Fitting the Pieces Together:
Local Government and Cannabis Business
November 16, 2021
Agenda
Introductions
Local Control - Time, Place, Manner
Local Control - Time, Place, Manner
Local Perspective and License Types
4 License Types
Local Perspective and License Types
4 License Types
Testing =
Cultivation
T
T
Dispensary
Cultivation
Product Manufacturing
Retail
T
T
T
Cultivation
Extraction
Product Dev
T
Retail
T
Local Perspective and License Types
Kris Teegardin, Former Mayor of Edgewater CO
Local Perspective and License Types
Kris Teegardin, Former Mayor of Edgewater CO
“The obvious impact was the tax revenue, as our city of Edgewater, CO., was able to speed up the process of updating an entire infrastructure overhaul. We did not roll adult use cannabis taxes into the general fund, instead using the revenue for fixed assets. We basically paved our entire streets, along with curb cuts, from one year of taxes. After the infrastructure was complete, we utilized the taxes to fund a brand new civic center, complete with a gym/fitness center, city hall, police station, and district library. Those upgrades were sorely needed, as existing city properties were then able to be sold to the private sector. Edgewater collects no money from property taxes, and the entire budget is from sales tax, so the planning and execution (with the help of cannabis taxes) positioned the City for future success.”
Local Perspective and License Types
Kris Teegardin, Former Mayor of Edgewater CO
“In three years, there were three crimes committed directly related to the dispensaries themselves, but the data did not support in increase in crime directly related to the sale and/or use of cannabis in the City. Our DRE officers (and the entire department), made contact with subjects for different reasons, and cannabis could've been an accompaniment, but rarely was the main factor for police contact. In summation, we saw no measurable uptick in crime due to cannabis.
We partnered with the sheriff's office twice a year to do a drug sweep in the high school. In three years, I believe they found one edible. I am sure youth did get their hands on product (much like youth acquire alcohol, but there was no pronounced increase in use. I would, however, take a look at the State of Colorado's data regarding youth cannabis use, as we did not collect comprehensive data within the city for youth offenses.”
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Local Perspective and License Types
Kris Teegardin, Former Mayor of Edgewater CO
“Cannabis in our community didn't cost the taxpayers a dime. The City did not create extra judicial or administrative entities/authorities that would cost taxpayer money for further oversight. I suppose the chief of police and myself taking time to visit the facilities from time to time, and the few crimes directly related to cannabis, were the only taxpayer burdens. Law enforcement were supportive of the experiment, and as I said before, most contacts were not due to cannabis being the main factor. ”
Local Perspective and License Types
Kris Teegardin, Former Mayor of Edgewater CO
“The success of cannabis in the community far outpaced any negative scenarios the city planned for in the event such negative occurrences did arise. It never happened.
I wouldn't put a cap on the licenses, and just let the zoning do the work. We were a bit hesitant to oversaturate the market for such a small city, and it was after all, a new experiment…”
Local Perspective and License Types
Kris Teegardin, Former Mayor of Edgewater CO
“We used the basic framework from medical regulations and allowed all existing medical to apply for recreational within the city. State regulations really dictated what those businesses had to do to convert or add a recreational license. We basically treated the cannabis industry like any other legal business and did not impose extra red tape.
In the end, I always encourage an "inverted" taxation structure for the industry. I believe the state overtaxes and should relegate most of the taxation to cover administrative and enforcement measures. In that way, this allows local government to set the taxation policy in a more local free market environment.”
Public Health, Safety, and Security
Adult Use
Adult Use
LOCAL GOVERNMENT COMPLIANCE CERTIFICATION
In accordance with South Dakota Codified Law 34-20G-55 and South Dakota Administrative Rule 44:90:03:01, applicants for all medical cannabis establishment types must provide a certification of compliance from the local municipality or county, as applicable, ensuring the applicant’s proposed plans and location meet all local zoning and ordinance requirements.
The Local Government Compliance Certification, labelled Form E, must be filled out by the local municipality or county and returned to the applicant for submission to the state with the application. Establishment applications will not be considered complete until the Local Government Compliance Certification Form E has been received by the South Dakota Department of Health.
For applicants applying within jurisdictions that had an ordinance in place prior to October 1, applicants may submit their applications prior to the November 1 deadline without an executed Local Government Compliance Certification Form E attached to the application. The Local Government Compliance Certification Form E must be supplied to the department within 90 days of submission of the application.
LOCAL GOVERNMENT COMPLIANCE CERTIFICATION: Form E
Resources
Speaker Contact Info:
Ned Horsted�Email: Ned@ciasd.com �Melissa Mentele�Email: compassionate605@gmail.com�Matt Jorgensen:�Email: matt.j@cannabischemlab.com�Kitt Jeffries�Email: kittrick@dakotacannabisconsulting.com�Liz Tiger�Email: Liz@605 Cannabis.com
CIASD Emails: Ned@ciasd.com ; comms@ciasd.com