HomeMy WebLinkAbout7/6/2017 - STAFF REPORTS - 00 Rick Pantele City of Palm Springs, CA - Medical Marijuana Recommendations Comments July 6`h 2017
Dear Mayor, Mayor Pro-Tem and City Council,
I regret that last night I ran late getting to the meeting and was unprepared with my notes to speak.
Because I consider this important opportunity, I decided that it would be best to reiterate what I try to
express in my public comments. I appreciate you taking the time to read this.
Mission
Everything that we are doing is always been about the patients as far as I am concerned and has always
come down to three words: SAFE, AFFORDABLE,ACCESS.
Safe to a patient means the following:
All medications are tested.They can cause no harm.
All medications are clearly labeled for safety and verification of testing results for both THC/CBD
percentages as well as harmful toxins„ molds,fungus, pesticides, insects/insect eggs, non-rinsed
chemical from bad grow, etc.
The collective is secure and properly lit with required security equipment and procedures.
Operators in possession of patient files observe enforce strict HIPPA policies and law, requiring software
and database security protection to preserve and protect the confidential medical information.
The person that delivers my medication to my home represents a legal, permitted/licensed Delivery or
Dispensary/Collective and they have been background-checked and verified clean, and insured.
Ultimately,Safe means that a patient would never have the option of being able to purchase medication
from an illegal/unlicensed delivery operation, because they do not exist.
Affordable represents the concerns patient not end up incurring the cost of high rents and taxes.
My proposal for taxes is to start at $10.00 psf from 2018—2021-3 years
Increase that tax rate to $12.00 psf in 2021=
Cap at 15%in 2025 and or allow the rate to adjust, when and if over-saturation lowers market value
Additionally, I believe treating the permitted/licensed medical marijuana businesses/owners no
differently than others is appropriate.
The fact is startup cost for all businesses is significant and sometimes uncertain,so the first two years
are critical. Additionally they do not enjoy the rights of other businesses when it comes to tax
exemptions and other banking issues,which increase overheads greatly.
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Rick Pantele City of Palm Springs, CA Medical Marijuana Recommendations Comments July 6`h 2017
The concern here is that by imposing a higher tax rate during these first two years,could place an unfair
burden on them. Allowing them to"grow into their tax rate" might allow them to solidify their
permanency in the community,thus guarantying tax revenues ongoing versus startup and fail in 2 years.
When I use the term unfair I do so as bear witness to the fact that Palm Springs City Government has
always expressed fairness on all Cannabis related issues, since day one.
Access means:
Delivery-That as a patient, nothing prohibits me from obtaining my medication. Currently the hours of
business are good and the location are proper the one thing missing is delivery. If you are doing
treatment and or homebound or without vehicle then be able to obtain your medication can be very
difficult. Delivery must be an option offered by licensees in my opinion.
Ad hoc committee becomes a standing committee- I am certain that I speak on behalf of the patients
without the wherewithal to attend meetings, let alone speak to you at the podium.That is why I
respectfully again offer my overall concerns for the entire marijuana medical marijuana ordinances that
the ad hoc committee be a standing committee for a minimum of 90 days possibly one year. This allows
the patients effected by this ordinance to voice their opinions and concerns with the City and a select
panel of professions in law, medicine, security,etc. which I recommended in past communications.
It is critical for everyone to get together with the upcoming new `legal marijuana"world we will be in
soon to bring together professionals such as police doctors patients caregivers all get involved in helping
the newly hired law firms,to produce revisions in the existing ordinance, which closes all the loopholes
and all illegal delivery operations
Addition Governance Required
These loopholes should include disclosure of financial investment over$10,000 and or percentage
ownership verification via background check.This will help keep bad money from even thinking about
coming to Palm Springs
Regulation and enforcement of testing and taxing are the most important components in revisions to
the ordinance.
As I have said in the past, I feel that this industry has a lot to offer many people.The amount of money
involved is gigantic so it will also offer opportunity for bad people to do bad things. Without proper
enforcement or regulation,the ordinance is feckless.
Department of Cannabis or Department of Marijuana Again, I strongly recommend creating the
Department of Marijuana be budgeted out and initiated immediately. Especially now,while the city is
paying for these specialized law firms. City staff can be educated and trained on exactly how to do their
job and we spend less on future expenses with outside law firms, keeping business in house.
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Rick Pantele City of Palm Springs,CA Medical Marijuana Recommendations Comments July 6`h 2017
Staffing it with at least one full time and possibly one part time officer,they can interact with all the
agencies and city departments and government at city hall and safeguard them from overload;falling
behind in ongoing duties due to the possible unexpected overload caused by increased demand.
There duties beyond with regulating and enforcement would be working with other agencies in the city
and public communication. Getting the word out with media to help answer questions the residents are
now going to have about what is legal and what is not, starting in January.
The potential tax revenues from cannabis and cannabis-related commerce are significant enough to
warrant and easily finance this department implementation to deal with commerce which is no different
from gambling alcohol or cigarettes or Lottery. We're not selling shoes.
Closing Illegal Operations,specifically delivery and online.
One of the ways to stop the illegal deliveries is to make sure that the company called Weedmaps can no
longer allow people to see the illegal, unlicensed dispensaries and businesses operating and advertising
in Palm Springs.
My thinking is a required official notice or warning that they are taking risk dealing with illegal
operations and that these facilities are not licensed by the city.
I spoke with Geoff Kors about this and we may have a few ideas and it may start in Sacramento,
nonetheless, Palm Springs has the rightto make up its own laws regarding anything to do with
marijuana in their city limits for at least the next few years. They can break ground here and put their
foot down on those who assist in illegal actives.
Financed program to close down the illegal operations
I have put something together a smart, effective and affordable plan of action, which will not cause
harm to patients or cause an uproar. It will in an over a short period, put an end to the illegal operations
running in our city.
I am prepared to review with you for your suggestions and approval review. Consider these numbers
when thinking lost revenues:As mentioned last night, over the past 2.5 years I have purchased from one
licensed collective in the City of Palm Springs,close to $20,000 worth of medication.
I drive from Rancho Mirage to Palm Springs to make this purchase. Clearly,this is an example of a large
chunk of taxes paid by one patient to the city.
Therefore, if patients are purchasing their medication through illegal delivery operations,that money
which should be going to the city, currently being stolen/pocketed, by the illegal operator.That is just
plain wrong and must be stopped.
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Rick Pantele City of Palm Springs,CA Medical Marijuana Recommendations Comments July 6`h 2017
Action now will generate significant funds for city budget
Some of these activities have been going on for 10 years now.There are at least three or four illegal
delivery operations advertising on Weedmaps that are probably generating incomes up$10,000 every
single day and that is not an exaggeration.
Do the math then you understand why I continue to express my concerns as I find this an oversight and
an utterly egregious violation of the law. I have been trying to express this to you all for the last 8 years
and no one has chosen to discuss it or deal with the issue. Now the state will force everyone to deal with
it and it is my hope we shall lead the way. We're certainly "legaled up" enough to handle the task, admit
the obvious and plug the hole, leaking dollars from the city coffer.
I look forward to being able to work with you all to improve the ordinance and resolve issues,which
protect and benefit the patients without concern of adverse effects to the community.
ectfu I ly,
ick Pantele
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