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agenda-report ADOPT A RESOLUTION ACCEPTING THE CHP CANNABIS TAX FUND GRANT – Adopt a Resolution Accepting the 2025/26 California Highway Patrol, Cannabis Tax Fund Grant and Approving Spending Plan for the Program; Appropriation Action

Fremont City Council
July 15, 2025

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agenda-report ADOPT A RESOLUTION ACCEPTING THE CHP CANNABIS TAX FUND GRANT – Adopt a Resolution Accepting the 2025/26 California Highway Patrol, Cannabis Tax Fund Grant and Approving Spending Plan for the Program; Appropriation Action
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July 15, 2025
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Fremont City Council
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Fremont City Council Meeting: 07/15/25 07:00 PM
3300 Capitol Avenue Div/Dept: Police Department
Fremont, CA 94538 Category: Grants

SCHEDULED
Sponsors:

COUNCIL STAFF REPORT (ID # 5498) DOC ID: 5498
Updated: 7/11/2025 10:34 AM by Dina Lewis Page 1
ADOPT A RESOLUTION ACCEPTING THE CHP CANNABIS TAX FUND GRANT – Adopt a Resolution Accepting the 2025/26 California Highway Patrol, Cannabis Tax Fund Grant and Approving Spending Plan for the Program; Appropriation Action
Contact Persons:

Name: Eric Tang Diane Brasil
Title: Police Captain Police Business Manager
Div/Dept: Police Department Police Department
Phone: (510) 790-6900 510-790-6816
E-Mail: [email protected] [email protected]

Executive Summary: The Fremont Police Department (FPD) applied for grant funding through the California Highway Patrol’s (CHP) Cannabis Tax Fund Grant Program to combat impaired driving. CHP awarded FPD $172,999.97 for personnel costs for Education/Outreach and six Digital Message Sign Boards.

To make use of the CHP Cannabis Tax Fund grant, the City Council must adopt a resolution accepting the grant and approving the spending plan use of the funds.

BACKGROUND: With the passage of Proposition 64 in 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA), California voters mandated the State set aside funding for the California Highway Patrol (CHP) to award grants to local governments and qualified nonprofit organizations, as described in Revenue and Taxation Code Section 34019(f)(3)(B).

The Cannabis Tax Fund Grant Program marks an important step toward reducing impaired driving crashes, increasing public awareness surrounding the dangers of impaired driving, and making California’s roadways a safer place to travel.

The funds must be used to combat impaired driving and must supplement and not supplant existing funding.

DISCUSSION/ANALYSIS: On February 23, 2025, FPD applied for a grant through the CHP Cannabis Tax Fund Grant Program and was awarded $172,999.97 for Fiscal Year 2025/26.

The funds will be utilized as follows:

Description Cost

Education / Outreach
o Personnel costs to teach the impaired driving portion of a Youth Driver Safety Class.

$30,400.31
Police Equipment
o 6 Solar Powered Digital Message Sign Boards

$142,599.66

Council Staff Report (ID # 5498) Meeting of July 15, 2025 Updated: 7/11/2025 10:34 AM by Dina Lewis Page 2
Total Costs $172,999.97

FISCAL IMPACT: The FY 2025/26 funds must be spent or encumbered by June 30, 2026.

There are no matching requirements for this grant and no direct impact on City resources for the fiscal years associated with the action in this staff report. Purchases will be made in accordance with the City’s adopted policies. Staff is requesting an appropriation of $172,999.97 in the Miscellaneous Operating Grants Fund (Fund 190) in FY 2025/26.

ENVIRONMENTAL REVIEW: The recommended action is exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(2) and/ or 15378(b)(5) and as it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment per CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA compliance.

ATTACHMENTS:
• Draft Resolution- CTFGP FY2025-26

RECOMMENDATION: Adopt a resolution authorizing the City Manager, or designee, to accept the California Highway Patrol Cannabis Tax Fund Grant in the amount of $172,999.97, recognize the revenue in the Miscellaneous Operating Grants Fund, appropriate the funds to the Police Department, and execute the Grant Agreement and take any and all necessary implementing actions required by CTFGP.

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