LAKEPILLSBURY >> More than six months after receiving their Lake County cannabis cultivator’s permit, a recently compliant grower has taken issue with the county for allegedly not following its own regulations.
Sky Laiwa, Justin Quayle and John Evans, doing business as Pillsbury Lake Family Farms, Inc. found themselves forced to destroy a batch of their crop because they did not have a California State license. It was Pillsbury, Inc.’s first annual inspection in fall 2023. “They came and inspected and left,” said Laiwa. “But Lake County Code Enforcement Officer (Linda Rosas-Bill), said we had to cut our crop, or Lake County would revoke our license for not having a California state license, but we were in the process of getting a state license,” Laiwa said.
“We had to put our harvested crop in a trailer,” Laiwa said. “And then we had to have the code enforcement officer escort us to the Quakenbush Dump and destroy 1.2 tons of wet cannabis at the dump.”
Meanwhile, in response to a press inquiry from the Record-Bee, Lake County Treasurer-Tax Collector Patrick Sullivan sent an email to the paper updating the press on his office’s efforts to settle matters of compliance.
Sullivan explained. “I am writing to follow up on the previous request for a refund that you made with the Treasurer- Tax Collector’s Office and the informal meeting scheduled on December 1, 2023,” he told Sky Laiwa. On January 27, 2023, Laiwa came to the Treasurer-Tax Collector’s office and requested a revised cannabis tax bill, Sullivan added. “Ms. Laiwa left the counter after receiving the bill. On January 30, 2023, the $2,100 cannabis tax installment was paid in cash by Ms. Laiwa, at her insistence, despite not having made an appointment as requested. Prior to this $2,100 cash payment, Justin Quayle (Pillsbury Family Farms) was advised that Pillsbury Farms may be eligible for assistance with cannabis tax payments through the Cannabis Equity Grant, and it was recommended he contact the County Administrator’s Office for additional information.”
Sullivan recalled, “Before our scheduled December 1, 2023 meeting, both the Treasurer- Tax Collector and Administrative offices became aware that Pillsbury Family Farms had apparently unlawfully cultivated without a State license,” he remarked. “This contradicts the Pillsbury Family Farms’ declaration on the Cannabis Equity Application, to certify compliance with all laws and regulations.”
Pillsbury, Inc. had a state license by 24 July 2023. They then planted a crop in fall of 2023, a crop of just 40 pounds, noted Laiwa. Code officer Linda Rosas-Bill informed Laiwa and Quayle, in September 2023, she, Rosas –Bill did not agree with the documents the county had placed in their file regarding their cannabis operation procedures, which was in reference to Rosas-Bill’s code enforcement manager. “He did not approve of our operation,” said Laiwa. “Early in Jan. 2024 he wrote John (Evans, farm proprietor), was out of compliance with everything,” Laiwa said.
Another issue was whether Pillsbury, Inc. actually got a state Equity Grant in June 2022, as Laiwa asserted. “Nobody reached out from Lake County, if we were accepted or not,” Laiwa said. “And in Jan. 2023, we got a tax bill from Lake County for $64,000, and then went to the Administration Building in person and got the bill reduced to $4,200 in order to reflect the actual amount of cannabis we grew,” Laiwa said, On Jan. 31, 2023 Pillsbury, Inc. paid $1,200 out-of-pocket towards the tax bill. Then, the Equity Grant Manager, Kim Darnell, after negotiation between her and Pillsbury, Inc., asked if the Equity Grant had actually been disbursed to Pillsbury, Inc., Darnell informed them they did not have a Grant, but only an application for one. Darnell soon informed Pillsbury, Inc. did not have to pay an additional $1,200 fee, without explaining why.
Matters stalled there for another two months, Laiwa said, until April 2023, when Darnell was no longer employed as the Equity Grant Manager, maintained Laiwa. Also, she added, she discovered a cannabis tax code regarding refunds, which, according to Laiwa, said that if the county erroneously accepted a double payment for the cannabis tax, the county had to refund Pillsbury, Inc. “And we went like that from March 23 to Sept. 23, 2023,” Laiwa said.
Late in Nov./Dec. 2023, Laiwa said she spoke to her board Rep. District 3 Supervisor Eddie Crandell, and suggested a meeting between her, Quayle, Moreno, and Treasurer Sullivan to confirm their grant. But the parties could not agree on the protocol of the meeting and Pillsbury, Inc. abandoned the meeting after five minutes recalled Laiwa.
It was then on Jan. 4, 2024, she filed a complaint with the county about, the Equity Grant for Pillsbury, Inc. that she and Quayle believed they were awarded. This was to include sufficient funding to cover any taxes due in 2022 and 2023, as well as seed money to cover operations for the begging of 2024, she confirmed.
Laiwa, also asserted that the Equity Grant targeted specific groups similar to Pillsbury, Inc. because they were progressing from transitional workers, veterans, special status groups, etc. and so, qualified for assistance to purchase farm equipment.
On March 4, 2024 Treasurer-Tax collector Sullivan corresponded with Laiwa again in regard to her prior request for a refund with his office. “I am writing to follow up on the previous refund request you submitted to the Treasurer – Tax Collector’s Office. At this time, because UP 20-50 is presently active, you remain eligible for the Cannabis Equity program per the County Administrative Office, but if there are further violations or changes to your permit status this eligibility is subject to change. The Treasurer – Tax Collector’s office can process the refund of $2,100 based on the commitment by the Administrative Office to pay that installment with grant funds.”
He also explained the County’s Equity Program will cease to operate as of October. “I would encourage you to reach out to the Administrative office regarding remaining eligible expenses,” Sullivan closed his letter.
