REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Sean Joyce, Interim City Manager
VIA: Travis K. Hopkins, Assistant City Manager
PREPARED BY: Grace Yoon-Taylor, Senior Administrative Analyst
Subject:
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Request for City Council direction on regulatory framework and ordinances on commercial cannabis activities
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Statement of Issue:
Since passage of the Compassionate Use Act of 1996, the Medical Marijuana Program Act, and Medicinal and Adult-Use Cannabis Regulation and Safety Act, many California cities have allowed cannabis-related businesses to operate within their jurisdictions. Consequently, the State and these municipalities have developed regulations and licensing structures to regulate various types of cannabis business activities within their jurisdictions. In contrast, Huntington Beach prohibits all forms of commercial cannabis activities. However, the City Council (or voters by ballot initiative) has the discretion to permit and regulate such businesses.
In November and December 2021, two private parties filed separate cannabis petitions to legalize cannabis sales and commercial activities in Huntington Beach without gathering City Council or staff input. Upon receiving the petitions, the City Council established a three-member ad-hoc subcommittee consisting of Councilmembers Bolton, Kalmick, and Peterson in order to develop a cannabis program that would be tailored to the needs and interests of the Huntington Beach community. The subcommittee worked with staff, cannabis industry representatives, and local stakeholders to learn about best management practices in similar cities. Subsequently, the subcommittee presented their preliminary framework during a February 15, 2022 Study Session.
On March 1, 2022, the City Council voted to place a measure on the 2022 Primary Election ballot asking city voters whether to adopt a cannabis business tax, which is a special tax levied up...
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