Beth Thuna
567 W. Channel Islands Blvd., #125
Port Hueneme, CA 93041
beth@420hpc.com
XXXX Newspaper
XXXX
XXXX
XXX, CA
May 15, 2021.
To the Editor of the XXXXXX,
RE: COUNTY OF SANTA BARBARA – CANNABIS REGULATION & LICENSING
Dear Editor,
I write this letter to bring to your attention the corruption surrounding cannabis operation licensing laws within the State of California, with Particular emphasis on the County of Santa Barbara. The laws have imposed unreasonable restriction on the number of licenses issued. These restrictions have introduced an avenue for misapplication of the law by city and county officials.
Following legalization of marijuana by the State of California in the year 2016, the cannabis industry in the State has grown into the largest cannabis economy in the United States. According to Forbes Magazine, sales in California hit $4.4 billion last year, up 57% from the year prior. Concurrent to the growth, the industry has seen increased economic activity and distribution of cannabis products that are safe for the consumer.
The growth of the industry has not gone unnoticed by law makers. Contrary to popular belief, the laws of California allow local governments to enact restrictive laws against marijuana. For example, did you know that on May 1, 2018, the City Council for the County of Santa Barbara (“County”) enacted Chapter 50 – Licensing of Cannabis Operations? This enactment is intended to govern and regulate cannabis-related businesses within the County. The Ordinance imposes a restrictive provision that awards only one license for each community plan area, i.e. Orcutt, Los Alamos, Santa Ynez, Eastern Goleta Valley, Isla Vista/Goleta, and Summerland and Toro Canyon combined. This means that only on retail storefront is allowed to operate within each community plan area.
According to the County, selection of the successful candidate is determined by a criteria-based application and selection process. The criteria considers various factors including to assess each applicant’s business operations proposal and neighborhood compatibility proposal. Evaluation of these proposals is based on experience owning or operating a cannabis related business, proof of corporate status from California secretary of state, step-by-step procedures to demonstrate compliance with state and local regulations for the proposed business, site visit, customer and community education plan, neighborhood compatibility plan including, but not limited to, interior and exterior design, odor control, onsite parking, compliance with community plan standards and comprehensive plan standards and any other information determined by the CEO to be necessary for the purpose of criteria-based selection.
The exhaustive application requirements were meant to ensure that the County could pick the most qualified applicant, using a holistic look at the applicant, its team, its operational history, and its proposed operations. Instead, the primary basis for the decision seems to have been site selection.
The heavy restrictions imposed by these laws cause license procurement to become extremely competitive. This exposes the law to potential under-the-table tactics, i.e. corruption. Allegations of corruption are a known occurrence when it comes to licensing.
The Los Angeles Times reported,
“Since California voters legalized recreational cannabis four years ago, allegations of conflicts of interest, bribery and bias in the permitting process have plagued cities and counties as they try to regulate the fledgling industry.”
Mjbizdaily.com has published an article highlighting some of the problems experienced in the California cannabis industry:
“In February 2017, in Huntington Park, eight medical marijuana dispensary applicants sued the Los Angeles suburb in federal court. The suit alleges several officials – including the mayor, vice mayor and a City Council member – conspired with private companies to award the city’s three dispensary permits to predetermined companies, essentially defrauding subsequent bidders of their $5,000 application fees.
In January, one licensed retailer filed suit against the city and county of San Francisco, alleging the local board of supervisors passed over the company for a license but later granted one to a competitor that had contributed thousands of dollars to several board members’ political campaigns.
In May, FBI officials raided the mayor of Adelanto‘s home and executed search warrants there, at city hall and at an MJ retailer in the city northeast of L.A. The nature of the investigation has not been disclosed, but the incident follows the 2017 arrest of Adelanto’s vice mayor, who stands accused of taking bribes to “fast-track a marijuana business,” according to the Los Angeles Times.”
Recently, the U.S. Attorney’s Office – Southern District of California published an article confirming sentencing of officials:
“Romero and Suarez-Soto, both Calexico residents, previously pleaded guilty on June 11, 2020 to conspiracy to commit federal program bribery. Per their plea agreements, Romero and Suarez-Soto accepted $35,000 in cash bribes from an undercover FBI agent whom they believed represented investors seeking to open a cannabis dispensary in Calexico. In return, Romero and Suarez-Soto promised to “guarantee” the rapid issuance of a city permit for the dispensary, and to revoke or hinder other applicants if necessary to ensure that the bribe payer’s application was successful. Moreover, both men admitted they had taken other bribes in the past. In fact, referring to this corrupt arrangement, Suarez-Soto told an undercover agent that “This isn’t our first rodeo.”
Romero previously served as Calexico’s Mayor Pro Tem, meaning he was set to become Mayor in July 2020. Suarez-Soto was appointed to the City commission responsible for promoting business and community growth and coordinating with prospective developers to help them invest in the City of Calexico. Both men resigned their positions with the City in June 2020 as part of their plea agreements.”
This year, a fresh batch of applications were submitted to the County Executive Office for consideration for storefront retail licenses. The applicants covered a diverse range of entities including those with previous experience owning or operating a cannabis business, and some who have no experience whatsoever with respect to the cannabis industry. Each applicant submitted its Business operations Proposals and neighborhood compatibility proposal to demonstrate to the County Executive their ability to perform obligations under the license.
One of the experienced applicants this year includes Higher Purpose Cannabis a.k.a. HPC. HPC is a company that has been operating in the cannabis industry for several years. It is Ventura County’s #1 state licensed female owned cannabis dispensary in Port Hueneme and Oxnard. The company was also selected and ranked at #4 as a “2021 Best Cannabis Companies to Work for” by Cannabis Dispensary Magazine. In addition, the company has over the years focused on providing top notch services as well supplying products that are regulated and safe for the consumer.
The County Executive considered each application and on April 30, 2021, the County Executive issued a final determination on the successful candidate. To the surprise of other applicants, the County Executive chose a company with zero experience either owning or operating a cannabis business. This successful applicant has now been linked to a prominent figure known to be a political contributor to City and County officials.
Despite appeals by other applicants to review the County’s decision, the County has remained adamant with it decision.
Given the diverse qualifications of the applicants, this emerging link between the County and the successful candidate suggests potential political interference with a process that by law is intended to be free and fair for all. The refusal to justify the decision by relying on public safety as an excuse suggests all the more a misapplication of the law and potential political interference.
I urge that you take this letter and its contents into consideration.
Yours faithfully,
Beth Thuna
LINKS
[1]https://www.justice.gov/usao-sdca/pr/former-calexico-city-officials-sentenced-prison-bribery
[3]https://mjbizdaily.com/local-corruption-becoming-hurdle-for-marijuana-license-seekers-in-california/
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