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CBD resolution finalized

CBD resolution finalized

ANNA MARIA – The city commission has adopted a resolution providing the sales and registration requirements allowing existing CBD and hemp sellers to continue those sales by acquiring city-approved grandfathering status.

City Attorney Becky Vose presented Resolution 24-796 to the city commission on May 23 and the commission unanimously adopted the resolution on first and final reading. Vose plans to present the accompanying grandfathering registration form on June 13.

The adopted resolution and the still-pending registration form will work in unison with a recently amended city ordinance prohibiting the sale, processing or manufacturing of any product derived from cannabis (marijuana) plants – including medicinal marijuana, CBD and hemp products – while creating grandfathering exceptions for businesses that already sold limited amounts of CBD and/or hemp products as of April 1.

There are currently no full-blown CBD stores in Anna Maria and the commission’s goal is to prevent that from happening. The grandfathering provision cannot be obtained by an existing business or a new business after July 1.

The recently-adopted grandfathering provision, the newly-adopted city resolution and the soon-to-be-approved registration form satisfy the mayor and commission’s regulatory concerns while still allowing those few existing businesses to continue selling the CBD and hemp products that few realized were illegal in Anna Maria until earlier this year.

CBD and hemp products are legal statewide but Anna Maria is an exception to that rule, similar to a dry city or county that doesn’t allow alcohol sales. State-compliant CBD sales are allowed in the neighboring city of Holmes Beach, throughout Bradenton and in unincorporated Manatee County.

RESOLUTION PRESENTED

When presenting the resolution to the city commission on May 23, Vose said, “As you recall, we did change our marijuana ordinance having to do with businesses that have a fixed physical location, not to include mobile sales, in the city of Anna Maria and sell products that would otherwise be prohibited in the ordinance. This would allow them to continue.”

The resolution states all grandfa­thering applications must be submit­ted to the city by July 1 on forms to be provided by the city.

“In addition to information about the grandfather applicant and location, the grandfather applications must include a listing of relevant products sold by the business and the quantity of such products that were purchased/sold from March 1-31 and photographs of then-current supplies of relevant products,” the resolution states.

The resolution also states, “Grandfather applications must be submitted under oath and notarized.”

Vose noted the resolution gives the mayor the authority to oversee and tweak the registration and enforcement processes as needed.

COMMISSION INSIGHTS

Commissioner Gary McMullen questioned the need for the grandfathered businesses to list and photograph their CBD and/or hemp product inventory and whether that might be burdensome for the business owners.

“It’s in the very recent past and they should be able to give us that information,” Vose responded. “Then they’d give us photographs of then-current supplies of the product so we have some kind of feel for the product they have.”

Vose said there’s a finite number of hemp and CBD products already being offered for sale in Anna Maria and those business owners already have a pretty good idea of what they have and how much they’re selling.

“I don’t think this will be terribly burdensome, but if it ends up being terribly burdensome, there is the authority for the mayor to tweak this,” Vose said. “We don’t want a gift shop that happens to sell some CBD products to all of the sudden turn into a head shop where 95% of what they sell are these products.”

CBD resolution finalized
Cool Beans AMI sells a limited amount of CBD products. – Joe Hendricks | Sun

Commissioner Charlie Salem said, “I think the intent is to make sure we’re not going beyond the grandfathering. Let’s let them continue what they’ve been doing but you don’t want them to be exclusive dealers of a much broader set of these products. I think this is a way to make sure there’s something on record so we all can rest easy that they’re going to comply with what they get through the grandfathering.”

“This resolution effectively is putting a stake in the ground,” Commissioner Mark Short said, noting the resolution states that grandfathered businesses can’t increase their CBD or hemp product offerings. “It’s limiting them to where they were at as of April 1st.”

Short noted the city is aware of three Anna Maria businesses currently selling CBD or hemp products, but there might be more.

The North Shore Café offers food and drink items made with hemp powder that contains trace amounts of THC. The Cool Beans AMI coffee shop sells CBD items in addition to its coffee, food, beverage and other offerings. AMI Beach & Dog Supply sells canine-grade CBD products among its many other offerings.

Mayor Dan Murphy said the plan is to contact every business that operates in Anna Maria and ask them if they’re carrying any CBD or hemp products. If so, they have until July 1 to register for the grandfathering provision. Murphy said the business owners will be given a copy of the resolution so they know what’s expected of them.

“I’m not going to make it burdensome,” Murphy pledged.

The city’s efforts to regulate CBD sales come at a time when additional CBD restrictions proposed by the Florida Legislature are still awaiting a final decision by Gov. Ron DeSantis. If the state decreases the allowed potency and THC content of CBD products, Anna Maria’s CBD grandfathered sellers must comply with the new state law.

CBD, hemp grandfathering status advances

ANNA MARIA – The city is one step closer to adopting a new ordinance that will grant grandfathering status for businesses that already sold CBD and/or hemp products as of April 1.

On April 25, a previously discussed city ordinance, Ordinance 24-923, was presented to the city commission on first reading. The second reading and final adoption of the ordinance is expected on May 9.

The ordinance amends Section 34-2 of the city’s code of ordinances, which currently prohibits the growth, distribution, or sale of marijuana, medical marijuana, or any product derived from the cannabis plant, including hemp and CBD.

According to the proposed amended ordinance, “The growing, processing, distributing and sale of marijuana within the city limits of Anna Maria is hereby prohibited. Marijuana shall be defined for purposes of this section to include all parts of any plant of the genus cannabis, whether growing or not; the seeds thereof; the resin ex-tracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds or resin, including but not limited to ‘low-THC cannabis,’ as defined in Florida Statute 381.986.”

However, the proposed ordinance includes new language that will provide grandfathering status for Anna Maria businesses that already sell CBD or hemp products.

According to the proposed ordinance, “Businesses with a business location in the city of Anna Maria – not to include mobile sales – that, as of April 1, 2024, regularly sold product that would otherwise have been prohibited shall be eligible to receive grandfather status to continue such sales, but not to increase the volume of such sales, in accordance with procedures set forth in a resolution to be adopted by the city commission.”

Anna Maria businesses that did not sell CBD or hemp products prior to April 1 will not be eligible for the grandfathering status.

The yet-to-be-presented city resolution referenced in the proposed ordinance will establish the specific procedures to be followed by those seeking the grandfathering status, including a registration process.

During the April 25 meeting, Mayor Dan Murphy said the city is currently aware of three Anna Maria businesses that sell hemp and/or CBD products. The North Shore Café sells food and drink items that include hemp powder with miniscule amounts of THC. The Cool Beans AMI coffee shop sells CBD products in addition to coffee, food items and other non-CBD products. AMI Beach & Dog Supply sells canine-grade CBD products.

Murphy said any additional busi­nesses that sold CBD and/or hemp products as of April 1 and want to continue doing so must notify the city soon and be able to prove those pre-April 1 sales.

The proposed ordinance notes, “Nothing in this ordinance shall be construed to allow the sale of any product, the sale of which is otherwise prohibited by Florida law as then applicable.”

City Attorney Becky Vose said this provision addresses the possibility that Gov. Ron DeSantis may soon sign into state law proposed state legislation that would further restrict CBD sales and the potency of CBD products legally sold in Florida. Vose said there’s a strong possibility that many currently legal CBD/THC products would be made illegal by the proposed state legislation.

As of April 27, the proposed CBD legislation created by Senate Bill 1698 and House Bill 1613 had not yet been transmitted to DeSantis to veto, sign into new state law, or allow to become new state law without his signature.

Related coverage:

City to grandfather existing CBD, hemp sales

Commission struggling with CBD regulation

City to grandfather existing CBD, hemp sales

City to grandfather existing CBD, hemp sales

ANNA MARIA – Businesses in the city that currently sell CBD and hemp products will be allowed to continue doing so with a soon-to-be-adopted grandfathering exception.

A city ordinance adopted in 2015 to prohibit medical marijuana dispensaries also prohibits the sale of any product made from the cannabis plant, including CBD and hemp products – even though Florida law allows CBD and hemp sales.

Anna Maria leaders want to allow limited CBD and hemp sales without allowing full-blown CBD stores like those legally operated in Holmes Beach and many other Florida cities.

City to grandfather existing CBD, hemp sales
Anna Maria City Attorney Becky Vose crafted the proposed grandfathering ordinance. – Joe Hendricks | Sun

On April 11, City Attorney Becky Vose presented newly-proposed Ordinance 24-293, which contains the following language: “Businesses with a business location in the city of Anna Maria – not to include mobile sales – that, as of April 1, 2024, regularly sold product that would otherwise have been prohibited shall be eligible to receive grandfather status to continue such sales, but not to increase the volume of such sales, in accordance with procedures outlined in a resolution to be adopted by the city commission.”

To receive grandfathered status, busi­nesses that currently sell CBD and/or hemp products will have to register those business activities with the city.

The city’s efforts to revise its CBD and hemp prohibitions began in February after Holmes Beach-based CBD vendor Mel Wendell was told she couldn’t participate in an arts and crafts fair taking place in Anna Maria.

City to grandfather existing CBD, hemp sales
The North Shore Café can continue using non-CBD hemp products. – Joe Hendricks | Sun

The North Shore Café owners then received a notice of violation for selling food and drink products made with a legal hemp powder containing trace amounts of THC. The Cool Beans AMI coffee shop owners received a notice of violation for selling CBD products. Those two businesses will be eligible for city commission-approved grandfathering exemptions.

City to grandfather existing CBD, hemp sales
Cool Beans AMI will be allowed to continue selling CBD products. – Joe Hendricks | Sun

When offering public input during the April 11 meeting, AMI Beach & Dog Supply owner Janalee Gallagher informed city officials that canine-grade CBD products are currently sold at her Anna Maria business. Gallagher was told she would also be eligible for the grandfathering exception.

The proposed ordinance has not been formally adopted yet and the accompanying city resolution that establishes the specific grandfathering rules and requirements is expected to be presented soon.

The commission previously rejected a proposed ordinance that would have limited CBD and hemp offerings to no more than 10% of a retail establishment’s total inventory. The commission felt the 10% threshold would be nearly impossible to enforce and would require an audit of the retailer’s entire inventory.

STATE LEGISLATION

Anna Maria’s efforts to amend its CBD regulations occur at a time when stricter CBD regulations proposed by the Florida Legisla­ture await transmittal to Gov. Ron DeSantis to veto, sign into new state law or allow to become state law without his signature.

On April 9, Vose sent the mayor and commissioners a copy of SB 1698 and a brief summary of the proposed state law that said: “It basically prohibits the sale of hemp-based products that create euphoric effects on people by putting caps on the amount of THC concentration in hemp-based products that can be sold. The publicity surrounding the bill seems to indicate that it will prohibit a large percentage of the products sold in CBD stores.”

The ordinance Vose presented on April 11 says, “Nothing in this ordinance shall be construed to allow the sale of any product which is otherwise prohibited by Florida law.”

On April 11, Vose also noted legalizing recreational marijuana statewide will be on the general election ballot this fall.

Related coverage: Commission struggling with CBD regulation

Anna Maria seeks to amend CBD prohibitions

Anna Maria seeks to amend CBD prohibitions

ANNA MARIA – The city of Anna Maria is trying to revise its current marijuana prohibitions in a manner that would allow CBD and hemp products to be legally sold in the city.

The city’s code of ordinances currently prohibits the sale of any product derived from cannabis plants, including medical mari­juana and over-the-counter CBD and hemp products.

On March 14, City Attorney Becky Vose presented the mayor and city commission with the first reading of proposed Ordinance 24-923, an ordinance that would repeal and replace the city’s existing marijuana prohibitions.

City officials are revisiting the ex­isting city ordinance enacted many years ago that prohibits medical marijuana dispensaries in Anna Maria – an action taken shortly before Florida voters approved the legal sale of medical marijuana.

The current ordinance came into question when Holmes Beach-based CBD vendor Mel Wendel was denied participation in an arts and crafts show taking place in Anna Maria. A short time later, the owners of the North Shore Café and the owners of the Cool Beans AMI coffee shop received notices of violation for selling hemp products and/or CBD products, including a hemp powder that contains microscopically low levels of THC.

PROPOSED ORDINANCE

The new ordinance Vose pro­posed would still prohibit medical marijuana dispensaries but would allow retail establishments to sell CBD and hemp products as long as those products didn’t equate to more than 10% of the retail establishment’s inventory.

The ordinance proposed prohibiting the mobile sales of any products made from can­nabis plants unless such sales are pursuant to a city commission-approved special event at which no more than 10% of the event’s total inventory could consist of CBD and/or hemp products.

The commission questioned how a 10% inventory threshold could possibly be enforced. Mayor Dan Murphy acknowledged that would require an audit of the establish­ment’s entire inventory, which is not something the city intends to do.

Commissioner Jon Crane op­posed the proposed $500 fine for a first-time offense. He feels that’s too high and not consistent with other fines levied in Anna Maria.

Murphy said the city needs to establish a fine amount that’s rea­sonable but high enough to deter business owners from considering the daily fine to simply be the cost of doing business in Anna Maria.

Vose suggested an initial $50 per day fine that would escalate to $500 per day after five days’ notice.

Vose said the proposed Anna Maria ordinance is not modeled after the Holmes Beach ordinance that allows CBD stores and CBD sales, and as currently written, would not allow CBD stores in Anna Maria.

Commissioner Mark Short said the proposed ordinance doesn’t address the potency of the CBD products sold and he’d like that addressed in the ordinance. Short said he would like the city’s potency allowance to be as low as possible. Vose said the state already regulates the potency and labeling of CBD products and the city isn’t going to purchase CBD products and send them to a lab to be tested.

Commissioner Charlie Salem asked Vose if the city can prohibit the sale of CBD products allowed by the state.

“Yes, we can. We can regulate them,” Vose said.

Vose noted the Florida Leg­islature recently sent proposed legislation to Gov. Ron DeSantis that would further restrict CBD sales in Florida. If supported by the governor, the revised state regula­tions could impact the city’s efforts to revise its local regulations.

When asked if the city can regulate CBD and THC references on business signs, Vose said federal law prohibits the regulation of sign content.

As the discussion came to a close, Murphy said more research and commission discussion is needed regarding inventory thresholds, potency levels, fine amounts and other factors. The commission took no formal action on the proposed ordinance and the regulatory efforts remain a work in progress.

Hemp, CBD regulations to be revisited

Hemp, CBD regulations to be revisited

ANNA MARIA – The mayor and city commission plan to review and potentially amend a city ordinance that prohibits the sale of hemp and CBD products.

Hemp is a cannabis plant that contains 0.3% or less THC, the psychoactive ingredi­ent in marijuana that produces a “high.” CBD is a cannabis product that contains legally-allowed low levels of THC.

Enacted in 2015, Section 34-2 of Anna Ma­ria’s code of ordinances says, “The growing, processing, distributing and sale of marijuana within the city limits of Anna Maria is hereby prohibited. Marijuana shall be defined for purposes of this section to include all parts of any plant of the genus cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture or preparation of the plant or its seeds or resin, including but not limited to low-THC cannabis.”

At Mayor Dan Murphy’s suggestion, Anna Maria’s current hemp and CBD prohibitions are tentatively scheduled for discussion during the Thursday, March 14 city commission meeting that will start at 2 p.m.

Anna Maria’s hemp and CBD sales prohibitions came into question during the Feb. 8 commission meet­ing, when Blue Ribbon Events owner Danielle Lynch and Holmes Beach-based Edibles N More owner Mel Wendel were informed that Wendel could not sell hemp and CBD products at the arts and crafts show taking place at Roser Church that weekend. Wendel noted CBD sales are allowed in Holmes Beach because that city amended its hemp and CBD prohibi­tions in accordance with the 2018 Farm Bill that legalized hemp and differentiated it from marijuana.

When addressing the commission, Wendel said she purchases and resells CBD products produced and sold by Beach Bum Apothecary in Anna Maria (no relation to Beach Bums on Pine Avenue). She also said the Cool Beans AMI coffee shop was selling CBD products.

In response, Murphy said he wasn’t aware of any Anna Maria businesses selling hemp or CBD products.

VIOLATION NOTICES

Although not named by Wendel, North Shore Café owners Nathan Scott Geller and Colleen Geller now find themselves involved in the hemp and CBD regulation discussion.

On Feb. 13, the Gellers received a notice of violation letter from Code Enforcement Manager David DeZutter.

The notice includes the city code language pertaining to hemp and CBD sales and says, “This is to inform you that it was brought to our attention that your location may be selling CBD products which are made from hemp. If the allegation is correct, please remove all CBD products. Your imme­diate attention is required to bring your property into compliance by Feb. 23.

That day, Cool Beans AMI owner Morgan Bryant received a similar notice.

When contacted by The Sun, Beach Bum Apothecary owner Jim Harwood said he did not receive a notice of vio­lation. He said he previously utilized a commercial kitchen facility in Anna Maria to produce CBD products but he no longer uses that facility.

“The (Florida) Department of Agriculture granted me a permit to use at the kitchen. Right now, the business is not operating and I do not and have not sold items in the city of Anna Maria. My billing and shipping addresses are located in Bradenton,” Harwood said.

BUSINESS OWNER RESPONDS

The Gellers attended the Feb. 22 city commission meeting and Nathan addressed the commission during general public comment.

Regarding the notice of violation, Geller said, “I can assure you we’re not doing any of those things. As a resident and business owner, we support the intent of this ordinance, but somehow we got ensnared in this ordinance because of a product we sell at the café.”

Hemp, CBD regulations to be revisited
Some of the North Shore Café menu offerings contain hemp. – Joe Hendricks | Sun

Geller said the café uses hemp powder as an ingredient in some menu items and he showed the commission a package of the product used.

The café’s online menu includes an Acai Hemp Protein Bowl and smooth­ies that contain hemp protein, hemp seeds or hemp powder. Geller said the hemp product the café uses has a THC level of one-thousandth of one percent.

“They call it industrial hemp. Completely safe and legal. We feed this to our children. It has nothing to do with CBD,” he said. “North Shore Café has never sold CBD products. We don’t intend to sell CBD products.”

Making an analogy, Geller said, “The poppy seed comes from the poppy plant. The poppy plant also produces opium and heroin. No one is making poppy seeds illegal or banning lemon poppyseed muffins or poppy seed bagels, because they come from a different part of the plant.”

He also said, “This ordinance needs to be more specific and actually go after CBD products and synthetic CBDs.”

In response, Murphy said the cur­rent ordinance was enacted in 2015 to prohibit medical marijuana dispensa­ries before Florida voters approved the sale of medical marijuana. All three Anna Maria Island cities prohibit medical marijuana dispensaries and Holmes Beach is the only Island city that permits CBD sales.

“We didn’t want pot dispensaries in the city and we didn’t want smoke shops. That’s what that commission was after,” Murphy said, noting none of the current commissioners were in office in 2015.

Commissioner Jon Crane asked if the Gellers could wait until after the March 14 meeting to address the code enforcement citation they received. Murphy said the city is compelled to enforce the ordinance but the mayor has some discretion as to how the enforcement is conducted.

The commission unanimously supported Murphy’s suggestion to place the matter on the agenda for its March 14 meeting.

STATE, FEDERAL LAWS

According to the Florida Depart­ment of Agriculture and Consumer Services website, the 2018 Farm Bill adopted by the federal government created a process for states and tribal governments to establish state hemp programs in which individuals could legally cultivate hemp. The 2018 Farm Bill removed hemp from the federal Controlled Substances Act.

In 2019, the Florida Legislature adopted a state hemp program in which hemp is considered an agricultural commodity and hemp-derived cannabi­noids are not controlled substances or adulterants. State laws defines hemp as any part of the cannabis plant that does not contain more than 0.3% of THC.

Related coverage: Craft fair prompts CBD sales discussion