WERE WERE
WERE TRAINING MORE OFFICERS
LIKE.
CREATURE STANLEY DISCUSSED WERE
HAVING A LOT MORE.
.
EDUCATIONAL DISCUSSIONS WITH
OTHER OFFICERS WE HAVE STARTED
THE A PATH DOWN THIS TASK FORCE
THAT WILL INFORM THAT'S COMPOSED
OF LAW LOCAL LAW ENFORCEMENT
REPRESENTATIVES. CRIME LAB
REPRESENTATIVES CRIMINAL AND
SOCIAL GROUP REPRESENTATIVES. TO
HELP US IDENTIFY HOW WE'RE GOING
TO BE SPENDING THOSE FUNDS WHEN
THEY COME AND SO WOULD THERE ARE
THINGS WE ARE DOING. BUT YES WE
ARE WE ARE FORCED WITH THE.
DELAY AND GETTING LARGER PART
OF THE MONEY FOR IT.
THAT CONCERNS ME AYE AYE I'M
ASSUMING THAT THIS BODY PUT THAT
TWO THOUSAND NINETEEN ON
CONDITION OF MONEY IS BEING
RELEASED I GUESS I DON'T KNOW.
BUT IT REALLY CONCERNS BECAUSE
AGAIN.
WHO ARE LAW ENFORCEMENT MANY
WOMEN NEEDS THIS TRAINING SO
THEY CAN EFFECTIVELY AFFECTED
YOUR ARRESTS?
AGAIN WHEN NECESSARY AND TO
HAVE THAT TRAINING THERE DOES.
WORKING BLINDLY IN THIS WEEK IN
THIS SPACE.
SO JUST.
ONCE GET. MORE INFORMATION ON
THIS IS TO.
.
THEY'RE TURNING GENERAL'S OFFICE
OF MISTER GLICKMAN.
YEAH.
BECAUSE OF.
YOU MADE MENTION OF MR SESSIONS.
IN HIS ROLE AND MY COLLEAGUE
WAS CABRIO TALKED ABOUT THE
INTERNAL REVENUE SERVICE.
WHAT IS HAPPENING IN THE SPACE
BY WHICH THE FEDERAL GOVERNMENT
IS STILL LOOKING AT THIS AS THE?
YOU KNOW AS A ILLEGAL SUBSTANCE.
AND WE HAVE A FRAMEWORK WHICH
WAS UNDER THE OBAMA
ADMINISTRATION TO CREATE AND
THEY WOULD NOT.
ENFORCING RAIN THINGS OF THAT
NATURE.
PEOPLE ARE STILL A VERY.
NERVOUS IN THIS SPACE.
BECAUSE THE FEDERAL GOVERNMENT
IS NOT IT.
LOOKING AT OR ALLOWING MORE
HEARING TO.
WHAT WAS DONE PREVIOUS DE IS
THERE AN INDICATION THAT YOU CAN
ARTICULATE TODAY?
?
AROUND THE FEDERAL GOVERNMENT IS
TERMS OF ENFORCING ENFORCEMENT
OF THE FEDERAL REGULATIONS TO
INDICATE THIS IS STILL. UP
AGAINST THE LAW AND IN THE
FEDERAL GOVERNMENT SIZE AND WHAT
IMPACT IS GOING TO HAVE ON THOSE
WHO ARE. LEAGUE LAW ABIDING
CITIZENS WHOSE WORKING AND
WORKING THE SPACE.
CERTAINLY.
THANK YOU SO AS YOU KNOW WHEN
ATTORNEY GENERAL SESSIONS IN
EARLY JANUARY RESCINDED THE
PRIOR GUIDANCE FOR.
FEDERAL LAW ENFORCEMENT AGAINST
CANNABIS CRIMES
IT CREATED A LOT OF UNCERTAINTY
NOT ONLY IN CALIFORNIA BUT IN IN
THE VARIOUS OTHER STATES WITH
REGULATED CANNABIS.
WHAT ATTORNEY GENERAL SESSIONS
DID IS HE DID NOT DICTATING NEW
ENFORCEMENT POLICY DID NOT
DIRECT HIS PROSECUTORS TO GO
AFTER?
CANNABIS CRIMES WITH WHAT HE
DID IS HE HE.
SAID THAT THOSE PROSECUTOR
SHOULD HAVE THE DISCRETION IN
LINE WITH OTHER DEPARTMENT
PRIORITIES TO DO SO. AND SO THE
ULTIMATE IMPACT OF THAT IN
CALIFORNIA AND IN THE OTHER
STATES IS GOING TO DEPEND ON THE
DECISIONS OF THOSE US ATTORNEYS
IN THE STATE. AND AS I MENTIONED
ATTORNEY GENERAL BUT SARAH THE
NEXT DAY AFTER I ATTORNEY
GENERAL SESSIONS WITH THROUGH
THE CALL MEMO. REACHED OUT ALL
FOUR U. S. ATTORNEYS IN THE
STATE AYE TO BEGIN A DIALOGUE
ABOUT WHAT THEIR PRIORITIES MAY
BE AND IF THERE WILL BE ANY
CHANGES IN THEIR PRIORITIES WITH
RESPECT TO CANNABIS ENFORCEMENT.
HOW SINCE THEN THERE'S BEEN A
CONTINUING EXCHANGE OF
INFORMATION BETWEEN OUR OFFICE
AND AND THOSE FOR OFFICES? BUT
THERE'S NOT BEEN YET.
OF THE MEETING THAT WE'RE
PLANNING TO HAVE WITH ALL FOUR
US ATTORNEYS AND SO I THINK
AFTER THAT MEETING WILL HAVE A
MUCH BETTER IDEA OF WHAT THEIR
PRIORITIES MIGHT BE. TO DATE
WE'VE SEEN.
NO CONCRETE CHANGE IN POLICY
EITHER IN CALIFORNIA AND AS I
MENTIONED I I PARTICIPATE IN A
MULTISTATE WORKING GROUP OF
REPRESENTATIVES FROM FROM OTHER.
CANNABIS LEGAL STATES AND
THEY'VE SEEN NOTHING IN IN THEIR
RESPECTIVE STATES TO INDICATE A
YOU KNOW A SEA CHANGE IN FEDERAL
LAW ENFORCEMENT. BUT IT'S
CERTAINLY A YOU KNOW A SERIOUS
CONCERN FOR FOR OUR STATE AND
FOR OUR OFFICE IN PARTICULAR.
SOMETHING WE'RE MONITORING VERY
CLOSELY.
JUST PAUSING CHEST.
SO. AFRICAN AMERICANS LATINOS
HAVE BEEN CERTAINLY
DISPROPORTIONATELY INCARCERATED.
BY POSSESSION DISABUSE OF
CANNABIS.
BUT I'M CONCERNED YOU NOTE.
THAT THE CONVERSATION HASN'T
MOVED FORWARD IN TERMS OF
SUBSTANTIATION. SUMMER ó
FRAMEWORK.
BECAUSE I HAVE A BILL THAT
WOULD CERTAINLY LEVEL PLAYING
FIELD AS RELATES TO THOSE WHO'VE
BEEN RECENT CARCERI WHOSE PAY
THAT THERE'S A DEBT TO SOCIETY
TO COME OUT. AND ALSO BE
ENTREPRENEURS IN THIS SPACE.
AND BECAUSE I THINK THIS IS
OPPORTUNITY FOR. ALL
ENTREPRENEURSHIP IS OPPORTUNITY
FOR.
INDIVIDUALS IN LOW INCOME
COMMUNITIES TO.
TO BECOME CANOERS AND YOU KNOW
AND BE A PART OF THIS NEW A
BALDING INDUSTRY.
AND CONCERNED THAT THIS IS JUST
AN OPPORTUNITY FOR AGAIN FEDERAL
GOVERNMENT ECONOMY AND
CERTAINLY.
TARGET AFTER AMERICA'S A LATINO
BUSINESSES IN THIS SPACE.
AND SO MY QUESTION TO YOU IS IS
SOMETHING GOING TO BE. A
SUBSTANTIATED IN WHICH CAN GIVE
THOSE INDIVIDUALS TO CONVERT TO
MOVE FORWARD IN THIS SPACE
BECAUSE THE VOTERS OF CALIFORNIA
HAS IN FACT APPROVED SUCH TO BE
THE CASE.
I MEAN I THINK WE CAN GIVE THEM
COMFORT IT IN THE SENSE THAT
ATTORNEY GENERAL BUT SARAH IS
FIRMLY COMMITTED TO ENFORCING
AND GIVING EFFECT TO STATE LAW.
AND ANNA HAS HE SHOWN IN
NUMEROUS OTHER POLICY AREAS WILL
STAND TO DEFEND THE WILL OF THE
PEOPLE IN THE WILL OF THE VOTERS
IN CALIFORNIA. AND I THINK THAT
WOULD INCLUDE IF THERE WAS
TARGETED ENFORCEMENT THAT WOULD
CERTAINLY BE SOMETHING THAT WE
WOULD BE VERY CONCERNED ABOUT IT
WOULD WITH AND WOULD BE TAKING A
HARD LOOK AT.
UNFORTUNATELY AS I MENTIONED
WITH RESPECT TO THE IRS
WE CAN'T DICTATE WHAT THE
FEDERAL GOVERNMENT DOES OR
DOESN'T DO IN THE SPACE. WHAT WE
CAN DO IS MONITOR THE SITUATION
ENGAGE WITH THE FEDERAL
GOVERNMENT FIND AREAS OF
COOPERATION THAT?
ALL PARTIES AGREED ARE SHOULD BE
PRIORITIES FOR ENFORCEMENT IN
ORDER TO HOPEFULLY I STAND THAT
THE CONSPIRATORS CONCERNS YOU
RAISE.
THANK YOU.
THANK YOU VERY MUCH AND WE HAVE
NOT MISTER BONTA AND DOCTOR
WOULD NOT JUST ONES P. MINDFUL
OF THE TIME ALSO.
THANK YOU OUR TOLIVER PANELISTS
FOR BEING HERE TO HAVE THE
OPPORTUNITY FOR THIS DIALOGUE
REALLY APPRECIATED THANK YOU FOR
THE UPDATE THANK YOU CELLO FOR
CONVENING US.
APPRECIATE LEADERSHIP. A COUPLE
QUICK QUESTIONS I WANNA START
WITH I'M. A FOLLOW UP WITH
MISTER PARENT FOR YOUR POINTS
ABOUT THAT THE PEOPLE MANIFESTS
IN VERSES THE TRACK AND TRACE
SYSTEM IN SORT OF A TEMPORARY
NATURE OF THAT I UNDERSTAND IT.
AS WE TRANSITION TO THE FOUR
TRACK AND TRACE. CAN YOU TALK A
LITTLE BIT ABOUT HOW.
YOU THINK THE PAPER MANIFEST
SYSTEM COMPARES THE TRACK AND
TRACE SYSTEM WITH RESPECT TO
PREVENTING IN GUARDING AGAINST
DIVERSION.
I'M.
I WOULD SAY THAT THE PAPER
MANIFEST SYSTEM IS.
.
IT'S.
REQUIRING THE SAME ELEMENTS THAT
THE TRACK ENTRY SYSTEM WILL
REQUIRE BUT ALLAH OBVIOUSLY
WITHOUT IT BEING. IN AN
INTEGRATED ELECTRONIC SYSTEM
THAT MULTIPLE AGENCIES HAVE
ACCESS TO IT DOES LIMIT US A
BIT.
DURING THIS PAPER NAM PROCESS
AND WE. WE HAD THAT WAS ANOTHER
THING THAT WE HAD DISCUSSED BACK
AND.
SEPTEMBER AND OCTOBER BUT ALSO
WORKING WITH THE.
THE BUREAU AND WORKING WITH LAW
ENFORCEMENT TO ALLOW THEM TO
HAVE ACCESS TO THAT INFORMATION
IN THE EVENT THAT THE TO PULL A
VEHICLE OVER.
.
WITH REGARD TO PREVENTING
INVERSION DIVERSION AND AYE I'LL
JUST SAY EVEN WITH THE TRACK AND
TRACE SYSTEM. THAT STILL IN
THERE A A SYSTEM THAT CONTAINS
DATA THAT ALLOWS YOU TO.
LOOK FOR ANOMALIES AND AND.
THINGS AT FLAG FOR ALERTS.
BUT.
IT'S REALLY ALSO IT'S CRITICAL
TO HAVE A STRONG ENFORCEMENT
PROGRAM BOOTS ON THE GROUND.
TO MAKE SURE THAT THE LICENSEES
ARE COMPLYING SO THAT'S THAT'S
THE OTHER COMPONENT THAT WILL
COMPLEMENT THIS PAPER PROCESS IS
OUT US OUT THERE DOING
INSPECTIONS DURING THIS TIME TO.
GREAT THANK YOU.
AND.
SORT OF ALONG THOSE LINES IS
THERE ANYTHING THAT WE COULD DO
WAS THE LEGISLATURE INCLUDING. A
BUDGET ALLOCATION TO HELP SPEED
ALONG IMPLEMENTATION OF OF TRACK
AND TRACE I KNOW THE PAST WHEN
CAPITAL HAS BEEN A PROBLEM.
WE'VE WE'VE TAKEN SOME LOANS OFF
OF FUTURE REVENUE THAT WILL BE
GENERATED THROUGH THAT.
REGULATORY REGIME OR WE'VE EVEN.
.
AT BEEN WILLING TECH CONSIDER.
IT A BUDGET ALLOCATION SO.
I WANT US KIND OF THINK
CREATIVELY A NOT THAT I THINK
YOU CAN HEAR THE PEOPLE WANT
TRACK AND TRACE UP SOON AS
POSSIBLE WE UNDERSTAND THAT
CHALLENGES THAT YOU'RE FACING.
CAN WE HELP YOU OF AVOID THE
CHAO OVERCOME THOSE CHALLENGES.
I'M WE HADN'T TALKED ABOUT THAT
WE CAN CERTAINLY DISCUSS IT AND
AND COME SEE IF THERE'S ANY
IDEAS THAT WE CAN COME UP WITH
THAT MORE THAT COULD BE OF
BENEFIT.
SO WON'T WHEN AND WE MEET
REGULARLY AT THE THE LICENSING
AUTHORITIES.
SO WE CAN DEFINITELY DISCUSS
THAT.
OKAY.
THANK YOU I ALSO WANT TO ASK IS
A LITTLE BIT ABOUT.
MAKING SURE THAT WE ARE.
ALLOCATING ENOUGH ENFORCEMENT
REVENUE TO ADDRESSING THE
BLOCKING GRAY MARKET ISSUES I I
FEEL A LOT.
OF THE SAME WAY THAT I KNOW MR
LACKEY FEELS ABOUT. HOW WE START
THIS PROCESS IS REALLY
IMPORTANT?
WE HAD ISSUED LICENSE ON
LETTUCES ON JANUARY FIRST WALLET
WHILE THE WEAR THAT.
AB. AND WE'VE SORT OF ENTERED
INTO THIS GRAND BARGAIN WITH
THE CANNABIS INDUSTRY AND WE
SAID IF IF YOU COME OUT OF THE
SHADOWS AND INTO THE LIGHT AND.
EMBRACE A REGULATED MARKET AND
FOLLOW ALL THE RULES AND PAY
YOUR TAXES AND CREATE GOOD JOBS.
YOU CAN BE PART OF.
.
THAT THE NEW.
SET OF RULES REGULATIONS AROUND
CANNABIS IN CALIFORNIA.
PART OF THAT SAME.
GRAND BARGAIN IS THAT THOSE WHO
DON'T.
THOSE WHO PARTICIPATE IN THE
BLACK GRAY MARKET CAN'T BE PART
OF.
THE NEW ALBUM CANNABIS SYSTEM IN
CALIFORNIA AND SO.
PARTICIPANTS IN THE BLACK GRAY
MARKET CAN UNDERCUT THOSE.
IN IN THE TIME REGULATED MARKET.
WE KNOW THAT LICENSES AND FEES
ARM.
OUR ANTI TAXES ARE EXPENSIVE.
IN THE REGULATED MARKET BUT NOT
SO MUCH IF YOU'RE IF YOU'RE NOT
FOLLOWING THE RULES IN THE IN
THE BOTTOM GRAY MARKET SO WHAT
CAN WE DO TO MAKE SURE THAT.
THAT THOSE WHO.
EXCEPT THIS
BUT IT THIS SORT OF SOCIAL
COMPACT OF THIS BARGAIN AND AND
AND EMBRACE THE REGULATED MARKET
FEEL COMFORTABLE.
THAT DOING SO WILL NOT LEAVE
THEM UNDERCUT BY THE BLACK GREY
MARKET WOULD WE NEED TO DO TO.
PROVIDE SUFFICIENT ENFORCEMENT.
FOR ONE.
AND SECONDLY I DON'T ALONG
QUESTION.
WE KNOW THAT THERE ARE SOME
COMPANIES THAT ARE.
ADVERTISING ON LICENSE BIZ
UNLICENSED BUSINESSES.
WHAT WE DO IS A STATE TAX?
I'M STOP THAT.
GOOD MORNING.
SO WE'VE ALREADY ALL THREE OF
US HAVE ALREADY ALL THREE
LICENSING AUTHORITY IS THE START
OF OUR ENFORCEMENT EFFORTS ON.
AND WE ARE OF COURSE OF FOCUSING
ON MAKING SURE STAFF MEANS
APPROPRIATE FOR THE ENFORCEMENT
OUT THERE A WINDING THE BUREAU
IS ALREADY. NOT ONLY ARE WE
GOING OUT TO THE LICENSED
PREMISES AND DOING INSPECTIONS
WERE ALSO GETTING A LOT OF
INFORMATION FROM THE FOLKS THAT
ARE IN THEM LICENSE MARKET TO
TELL US WHO IS OUT THERE
OPERATING ILLEGALLY.
BUT WE'RE ALSO HAVING FOLKS
THAT ARE GOING ON THESE INNER
WITH IT YOU KNOW THAT WEBSITES
AND COLLECTING DATA. YOU KNOW
SEEN WHO'S ON THERE AND SEEN
WHOSE LICENSE TO USE DISPLAYING
THEIR LICENSE NUMBER WE ARE
FOLLOWING UP WITH EMAILS LETTERS
AND WE ARE PHONING THEM. AND
TELLING THEM HATE YOU EITHER YOU
NEED TO GET LICENSED AND AND WE
ARE OF GOD OF A HUGE RESPONSE OF
PEOPLE. ARE SAYING I I DIDN'T
KNOW WHERE TO START I DIDN'T
KNOW HOW TO GO ABOUT GETTING IT
SO WE ARE WE ARE AYE CASE I WAS
SAYING I KNOW WE ARE IN WEEK
EIGHT OF LICENSING SO WE'VE BEEN
REALLY TRYING HARD TO FOCUS ON.
EDUCATING THE COMMUNITY AT LARGE
WHETHER IT'S OUR LICENSEES ARE
THE UNLICENSED FOLKS BUT THEN
WE'RE GOING TO HAVE TO FOLLOW IT
UP THOSE THAT ARE. COMING INTO
COMPLIANCE BECAUSE WE'RE KEEPING
THOSE THOSE THAT THAT DATA AND
WE YOU KNOW IT'S GONNA HAVE TO
BE SOME STRONG SWIFT
ENFORCEMENT.
DO YOU FEEL LIKE YOU HAVE THE
SUFFICIENT RESOURCES TO TO GET
THE JOB DONE.
I I DO I I FEEL THAT THIS IS
ALSO A PARTNERSHIP WITH THE
LOCAL JURISDICTIONS TO AN AND
WE'VE BEEN DOING A LOT OF
COORDINATING WITH THEM A LOT OF
EDUCATION HAVING ARE ENFORCEMENT
FOLKS ARE. YOU KNOW GO OUT AND
TALK TO LOCAL LAW ENFORCEMENT ON
BECAUSE I THINK THIS IS A
PARTNERSHIP WITH THEM I THINK IT
IT TAKES BOTH OF US GOT WORKING
TOGETHER TO GET THIS DONE AND I
THINK YOU'RE SEEING THAT. AS I
THINK AS NOW IT'S BECOME CLEAR
THAT PEOPLE HAVE TO HAVE A STATE
LICENSE I THINK IT'S CLEAR TO.
TO ALSO THE LOCAL AUTHORITIES
BECAUSE YOU HAVE TO BE APPROVED
THROUGH THERE YOU HAVE TO BE
APPROVED OF THE STATE SO I THINK
LAW ENFORCEMENT NOW HAS A CLEAR
IDEA OF. IF YOU DON'T OF YOUR
AND YOU NEED TO BE LICENSE SO I
THINK.
YOU KNOW AS AS AS WE FINALIZE
THOSE REGULATIONS ARE LICENSING
REQUIREMENTS I THINK THAT'S ALSO
HELPED TO.
SORRY IF I MISSED IT WOULD.
DID YOU JUST ADVERTISING
COMPONENT TO FOR FOR BUSINESSES
THAT ARE ADVERTISING.
IT YOU YOU'RE YOU'RE GETTING
WORD BACK ON THAT AND THEN
SENDING OUT LETTERS IS THAT WHAT
I HEARD YEAH WE WE'RE GOING
RIGHT NOW LOOKING AT THESE
INTERNET EAT BECAUSE THERE THERE
THERE'S A VARIETY OF INTERNET
PLATFORMS OUT THERE THAT.
FOLKS ARE ADVERTISING SO WE ARE
GOING THROUGHFIGHT LOOKING THEM
YOU KNOW LOOKING AT I'M GIVING
HIM A CALL SENDING ME MAILS
LETTERS AND SOME OF THEM ARE
ACTUALLY LICENSE THEY JUST IN
REALIZE THEY HAVE TO HAVE THEIR
LICENSE NUMBER ON THERE. OTHERS
OBVIOUSLY AREN'T LICENSE AND
WERE BEING VERY CLEAR OF WHERE
WE'RE FINDING THEIR
ADVERTISEMENT.
WE FOUND YOU HERE WHERE YOU
KNOW YOU NEED TO HAVE A LICENSE
AND SO.
WEEKS THAT'S OUR FIRST DOT
THAT'S THE FIRST STEP OF THE
PROCESS IS REALLY LETTING THEM
KNOW. PUTTING THEM ON NOTICE AND
THEN. OF FOLLOWING UP.
SO YOU TO FOLLOW UP THROUGH FULL
LICENSURE.
FOR THOSE THAT DIDN'T KNOW WHERE
WERE NOWHERE YEAH WE WE JUST
STARTED THIS.
LAUGHS.
IN THE LAST COUPLE WEEKS SO YES
IT'S.
IT'S THEN MAKING SURE WE HAVE
RECORDS ON WHO WE'VE NOTIFIED
WHAT.
HOW WE NOTIFIED THEM WHAT WE
YOU KNOW WHAT OUR CONVERSATION
WAS AND THEN FOLLOWING UP WITH
THEM?
THANK YOU THINK MISTER CHAIR
BECAUSE BONTA DOCTOR BUT.
THANK YOU AND I THAT'S WHAT A
FOLLOW UP ON THAT QUESTION I'M I
HAVE SOME OTHERS
SO YOU'RE TALKING ABOUT GOING
OUT AND AT THE PEOPLE WHO. ARE.
ARE MAYBE NOT THE LICENSE THAT
OUR ADVERTISING WHAT ABOUT THE
PORTALS THEMSELVES THAT ARE
CONDUCTING THE ADVERTISED ARE TO
BE EDUCATED THEM ABOUT.
DO THEY HAVE PROTOCOLS FOR
SCREENING PEOPLE HOW ARE YOU HOW
ARE YOU DOING THAT DO THEY HAVE
ANY RESPONSIBILITY AT ALL TO
MAKE SURE THAT HE PEOPLE THAT
THEIR ADVERTISING FOR OUR
LICENSED.
YEAH I THINK THE STATUTES UP
VERY CLEAR THAT THEY'RE
RESPONSIBLE TO MAKE SURE THE
PEOPLE THAT THEY ARE ADVERTISING
HAVE A LICENSE NUMBER SO WE HAVE
A DEBT.
WE HAVE IDENTIFIED SOME OF
THOSE INTERNET PLATFORMS AND WE
HAVE FOLLOWED UP WITH THEM WITH
THE LETTER A STEAM MAKING SURE
THEY UNDERSTAND WHAT THE STATUTE
SAYS WHAT'S THE REQUIREMENTS.
AND.
MAKING THAT CLEAR AND AGAIN
LIKE I SAID I THINK IT STARTS
FIRST WITH. PUTTING THEM ON
NOTICE IN EDUCATING THEM AND
THEM AND FOLLOWING UP ON.
AND MAKING SURE THAT.
THEY'RE COMPLYING.
VERY MUCH.
EVER READY QUESTIONS AND I KNOW
WEEK WE'RE STILL SHORT ON TIME
SO BE A BE A PRETTY QUICK.
NO CDFA YOU HAD HAD A STUDY IN
TWO THOUSAND SIXTEEN STUDY
MENTION WE HAD ABOUT. PRODUCTION
ABOUT THIRTEEN AND A HALF
MILLION POUNDS OF CANNABIS
BUT CONSUMPTION OF PRODUCTION TO
THIRTEEN AND HALF MILLION BUT.
CONSUMPTION IN CALIFORNIA IS
ONLY ABOUT TWO AND HALF MILLION
SUCH A BIG GAP THERE.
AND THERE WAS A LOCAL AGENCY
IMPLEMENTATION WORKSHOP IN
DECEMBER. WHERE WAS SAID THAT
ILLEGAL OPERATIONS WILL BE BIRTH
BE REFERRED BACK TO LOCAL
GOVERNMENTS IS THAT YOUR POLICY
TO REFER BACK? AND IF SO HOW
WERE LOCAL GOVERNMENTS GOING TO
HAVE THE RESOURCES AND SO AND
AND THE ABILITIES. TO CRACK INTO
SOME THESE MULTI STATE MULTI.
CARTELS THAT ARE RUNNING SOME
THESE OPERATIONS.
AND SO I THE IT THAT WAS A YOU
SAID THERE WAS A COMMENT MADE IT
ONE OF THE LIFE IS LOWER LATENCY
IMPLEMENTATION WORKSHOP OKAY.
.
I'M NOT I'M I'M BOYS AND I'M NOT
AWARE OF THAT BUT I.
IF WE ARE MADE AWARE OF.
YOU'RE SAYING ILLEGAL GROWS
ISN'T.
IT SAID BASICALLY THAT IN WHERE
WAS SAID THAT LEE ILLEGAL
OPERATIONS WOULD BE PREFERRED
BACK TO LOCAL GOVERNMENTS AS OUR
LOCAL GOVERNMENT SUPPOSED TO
HANDLE THAT. HANNAH AND THAT MAY
HAVE.
IT MAY HAVE JUST BEEN AS THE
FEDERAL SEE THEM WILL KNOW OURS
SO IF IF WE ARE FOR INSTANCE ON
THIS THIS TIP LINE THAT WE HAVE
IF WE RECEIVE INFORMATION WE'RE
GOING TO FOLLOW UP ON IT. WE'LL
SEE IF THEY'RE LICENSED WITH US
IF THEY'RE NOT.
WE'RE GONNA BE EDUCATING COME
BUT IF IT.
IF IT'S A MATTER WHERE WE DO
NEED TO REFER TO LOCAL LAW
ENFORCEMENT OUR LOCAL.
LOCAL AGENCIES WILL BE WORKING
IN COOPERATION WITH THEM WE AT
CFA OUR INSPECTORS ARE NOT
CERTIFIED PEACE OFFICERS WERE
NOT LAW ENFORCEMENT. SO WE DON'T
HAVE THAT SAME POWERS AS LOCAL
LAW ENFORCEMENT BUT WE WOULD BE
REFERRING INFORMATION AND
WORKING WITH THEM AND
COOPERATING TO THE TO THE BEST
EXTENT THAT WE CAN.
AND
STATE AGENCIES AS WELL OR JUST
LOCAL YES IS STATE AGENCIES AND
LOCAL ANY OF THEM THAT WE WOULD
BE AND AND ARE WE HAVE. WE DO
HAVE PLANS TO.
WERE CURRENTLY IN THE PROCESS
OF EDUCATING LOCAL JURISDICTIONS
WORKING WITH THEM.
AND ALSO THE OTHER STATE
AGENCIES AND WORKING WITH THESE
I'M FORMING ENFORCEMENT
PARTNERSHIP SO THAT WE HAVE.
A VAST NETWORK.
AT THE DIFFERENT AGENCIES MORE
WE CAN CONTACT REFER MATTERS IF
IF THEY ARE. OUTSIDE OF OUR
PURVIEW OR IF THEY'RE PARTLY
OURS AND INVOLVE OTHER AGENCIES
WHILE.
SO YOU YOU MENTIONED IN YOUR IN
YOUR TESTIMONY HAVE THANK YOU
SAID YOU'VE ISSUED FIFTEEN
HUNDRED AND EIGHTY SIX LICENSES
AS OF. EIGHT AM TODAY.
.
ACCORDING TO THE DATE YET SO
THAT'S THAT WOULD BE LIKE A
COUPLE HOURS AGO YES SO THOSE
ARE CULTIVATE THOSE ARE FIFTEEN
HUNDRED EIGHTY SIX CULTIVATION
LICENSE AND HE ICE CULTIVATION
LICENSES SO SOME ESTIMATES ARE
THAT OUR SON ARTICLE THIS
MORNING SIXTY EIGHT. THOUSAND
CULTIVATORS
THAT'S ABOUT TWO PERCENT.
.
WE GOT A WAYS TO GO OBVIOUSLY
CORRECT IN IT YOU KNOW AND I
THINK THAT SOME OF IT.
THAT THE KEY THING IS THAT
BEFORE WE CAN ISSUE THE STATE
TEMPORARY LICENSE THE APPLICANT
DOES NEED TO HAVE LOCAL APPROVAL
AND IN SOME CASES THAT IS WHERE
THE.
THEY ARE IN SOME CASES THE
APPLICANTS WAITING ON LOCAL
APPROVAL SO WE DO HAVE A LONG
WAY TO GO.
AND I'M KIND OF JUMPING AROUND
HERE SO SOME LOCAL THERE ARE
SOME LOCAL TRACK ENTRY SYSTEMS
FOR EXAMPLE HUMBOLDT COUNTY ONE
HAS ONE WILL THAT BE ABLE TO
INTEGRATE WITH THE STATE OR
HOUSE SECOND WORK. YES SO AND
WERE WERE ACT WE'RE LOOKING AT
THAT WE'RE TALKING WITH THE
LOCAL JURISDICTIONS.
IT.
WE'RE TRYING TO FIGURE OUT THE
FOR INSTANCE A LOCAL.
THE THE LOCAL TRACK AND TRACE
SYSTEM WON'T.
THEY'RE NOT NECESSARILY USING
THEIR THEY'RE NOT USING THE
STATE. RFID TAGS AND THAT'S
GOING TO BE ONE OF THE KEY
COMPONENTS FOR THE STATE'S
SYSTEM. SO WE WE ARE GOING TO
ALLOW WHAT WE WOULD CALL THEM.
.
LOCAL.
.
THIRD PARTY VENDOR INTEGRATION
WITH OUR SYSTEM TO BE ABLE TO.
LIKE INTERFACE BUT WE'RE STILL
TRYING TO FIGURE OUT WHAT IT IS
THAT A LOCAL TRACK ENTRY SYSTEM
WOULD BE ABLE TO.
PROVIDE THE STATE TRACK ENTRY
SYSTEM THAT THE GOAL IS.
WE OBVIOUSLY DON'T WANT THE
LICENSEE TO HAVE TO DUPLICATE
EFFORTS
AND SO WE WILL BE WORKING WITH
THOSE THOSE LOCAL JURISDICTIONS
ON. ANY AREAS WHERE WE CAN
PREVENT AN OVERLAP ADJUDICATED
DUPLICATION OF EFFORTS BUT WE'RE
JUST NOT SURE WHAT THAT'S WHAT
THAT'S GONNA LOOK LIKE GET.
.
WHERE THE CONCERNS?
SURELY. I KNOW IF I KNOW YOU'VE
HEARD THIS.
THERE'S THERE'S NOW THERE'S
COME ABOUT THERE'S A LACK OF A
CUMULATIVE CULTIVATION CAP.
NOW.
SO YOU CAN SEE THE FAA ISSUED
AND HE AYE ARE.
THAT INDICATED THERE WOULD BE A
ONE ACRE CAP.
YET VERY SHORTLY AFTER THAT.
WHEN THE REX CAME OUT.
IT WAS VERY CLEAR THAT.
AN INDIVIDUAL OR GROUPS.
OBTAIN AS MANY TYPE TO LICENSES
AS THEY WANTED TO.
EXPENSIVE OBVIOUSLY.
BUT. IN THE SPIRIT OF PROP SIXTY
FOUR WHICH PROMISED. AN
OPPORTUNITY FOR SMALL GROWERS
TO GET. A FOOTHOLD GET INTO THIS
MARKET.
THAT BLEW A HUGE HOLE IN THAT
OPPORTUNITY.
SO CAN YOU EXPLAIN THE LOGIC
BEHIND THAT BECAUSE THE PROMISE
TO THE VOTERS.
AND THE PROMISED TO THE GROWERS
AND AND THE FOLKS AT WORK ON MC
ARE AT SAY.
WAS THAT THERE WOULD BE AN
OPPORTUNITY FOR SMALL GROWERS
AND THE VAST MAJORITY OF
GROWERS.
TWENTY FIVE HUNDRED SQUARE FEET
OR LESS.
SO THIS ALLOWS THE OPPORTUNITY
FOR LARGELY CAPITALIZE PEOPLE TO
COME IN. AND AND TAKE THIS
MARKET. AWAY FROM THE PEOPLE WHO
HAVE BEEN DOING THIS FOR YEARS
SO.
THERE'S A DISCONNECT HERE AND
I'M JUST.
CAN YOU EXPLAIN THAT.
AND A DOCTOR WOULD I I I.
APOLOGIZE THAT I CANNOT ANSWER.
BECAUSE THIS IS SUBJECT OF
CURRENT LITIGATION MY LEGAL
COUNSEL AT CDF PHASE THAT HAS
ADVISED ME THAT I'M NOT ABLE. TO
DISCUSS THE MATTER IN RESPONSE
CONTENTIOUS AYE WAY BECAUSE I
THESE QUESTIONS WERE ASKED
BEFORE LITIGATION.
BEFORE LITIGATION ANYONE
ANSWERED.
AND I'VE I APOLOGIZE AND I'M
UNABLE TO ANSWER THEM TODAY BUT
OUR GENERAL COUNSEL HAS ADVISED
ME THAT I AM NOT. ABLE TO DO TO
DISCUSS IT TODAY.
OKAY.
WITH C..
ONE OTHER LAST QUESTION HERE.
A COUPLE.
DOCTOR SMITH.
.
THE STATUS OF TYPE ES LICENSES.
YOU NOT MANDATED TO DO THAT I
UNDERSTAND BUT YOU INDICATED YOU
WERE GOING TO DO YES WERE
ACTIVELY WORKING ON THOSE RIGHT
NOW WE ARE.
ANTICIPATING RELEASING
EMERGENCY REGULATIONS IN THE
NEAR FUTURE.
GREAT THANK YOU.
AND THIS TO MR OF MR GLICKMAN.
.
YEAH ONE OF THE CONCERNS THAT I
HAVE HAD A NIGHT IT'S REASON
LIKE STARTED WORKING ON THIS
ISSUE WHEN I FIRST CAME TO THE
LEGISLATURE WAS.
THE THAT DAMAGE TO THE
ENVIRONMENT FROM ON REGULAR HERE
ON UNLICENSED UNREGULATED ROW
GROWS AND.
WE'VE SEEN THAT.
AND YOU CAN ASK THEIR VARIOUS
STATE AGENCIES LOCAL AGENCIES
WHO ARE AWARE OF THIS.
THE USE OF LLC'S BEING. USED TO
SHIELD BAD ACTORS I MEAN LAYER
UPON LAYER UPON LAYER TO THE
POINT WHERE YOU CAN'T. GET TO
THE RESPONSIBLE PARTY FOR THAT
IN WE AND YOU KNOW WE'VE HEARD
AND I'M NOT THE EXPERT ON THIS
BUT I KNOW THAT THEIR PEOPLE
THAT ARE THAT. THAT THIS IS
BEING USE A SHIELD HOW STATE OUT
OF COUNTRY. PEOPLE WHO WERE
REALLY QUITE FRANKLY.
DESTROYING OUR ENVIRONMENT.
.
IS THERE AN APPROACH AT SOME
POINT I THINK WE TALKED WE MET
WE TALKED WITH THE.
GENERAL ABOUT THIS HOW WE GO
AFTER THESE BAD ACTORS WHEN YOU
HAVE WE'RE TRYING ON THE OTHER
HAND.
TO ENCOURAGE PEOPLE TO COME INTO
COMPLIANCE AND YET THERE'S BEEN
A HUGE PROLIFERATION OF THIS
ACTIVITY IN THE LAST YEAR SINCE
ACTUALLY SINCE THE PASSAGE OF
PROP SIXTY FOUR.
HOW DO WE DO THAT? WE'VE GOT
PEOPLE IT'S EXPENSIVE IT'S IT'S
CHALLENGING FOR PEOPLE OF NEVER
DONE ANY OF THESE ACTIVITIES TO
DO THAT.
HOW DO WE?
WHAT WE DO TO TO MAKE THIS FAIR
FOR THE PEOPLE WHO ARE TRYING
TO?
BE GOOD GOOD MEALBUSINESS
PEOPLE AND AND COMPLY WITH STATE
LAW. NOW I I THINK YOU'RE
ABSOLUTELY RIGHT IT'S IT'S A
SIGNIFICANT CHALLENGES IN THESE
INCREASINGLY COMPLEX CRIMINAL
ORGANIZATIONS ARE NOT UNIQUE TO
CANNABIS WHAT IS UNIQUE ABOUT
CANNABIS. IS IT HAS THE LEGAL
MARKET.
THAT THOSE PEOPLE ARE DIRECTLY
IMPACTING IT'S AN ISSUE I I
BELIEVE YOU REYES WITH OUR
OFFICE AND AND WE'RE ACTIVELY
LOOKING AT OUR OWN RESOURCES.
YOU KNOW WE DO FINANCIAL FRAUD
PROSECUTIONS AND THINGS OF THAT
NATURE THAT THAT WE MIGHT BE
ABLE TO PULL RESOURCES FROM
THERE OR LEVERAGE SOME OF THE
RESOURCES THAT THE EXPERTISE
THAT THEY HAVE TO ASSIST THE
LOCAL JURISDICTIONS. BUT IT'S A
VERY COMPLEX PROBLEM AND I AND I
THINK YOU KNOW THE ENVIRONMENTAL
IMPACT.
THAT'S
TIED INTO ALL OF THIS.
ONE THAT'S ONE AREA WE'VE
IDENTIFIED AS A POSSIBLE
OPPORTUNITY
COOPERATION WITH THE FEDERAL
GOVERNMENT.
LAST FALL I ATTENDED A
CONFERENCE WITH THE EASTERN
DISTRICT HERE HERE IN
SACRAMENTO.
ALL ABOUT THEIR FEDERAL
PROSECUTION.
EXCUSE ME OF ENVIRONMENTAL
CRIMES AND SO THAT IS A FOCUS
PRE RECESSION OF THE CALM OF
THAT WE ANTICIPATE WILL BE A
CONTINUING FOCUS FOR THE FEDERAL
GOVERNMENT. AND THEY OBVIOUSLY
HAVE THE MANPOWER AND RESOURCES
THAT COULD HOPEFULLY ASSIST AND
UNTANGLING THESE COMPLEX
BUSINESS ARRANGEMENT.
BUT SHORT ANSWER IS IT'S A
COMPLEX PROBLEM ONE WERE AWARE
OF AND ONE WERE ACTIVELY WORKING
TO SOLVE DESERVES SOMETHING YOU
NEED FROM THE LEGISLATURE FOR
THEM. UP THERE MAY WELL BE I I
DON'T HAVE IT TODAY BUT I.
EXPECT THAT WE WE IF THERE IS
WILL CERTAINLY YOU KNOW WE
APPRECIATE THE SUPPORT.
GREAT THANK YOU AND THEN THE
FINAL QUESTION TO YOU ACTUALLY
IS THE FOUR U. S. ATTORNEYS.
SOME OF THEM ARE INTERIM OR
THEY HAVE THEY ALL CONFIRMED HER
THING.
I NEED THEM CONFIRMED I BELIEVE
NONE OF THEM ARE YOU CONFIRMED
AT THIS POINT.
TO HAVE NOW BEEN FORMALLY
NOMINATED ONE JUST THIS MORNING.
HEAD OF THE CENTRAL DISTRICT
AYE NICKEL HANNAH WAS NOT
OFFICIALLY NOMINATED BY
PRESIDENT TRUMP THIS MORNING.
ALSO THE SOUTHERN DISTRICT I
BELIEVE HAS BEEN.
OFFICIALLY NOMINATED THE OTHER
ONES ARE ACTING IN INTERIM OR
ACTING CAPACITY.
AN INTERIM APPOINTMENT IS ONE
THAT'S DONE BY ATTORNEY GENERAL
SESSIONS AND HAS AN EXPIRATION
DATE.
WHERE THEY CAN ONLY STAY IN
THAT POSITION I THINK FOR A
HUNDRED AND TWENTY DAYS?
AND WITH THE IDEA THAT THE
PRESIDENT WOULD THEN NOMINATE
THEM AND THEY GO THROUGH THE
FORMAL PROCESS TYPICALLY. AND
THEN IN THE NORTHERN DISTRICT
THERE WAS RETIREMENT AND SO
THERE'S AN ACTING U. S. ATTORNEY
IN THE NORTHERN JUST.
AND NO NOMINEE AT ALL
SO CONVERSATIONS WITH THESE FOUR
MIGHT. NOT REALLY GIVE CLEAR
RESOLUTION BECAUSE THEY MAY NOT
ULTIMATELY BE CONFIRMED RIGHT.
YEAH I THINK THAT'S ONE OF THE
REASONS THAT YOU KNOW IT'S BEEN
A A MONTH AND A HALF ROUGHLY
SINCE THE COLEMAN WAS RESCINDED
AND THAT'S THAT'S ONE OF THE
REASONS DIRT THEY'RE STILL
TRYING TO GET. VERY MUCH TRYING
TO GET THEIR OWN DUCKS IN A ROW
AND UNDERSTAND THEIR ROLE AND
THAT THE DIRECTIONS FROM ABOVE
AND SO I I THINK THAT IT THAT IS
AN ISSUE BUT. YOU KNOW THIS WILL
BE A ONE AND DONE MEETING WE HAD
WE ANTICIPATE AN ONGOING
DIALOGUE WITH THE FEDERAL
PROSECUTORS MAKE YOU THANK YOU.
THANK YOU VERY MUCH THANK YOU TO
EVERYONE APPRECIATE APPRECIATE
THE HARD WORK I I CAN ONLY I CAN
ONLY IMAGINE THE DIFFICULTY.
AND THAT'S ON CONSIDERING THE
TIMELINE TO PUT ALL THIS
TOGETHER SO I WHILE WHILE WERE
POINTED IN OUR QUESTIONS HERE I
DON'T BITE WE CAN'T STATE ENOUGH
HOW DIFFICULT THE CHALLENGE HAS
BEEN FOR YOU AND. AND APPRECIATE
THE WORK THAT THAT YOU'RE ALL
DOING HERE SO ON BUT IT'SIT'S A
IT'S A BIG NUT TO CRACK.
THANK YOU VERY MUCH DOCTOR WOULD
ALSO LIKE TO ECHO THOSE COMMENTS
IN SUMMARY OF THE CONVERSATIONS.
THAT WE'VE HAD COLLECTIVELY I
THINK IT'S DIFFICULT FOR MEMBERS
OF THE PUBLIC TO IDENTIFY THE
DISTINCTION BETWEEN THAT OF THE
VOTER INITIATIVE. AND THAT OF
WHAT WE'RE DOING HERE IN THE
STATE LEGISLATURE AND THEY JUST
SEE A SIMPLY AS GOVERNMENT AND
SO WITH THE OPPORTUNITIES TO
ADDRESS THIS. IS SIGNIFICANT AND
WHAT YOU HAVE HEARD FROM A
NUMBER OF OUR COLLEAGUES IS A
DEEP PASSION THAT TO GET THIS
RIGHT.
MOST CERTAINLY BY THE
RECOGNITION OF SO MANY OF YOU AT
THE DICE IT IS DIFFICULT WHEN
THERE ARE SO MANY DIFFERENT
ENTITIES. AT HAND AND SO WE ARE
ATTEMPTING TO ADDRESS THESE
ISSUES COLLECTIVELY I HAD A
NUMBER OF QUESTIONS BUT JUST ONE
TO KEEP JUST ONE A VERY BRIEF
WHICH IS RESPECT TO
ADVERTISEMENTS AGAIN. AND
PERHAPS IT WILL BE LOWER AND
MISS AJAX MR PARA OR A DOCTOR
SMITH WAS RESPECT ADVERTISING.
BUT EVEN AND JUST IN THIS.
SACRAMENTO. NEWS AND REVIEW.
A AND THIS IS AS OF.
THURSDAY FEBRUARY EIGHTH.
ARE AND JUST ON ONE PAGE ON PAGE
FORTY FOUR.
WE HAVE FOUR ADVERTISEMENTS
HERE AND A THREE OF THE FOUR.
DO NOT HAVE THE PROPER
DISCLOSURE OF THEIR LICENSE.
THREE OUT OF FOUR AND THIS IS AS
OF JUST FEBRUARY EIGHTH.
AND SO THIS IS THE COMPLETE.
DISREGARD AND GROSS NEGLIGENCE
OF THE RESPECT OF THE LAW AND
WE'RE TALKING ABOUT THE
IMPORTANCE OF. OF THE
IMPLEMENTATION OF THOSE GOOD
ACTORS.
THIS IS NOT IT ENDEAVOR AND
SUBJECT THE APPROPRIATE TYPE OF
ENGAGEMENT AND SO WHAT WHO OF
THE THREE.
IS FOCUSED ON. THE ENFORCEMENT
AND ALSO SAY WE WE ALSO TOOK A
LOOK AND VISIT JUST PLAYING
AROUND WITH SOME OF THE
ADVERTISING THAT WE SAW AND
ENTERED IN THE APPROPRIATE
LICENSE.
AT WHICH WE FOUND THAT SOME OF
THEM WERE FICTITIOUS.
SO HOW DO WE ENSURE THAT AND
YOUR WORDS YOU MENTIONED STRONG
AND SWIFT ENFORCEMENT AND AGAIN
THIS IS A COLLECTIVE EFFORT
WE'RE TALKING ABOUT US AS A
GOVERNMENT BODY.
SO THAT WOULD BE THE BUREAU'S
RESPONSIBILITIES TO.
REGULATE THE ADVERTISING AND
AND YOU'RE RIGHT ITS ITS VAST
IT'S NOT JUST UP PRINT IT'S IT
SAW BILLBOARDS AND INTERNET
PLATFORMS. US SO AGAIN ONE OF
THE THINGS THAT IS COMING OUT OF
THE CANNABIS ADVISORY COMMITTEE
IS THERE IS AN ENFORCEMENT
SUBCOMMITTEE AND WHAT CAME OUT
OF IT LAST WEEK WAS OF PERHAPS.
YOU KNOW DOING DEDICATED
ENFORCEMENT JUST FOR ADVERTISING
AND SO I THINK IT'S IT'S TAKING
A LOOK AT OUR RESOURCES AND AND
WE'RE ALREADY DEDICATING A LOT
OF OUR ENFORCEMENT STAFF JUST ON
THIS ADVERTISING BECAUSE IT IS
THAT IMPORTANT TO BECAUSE YOU'RE
RIGHT IT. IT IS IT IS PREVALENT
AS. WE KNOW IT DID NOT JUST IN
SACRAMENTO ACROSS THE STATE AND
IT IS JEOPARDIZING.
THE REGULATED MARKET AND AND I
JUST WANT YOU KNOW WE WE'RE DEBT
WE WANT TO GET THIS RIGHT BY THE
WAY AND WE ARE VERY CONCERNED
AND SO THAT'S WHY WE'VE ALREADY
PUTS THE RESOURCES WE HAVE.
AND.
WILL CONTINUE TO DO SO.
THANK YOU VERY MUCH FOR.
.
AND SO THE DIVERT TIMING THOUGH.
ON ON THE ISSUE AT HAND AND IT
MENTIONED I KNOW THAT WE'RE JUST
GONNA WIN BUT THIS WAS VERY TH
AND I THINK THAT'S THE
EXPECTATIONS OF MEMBERS OF THE
PUBLIC AND. THE RESPECTIVE
ENTITIES THAT ENFORCEMENT ACTION
IS TAKEN I THINK IHEARD YOU
PREVIOUSLY THAT WERE QUESTIONS
ASKED YOU HAVE THE APPROPRIATE
RESOURCES WITH ENFORCEMENT YOU
SAID YOU ACKNOWLEDGE THAT THE
ANSWER IS YES.
BUT IF WE KNOW THAT THERE ARE
CURRENTLY BAD ACTORS RIGHT NOW
THEN IT WOULD APPEAR THAT IN
TIGHTENING FACT THAT WOULD BE.
CONTRARY TO.
WHAT YOU HAD MENTIONED?
WELL I I THINK THAT THE
APPROPRIATE RESOURCES HAS BEEN
ALLOCATED TO THE BUREAU WE'RE
ALSO STILL GETTING STAFFED UP SO
AT RIGHT NOW DO I HAVE ENOUGH
RESOURCES TO COME BACK ALL THIS
ADVERTISING PROBABLY. I WILL
HAVE AND I AM BUT SO WHAT WE DO
IS WHEN EVEN THOUGH OUR
ENFORCEMENT STAFF MIGHT NOT BE
FULLY.
WE HAVEN'T HIRED EVERYBODY
FULLY WEEK WE HAD I HAVE DIVERT
OTHER RESOURCES TO MAKE SURE
BECAUSE IT'S THAT IMPORTANT
WHETHER IT'S.
RESOURCES FROM OTHER AREAS OF
THE BUREAU'S BECAUSE WE'VE
REALIZED HOW IMPORTANT IT IS I
THINK IT'S ALSO IMPORTANT THOUGH
THAT WE WE CONTINUE TO ISSUE
LICENSES I MEAN WE STILL HAVE A
LOT OF PENDING APPLICATIONS
WE'VE GOT ISSUE THESE LICENSES
WE GOT TO CONTINUE DOING THAT
SO.
IT IS A BALANCE SEEN OF MAKING
SURE WE'RE CONTENT WE DON'T STOP
ISSUING LICENSES AND OUT WE'RE
EDUCATING PEOPLE ON HOW TO GET
LICENSED.
AND THAT WERE NOTIFYING PEOPLE I
THINK.
I'LL TELL YOU WE'VE MADE I
THINK OVER.
WE SENT OUT OVER A FIVE HUNDRED.
LETTERS AND EMAILS AND WE
FOLLOWED UP WITH SEVERAL HUNDRED
PHONE CALLS AND IT IS A STRONG
MESSAGE WHEN THEY HEAR. THIS IS
THE BUREAU OF CANNABIS CONTROL
THIS IS WHERE WE FOUND YOUR
ADVERTISING AND YOU ARE NOT YOU
ARE CURRENTLY NOT DOESN'T APPEAR
YOUR LICENSE OR HAVE YOUR
LICENSE NUMBER. AND I KNOW IT
MAY NOT SOUND LIKE AND A NUFF
BUT IT IS A I THINK IT IS A OF
THE FIRST STEP IN THE PROCESS
AND THEN FOLLOWING UP WITH THAT
AND MAKING SURE WE'RE FOLLOWING
UP AND SO.
AYE I THINK WE ARE AS WE YOU
KNOW WE'RE IN A WEEK EIGHT OF
IMPLEMENTATION I THINK WE ARE
ALSO LOOKING AT OKAY WHERE DO WE
NEED TO FOCUS OUR RESOURCES SO I
THINK IT'S JUST A MATTER OF US.
TRANSITIONING NOW INTO
ENFORCEMENT AND LOOKING TAKING
MAKING THAT ADVERTISING A
PRIORITY. THANK YOU VERY MUCH IN
THE IN CASE OF THIS SIZE THE
SACRAMENTO NEWS REVIEW
ENFORCEMENT ACTION IS IT TO BE
ON THE PUBLISHED PUBLICATION OR
IS IT ON THAT. THE ACTUAL
DISPENSARY.
YEAH YOU DON'T IT DEPENDS.
I KNOW WE HAVE SOME PUBLIC
INTERNET PLATFORM THAT ACTUALLY
ARE ISSUING. LIKE THEIR OWN
LICENSE WHICH IS PROBLEMATIC
BECAUSE THEY HAVE TO BE THE
STATE ISSUED LICENSE SO.
REALLY IT'S GONNA IF SOMEBODY'S
LICENSED AND THEY HAVE BEEN
ISSUED THEIR LICENSE AND THAT
THAT THERE WOULD BE A VIOLATION
THAT WOULD BE A VIOLATION BUT IF
THEY'RE UNLICENSED.
THEN THAT WOULD BE ON BOTH THAT
EITHER THE INTERNET PROVIDER OR
THE MEDIA. OF IT BUT WE HAVE TO
LOOK AT ON A CASE BY CASE BASIS
BASED ON THE INFORMATION IN THAT
AD.
OKAY THANK YOU VERY MUCH WORK
AND I HOPE YOU'LL INTERPRET OUR
COMMENTS AND QUESTIONS IS THAT
WE ARE VERY MUCH ON THE SAME
PAGE IN TRYING TO GET THIS RIGHT
AND WE RELY ON YOUR. DATED A
EXPERTISE TO HELP ASSIST US IN
THAT DIRECTION THAT WE ARE
COLLECTIVELY HEADED AND SO THAT
AGAINST ALL THE PANELISTS THANK
YOU SO VERY MUCH FOR YOUR
DEDICATION ON THIS ISSUE. AND WE
VERY MUCH LOOK FORWARD TO
CONTINUE TO WORK WITH YOU CLUB
ROUGHLY THANK YOU. WITHOUT
TRANSITION INTO THE SECOND PANEL
OF THAT WILL SPECIFICALLY FOCUS
ON ISSUES FAKE FACING LOCAL
JURISDICTIONS.
AND SO WE HAVE THREE PANELISTS
TO JOIN US.
THE FIRST PERSON IS CARE
MARTINSON LEGISLATIVE
REPRESENTATIVE FOR THE
CALIFORNIA STATE ASSOCIATION OF
COUNTIES.
AND WE HAVE TIM CROMARTIE SENIOR
ADVISER FOR H. DE L. COMPANIES.
AND JONATHON FELDMAN LEGISLATIVE
ADVOCATE FOR THE CALIFORNIA
POLICE CHIEFS ASSOCIATION. AGAIN
THIS PANEL WILL BE FOCUSING
SPECIFICALLY ON ISSUES SPEAKING
FACING A LOCAL JURISDICTIONS.
AND. MISS MARCIN WHENEVER YOU'RE
READY.
GREAT THANK YOU GOOD MORNING
MISTER CHAIR AND MEMBERS OF THE
COMMITTEE AGAIN MY NAME IS KAREN
MARTIN'S AND I'M A SENIOR
LEGISLATIVE REPRESENTATIVE. OF
WHAT THE CALIFORNIA STATE
ASSOCIATION OF COUNTIES SEE SACK
UP THANK YOU SO MUCH FOR THE
OPPORTUNITY TO PROVIDE YOUR
COMMENTS TODAY ON THE
IMPLEMENTATION OF OUR STATES
CANNABIS LAWS FROM THE COUNTY.
PERSPECTIVE UM C. SUCK FOUGHT
VERY HARD TO RETAIN THE LOCAL
CONTROL THAT WAS INCLUDED IN THE
ANSWER I SAY. PROP SIXTY FOUR
AND THEN THE COMBINATION OF
THOSE TWO LAWS.
THIS REALLY ALLOWS.
CITY COUNCILS AND BOARDS OF
SUPERVISORS TO.
IMPLEMENT.
COMMERCIAL CANNABIS REGULATORY
PROGRAMS THAT RESPECT THE WAY
ALL OF THEIR COMMUNITY CHOOSING
WHICH TYPE OF COMMERCIAL
ACTIVITY. THEY WOULD LIKE TO
PERMANENT FOR BANNED THE
COMMERCIAL ACTIVITY.
ALTOGETHER SO AS YOU CAN
IMAGINE.
AS A RESULT THE.
THE LANDSCAPE OF REGULATION.
CONTINUES TO EVOLVE AT THE
LOCAL LEVEL.
HOWEVER I AS WE WERE NOT HELD
TO THE SAME STATUTORY TIME FRAME
THAT THE STATE WAS TO BEGIN
LICENSING ON JANUARY ONE.
THERE WERE A NUMBER OF FOLKS
THAT WE COLOR EARLY ADOPTERS AT
THAT WERE PREPARED AND READY IN
THE US LICENSING HAS BEGUN.
THESE ARE THE FOLKS THAT HAVE
REALLY EMBRACED THE INDUSTRY ARE
THOSE THAT HAD EXPERIENCE AND
REGULATING OF THE MODESTO
MARKETPLACE.
AND.
AS YOU CAN MAKE A MATCH AND.
WE KNOW WHO SEVERAL OF THOSE
ARE BUT CURRENTLY JUST TO GIVE
YOU SORT OF A SNAPSHOT OF WHAT'S
HAPPENING AROUND THE STATE THERE
ARE ABOUT SEVENTEEN. COUNTIES
THAT HAVE.
COMMERCIAL REGULATORY PROGRAM
IN PLACE AND AS YOU CAN IMAGINE.
GIVEN THE DIVERSITY OF OUR STAY.
THAT PROGRAMS ARE REALLY.
RUN THE GAMUT FROM OUR ROBUST
REGULATORY PROGRAMS AND.
MISTER WOODS DISTRICT UP IN
THAT IN THE NORTH COAST TO.
SOME OF OUR SMALL OR.
DELIVERY ONLY SERVICES AND OR
PROGRAMS EXCUSE ME IN MARIN AND
VENTURA COUNTY.
AND WHILE MANY COUNTIES ARE
LEARNING FROM ONE ANOTHER AND
LEARNING FROM OUR OUR CITIES AS
WELL AS HE STOCK IS ACTUALLY
REALLY WORKING TO FACILITATE
THAT CONVERSATION AMONGST LOCAL
GOVERNMENTS.
THAT THE PROGRAMS IN PLACE
REALLY RESPECT UNIQUE
CHARACTERISTICS OF THOSE
INDIVIDUAL JURISDICTIONS AND
REALLY WHY WE FOUGHT SO HARD FOR
THAT LOCAL CONTROL ELEMENT. AND
JUST TO GIVE YOU A LITTLE BETTER
IDEA OF HOW THESE PROGRAMS ARE
TAILORED TO THE LOCAL LEVEL GIVE
YOU A COUPLE EXAMPLES.
IN HUMBOLDT COUNTY WHICH IS I
REALLY THE LEADER.
IN CANNABIS REGULATION AT THE
LOCAL LEVEL.
THEY'VE EMBRACED THE INDUSTRY
BUT.
HAVE ALSO EXPERIENCED QUITE A
BIT OF ENVIRONMENTAL DEGRADATION
OVER THE PAST SEVERAL DECADES
DUE TO A ON PERMANENT ON LICENSE
ACTIVITY. SO TO.
TO INCENTIVIZE COMPLIANCE.
WHILE EMBRACING INDUSTRY
THEY'VE DEVELOPED A LAND
RETIREMENT REMEDIATION AND
RELOCATION PROGRAM.
AND THIS IS REALLY TO HELP
INCENTIVIZE FOLKS TO GET OFF THE
SLOPES INTO MORE APPROPRIATE
LAND USES BY.
INCENTIVIZING ZONING CLEARANCES
IN OTHER AREAS FOR AN
ENVIRONMENTAL REMEDIATION AND
OTHER SO THAT'S A UNIQUE I THINK
COMPONENT OF THEIR LOCAL PROGRAM
THAT REALLY. RESPECT THAT MEANS.
THAT THE COMMUNITY IS ACTUALLY
EXPERIENCING.
JUST A COUPLE OTHER EXAMPLES IN
HUMBOLDT COUNTY AS YOU KNOW
THERE.
VERY PROUD OF THEIR BRAND THE
ECONOMIC OPPORTUNITY ASSOCIATE
WITH INDUSTRY SO THEY'RE WORKING
ON ORGANICS PROGRAM WITH THE
STATE TO REALLY IDENTIFY
THEMSELVES AS THAT LEADER. AND
THEN ALSO TO GET TO THE POINT OF
INCENTIVIZING THE SMALLER.
BUSINESSES AND GROWERS AND
RESPECTING SORT OF THE FACT THAT
THE INDUSTRY'S HAD A LONG.
STANDING RELATIONSHIP WITH THE
COMMUNITY THEY ARE RESTRICTING
LICENSES AND IN THE COUNTY SO
THAT ONE INDIVIDUAL LICENSE WILD
HOLDER CAN ONLY HOLD. FOR
LICENSES TOLD ALL ACROSS ALL
SECTORS SO THAT'S A WAY THEY
ARE.
GETTING AT THAT OUTSIDE
INVESTMENT ON A IN THEIR
COMMUNITY. JUST ANOTHER QUICK
EXAMPLE IN MONTEREY COUNTY.
THEY.
HAVE EXPERIENCE REGULATING THEM
THE MEDICINAL MARKET AND THIS
REALLY CAME FROM.
.
MICRO ECONOMIC SITUATION IN
THEIR PARTICULAR COMMUNITY.
OF COURSE THIS IS JUST ON THE
REGULATORY SIDE SO THERE ARE
CURRENTLY FORTY ONE COUNTIES OUT
THERE THAT CURRENTLY HAVE SOME
TYPE OF BAND OR MORATORIUM IN
PLACE BUT I WOULD KNOW THAT I
THINK ABOUT TEN OF THESE
COUNTIES ARE ACTIVELY WORKING IN
EARNEST TO. DEVELOP.
THEIR ORDINANCE AND OR PUT.
TAX MEASURE ON THE BALLOT.
INCOME THIS INCLUDES LOS
ANGELES COUNTY.
LOS ANGELES LIKE MANY OTHERS
HAVE SPENT.
A LITTLE BIT MORE TIME DOING
PUBLIC OUTREACH.
AND COMMUNITY ENGAGEMENT ON THE
ISSUE THEY'VE HAD THE EXPERIENCE
OF ON PERMANENT AND I'M LICENSE
ACTIVITIES. AS WELL BUT ON THE
RETAIL SIDE I THINK THERE US USE
OF CIOS OFFICE ARE REPORTED AT
ONE POINT THAT THERE WERE
SEVENTEEN. HUNDRED ON LICENSE
RETAIL ESTABLISHMENTS COUNTY
WIDE HUNDRED OF THOSE WERE IN
THE UNINCORPORATED AREA SO THEY
WANTED TO TAKE THEIR TIME TO
REALLY HEAR FROM RESIDENTS WHAT
TYPE OF COMMERCIAL ACTIVITY.
THEY WOULD LIKE TO SEE WITHIN
THE JURISDICTION I THINK THEY
HOLD ABOUT THIRTY PUBLIC.
FORUMS OVER THE LAST YEAR AND
AS A RESULT OF THAT THEY ARE
MOVING FORWARD WITH A PHASED IN
APPROACH THAT LIMITS LICENSES
PER SUPERVISORIAL DISTRICTS
BASED ON POPULATION. SO AGAIN
IT'S A WAY OF A LOCAL GOVERNMENT
IS REALLY DESIGNING A PROGRAM
THAT RESPECTS THE NEEDS IN THE
WELL I OF THEIR COMMUNITY.
AND THEN JUST QUICKLY BEFORE
TURN OVER MY COLLEAGUES I I DID
WANT TO MENTION.
THAT TALKS ABOUT MEASURES THERE
ARE CURRENTLY NINE COUNTY TAX
MEASURES THAT HAVE PASSED AT THE
LOCAL LEVEL SINCE THE PASSAGE OF
PROPOSITION SIXTY FOUR OF
COURSE.
NOT ALL OF THOSE ARE BEING FULLY
IMPLEMENTED YEAH A COUPLE OF
THOSE.
COUNTIES ARE STILL IN THE
PROCESS OF DEVELOPING.
THERE WERE NONE SAYS BUT THEY
WERE.
A LITTLE BIT FORWARD THINKING
AND PUTTING SOMETHING ON THE
BALLOT UM C. SOCKETS TRACKING
ALL OF THIS INFORMATION.
THAT'S AVAILABLE ON OUR WEBSITE
WE ARE ALSO ENGAGED IN THE
DEVELOPMENT OF A JOINT POWERS
AUTHORITY. AMONGST COUNTIES TO
DEVELOP AND MANAGE A DATABASE
THAT WOULD CONSOLIDATE ALL OF
THE REGULATORY TAX INFORMATION
INTO ONE CENTRAL LOCATION TO
HELP. ENSURE ADDITIONAL
COMPLIANCE OF LOCAL LICENSEES
AND GET TO THAT.
ENFORCEMENT ISSUE AYE THERE ARE
NOT A LOT OF DOLLARS AVAILABLE
FOR THE STAY AS WAS NOTED
EARLIER OFFER OUR LOCAL LAW
ENFORCEMENT OFFICIALS.
SO HAVING TARGETED REAL TIME
INFORMATION TECH HELP WITH THE
SPEED OF COMPLIANCE NOT HAVING
TO CALL THROUGH A LOT OF DATA
ASSOCIATE TRUCKING TRACE BUT
KNOWING WHAT TO LOOK FOR.
WITH SOME ANALYTICS ASSOCIATED
WITH THIS DATABASE I THINK WILL
HURT ME VERY IMPORTANT FOR LOCAL
GOVERNMENTS
AND WITH THAT I'M HAPPY TO
ANSWER ANY QUESTIONS.
THANK YOU VERY MUCH.
SURE WOULD CHECKUP BE OVERTURE
LOW TIM TWENTY RELIEF STILL
COMPANIES APPEARING ON BEHALF OF
THE LEAGUE OF CALIFORNIA CITIES.
THANK YOU FOR THE OPPORTUNITY TO
ADDRESS YOU GENERALLY MANY
CITIES ARE NOW MOVING AHEAD WITH
CRAFTING ORDINANCES IN ERECTING
LOCAL REGULATORY STRUCTURES.
CITY COUNCIL IN THIS SUPPORT
STAFF OR CLIMBING LEARNING CURVE
AS FAST AS THEY CAN. WITH THE
HELP OF A. COMPANY SUCH AS HDL
AND OTHERS TO ENACT REASONABLE
AND EFFECTIVE REGULATIONS. FOR
MANY THE BIGGEST CHALLENGES ARE
GRASPING THE FULL RANGE OF THE
CHANGES THE LAW IN THIS AREA.
AND TRYING TO SET APPROPRIATE
TAX RATES.
THE CURRENT ROADS WE HIGH STATE
TAX RATE MAKES THE LETTER TASK
PROBLEMATIC AT BEST.
FOR OVER A YEAR NOW THE LEAGUE
IS MAINTAINED ON BEHALF OF ITS
MEMBERS THAT THE CUMULATIVE
CURRENT TEACH STATE TAX RATE OF
TWENTY FIVE PERCENT.
TOO HIGH AND MUST BE LOWERED
THIS IS BASED ON THE FIFTEEN
PERCENT STATE EXCISE TAX
COMBINED WITH THE CULTIVATION
TAX WHICH IS EQUIVALENT. TO AN
ADDITIONAL TEN PERCENT.
THIS TAX MUST BE LOWERED FOR
THREE KEY REASONS.
FIRST THE CUMULATIVE TAX RATE
ONCE LOCAL TAXES ARE FACTORED IN
AND ADDED TO THE TOTAL VARIES
DEPENDING ON THE JURISDICTION
BETWEEN THIRTY SEVEN. AND FIFTY
PERCENT RATE THAT IS CERTAIN TO
STIMULATE BLACK MARKET ACTIVITY.
THE LEAGUE IS ISSUED WARNINGS
ABOUT THIS SINCE JANUARY TWENTY
SEVENTEEN. THESE FIGURES ARE
BASED ON THE BRADLEY BURNS LOCAL
TRANSACTIONS AND USE TAXES BUT
AUTOMATICALLY INCLUDED. IN ANY
CONSUMER PURGES ANYWHERE IN THE
STATE COMBINED WITH NO
ORDINANCES IN VARIOUS CITIES
ENACTED SINCE NOVEMBER FIRST OF
LAST YEAR.
THEIR STATUS DE SALES OR OTHER
LOCAL TAX ON CANNABIS AT A RATE
OF ANYWHERE. FROM FIVE TO A HIGH
OF TWENTY PERCENT.
THE SECOND WHATEVER THE INTENT
DEFECTIVE THAT HIGH TAX RATES
WILL BE TO CROWD LOCAL TAXES
OUT.
NONE THE LESS MANY CITIES ARE
PROCEEDING TO ENACT LOCAL
CANNABIS TAXES RANGING FROM
ANYWHERE. FROM SEVEN TO TEN
PERCENT ON AVERAGE DESPITE
WARNINGS FROM THE LEAK THAT THIS
RATE MAY BE TOO HIGH.
THE REAL BENEFICIARIES OF THE
CURRENT STATE TAX POLICY IN THIS
AREA MAY BE A SHORT LIST
CONSISTING SOLELY OF THE CARTEL.
THIS EFFECTIVELY LIMITS LOCAL
TAXES TO FOR.
TO SIX PERCENT WHICH IS WHAT
WE'VE BEEN ADVOCATING A WITH
LIMITED SUCCESS.
THIRD THIS IS A NEW INDUSTRY AND
AND SHOULD NOT BE OVER BURDENED
WITH HIGH TAXES DIRECTLY OUT OF
THE GATE. THE MOMENT THAT THE
REGULATORY STRUCTURE IS LOST
ESPECIALLY IN LIGHT OF THE FACT
THAT UNLIKE OTHER BUSINESSES.
THERE ARE A BROAD RANGE OF TAX
DEDUCTIONS AS HAS BEEN MENTIONED
EARLIER THAT CANNABIS OPERATORS
ARE PRECLUDED BY LAW FROM
PROCLAIMING. THE THEREFORE MUST
INCUR HIGHER THAN NORMAL
OPERATING EXPENSES
STATE TAX POLICY AT LEAST IN THE
SHORT TERM SHOULD REFLECT THAT.
WE'RE AWARE OF LEGISLATIVE
BALLOT MEASURE RELEASED A
PROPOSAL.
TO LOWER THE TAX RATE TO FIVE
PERCENT TO PLEASE THAT MEASURE
ON THE FUTURE BALLOT SINCE THE
CURRENT TAX RATE WAS SET BY
PROPOSITION FIFTY FOUR SIXTY
FOUR.
THE TECH SHOULD BE LOWERED AND
THE AMOUNT CAN BE DEBATED.
BUT THAT IS NOT ENOUGH THE MORE
IMPORTANT CHANGE IS MISSING FROM
THE PROPOSAL ALL FUTURE
ADJUSTMENTS IN THE TAX RATE
SHOULD BE HANDED OVER TO THE
LEGISLATURE.
WHY?
CALIFORNIA SHOULD NOT BE SITTING
TAX POLICY WE HAVE THE
INITIATIVE PROCESS NINETEEN
SEVENTY EIGHTS PROPOSITION
THIRTEEN. IS ELOQUENT EVIDENCE
OF THE FAR REACHING DAMAGE THAT
CAN BE DONE USING THIS MECHANISM
GOING FORWARD BOTH STATE AND
CITIES NEED A NIMBLE PROCESS FOR
ADJUSTING THE CAT. GUT CANNABIS
TAX RATE THAT IS MORE DIRECTLY
RESPONSIVE TO MARKET CONDITIONS
WE RESPECTFULLY URGE THAT ANY
CHANGE IN THIS ARENA INCLUDE A
PROVISION ASSIGNING THE
LEGISLATURE THE RESPONSIBILITY
FOR ANY FUTURE ADJUSTMENTS ON
THE TAX RATE.
EVEN OF THE TAX RATE IS NOT
IMMEDIATELY LOWERED A PROVISION
THE SIGNING THE LEGISLATURE THAT
RESPONSIBILITY SHOULD MOVE
FORWARD AT THE EARLIEST POSSIBLE
DATE.
THE SECOND TRACK INTEREST
REQUIREMENTS.
BUT I MAY BEING.
A A PROBLEM THAT THE STATE'S
STRICKEN FACE PROBLEMS A SYSTEM
IS NOT YET FULLY OPERATIONAL
SINCE THE EMERGENCY REGULATIONS
STATED CLEARLY THAT IT'S
REQUIREMENTS.
DO NOT GET APPLY.
WE RESPECTFULLY URGE THE STATE
GET UP AND RUNNING AS SOON AS
POSSIBLE FOR THE FOLLOWING
REASONS
ONE THERE ARE NEGATIVE PUBLIC
HEALTH IMPLICATIONS. ABOUT THE
LACK OF ABILITY TO TRACK AN
AGRICULTURAL PRODUCT THAT IS
ALSO.
THE PRODUCT WILL PSYCHOTROPIC
PROPERTIES THROUGH THE STREAM OF
COMMERCE SINCE THERE IS NOW NO
WAY TO KNOW THEIR PRODUCT BEEN
TAMPERED WITH.
THIS IS EQUALLY IMPORTANT TERMS
OF STATE LABELING STANDARDS.
SECOND LAW ENFORCEMENT CONCERNED
LEAGUE SHARES AND IN VERSION OF
THE PRODUCT HAVE NO HOPE OF
BEING ADEQUATELY ADDRESSED SO
LONG AS TRACK INTERESTS IS NOT
OPERATIONAL.
THIRD IT WILL BE MANY MONTHS
AFTER IT IS OPERATIONAL THAT IT
WILL ACTUALLY BECOME
ENFORCEABLE.
THE REASON FOR THIS IS A
PROVISION IN THE REGULATIONS
ALLOWING CAMERAS OPERATORS AN
EXEMPTION FROM COMPLYING TO TREK
ENTRIES FOR ANY PRODUCT THEY HAD
ON HAND PRIOR TO JANUARY FIRST
TWENTY EIGHTEEN.
NO MANY OPERATORS RESPONDED TO
THIS BY STOCKING UP ON PRODUCT
PRIOR TO THE END OF LAST YEAR.
WHICH WAS THERE LEGAL LIKE TO DO
AND A NUMBER OF THEM HAVE
SIGNIFICANT QUANTITIES FOR SALE.
ON HAND AT THIS TIME.
THEY WILL NOT BE SUBJECT TO
TRACK AND TRACE.
FOURTH NO TRACKING UNTIL THE
FOLLOWING STAGE.
HEIGHTENS ALL LAW ENFORCEMENT
AND REGULATORS CONCERNS ABOUT
DIVERSION.
ONCE PLANTS REACH EIGHT INCHES
THEY SHOULD BE TAG REGARDLESS OF
WHETHER THEY ARE FLOWING BECAUSE
EXPERIENCE IN COLORADO INDICATES
THEY WILL SURVIVE WHAT'S THE
READ EIGHT INCHES. IN ANY
CONTROLLED ENVIRONMENT AND THEY
CAN BE SOLD ON THE BLACK MARKET
IN THE MEANTIME.
THIS IS CRITICAL BECAUSE WE NEED
TO LOOK AT VOLUME IN ORDER TO
UNDERSTAND THE MARKET DEMAND AND
I JUST PRODUCTION ACCORDINGLY.
OTHERWISE IT WILL TRIGGER
FEDERAL CONCERNS THAT WE DO NOT
HAVE A FUNCTIONAL REGULATORY
STRUCTURE.
ON TESTING REQUIREMENTS WE WOULD
URGE THE STATE'S TESTING
REQUIREMENTS.
BE BROUGHT ONLINE AT THE
EARLIEST POSSIBLE DATE BECAUSE
THE TESTING REQUIREMENTS OF THE
PRIMARY MECHANISM FOR ENFORCING
THE STATE'S HEALTH AND SAFETY
STANDARDS IN THE CANNABIS
INDUSTRY. THERE'S AN ONGOING
POTENTIAL THREAT TO PUBLIC
HEALTH SO LONG AS THEY'RE NOT
BEING ENFORCED.
ANOTHER PROBLEM CITIES ARE
RUNNING INTO IN TRYING TO PSYCH
THESE FACILITIES PARTICULARLY
RETAIL OUTLETS IS THE DEFINITION
OF YOUTH CENTERS.
CURRENTLY IN THE HEALTH AND
SAFETY CODE CURRENT LAW
PROHIBITS LUCCHINI CANADA'S
BUSINESS WITHIN SIX HUNDRED FEET
OF AN EXISTING SCHOOL DAYCARE
CENTER OR USE THAT. BUT THE
LETTER TERM YOU CENTER HAS BEEN
THE CAUSE OF SOME CONCERN AND
CONFUSION FOR CITIES INCITING
CANNABIS BUSINESS BECAUSE IT IS
NOT YET SPECIFICALLY DEFINED.
WITH ENOUGH SPECIFICITY TO KNOW
WHAT CONSTITUTES A YOUTH CENTER
WE WOULD URGE THE LEGISLATURE TO
PLEASE A DETAILED DEFINITION OF
YOU SOONER INSTEAD YOU TO SOON
AS POSSIBLE TO PROVIDE LOCAL
GOVERNMENTS WITH MEANINGFUL
GUIDANCE ON THIS POINT.
FIFTH YOU LIKE TO RESTATE Y.
CULTIVATION LIMIT CARLY STATE
REGULATIONS INCLUDE NO
CULTIVATION LIMIT WHATSOEVER. AS
A DOCTOR WOULD NOTED EARLY.
THE ONE ACRE LIMITATION IS BEEN
REPEALED AND OPERATORS ARE
CIRCUMVENTING THE RULING ITS
LARGE SCALE CULTIVATION BY
APPLYING FOR MULTIPLE TYPE ONE
INTO LICENSES.
SINCE THERE IS NO LIMIT ON THE
NUMBER THEY CAN APPLY FOR THIS
IS ANOTHER AREA WHERE THE STEEP
COULD PROACTIVELY ADDRESS
FEDERAL CONCERNS AND MINIMIZE
THE LIKELIHOOD OF FUTURE FEDERAL
INTERVENTION. BY IMPOSING A
REASONABLE CULTIVATION LIMIT
THAT IS CONSISTENT WITH
PROPOSITION SIXTY FOUR.
FINALLY WITH REGARD TO
ADVERTISING.
TECHNOLOGY PLATFORMS SUCH AS
NGUYEN BABS AND OTHERS ARE
ACCEPTING ADVERTISING FROM
BUSINESSES AND HAVE BEEN
MENTIONED THAT YOU NOT HAVE A
STATE LICENSE NUMBER. THIS IS A
CONCERN FOR CITIES IN REGARD TO
ENFORCEMENT BECAUSE MANY OF THE
LOCAL ENFORCEMENT ACTIVITIES
WILL FALL ON LOCAL LAW
ENFORCEMENT.
THERE IS A NEED FOR THE STATE TO
DEVISE AN ENFORCEMENT MECHANISM
ENSURING THAT.
ANY ENTITY ACCEPTING ADS FROM
CANNABIS BUSINESSES CAN ONLY
ACCEPT AS THAT INCLUDE A STATE
LICENSE NUMBER.
BIG CITY OF SAN FRANCISCO HAS.
MEETS AND SUCCESSFUL IN ROADS
IN THIS AREA WITH REGARD TO
ENFORCEMENT AGAINST A. BED AND
BREAKFAST BY REQUIRING A
MUNICIPAL PERMIT NUMBER ON ALL
AT.
WITH THAT I WILL CLOSE TURN OVER
MISTER FELDMAN BE HAPPY IT'S
REQUEST.
CHAIR MEMBERS THANK YOU FOR
HAVING ME JONATHAN FELDMAN
CALIFORNIA POLICE CHIEFS
ASSOCIATION.
.
SO BRIEFLY GO OVER SORT OF
WHAT'S HAPPENING NOW THE
LANDSCAPE FOR LOCAL LAW
ENFORCEMENT YOU KNOW ABOUT.
TWO MONTHS INTO THIS WHOLE
PROCESS SO I CAN'T TELL YOU
EVERYTHING THAT'S WORKING AND
EVERYTHING THAT'S NOT WORKING
WE'RE TRYING TO IDENTIFY WHERE
THERE ARE GAPS.
INFILL THOSE IN AS QUICKLY AS WE
CAN.
BUT I'LL GIVE YOU DELAY LAND SO
DOES MY TWO COLLEAGUES SPOKE
BEFORE THE LOCALS ARE STILL
DEVELOPING THE ORDINANCES WE ARE
STILL WORKING WITH OUR POLICE
CHIEFS TO MAKE SURE THAT THEY
KNOW WHAT IS BEEN EFFECTIVE IN
CERTAIN AREAS. AND LESS
EFFECTIVE THAN OTHERS IS TERMS
OF. ACTUALLY WITH THE MEAT OF
THE ORDINANCE WHAT GOES IN THE
REPORTING REQUIREMENTS TAX
STRUCTURES SECURITY
REQUIREMENTS.
BUT IMPORTANT NOTE AND I DON'T
KNOW IF YOU GUYS ALL REALIZE
THAT THIS IS HAPPENING BUT THERE
ARE INDUSTRIES AT THE LOCAL
LEVEL THAT ARE PUTTING BALLOT
INITIATIVES.
ON.
LOCAL GOVERNMENT BALLOTS I
ESSENTIALLY WRITING THEIR OWN
RULES YOU KNOW MAYBE IT'S A CITY
WITH THE BAND AND THEY DON'T
WANT THE BAND THEY WANT OPERATE
BUSINESSES THERE THEY ARE
FUNDING LOCAL BALLOT
INITIATIVES.
I AND IT DOESN'T TAKE MUCH OF
THE LOCAL LEVEL TO REALLY PUTS.
SOME OF THAT IT'S GONNA
CHALLENGE LOCAL GOVERNMENT SO WE
ARE DEALING WITH THAT AS WELL. I
KNOW.
.
MY COLLEAGUE FROM A COUNTIES
TALKED ABOUT THE FACT THAT
COUNTIES ARE PUTTING CAPS ON HOW
MANY LICENSEES THEY CAN GIVE TO
ONE SPECIFIC INDIVIDUAL.
AND THAT SORT OF GET SAID A
SUMMER WOODS.
STATEMENT ABOUT THE TOTAL
ACREAGE CAPS BECAUSE LOCALS CAN
DO THAT BUT I CAN'T DO IT IF
THEY'RE FIGHTING A LOCAL BALLOT
INITIATIVE BY AN INDUSTRY THAT'S
RIGHT IN THEIR OWN RULES.
SO THE IMPORTANCE OF THE STATE
KINDA SETTING SOME FLOOR.
IS IS REALLY IMPORTANT THE
CONTEXT OF THAT HAPPENING.
.
SO THAT'S WHAT'S GOING ON AT
THIS LOCAL LEVELS AT THE STATE
LEVEL WE ARE CONSTANTLY WORKING
WITH OUR STATE.
.
LICENSING AGENCIES
WE TRY TO FIGURE OUT HOW
ENFORCEMENT.
IS GONNA BE HANDLED.
STATEWIDE.
HOW WE CAN SHARE INFORMATION AND
COLLABORATE IT'S REALLY GONNA BE
A PARTNERSHIP?
IT'S GONNA MAKE THAT EFFECTIVE
AND SO WE'VE BEEN HAVING A
SERIES MEANS WILL CONTINUE TO
HAVE THAT.
TAKE PLACE OVER THE NEXT FEW
MONTHS. SO I ALSO WANT THINK ALL
THIS THE REPRESENTATIVES IN THE
STATE AGENCIES THAT WERE UP HERE
EARLIER BECAUSE THEY HAVE BEEN
GREAT PARTNERS SO FAR AND WE
LOOK FOR TO CONTINUE IN THAT.
DOWN THE ROAD. SO REALLY
QUICKLY IT KINDA TOP ISSUES FOR
LAW ENFORCEMENT GETTING INTO
THE.
.
BROADER BY.
SUBJECT MATTER.
DRUG DRIVING IS STILL DEFINITELY
ONE OF THE TOP ONE CENTER WE HAD
CHP APPEAR EARLIER TALK ABOUT.
DR RETRAINING AND.
THE FUNDS THAT THEY'VE HAD TO
INCREASE THE NUMBER OF DE AREA
EXPERTS THAT ARE OUT THERE ON
THE FIELD ACTUALLY.
.
DURING ROADSIDE TESTING.
YOU KNOW AGAIN AS WAS MENTIONED
IT'S NOT A PANACEA THAT'S NOT
YOU THERE'S NO WAY YOU'RE GONNA
TRAIN ENOUGH DO YOU ARE USE TO
MANAGE ALL THE TRAFFIC STOPS IN
THE STATE OF CALIFORNIA. YOU
NOTHING I SAW STATISTICS CHP
MADE FOUR MILLION TRAFFIC STOPS.
IN ONE YEAR RECENTLY AND
THERE'S JUST NO WAY THAT YOU'RE
GONNA HAVE ENOUGH DE AREAS TO GO
AND RESPOND EACH ONE OF THOSE SO
WELL THAT'S GREAT AND WE NEED TO
KEEP GETTING THAT TRAINING OUT
THERE.
.
NO NO ONE SHOULD BE UNDER ANY
FALSE PRETENSES THAT'S GOING TO
SOLVE THE PROBLEM YOU KNOW
ESTABLISHING A PER SE STANDARD.
DEVELOPING TECHNOLOGY TO
IDENTIFY IMPAIRMENT AND I GET
THE ARGUMENTS BETWEEN.
THE PRESENCE OF A DRUG AND IT
ACTUALLY AND I INDICATING
IMPAIRMENT AND WE STILL NEED TO
FIND OUT WHAT THAT IS. BUT YOU
KNOW THAT'S GONNA TAKE A LAW
CHANGE THAT'S THAT'S THE
RESPONSIBILITY OF THIS BODY IN
THE SENATE. TO COME FOR WITH THE
SOLUTION TO THAT AND IF WE LOOK
AT WHAT'S HAPPENING OTHER STATES
IT'S CLEARLY BEEN A PROBLEM. DO
YOU IDEAS BEEN ON THE RISE WE
LOOK EIGHT YOU KNOW ANECDOTAL
EVIDENCE FROM CALIFORNIA ABOUT
WHAT WE'RE TRACKING
UNFORTUNATELY DON'T TRACK A.
CANNABIS DO YOU ID AS A SEPARATE
STATISTICS SO IT'S HARD FOR US
TO KNOW EXACTLY.
WHAT'S INCREASED AND WHAT'S HOT
WHAT HASN'T OVER THE LAST FEW
YEARS AND THAT SOME THAT WERE
ALSO TRYING TO WORK ON.
.
BUT YOU KNOW IT'S THAT SOMETHING
AS SIMPLE AS SAYING YOU KNOW A
MINOR.
SOMEONE UNDER THE AGE AS THEIR
ZERO TOLERANCE THAT'S WHAT WE
HAVE FOR ALCOHOL RIGHT NOW IT
WOULD MAKE SENSE FOR US TO DO AT
LEAST THE SAME.
FOR CANNABIS.
I YOU KNOW WHAT.
COURSE FOR THE CARVE OUT THAT
THERE ARE MINORS WHO HAVE
MEDICINE ALL. CARDS FOR USE BUT.
THAT'S THAT'S SOMETHING
RESEMBLING MAKES A STRONG
STATEMENT THAT.
YOU KNOW WE TAKE THIS ISSUE
SERIOUSLY.
YOU KNOW I KNOW THERE'S ARGUMENT
ABOUT WHAT IMPAIRED CANNABIS
DRIVING LOOKS LIKE.
.
BUT SURELY THERE'S A POINT WHERE
IT'S GONE TOO FAR AND IT'S
UNSAFE.
YOU KNOW WE WE CAN ARGUE WHERE
THAT LINE IS BUT SURELY THERE'S
A POINT WHERE IT'S GOING TO SAVE
TO FOREIGN IT'S UNSAFE WE HAVE
TO START.
.
BE MORE FORWARD ABOUT THAT. I.
BECAUSE THE PUBLIC
PERCEPTION IS IS THAT YOU KNOW
THERE'S A LOT OF PEOPLE THINK
IT'S FINE AS THEY CAN TO A
SECOND POINT.
YOUTH ACCESS.
YOU KNOW THERE THE PERCEPTION MY
TALK TO SCHOOL RESOURCE OFFICERS
WHO ON CAMPUSES HIGH SCHOOL
CAMPUSES EVERYDAY IN A SEA THIS
USE NAY THEY TALK TO KIDS ABOUT
THIS.
FEEDBACK I GET FROM THEM OF THE
KIDS ARE TELLING THEM THAT'S
FINE AS MEDICINAL. THAT THERE'S
NO NO HEALTH IMPACTS TO THEM.
IT SO AS WE START YOU KNOW
WORKING ON PUBLIC CAMPAIGNS TO
REALLY EDUCATE.
OUR ARE KIDS EDUCATE THE PUBLIC
ABOUT DRIVING SAFETY.
REGARDING THIS.
.
CONSUMPTION OF CANNABIS.
AND YOU KNOW WE REALLY HAVE TO
START BEING MORE FORWARD ABOUT
IT.
AND BUILD UPON THE GREAT WORK
THAT'S ALREADY BEEN DONE BUT
IT'S IT'S A SERIOUS ISSUE AND IT
SHOULD BE ADDRESSED AS SUCH.
.
DIVERSION AN INVERSION IN A
DIVERSION LEGAL PRODUCT LEAVING
THE LEGAL MARKET INVERSION
ILLEGAL PRODUCTS COMING INTO THE
LEGAL MARKET. STILL HUGE 䉉UE
MEAN WE TALKED ABOUT THE AMOUNT%
OF.
CAMPUS GROWN IN THE STATE
PRISON AMOUNT CONSUMED KNOW
THERE'S CLEARLY A GAP THERE AND
WHAT'S HAPPENING TO THAT
PRODUCT.
LOT OF ITS.
BEING SHIPPED TO THE EAST COAST
CROSSING STATE LINES AND THAT'S
GONNA BE A MAJOR FOCUS ON.
OUR PART TO IDENTIFY WHERE
THAT'S HAPPENING AND SHUT DOWN
AS QUICKLY AS POSSIBLE BUT IN
ORDER TO DO THAT WE'RE GONNA
NEED. PARTNERSHIP AT THE STATE
LEVEL AT THE LOW A LOCAL LEVEL
AND AT THE FEDERAL LEVEL BECAUSE
WE ARE TALKING ABOUT MULTI
JURISDICTIONAL ISSUES HERE.
.
YOU KNOW THE TRACK AND TRACE
SYSTEM. IDENTIFYING YOU KNOW BAD
ACTORS THAT IT'S REALLY GONNA
COME DOWN TO HOW WELL.
LOCAL LAW ENFORCEMENT AND THE
STATE LICENSING AGENCIES SHARE
INFORMATION HOW QUICKLY IT IS I
KNOW WE'VE GOT A HOT LINE UP NOW
THAT'S HELPFUL WE'VE GOT AN
EMAIL. THAT'S HELPFUL.
THIS THIS PARTNERSHIP THOSE IN
ORDER TO REALLY.
BE COMPREHENSIVE ENOUGH
TO MANAGE IN A TIRE EVEN
INDUSTRY FOR THE STATE'S.
SIZE CALIFORNIA'S GONNA HAVE TO
BE BETTER THAN JUST A HOTLINE IN
THE EMAIL.
YOU KNOW WE'RE TAKING STEPS
TOWARDS DEVELOPING THOSE.
COMMUNICATION CHANNELS NOW.
WILL.
CONTINUE TO DO SO BUT THAT'S
GONNA BE CRITICAL.
THE SAME THING WITH BLACK
MARKET YOU KNOW.
STILL THERE.
YOU KNOW IT'S IT'S NOT GOING
ANYWHERE ANYTIME SOON BUT IF WE
TALK ABOUT THE NEED FOR THE
LEGAL MARKET TO THRIVE.
THAT COMES AT US ENFORCING OUR
LAWS AGAINST A BLACK MARKET IS
AS STRINGENTLY AS WE CAN.
THAT.
ENFORCING THAT TAKES RESOURCES.
SO.
LOOKING AT.
YOU KNOW WHAT WE DO ABOUT THE
BLACK MARKET HOW DO WE INCREASE.
ENFORCEMENT ACTIVITY GOING
AFTER THOSE THOSE BAD ACTORS
THOSE THAT WOULD UNDERCUT THE
LEGAL.
FRAMEWORK THAT WE'VE ALL TAKEN
SO LONG TO BUILD AND ESTABLISH.
.
RESOURCES IS GOING TO BE KEY AND
AGAIN NO ONE SHOULD BE ANY UNDER
ANY FALSE PRETENSE THAT THE
FUNDING IMPROPER SIXTY FOUR
SUFFICIENT.
DUDE DID HANDLE THE AMOUNT OF
WORK THAT NEEDS TO BE DONE IN
THAT AREA.
YOU KNOW THERE ARE SOME
ENFORCEMENT GRANTS THAT WILL BE
EL OF ELIGIBLE FOOD BE SEC BUT
THOSE ARE ONLY ELIGIBLE TO A.
LOCALITIES THAT ALLOW FOR
CULTIVATION AND RETAIL LICENSES
SO VIEW OF A BAND REVIEW OF A
MORATORIUM OR YOU DON'T ALLOW RE
TELL YOU NOT ELIGIBLE FOR THOSE
GRANTS.
.
SO IF THERE'S AN IT IS AN AREA
WHERE THERE'S THERE'S
CONCENTRATED BLACK MARKET
OPERATIONS BUT THEY DECIDED A
LOCAL LEVEL THEY WANT RETAIL
THEY'RE NOT GONNA GET THE
ENFORCEMENT GRANTS. FROM THE
STATE IS GONNA HAVE TO BE
ADDITIONAL FUNDING. IF YOU GUYS
WANNA GET SERIOUS ABOUT GOING
AFTER THOSE OPERATIONS.
SO SORT OF ARE KEY ISSUES. SO
ADD AS AN ASSOCIATION WHAT WE'VE
BEEN WORKING ON.
.
THE WE HAVE A MARIJUANA
SUBCOMMITTEE THAT IS REVIEWING.
BILLS REGULATIONS TOPICS OF
DISCUSSION.
PUTTING TOGETHER INFORMATION
FOR OUR ASSOCIATION HAND OUT
GREEN INFORMATION FOR YOU AND I
GET A LOT OF QUESTIONS FROM
DIFFERENT OFFICES ABOUT YOU KNOW
WHAT YOU THINK ABOUT THIS BILL
IS THAT REGULATION ALREADY BY
THEM AND.
I'M IT'S BEEN HELPFUL TO HAVE A
GUY.
GROUP OF POLICE CHIEF SEND A.
ONE CAPTAIN.
IS FANTASTIC.
BE ABLE TO KIND OF REALLY BECOME
THE EXPERTS FROM OUR ASSOCIATION
STANDPOINT ON THAT ISSUE.
I'VE ALSO SENT OUT JUST LAST
WEEK IN ENFORCEMENT SURVEY TO
EACH ONE OF OUR MEMBERS ALL
THREE HUNDRED THIRTY TWO POLICE
CHIEFS TO FILL OUT I HOPE I GET
MOST OF THEM BACK.
ASKING THEM BROUGHT ABOUT FIFTY
QUESTIONS IS PRETTY
COMPREHENSIVE ABOUT A.
ORDINANCE WHAT'S ENFORCEMENT
LOOK LIKE RIGHT NOW WHERE THEY
NEED HELP?
WHAT QUESTIONS AND PROBLEMS ARE
THEY HAVING RIGHT NOW?
ALRIGHT SO I HOPE TO GET THAT
FEEDBACK.
BACK SOON AND SHARE WITH
EVERYONE SO WE CAN KIND OF START
DEVELOPING MAYBE A STRATEGY
BASED OFF OF THAT YOU KNOW I
WANTED TO WAIT UNTIL AT LEAST.
FEW MONTHS IN.
DESCENDED OUT SOMEONE TO MAKE
SURE THERE WAS SOME EXPERIENCES
TO SHARE WITH US I'M SORRY IT
WAS ALREADY A FREE FEEDBACK
TODAY BUT I'LL SHARE WITH YOU
GUYS IS THAT GETS. FINALIZED.
AND TRAINING CLASSES PANEL
DISCUSSIONS WERE ALWAYS TRYING
WE HAVE OUR ANNUAL CONFERENCE
COMING UP IN MARCH AND I'VE
ALREADY ASKED IF YOU THE STATE
AGENCIES TO PRESENT ON A PANEL.
TO ALL OF OUR POLICE CHIEFS TO
HELP
BILL THAT DIALOGUE IN THOSE
RELATIONSHIPS.
.
BECAUSE AGAIN THAT'S THAT'S JUST
GONNA BE THE MOST IMPORTANT
THING I THINK WHEN WE TALK ABOUT
FORSMAN STATEWIDE.
SO LAST.
YOU KNOW THAT WE ARE TO TALK
ABOUT THE RECEPTION OF THE CALL
MEMO AND DOJ HAD A. GOOD TAKE ON
IT AS WELL JUST TO.
PUT THIS OUT THERE FROM THE
LOCAL PERSPECTIVE WHEN THAT WAS.
I DON'T.
THEY WERE CYNICAL MEMO.
.
STATEMENT AND WE MADE WAS THAT
PUBLIC SAFETY WILL STILL BE OUR
NUMBER ONE CONCERN.
.
THAT DOESN'T CHANGE ANYTHING FOR
US WERE STILL GOING AFTER THOSE
THAT ARE POSING A RISK EITHER
THE PUBLIC TO JUVENILES.
.
DIVERSION BLACK MARKET
OPERATIONS CARTEL.
.
I JUST KNOW THAT THAT THAT
DOESN'T MEAN THAT JUST BECAUSE
YOU HAVE A LICENSE.
YOU'LL BE PROTECTED I MEAN IF
YOUR LICENSE BUT YEAR YEAR
DIVERTING PRODUCT OR YOU'RE
ALLOWING YOU TO HAVE ACCESS YOU
KNOW THERE'S THERE'S NO REASON
THAT WE SHOULD.
WITHOUT ANY RESOURCES
FROM GOING AFTER YOU FOR THAT
CONNECTIVITY.
THANK YOU VERY MUCH THAT I'M
DONE.
PERFECT THANK YOU VERY MUCH.
IN THE INTEREST OF TIME IF I
COLLEAGUES COULD TO BE CONCISE
IN YOUR QUESTION SPACE AND WE
SOMEONE ADDITIONAL PANEL
PLUS ADDITIONAL PUBLIC COMMENT.
SO I SAW ON MR LACKEY AND THEN
MISTER GALLAGHER AND.
HE'LL BE QUICKLY THANK YOU FOR
YOUR COMMENTS. ANNA I JUST WOULD
LIKE TO ASSIST MISTER FELDMAN.
AND WHAT CHALLENGES ARE THE FOR
LOCAL ENFORCEMENT DOING.
THE ILLEGAL ENFORCER WE HEARD
FROM THE PREVIOUS PANEL THERE'S
A PRETTY HEAVY RELIANCE
A LOCAL ON FORCE WHAT ARE SOME
OF THE CHALLENGES ASSOCIATED
WITH THAT RELIANCE.
I MEAN DIFFERENT RESOURCES I
MEAN WE'RE STILL.
.
OPERATING ON ON THIN BUDGETS.
AGAIN WITH A LOT OF OTHER ISSUES
THEN YOU THROW THIS ON TOP OF IT
YOU KNOW THERE'S BEEN SOME AREAS
WHERE THEY'VE BEEN ABLE TO TAKE
SOME OF THE LOCAL TAXES AND AND
BUILD A. STRONG MARIJUANA
ENFORCEMENT DIVISIONS.
WITHIN THEIR RANKS BUT THAT'S
NOT GONNA BE DONE EVERYWHERE
SUDDENLY POSSIBLE EVERYWHERE.
SO.
YOU KNOW.
I THINK ANOTHER IMPORTANT THING
IS THAT THAT WE LOOK AT.
WHO IS RESPONSIBLE FOR ENFORCING
WIDE THAT WE DON'T SEPARATE IT
AND PUT IT SOLELY INTO THE HANDS
OF ONE STATE AGENCY OR SOUL INTO
THE HANDS OF LOCAL LAW
ENFORCEMENT NEEDS TO BE A
PARTNERSHIP?
?
SO THAT.
YOU KNOW I.
THE RESOURCES WHEN THEY'RE THERE
THEY CAN BE USED EFFECTIVELY.
SOME I UNDERSTAND YOU CORRECTLY
THAT PART OF THE PROBLEM TOO IS.
IS THE FACT THAT.
SO MAYES INVESTIGATIONS ARE
QUITE COMPLEX.
AND REQUIRED ADDITIONAL
RESOURCES AND AND COOPERATION
PARTNERSHIP WITH OTHER AGENCIES.
MY FINAL QUESTION WOULD BE.
TO LOCAL GOVERNMENTS LAW
ENFORCEMENT RURAL AREAS HAVE THE
RESOURCES TO DO THE.
ILLEGAL CULTIVATION ENFORCEMENT
OF PUBLIC LANDS A CLEAN UP THE
ENVIRONMENTAL DAMAGE BECAUSE.
AND I'LL PUT UP OVER HERE TOWARD
YOU FOLKS.
CAMERAS LET ME HAVE A C. SACK
AND. ILLEGAL GROWS ON PUBLIC
LANDS HAS BEEN A CONSISTENT.
AND TROUBLESOME ISSUE AND IT'S
REALLY.
IT'S A RESOURCES QUESTION BUT
IT'S ALSO.
DE. WORKING WITH OUR FEDERAL
PARTNERS AND OUR STATE PARTNERS
FOR THAT MATTER AND IT'S REALLY
OUTSIDE OF THE REGULATED SPACE
AYE AYE WE.
STRIVE TO WORK WITH THE FEDERAL
GOVERNMENT AND LAW ENFORCEMENT.
TO DEAL WITH THE BLACK MARKET
ISSUE.
AS WE CAN BOLSTER THE REGULATED
MARKETPLACE IN CALIFORNIA AND IN
SOME INSTANCES THERE'S THERE'S
WAIT OVER BY A FOR THE MOST PART
ESPECIALLY I OUT IN THE NATIONAL
FORESTS IN OTHER. AREAS. THEIR
TWO VERY SEPARATE ISSUES AND WE
NEED ALL THE HELP WE CAN GET IN
CALIFORNIA WITH REGULATING
AGAINST THOSE. THOSE ILLEGAL
GROWS.
CITIES DO NOT HAVE THE RESOURCES
BY AND LARGE TO ENGAGE IN
ENVIRONMENTAL ENFORCEMENT AND
IT'S A GOING FORWARD THAT CAN BE
A MAJOR PROBLEM ONE OF THE
CONCERNS THAT THEY HAVE. THE
THEY'RE ALL VERY EAGER TO
BECAUSE HE'S ON THE SEQUEL
EXEMPTION SO LONG AS IT IS A
DISCRETIONARY PROCESS A LOT OF
THEM ARE VERY RELIEVED WHEN THEY
HEAR THAT. IN THE BRIEFINGS THAT
WE'VE GIVEN IN VARIOUS CITIES
AROUND THE STATE. ANOTHER ISSUE
ON THE ENVIRONMENTAL SIDE IS THE
FACT THAT.
ACCORDING TO THE RESPONSE.
REGULATIONS PUT UP BY THE STATE
WATER RESOURCES CONTROL BOARD.
THE.
MUNICIPAL WASTEWATER TREATMENT
CENTERS ARE GOING TO BE
RESPONSIBLE FOR ANY OF FOR WASTE
FROM CULTIVATION WITHIN THE CITY
LIMITS SO THERE'S A.
A BIT OF CONCERN BORDERING ON
PANIC IN SOME JURISDICTIONS
ABOUT THAT BECAUSE AS A QUESTION
ABOUT WHETHER THEY'RE GOING TO
HAVE THE CAPACITY.
THOSE.
THOSE TREATMENTS ARE IS GONNA
HAVE THE CAPACITY FOR THE FOR
THE MEDICAL DELETION RUNOFF. OR
SEWAGE AND THEY SIMPLY DON'T
KNOW WHAT WHAT SKILL OF
ADDITIONAL RESOURCES BUT
ADDITIONAL CAPACITY WE'RE
TALKING ABOUT DISCONTENT AND HOW
MANY. OF US SINNERS HOW MANY
CULTIVATION OPERATIONS OR
LICENSE WITHIN CITY LIMITS
ETCETERA SO IT'S IT'S A VERY
UNCERTAIN.
TROUBLING QUESTION. FOR CITY.
OLYMPIC ADJOURNMENT.
KIND OF ALONG THE SAME.
LINES.
YOU KNOW WE ARE.
IN DIFFERENT LOCALITIES THERE'S
DIFFERENT LOCAL LAND USE
POLICIES PEOPLE ARE TRYING TO.
YOU KNOW IN EACH COUNTY AND.
AND SAY DECIDE HOW TO DEAL WITH
HOW THEY'RE GOING TO REGULATE.
MARIJUANA BUT WE STILL HAVE A
LOT OF PEOPLE WHO ARE JUST NOT.
REFUSING TO COMPLY.
WITH LOCAL LE LAND USE OR LOCAL
ORDINANCES.
WHO CAN YOU KNOW BECAUSE WHICH
I THINK WE JUST IDENTIFIED
THERE'S?
NO AT THE LOCAL LEVEL IS NOT
ALLOWED RESOURCES ALREADY SPREAD
REALLY THIN.
FROM YOUR EXPERIENCE WHO CAN
LOCALS CALL ON AT THE STATE
LEVEL TO HELP. FIND IN.
WITH ENFORCEMENT ON ILLEGAL.
GROWS.
I DEFINITELY THINK IT'S A
PARTNER ENFORCEMENT IS A
PARTNERSHIP BETWEEN OUR LOCAL
GOVERNMENTS AND STATE AGENCIES
WE HAVE A DUAL LICENSING PROGRAM
IN CALIFORNIA SO.
WE NEED TO BE COMMUNICATING
WITH ONE ANOTHER AT THE LOCAL
LEVEL ON WITHIN THE STATE
REGULATORY. AGENCIES IN ADDITION
TO.
THE STATE AND LOCAL ENFORCEMENT
I DO THINK THAT THERE'S A ROLE
FOR THE INDUSTRY TO PLAY AS WERE
ASKING FOLKS TO COME OUT OF THE
GRAY AND BLACK MARKET PLACE AND
ENGAGE IN.
QUITE COMPLEX REGULATORY SCHEME.
THERE ARE ACTORS GOOD ACTORS
THAT ARE DOING SO AND OTHERS
THEY'RE UNDERCUTTING THEM BY NOT
FOLLOWING.
IN THEIR FOOTSTEPS AND I DO
THINK.
THAT THERE WILL BE A
PARTNERSHIP THAT NEEDS TO BE
ESTABLISHED BETWEEN.
THE REGULATORY AGENCIES AND THE
COMPLIANT INDUSTRY TO REALLY
IDENTIFY WHO IS NOT COMPLIANCE
SO THAT WE CAN GET THEM INTO THE
REGULATED SPACE.
NO I WOULD ECHO MS MARTIN'S
COMMENTED TO THE QUESTION OF
LOCALS TRADED.
CIRCLE THE WAGONS THAT PUT
TOGETHER AS BEST THEY CAN A
SEAMLESS WEB OF ENFORCEMENT.
OF COURSE IN THE MORE EGREGIOUS
CASES IT MAY BE NECESSARY TO
CALL ON THE THE THE CULT WE
DEPARTMENT JUSTICE OR POSSIBLY.
A HIGHWAY PATROL BUT WERE VERY
CLEAR THAT ENFORCEMENT FROM
REALLY GONNA BE ON US.
AND SO WHERE YOU. LOCALS ARE IN
THE PROCESS OF COMING UP WITH
CREATIVE SOLUTIONS
TO HELP ADDRESS THAT.
WE JUST ME REALLY QUICKLY
LISTING OFF SOME OF THOSE
ORGANIZATIONS A KICK ON I GUESS
THE BUREAU WOULD BE WINE AND
THEN.%
WHO ARE SOME THE OTHER STATE
ENTITIES LIKE IT BECAUSE I THINK
YOU MENTION CHP? DEPARTMENT.
FEDERAL DEPARTMENT OF JUSTICE.
I THINK WITH RESPECT TO
CULTIVATION.
CFA AS OUR PRIMARY WAY AND ARE
AG COMMISSIONERS AND OTHER FOLKS
THAT ARE INVOLVED IN.
THE REGULATION OF TRADITIONAL
AGRICULTURE.
BY AND WE'RE DEALING WITH
ILLEGAL GROWS THAT MIGHT BE OUT
IN THE NATIONAL OUR STATE
FORESTS I DO THINK WE NEED TO.
WORK WITH OUR GAME WARDENS.
OUR FEDERAL PARTNERS AND OTHERS
AND GET CREATIVE ABOUT HOW WE
AND IT'S NOT EVEN UNTIL THE
GLAND AND I MEAN THAT HAS
TRADITIONALLY BEEN THE ISSUE BUT
NOW IT'S LIKE. IT'S.
ME ON PRIVATE YEAH I AM BUT THIS
IS NOT CONSISTENT WITH THE
ORDINANCES IS THE PROBLEM YEAH.
OKAY THANK YOU.
SO GIPSON UP PASS FOR THE
INTERESTS OF TIME OKAY. THANK
YOU VERY MUCH THANK YOU VERY
MUCH THAT OF PANELISTS HERE I
WOULDN'T THEN QUICKLY ROLL INTO
THE THIRD PANEL WHICH WILL FOCUS
ON. OF INDUSTRY IN THE LICENSE
MARKETPLACE AND THE VALUE
WAITING HOW EARLY EFFORTS AT
REGULATION HAVE BEEN IMPACTING
LEGAL.
BUSINESS.
TO ASSIST WITH THESE EFFORTS WE
HAVE THREE LICENSEES
OUR FIRST OFF WE HAVE OUR
THACKER CEO OF KHALIFA. THAN WE
HAVE CASEY O'NEILL CO OWNER OF
HAPPY DAY FARMS.
AND THEN KENNY MORRISON CEO OF
THE CC BRANDS AGAIN OF THIS IS
THAT OF THE INDUSTRIES HAVE WHO
KINDLY A CALL THE THREE OF YOU
UP. A TO THE PANEL AND WILL.
.
YOU CAN BE BRIEF IN YOUR REMARKS
THAT WE CAN HAVE ROBUST DIALOGUE
IF YOU HAVE AN INTEREST IN
ADDRESSING ANY OF THE PREVIOUS
CONVERSATIONS WITH THEM. OF
PREVIOUS PANELS FEEL FREE TO DO
SO. AND SO I WILL GO AHEAD AND
BEGIN WITH YOU.
MISTER THACKER.
GOOD MORNING.
MY NAME IS LARRY THACKER AND I'M
THE CEO OF KHALIFA BASED IN SAN
JOSE. ONE OF THE LARGEST
VERTICALLY INTEGRATED CANNABIS
OPERATIONS IN THE STATE.
I APPRECIATE THE OPPORTUNITY TO
SHARE MY THOUGHTS ON THE CURRENT
STATE OF IMPLEMENTATION OF LEGAL
CANNABIS LAWS.
FIRST LET ME EXPRESS MY
APPRECIATION FOR THE HARD WORK
AND PREPARATION BY ALL THREE
REGULATORY AGENCIES.
WHAT COULD HAVE BEEN A TRAIN
WRECK OF HORRIFIC PROPORTIONS?
HAS BEEN RELATIVELY SMOOTH
SAILING.
THIS IS NOT TO SAY THAT THERE
ARE NOT SUBSTANTIAL. BUMPS IN
THE ROAD AND IN THE FEW MINUTES
I HAVE TODAY. I WILL FOCUS ON
THREE OF THOSE.
FIRST AND MOST PROBLEMATIC IS
THE BUREAU'S DECISION TO
INTERPRET THE STATUE IN A WAY.
THAT CREATES AN IMPERMEABLE
FIREWALL
BETWEEN ADULT USE AND MEDICAL
USE.
WE DO NOT BELIEVE THAT THEIR
INTERPRETATION IS SUPPORTED BY
THE UNDERLYING STATUTE BUT IN
ANY CASE.
THE REGULATION ADVERSELY AFFECTS
THE COR OF CANNABIS OPERATIONS.
THE REGULATION REQUIRES THAT A
CANNABIS PLANT IN ITS INFANCY.
MUST BE DESIGNATED TO FOLLOW AN
ADULT USE PATHWAY OR A MEDICAL
USE PATHWAY.
FROM THAT POINT THERE IS
ABSOLUTELY NO OPPORTUNITY.
FOR THE PLANT TO MOVE FROM ONE
PATH TO THE OTHER.
EVEN IF IT IS CLEAR THAT THE
MARKET DEMANDS FOR THAT PLAN ARE
CONTRARY TO THE PLANTS PATHWAY.
THE RESULT AS THE MARKET OF
BALLS IS INESCAPABLE.
THERE WILL BE AGLUT IN ONE OF
THE MARKETS IN A SHORTAGE IN THE
OTHER.
MOST MEDICAL CANNABIS CONSUMERS
WILL FIND THAT THE SLIM
BENEFITS.
TO BEING A MEDICAL CANNABIS
PATIENT FAR OUTWEIGH. BY THE
SIMPLICITY OF BEING AN ADULT USE
CONSUMER.
THE INDUSTRY WILL FIND FAR
GREATER PROFITS ON THE ADULT USE
PATHWAY. AND CHOOSE TO DIRECT.
ALL OF ITS ALL OR NEARLY ALL OF
THEIR PRODUCT TO ADULT USE.
THAT WILL LEAVE THOSE
CALIFORNIANS WHO REMAIN MEDICAL
PATIENTS WITH VERY LIMITED
SUPPLY.
ANOTHER FACTOR IS INESCAPABLE.
THERE IS ABSOLUTELY NO
DIFFERENCE BETWEEN ADULT USE
CANNABIS AND IT ADULT USE
CANNABIS AND PRODUCTS.
AND MEDICAL CANNABIS AND
PRODUCTS IN THE MANUFACTURING
PROCESS.
OR IN THE CULTIVATION.
AND TO CONTINUE ARGUE THAT THERE
IS IS TO PERPETUATE A FICTION.
THE REGULATION MUST BE CHANGED
IN ORDER TO ALLOW ADULT USE AND
MEDICAL USE LICENSES.
TO CONDUCT BUSINESS
WITH EACH OTHER.
SECOND FOR ST NEEDS TO TAKE A
CLOSE HARD LOOK IT THE
CUMULATIVE. TAX OBLIGATIONS
IMPOSED ON THE CANNABIS
INDUSTRY.
I AGREE THAT IS A CANNABIS AND
THAT AS CANNABIS COMES INTO THE
LIGHT.
PAYING ITS FAIR SHARE OF TAXES.
STRENGTHENS THE LEGITIMACY.
AS US.
AS A CALIFORNIA AND HISTORY.
THE TAX POLICY CHALLENGES
ASSESSING OUT WHAT TIPPING POINT
THE CUMULATIVE TAXATION.
BECOMES AN UNDUE BURDEN.
WITH THE COMBINATION OF THE
CULTIVATION TAX.
EXCISE TAX
SALES TAX.
AND LOCAL CANNABIS BUSINESS TAX
THE TAX OBLIGATION APPROACH IS
FORTY PERCENT IN MANY
JURISDICTIONS.
AGGRAVATING THAT BURDEN IS THE
IRONIC DECISION BY THE FEDERAL
GOVERNMENT THAT CANNABIS
BUSINESSES MUST STILL PAY
FEDERAL TAXES.
HOWEVER.
UNDER INTERNAL REVENUE CODE
SECTION TWO EIGHTY E..
A CANNABIS BUSINESS CANNOT
DEDUCT
THE SAME BUSINESS EXPENSES BUT
EVERY OTHER INDUSTRY CAN.
SO OUR FEDERAL TAX BURDEN IS
MUCH GREATER THAN EVERY OTHER
INDUSTRY.
IF WE AS A STATE ARE TO BE
SUCCESSFUL IN ENCOURAGING PEOPLE
WHO HAVE OPERATED FOR YEARS IN A
GRAY MARKET. TO COME FULLY INTO
THE LEGAL MARKET. WE MUST BE
CAREFUL TO AVOID CUMULATIVE TAX
POLICY.
THAT WOULD BE VIEWED BY ANY
INDUSTRY AS EXCESSIVE.
FINALLY.
FOR ALL OF ITS SUCCESSES IN
DEVELOPING A RATIONAL REGULATORY
FRAMEWORK THE STATE IS NOT
ALWAYS BEEN SUCCESSFUL IN
UNDERSTANDING HOW THE INDUSTRY
WORKS.
A PRIMARY CASE IN POINT IS THE
ABSENCE IN THE REGULATION OF ANY
DIRECTION OR ALLOWANCE FOR
LICENSING TO ENGAGE IN THE
MARKETING OF THEIR PRODUCT OTHER
BUSINESSES.
LIKE MANY INDUSTRIES ENGAGED IN
A CONSUMER BASED PRODUCT.
WE NEED TO BE ABLE TO MARKET OUR
PRODUCT OTHER LICENSEES IN THE
SUPPLY CHAIN.
THAT CAN ONLY BE DONE BY SHARING
SAMPLES WITH POTENTIAL BUSINESS
CUSTOMERS.
WHEN OUR SALES REPRESENTATIVE
REPRESENTATIVES VISIT A
POTENTIAL RETAIL VENDOR HERE SHE
MUST BE ABLE TO SHOW THE VENDOR
THE PRODUCT.
A SALES REP IS SELLING AND ALLOW
THE VENDOR TO HAVE A SAMPLE OF
THE PRODUCT.
THE REGULATIONS ARE COMPLETELY
SAYA SILENT ON MARKETING FROM
LICENSEE TO LICENSE ANY
LICENSEE.
BUT THERE ARE OTHER REGULATIONS
DESIGNED TO GUIDE TO SEE TO SAIL
PATH OF THE PRODUCT THAT ON
INTENTIONALLY INTERFERE WITH THE
ABILITY.
TO CONDUCT BUSINESS TO BUSINESS
MARKETING.
WELL WE URGE THE STATE TO
ADDRESS THE ISSUE OF MARKETING
SOON.
THE STATE ALSO NEEDS TO SPEND
TIME WITH THE INDUSTRY ON OTHER
DISCRETE ISSUES.
WHERE THE REGULATIONS DO NOT
MATCH TRADITIONAL OPERATIONAL
IMPERATIVES OF ANY OTHER
CALIFORNIA INDUSTRY?
I HOPE THESE THOUGHTS ARE
HELPFUL.
WE ALL STILL HAVE A WAYS TO GO
BEFORE THE REGULATION OF
CANNABIS IS IS FREE AS POSSIBLE
FROM THESE UNNECESSARY BUMPS IN
THE ROAD. AND WE LOOK FORWARD TO
BEING HELPFUL IN THAT REGARD.
THANK YOU FOR YOUR TIME TODAY.
IF YOU MISTER THACKER MISTER
NIELSEN CAN.
GOOD MORNING.
CHAIR LOW CHAIR WOULD.
MEMBERS I APPRECIATE THE
OPPORTUNITY TO COMMENT TODAY.
MY NAME IS CASEY O'NEILL I
COOPERATE HAPPILY FARMS IN
MEDICINE ACCOUNTING. SERVICE
VICE CHAIR FOR THE CALIFORNIA
GROWERS ASSOCIATION.
I'M A MICRO SCALE VEGETABLE
PRODUCER.
AND IT CABS FARMER.
I WOULD MY FAMILY RUN OF VESSEL
SUBSCRIPTION SERVICE TO FARMERS
MARKETS EACH WEEK DURING THE
SUMMER.
LAST YEAR ARE THREE CRAP FARMS
WERE.
EQUIVALENT TO THREE QUICK.
TWENTY FIVE HUNDRED SQUARE FOOT
COTTAGE LICENSES WE ARE VERY
SMALL.
TOTAL VEGETABLE CULTIVATION OF
JUST OVER AN ACRE.
BETWEEN OUR FARMS.
I GROWN SO THAT'S DOUBLES MY
TOTAL REQUIREMENT IS THAT I GET
A THIRTY FIVE DOLLAR PERMIT FROM
THE DEPARTMENT OF AGRICULTURE
THAT LISTS THE CROPS THAT I WANT
TO SELL.
COMPARE THAT WITH THE TENS OF
THOUSANDS OF DOLLARS THAT SMALL
CANNABIS FARMS ARE UP AGAINST
FOR LAND USE REGULATIONS AND
COMPLIANCE COSTS AND IT'S A.
IT'S IT'S A LARGE DISPARITY
SOMETIMES LOOKING IT OVER A
HUNDRED FIFTY THOUSAND DOLLARS.
WE WE ARE FARMERS IT IS IS OUR
CALLING WE LOVE IT THIS IS THIS
IS ALL WE'VE EVER WANTED TO DO
LAST YEAR MY WIFE AND I AGE MAY
TWELVE THOUSAND DOLLARS FROM THE
FARM.
WE WOULD HAVE DONE MORE BUT
BECAUSE I OF THE LICENSING AND
REGULATORY REQUIREMENTS EIGHT
MOST OF THAT UP. I WAS LUCKY
ENOUGH TO FIND AN OFF FARM JOB
TO MAKE ENDS MEET.
YOU KNOW I'D LOVE TO BE ABLE TO
CELEBRATE THAT THE FACT THAT I
HAVE A TEMPORARY STAY LICENSE
BUT I CAN'T DO IT BECAUSE MOST
OF MY COMMUNITY DOES NOT.
I'M HERE TODAY ON YOUR GRAVE
CIRCUMSTANCES THE IMPACT OF
THESE REGULATIONS ON OUR
COMMUNITIES AND OUR ECONOMY'S IS
DRASTIC.
THERE'S NOT A LOT OF JOBS OFTEN
JOBS IN OUR COMMUNITY ON A LOT
OF PEOPLE I KNOW HAVE NO IDEA
WHAT THEY WOULD DO IF THEY CAN'T
GET A LICENSE.
AND THEY CAN'T GET A LICENSE.
WE ARE IN A CRISIS.
THIS EMERGENCY IS CAUSED BY
THOUSAND PAPER CUTS NOT BY A
SINGLE WOUND.
AS SUCH WILL BE ESPECIALLY
DIFFICULT TO CORRECT.
THERE ARE SIGNIFICANT BARRIERS
TO ENTRY AS IT STANDS TODAY
NEARLY ALL OF THE BUSINESSES
OPERATING WILL FAIL IN THE NEXT
YEAR.
IF YOU TAKE ACTION AND REDUCE
THESE BARRIERS MORE BUSINESSES
WILL SURVIVE.
YOU DO NOT WE NEED TO START
THINKING ABOUT SOCIAL SAFETY
NETS.
WITHOUT ACCESS TO BANKS ARE
BUSINESSES ARE SERIOUSLY LIMITED
THE OPTIONS AVAILABLE TO COVER
ONE TIME COSTS.
WE NEED ACCESS TO SMALL BUSINESS
DEVELOPMENT RESOURCES TO HELP
STABILIZE NOT GROWTH ORIENTED
VENTURE CAPITAL.
THE LEGISLATURE MUST ENSURE THAT
WE HAVE ACCESS TO THE RESOURCES
WE NEED TO COVER ONE TIME
REGULATORY COSTS.
OR GIVE US LONGER TIMELINES TO
COMPLY SO WE CAN SPREAD THESE
COST OVER MULTIPLE HARVESTS.
CALIFORNIA'S A BIG STATE
COMMUNITIES ALL OVER ARE FACING
SIMILAR IMPACTS.
SPECIFIC PROBLEMS AND BARRIERS
MIGHT BE DIFFERENT BUT THE
URGENCY IS THE SAME.
ONE IS YOU THAT IS ESPECIALLY
PRONOUNCED ON THE NORTH COAST IS
THE CANNABIS FARMERS ARE BEING
REQUIRED TO COVER COSTS OF CLEAN
UP FOR LEGACY ISSUES THAT EXIST
ON OR NEAR OUR FARMS. BUT THAT
WE DID NOT CAUSE AND ARE NOT
NECESSARILY RELATED TO CANNABIS
CULTIVATION.
THERE IS GREAT UNFAIRNESS TO THE
COSTS.
IT'S AS THOUGH THE REGULATIONS
ARE TRYING TO ADDRESS THE
ECOLOGICAL IMPACTS OF THE PAST
TIMBER BLOOM ON THE BACKS OF
SMALL CANNABIS FARMERS.
PROVIDING MULTI YEAR TIMELINES
FOR REMEDIATION WOULD HELP
ENSURE THAT FARMERS ABLE TO MAKE
THE TRANSITION TO THE REGULATED
MARKETPLACE. WHILE ALSO ENSURING
THAT RESTORATION WORK IS
COMPLETED.
THE COST OF TRANSITION IS SO
EXPENSIVE THAT MANY PHARMACY
SCALING UP IS THE ONLY WAY TO
SUCCEED.
AND INVESTORS ARE QUICK TO
REINFORCE THIS.
MY FARM IS THE SIZE IT WANTS TO
BE.
I AM THE FARMER I WANT TO BE.
I CANNOT SCALE UP.
IF REGULATION IS GOING TO
SUCCEED IN CALIFORNIA
POLICYMAKERS MUST LEVEL THE
PLAYING FIELD SO THAT EVERYONE
HAS A CHANCE TO SUCCEED.
ESPECIALLY AT THE COLLEGE LEVEL.
IF THERE IS NO PATHWAY TO
COMPLIANCE AND NO OTHER JOBS
PEOPLE WILL STAY IN THE ILLEGAL
MARKET PLACE.
AND FORCE MEANT WITHOUT
OPPORTUNITY IS A BROKEN
PARADIGM.
IN CLOSING THIS CAN STILL WORK.
BUT WE NEED SYSTEMATIC
COMPREHENSIVE REFORMS TO REDUCE
BARRIERS AND ENSURE THAT AS MANY
BUSINESSES AS POSSIBLE CAN AND
TO THE REGULATED MARKETPLACE.
FOR ME.
EXCESSIVE REGULATION IN OUR
STATE WILL BE DIRECTLY
CORRELATED TO HOW WIDESPREAD THE
ECONOMIC OPPORTUNITY OF CANNABIS
CAN BE.
AND IF OUR COMMUNITIES CAN
WEATHER THE TRANSITION.
RIGHT NOW.
IT LOOKS BLEAK.
WE NEED YOUR HELP.
THANK YOU FOR THE OPPORTUNITY TO
COMMENT TODAY.
THANK YOU MISTER O'NEILL MISTER
MOORE SAID.
MY NAME'S KENNY MORRISON.
AMER MANUFACTURER AND
DISTRIBUTOR ARE BROKEN DOWN MY
COMMENTS INTO THREE CATEGORIES
ON LICENSE RETAIL ACTIVITY
TESTING AND EXCISE TAXES.
AS A BOARD MEMBER OF BOTH THE
CIA AND CCMA. DURING INTERNAL
DEBATES.
I HEAR THE INDUSTRY VACILLATE
BETWEEN SUPPORTING GREATER
ENFORCEMENT ON UNLICENSED RETAIL
ACTIVITY AND REQUESTING THE
RAPID GRANTING OF MORE RETAIL
LICENSES.
THE BOTTOM LINE. IS SINCE MOST
LOCALITIES HAVE MOVED TOO SLOW
IN GETTING THEIR CANNABIS
PROGRAM GOING.
IT'S MAKING LEGALISATION LOOK A
LOT LIKE PROHIBITION.
A STATE EXCISE TAX REDUCTION
ALLOWS ROOM FOR MUNICIPALITIES
TO GET A MUCH NEEDED SECOND BITE
OF THE APPLE.
THIS WOULD ENCOURAGE LOCAL
LICENSURE.
SECONDLY IT'S NAIVE TO THINK
THAT THE MAJORITY OF CONSUMERS
ARE ADAMANT ABOUT SHOPPING AT A
LICENSED RETAILER. FOR THE
MAJORITY IT RARELY CROSSES THEIR
MINDS
WHAT MATTERS TO THE MAJORITY OF
CONSUMERS IS ACCESS IN THE FORM
OF AFFORDABILITY. A TEN DOLLAR
UNLICENSED PURCHASE IS FAR MORE
DESIRABLE THAN A THIRTY DOLLAR
LICENSED PURCHASE FOR THE SAME
ITEM. UNLICENSED RETAILERS ARE
CAPTURING CUSTOMERS BETTER THAN
LICENSED ONCE.
I'VE OPERATED STATE LICENSED
BUSINESSES CANNABIS BUSINESSES
IN BOTH CALIFORNIA AND
WASHINGTON.
AND LET ME SHARE WITH YOU THE
MAJOR DIFFERENCE SO FAR. IN
WASHINGTON VERY QUICKLY FOR THE
CONSUMER REGULATED CANNABIS WAS
FAR CHEAPER THAN UNREGULATED
CANNABIS.
THE REASON WASHINGTON'S
REGULATED MARKET FLOURISHED IS
BECAUSE IT WAS ABLE TO QUICKLY
UNDERCUT THE UNREGULATED MEDICAL
STORES HERE IN CALIFORNIA WE
HAVE THE OPPOSITE PROBLEM.
THE PROBLEM WITH CALIFORNIA'S
REGULATED ECOSYSTEM IS THAT IT
ONLY MONITORS THOSE WITHIN THE
SYSTEM.
THE BIGGEST THREATS TO
LEGALIZATION CURRENTLY RESIDE
OUTSIDE OF IT.
IN THE IMMEDIATE AND NEAR TERM
VIRTUALLY ALL EFFORTS TO
REGULATE CANNABIS SHOULD FOCUS
ON THOSE WHO HAVE NO INTENTION
OF JOINING THE REGULATED SPHERE.
IF WE FEEL IT'S A MATTER OF
RESOURCES THAT ENFORCEMENT IS
EXPENSIVE JUST LOOK AT THE COST
OF NOT ENFORCING TAX REVENUE IS
BEING SIPHONED FROM THE STATE BY
UNLICENSED RETAILERS OUT IN AN
ARMY AT AN ALARMING RATE.
EXCISE TAX
WE HAVE A SERIOUS CRISIS ON OUR
HANDS WITH REGARDS
TO EXCISE TAX ITS COLLECTION
IT'S REMITTANCE.
THE PROCESS IS BEGGING TO BE
STREAMLINED FOR STARTERS
WASHINGTON AND OTHER STATES
ALREADY TRIED MULTIPLE POINTS OF
TAXATION ALONG THE SUPPLY CHAIN.
IT QUICKLY ALL GOT PUSHED TO A
RETAIL TAX THAT RETAILERS
COLLECT AND REMIT THEMSELVES.
IF A RETAILER CAN COLLECT AND
REMIT SALES TAX WITHHOLDING
REMAIN PAYROLL TAX
EXCISE TAXES SHOULD FOLLOW THE
SAME MODEL.
WE'VE HEARD BCC HAS NO AUTHORITY
OVER UNLICENSED LOCATIONS.
IF TAXES WERE COLLECTED AND
REMITTED FROM RETAIL THAN
ENFORCEMENT AUTHORITY COULD
TRANSFER TO THE CD TFA.
LET'S GET THAT MONEY CALIFORNIA.
TESTING AND TAX REMITTANCE ARE
BOTH AREAS THAT CAN BE
EXTREMELY.
STREAMLINED.
THE STATE AND THE INDUSTRY
UNDERSTANDS AND ADMITS WE HAVE
OVER REGULATION DUE TO A PUBLIC
IMAGE PROBLEM.
THE STATE NEEDS TO REMEMBER THE
IMAGE PROBLEM EXISTS DOES DO TO
THOSE WITH NO INTENTION OF EVER
PLAYING BY THE RULES. NOT THE
GOOD GUYS WILLING TO SET THE
EXAMPLE.
BOTH C. CIA AND CCMA SUPPORT
LEGISLATION TO PROHIBIT PUBLIC
DISCLOSURE BY THE STATE OF
CANNABIS BUSINESS LOCATIONS.
UNLESS SPECIFICALLY REQUESTED
UNDER THE PUBLIC RECORDS ACT AS
THE DISTRIBUTOR MYSELF I JUST
CAN'T UNDERSCORE HOW MUCH
LIABILITY THERE IS IN STORING
SOMEONE ELSE'S MONEY. ESPECIALLY
AT SOME OF THE AREAS CANNABIS
FACILITIES ARE REGULATE
RELEGATED TO.
ASKING A HUNDRED ONE HUNDRED
EIGHTY OR SO DISTRIBUTORS IN THE
STATE TO STORE ALL THAT CASH AND
ONLY REMIT ONCE PER QUARTER IS A
RECIPE FOR DISASTER.
ESPECIALLY WITH OUR ADDRESSES
SEARCHABLE ONLINE.
BANKS HOLD LESS CASH THAN WE DO.
TESTING.
AS THE CANNABIS MANUFACTURE FOR
MANY YEARS I'VE ALWAYS TESTED
EVERY SINGLE BATCH OF MY PRODUCT
AND TESTING COSTS ARE STILL TEN
AXING THIS YEAR. WE CAN'T LET
STRICT TESTING PROTOCOLS AND
INSUFFICIENT ACCESS TO TESTING
SERVICES STIFLE THE INDUSTRY.
COME THIS JULY WE NEED TO LEARN
FROM ORGAN AND AVOID
DEVASTATINGLY LONG LEAD TIMES.
WE NEED TO CLARIFY THAT THE MUST
BE TESTED IN FINAL FORM LANGUAGE
IN STATUTE MEANS THAT MULTIPLE
PRODUCT CODES CAN USE A SINGLE
TEST RESULT TO MINIMIZE
REDUNDANT TESTS.
FOR INSTANCE OF A COUPLE
EXAMPLES IF I MAKE A SMALL
MEDIUM AND LARGE BAG OF
CHOCOLATE THAT ALL COME FROM THE
SAME BATCH OF CHOCOLATE DO I
NEED TO TEST ALL THREE PRODUCT
CODES.
IF I FEEL HALF GRAM VEIT
CARTRIDGE AND A ONE GRAM FAKE
CARTRIDGE WITH THE SAME OIL.
DO I NEED TO TEST BOTH SIZES.
ONE MORE EXAMPLE. IF I USE THREE
DIFFERENT DISTRIBUTORS IN THREE
DIFFERENT TERRITORIES OF THE
STATE TO TEST PRODUCTS THAT ALL
CAME FROM THE STAIN THE SAME
BATCH.
DO I NEED TO TEST THAT SAME
BATCH THREE TIMES.
ANOTHER CONCERN AS A
MANUFACTURER. IS THAT A TEN
PERCENT PLUS OR MINUS POTENCY
VARIANTS ACTUALLY DISCOURAGES
THE MANUFACTURE OF MICRO DOES
PRODUCTS.
WHICH ITEMS BETWEEN TWO AND FIVE
MILLIGRAMS AND UNDER.
WE NEED A SLIDING SCALE FOR
VARIANCES WHICH MAKES
RESPONSIBLE MICRODISK PRODUCTS
ACHIEVABLE.
FOR INSTANCE IF I MAKE A TWO
MILLIGRAM PRODUCT THERE'S NO LAB
THAT WILL FEEL COMFORTABLE A
TESTING TO A VARIANCE WITHIN
ONLY TWO TENTHS. OF A MILLIGRAM.
ALL THESE ISSUES ABOVE HER MADE
EVEN WORSE WITHOUT CROSS LAB
STANDARDIZATION.
WE NEED CROSS LAB
STANDARDIZATION WHEN IT COMES TO
TESTING PROTOCOLS SO'S CONSUMERS
AND MANUFACTURERS CAN TRUST
TRUST THE RESULTS THEY GET WHEN
SWITCHING FROM LAB TO LAB.
THANK YOU FOR YOUR ATTENTION.
THANK YOU VERY MUCH AND NOW A
ANY ADDITIONAL COMMENTS AT THIS
POINT AND I JUST FOR OUR
COLLEAGUES BILL A HARD STEP AT
TWELVE TWENTY.
SO ANY CUT COMES AND.
MISTER WOOD IN THE MISTER LIKE.
I'M JUST CURIOUS ON PRO AND PRY
MORE TO RECORD TO.
MISTER O'NEILL.
WHETHER ANY.
CHO FAIRS COMING TOGETHER TO
CREATE CO OPS LIKE IN AG.
THAT'S A GREAT QUESTION THANK
YOU.
I HAD THE PLEASURE FOR THE LAST
THREE YEARS WORKING ON.
A PROJECT WE WERE OPERATING ON.
WORKING ON A AN AGRICULTURAL
COOP MODEL THAT IS NO LONGER
AUTHORIZED UNDER THE RAGS BUT
NOW.
WE ARE VERY VERY GLAD TO SEE
THE OPPORTUNITY TO AGGREGATE AS
COOPERATIVES AND WE ARE
DEFINITELY WORKING ON THAT AS
THE EMERALD GROWN PROJECT IN
MEDICINE YOU KNOW. ON THERE ARE
A NUMBER OF OTHER.
COOPERATIVE PROJECTS GETTING
MOVING AS WELL I HAVE THE
PLEASURE OF.
LEADING UNDER MY SILO WITH CAL
GROWERS THE COOPERATIVE
SUBCOMMITTEE WORKING ON COOPER
DEVELOPMENT FIGURING OUT WHAT
EACH OF THESE PRODUCTS PROJECTS
ARE TRYING TO DO THERE'S A LOT
OF DIFFERENT OPTIONS WITHIN THE
REGULATED MARKETPLACE THE
COOPERATIVE PROJECTS MIGHT
ENGAGE IN.
AND I THINK THIS IS SOMETHING
THAT I LOOK FORWARD TO VERY MUCH
AND I AND I THINK WILL BE VERY
HELPFUL FOR SMALL FARMS IT
THERE'S A THERE'S A LOT TO
HAMMER OUT ON AND STONE AND WE
DEATHLY LOOK FORWARD TO.
WORKING THROUGH THE PROCESS.
AND WE'VE HEARD A LOT ABOUT
TAXES OBVIOUSLY IS YOU KNOW WE
HEARD FROM THE LEAGUE ABOUT THAT
MAYBE FIVE PERCENT IS THE RIGHT
NUMBER.
DO YOU AS AN IT DOES THE
INDUSTRY HAVE A PERSPECTIVE ON
WHAT THAT WHAT THAT NUMBER
SHOULD BE.
FROM THE FARM PERSPECTIVE.
ANYTHING LOWER IS GOING TO HELL
IT'S IT'S REALLY HARD RIGHT NOW.
ESPECIALLY MEDICINE ACCOUNT IS
TRADITIONALLY VERY SMALL
CULTIVATION SIZE ARE WE ARE
CAPPED AT TEN THOUSAND SQUARE
FEET AND AND PEOPLE ARE GETTING
MARRIED RIGHT NOW BY THE COST.
.
DO YOU SENSE.
THANK YOU THINK MISTER LACKEY.
YOU'RE JUST REAL QUICKLY MY
QUESTION IS FOR MR MORSE WHAT
KIND OF. OF ILLEGAL ACTIVITY YOU
SEE GOING ON IN THE CITY OF LOS
ANGELES.
.
THERE'S PLENTY.
.
THAT WOULD PROBABLY BE A BETTER.
BETTER QUESTION FOR MY CALL
CENTER WHICH IS FIELDING CALLS
FROM DISPENSARIES ALL DAY.
.
I AS I WAS SITTING IN THE
AUDIENCE TODAY I GOT A.
ATTACKS FROM SOMEONE WHO IS
SHOCKED THAT I WILL NO LONGER
BE.
ABLE TO SERVE THEIR. DATA
ILLEGAL DELIVERY SERVICE.
.
A I I LIVE IN VENICE BEACH.
MY BUSINESS OPERATES OUT OF
OAKLAND.
AND.
.
YOU KNOW I KNOW THAT THE THE
CITY IS IS SLOW TO GRANT THE
LOCAL AUTHORITY WHICH IS
ALLOWING.
.
THE STATE TO GIVE THEM THEIR
TEMPORARY LICENSE BUT I THINK.
.
DE I MEAN I I SAW LAST WEEK I
THINK ON MONDAY A HUNDRED AND
FIFTY NEW LICENSES WERE GRANTED
AND YOU KNOW THE FOLLOWING DAY
THERE IS ANOTHER FORTY AND SO ON
AND SO FORTH. BUT.
.
TO BE HONEST I DON'T REALLY HAVE
MY.
MIGHT. THE PULSE ON EXACTLY
WHAT'S HAPPENING IN LOS ANGELES.
OKAY WELL THANK YOU.
THANK YOU VERY MUCH OF. I ALSO
WANT TO EXTEND A DEEP
APPRECIATION FOR THE THREE OF
YOU IN PARTICULAR AND WORKING
WITH INDUSTRY TO BE COOPERATIVE
WITH US.
AT A HERE IN THE STATE
LEGISLATURE AS YOU WELL KNOW TO
AS WE MENTIONED EARLIER THERE'S
A DISTINCTION BETWEEN THAT OF
THE VOTER INITIATIVE AND THAT OF
THE STATE LEGISLATURE. BUT WE
MUST CONTINUE TO ADDRESS THESE
ISSUES COLLECTIVELY BECAUSE IT'S
AT THE END OF THE DAY THE
CONSUMER THAT HAS.
WHETHER OR NOT YOUR CONSUMER OR
THAT YOU'RE IN INDUSTRY THERE'S
NO CLARITY AND SO THAT'S WHAT
WE'RE ATTEMPTING TO DO SO AND
SUMMARIZING THOSE COMMENTS.
I APPRECIATE THAT YOUR
PARTICIPATION VERY MUCH AND LOOK
FOR TO THE CONTINUED ENGAGEMENT.
I WANT TO TURN IT OVER TO
DOCTOR WOULD A TO ALSO SUMMERS
IN THE A FINAL COMMENTS AND THEN
WE'LL LEAVE IT UP TO PUBLIC
COMMENT AT INDIVIDUALS WISHING
TO SPEAK IN THE AND MEMBERS OF
THE PUBLIC. HAVE PLEASE FEEL
FREE TO LINE UP AT THE MIKE AND
YOU HAVE UP TO ONE MINUTE AND TO
DO SO SO THE MEANTIME PLEASE
LINE UP YOU OF UP TO ONE MINUTE.
AND THEN ADD TO OUR. RESPECTIVE
A CHAIR DOCTOR WOULD.
GREAT WELL I JUST WANNA THANK
YOU THANK YOU FOR BEING HERE IN
AND POINTING OUT SOME OF THAT
THE CHALLENGES AND.
AND I THINK.
EARLY ON WENT THROUGH THIS
PROCESS AYE I BEEN AN ADVOCATE
ALL ALONG FOR SIMPLER.
EASIER A LOWER COST ENTRY
POINTS TO GIVE PEOPLE MORE
OPPORTUNITIES TO BECOME A PART
OF THE REGULATED MARKET SO. IT'S
DISAPPOINTING I GUESS TO SEE
THAT IT IS ARE PROVING TO BE
MUCH MORE DIFFICULT THAN THAN
WAS OUR INTENT YOU KNOW QUITE
FRANKLY.
AM OBVIOUSLY CONCERNED ABOUT
TAXES AS WELL YOU SEE.
YOU MENTION MISTER THACKER THE
TWO EIGHTY THREE TO EIGHTY E.
ISSUE THAT'S A FEDERAL AND STATE
LEVELS ISSUE.
THE THE FEES AND THINGS ARE ARE
EXPENSIVE AND AND IT IS IT IS
CHALLENGING I WOULD NOTE THAT.
THE TAX RATES IN.
YOU KNOW ESTABLISH IMPROV SIXTY
FOUR WHEN THAT WE WERE WE WERE
DEBATING TAXES IN THE
LEGISLATURE TWO THOUSAND
SIXTEEN.
AND A NUMBERS WE WERE WORKING ON
WERE ACTUALLY LOWER THAN WHAT'S
ACTUALLY NOW IN.
PASSED BY THE VOTERS SO SO WE
RECOGNIZE THAT.
YOU KNOW TWO THOUSAND SIXTEEN
SO SO.
I APPRECIATE YOUR WILLINGNESS
TO WORK WITH US GOING FORWARD
HERE AND.
RECOGNIZE THAT THE HOPEFULLY.
HOPEFULLY.
WHAT WILL SEE YOU GUYS HERE IS A
SURVIVOR SAID?
AND AND A LOT MORE PEOPLE ARE
SURVIVING IN THIS
THIS INDUSTRY GOING FORWARD
THANK YOU.
THANK YOU VERY MUCH OKAY NOW TO
IT TO PUBLIC COMMENT A PLEASE
FEEL FREE TO COME UP TO THE
MICROPHONE YOU'LL HAVE UP TO ONE
MINUTE PLEASE WHENEVER YOU'RE
READY. A THANK YOU CHAIR.
AND OTHER MEMBERS ON THE
COMMITTEE ON MY NAME IS SUSAN
LANDRY I'M AN ENVIRONMENTAL
ARCHITECT I MEAN EVAN THOSE
DISTRICT HIGH EVAN.
.
YOU GUYS STOLE MY THUNDER I WAS
HERE TO TALK ABOUT ADVERTISING
AND I'M GLAD TO HEAR YOU GUYS.
THREE OF YOU GUYS MENTIONED
THAT.
MAYBE YOU MET READ MY MEMO AT
FOUR THIRTY ON FRIDAY THAT'S
GREAT THANK YOU.
I ALSO WANT TO THANK ALL THE
AGENCIES AND EVERYBODY THAT'S
BEEN ENGAGED IN THIS PROCESS.
I THINK THE ROLL OUT HAS BEEN
GOOD IM IT'S BEEN EASY TO
NAVIGATE. I WAS.
SUCCESSFUL IN HELPING ONE OF
THE BUSINESSES I WORK FOR TO GET
MICRO BUSINESS NUMBER MARROW FOR
MEDICAL NUMBER THREE AN ADULT
NUMBER FOUR.
SO THAT WAS GREAT.
.
I ALSO BUT NOW THAT YOU.
I BECAUSE I TALKED TREVOR TYSON.
I DO ONE OF OUR ONE MORE THING
ABOUT.
DO YOU WHY AND DRIVING IMPAIRED.
A PATIENT SHOULD HAVE BE ABLE
TO HAVE A THERAPEUTIC LEVEL AT
TI EIGHT SEE IN THEIR SYSTEM.
THE READ THE REASON THEY'RE
USING THEM INSTEAD OF OXYCONTIN
IS TO MAINTAIN A QUALITY OF
LIFE.
AND IF THEY CAN'T DRIVE TO WORK
THEY DON'T HAVE A QUALITY OF
LIFE TO THANK YOU THANK YOU VERY
MUCH COUNCILMAN COULD ISSUE
THANK YOU FOR TRAVEL ALL THE WAY
FROM CAMPBELL. EXPRESSIVELY.
GOOD MORNING.
SUSAN TIBBON MENACING NO COUNTY
IN THANK YOU FOR THE HONOR OF
ADDRESSING THIS BODY.
DESPITE THE FOLKLORE AND FOR
INVOKING BILLION DOLLAR
INDUSTRIES.
MENDOCINO COUNTY HAS A MEDIUM
IN MEDIAN INCOME OF FORTY FIVE
THOUSAND DOLLARS.
A GIANT INDUSTRY GROWS AND THEIR
EAST BAY SPOKESPEOPLE IN NO WAY
REPRESENT THE THOUSANDS OF US.
ON AND IS WONDERFUL AND HELPFUL
AS THE AGENCIES HAVE BEEN.
LAURIE AJAX MR PARA AT THE
GOVERNOR'S OFFICE OF ECONOMIC
AND BUSINESS DEVELOPMENT.
TIME IS RUNNING OUT FOR US
IN SPITE OF THOUSANDS OF SMALL
FARMERS IN MENDOCINO COUNTY ARE
COUNTY HAS JUST ONE PERCENT
ADOPTION RATE AS OF TODAY.
A A PUNITIVE POSITION AND A
DESIRE TO TAX AND PUNISH US FOR
CARTEL IN FOREST DEPREDATION IS
IS MISPLACED
THOSE PEOPLE WILL NEVER BE HERE
WE ARE HERE.
AW SO WE ASK YOU SINCERELY AND
WITH TIME RUNNING OUT PLEASE
REINSTATE THE CAP.
WE YOU MAKE WHO MAKE ACTUAL
RATIO SPECIFIC MEDICINES CANNOT
COMPETE WITH BIG BUSINESS NOR DO
WE WANT TO.
THANK YOU VERY MUCH
PLEASE RE EXAMINE TESTING.
AND PLEASE RE EXAMINED FEE
SCHEDULES MICRO BUSINESS IS NOW
A.
YOU VERY MUCH.
FULL THE TIME LIMIT THANK YOU
VERY MUCH NEXT.
I I CAN'T SOME SISKIYOU
CALAVERAS COUNTY.
BESSUS MISTER THERE'S FIFTY
THOUSAND FARMS IN THE STATE AS A
YEAR AGO AVERAGE SQUARE FOOTAGE
ABOUT SIXTEEN THOUSAND SQUARE
FEET BASED ON A SURVEY BY
CONSULTING COMPANY I WORK FOR.
PUT THOSE TWO NUMBERS TOGETHER
ABOUT TWENTY THOUSAND
CULTIVATION ACRES BEST ESTIMATES
FROM CONSORTIUM OF STUDIES ON
THE TOPIC IS THAT STATE DEMAND
LEGALLY IS GONNA BE ABOUT FOUR
HUNDRED EIGHT HUNDRED ACRES.
CURRENTLY AS OF THE NUMBERS THIS
MORNING WE'RE DANGEROUSLY CLOSE
OVERSATURATION OVERSATURATION
MEANS PRICE DROP PRICE DROP
MEANS.
DISPROPORTIONATE AFFECTING
SMALL PRODUCERS.
WHEN I WALK BEFORE CALAVERAS
COUNTY ABOUT A YEAR AGO UNTIL
THEN THEY HAD ABOUT A THOUSAND
FARMS IN THE COUNTY THEY LAUGHED
INTO THE COULD BE MORE THAN
FIFTY. I HAD THAT PROCESS REPEAT
ABOUT TEN DIFFERENT COUNTIES NO
ONE IS AWARE TO THE EXTENT TO
WHICH THEIR ECONOMIES RELY ON
THE SMALL PRODUCERS. AND WE'RE
NOW GETTING STUDIES OUT IN
THIRTY THREE PERCENT OF THE
ECONOMY AND CALAVERAS ESTIMATED
BY YOUR P. IS SMALL PRODUCERS IN
HUMBOLDT IN MENDOCINO TO ASK ME
TO BE OVER FIFTY PERCENT. THE
LACK OF A ONE ACRE CAP.
OVERSATURATION IS NOT JUST AN
ISSUE SMALL PRODUCE AT
SUSTAINABLE FARMS IT'S AN ISSUE
OF PERHAPS A MASSIVE ECONOMIC
RECESSION OF FORTY PERCENT OF
THE GEOGRAPHICAL AREA OF THE
RURAL PART OF THE STATE THINK
YOU THAT IS IMPORTANT. TO US TO
CONSIDER THANK YOU THANK YOU
VERY MUCH
BEGIN NAME AND AFFILIATION IF
YOU WISH PLEASE.
LEARN FRAZIER CANNABIS
DISTRIBUTION ASSOCIATION WE'VE
IN REPRESENTING THE DISTRIBUTION
SEGMENT SINCE JUNE TWENTY
SIXTEEN AS A POLICY ADVOCACY
AND.
UP TRADE ASSOCIATION WITH A
HUNDRED AND TWENTY PLUS MEMBERS.
ONE OF THE MAJOR AREAS OF
CONFUSION IN THE REGULATED
MARKETS FOR MARKET RIGHT NOW IT
HAS TO DO WITH THE TIMING OF AT
TAX COLLECTION REMITTANCE BY
DISTRIBUTORS AND WHO BEARS THE
COST OF THAT TAX.
SO AS THE TAX COLLECTORS ARE
MEMBERS OFTEN FIND THEMSELVES
EDUCATING PRODUCERS AND
RETAILERS ABOUT WHAT THEIR TAX
LIABILITIES ARE. AND WE ALSO
FIND OURSELVES IN A POSITION OF.
AS THE LIABLE PARTY WANTING TO
COLLECT AND REMIT THOSE TAXES
SOONER WHERE'S THE. PARTY
RESPONSIBLE FOR PAYING THOSE
TAXES WANTS TO REMIT THAT TAX
LATER.
ADDITIONALLY I HAVE WITH THE
LACK OF ENFORCEMENT.
THE UNLICENSED MARKET IS
THRIVING ALONGSIDE OUR LICENSE
MARKET AS WAS BROUGHT UP SEVERAL
TIMES TODAY.
AND THE IMPACT OF THAT IS THAT
THE PRICE FOR FLOWER HAS DROPPED
SIGNIFICANTLY. AND THAT'S MAKING
IT UNECONOMICAL FOR OUR SMALL
SMALL FARMERS TO SURVIVE ALONG
WITH THAT COMPOUNDING OF TAXES.
I ADDITIONALLY.
THE IMPACT OF THE INCENTIVE FOR
CONSUMERS TO SHOP AT UNLICENSED
SHOPS WHERE TAX OUR PRICES ARE
FORTY PERCENT.
A LESS EXPENSIVE THAN THE SHOPS
A NEXT DOOR TO THEM AND SO THOSE
ARE THE. MAJOR ISSUES THAT WE AS
AN ASSOCIATION ARE WORKING ON
I'M IN ADDITION TO SEVERAL
OTHERS IN MANAGEMENT THINKING.
YOU.
PLEASE.
GOOD MORNING MY NAME IS GABRIEL
USE MINE I AM HERE ON BEHALF OF
LATINOS FOR CANNABIS AND THE
CALIFORNIA MINORITY ALLIANCE
LIKE TO SAVE FIRST FOREMOST
THANK YOU SO MUCH FOR ALL OF
YOUR HARD WORK AND FOR TAKING
THE TIME TO YOUR CONCERNS.
I LIKE TO IT ECHO THE CONCERNS
BY ASSEMBLY MEMBER GIPSON ON THE
IMPORTANCE OF ASSURING LAW
FORSMAN HAS RESOURCES MADE
AVAILABLE TODAY. RATHER THAN IN
NINETEEN TWENTY IN ORDER TO
ASSURE AND ELIMINATE ANY ERRORS
IN THE REST PARTICULARLY IN
COMMUNITIES OF COLOR IS DUE TO
THE LACK OF RESOURCES IN PROPER
EDUCATION. ON THE PROPER
ENFORCEMENT OF THE SCOUT
CANNABIS REGULATIONS.
ALSO LIKE TO SEE MORE WORKSHOPS
MADE AVAILABLE IN DENSELY
POPULATED CITIES LIKE LOS
ANGELES TO ASSURE THAT.
OPERATORS ARE IN COMPLIANCE AND
ALSO DISCOURAGE OPERATORS FROM
OPERATING LEGAL MARKETPLACE DUE
TO THE LACK OF EDUCATION
RESOURCES AND COMPLIANCE
WORKSHOPS.
.
I AM PARTICULARLY CONCERNED.
MAINLY THAT THESE FINANCIAL
BARRIERS THAT COMMUNITIES OF
COLORS FACE BECAUSE OF THE
EXCESSIVE APPLICATION LICENSING
FEES.
THESE.
EXCESSIVE FEES CREATE MULTIPLE
BARRIERS AND PARTICIPATION I
LIKE TO SEE MORE DIALOGUE ON
THIS TOPIC ON AGAIN LATE ALSO
EMPHASIZE THE IMPORTANCE OF
REGULATING BAD OPERATORS WHO USE
L. L. SEES. AS A MEANS TO
DECEIVE THE PUBLIC AND TO
PURCHASE AS MANY ELECTIONS AS A
POSSIBLE ESSENTIALLY ENABLING
THE SAME ECONOMIC EFFECTS AT THE
FIVE YEAR BAN HAS. NOT MADE TO
PREVENT THINK ANY MUCH AND AGAIN
I WANT TO ENSURE THAT WE HONOR
THE SPIRIT OF PROP SIXTY FOR
MAKING SURE THAT WE LIMIT.
YOU KNOW THAT CAP ON THE STATE
WIDE THANK YOU SO MUCH THANK
YOU.
GOOD AFTERNOON MY NAME SERVICE A
LAVA LAMPI'M ALSO HERE.
WITH LATINOS FOR CANNABIS AND
CALIFORNIA MINORITY ALLIANCE. I
AM.
A MOTHER I'M A CONSUMER I'M
ALSO PATIENT CONSULTANT. AND
WHAT I WOULD LIKE TO SEE IS MORE
A WORKER RATES AS OF NOW WE GET
PAID MINIMUM AND A WAVE IF
YOU'VE EVER BEEN TO A DISPENSARY
YOU KNOW THAT THE PATIENT
CONSULTANT. DELEGATES THE
CONSUMER AND WERE ALSO THE ONES
THAT ARE MAKING THE PROFIT FOR
THE BUSINESS AS OF NOW WE DON'T
HAVE PROTECTION. ANOTHER THING
I'M ALSO MOTHER TO A I'M A
CAREGIVER TO MY DAUGHTER SHE CAN
ACCESS HER MEDICINE A SCHOOL AND
SHE KEEPS ASKING ME WHEN WILL
THE SCHOOLS HAVE. EDUCATION
BECAUSE IN ORDER TO PREVENT ARE
YOU FROM USING IT WE HAVE TO
EDUCATE THEM ON THE BENEFITS AND
THE MEDICINAL PARTS OF THE
PLANT.
AND ANOTHER THING IS A WELL ARE
LAWMAKERS AND LEGISLATOR MAKERS
BE EDUCATED ON THE END
ACCOUNTABILITY SYSTEM BECAUSE I
DON'T THINK WE TO CREATE THESE
LAWS WITHOUT COMPREHENDING. WHAT
ARE THE AND A CAN OPENER SYSTEM
MEANS TO A HUMAN BEING AND TO
THE ENVIRONMENT?
THANK YOU VERY MUCH.
HI GOOD MORNING I'M EXPLOSIVE
CASE FOR CONSULTING ON BEHALF OF
THE CALVARY CANVAS TO LIVE
RELIANCE Y. FOLKS MY COMMENTS ON
TWO AREAS HERE THE FIRST ONE
BEING.
DUH START WRITING ABOUT THE
LIFE INSURANCE LIKE WHEN DEAN
YOU KNOW FIND THE A AND M.
SUPPLY CHAINS. OF WEARING THE
PATH TO LICENSURE DOES BUT LOTS
QUESTIONS BUT THE BLACK MARKET
AN UNLICENSED ACTIVITY TODAY.
UNTIL UNLESS LOCAL GOVERNMENTS
FROM BY THE PATH TO LICENSURE
FOR THESE EXISTING OPERATORS
THERE WILL STILL BE A BLACK
MARKET SO IT'S CRITICAL IF
YOU'RE DISCUSSING THIS TO GO
AND.
OPEN UP OR ALLOW LOCAL
JURISDICTIONS I'M TO BE
LICENSING MORE BUSINESSES I'M
IT'S JUST CRITICAL COMPONENT
THAT WE NEED FOR THE S..
SECONDLY ALSO LOVES BUSINESSES
ARE TRYING TO GO CHANGER
JURISDICTIONS OR TRYING TO LOBBY
THEIR JURISDICTIONS TO BE MORE
FRIENDLY SO WITHIN FORCING ME TO
FOCUS ON THOSE HAVE NO INTENTION
OF COMPLYING WITH STATE LAWS. AS
WAS THOSE ARE TRYING TO FUSE
THIS YEAR'S A TRANSITION PERIOD
SECONDLY WITH GUARDS THE AIM
THEM SUPPLY CHAINS.
WHERE IT'S GOING TO SEE IS
MENTIONED BY KHALIFA?
A SUPPLY CHAIN MISMATCH
TWEEN THEY AND I'M LICENSE AS
WELL AS FAR MORE PRODUCER
LICENSES TYPE AM THOSE ARE
CONSUMER LICENSES TYPE A.
ULTIMATELY BOUGHT THE FIRST SIX
MONTHS WE CAN DON'T HAVE THOSE
IN IRAQ WITH EACH OTHER.
COME JULY FIRST IS GOING TO BE A
MAJOR SUPPLY CHAIN MISMATCH.
AND IT'S GOING TO LEAD TO
PROBLEMS DOWN THE LINE WE'LL
PREVIOUSLY THOSE OF YOU BETTER
ARGUMENT FOR KEEPING THEM
SEPARATE.
WITH THE RECENT VERSION OF THE
CALL MEMO THAT FELL ARGUMENT IS
LESS STRONG NOW THANK YOU VERY
MUCH.
GOOD MORNING PAUL HAS VERY. A
MINOR DETAIL IN THE CULTIVATION
REGULATIONS THEY CALL THE OF
TIGHTENED UP AND AND. OR I
SHOULD SAY LOOSENED UP THE
DEFINITION OF CANOPY.
NOW IF YOU HAVE A DEFINABLE
SPACE.
IS CONSIDERED IN IS NOT THE
ENTIRE GARDEN.
HOWEVER WHEN ASKED ASKED ABOUT
AN IN THE FINAL REGULATIONS I
EXPECTED WE ARE DETERMINED AS
THE DRIP LINE OF PLAN.
HOWEVER WHEN QUESTIONED ABOUT IT
WHY IN THIS A COTTAGE
CULTIVATION. IT HAS BEEN CHANGED
FROM TWENTY FIVE PLANTS A TWENTY
FIVE HUNDRED SQUARE FEET OF
CANOPY. THEY SAID THAT'S A
LEGISLATIVE THINKS I WONDER IF
YOU COULD PLEASE ADDRESS THAT
AND IF THE AS A CHANGES
DEFINITELY CAN BE. CHANGED FOR
THESE OUTDOOR CULTIVATION FOR
COTTAGE SPECIALLY COTTAGE TO
TWENTY FIVE HUNDRED SQUARE FEET
THANK YOU VERY MUCH.
THANK YOU.
GOOD MORNING.
MY NAME IS FANNIE KUZMIN.
REPRESENTING LATINOS FOR
CANNABIS AND CALIFORNIA MINORITY
ALLIANCE I WANTED A AT GOODWOOD
DOCTOR WOULD.
IT HIS CONCERN ON ALLEN L. L.
C.'S.
COVERING UP FOR BAD ACTORS AND
THE CONCERN THAT.
IT THEY'RE FINDING LOOPHOLES TO
MONOPOLIZE THE INDUSTRY
ESPECIALLY EN EL LAY AND HOW WE
HAVE CAPPED.
LICENSE SEEM IF I WANTED TO
KNOW WHAT THE LEGISLATION IS OR
OR ATTORNEY GENERAL IS LOOKING
TO DO AND THOSE TYPE OF
SITUATIONS. WHERE PEOPLE ARE
POSING AS AL ELSIE'S AND FINDING
LOOPHOLES TO?
ATTAIN MORE THAN THE REGULATED
LICENSING SO AGAIN AS MISTER
O'NEILL SAID.
.
AND I WROTE IT DOWN TO SO SO
GOOD ENFORCEMENT WITHOUT
OPPORTUNITY IS SO BROKEN
PARADIGM.
THANK YOU.
THANK YOU VERY MUCH.
HEZEKIAH ALLEN.
EXECUTIVE DIRECTOR CALIFORNIA
GROWERS ASSOCIATION HAVE THREE
COMMENTS FOR YOU ON THE FIRST
AND FOREMOST AND WITH
ENFORCEMENT PLEASE PLEASE PLEASE
GET MORE RESOURCES OUT THERE ON
THE GROUND PLEASE PLEASE PLEASE
PRIORITIZE THERE ARE GOOD HARD
WORKING PEOPLE THAT ARE TRYING
TO TRANSITION AND THERE ARE.
EGREGIOUS VIOLENT CRIMINALS.
EXPLOITING PUBLIC LANDS AND
PUBLIC RESOURCES WE NEED TO TAKE
THE TIME TO FOCUS ON THE
PROBLEMS FIRST SECONDLY YOU KNOW
WE TALK A LOT ABOUT IT FOLKS CAN
GET A LICENSE THEY'RE GOING TO
STAY IN THE BLACK MARKET OR OR
OR OR THE OTHER ALTERNATIVE IS
GO OUT OF. BUSINESS PLEASE BE
SENSITIVE TO THE POTENTIALLY
HUNDREDS OF THOUSANDS OF
CALIFORNIANS THAT DON'T HAVE A
JOB IN THE NEXT YEAR WE HAVE
BEEN PAYCHECK TO PAYCHECK FOR
QUITE SOMETIME NOW. AYE WE'RE
NOT BIG HAVE BUSINESS OWNERS ARE
VERY SMALL BUSINESS OWNERS WE
NEED TO BE SENSITIVE TO THAT.
.
FRANKLY I'LL I'LL SKIP THE THIRD
POINT AND LEAVE IT THERE IN THE
INTEREST OF TIME THANK YOU SO
MUCH AND PLEASE THINK ABOUT THE
FOLKS WHO ARE GOING TO MAKE THIS
TRANSITION THERE ARE A LOT OF
US.
A CRITIQUE YOU ANY ADDITIONAL
BIT WHEN MELISSA'S WISHING TO
SPEAK OR HAVE ANY PUBLIC
COMMENT.
BUT TO SUMMARIZE SOME THIS OF
QUESTIONS AND OR COMMENTS A
SHOULD YOU BE INTERESTED IN
CONTINUING TO ENGAGE IN
CONVERSATIONS YOU CAN VISIT OUR
BUSINESS PROFESSIONS WEBSITE.
AND OR HEALTH COMMITTEE RUNNER
I COMMITTEE A TO COMMUNICATE
WITH OUR RESPECTIVE STAFF
MEMBERS AND AGAIN I WANT TO
EMPHASIZE THE IMPORTANCE OF THE
ENGAGEMENT HERE TODAY.
SO THAT WE CAN MAKE SURE WE.
GET IT RIGHT SO THANK YOU VERY
MUCH FOR YOUR PARTICIPATION AND
LOOK AT WHAT YOU CAN DO
CONVERSATION