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City of Huntington Beach
Cannabis Regulatory:
Framework & Draft Ordinances
City Council Meeting
July 5, 2022
SUPPLEMENIAL
COMMUNICATION
Mesting Date:_ 7/5/2022
Background - City of Huntington Beach # 21(22-505)
• Two private parties have filed separate cannabis petitions requesting that the City prepare documents allowing their proposed regulations to be placed before the voters of Huntington Beach for consideration.
• November 3, 2021 - Huntington Beach Cannabis Taxation and Regulation Act • December 2, 2021 - Huntington Beach Cannabis Regulation & Land Use Measure • On December 21, 2021 Study Session, the City Council formed an ad-hoc subcommittee, consisting of Councilmembers Bolton, Kalmick and Peterson, to further assess, research and present a balanced cannabis regulatory framework for the Council's consideration.
• On February 15, 2022 Study Session, the Subcommittee presented the preliminary framework to the City Council.
July 5, 2022 City Council Meeting
Background - Continued
June 7, 2022 Primary Election
• On March 1, 2022, the City Council voted to Election Result - Measure A place a measure on the 2022 Primary
Election ballot, Measure A: Cannabis
• YES • NO
Business Tax Measure:
Retail tax: up to 6%
• Non-retail tax: up to 1% 35.4%
• Special Tax with revenues being
restricted to Police and Homeless & 64.6%
Behavioral Services
100% cost recovery on city expenses
through fees, approved by the City
Council via resolution.
July 5, 2022 City Council Meeting
Background - Continued
• The City Council directed staff and the Subcommittee members to discuss the implications of various unresolved policy and regulatory matters associated with cannabis and report back to the City Council.
• The City has solicited input from residents,
businesses, and community stakeholders on
the proposed regulatory framework through
various channels:
* Individual meetings and site tours of
permitted cannabis facilities in other cities
* Community forum held on June 9, 2022
* By accepting written comments via email
and the City website.
July 5, 2022 City Council Meeting
Cannabis laws adopted by Voters and Council
City staff is recommending that the City:
• Place two ballot measures on the November 2022 General Election asking voters whether the City should allow and regulate retail and non-retail cannabis businesses; and if allowed, impose local excise taxes on such commercial activities as General Tax.
• Develop regulatory and zoning ordinances for City Council adoption and the City's Commercial Cannabis Regulations for Council resolution adoption. * Extend to voters authority as to whether and how commercial cannabis activities are permitted.
* Maintain the City Council's ability to develop policy positions while allowing timely flexibility to respond to the ever-evolving State's laws and market condition without necessitating the delay and expense of conducting a municipal election.
July 5, 2022 City Council Meeting 5
Key Features of Cannabis Regulatory Framework
Cannabis Industry Types
# OF PERMITS PERMITTED PROHIBITED
RETAILERS • Storefront dispensaries • Sales on vehicles/mobile stores, (w/delivery) kiosk, or temporary structures
› Up to 10 permits
• Non-storefront, delivery- • Sale by vending machine
only facilities
NON-RETAILERS • Indoor Cultivation • Outside cultivation > No cap but controlled by • Manufacturing • microbusinesses zoning and buffer
restrictions • Testing Labs • Cannabis events/event
organizers
• Distribution • Drive-in or drive-through (per the
State)
Key Features of Cannabis Regulatory Framework
Retail
Zones & Buffer Restrictions Commercial Locations
• Retailers
• Storefront dispensaries: allowed in the
Commercial Zone and Specific Plan
Areas with buffer restrictions
• Non-storefront/delivery-only retailers
(Type 9): allowed only in the Industrial
Zone with buffers
Exclude Downtown (SP5) and Sunset
sonnercal Once - 1f propeses
Beach Specific Plan (SP17)
600' from Grade K-5 Schools
Exclude Coastal Overlay Zone 1000 Rom Grade 6-12 Schock EOY Fom Cormercal Day Care
to font Youth Centm
July 5, 2022 City Council Meeting
Key Features of Cannabis Regulatory Framework
Zones & Buffer Restrictions
• Retailers - Buffer Distance: Non-Retail
Industrial Locations
> 1,000 ft. from high & middle schools; and
> 600 ft. from K-5 schools (inclusive of all
public, private, and charter schools); and
• 600 ft. from parks, licensed commercial
daycare centers, and youth centers.
• Non-Retailers
• Allowed in the Industrial Zone with buffer
restrictions that are same as retailers.
July 5, 2022 City Council Meeting
Key Features of Cannabis Regulatory Framework
SECURITY MEASURE AND OPERATIONAL REQUIREMENTS
21)
nine
Video City
24/7 Extensive No Customer Comprehensive
personnel
security monitoring background consumption check-in state and local may access
guards on inside & checks for allowed and age permitting surveillance
the outside of owners & onsite or near verification process videos at any
premises building employees premises (21+)
time
July 5, 2022 City Council Meeting 9
Additional Community Feedback
I. Medicinal cannabis businesses and customers
I. Operation Hours
IlI. Buffer measurements
IV. Local residency requirement and/or preference
V. Pre-application requirement to have at least 4 local permits or State licenses, one of which must be retail for retailers for retail applicants Vl. Location/Property Requirement
ATIGTON -
June 21, 2022 City Council Meeting 10
The City's Approach to Cannabis Businesses
Ballot Measures approved by Voters
Ordinances by City Council
Ballot Measures
Regulation by City
1. Permit and regulate a 1. Regulatory Business
limited number of cannabis Resolution
retailers and non-retailers Ordinances
in areas zoned? Commercial Cannabis
Regulation that specifics
2. Land Use Ordinances and governs:
2. Impose a local excise tax - Application and renew
on commercial cannabis procedures
activities as a General Tax
- Operational Standards
- Other necessary
administrative components
Recommended Actions:
A) Direct staff to prepare and return to the City Council to adopt a resolution placing a City-sponsored ballot measure on the November 8, 2022 General Election, asking voters if the City should allow and regulate cannabis retailers and non-retailers for both medical and recreational to operate in areas zoned for cannabis commercial activity within Huntington Beach; and
B) Direct staff to prepare and return to the City Council regulatory and zoning ordinances regarding commercial cannabis activities for City Council adoption and the City's Commercial Cannabis Regulations to be adopted by Council resolution; and
C) Direct staff to prepare and return to the City Council to adopt a resolution placing a City-sponsored cannabis tax measure on the November 8, 2022 General Election ballot as a General Tax.
June 21, 2022 City Council Meeting 12
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INCORPORATED NOTON BEACH
QUESTIONS?
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