Public Workshop Industry Professional Outreach June 5, 2017 Robert J. Cabral Agricultural Center

Transcription

1 Public Workshop Industry Professional Outreach June 5, 2017 Robert J. Cabral Agricultural Center 1

2 Workshop Agenda u INTRODUCTION u The Cannabis Policy Project u What Can the County Regulate? u Workshop Etiquette u DISCUSSION TOPICS u 1. Understanding MCRSA/AUMA licensing u 2. Discussion of possible effective regulation of cannabis logistic businesses in San Joaquin County: u Manufacturing u Testing u Distributors u Transporters 2

3 Direction from Board of Supervisors On February 28, 2017, the Board of Supervisors directed staff to: u Step 1: Modify Existing Ordinances u Modify the existing dispensary and cultivation bans to include all license types defined in MCRSA and AUMA. u Those bans are to sunset by December 31, u This is expected to be complete on May 23, u Step 2: Determine Appropriate Regulations u Explore possible commercial cannabis business policies/regulations and bring those back to the Board prior to December 31,

4 Direction from Board of Supervisors San Joaquin County Cannabis Policy Project Reach out to the public and community stakeholders on whether to allow cannabis businesses in the County, and if so: u What types of cannabis businesses should be allowed to operate in San Joaquin County? u What is the best location for each type of cannabis business? u How and when should cannabis businesses be allowed to operate? u Should the County impose reasonable regulations on the personal cultivation of cannabis? 4

5 Industry Professionals Workshops u May 16: Dispensary/Retail u May 22: Cultivation u June 5: Testing/Transportation/ Distribution/Manufacturing All Industry Professionals Workshops will take place at 6:00 p.m. at the Robert J. Cabral Agricultural Center, 2101 E. Earhart Avenue Stockton, CA Industry professional workshops will be audio recorded only. For a list of all meeting dates, visit: 5

6 What can the County regulate? u San Joaquin County can only regulate cannabis businesses in the unincorporated County. u It cannot regulate cannabis businesses within city limits. 6

7 What can the County regulate? u What does reasonably regulate mean? u The County can adopt policies and regulations that relate to protection of the public health, safety, and general welfare. u What are some examples of how a County reasonably regulates business? u By limiting allowed business types and the time, place, and manner within which the business operates. 7

8 What can the County regulate? u The County can develop regulations that are more restrictive than the cannabis standards set in MCRSA/AUMA but not less restrictive u Examples of MCRSA/AUMA standards include minimum standards for: u Distance from schools / daycare u Health and Safety / Testing u Environmental Protection u Worker Protections u Security 8

9 What is County s Goal? u If the County allows cannabis businesses in the unincorporated area, then: ucounty wants to adopt effective regulations. ucounty wants to avoid over-regulation. 9

10 Community Concerns that the County Needs to Consider in Regulating Cannabis u Odor u Security u Water Use u Energy Use u Building Code & Safety Issues (C1,D1 build-outs) u Costs u Available locations u Buffer Zones (e.g., feet from property line) u County licensing, inspection, permits u Enforcement of state law/county regulations 10

11 Workshop Etiquette u Raise your hand and we will bring you the mic. u Be courteous. Don t interrupt others. u Stay on topic and keep your comments to under 3 minutes. Remember, there will be several opportunities to ask questions and make comments. u Feel free to ask questions. There will be an opportunity to ask questions about each topic before beginning the discussion. 11

12 2016 DFA Survey 12

13 Industry Flow Chart 13

14 Dual Licensing/Regulation under MCRSA/AUMA u MCRSA/AUMA: State licenses require local approval and compliance with local regulations u Counties retain local control to prohibit or allow and regulate EACH license type ulocal regulation are Time, Place & Manner 14 Photo Source: Canna Source

15 Effective Local Regulation Principles Transparent u Regulations/rules/expectations need to be clear and understandable Systematic u Regulations and enforcement needs to consistent Operable u Compliance or non-compliance needs to be able to be monitored and enforced Defensible u Business owners need to be assured that if they follow the rules they will be in compliance 15

16 Examples of Regulated Industries u Alcohol u Tobacco u Oil and Gas u Motor Vehicle Manufacturing u Financial Markets u Air Transportation u Pharmaceuticals 16

17 Big Picture Questions: If these Industries were Unregulated? u Could they self-regulate? Would that be safe on a large scale? Would that be good for business? u How would you feel if the FAA allowed airlines to make up their own rules? u How would you feel if your family member was in a vehicle that was manufactured while cutting corners (e.g., Takata airbags)? u How would you feel if the medication you take wasn t regulated for potency? dosage? labelling? 17

18 CANNABIS IS NOW A REGULATED INDUSTRY: What Did the State Learn From Existing Regulated Industries and include MCRSA/AUMA? u Product safety u Packaging & Labeling u Inventory tracking u Supply chain management u Product recalls and health advisories NOTE: MCRSA/AUMA were drafted with cannabis industry input and in part based on existing cannabis industry practices. 18

19 If Cannabis Manufacturing, Testing, Distributor, and/or Transporter businesses are allowed to operate in San Joaquin County, what LOCAL REGULATIONS should the County adopt? 19

20 Big Picture Questions About Cannabis Regulations u What sets an illegal cannabis market apart from a legal, regulated cannabis market? u What is the primary objective of cannabis business regulation? u Who do cannabis regulations protect? The INDUSTRY? The COMMUNITY? BOTH? u How can regulations HURT the cannabis industry? u Can good regulations that are not ENFORCED or not enforced CONSISTENTLY hurt the cannabis industry? u Is there a legitimate fear of over-regulation? u What do EFFECTIVE and REASONABLE County regulation of the LOGISTIC cannabis license types look like? 20

21 MANUFACTURER u Manufacture is defined under CCR Title 17, Division 1, Chapter 13: Manufactured Cannabis Safety Draft Regulations: u The production, preparation, propagation or compounding of cannabis product. u It includes the following: Extraction, Infusion, Packaging/repackaging, and labeling/relabeling (with some exceptions.) 21 Photo Source: Canna Source

22 MANUFACTURER 22

23 Manufactured Products 23

24 DISCUSSION MANUFACTURER u What, if anything, should the County regulate about Manufacturing businesses? u Location? Level? Products? Quantity? 24 Photo Source: Canna Source

25 TESTING u The proposed text regulations for cannabis testing: CCR Title 16, Division 42, Chapter 5, Testing Laboratories u Testing regulations provide requirements for the minimum standards for passing the statutorily required testing of medical cannabis goods for retail sale at dispensaries; and u Set minimum laboratory-operation requirements, which include requirements such as sampling procedures, personnel qualifications, standard operating procedures, and recordkeeping requirements. 25 Photo Source: Canna Source

26 DISCUSSION TESTING u What, if anything, should the County regulate for Testing businesses? u Location? Hours of operation? 26 Photo Source: Canna Source

27 TRANSPORTER u Proposed draft regulations CCR Title 16, Division 42, Chapter 3 Transporters states: Only a person licensed by the bureau as a transporter may transport medical cannabis goods between licensees 27 Photo Source: Canna Source

28 TRANSPORTER u Licensed transporters will transport cannabis and cannabis products between cannabis. u These businesses will utilize non-marked vehicles; and u Must transmit an electronic shipping manifest to the state and carry a physical copy with each shipment. 28

29 DISCUSSION TRANSPORTER u What, if anything, should the County regulate for Transporter businesses? u Location? (Storage of cannabis is allowed on transporter premises for no longer than 72 hours.) Extra security precautions? Addition personnel requirements? Can they be part of an existing, noncannabis business? Incentivize local operators? 29 Photo Source: Canna Source

30 DISTRIBUTOR u Proposed draft regulations CCR Title 16, Division 42, Chapter 2 Distributors states: A distributor may take title to and possession of medical cannabis after harvest but prior to manufacturing or u [May] provide medical cannabis goods storage only services to a cultivator, manufacturer, transporter, or other distributor 30 Photo Source: Canna Source

31 DISCUSSION DISTRIBUTOR u What, if anything, should the County regulate for Distributor businesses? u Location? Hours of operation? Security? Storage Requirements? Employee requirements? 31 Photo Source: Canna Source

32 Thank you for your participation in the Cannabis Policy Project! Please visit: 32