Getting Into The Weeds: Californians Voted On 52 Local Cannabis Measures Last Night

The “Golden State” took a decidedly green path on election night November 8, 2016, with the most high profile event being the passage of Proposition 64, the Adult Use of Marijuana Act (AUMA), which paves the way for commercial and recreational cannabis in California. The AUMA adds the hefty weight and scale of the state’s population and economy to the nationwide legalization trend now considered by some to be at the “tipping point.” However, it is crucial to note that the AUMA and its earlier enacted sibling the Medical Cannabis Regulation and Safety Act (MCRSA) both provide for local regulation by California cities and counties, essentially establishing a dual-track permitting regime that will likely require any industry player to obtain both local and state agency approvals and permits.

Thus, it is important that local laws (e.g., ordinances) not be lost in the shadow and frenzy created by enactment of Proposition 64. In fact, to the cannabis industry connoisseur, last night’s election offered much more intrigue and offerings at the local level, where a whopping 52 local measures were on the ballot in cities and counties statewide. Many involved taxing cannabis businesses, others involved cultivation, and some presented bans. Some measures were decided by razor-thin margins, but many measures were landslides, perhaps showing residents’ zeal and desire to tax cannabis if not their personal opinions about its recreational use.

While the following lengthy list can be mind-numbing, someone had to do it (and frankly, it is only the start because California has 58 counties and over 450 cities). So here is Kronick’s unofficial tally and squib on all the local cannabis measures decided last night (results based on the latest county registrars’ reports):

Passed

  1. Adelanto – Measure R (up to 5% excise tax on cannabis): 67% yes, 33% no
  2. Calaveras County – Measure C (imposing various taxes and fees on cultivators and 7% tax on retail): 68% yes, 32% no
  3. Carson – Measure KK ($25 per square foot tax on cultivation and 18% tax on gross proceeds): 64% yes, 36% no
  4. Cathedral City – Measure HH ($25 per square foot on cultivation and $1 per gram): 53% yes, 47% no
  5. Coachella – Measure II ($15 per square foot on cultivation and manufacturing due each quarter): 82% yes, 18% no
  6. Colfax – Measure H (allowing and regulating cannabis businesses with up to 15% sales tax): 63% yes, 37% no
  7. Costa Mesa – Measure X (allow testing labs and manufacturing, but no shops): 54% yes, 46% no
  8. Del Rey Oaks – Measure A (impose tax up to 10% on gross receipts): 80% yes, 20% no
  9. Dixon – Measure K (impose tax): 65% yes, 35% no
  10. Fillmore – Measure H (tax cultivation up to $30 per square foot and tax retail up to 15%): 59% yes, 41% no
  11. Gonzales – Measure W (cultivation tax of $25 per square foot and manufacturing tax of 15% gross receipts): 72% yes, 28% no
  12. Greenfield – Measure O (tax cultivation at $25 per square foot and other businesses up to 10%): 64% yes, 36% no
  13. Grover Beach – Measure L (5% tax on medical, 10% tax on commercial and square foot tax on cultivators): 71% yes, 29% no
  14. Hayward – Measure EE (impose up to 15% tax of gross sales of all products): 60% yes, 40% no
  15. Humboldt County – Measure S (tax cultivation per square foot $1outdoor, $2 mixed light, and $3 indoor): 71% yes, 29% no
  16. King City – Measure J (tax business up to $25 per square foot): 80% yes, 20% no
  17. Inyo County – Measure G (asks whether county should license medical cannabis businesses): 54% yes, 46% no
  18. Inyo County – Measure H (asks whether county should license recreational cannabis businesses): 54% yes, 46% no
  19. Inyo County – Measure I (imposes up to 5% gross receipts tax to increase over time to 12.5%): 65% yes, 35% no
  20. Lake County – Measure C (tax cultivation per square foot $1outdoor, $2 mixed light, and $3 indoor): 62% yes, 38% no
  21. La Mesa – Measure U (authorize and regulate medical cannabis businesses): 51% yes, 49% no
  22. Long Beach – Measure MM (tax gross receipts at 6% and $10 per square foot): 60% yes, 40% no
  23. Long Beach – Measure MA (tax medical dispensaries at 6-8% and recreational at 8-12%, cultivation at $12-15 per square foot, other businesses at 6-8%): 68% yes, 32% no
  24. Marysville – Measure F (impose tax at 5% up to 15%, plus $15 per square foot cultivation up to $25 in future): 63% yes, 37% no
  25. Mendocino County – Measure AI (impose 2.5% tax and $2,500 annual fee): 64% yes, 36% no
  26. Monterey County – Measure Y (tax $25 per square foot cultivation, $5 per square foot nursuries, and 10% gross receipts on others): 74% yes, 26% no
  27. Perris – Measure J (tax 10% of sales): 69% yes, 31% no
  28. Perris – Measure K (enact local regulation and licensing ordinance): 77% yes, 23% no
  29. Point Arena – Measure AE (impose 7% tax on commercial and 3% tax on medical cannabis businesses): 66% yes, 34% no
  30. Rio Dell – Measure T (allow cannabis businesses in portion of the city if taxed): 55% yes, 45% no
  31. Salinas – Measure L (tax medical and commercial up to 10% and $25 per square foot of cultivation): 74% yes, 26% no
  32. San Bernardino – Measure O (allow dispensaries): 54% yes, 46% no
  33. San Bernardino – Measure N (regulate medical cannabis): 50.04% yes, 49.96% no
  34. San Diego – Measure N (tax medical at 5%, rising to 8% in 2019 and up to 15% thereafter): 68% yes, 32% no
  35. San Jacinto – Measure AA (impose 15% tax on gross receipts and $50 per square foot cultivation tax): 66% yes, 34% no
  36. San Leandro – Measure NN (impose tax  up to 10%): 74% yes, 26% no
  37. Santa Barbara – Measure D (impose a 20% gross receipts tax on all cannabis businesses): 70% yes, 30% no
  38. Santa Cruz County – Measure 50 (extend 7% tax to cultivators and other cannabis businesses): 77% yes, 23% no
  39. Sierra County – Measure B (specifically outlaw commercial cultivation): 42% yes, 58% no
  40. Solano County – Measure C (impose up to 15% tax on all cannabis businesses): 63% yes, 37% no
  41. Stockton – Measure P (allow 4 medical dispensaries and 4 cultivation sites): 55% yes, 45% no
  42. Stockton – Measure Q (tax medical cannabis from $25-50 per $1,000 of annual gross receipts): 64% yes, 36% no

Failed

  1. Avalon – Measure X (allow up to 2 dispensaries and permit other activities with 12% sales tax): 64% no, 36% yes
  2. Butte County – Measure L (allow commercial activities): 58% no, 42% yes
  3. Costa Mesa – Measure V (allow up to 8 shops) 63% no, 37% yes
  4. Costa Mesa – Measure W (allow up to 4 shops) 59% no, 41% yes
  5. Dunsmuir – Measure Y (allow cultivation in city): 66% no, 34% yes
  6. Laguna Beach – Measure KK (allow 2 dispensaries without taxing): 71% no, 29% yes
  7. Lemon Grove – Measure V (rescind local medical cannabis prohibition and enact regulatory ordinance to municipal code): 52% no, 48% yes
  8. San Bernardino – Measure P (repeal ban on cannabis businesses): 53% no, 47% yes
  9. Upland – Measure U (allow 3 medical dispensaries and only them to deliver): 65% no, 35% yes
  10. Yuba County – Measure E (allow county to issue licenses under MCRSA): 56% no, 44% yes

Contact Kronick to discuss ways we can help you navigate these or other local and State laws and regulations applicable to the cannabis industry in California. Also, Kronick will be hosting a free "Lunch and Learn" event on Thursday, December 8th that will explore the potential legal impact of recreational use on the current state of the cannabis market. For more information and to register for attendance, please visit the event page here.