R+HEMP Network = Racial and Health Equity In Marijuana Policy

Transcription

1 R+HEMP Network = Racial and Health Equity In Marijuana Policy A PROPOSED FRAMEWORK FOR EQUITY IN CITIES AND COUNTIES REGULATING THE CANNABIS INDUSTRY Template For The City Of Sacramento The Sacramento City Council has adopted a number of ordinances relative to the cannabis industry, including regulations on dispensaries, cultivation, manufacturing and testing. Areas that remain to be addressed include delivery, non-brick and mortar dispensaries, distribution, transportation and adult use. The Council understands that a well-regulated marijuana industry leads to a safer community, increased city revenues to address drug war impacts on its most vulnerable residents and distressed neighborhoods, and, solutions for related poverty and racial wealth gaps. As policymakers duly granted local control for Prop 64 implementation by California voters, the Council has inherited the moral responsibility and obligation to correct the City s long term role of meting out institutional racism against communities of color in Sacramento. The Council hereby finds and declares that: A. Over many decades, the racially charged criminalization of marijuana took a devastating toll, particularly on African American and Latino families in the City of Sacramento. Marijuana arrests sent thousands of men and women to prison, separated families and dramatically increased poverty. B. The suffering from drug war destruction continues in the form of lifelong joblessness for people with felony convictions, income inequality, struggling entrepreneurs of color and destabilizing dysfunction leading to long term underinvestment in Sacramento s distressed neighborhoods, high teen unemployment rates and reduced access to affordable and safe housing for their families; along with vacant and/or blighted commercial and residential properties that ultimately become targets for gentrification. C. According to the ACLU, African Americans have been arrested at rates 3.7 times greater than Whites for marijuana-related crimes. At the national level, of the 8.2 million marijuana arrests between 2001 and 2010, 88% were for simply having marijuana. Recent data released by the Sacramento Police Department showed that from , African Americans consisted of 43% of marijuana arrests while making up only 15% of the population. Whites, however, made up 20% of arrests while they consist of 35% of the population. D. The legalization of marijuana presents an unjust and painful contradiction. The very product that separated and impoverished families is now primarily increasing the wealth of white entrepreneurs and investors, who belong to a population that escaped generational drug war pain, and are best positioned to capitalize cannabis market entry. E. While medical marijuana can serve to alleviate certain conditions, such as chronic pain, the recreational use of marijuana has numerous adverse health effects, and is particularly harmful to young people. Children and young people who use marijuana are at risk of slowing brain development, respiratory illnesses, and the development of schizophrenia. The younger a child starts using marijuana, the more risk he/she experiences of developing a substance abuse disorder. 1

2 With respect to the above findings and Sacramento s rapidly growing cannabis industry, the Council acknowledges that equity and inclusion demands a strong policy commitment to ensure that industry participation fairly reflects populations most impacted by marijuana related incarceration, and, that the majority of marijuana tax expenditures must be dedicated to repairing the long term damage to drug war victims, and the places where they live. Towards this end, the Council will provide the following direction to the City Manager: ANALYSIS OF MARIJUANA ARRESTS IN THE CITY OF SACRAMENTO In order to understand at a deeper level the impact of criminalization on Sacramento families, the City will create maps to show which neighborhoods in the City experienced the greatest number of marijuana arrests. In addition the City will deepen its current analysis of marijuana arrests by race/ethnicity by looking at data for the last ten years. The current study includes data only from to COMMUNITY OUTREACH, EDUCATION AND REENTRY a) Partner with grassroots community institutions and minority industry representatives to develop culturally appropriate outreach and education materials. Hold workshops and seminars targeting most impacted populations in each City Council District. Workshops and seminars will cover information that includes, but is not limited to, what is needed to successfully plan, operate and grow a marijuana business operation, along with instructions for how to apply for various city and state licenses, and comply with existing regulations. One Example: "Know the Rules Before You Invest" workshop at Women's Business Center - June 14, 2017 b) Develop an RFP for culturally competent outreach and education services targeting most impacted populations, which includes conducting up to 6 technical workshops per year focused on removing barriers to business entry, records expungement and job fairs promoting cannabis and ancillary business opportunities. Records Expungement Proposition 64, the Adult Use of Marijuana Act, passed in November 2016, provides that individuals with prior marijuana convictions on their criminal record who are no longer in the criminal justice system can apply to the court where they were convicted to have the offense(s) reduced or dismissed. Reduction or dismissal can open doors to employment, access to housing and education. Legal Clinics will be one-day event held twice per year to provide free legal services to individuals eligible to have their convictions reduced or dismissed. Participating attorneys will determine the individual's eligibility, obtain a copy of his or her criminal record, assist with completing the reclassification forms, and create and file the reclassification packets. 2

3 LEAD: Office of Cannabis Policy & Enforcement, Economic Development Department, Sacramento Police Department PARTNERS: California Urban Partnership, Youth Forward, minority Chambers of Commerce, NAACP Sacramento Branch, Minority Cannabis Industry Association, California Capital FDC (Women s Business Center), Greater Sacramento Urban League, Roberts FDC, Mutual Assistance Network, Neighborhood Wellness Foundation, Brother To Brother, KDEE FM Radio, Small Business Development Center, Wiley Manuel Bar Association (expungement attorneys who don t represent cannabis industry), McGeorge School of Law, Los Rios Community College District, CSUS, UCD, Voice of the Youth, La Familia, State of California, etc. TIMING: First Workshop August 26, 2017, Location TBD RFP Announcement -??? (Complete RFP and secure consultant by August?) RFP Deadline -??? POSITION ON RESTRICTING CRIMINAL BACKGROUND CHECKS City Equity requires that imposed criminal background requirements be responsive to the criminal justice system s disproportionate enforcement against historically marginalized populations; look no further than the City s cannabis arrest data to see how disparately controlled substance statutes have been applied across racial lines. Accordingly, our coalition recommends excluding ALL drug offenses from background offense restrictions, and only including recent convictions of fraud and violent offenses. Further, City background checks should only apply to cannabis business applicants as opposed to employees of cannabis operations. Business applicants with recent convictions should also be afforded the option to petition for reconsideration to present evidence of rehabilitation, which the City should specifically define. Further Clarification: The background checks only apply to owners. If someone was recently (to be defined) convicted of fraud or a violent offense, they may be excluded from taking ownership positions, but have an opportunity to petition for reconsideration. If someone was convicted and served time for any kind of drug offense, allow them to take any kind of business ownership position. Owners may conduct background checks on potential employees, but they are not required to do so. For the most part, align with Prop 64. NOTE: Review differences between Prop 64 and proposed state regulations where background checks for owners are concerned. 3

4 BUSINESS DEVELOPMENT AND JOB CREATION a) Establish Equity Applicant Permit To Remove Barriers To Market Entry (Fees Waived and a 50% Allocation of All Licenses Across Supply Chain are Equity Permits) b) Establish An Industry Incubator For Equity Permits (Business TA, Mentorship, Owner Graduation Pathways - Connects Supply Chain. Look at Business Park Models To Address Land Use and Mitigate Gentrification). RAILS grant for "Innovative Focused Cannabis Incubator or Accelerator" c) Establish A Social Enterprise Model With Reentry Employment Program ( Homeboy Industries type of model currently 501 c 3 incompatible). Certify and fund 2-3 of these in the city. Use RAILS $ d) Establish Revolving Loan Fund (0% Interest) And Technical Assistance Resources Available To Equity Permit Holders e) Establish an Ancillary Business Contracting Requirement Equity Provisions & Applicant Criteria The Council intends to adapt its current ordinances to insure that people from the most impacted communities during the criminalization era and those with marijuana convictions are able to participate in the local marijuana industry. In the next phase of permitting (i.e., until June 30, 2019 in alignment with state licensing deadlines), a minimum of half of all permits will be issued to Equity applicants. An Equity applicant is a Sacramento (city/county) resident who has an annual income at or less than 80 percent of the Sacramento Average Medium Income (AMI) and either has a cannabis conviction out of Sacramento or has lived for ten of the last twenty-five years in police beats that experienced a disproportionately higher amount of law enforcement with respect to cannabis. For 2016, the 80 percent AMI threshold is ($...) for a one-person household or ($...) for a two-person household. Additional household-size AMI and a roster of the qualifying police beats shall be compiled and made available to potential Equity Applicants and the public. To address another market entry barrier identified in the City s analysis, Equity applicants are not required to pay any cannabis business permit application fees. All real estate holding or leasing requirements shall be addressed on the back-end of siting proposals. Equity licenses/permits are non-transferable. Provide all license applicants with the option to voluntarily submit race/ethnic background. 4

5 BUSINESS DEVELOPMENT AND JOB CREATION, Continued. Business Incubator For Equity Permit Holders The Incubator Program will provide a clear path to market entry, along with business growth, graduation and expansion for Equity Applicants. Entrepreneurs will have industry exposure and the opportunity to operate in a fully-developed, automated, and secure facilities for cultivation or manufacturing businesses. A delivery-only dispensary program includes assignment of each operator to a dedicated dispatch and a dedicated brand new vehicle fully developed, automated and secured with mobile security and verification solutions. The program requires zero investment of funds or capital. In addition, The Incubator will provide operators with tools, mentoring and technical support for permit processing, planning organizational structure and budget, general business administration, marketing, tax, financial management, legal and government relations support. LEAD: Office of Cannabis Policy & Enforcement, Economic Development Department, Sacramento Police Department PARTNERS: Ohana Growers, California Urban Partnership, minority Chambers of Commerce, NAACP Sacramento Branch, Minority Cannabis Industry Association, California Capital FDC (Women s Business Center), Greater Sacramento Urban League, Roberts FDC, Mutual Assistance Network, Neighborhood Wellness Foundation, Brother To Brother, KDEE FM Radio, Small Business Development Center, Small Business Administration, Wiley Manuel Bar Association, Voice of the Youth, La Familia, State of California, etc. TIMING: December 2017 June

6 TAXATION & OVERSIGHT Create the Cannabis Regulatory & Equity Commission, which is responsible for doing all of the following, in coordination with multiple city agencies: Setting, implementing and overseeing enforcement of cannabis policy, regulations and equity actions for repairing communities most impacted by criminalization of marijuana. Making determinations of suitability for cannabis owners and other individuals and entities, Issuing licenses, Acting as the administrator of cannabis revenues from licensing and taxation, which are deposited into the Cannabis Impact Mitigation Fund, and, the trustee over the revenues deposited into the Community Investment Fund. Overseeing and reporting to the public independent research and analysis related to cannabis policy and impacts. Review periodically the tax rates set for marijuana businesses and determine if the tax levels are adequate to fund the programs and strategies approved by the Council to repair the harm caused by the War on Drugs. Four (4) Equity Commissioners shall be appointed by the Mayor, with representation comprised of Government, Attorney, Law Enforcement, Banking or Finance. City Council members (excluding the Mayor) shall select three (3) applicant candidates for at-large public commissioner via an application review and nomination process. Each at-large public commissioner position shall be filled by a majority City Council vote. All commissioners must have a strong demonstrated commitment to advancing the well being and economic prosperity of the people and communities most impacted by criminalization of marijuana. This includes having combination of a history of living in impacted areas, work experience, relationships with low income residents and other demonstrated commitments, involvement and contributions. Repeal Neighborhood Responsibility Plan (NRP) Provisions The purpose of the Neighborhood Responsibility Plan (NRP) is to address the adverse impact of marijuana cultivation on the area surrounding the cultivation site. Title 17 of the Sacramento City Code requires a NRP to be submitted at the time of conditional use permit application. CUP applicants have the following options: 1. Submitting an NRP with an agreement to contribute 1% of the gross receipts of the marijuana business. 2. Submitting an NRP with an agreement to pay a NRP fee that will be established by a development impact fee study. These provisions were developed in forums that excluded Black and Brown Communities. They take a piecemeal and inadequate approach to addressing the long term impacts of marijuana criminalization. The 1% of the gross receipts is insufficient, and a hodge podge of NRP s that are not part of a comprehensive, integrated and measurable neighborhood revitalization strategy makes Drug War repair elusive. Moreover, NRP s for operations in areas without disproportionate marijuana arrests becomes a loophole for avoiding impact mitigation across council districts in a comprehensive way. 6

7 YOUTH DEVELOPMENT & PUBLIC HEALTH The Council recognizes that while medical cannabis can alleviate certain conditions such as chronic pain, and chemotherapy-induced nausea, the recreational use of marijuana has adverse health effects, particularly for young people. The frequent use of marijuana by young people has been linked to delays in cognitive development, including interfering with learning and school achievement. It also causes and exacerbates respiratory problems, and can lead to addiction, with greater risk for addiction among younger users. Marijuana use among pregnant women has been shown to cause low birth weights and developmental delays in young children. Given the intent of the Council to create a City for Youth, the Council has the goal of reducing marijuana use among young people through at least three means: 1. Dedicating a significant portion of a City Council Meeting to a forum through which public health providers and researchers can inform the Council and the Sacramento community regarding the latest research on health and marijuana use. 2. Investing marijuana tax revenues in preventative health, education and youth development with a priority on Black and Brown children and youth growing up in the most impacted neighborhoods, such as Del Paso Heights, South Oak Park, Meadowview and Valley Hi. 3. Enacting a full range of public health protections designed to eliminate marketing of marijuana targeted at young people and reducing youth access to marijuana. As a first step, the Council will change city ordinances to not allow for billboards advertising cannabis on city streets. LAND USE, PUBLIC HOUSING & COMMUNITY INVESTMENT FUND The Council is concerned with the impact of the local marijuana industry on increasing property values and thus furthering displacement and gentrification. In response, the Council will adapt is current land use ordinances to create clusters of cannabis businesses so as to reduce the overall impact of the industry. In addition, the Council recognizes that its prior actions during the criminalization era contributed to blight and economic decay in low-income, people of color neighborhoods. In response, the Council intends to set aside a portion of marijuana tax revenues to create a Community Investment Fund. Through this Fund, a Community Land Trust will be able to acquire, renovate, lease out and build upon properties that have become blighted or unproductive, with the goal of creating neighborhoods where race is never a barrier to achieving economic prosperity Through preserving and expanding high quality public housing units, and attracting new businesses to neighborhoods, the City will contribute to economic inclusion and reviving communities that have struggled for decades to thrive. Next Steps: City fully engages the R+HEMP Network in policy and timeline development Framework to Law and Legislation Committee Financial considerations to the Budget and Audit Committee Framework to Council 7