13-A
TO: Honorable Mayor and Members of the City Council
FROM: Ryan Smoot, City Manager
SUBJECT: Consideration and possible action to create a two Council Member ad hoc committee to review and evaluate the City’s Cannabis Business Permit (“CBP”) policies and procedures.
DATE: February 10, 2025
EXECUTIVE SUMMARY
This action would establish an ad hoc committee comprised of two Council Members that will review and evaluate the City's Cannabis Business Permit (“CBP”) policies and procedures. The committee will evaluate items such as the cannabis tax rates, application and administrative review fees and processes, and the number and types of authorized cannabis business permits allowed. The committee will convene as necessary to provide recommendations to the full City Council concerning CBP policies and procedures.
RECOMMENDATION TO CITY COUNCIL
1) Create an ad hoc committee consisting of two Council Members to review and evaluate the City’s Cannabis Business Permit (“CBP”) policies and procedures; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
No fiscal impact with respect to this action.
BACKGROUND
In March 2017, voters (with a 74% margin) approved a Cannabis Tax within the City of Bellflower. In December 2017, the City Council approved 10 cannabis permits (though one permit was revoked in January 2018).
On August 12, 2019, the City Council approved commercial cannabis activities for recreational cannabis. As a result, the City Council allowed permittees with an existing medical cannabis business permit (MCBP) to apply for a change in use from a medicinal to recreational cannabis business permit (CBP). Ultimately, all MCBPs were converted to recreational CBPs, and no MCBPs are currently issued. There are a total of seven permittees and nine issued CBPs. Below are the currently approved cannabis vendors in the City of Bellflower:
0F BELLFLQWEQ «*1
« Staft'eport
Staff Report – CBP Policies and Procedures - Ad Hoc Committee February 10, 2025
BACKGROUND – Continued
1. The Medicine Woman Group, LLC (9058 Rose Street)
a. Dispensary
2. NC3 Systems, Inc. dba Deli by Caliva (9535 Artesia Boulevard) a. Dispensary
3. Joint Forces, LLC dba Greenwolf (10040-42 Artesia Place) a. Dispensary
b. Distribution
c. Cultivation
4. Catalyst – Bellflower LLC (9032-38 Artesia Boulevard) a. Dispensary
5. Catalyst – Distro LLC (9032-38 Artesia Boulevard)
a. Distribution
6. Catalyst – Distro A LLC (9032-38 Artesia Boulevard)
a. Distribution
7. Dynasty Alliance Grow, Inc. (8832 Ramona Street)
a. Cultivation
The City Council has not conducted a comprehensive review of the City’s CBP policies and procedures since their initial implementation in 2017. Additionally, the Council adopted Resolution Nos. 20-63 and 21-35, which suspended the annual cannabis business tax rate increase for manufacturing, distribution, and retail dispensary operations. To stay aligned with evolving cannabis laws and remain competitive with neighboring jurisdictions, the City Manager recommends the formation of a two Council member ad hoc committee. The ad hoc committee would assess the current state of the City’s cannabis policies and procedures and identify any necessary adjustments that should be considered by the full City Council. The committee would convene as needed to review the policies and provide recommendations as needed to the City Council for consideration.
ATTACHMENTS
Resolution No. 20-63 ...................................................................................................... 3 Resolution No. 21-35 ...................................................................................................... 6
CITY OF BELLFLOWER
RESOLUTION NO. 20-63
A RESOLUTION TEMPORARILY REDUCING CANNABIS TAX
RATES FOR MANUFACTURING AND DISTRIBUTION
PURSUANT TO BELLFLOWER MUNICIPAL CODE § 3.37.100
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. To ensure that the City's cannabis tax rates are both competitive and reasonable, the City retained Harris & Associates to study the City's overall cannabis business tax rate structure and, if warranted, provide estimated revenue impacts of its recommended tax rate reductions and suspension of annual rate increases;
B. Based on its research and analysis, Harris & Associates recommends that the cannabis business tax rates for manufacturing and distribution be reduced from 7.5% to 2% and 1%, respectively, and suspend annual increases for all other cannabis tax rates to remain competitive with the other cities; C. Harris & Associates also determines that even with the tax rate reductions, similar and somewhat higher tax revenues are anticipated for the City due to much greater volumes of business activities forecasted with the lower tax rates; and
D. The City Council desires to temporarily implement the rate reductions recommended by Harris & Associates.
SECTION 2. Pursuant to Bellflower Municipal Code ("BMC") § 3.37.100, the cannabis business tax rates for manufacturing and distribution are hereby temporarily reduced to 2% and 1%, respectively.
SECTION 3. The City Council may repeal or modify this resolution at any time in accordance with the BMC. Nothing in this Resolution is intended to, nor does it, affect the maximum tax rates set forth within the BMC.
SECTION 4. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution's effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.
CITY OF BELLFLOWER
RESOLUTION NO. 20-63
A RESOLUTION TEMPORARILY REDUCING CANNABIS TAX
RATES FOR MANUFACTURING AND DISTRIBUTION
PURSUANT TO BELLFLOWER MUNICIPAL CODE § 3.37.100
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. To ensure that the City’s cannabis tax rates are both competitive and reasonable, the City retained Harris & Associates to study the City’s overall cannabis business tax rate structure and, if warranted, provide estimated revenue impacts of its recommended tax rate reductions and suspension of annual rate increases;
Based on its research and analysis, Harris & Associates recommends that the cannabis business tax rates for manufacturing and distribution be reduced from 7.5% to 2% and 1%, respectively, and suspend annual increases for all other cannabis tax rates to remain competitive with the other cities; Harris & Associates also determines that even with the tax rate reductions, similar and somewhat higher tax revenues are anticipated for the City due to much greater volumes of business activities forecasted with the lower tax rates; and
.The City Council desires to temporarily implement the rate reductions recommended by Harris & Associates.
SECTION 2. Pursuant to Bellflower Municipal Code (“BMC”) § 3.37.100, the cannabis business tax rates for manufacturing and distribution are hereby temporarily reduced to 2% and 1%, respectively.
SECTION 3. The City Council may repeal or modify this resolution at any time in accordance with the BMC. Nothing in this Resolution is intended to, nor does it, affect the maximum tax rates set forth within the BMC.
SECTION 4. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.
City of Bellflower
Resolution No. 20-63
SECTION 5. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable
EC ION 6. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5 Such electronic signatures will be treated in all respects as having the same effect as an original signature.
S EC`,1ON 7. The Mayor, or presiding officer, is authorized to affix a signature to this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, is directed to attest thereto.
S ECTION 8. This Resolution will become effective immediately upon adoption.
P ASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 28TH DAY OF SEPTMBER 2020.
Dan Koops, Mayor Pro Tem
ATTEST:
May -a O• iq i. Jerk
APPROV M:
K . , H. Berger, ty Attorney
City of Bellflower
Resolution No. 20-63 .
SECTION 5. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.
SECTION 6. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 7. The Mayor, or presiding officer, is authorized to affix a signature to this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, is directed to attest thereto.
SECTION 8. This Resolution will become effective immediately upon adoption.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 28TH DAY OF SEPTMBER 2020.
I, J x I .
Dan Koops, Mayor Pro Tem
ATTEST:
A JIM '4/v/1u A.
May 0 iq/', l . I rk,
APPROV fl gA; /..// Kz" H. Berger, ' ty Attorney
S`IATF= OF CALIF a RN
CCo-
1)
NTY Q F L•S AN
C[T Y OF Ball FLowr
0 01' 1ES )SS
03 1, Mayra Ochiqui, City Clerk of the City of Bellflower, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 20-63 was duly passed, approved, and adopted by the City Council of the City of Bellflower at its Regular Meeting of September 28, 2020, by the following vote to wit:
AYES: Council Members - Koops, Dunton, Hamada, and
Santa Ines
RECUSE: Council Member - Mayor Garza
Dated: September 29, 2020
c qui, City Clerk
City Sf B - !Mower, California
SEAL)
STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )33 CITY OF BELLFLOWER ) I, Mayra Ochiqui, City Clerk of the City of Bellflower, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 20-63 was duly passed, approved, and adopted by the City Council of the City of Bellflower at its Regular Meeting of September 28, 2020, by the following vote to wit:
AYES: Council Members- Koops, Dunton, Hamada, and
Santa Ines
RECUSE: Council Member— Mayor Garza
Dated: September 29, 2020
[/1 . [II/.144“
." .. crdqu City Clerk
City -f B Iflower, California
(SEAL)
CITY OF BELLFLOWER
RESOLUTION NO. 21-35
A RESOLUTION TEMPORARILY SUSPENDING A PORTION OF
THE SCHEDULED CANNABIS TAX RATE INCREASE
EFFECTIVE JULY 1, 2021, FOR THE DISPENSARY AND RETAIL
USE PURSUANT TO BELLFLOWER MUNICIPAL CODE
3.37.100
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. To ensure that the City's cannabis tax rates are both competitive and reasonable, the City Council review the City's cannabis tax rate, tax revenue, and other cities' cannabis tax rates for the dispensary and retail use; and B. Based on its review, the City Council desires to temporarily suspend a portion of tl e scheduled cannabis tax rate increase effective July 1, 2021, for the dispensary and retail use.
SECTION 2. Pursuant to Bellflower Municipal Code ("BMC") § 3.37.100, the C ty Council hereby temporarily suspends a portion of the scheduled cannabis tax rate increa5e efifective July 1, 2021, for the dispensary and retail use by increasing the appiicable tax rate to 8.5% instead of the then scheduled and effective tax rate Qf 10%.
SECTION 3. The City Council may repeal or modify this resolution at any time in accordance with the BMC. Nothing in this Resolution is int:nded to, nor does it, affect the maximum tax rates set forth within the BMC.
SECTIOfV 4. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution's effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.
SECTION 5. If any part of this Resolution or its application is deemed invalid by a court f competent jurisdiction, the City Council intends that such invalidity will not affect the effiectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.
SECTION 6. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance vith Government Code §16.5. Such electronic signatur s vill be treated in all respects as having the same effect as an original signature.
CITY OF BELLFLOWER
RESOLUTION NO. 21-35
A RESOLUTION TEMPORARILY SUSPENDING A PORTION OF THE SCHEDULED CANNABIS TAx RATE INCREASE EFFECTIVE JULY 1, 2021, FOR THE DISPENSARY AND RETAIL USE PURSUANT TO BELLFLOWER MUNICIPAL CODE § 3.37.100 THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. TO ensure that the City’s cannabis tax rates are both competitive and reasonable, the City Council review the City’s cannabis tax rate, tax revenue, and other cities’ cannabis tax rates for the dispensary and retail use; and B. Based on its review, the City Council desires to temporarily suspend a portion of the scheduled cannabis tax rate increase effective July 1, 2021, for the dispensary and retail use.
SECTION 2. Pursuant to Bellflower Municipal Code (“BMC”) § 3.37.100, the City Council hereby temporarily suspends a portion of the scheduled cannabis tax rate increase effective July 1, 2021, for the dispensary and retail use by increasing the applicable tax rate to 8.5% instead Of the then scheduled and effective tax rate of 10%.
SECTION 3. The City Council may repeal or modify this resolution at any time in accordance with the BMC. Nothing in this Resolution is intended to, nor does it, affect the maximum tax rates set forth within the BMC.
SECTION 4. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended paIt will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.
SECTION 5. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.
SECTION 6. Electronic Signatures. This Resolution may be executed with electronic Signatures in accordance with Government Code §16.5. Such electronic Signatures will be treated in all respects as having the same effect as an original signature.
City of Bellflower
Resolution No. 21-35
SECTION 7. The Mayor, or presiding officer, is authorized to affix a signature ta this Ftesolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, is directed to attest thereto.
SECTION 8. This Resolution will become effective immediately upon adoption.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 14T" DAY OF JUNE 2021.
Dan Koops, Mayor
ATTEST:
ay O ic ui,Cfity Cle
APPROV D A TO F RM:
K rl H. Berger, C ty Attorney
v
City of Bellflower
Resolution No. 21-35
. _ SECTION 7. The Mayor, or presiding officer, is authorized to affix a signature to this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, is directed to attest thereto. 7 SECTION 8. This Resolution will become effective immediately upon adoption. i. V PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF B'ELLFLOWER ON THIS 14""l DAY OF JUNE 2021.
1% W Dan’Koops, Mayor
ATTEST:
APPRovéyfiojRM
’/ ’1’? é/fl
Ké’rI/ H. Berger, C ty Attorney
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES )SS
CITY OF BELLFLOWER
I, Mayra Ochiqui, City Clerk of the City of Beilflower, California, do hereby ertify under penalty of perjury that the foregoing Resolution No. 21-35 was duly passed, approved, and adopted by the City Council of the City of Bellflower at its Regular Meeting of June 14, 2021, by the following vote to wit:
AY S: Council Members — Hamada, Sanchez, Santa Ines, Dunton, and Mayor Koops
Dated: June 15, 2021
May Oc iqui, City Clerk
City of Be Iflower, California
SEAL)
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )SS
CITY OF BELLFLOWER )
I, Mayra Ochiqui, City Clerk of the City of Bellflower, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 21-35 was duly passed, approved, and adopted by the City Council of the City of Bellflower at its Regular Meeting of June 14, 2021, by the following vote to wit:
AYES: Council Members - Hamada, Sanchez, Santa Ines, Dunton, and Mayor Koops
Dated: June 15, 2021
City of Be lflower, California
(SEAL)