City bans on legal cannabis sales can hinder people's existing and planned businesses. Getting more people involved at a political level can help facilitate change.
By Michele Brooke, Esq.By Michele Brooke, Esq.
An increasing number of people have been passionately complaining about their local city ordinances that prohibit cannabis businesses, especially in the light of the new California regulatory framework. Hundreds of businesses in this state alone are likely at stake.
The California regulations set forth a licensing system for commercial cannabis activity that includes 17 varieties of state licenses. These regulations feel like they are the precursor to recreational marijuana being legalized in California in 2016, which many believe is going to happen.
As regulations develop and the state hovers on the edge of anticipated recreational legalization, many people who are not currently in the industry are taking notice. Recently, I’ve been approached by California business owners from other industries who want to adjust their business plans to include integration or expansion into the cannabis industry. It’s not surprising: This industry is anticipated to grow from a $2.7 billion market (in 2014) to $10.8 billion in the next four years (by 2019), according to a report by industry research and investment firm The ArcView Group.
But in order to obtain a business license from the state, one must not only be in compliance with state laws, but also be in compliance with local laws. The potential fly in the ointment is that municipalities are often granted the right to ban cannabis businesses outright.
To restate the problem, businesspeople run their businesses or want to run their businesses in a particular city, but the city may not have cannabis-business-friendly ordinances permitting them to apply for business licenses. These are business people who see a business opportunity, but their city or county governments hamstring every effort.
What should a business owner do?
Here is an idea for people for people with “skin in the game”: Run for office. If your local government representatives are operating on the other side of history, then it may be time to replace them with someone else: You. Individuals who care about what is going on in their cities and wish to see their local areas take advantage of cannabis business opportunities may want to consider gathering some like-minded businesspeople to discuss starting an election campaign based on the rules and regulations of their respective cities or counties. Different countries and localities may set their own unique requirements. For example it is important to figure out how often elections are held and the rules related to running for office.
I have attended plenty of city council meetings where marijuana business owners come to the microphone to ask permission to conduct business, only to be summarily dismissed by council members who are not representative of their interests.
Here are three reasons why a business person who sees the economic opportunities of this industry might want to “step up to the plate” and run for office.
- Most Californians support adult use, because safe and successful adult use programs are clearly possible, as evidenced by Colorado and other cities in California, and can run successful business models.
- Many California businesses are thinking of adjusting their business plan to get a piece of the action and need representation.
- Finally, California voters enacted the Compassionate Use Act of 1996, 19 years ago, and patients are still largely treated like second-class citizens, where their local governments will not pay them the respect of making safe, local medical marijuana available to them. These patients need strong representative voices in their local governments.
This industry needs representative leadership. You could be one of those leaders. And if politics is not your thing, and you cannot be that leader, then perhaps you can help find that leader, help get them elected and let’s make progress.
Michele Brooke is an attorney in California who practices civil litigation and civil cannabis law. She is a member of Americans For Safe Access, NORML and the American Herbal Products Association, Cannabis Committee. She is Cannabis Business Times’ legal correspondent and was one of CBT’s earliest contributors. Visit her website: www.brookelawgroup.com.
