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WORKSHOP NO. 2CANNABIS DIALOGUE
TOWN OF TRUCKEE
WORKSHOP NO. 4 MAY 11, 2017
RECAP OF WORKSHOP #3
On April 13th, the Truckee Town Council hosted the third is a series of four workshops for the Cannabis Dialogue. The
purpose of this workshop was to discuss personal and commercial cultivation and to gather community feedback.
Approximately 80 people participated and a large number provided public comment on cultivation topics. Town staff
also provided information on lessons learned from several Colorado and Oregon cities who have already tackled a number
of cannabis issues. The Council asked for more lessons learned information from California and Nevada cities who have
allowed cannabis businesses. Town staff has compiled the enclosed information to assist the Council’s understanding of
these issues.
LESSONS LEARNED FROM CALIFORNIA AND NEVADA
The Town of Truckee has previously prohibited all medical marijuana businesses; however, other cities across the State
and certain cities in Nevada have allowed these businesses. We can look to them to understand how their cities have
addressed the cannabis industry and learn from their successes and challenges. The enclosed tables depictsseveral cities
in both California and Nevada and how they have chosen to regulate and tax medical cannabis. Most importantly, staff
asked each jurisdiction what types of lessons they could pass on to us. As you will see, there is a high level of variation in
how these cities approach regulating cannabis businesses.
CANNABIS DIALOGUE
TOWN OF TRUCKEE WORKSHOP NO. 4
MAY 11, 2017
CANNABIS REGULATIONS ALLOWED USES ZONING DISTRICTS ALLOWED TAXATION OTHER FEATURES
RE
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Prohibits smokiung or consumption of cannabis on
premises of cannabis establishment
Separation requirements: 1,000’ from public/private
school (pre-12) and 300’ from community facility
Requires a security plan at application submittal
All applications go through discretionary Council
review
Display of cannabis/products is prohibited
Allows permission for entry to and reasonable
inspection of the establishment by the license division,
chief of police, fire chief, or their designees with or
without notice
Production facility
Cultivation facility
Dispensaries
Independent testing
laboratory
Arterial Commercial
Community Commercial
Industrial
Industrial Commercial
Industrial Business
Downtown Reno Regional Center
Overlay District
Redfield Regional Center Overlay
District
South Virginia Street Transit Corridor
Overlay District
Plumb Lane Crossing Overlay District
East 4th Street Transit Overlay District
North Virginia Street Overlay District
State taxes medical
sales at 2%, unclear if
local jurisdictions can
modify
Proposed bills show
tax increasing to 5%
for medical and 10%
for recreational
City Council review is required for medical cannabis businesses. The Council has the authority to place
conditions of approval on any license issued, which may include, by way of example, and without
limitation***:
- A limitation of the products and services to be produced or sold
- Hours of operation
- Accounting requirements
- Restrictions on signs and advertisements
- Acknowledgement that the applicant and the property owner understands applicable federal, state local
laws
- Hold Harmless agreement
- Surety bond
- Certificate of insurance
- Addressing the current federal priorities relating to the conflict between state and federal marijuana laws
Cannot be adjacent to residentially zoned parcels (***These are summaries of ordinance sections; RMC Chapter
5.21 should be consulted for the actual language)
Proposed state legislature would allow medical facilities to sell recreational cannabis Other states (CO, OR,
WA) do not allow medical and recreational sales within same facility
State recreational bill prohibits personal cultivation within 25 miles of a dispensary
SP
A
R
K
S
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Regulates personal cultivation - no fees,
but must register with the city to cultivate
Traffic study required with submittal for any project
which will generate more than 80 pm peak hour trips
Separation requirements: 1,000’ from public or
private schools (pre-12), 300’ from community
facilities, 1,000’ substance abuse centers
Dispensaries within Industrial zones are required
to be located on a parcel within 1,000’ of the
following intersection: McCarran Blvd and Glendale
Blvd; McCarran Blvd and Greg St; or Rock Blvd
and Glendale Ave Dispensaries may not apply
for major diviations to separation requirements
Dispensaries
Production/
manufacturing
Cultivation
Testing facility
Dispensaries: Commercial, Mixed Use
Commercial and Industrial zoning
districts
Production, cultivation and testing
facilities: Industrial
Hours of operation limits and location limits depending on zoning district in which business is located.
No drive throughs; no on-site consumption
Businesses must submit biproducts/waste disposal plan and public safety plan
Limits the number of dispensaries, limits production, cultivation and testing facilities to Industrial zoning
districts only
Limits hours of deliveries for loading and unloading
Allows every official and police officer access to every part of the premises at any time when business is open
and at all other reasonable times
Requires annual inspections
Personal/self growers are required to register with the City
CANNABIS DIALOGUE
TOWN OF TRUCKEE WORKSHOP NO. 4
MAY 11, 2017
CANNABIS REGULATIONS ALLOWED USES ZONING DISTRICTS ALLOWED TAXATION OTHER FEATURES
SA
C
R
A
M
E
N
T
O
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C
A
Regulates personal cultivation - no fees,
but must register with the city to cultivate
Traffic study required with submittal for any project
which will generate more than 80 pm peak hour trips
Separation requirements: 1,000’ from public or
private schools (pre-12), 300’ from community
facilities, 1,000’ substance abuse centers
Dispensaries within Industrial zones are required
to be located on a parcel within 1,000’ of the
following intersection: McCarran Blvd and Glendale
Blvd; McCarran Blvd and Greg St; or Rock Blvd
and Glendale Ave Dispensaries may not apply for
major deviations to separation requirements.
Dispensaries
Production/
manufacturing
Cultivation
Testing facility
Dispensaries - moratorium, no more
permits to be issued
Cultivation - Agricultural, General
Commercial, Heavy Commercial, Light
Industrial, and Heavy Industrial
Manufacturing and Testing Facilities-
General Commercial, Heavy
Commercial, Light Industrial, Heavy
Industrial, Manufacturing Industrial
Park, and Manufacturing Research
Development
Must submit a security plan and neighborhood responsibility plan (to address impacts on the surrounding area)
with applciation
City officials may enter and inspect the site at any reasonable time; may inspect and demand copies of
records (except for private medical records)
NE
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A
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Y
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C
A
Allows only 1 medical cannabis business with a
12-month review to determine impacts. If there are
no impacts, Council may vote to expand the number of
dispensaries to 3. If there are impacts or Council takes
no action, number of dispensaries will be limited to 1.
Separation requirements: 600’ from schools and public
parks
Dispensaries only;
does not allow
any other medical
cannabis related
businesses (the city is
currently considering
allowing other uses,
however)
General Business (GB) zoning district
except within the Historic Overlay
District
Local Business
Light Industrial
Dispensary permit does not grant land-use entitlement Permit expires after 12 month Cannot transfer dispensary
permit to another business/operator
Permit requires hold-harmless agreement with City
Must submit storage and transportation plan with permit application
Limits hours of operation to between 8am & 8pm
No outdoor storage of any products
Odor control devices required so that no odor can be detected off-site
Security measures required - 24 hour surveillance, safes/vaults, sensors, panic buttons, “buzz-in”entry only,
on-site security personnel, etc.
Permit allows city officials to inspect the business/premises at any time during hours of operation without notice
Considering adopting an ordinance to allow cultivation, manufacturing, testing facilities, and transportation/
distribution uses - currently in the public comment process
SA
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A
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O
S
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C
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Allows only 2 dispensaries to be established
within first 6 months from when the ordanince was
adopted (2005); the City Manager may consider new
applications beyond the first 2. Only 2 dispensaries
currently exist and the City Manager is not considering
new dispensaries
Dispensaries
Cultivation
Manufacturing (non-
volatile only)
Testing Facilities
Distribution/
Transportation
Office Commercial
Light Industrial
General Industrial
Business Park
Allows personal cultivation but does not regulate -- growers must abide by state requirements
Does not modify the state’s separation requirements
Does not add additional reguations or requirements beyond those set forth by the state
Requires a Neighborhood Meeting Application if cannabis related use occurs within 300’ of a residential use
The city appears to be considering new regulations for medical and nonmedical cannabis uses
CANNABIS DIALOGUE
TOWN OF TRUCKEE WORKSHOP NO. 4
MAY 11, 2017
When California voters approved Prop. 64, they also signed on for implementing a State tax on both the sale and
cultivation of cannabis and cannabis products. Before any potential local tax is applied to cannabis sales, the State has
imposed a 15% tax on both medical and recreational cannabis sales. In addition, there is also a State tax on cultivating
both forms of cannabis:
• $9.25/dry weight ounce on flowers
• $2.75/dry weight ounce on leaves
These State taxes will be imposed in addition to local sales tax. However, medical marijuana is exempt from both State
and local sales tax. Here’s a breakdown of how the taxation structure was created under Prop. 64:With respect to the restriction on public areas at various
places, this regulation includes the following:
• All enclosed areas available to and customarily
used by the general public and all businesses
patronized by the public, including, but not
limited to, retail stores, hotels and motels,
pharmacies, banks, professional offices and
other offices;
• In public areas of museums and galleries;
• Retail food marketing establishments, including
grocery stores and supermarkets except those
areas of such establishments set aside for the
serving of food and drink, restrooms, offices,
and areas thereto not open to the public;
• Public schools and other public facilities under
the control of a public agency other than the
Town are available to and customarily used by
the general public;
• Sports arenas, except in any area designated as
a smoking area by the owner, operator, manager,
or other person who controls the facility;
• Within any bingo facility provided, however,
that this prohibition does not prevent (1)
the designating of a contiguous area within
the bingo facility that contains no more than
fifty (50%) percent of the seating capacity of
the bingo facility as a smoking area or (2) the
providing of separate rooms designated as
smoking rooms so long as said rooms do not
contain more than fifty (50%) percent of the
seating capacity of the bingo facility.
The Town of Truckee regulates smoking within Chapter
9.03 of the Municipal Code (Smoking Pollution Control).
These regulations were adopted in the early days of the
Town’s incorporation in the early 1990’s and have not
been amended since that time. In looking at the existing
regulatory language, the Municipal Code will likely need
to be updated to address cannabis use and methods of
consumption. The Code currently prohibits smoking in the
following locations:
• Elevators
• Hospitals and health care facilities
• Public meeting rooms
• Theaters
• Public restrooms
• Restaurants
• Private office workplaces
• Public areas at various places
• Indoor service lines
WHAT DOES TAXATION LOOK LIKE UNDER PROPOSITION 64?
APPLIES TO RECREATIONAL ONLY APPLIES TO MEDICAL AND RECREATIONAL
EFFECTIVE NOVEMBER 9, 2016 EFFECTIVE JANUARY 1, 2018
STATE EXCISE TAX STATE CULTIVATION
TAXES
15% GROSS RECEIPTS OF RETAIL SALE
$9.25/OZ FLOWERS$2.75/OZ LEAVES
SALES & USE TAX
8.25% + RETAIL PRICE
So, if you are interested in buying recreational marijuana in Truckee some day in the future, the starting tax rate you
would pay is 23.25% (15% State tax + 8.25% local sales tax). A medical marijuana patient would pay the 15% State tax
plus the purchase price.
Under Prop. 64, local jurisdictions are allowed to impose a local tax above the 15% State tax, except it cannot be
an additional sales tax. In other words, the Town could impose an excise tax like a business license tax to cannabis
businesses operating in Truckee. Depending on how the Town chooses to use these revenues, a special election may be
required to approve this tax. The Town will need to determine if an additional tax should be imposed and if so, how much
and what would the revenues be used for.
WHAT ABOUT POSSESSION AND PUBLIC USAGE?
Under Prop. 64, persons over 21 years old are allowed to consume (smoke, vape or ingest) or possess, process, transport,
purchase or give away up to 1 ounce of cannabis. Functionally, it prohibits all use of cannabis in any public place and
only allows marijuana use in private spaces. The legislation does allow cities and counties to permit “pot lounges”. A
“pot lounge” is essentially a private business that could allow smoking, vaporizing and ingesting of cannabis or cannabis
products. A “pot lounge” could be established within a retail or microbusiness (i.e. a smoking room for the purposes of
cannabis consumption). This option is something the Town Council will discuss in the near future. Prop. 64 also prohibits
smoking within 1,000 feet of schools, day care centers or youth centers and while driving or riding in any vehicle.
Prop. 64 prohibits smoking where smoking tobacco is prohibited. With approval of Prop. 64, Town staff will be reviewing the
Municipal Code language and will determine what further changes will need to be made to comply with the new cannabis
regulations.
CANNABIS DIALOGUE
TOWN OF TRUCKEE WORKSHOP NO. 4
MAY 11, 2017
Several Town employees recently toured a few cannabis businesses operating in the Tahoe/Reno region. The purpose
of these tours was to help staff better understand how these types of businesses operate and look and what, if any,
neighborhood impacts result from their operations. The following pictures show a variety of facilities including a retail
medical cannabis dispensary, a processing and distribution facility and a cultivation facility.
RECENT TOWN STAFF TOURS OF CANNABIS BUSINESSES
RETAIL MEDICAL CANNABIS DISPENSARY CULTIVATION AND PROCESSING/DISTRIBUTION FACILITY
CANNABIS DIALOGUE
TOWN OF TRUCKEE WORKSHOP NO. 4
MAY 11, 2017
CULTIVATION & PROCESSING/DISTRIBUTION FACILITY (CONTINUED)TESTING FACILITY
WORKSHOP NO. 4
MAY 11, 2017
10183 Truckee Airport Road, Truckee, CA 96161-3306
www.townoftruckee.com
Cannabis page: www.townoftruckee.com/cannabis
Email: cannabis@townoftruckee.com
Administration: 530-582-7700 / Fax: 530-582-7710
Community Development: 530-582-7820 / Fax: 530-582-7889