BACKGROUND:
Chapter 2.32 of the Cathedral City Municipal Code establishes the Cannabis Task Force. In accordance with the code, the task force consists of the City Manager, three resident members and three members who are owners or managers of cannabis businesses. The task force is appointed by the City Manager. Meetings are conducted in accordance with the Brown Act – Open Meeting Law and are open to the public. The task force normally meets two times per year.
The purpose of the task force is to provide advice to the City Council on issues related to the operation of cannabis businesses in Cathedral City. The task force most recently met on Monday April 3, 2023.
DISCUSSION:
The task force agenda for April 3 included three items:
1.Update on Council Actions – Staff provided an update on the council discussions since the last task force meeting in October 2022 and on the resolution ultimately adopted which modified the tax rates on cannabis businesses. The effective dates of the new tax rates were reviewed along with the requirement for businesses to take advantage of the reduced tax rates they must be current on taxes due to the City. There were no recommendations resulting from this discussion.
2.Expiration of Inactive Retail Licenses – Staff reported that during the discussions on cannabis taxes in January and February of this year, City Council expressed some interest in measures that would have the effect of reducing the number of retail licenses over time by limiting the renewal of inactive licenses. It was further reported the municipal code currently includes a provision that licenses that have been inactive for a period of at least one year may not be renewed (discretionary) and the City Attorney’s concern that non-discretionary language would be advisable if the desire is stop renewing inactive licenses.
After discussion, it was the consensus of the task force that licenses inactive for over a year should not be renewed and that non-discretionary language should be adopted. They also indicated that prior to implementing the non-renewal practice existing inactive license holders should be surveyed regarding their intent and there should be a well-advertised start date in the future so existing inactive license holders aren’t caught off-guard by the change.
3.Fire Code Regulations and Carbon Dioxide Storage – Chief Contreras attended the meeting and updated the task force on an issue the fire department is having with some businesses, primarily cultivators, violating the fire code regarding their storage of carbon dioxide. After an in-depth discussion, it was the consensus of the task force that the code provisions should be uniformly enforced even to the point of making non-compliant businesses cease operations until the violations are corrected. In order to comply, owners of compliant businesses noted they had to make costly upgrades and it is not fair to allow others to ignore the code requirements. All agreed there is a safety issue involved and the code must be uniformly applied.
A public comment period was provided but no comments were received, and the meeting was adjourned.
FISCAL IMPACT:
None