Law and Legislation Committee Special Meeting - February 2, 2021
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Law and Legislation Committee Special Meeting - February 2, 2021
The Law and Legislation Committee met on February 2, 2021 at 1:00 PM via teleconference. The committee approved the consent calendar, selected Councilmember Eric Guerra as Vice Chair, and conducted a workshop on storefront dispensary ownership, providing direction for a comprehensive review of the cannabis program.
Consent Calendar
- 2021 Regular Meeting Schedule for the Law and Legislation Committee (File ID: 2021-00075) – Approved by motion (Harris/Guerra) with a unanimous vote.
- Law and Legislation Log (File ID: 2020-01500) – Approved; Councilmember Harris requested a clarification on item 24.
- Ordinance Amending Sections 2.62.020, 2.84.050, and 2.110.040 Relating to Youth Seats on Commissions (File ID: 2021-00040) – Reviewed and forwarded to City Council for consideration. Discussion noted that adding a youth seat would bring some commissions to 12 members; committee members expressed that tie votes are unlikely and have been discussed with commission chairs.
- Ordinance Adding Chapter 8.134 Prohibiting Industrial Hemp (File ID: 2021-00008) – Reviewed and forwarded to City Council for consideration.
Public Comments & Testimony
Public comments were received on Item 6 (Workshop on Storefront Dispensaries Ownership):
- Malachi Amen (Institute for More) – Expressed that community organizers and core entrepreneurs have not been given proper opportunity to contribute to policy. Urged that cannabis equity be a top priority and that existing dispensaries violating rules should provide financial assistance and shelf space to core participants. Stated that the process must fully engage core participants.
- Kamala Ferguson (President and CEO, United Core Alliance) – Opposed the one-person, one-dispensary rule, arguing it creates barriers for equity participants. Supported tracking ownership and beneficial ownership to prevent predatory practices, but urged allowing operators who can handle multiple dispensaries to do so.
- Brandon Bolton (Member, United Core Alliance) – Supported previous speakers, expressed shock at staff recommendations not to change the one-to-one ratio for social equity members. Urged the city to reexamine allowing social equity members to own multiple licenses and requested better communication with stakeholders.
Discussion Items
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Selection of 2021 Vice Chair (Item 5) – Chair Schenirer initially nominated Councilmember Jeff Harris, but Councilmember Harris seconded. After brief discussion, the committee passed a motion (Schenirer/Guerra) selecting Councilmember Eric Guerra as Vice Chair for 2021.
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Workshop on Storefront Dispensaries Ownership (Item 6) – Davina Smith, Cannabis Program Manager, presented staff recommendations:
- Allow ownership changes for storefront dispensaries with defined parameters.
- Retain the one-person, one-permit rule to promote diversity and prevent monopolies.
- Track beneficial ownership, but noted complexity; recommended hiring a consultant to determine best practices.
- Staff also proposed retaining a consultant to help define legal and beneficial ownership.
Committee discussion:
- Councilmember Valenzuela raised concerns about equity not being a program goal and requested better stakeholder engagement, especially for core participants.
- Councilmember Guerra noted the paradox of non-conforming uses and questioned the feasibility of tracking ownership with limited staff; supported hiring outside expertise.
- Councilmember Harris agreed with Chair Schenirer’s broader approach.
- Chair Schenirer proposed a comprehensive review of the cannabis program including ownership tracking, tax structure, sustainable funding for core program, and an economic analysis of the industry.
- Councilmember Valenzuela and Guerra supported the comprehensive direction, with Guerra adding workforce development.
Key Outcomes
- Approved consent calendar (items 1–4) unanimously.
- Selected Eric Guerra as Vice Chair for 2021 (motion passed unanimously).
- Provided direction for the second workshop: Staff will work with committee members and the City Attorney to develop a comprehensive review of the cannabis program, including:
- Retaining or modifying the one-person, one-permit rule.
- Hiring a consultant to analyze ownership tracking feasibility.
- Examining tax structure competitiveness.
- Developing sustainable funding for the core program.
- Conducting an economic analysis of the industry.
- Increasing stakeholder engagement with core participants before proposing changes.
- Consideration of workforce development and workforce training.
- No action was taken regarding retroactive enforcement for past ownership violations; staff noted the 2019 ordinance was prospective.
Meeting Transcript
Okay, thank you, Madam Clerk. I want to call this meeting of the law and legislation committee to order. Please call the role to establish a quorum. Councilmember Gedda? Here. Councilmember Harris? Here. Councilmember Valenzuela. Here. And Chair Shaneer. Here. Okay, thanks. We have a couple items on our agenda for today. Let's go ahead and look at the consent calendar. Any comments or questions around the consent calendar? Yeah, Chair, I do have a question. The piece of you know adding youth commissioners to the seats. On the two commissions where the addition of the youth commissioner brings the tally to 12, right? Well we talked to both commissions and see to see if number one, if they've ever had a six to five vote with 11 members. And none of them have. And so we think it's a pretty rare thing that might happen. And as you know, on this committee and our other council committees, we have even numbers. So if there is a tie, they they would just need to work it out. And after talking to the chairs of the committees, I don't they don't foresee it as a problem. So just roll the dice and run with it. Yeah, yeah. It would have to come like double sixes five times in a row. That's about where we are, I think on the odds. Okay, so we'll we'll work the odds on this one, Jay. All right. Thank you. Okay, appreciate it. And we did we did have a long talk about that, and particularly Mr. Winlock on the Arts Commission didn't want to replace the seat he wanted to add. So we thought that would work well. We've worked with the with the clerk's office on this. I'm sorry. Oh, yeah, sorry, I didn't want to derail from finishing that topic. Um on item two for a law and ledge log, I just wanted to make a clarification for item 24 that that was requested by me on one five just because I noticed that that was link for special. Okay, all right. I think Miss Hernandez is on the phone here. Yeah, she can make that adjustment. Oh, okay. Okay. Anything else? Is there a motion then on the consent calendar? I'll move consent, sure. Okay, I have a motion and a second. Uh please call the roll. Thank you.
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