South Lake Tahoe cannabis discussion to move to evening meeting

The Cannabis Community Committee gave a presentation to the South Lake Tahoe City Council Tuesday, outlining the work they've done and recommendations for the City's ordinance for cannabis sales.

Fifteen members of the community came together as the committee and met with Mayor Pro Tem Tom Davis, Councilwoman Brooke Laine, Police Chief Brian Uhler, City Attorney Nira Doherty and City Staff member Lisa Watson to discuss and research issues facing legal sales of cannabis in the city limits.

The committee was made up of Liz Hallen, David Turner, Rosemarie Manning, Julie Wright, Jude Wood, Jane Flavin, Devin Middlebrook, Kevin McHugh, Francisco Rodriguez, Christy Wilson, Peggy Eichhorn, David Orr and Kelsey Magoon. They represented several areas of the community, both for and against drug sales.

The following are the initial set of recommendations presented, nothing that is set in stone and suggested to be able to change as time passes. They were meant as a guideline for the City Council to use as they create the City's cannabis sale ordinance:

Start a pilot program which will allow for immediate revenue sharing mechanisms until a tax measure is approved by voters. It would allow to move forward with a complete policy without the need for TRPA review. Patient access would be expedited when compared to a traditional agreement.

"This is the best of both worlds," said Middlebrook. "This would get the industry going." Funds would come in immediately from limited term development agreements that would sunset when a full ordinance is approved.

Allow up to three retail licenses, all who have to have an M license. Guidelines in other areas say one per 10,000 residents is a good fit, but with tourism the committee suggestion allowing for more customers. If demand goes up, license issuance can go up. Delivery services can be utilized if associated only with a storefront. Cars would need to be equipped with a GPS tracker and carry a maximum of $3,000 maximum in cash and product at any time.

Ban outdoor cultivation due to environmental concerns. Allow cottage and specialty cottage licenses for businesses up to 5,000 square feet.

Allow for Type N and Type P licenses as defined by the State.

Do not allow for local distribution to leave the area for now, keep distribution local.

No micro-businesses (three different licenses at one time) for now as the committee proposes no extraction licenses at this time, so only two types would be available.

Employees and management of cannabis businesses must be over 21 and have no non-marijuana felonies and not be able to consume the drug while on duty. Businesses must create a community benefits package touting safety, education and enforcement.

Support local businesses and entrepreneurs and "not a town full of McDonalds."

Location of businesses: At least 600 feet from schools and youth facilities, 150 feet from Lakeview Commons and parks with playgrounds, churches with more than 100 parishioners and licensed drug and alcohol treatment centers. The committee did not recommend locations in industrial zone only.

Revenue: "Don't want to tax so high to drive a black market," said Middlebrook. Current sales taxes of one-percent come back to the City already. The committee recommended a minimum of 3.5 percent of gross receipts for the development license, then it doesn't have to go to the voters though a final tax package can go to voters in November 2018 at the earliest.

Adopt the State ordinance with no changes on packaging, dosage posting on labels, testing and hours of operation (6:00 a.m. to 10:00 p.m.). The early start time helps the businesses with distribution, they said.

Advertising: Since the State allows for advertising only where 71.6 percent or more of the audience is reasonably expected to be at least 21-years-old. Because of this, the committee recommends that businesses comply with City and TRPA sign requirements, online and print advertising only; no imagery or characters, or medical symbols to eliminate confusion; no sandwich boards, no signage on Highway 50. Discreet but welcome and not garish with lots of neon.

State taxes will go to fun public education and grants statewide, but the committee feels South Lake Tahoe getting those funds are slim. They recommend a portion of revenue from the development agreement should to to enhancing community education programs. Retailers must have a program that provides for educational signs, pamphlets and materials (including cannabis on the developing brain for customers 26 and under), and lock bags available either on site or information on how to obtain locally.

Since many motels, hotels and vacation home rentals will not allow consumption of marijuana on the properties, and with no smoking on the street, parks, or ski resorts, the committee recommended to allow on-site consumption as long as shuttle or other forms of transportation is made available.

Businesses to have digital video surveillance with a direct log-in for law enforcement. They need to provide access to business records online.

Police to have 'no notice' inspections. Automatic closure of dispensary for upheld, intentional, violations.

All of these items were just recommendations from the committee and will be to serve as a guideline for further discussion.

"This was the 30,000 foot view of what we want," said SLT Councilmember Tom Davis. "They came up with some damn good recommendations."

Next step:

The City Council will be holding a special evening meeting on February 20 at 5:00 p.m. Due to an anticipated large crowd the location of the meeting has not been set.

"We are wanting to do this right but move it along quickly," said SLT Councilmember Brooke Laine. "I want community to have input at every step of the process.”