Cannabis ordinance may be in place in South Lake Tahoe by March 2019

SOUTH LAKE TAHOE, Calif. - The new city council had to tackle the big issue of a cannabis ordinance during their first meeting together on Tuesday, an issue that had been before the previous council numerous times. Two versions of an ordinance were presented but neither passed muster in the eyes of the council and they hope to have one that addresses their issues come before them at their January 15, 2019 meeting.

This was City Councilman Cody Bass's first council meeting and the first one he had to recuse himself from as he is president of the Tahoe Wellness Cooperative (TWC), South Lake Tahoe's lone medical cannabis dispensary.

The Fair Political Practices Commission (FPPC) has said that while Bass cannot participate from the dais he is allowed to speak from the floor. In the past, former Councilman Tom Davis, who is an owner of Tahoe Keys Resort, could not participate in the Vacation Home Rental discussions but he chose not to speak from the floor.

The council looked at an ordinance which will allow Bass to move his operation into adult-use with special rules, something created by an injunction he and his attorney filed which stopped the previously approved cannabis ordinance. The remaining council members will have to consider an ordinance that satisfies the injunction as well as desires from the community.

Councilmember Devin Middlebrook expressed his frustration that the "entire process has been hijacked by one person."

The former council approved an ordinance that would have already been in effect had it not been for the injunction. Bass said at the time it didn't give TWC fair consideration to move into adult-use sales, cultivation and microbusiness. The business also allows on-site consumpton, something not allowed at all under the proposed ordinance.

"Don’t let threats and bullying dictate what happens," said Oliver Starr during public comment. He asked the council to approve "Version 1."

They were close to approving that version, but a few roadblocks were in the way, and created enough of a change to the proposed ordinance that the council could not vote on it.

Should Bass be able to operate an adult-use business the council wants him to operate for three years and then conform to the existing ordinance, meaning he'd have to get his area rezoned for his desired uses, and reduce his operations to match the code and be on the same playing field as all other cannabis businesses. At that time he'd also have to apply for a license, if available.

"We need to find a win-win in this," said new Councilwoman Tamara Wallace.

She suggested the council take TWC out of the equation and make them a legal nonconforming use and allow them to be in business for both adult and medical use. "Give him his license to operate in all ways he wishes to operate," said Wallace.

Since the City is currently in litigation with Bass and TWC, City Attorney Heather Stroud said Wallace's suggestion was not possible. The City has prevailed in court to date and the matter will be part of closed session for the Council Tuesday evening.

City staff has been directed to strike out some words from the proposed ordinance so there will be an ordinance to move forward in January.

Some of those guidelines -

- Allow Tahoe Wellness Cooperative to contribute a revenue share anywhere from 0 to six percent and they will have to comply with a public safety license.
- All other approved license holders still pay the six percent.

Points of the popular version of the ordinance:

No more than two retailers are permitted in the city, unless one or both of
the permitted microbusinesses do not include a retailer component, in which
case an additional retailer shall be permitted for each microbusiness without a
retailer component, up to a limit of no more than four Retailers in the city. Otherwise, no more than two microbusiness, cultivation and retail licenses and no more than four manufacturers licenses will be approved.

Retailers may not sell drug paraphernalia and implements that may be used to ingest or consume cannabis except where such sales and operations comply with Health and Safety Code section 11364.5.

Cannabis businesses may not operate within parcel or lot located within 1,000 feet of a School, or 600 feet of a Youth Center, or 600 feet of a Day Care Center, or 150 feet of any Park, any religious institution, any residential or outpatient drug or alcohol treatment facility licensed by the State Department of Health Care Services, or hospital, that is in existence at the time the Cannabis Use Permit is issued.

There was discussion about the distances and should they go from premise to premise, not property line to property line. Change to premise boundaries was turned down at this time since many potential cannabis businesses already have identified properties to buy or lease.

The move was approved with three councilmembers voting yes - Laine, Collin and Wallace. Middlebrook voted no and Bass was recused.

The new proposed ordinance will come forward at the council's January 15 meeting.