Robert Celt
New Member
With several winners of a lottery to open medical marijuana dispensaries yet to submit their applications and concerns over safety, the city has made some changes to regulations on the new industry.
City Council members on Tuesday directed staff to modify deadlines for submitting regulatory safety permits to open pot shops, removed the requirement that security guards be unarmed and prohibited individuals with drug convictions from obtaining permits.
The changes address some hiccups the city has run into since voters in November 2014 approved Measure BB to license, regulate and tax 20 medical marijuana dispensaries selected through a lottery.
Since the 20 lottery winners were drawn in February 2015, 10 have been granted safety permits and are operating, six have applied for permits and are in the process, two have contacted the city with interest in applying and two have not contacted the city, according to a staff report.
Santa Ana expects to collect about $710,000 in sales and taxes from the 10 dispensaries in operation by the end of fiscal year 2015-16, falling short of the more than $1.5 million it anticipated each year once all 20 shops are licensed and running.
The four lottery winners who have not applied represent lost revenue for the city, which created a task force that has shut down 92 of 116 identified unlicensed pot shops, the staff report states.
"We want to use the resources from the revenues generated to be able to close those few that are remaining open, those unpermitted uses," Mayor Pro Tem Vincent Sarmiento said.
Council members approved an amendment to the ordinance giving winners four months from last Tuesday and no later than Aug. 5, to complete and submit safety permit applications, or become disqualified and forfeit their spot to give the extensive waitlist the opportunity to move up.
"We don't want someone who has applied and won a lottery position to just sit on the position," City Attorney Sonia Carvalho said. "If you have one of those spots, you need to come forward, you need to apply."
The council adopted a second amendment to the ordinance to eliminate the requirement that dispensary security guards be unarmed. It now neither requires nor prohibits guards to be armed.
City Manager David Cavazos said the change was in response to a recent shooting. Specifically, Derek Worden, president of South Coast Safe Access, the first collective to open, was shot in November.
"We're worried if we don't do something, time is of the essence," Cavazos said.
The final amendment council members approved prohibits issuing a safety permit to anyone with drug convictions, and will pertain to applications received going forward.
But Jason Lilly, one of the four lottery winners who has not applied and the only person to speak during public comment on Tuesday, said he has not submitted his paperwork for an unrelated reason.
He asked that the city remove a requirement that applicants looking to open shops in a business complex obtain a letter of approval from the association.
The city attorney said Santa Ana cannot override association disapproval and that it's a "private matter" to be worked out between those parties.
"I think Mr. Lilly makes a compelling argument," said Sarmiento, adding, "Unlike Mr. Lilly, there are others that are just sitting on their rights, which the law doesn't allow."
News Moderator: Robert Celt 420 MAGAZINE ®
Full Article: Santa Ana Sets Deadline For Lagging Medical Marijuana Lottery Winners To Apply
Author: Jessica Kwong
Contact: The Orange County Register
Photo Credit: Mindy Schauer
Website: The Orange County Register
City Council members on Tuesday directed staff to modify deadlines for submitting regulatory safety permits to open pot shops, removed the requirement that security guards be unarmed and prohibited individuals with drug convictions from obtaining permits.
The changes address some hiccups the city has run into since voters in November 2014 approved Measure BB to license, regulate and tax 20 medical marijuana dispensaries selected through a lottery.
Since the 20 lottery winners were drawn in February 2015, 10 have been granted safety permits and are operating, six have applied for permits and are in the process, two have contacted the city with interest in applying and two have not contacted the city, according to a staff report.
Santa Ana expects to collect about $710,000 in sales and taxes from the 10 dispensaries in operation by the end of fiscal year 2015-16, falling short of the more than $1.5 million it anticipated each year once all 20 shops are licensed and running.
The four lottery winners who have not applied represent lost revenue for the city, which created a task force that has shut down 92 of 116 identified unlicensed pot shops, the staff report states.
"We want to use the resources from the revenues generated to be able to close those few that are remaining open, those unpermitted uses," Mayor Pro Tem Vincent Sarmiento said.
Council members approved an amendment to the ordinance giving winners four months from last Tuesday and no later than Aug. 5, to complete and submit safety permit applications, or become disqualified and forfeit their spot to give the extensive waitlist the opportunity to move up.
"We don't want someone who has applied and won a lottery position to just sit on the position," City Attorney Sonia Carvalho said. "If you have one of those spots, you need to come forward, you need to apply."
The council adopted a second amendment to the ordinance to eliminate the requirement that dispensary security guards be unarmed. It now neither requires nor prohibits guards to be armed.
City Manager David Cavazos said the change was in response to a recent shooting. Specifically, Derek Worden, president of South Coast Safe Access, the first collective to open, was shot in November.
"We're worried if we don't do something, time is of the essence," Cavazos said.
The final amendment council members approved prohibits issuing a safety permit to anyone with drug convictions, and will pertain to applications received going forward.
But Jason Lilly, one of the four lottery winners who has not applied and the only person to speak during public comment on Tuesday, said he has not submitted his paperwork for an unrelated reason.
He asked that the city remove a requirement that applicants looking to open shops in a business complex obtain a letter of approval from the association.
The city attorney said Santa Ana cannot override association disapproval and that it's a "private matter" to be worked out between those parties.
"I think Mr. Lilly makes a compelling argument," said Sarmiento, adding, "Unlike Mr. Lilly, there are others that are just sitting on their rights, which the law doesn't allow."
News Moderator: Robert Celt 420 MAGAZINE ®
Full Article: Santa Ana Sets Deadline For Lagging Medical Marijuana Lottery Winners To Apply
Author: Jessica Kwong
Contact: The Orange County Register
Photo Credit: Mindy Schauer
Website: The Orange County Register
