Anaheim Investigator

Archive for the category “Cannabis Consultants”

Fair Political Practices Commission Says Anaheim Mayor Can Participate in Vote to Legalize Cannabis Businesses

rohan-harish

Rohan Sidhu (left) stands next to his father, Harry Sidhu, the night he was sworn in as mayor of Anaheim in December 2018.

By DUANE ROBERTS
Editor & Publisher

Kevin Cornwall, Counsel for the Legal Division of the Fair Political Practices Commission, has notified City Attorney Robert Fabela that Mayor Harry Sidhu “may take part in the upcoming City Council decisions related to the regulation of cannabis distribution, manufacturing, cultivation, and retail sales” within the City of Anaheim because the “facts” show he currently does not “share his son’s economic interests.”

Cornwall’s opinion, including the legal rationale behind it, is contained within a three-page letter dated May 27th and was issued in response to a “Request for Formal Advice” Fabela sent to the commission twelve days earlier. Fabela wanted to know whether Mayor Sidhu’s adult son’s involvement in the cannabis industry precluded him from voting on related matters coming before the council at the June 9th meeting.

City Attorney Letter Re Sidhu 051520 p1

The text of Fabela’s missive is as follows:

As City Attorney for the City of Anaheim, I am seeking an immediate Formal Advice letter from the Fair Political Practices Commission (FPPC) on behalf of Anaheim Mayor Harry S. Sidhu, P.E. This request concerns two related decisions that will be before the Anaheim City Council on June 9, 2020, involving the proposed regulation of cannabis distribution, manufacturing, and cultivation in the City of Anaheim. Cannabis is currently banned in the City of Anaheim for all purposes. Mayor Sidhu’s adult son provides consulting guidance in the cannabis industry in Orange County, California, and the Mayor wishes to take every precaution to confirm that no conflict of interest exists that prevents him from participating in these decisions.

The Mayor’s son, Rohan S. Sidhu, is 23 years old and lives at home in the Mayor’s house, which is located in the City of Anaheim. The Mayor claims Rohan as a dependent, pays for utilities, food, and other amenities for the entire household, including Rohan, and receives no rent or other payments in return. While Rohan has no immediate plans to move out of the house, he is contemplating such a move before the end of the year.

Rohan started a small business in 2018 to provide ‘engineering consulting’ to individuals and businesses working in the cannabis industry. In general, he provides guidance on starting and operating cannabis businesses, with a specialization in consulting on the process of obtaining state licenses issued by the Manufactured Cannabis Safety Branch and Bureau of Cannabis Control, among other licensing agencies. He does not manufacture or distribute cannabis himself, nor does he profit directly from the manufacturing and distribution of cannabis by his consulting clients. Rohan also has no intent to provide any consulting guidance to cannabis businesses which may at any time be authorized to legally operate in the City of Anaheim.

Mayor Sidhu has never held any ownership interest in his son’s business. He has not invested in the business or made loans or gifts of money to his son that were used in the business.

The Anaheim City Council will soon face two decisions that could result in the regulation and taxation of cannabis manufacturing, distribution, cultivation and retail sales within the City. The first is an ordinance that would repeal existing Anaheim Municipal Code chapters banning cannabis use and adding chapters regulating cannabis distribution, manufacturing, cultivation and sales. The second is a City Council Resolution approving a ballot measure that would place a cannabis tax before the voters at the next general election, which requires a two-thirds vote of the City Council under the City’s Charter. If passed, the first item (the regulation ordinance) will only take effect if the voters actually approve a cannabis tax at the November 2020 general election.

Thus, Mayor Sidhu’s request is for immediate advice as to whether his relationship with his adult son, and particularly his provision of financial support to his son in the form of room, board and other amenities, creates a conflict of interest that prevents the Mayor from voting on an ordinance amending the Anaheim Municipal Code to allow regulation of cannabis, or a resolution adding a cannabis tax to the November 2020 ballot.

Because this matter will be on the Council’s June 9, 2020 agenda, we ask that you provide an advice letter before that date…

In the letter that Cornwall typed in response, he carefully reviewed the “facts” as Fabela laid them out, and then gave his opinion as to how the Political Reform Act (hereinafter referred to as the “Act“), the main state law that deals with issues pertaining to conflicts of interest among public officials, would be applied in Mayor Sidhu’s case.

FPPC Letter Re Sidhu 052720 p1

In his analysis, he wrote:

Under Section 87100 of the Act, ‘[n]o public official at any level of state or local government shall make, participate in making or in any way attempt to use his official position to influence a governmental decision in which he knows or has reason to know he has a financial interest.’ ‘A public official has a financial interest in a decision within the meaning of Section 87100 if it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally, on the official, a member of his or her immediate family,’ or on certain specified economic interests. (Section 87103.) Among those economic interests is any source of income aggregating five hundred dollars ($500) or more in value provided or promised to, received by, the public official within 12 months prior to the time when the decision is made. (Section 87103(c).)

Section 82029 defines the term ‘immediate family’ to include an official’s ‘spouse and dependent children.’ The term ‘dependent children,’ in turn, is defined by Regulation 18229.1 to mean ‘a child… of a public official who is under 18 years old and whom the official is entitled to claim as a dependent on his or her federal tax return.’ Although Mayor Sidhu claims his son Rohan as a dependent for tax purposes, Rohan is over the age of 18 years old and, thus, is not considered a ‘dependent child’ or ‘immediate family’ for conflict of interest purposes under the Act. Additionally, given that Rohan has not made rent payments or similar payments to Mayor Sidhu, he also does not qualify as a source of Mayor Sidhu’s income.

Accordingly, the provided facts do not indicate that Mayor Sidhu has any economic interest implicated under the Act …

However, Cornwall stated that “in the future, if Rohan were to qualify as a source of income, such as by making rent payments, Mayor Sidhu would have an economic interest in him. In such a scenario, Mayor Sidhu would generally be prohibited under the Act from taking part in governmental decisions that would have a reasonable foreseeable, material financial effect on Rohan.”

Cornwall warned Fabela early on his advice “is limited to the provisions of the Act. We cannot provide any advice regarding other conflict interest provisions that may apply, including common law conflict of interest…” Furthermore, he added “any advice we provide assumes your facts are complete and accurate” and that if those “facts” change, “you should contact us for additional advice.”

Downloadable PDF copies of Fabela’s and Cornwall’s correspondence can be found by merely clicking here and here.

Anaheim Chamber of Commerce Behind Efforts to Legalize Cannabis Businesses Says Interim City Manager

Greg Garcia

Greg Garcia, Interim City Manager, speaks about the proposed ordinance to legalize cannabis businesses during a Zoom townhall forum.

By DUANE ROBERTS
Editor & Publisher

At a Zoom townhall forum that Dr. Jose Moreno, councilman for District 3, hosted on Monday, May 11th, Greg Garcia, the Interim City Manager, told the online audience that the Anaheim Chamber of Commerce was behind efforts to legalize cannabis businesses within the City of Anaheim.

Revelations about the Chamber’s role in this matter, which up until now has been kept hidden from the public, was brought to the forefront by questions The Anaheim Investigator posed to Garcia during the forum. The Investigator specifically wanted to know who helped craft the proposed cannabis ordinance.

“We did put together a team internally of city staff and we also utilized some consultants to help us with the drafting and looking into other jurisdictions and run an analysis for us,” Garcia replied.

But he further added:

Also, to go back to the beginning, I think a lot of this came about because of a local task force that was put together by the Chamber that worked with hoteliers and others and businesses in Anaheim that were afraid that cannabis was going to be thrust upon us by the industry and therefore I think they took the time to think about if we were to do it in an Anaheim way, how would we do it, and then they shared that information I guess with some council members, and with us, and then council then directed us to continue looking at that and figuring out the best way to do it, Anaheim way….

The video of the May 11th townhall forum, which lasted about an hour and fifteen minutes, is available on Councilman Moreno’s Facebook page and can be viewed here or in the link below:

Mayor Voluntarily Recuses Himself From City Council Pot Decision Citing ‘Appearance of Conflict’

Harry Sidhu

Mayor Harry Sidhu listens to public comments at a meeting of the Anaheim City Council sometime in December 2019.

By DUANE ROBERTS
Editor & Publisher

Mayor Harry Sidhu voluntarily recused himself from participating in last night’s city council meeting discussion on whether or not cannabis businesses should be legalized to operate within the City of Anaheim.

In a brief statement, Sidhu said:

Next item on the agenda is item #23 is an ordinance of the city council for the municipal code for cannabis distribution. This particular item I had great discussion with my city attorney. I took the claims of conflict of interest very seriously and worked with our city attorney on this issue. While he advised that there is no conflict of interest under the FPPC regulation, I feel it is important to not create even an appearance of conflict, thus in an abundance of caution, [I’m] recusing myself from this item ….

Days before the meeting, The Anaheim Investigator published a series of articles about Rohan Sidhu, the mayor’s 23-year old son, pointing out he runs a firm that offers “design and operational consulting for the legal cannabis industry.”

Furthermore, The Investigator acquired a copy of Rohan’s latest voter registration form from the Orange County Registrar of Voters, where he listed his father’s four-acre estate in Anaheim Hills as being his primary residence.

Despite a robust debate at last night’s city council meeting about legalizing cannabis businesses, no action was taken. The matter was continued until June 9th where, presumably, Mayor Sidhu will voluntarily recuse himself again.

Mayor Might Have to Recuse Himself From Pot Decision Because Son is Registered to Vote at Father’s Estate


Rohan & Harry II

Rohan Sidhu (far left) watches his father, Harry Sidhu, being sworn in as mayor of Anaheim on Tuesday December 4, 2018.

By DUANE ROBERTS
Editor & Publisher

Rohan Sidhu, the 23-year old son of Mayor Harry Sidhu, lists his father’s four-acre estate in Anaheim Hills as being his primary residence, according to a copy of his most recent voter registration form The Anaheim Investigator obtained from the Orange County Registrar of Voters last week. The form in question, an affidavit filed on May 8, 2015 and signed under penalty of perjury by Rohan himself, states that “145 S. Vista Grande” is his “home address.” Documents in the possession of the Orange County Clerk-Recorder show this property is owned by Mayor Sidhu.

The fact Rohan still maintains his father’s home as his primary residence raises concerns about whether or not Mayor Sidhu can legally participate in any upcoming discussions or votes on the legalization of cannabis businesses within the city. As The Investigator previously reported, Rohan is a “pot entrepreneur.” Not only does he run a firm called RSSC LLC that offers “design and operational consulting for the legal cannabis industry,” but he boasts that he helped set up “OC’s largest Type 6 cannabis oil Extraction and Distillation facility” in the City of Costa Mesa in 2018.

Voter Registration Form -- Rohan Sidhu II

The Mayor Might Have to Recuse Himself From Pot Decision

The California Political Reform Act of 1974–the main state law which deals with issues pertaining to “conflict of interest”–makes it perfectly clear: Public officials are prohibited from making, participate in making, or using their official position to influence any government decision in which they have a financial interest. A public official has an interest in a decision if it is “reasonably foreseeable” the decision will have a “material financial effect” on one or more of their interests.

According to Regulation 18703.5, one such interest a public official has is in their “personal finances” and those of their immediate family. A government decision will have an effect on this interest if the decision will result in personal expenses, income, assets, or liabilities of the official or their immediate family increasing or decreasing. The law, however, defines “immediate family” as being the spouse and any dependent children–meaning children who are below 18-years of age.

But the issue here is not that Rohan is Mayor Sidhu’s son, but how any government decision the latter makes might affect his “personal finances.” The fact Rohan lists his father’s home as his primary residence suggests he lives there. Because he is a cannabis business consultant, he could profit from any decision his father makes to legalize them. As a result, Mayor Sidhu’s “personal finances” could be affected in that his son might be in a better position to help him defray the costs of living on his estate.

The Investigator Reaches Out to Lyster, Sidhu, and Mezzacappa

The Investigator contacted Mike Lyster, Chief Communications Officer for the City of Anaheim, and asked him about how City Attorney Robert Fabela might feel about this matter and if Mayor Sidhu would be required to recuse himself from any discussions or votes on the legalization of cannabis businesses. “Should this item come before the Council, we would expect Anaheim’s city attorney to offer any guidance as relevant and appropriate,” he replied.

The Investigator also sent emails to Mayor Sidhu and Annie Mezzaccapa, his Chief of Staff, asking them for confirmation that Rohan lives with the mayor on his four-acre estate; if he intends to release an “official statement” about his “son’s ties to cannabis businesses in the interest of full public disclosure,” and; if he will be “recusing himself” from “city council discussions or votes that address the issue of legalizing cannabis businesses.” So far, none of them have responded.

Anaheim City Council Push to Legalize Cannabis Businesses Could Make Mayor’s Son a Wealthy Man

Rohan Sidhu (left) stands next to his father, Harry Sidhu, the night he was sworn in as mayor of Anaheim in December 2018.

By DUANE ROBERTS
Editor & Publisher

It almost didn’t happen, but at the end of the April 21st meeting of the Anaheim City Council, just as Mayor Harry Sidhu was making his final closing remarks, Councilwoman Lucille Kring abruptly interrupted him.

“Mis… Mister Mayor, first of all, I forgot to do an agenda item,” Kring interjected.

“O.K., Councilmember Kring. Go ahead,” Sidhu replied, sounding a bit exasperated.

“Really, really, really, really fast,” said Kring.

Then she continued:

Colleagues and members of the public as you may recall a few months ago I asked the staff to work with me to prepare an ordinance for our consideration to legalize cannabis businesses in Anaheim consistent with state law and in the alternative to bring to us a resolution to place the question of cannabis businesses before the voters in November. The work on that project has been slowed down somewhat because of the Coronavirus, but we are back up and running. If I would ask staff to finish up that work on the ordinance and bring it back to us at the next council meeting May the 5th, the ordinance can be reviewed and discussed by the council, and we may choose to adopt it. We may also decide that it is better to let the voters weigh in on this issue. So if the ordinance is not adopted on May 5th, then I’d like it to be ready to bring back on May 12th to put it on the November ballot. Either way, we’ll also need to place a ballot of a local cannabis tax measure so we can do that at a later date….

“I’m asking for a second and a third on my cannabis ordinance, ” Kring stated.

Councilman Jordan Brandman seconded her motion.

“I will do the third, not a problem Councilwoman. I will do the third. So it is agendized,” replied Sidhu.

Up until this moment, nobody has really known exactly what Mayor Sidhu’s opinions have been on the issue of cannabis. But for quite some time now, The Anaheim Investigator has been well aware of what Rohan Sidhu, his 23-year old son, thinks about it. In fact, if the City of Anaheim decides to legalize cannabis businesses, he is well-positioned to get rich from it.

The Mayor’s Son is a ‘Pot Entrepreneur’

Evidence The Investigator has uncovered shows that Mayor Sidhu’s son is a “pot entrepreneur.” Not only does Rohan run a firm that offers “design and operational consulting for the legal cannabis industry,” helping secure licenses for cannabis businesses across the state, but he boasts that he helped set up “OC’s largest Type 6 cannabis oil Extraction and Distillation facility” in 2018.

According to a document Rohan filed with the California Secretary of State on August 6, 2018, he states he is “Chief Executive Officer” of an entity called RSSC LLC, a limited liability company. He describes the type of “business or services” being offered as “Engineering Consulting.” The listed address, however, appears to be a private mail box located at a U.S. Post Office in downtown Los Angeles.

But the information posted on Rohan’s LinkedIn page is more revealing. He states that RSSC LLC was founded in January 2018–not August 2018–as was suggested in the document he filed with the Secretary of State. But to his credit, he goes into detail about what kind of “work” his firm really does: it helps cannabis businesses get their licenses and permits to operate legally.

Below is a reproduction of what Rohan typed:

Founder
RSSC LLC * Full-time
Jan 2018 – Present * 2 yrs 4 mos
Orange County, California Area

Design and Operational consulting for the legal Cannabis industry.
With our team of engineers, architects, attorneys, policy consultants, and designers we can make your cannabis industry dreams come true.

Our team is responsible for securing over 25 MCSB/BCC state issued cannabis licenses, across the state of California.

We can help guide you through State and City licensing processes and procedures for the Cannabis Industry.

We have over 15 client facilities currently operating compliantly, through the state.

We have expertise in Type 6, Type 7, Type N Cultivation Facilities, Distribution/Transportation, Retail, and Testing Lab design/management/compliance.

Consider us your allies through the states venture into legalization, and legislation. We can help interpret CA’s new laws, so you can operate your facilities without worry.

But that’s not all.

Between January and May 2018, Rohan also mentions he was “Co-Founder” of yet another entity called SW Ventures LLC.

Here is what he wrote:

Co-Founder – CTO
SW Ventures LLC * Full-time
Jan 2018 – May 2018 * 5 mos

Costa Mesa

Conception and design of OC’s largest Type 6 cannabis oil Extraction and Distillation facility. Developed a successful CUP application, with supplementary documents, for Costa Mesa City, approved by Planning Commission and City Council with 0 comments/concerns.

Indeed, documents from the Costa Mesa Planning Commission, including one report dated October 15, 2018, make it clear that SW Ventures LLC was seeking

a Conditional Use Permit for a marijuana manufacturing and distribution facility (SW Ventures, LLC) within a 7,178-square-foot tenant space of an existing industrial building. The proposed facility will include ethanol cannabis extraction, distillation, packaging and formulation and distribution of the final product in vaping pens, tablets/capsules, and edibles. Rooms include extraction and distillation, storage and packaging, and ancillary offices. Vehicles used for the distribution of cannabis products will be pulled into a secured area inside the building. The facility will have security systems (card readers, security cameras, etc.) throughout the facility. No cultivation of marijuana, or marijuana dispensary, is permitted.

With respect to Rohan’s ties to this firm, The Investigator couldn’t find his name on any incorporation documents that were submitted to the Secretary of State. However, a Form 460 that was filed with the City of Costa Mesa shows he gave a $249 to the “Figueredo-Wilson for City Council 2018” candidates committee on September 15, 2018. He listed SW Ventures LLC as being his “employer.”

Mayor’s Son Could Become a Wealthy Man

If the city decides to legalize cannabis businesses, Rohan could become a wealthy man. For one thing, “pot entrepreneurs” would flock here to set up operations. They would need a consultant like RSSC LLC to help them navigate the complex legal environment. MedicalJane.com reports firms like his “have been known to charge over $100,000” for their services, even take ownership stakes in cannabis businesses.

Given Anaheim’s historically low electricity rates, easy access to freeways, and large market of consumers–which also includes millions of tourists–it is not inconceivable it could become the “weed capital” of Orange County. Regardless, Mayor Sidhu’s son is well-positioned to get rich from it. And any vote his father makes in favor of legalization of cannabis businesses is a vote to make that possible.

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