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Jun 14, 2023

Dispensary owners ask city to legalize

At its next meeting, Galt City Council will consider ways of gauging community opinion on legalizing commercial cannabis businesses. Two Wilton residents have been regular advocates for legalization, as they hope to open a dispensary in Galt.

Scott Robinson and Ashley Kammerer recently gave the Herald a tour of their existing dispensary, Davis Cannabis Collective, where they spoke about how they run their business and why they want to add a Galt location.

Davis Cannabis’ 2,400-square-foot space in a Davis business park beside Highway 99 is in the same building as other cannabis businesses. The building next door has a gym, as well as three businesses for children: a fencing school, a swimming center and a dance studio.

While the state sets a buffer zone prohibiting cannabis businesses within 600 feet of certain "sensitive uses" like schools and daycares, the last three listed businesses don't fall under that definition. Kammerer highlighted her company's coexistence with those businesses.

"This is not in the legislation considered sensitive use, but a lot of people would consider those businesses sensitive-use businesses, and we can operate and support each other as neighbors, and there's no conflict there," Kammerer said.

Neighboring businesses told the Herald similar things. An employee at the swimming center said there have been no problems with Davis Cannabis.

"Nothing about them (Davis Cannabis) as a neighbor feels different from any other business," said Alex Aguiar of Community Fitness Davis.

Late in the morning on a Friday, a customer or two entered Davis Cannabis Collective every few minutes. They were greeted by a receptionist and a security guard in a large lobby area decorated with blues and creams, with art depicting ocean scenes on the walls. Pop music played over a speaker, and a poster advertised "buy one, get one half off" deals.

The receptionist scanned each customer's ID and sent them to the sales area, a smaller room off the lobby, where a staff member helped them make their selection. The dispensary has a bank account, allowing it to accept debit cards as well as cash, but not credit cards.

The products on offer run the gamut from cannabis flowers to edibles to cannabis vape cartridges. The company's supply chain is entirely within California; it is legally required to buy only from state-licensed distributors, which must have their products tested for cannabinoid content, pesticides and other factors. Non-single-use items come in childproof containers.

Kammerer said most of the business's customers visit because they want to improve their sleep, with pain and anxiety relief being other common reasons.

"They don't want to get intoxicated or high," Kammerer explained. "They just want to manage whatever situation they’re in, whether that's some sort of mood disorder, chronic pain, anxiety or insomnia issues."

Most of the claimed health benefits of cannabis currently lack scientific backing. Kammerer and Robinson said they rely on customer feedback, personal research and years of industry experience to help customers decide what product to use. Nonetheless, they welcomed more scientific inquiry into cannabis.

Kammerer and Robinson said they devote a lot of resources to complying with multiple layers of regulation while also implementing voluntary, goodwill measures.

For example, it is required to verify customers’ ages with their ID; in California, a person must be 21 years old to purchase cannabis for recreational use, and 18 with a doctor's recommendation for medical use. Davis Cannabis’ practice of scanning IDs takes the rule a step further and also lets it keep records of customers’ purchases.

Asked about the possibility of children accessing cannabis, the owners noted they do not allow children on the property and said dispensaries do not increase underage cannabis use.

The company also has customers sign a set of 19 rules for their behavior in and around the business. Among other things, signers agree to behave respectfully, not to loiter around the business, and not to operate a motor vehicle while under the influence of cannabis.

The owners said they have needed to ban only a few people, for disrespectful behavior but never for cannabis-related issues. The security guard by the door, who periodically patrols the outside of the building, makes sure people don't loiter.

On a shelf sits the various permits and licenses that Davis Cannabis had to acquire from the state and the city of Davis to operate. A permit from the police department cost $20,000 per year; the state business license is $45,000 per year.

The company has agreed to pay 1% of its gross receipts to the city of Davis as a community benefit fee, with half going to the local school district and the other half going to a Yolo County nonprofit for underprivileged children.

Many cities that legalize cannabis reach a similar fee arrangement with businesses, but Galt's interim city attorney has said this route has potential legal pitfalls compared to a voter-approved tax.

Customers who buy cannabis in California see at least two taxes on their receipt: the state's 15% cannabis excise tax and the sales tax. In addition, the local jurisdiction can impose its own tax.

For Davis Cannabis in particular, each purchase includes Davis’ 10% cannabis tax, the 15% excise tax, and 8.25% sales tax, and the taxes compound rather than applying solely to the sticker price.

Robinson felt the tax burden, which also changes regularly, is excessive.

"You’re never going to stamp out an illicit market by having (the legal market) be twice as expensive as the illicit market," he said.

Ultimately, Kammerer and Robinson said they want dispensaries to be treated like other businesses. Even in places where cannabis is legal, they said, landlords are often reluctant to rent to cannabis businesses; paired with buffer zones, it can be difficult to find a location.

The owners felt that allowing dispensaries in Galt would make cannabis more accessible for residents who currently use it and attract people from other communities, who might patronize other local businesses.

Kammerer and Robinson encouraged locals to visit the dispensary for a tour. Davis Cannabis Collective is located at 2121 Second Street, Suite C101, in Davis.

"This is a … product that the public needs safe access to," Kammerer said.

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