Memorandum 15-151 Recommendations from Cannabis Advisory Commission on State Proposed Regulations

Memorandum 15-151

TO:                       MAYOR WYTHE AND CITY COUNCIL

FROM:                  CANNABIS ADVISORY COMMISSION        

DATE:                   SEPTEMBER 9, 2015

SUBJECT:           RECOMMENDATIONS ON STATE PROPOSED REGULATIONS REGARDING                                      CANNABIS

The Cannabis Advisory Commission (CAC) has been reviewing the proposed regulations submitted for comment by the State of Alaska Marijuana Control Board.  Following are recommendations from the regular meetings on July 23, 2015 and August 27, 2015 that the Commission would like the Council to approve for submittal to the Marijuana Control Board. Excerpts from the corresponding minutes have been attached for reference.

Recommendations:

STRIKE 3 AAC 306.200 a (3) AND 3 AAC 306.260 IN ITS ENTIRETY
DEFINE BROKERAGE FACILITY
IN 3 AAC 306.300 EXPLICITLY EXCLUDE GIFTING, WITHOUT MONETARY COMPENSATION, BY AN INDIVIDUAL TO AN INDIVIDUAL, PER THE ORIGINAL STATUTE 17.38.20.
OBJECT TO STATE REGULATIONS REGARDING ZONING LEAVETO THE MUNICIPALITY AS IS CUSTOMARY AND FOLLOWED IN REGULAR PRACTICE
STRIKE PROPOSED REGULATION 3 AAC 306.310 SUBSECTION 3, ITEM C

Policy Related Recommendations

RECOMMENDATION THAT THE STATE HAVE AND PROVIDE THE TRAINING FOR THE MARIJUANA HANDLER PERMIT, 3 AAC 306.325, OR DO NOT REQUIRE THE PERMIT UNTIL IT IS IN PLACE AND TRAINING TO BE AVAILABLE ONLINE.

Excerpt from the Minutes of the Regular Meetings on August 27th and July 23, 2015:

August 27, 2015:

BURGESS/HARRIS -  MOVED TO INCLUDE ALL RECOMMENDATIONS PREVIOUSLY AGREED UPON WITH THE CITY ATTORNEY INCLUDING THOSE RECOMMENDATIONS REGARDING TITLE 21 MUNICIPALITY RIGHTS OVER ZONING ISSUES BE FORWARDED TO COUNCIL FOR APPROVAL AND THEN FORWARDED TO THE MARIJUANA CONTROL BOARD.

There was a brief discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

July 23, 2015:

NEW BUSINESS

A. Memorandum from City Attorney Wells re: Commission Reviews Process Schedule Recommendations

City Planner Abboud reviewed the recommendations from the City Attorney that comment should be forwarded to the Marijuana Control Board and requested any additional recommendations.

BURGESS/LEWIS - MOVED TO STRIKE 3 AAC 306.200 a (3) AND 3 AAC 306.260 IN ITS ENTIRETY.

DEFINE BROKERAGE FACILITY IN THIS SECTION AND OBJECT TO STATE REGULATIONS REGARDING ZONIG TO THE MUNICIPALITY AS IS CUSTOMARY AND FOLLOWED IN REGULAR PRACTICE.

There was no discussion.

VOTE. YES. NON-OBJECTION. UANIMOUS CONSENT.

Motion carried.

BURGESS/LEWIS - MOVED TO RECOMMEND 3 AAC 306.300 NEEDS TO EXPLICITLY EXCLUDE GIFTING, WITHOUT MONETARY COMPENSATION, BY AN INDIVIDUAL TO AN INDIVIDUAL, PER THE ORIGINAL STATUTE 17.38.20.

Discussion on giving product and as written is conflict in what is proposed versus what is already law and belief that it needs to be clear, that the intent is to prohibit retail operations from giving away product not private and it aligns with the regulations against alcohol. Further discussion, referencing additional sections in the proposed regulations which showed the relation to business, this being a drafting error, but written broadly enough its intent is business related ensued. Commissioner Burgess called for the vote.

VOTE. NO. ROBL.

VOTE. YES. HARRIS, STEAD, YOUNG, MONROE, JONES, BURGESS, LEWIS

8Motion carried.

C. Memorandum from Deputy City Clerk re: Comments on Marijuana Regulations Set #1, Round 2

                    1. Marijuana Regulations Set #1, Round 2

MONROE/BURGESS - MOVED TO SUBMIT THE RECOMMENDATION TO STRIKE PROPOSED REGULATION 3 AAC 306.310 SUBSECTION 3, ITEM C IN THE MEMORANDUM TO COUNCIL TO FORWARD TO THE STATE.

Discussion and comments on limiting retail businesses, the financial legalities since this is still a controlled substance followed, how it is handled in Colorado and Washington.

VOTE. YES. BURGESS, JONES, MONROE, YOUNG, HARRIS

VOTE. NO. LEWIS, STEAD, ROBL.

Motion carried.

BURGESS/MONROE - MOVED TO SUBMIT A RECOMMENDATION THAT PROPOSED REGULATION 3 AAC 306.310 SUBSECTION 3, ITEM B, BE STRICKEN FROM THE DRAFT.

There was a brief discussion and clarification on the proposed regulation limiting or prohibiting a business from reducing the cost of the product to the cost of purchase and not below which basically forces the business to take a loss instead of trying to recoup any percentage of their costs.

VOTE. NO. ROBL, STEAD.

VOTE. YES. HARRIS, YOUNG, MONROE, JONES, BURGESS, LEWIS.

Motion carried.

Commissioner Harris requested assistance in making a motion to address her concern with regard to the mandatory requirement to have a marijuana handler permit prior to opening up a business.

LEWIS/HARRIS – MOVED TO SUBMIT A RECOMMENDATION THAT THE STATE HAVE AND PROVIDE THE TRAINING FOR THE MARIJUANA HANDLER PERMIT, 3 AAC 306.325, OR DO NOT REQUIRE THE PERMIT UNTIL IT IS IN PLACE AND TRAINING TO BE AVAILABLE ONLINE.

There was no further discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.