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Public WorkshopIndustry Outreach | May 22, 2017Robert J. Cabral Agricultural Center

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Workshop Agendau INTRODUCTION

u The Cannabis Policy Project

u Workshop Etiquette

u DISCUSSION TOPICSu 1. Understanding dual licensing

u 2. Benefits of regulatory oversight

u 3. What is does effective regulation of cannabis cultivation businesses in San Joaquin County look like?

u Indoor Cultivation

u Mixed Light Cultivation

u Outdoor Cultivation

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Direction from Board of Supervisors

On February 28, 2017, the Board of Supervisors directed staff to:

u Step 1: Modify Existing Ordinancesu 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, 2017.

u This is expected to be complete on May 23, 2017.

u Step 2: Determine Appropriate Regulationsu Explore possible commercial cannabis business

policies/regulations and bring those back to the Board prior to December 31, 2017.

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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?

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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 95206

Industry professional workshops will be audio recorded only.

For a list of all meeting dates, visit:http://www.sjccannabis.org/workshops

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u San Joaquin County can only regulate cannabis businesses in the unincorporated County.

u It cannot regulate cannabis businesses within city limits.

What can the County regulate?

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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.

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What can the County regulate?

u The County can develop regulations that are more restrictive than the cannabis standards set in State law but not less restrictive

u Examples of State standards include minimum standards for:u Distance from schools / daycare

u Health and Safety / Testing

u Environmental Protection

u Worker Protections

u Security

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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.

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Commercial Cannabis Cultivation: If it is allowed in San Joaquin County, what does it look like?

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2016 DFA Survey

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Discussion:

uOther regulatory agencies

uState vs Local control

uTime, Place & Manner

Understanding Dual Regulatory Oversight under MCRSA/AUMA

Photo Source: Canna Source

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Questions for Discussion

u When you think of regulated industries, what do you think of?u Alcohol

u Tobacco

u Oil and Gas

u Motor Vehicle Manufacturing

u Financial Markets

u Air Transportation

u Pharmaceuticals

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Questions for Discussion

u Is self-regulation by these industries effective? Safe? Appropriate?

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?

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What Can We Learn From TheseIndustries?u Product safety

u Packaging & Labeling

u Inventory tracking

u Supply chain management

u Product recalls and health advisories

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DISCUSSIONu Creating effective regulations

u Consequences of over-regulation

Effective Regulations: What do they look like?

Photo Source: Canna Source

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Rulemaking Principles

Transparent

u Rules clearly articulate expectations

Systematic

u Planned, methodical, repeatable

Operable

u Ability to be monitored and enforced

Defensible

u Owners reasonably assured they are in compliance if rules are followed

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DISCUSSIONu Legal/Regulated Cultivation vs.

Illegal/Unregulated Cultivation

u What does regulation of commercial cannabis look like? (Indoor/Outdoor/Mixed-light)

Benefits of Regulation of Commercial Cannabis Businesses

Photo Source: Canna Source

19Illegal/unregulated cultivation may not meet the community’s expectations or

health and safety standards

20What does a regulated commercial cannabis

cultivation industry look like?

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DISCUSSIONu What type of commercial cultivation

businesses should be allowed?

u Indoor, outdoor, and/or mixed light

u Where should they be located?

What is Right for San JoaquinCounty?

Photo Source: Canna Source

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Types of Cultivation Permits

u Type 1/1A/1B (5,000 sq. ft.)

u Type 1C (2,500 sq. ft.)

u Type 2/2A/2B (10,000 sq. ft.)

u Type 3/3A/3B (22,000 sq. ft.)

u Type 4 (Nursery unlimited)

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Discussion

u If the County says, “Yes” to a commercial cannabis cultivation industry:u Should it allow indoor, outdoor, and mixed-light

cultivation or just one? Two?

u How does the County ensure regulatory oversight is designed in away that helps the industry thrive?

u How should the County address zoning issues such as set-backs, buffer zones and restricting the number of overall licenses?

u While developing the regulatory framework, how should the County address social equity.

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Further Thoughts for Discussion

u What sets the illegal market apart from a legal, regulated market?

u What is the primary objective of regulatory oversight?

u Who does cannabis regulations protect?

u What does regulation do for you?

u If regulatory development is poorly implemented, where does it leave the industry?

u What happens if regulatory development is poorly managed ?

u Is there a legitimate fear of over-regulation?

u What do you imagine a commercial cannabis cultivation facility would look like in San Joaquin County?

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DISCUSSIONu Should the County regulate personal

cultivation?

u If so, what should those reasonable regulations look like?

What is Right for San JoaquinCounty?

Photo Source: Canna Source

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What San Joaquin County Board of Supervisors is considering in August…

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What Recommendations Should be made to the Board of Supervisors?

u What types of cannabis businesses, if any, 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?