Marin County Cannabis
Marin County Cannabis: fog with a bit of sun

We’ve written recently about Marin County in our Cannabis Countdown series. We started with a history and update of Marin County’s medical cannabis ordinance. We then followed up with an update when the County Administrator rejected all ten applicants for medical cannabis dispensary licenses in Marin County (unincorporated Marin that is). Of the ten applicants that were denied, eight filed appeals to the rejections by the County Administrator and seven presented oral arguments before the Marin County Board of Supervisors and the public on May 23rd (one applicant withdrew its appeal before the hearing).

Before hearing the appeals, the County Administrator and Marin County Board of Supervisors released their reasoning behind their rejection of the applicant’s request for medical cannabis dispensary licenses. Although they varied from applicant to applicant there were a couple of common threads our readers will find useful:

  1. Applicants that did not have prior experience running cannabis dispensaries were facing an uphill battle. Sure, people can learn on the job, but a lack of experience is not going to be viewed favorably. If an applicant did not have a substantial background running cannabis dispensaries it was one of the first things the Board of Supervisors pointed out.
  2. The tiniest details do matter, especially if you’re hoping to open up a cannabis business in a jurisdiction that’s apprehensive about allowing in cannabis businesses. The Marin County ordinance listed 17 criteria for review in determining whether to grant or deny a medical cannabis dispensary license (See Section 6.85.061 of Ordinance 3639). Make sure your application clearly and forcefully addresses every single one of these areas for review because if you don’t, your minor oversight(s) could very well be the cause for denying your application. This is something we know well from the hundreds of cannabis applications we have done in multiple states (mostly California, Washington and Oregon).
  3. Not every locality is ready to open up to for-profit cannabis businesses. Mind you, I’m not talking about recreational cannabis use under the Adult Use of Marijuana Act (AUMA) but for-profit medical cannabis businesses allowed under California’s Medical Cannabis Regulation and Safety Act (MCRSA). The Marin County Board of Supervisors was quick to point out if an applicant was well-positioned to convert from a non-profit entity to a for-profit one. They were concerned that a for-profit entity would be more concerned about sales than the health concerns of their patient members and being a good community partner. Such a concern may have been unfounded but it didn’t diminish the weight the board placed on the distinction between non-profit and for-profit cannabis businesses.
  4. This is California so don’t ever forget about traffic and parking. The Board considered either a likely increase in traffic or insufficient parking spots as an issue with every single applicant. America is a pretty divided country on many issues right now, but I’ve yet to see a pro-traffic party so be prepared to address this issue as everyone is concerned with it.
  5. Public support is important. What was clear from the start was that most of the applicants had learned their lessons from the public hearings previously held during the application process – which were overwhelmingly attended by those against cannabis businesses. There were many people in the audience there to support of the applicants, as demonstrated by stickers favoring certain dispensary applicants and more encouraging comments when the floor was open to the public. Practice, practice, practice. Although not a stated reason for their rejection, it was clear some of the applicants did not spend enough time properly preparing their oral arguments to the Board of Supervisors. Your attorney represents your business so select them wisely. It’s also important to highlight that tone matters. One applicant seemed to treat the Board with outright contempt. You may find yourself before that board again or word of your behavior will travel across the state and imperil your future endeavors; so take a deep breath before you tell a Board of Supervisors at a public hearing how you really feel. Not a good strategy.

Professionalism, tone, and demeanor are especially important because although the Marin County Board of Supervisors dished out heavy doses of stick, they also dangled a carrot at the end of the hearing by requesting the County Administrator’s office and its working group report back to the Board with suggestions for a medical delivery business licensing plan. There’s no denying that these hearings were a momentary setback for the medical cannabis movement in Marin County but there were some positives to take away. First and foremost, the Board of Supervisors reiterated its desire to provide Marin County residents with safe access to medical cannabis and to structure a licensing program to meet that need. Second, Marin County and its municipalities will want to address this issue or they will continue to lose significant tax revenue to neighboring counties. Yesterday was not a good day for cannabis in Marin County, but there are more days ahead.

California cannabis manufacturing lawNow that California’s Department of Public Health (through its Office of Manufactured Cannabis Safety) has released its initial rules for cannabis manufacturing, our California cannabis attorneys are fielding numerous calls from existing cannabis businesses (along with new entrants into the field) with a simple question: How do these rules affect me? Last week we covered some of the technical provisions of the rules. Since the regulations for manufacturing come in at a hefty 95 pages, I thought it would be helpful to go over some more rules and how they can affect your cannabis manufacturing business in California. First, it’s important to note that these regulations may change after the public and interested stakeholders have a chance to comment on them, but this is still a significant first step in clarifying what was previously a confusing landscape. The regulations for manufacturing are a clear and effective attempt by California to enact robust regulation to comply with the Cole Memo issued by the U.S. Department of Justice. Here are some areas of importance for anyone looking to engage in cannabis manufacturing in the Golden State:

Types of Licenses. The regulations state that California’s Department of Public Health will issue four types of licenses: Type P, Type N, Type 6, and Type 7. Type N licensees can conduct infusions and can package and label their own products while Type P licensees can do only packaging and labeling for other licensed cannabis manufacturers. Type 6 (non-volatile) and Type 7 (volatile and non-volatile) licensees can conduct extractions and infusions, and can package and label their own products. If you obtain a license there are two important things you need to consider: 1) Unless you obtain a type 7 license you will need to submit a new application if you want to change the type of manufacturing you are conducting; and 2) You need to be sure your cannabis manufacturing operations are in a location that can be sustained because relocating any portion of your manufacturing operation to new premises will require you submit a new license application.

DON’T PROCRASTINATE! If you have a cannabis manufacturing business that is legally operating in California before January 1, 2018, you will be able to continue operating it until the Department of Public Health approves or denies your application. This is extremely important considering it’s the next best thing to getting priority of review – which only applies to cannabis manufacturers that were operating and in good standing with their local jurisdiction as of January 01, 2016.

DO YOU REALLY KNOW YOUR BUSINESS PARTNER?! We’ve already covered who is considered an owner under California’s new cannabis regulations and it’s important you go over the ownership classifications because it can have profound implications on your business. Your application can be denied for a number of acts that your business partner may have committed. Strict attention must be paid to past acts because these prior offenses can torpedo your application and they’re not all obvious. Ever heard of the California Food Sanitation Act? How about the Sherman Food, Drug, and Cosmetic Law? You don’t need to know them inside and out but you do need to make sure your business partner never violated either of those acts because they can be grounds for denying your application.

DON’T EVEN THINK ABOUT IT. The rules state that no applicant or associated applicant shall hold a Type 8 (testing) or Type 11 (distribution) license. The rules also state “a manufacturer licensee shall not manufacture, prepare, package or label any products other than cannabis products at the licensed premises.” If you hoped to merge your cannabis manufacturing operation with a non-cannabis business for increased efficiency, sorry but NO SOUP FOR YOU. Lastly, the rules prohibit a manufacturer licensee from subletting any portion of the licensed premises.

These proposed regulations for cannabis manufacturers could not have come out at a better time, as the lack of legal specificity for cannabis manufacturing had been dampening the enthusiasm and desire of those looking to operate a marijuana manufacturing business in California. Before these new rules issued, our California cannabis attorneys were starting to see a slow but steady increase in sophisticated clients looking to start a California cannabis manufacturing business, but even just since they have come out the number has soared.

California Cannabis lawyersThough the Medical Cannabis Regulation and Safety Act (“MCRSA“) initially failed to specifically define the term “manufacturer,” California finally rectified the situation with the Department of Public Health’s Office of Manufactured Cannabis Safety‘s release of the initial MCRSA manufacturing rules last Friday.

“Manufacturer” now means the production, preparation, propagation, or compounding of cannabis products, including extraction processes, infusion processes, the packaging or repackaging of manufactured medical cannabis or medical cannabis products, and labeling or relabeling the packages of manufactured medical cannabis or medical cannabis products.

In addition, “manufacturing” or “manufacturing operation” means all aspects of the extraction and/or infusion processes, including processing, preparing, holding, storing, packaging, or labeling of cannabis products. Manufacturing also includes any processing, preparing, holding, or storing of components and ingredients.

We also know what nonvolatile and volatile solvents mean, which terms were previously undefined in the MCRSA.which This is important because it will determine what kind of California cannabis manufacturing license you’ll get. “Nonvolatile solvent” means any solvent used in the extraction process that is not a volatile solvent, including carbon dioxide. “Volatile solvent” means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. The state’s examples of volatile solvents include, butane, hexane, propane, and ethanol. A Type 6 cannabis manufacturing licensee can only use nonvolatile solvents, but a Type 7 licensee can use both nonvolatile and volatile solvents in its extractions and infusions.

There are also additional manufacturing license types in the initial rules that weren’t included in the MCRSA. A “Type P” license is for entities that only package or repackage medical cannabis products or label or relabel the cannabis product container to go to retail. Entities that engage in packaging or labeling of their own product as part of the manufacturing process do not need to hold a separate Type P license. There is also a “Type N” license for manufacturers that produce edible products or topical products using infusion processes, or other types of medical cannabis products other than extracts or concentrates, and that do not conduct extractions. The Type P and Type N licenses are subject to the same restrictions as a Type 6 license.

Overall, only certain kinds of extractions are allowed for the manufacturing licensee. The state mandates the only cannabis manufacturing allowed is mechanical extraction, such as screens or presses; chemical extraction using a nonvolatile solvent such as a nonhydrocarbon-based or other solvent such as water, vegetable glycerin, vegetable oils, animal fats, or food-grade glycerin; chemical extraction using a professional closed loop CO2 gas extraction systems; chemical extraction using a volatile solvent; and any other method authorized by the state. All chemical extractions must take place within a professional, closed-loop system, which also has its own state law requirements. The rules also contain strict packaging and labeling requirements, require all personnel to be sufficiently trained, and mandate that the manufacturing licensee must ensure strict quality assurance processes and protocol, including for recalls and product complaints.

Importantly, the manufacturing rules also tell us what kinds of manufactured products can be on the market in addition to their potency limitations. California isn’t going to allow cannabis-infused alcohol, caffeine, or nicotine products and no cannabis product can be made of “potentially hazardous food.” Potentially hazardous food means any food “capable of supporting the growth of infectious or toxigenic microorganisms when held at temperatures above 41 degrees Fahrenheit.” Products that have to be refrigerated at a temperature of less than 41 degrees and any dairy or meat products are also not allowed. Edibles can’t contain more than 10 milligrams of THC per serving or more than one hundred 100 milligrams of THC per package of finished product. And, for non-edible manufactured cannabis, no finished package can contain more than 1000 milligrams of THC.

Lastly, the initial licensing fee for a manufacturer license applicant is $1,000 for each application filed. Then the annual license fee is on a sliding scale based on the licensee’s annual gross revenue, starting at $2,000 if you’re making up to $100,000 on up to a $50,000 annual license fee if you’re making over $5 million yearly.

Overall, California’s manufacturing rules don’t break the mold. Their manufacturing standards appear to fairly closely track the other regulated cannabis states and even mirror some of the manufacturing regulations in the adult use states. And, though these are just the initial rules, we don’t expect much change other than the probable addition of more prohibited products to the list of no-gos, such as other states have done when it comes to gummy bears or other products that may appeal to kids.

California cannabis San BernardinoCalifornia has 58 counties and 482 incorporated cities across the state, each with the option to create its own rules or ban marijuana altogether. In this California Cannabis Countdown series, we plan to cover who is banning, who is waiting, and who is embracing California’s change to legalize marijuana — permits, regulations, taxes and all. For each city and county, we’ll discuss its location, history with cannabis, current law, and proposed law to give you a clearer picture of where to locate your cannabis business, how to keep it legal, and what you will and won’t be allowed to do.

Our last California Cannabis Countdown post was on Yuba County, and before that, Marin CountyNevada County, the City of Lynwood, the City of CoachellaLos Angeles County, the City of Los Angeles, the City of Desert Hot SpringsSonoma County, the City of Sacramento, the City of BerkeleyCalaveras CountyMonterey County and the City of Emeryville.

Welcome to the California Cannabis Countdown.

Location. Ah, San Bernardino County, part of the fearsomely named Inland Empire. The county is located in southern California and it is the fifth most populous county in the state and the twelfth most populous county in the United States. With a geographical area covering 20,105 square miles, San Bernardino County is the largest county by area in the United States. When you fly into San Bernardino County for the first time you’ll probably take a second look at your ticket when you see Ontario as your destination. You will also notice the majestic San Gabriel Mountains and you’ll also feel the winds whipping off of them and making you wish you had driven and not flown.

History with Cannabis and Current Cannabis Laws. In 2011, the San Bernardino Board of Supervisors adopted ordinance No. 4140 banning medical marijuana dispensaries and outdoor cultivation in the Count’s unincorporated areas, with a minor exemption for one or two people to cultivate their own cannabis indoors. It wasn’t then surprising that the Board of Supervisors moved in 2016 to ban all commercial cannabis activities within San Bernardino County with ordinance 4309 (now Chapter 84.34 of the County Code). Section 84.34.040 of this new ordinance provides for the following exemptions:

The prohibition concerning commercial cannabis activity does not apply to a person with an identification card cultivating cannabis for his or her personal medical use or to a primary caregiver cultivating cannabis for the personal medical use of no more than five specified persons with identification cards, subject to the following requirements:

(a)     The cannabis is not sold, distributed, donated, or provided to any other person or entity.

(b)     A primary caregiver may only receive compensation in full compliance with Health and Safety Code § 11362.765, subdivision

(c)       Cultivation may only be conducted indoors at the private residence of the person with an identification card or the primary caregiver of the person with an identification card.

(d)       Cultivation shall be limited to no more than:

(1)         Twelve cannabis plants per person with an identification card or primary caregiver per private residence; and,

(2)       An aggregate total of 24 cannabis plants per private residence when more than one person with an identification card or primary caregiver lives at the private residence.

Proposed Cannabis Laws. Though San Bernardino County still stubbornly maintains a restrictive stance towards marijuana, the residents of the City of San Bernardino voted for Measure O on November 8, 2016. Measure O, known as the San Bernardino Regulate Marijuana Act of 2016, authorizes the City of San Bernardino to regulate both medical and recreational cannabis businesses consistent with California State law. Measure O’s implementation has however been delayed by two lawsuits asserting that its zoning restrictions too narrowly constrict the areas within the city in which a cannabis business can operate. Though it is unfortunate these lawsuits are delaying the issuance of City of San Bernardino cannabis licenses, it is at least good to see progress being made on cannabis in the Inland Empire. San Bernardino County and many of its cities still prohibit marijuana businesses but we see many other cities within the county and the rest of Inland Empire following the City of San Bernardino’s lead within the next year.

 

 

Marin County MarijuanaThough I just wrote about Marin County as part of our Cannabis Countdown series a few weeks ago, there have been major changes since then that warrant this update. Let’s start with a quick recap. In December of 2015 Marin County passed an ordinance (effective in February of 2016) giving its Board of Supervisors authority to license medical cannabis dispensaries in unincorporated Marin. This ordinance allowed up to four dispensaries in two zoned areas. Ten applications were submitted to the Marin County Board of Supervisors and open to public hearings.

I attended those meetings and left with the impression that most of the applicants were not properly prepared to deal with the public opposition they faced. The applicants were outmatched on issues like dispensary location and partner selection and they clearly had not invested sufficient time in garnering support from the local community. The County Administrator, Matthew Hymel, obviously felt the same way as he rejected all ten of the applications for a Marin County medical cannabis dispensary per the following statement:

After reviewing 10 vendor and site locations, the County Administrator has not approved any of the applications and has recommended a revised approach to licensing medical cannabis dispensaries in unincorporated areas.

After reviewing license applications and considering comments from the public, a volunteer advisory committee, and County staff, the County Administrator notified all the applicants that he was not approving their applications. Hymel said he plans to recommend that the Marin County Board of Supervisors consider a revised ordinance that would disconnect the selection of the operator from that of the location. In addition, he is recommending that the Board explore a delivery-only dispensary model to address concerns raised by residents at public meetings and via submission of written comments.

“This decision illustrates the challenge in finding the right combination of operator and location to provide patients with safe access to medical cannabis locally,” Hymel said.

The Community Development Agency (CDA) received 10 applications in designated locations where a medical cannabis dispensary could be permitted, and residents voiced opinions at three public meetings hosted this winter by CDA staff and members of the advisory committee. Of the 10 applications, eight were in the Highway 101 corridor zone and two were in the Central/West Marin zone. The 101 corridor applications included three in the Black Point area east of the Novato city limits, one in Santa Venetia near the San Rafael city limits, and four in the Tam Shoreline area between Mill Valley and Sausalito. The Central/West Marin applications included one in San Geronimo Valley and one in Marshall.

Although cannabis is considered an illegal drug by the federal government, Proposition 215 ensures that seriously ill Californians have the right to obtain and use cannabis for medical purposes upon receiving a recommendation from a physician. The County’s ordinance is consistent with the state’s Compassionate Use Act and Medical Cannabis Program. A licensed dispensary would have to be least 800 feet from schools, public parks, smoke shops, and other cannabis dispensaries to qualify for a license.

Medical cannabis dispensaries remain prohibited in unincorporated Marin, and none are open or permitted in any of the county’s towns or cities. The ordinance establishes a regulatory framework to license nonprofit patient collectives to meet the medical needs of local patients, many of whom have voiced the need for local dispensaries before the Board of Supervisors.

Though a big (perhaps fatal) setback for these ten applicants, these rejections open the door for businesses and individuals that want to operate a medical cannabis dispensary in Marin and are willing to invest the time and resources to obtain County approval. It’s important to note that 73% of Marin residents voted in favor of the Compassionate Use Act and nearly 70% approved the Adult Use of Marijuana Act so it’s clear Marin County amply supports medicinal and recreational cannabis, at least for those applicants who do not take that support for granted.

As we have often write on here, if you are looking to snare any sort of cannabis license, it is incumbent upon you (or at least your counsel) to know the sensitive local government and local populace issues in play. We’ve seen cities and counties time and time again change their minds on interim and permanent cannabis ordinances, each of which can tremendously impact our client’s bottom-lines. To position yourself to know when these changes are coming and to be able to influence them, you need to get to know your city or county council/commission’s voting agenda and make yourself a part of the local lawmaking process. Doing this can give you a place at the table in drafting or effect change on pending ordinances while at the same time enabling you to stay on top of potential and actual changes. Staying on top of local laws requires action and vigilance. If you are not going to stay alert so as to benefit your cannabis business, hire someone to do that for you.

Whenever a city or county is about to start issuing cannabis licenses for the first time, there will be a vocal part of the community that will come out forcefully against marijuana or against marijuana in their neighborhood. Fortunately, just being loud is not always going to be a winning position against a cannabis business that has spent the time engaging with the community in which it hopes to operate. There will eventually be cannabis businesses in Marin County, but first some fences need to be mended.

California Cannabis laws: Yuba CountyCalifornia has 58 counties and 482 incorporated cities across the state, each with the option to create its own rules or ban marijuana altogether. In this California Cannabis Countdown series, we plan to cover who is banning, who is waiting, and who is embracing California’s change to legalize marijuana — permits, regulations, taxes and all. For each city and county, we’ll discuss its location, history with cannabis, current law, and proposed law to give you a clearer picture of where to locate your cannabis business, how to keep it legal, and what you will and won’t be allowed to do.

Our last California Cannabis Countdown post was on Marin County, and before that, Nevada County, the City of Lynwood, the City of Coachella, Los Angeles County, the City of Los Angeles, the City of Desert Hot SpringsSonoma County, the City of Sacramento, the City of BerkeleyCalaveras CountyMonterey County and the City of Emeryville.

Welcome to the California Cannabis Countdown.

Yuba County has a very strict cannabis ordinance and a very active Sheriff’s department. Though at one point the County allowed up to 99 cannabis plants, after an influx of large-scale grows and complaints from locals about the “negative” impacts of cultivation on the community, their current regulations allow a maximum plant count of 12, regardless of acreage, and cultivation is limited to indoor, accessory structures. Attempts to change the ordinance through lawsuits and ballot measures have all failed so far.

LocationYuba County is located in California’s Central Valley along the Feather River. It was one of the original counties of California formed when California became a state. It borders Nevada, Placer, and Butte Counties, which are all popular cannabis cultivation areas. The County lies along the western slope of the Sierra Nevada and a lot of agriculture businesses are located west of the mountains and include fruit orchards, rice fields, and cattle grazing.

History with CannabisOn May 1, 2012, Yuba County adopted its first marijuana regulations under Ordinance No. 1518, which was later amended on December 18, 2012 by Ordinance No. 1522. The County’s first Marijuana Cultivation Ordinance allowed for both indoor and outdoor cultivation with maximum a plant count based on parcel size. No more than 18 plants were allowed on parcels less than one acre with up to 99 plants allowed on parcels 20 acres or more.

In 2014, following concerns from local citizens regarding the effects of marijuana cultivation and other factors, the Yuba County Board of Supervisors initiated a full review of its Marijuana Cultivation Ordinance.

On April 28, 2015, the Board passed Urgency Ordinance No. 1542, which repealed and reenacted the County’s Marijuana Cultivation Ordinance, establishing a complete ban on outdoor cultivation and allowing only limited indoor cultivation.

On June 7, 2016, voters in Yuba County voted to defeat two marijuana ballot measures. Measure A would have increased the number of medical marijuana plants that could be cultivated on parcels of land greater than one acre and allowed for cultivation of medical marijuana outdoors and within residences. Measure B would have established regulations for medical marijuana dispensaries and authorized the licensing of at least one dispensary per 20,000 residents to operate within the County, allowing four or five dispensaries based on the County’s 2015 population.

On November 8, 2016, voters in Yuba County voted to defeat Measure E, which would have allowed for commercial medical cannabis activity and established regulations for cultivation, manufacturing, distribution, and transportation of medical cannabis within the County.

Current Cannabis Laws.

 Under Section 7.40.300 of the Yuba County Ordinance Code:

  1. Outdoor cultivation on any parcel is prohibited.
  2. Cultivation within a dwelling or any other structure used or intended for human habitation is prohibited.
  3. Cultivation of more than twelve (12) marijuana plants on any parcel is prohibited. This plant limitation applies regardless of the number of qualified patients or primary caregivers residing on the parcel or participating directly or indirectly in the cultivation. Further, this limitation applies notwithstanding any assertion that the person(s) cultivating marijuana are the primary caregiver(s) for qualified patients or that such person(s) are collectively or cooperatively cultivating marijuana.

Section 7.40.310 of the Code states that cannabis cultivation in unincorporated areas of the County may only occur on parcels with an occupied, legally established dwelling and shall be contained within the defined area of cultivation in one, single residential accessory structure affixed to the real property that: (1) meets the definition of “indoor;” (2) is located on the same parcel as the dwelling of a qualified patient or primary caregiver; and (3) complies with all provisions of the County code relating to accessory structures.

An “accessory structure” is defined under the County code as a separate and permitted building located on the same parcel as the residence and must meet several criteria listed under Section 7.40.320. Certain accessory structures may also be required to be surrounded by a solid fence that complies with Section 7.40.330 of the County code.

Marijuana cultivators in Yuba County must also register with the County. The cultivation of marijuana in any quantity upon any premises in unincorporated areas of Yuba County without first registering the cultivation and paying the required fee is declared unlawful and a public nuisance under Section 7.40.340.

In addition, under Section 7.40.140, it is the duty of every real property owner, whether or not he or she is in actual possession of the property, to prevent a public nuisance from arising on, or existing upon, his or her real property.

Proposed Cannabis Laws.

There are currently no proposed laws to change the cannabis ordinance in Yuba County. Attempts last year to repeal the County’s Marijuana Cultivation Ordinance through ballot measures were all defeated by the voters.

Current Cannabis Enforcement.

Efforts to fight against the Marijuana Cultivation Ordinance in Yuba County have so far been unsuccessful. In 2016, the Yuba Patient Coalition filed a lawsuit against the County arguing the County’s ordinance is unconstitutional and discriminatory, however the judge ruled in favor the County.

Though there is a ban on all outdoor cultivation and a 12 plant cap for indoor cultivation in accessory structures, cannabis cultivation still occurs in unincorporated areas of the County in violation of current laws. In response, the County has taken enforcement actions against marijuana cultivators and their landlords. On March 16, 2017, the Yuba County Sheriff’s Department raided several indoor marijuana grows seizing over 3,600 marijuana plants. Property owners who lease property to marijuana growers in Yuba County also face penalties of $100 per plant per day until the plant is removed, which in some cases has resulted in fines of over $200,000, as well as the risk of felony convictions.

Unless and until Yuba County changes its cannabis regulations, it is not a good place for a cannabis business.

Marin County CannabisCalifornia has 58 counties and 482 incorporated cities across the state, each with the option to create its own rules or ban marijuana altogether. In this California Cannabis Countdown series, we plan to cover who is banning, who is waiting, and who is embracing California’s change to legalize marijuana — permits, regulations, taxes and all. For each city and county, we’ll discuss its location, history with cannabis, current law, and proposed law to give you a clearer picture of where to locate your cannabis business, how to keep it legal, and what you will and won’t be allowed to do.

Our last California Cannabis Countdown post was on Nevada County, and before that, the City of Lynwood, the City of Coachella, Los Angeles County, the City of Los Angeles, the City of Desert Hot SpringsSonoma County, the City of Sacramento, the City of BerkeleyCalaveras CountyMonterey County and the City of Emeryville.

Welcome to the California Cannabis Countdown.

I’d bet most Californians would be surprised that Marin County, known for its affluence and laid back lifestyle, does not have a single licensed medical marijuana dispensary collective (though there are some delivery services). It’s been twenty years since the enactment of the Compassionate Use Act – which 73% of Marin residents approved – and Marin is still figuring out how to convert the will of its voters into practice. This resistance by Marin County elected officials to move forward on cannabis is even harder to grasp after the more recent results of the Adult Use of Marijuana Act (AUMA) vote where nearly 70% of Marin residents voted for marijuana legalization. Prior to the AUMA, the California State legislature passed the Medical Cannabis Regulation and Safety Act (MCRSA). The MCRSA covers the comprehensive licensing and regulatory framework for medical cannabis while also granting local jurisdictions the authority to enact their own licensing requirements. Under the MCRSA, a license applicant must demonstrate local approval to secure state licensure. And under the AUMA — though licensees do not need local approval to receive a California state cannabis license, they must be in compliance with all local laws to be able to open the doors of their cannabis business. In turn, the MCRSA and the AUMA are motivating jurisdictions to act, and with the intent of its voters so clear, Marin is slowly taking steps towards local marijuana business licensing.

Medical marijuana is still banned in Marin County’s cities but some, like San Rafael and Larkspur, are gradually adopting local marijuana regulations. The Marin County Board of Supervisors – which has jurisdiction over the unincorporated areas of Marin County – has taken the lead in licensing medical marijuana entities, but not recreational marijuana businesses yet. Under its current medical marijuana ordinance, the Board has authority to issue up to four medical cannabis licenses in Marin County’s unincorporated areas. Over the past couple of months, the County held three public hearings for ten applicants vying for those four licenses.

I attended those hearings and it was clear to me that many of the applicants had not done their homework and therefore had essentially disqualified themselves from getting one of the four medical cannabis licenses. Many disqualified themselves by submitting incomplete or misleading forms. Worse yet, some disqualified themselves by having questionable business partners, which in turn incited the community’s ire — which is not something you want to do in Marin County!

These hearings also call to mind something our cannabis business lawyers are always telling our clients: be careful what you share on social media because your posts can come back to haunt you. At one of the hearings I attended, one license application faced a barrage of attacks because the applicant had partnered with someone whose social media posts glorified essentially the worst stereotypes of marijuana. This individual had Facebook and Instagram accounts glorifying guns, drugs and money, perfectly feeding into the sort of cannabis fears pot prohibitionists love to peddle. Printouts of this person’s social media posts were passed out to everyone at the hearing, both attendees like me and representatives of the Marin County Board.

As California cities and counties continue to put local regulations in place for medical and recreational marijuana operators, marijuana business applicants must start now in developing the first (and second) impressions they will be conveying on their communities, especially if you are looking to open a cannabis business in an county like Marin that is really just getting started with legal cannabis businesses.

What I saw at these Marin County hearings reinforced how critical it is for potential cannabis licensees to do their due diligence regarding the pressure points of the community in which the cannabis business will be located. For example, are you seeking to enter a community where you are likely to run into aggressive NIMBYs or one with such restrictive cannabis business regulations that it is nearly impossible to operate? See High Dive: How To Fail In The Marijuana Industry. With California’s “new” legalization comes new opportunities to find the best possible and permissible location for your new or renewed cannabis business and new opportunities to engage and educate the relevant community to alleviate concerns and misbeliefs.

Editor’s Note: Habib recently joined our firm as an attorney in our San Francisco office, where he will be focusing on mostly California cannabis regulatory and dispute resolution issues.