• National City currently restricts cannabis business hours to 9 AM - 9 PM. • State law allows 6 AM - 10 PM, followed by Neighboring Cities • Restrictive hours harm economic growth, tax revenue, and public safety. • Aligning hours creates a level playing field for all Six National City Retailers to compete against outside cannabis retailers.
WHY WE’RE HERE
•National City earns 5% in tax revenue from cannabis sales which goes to the general fund. •Estimated tax revenue projected to generate $1.5-2M annually. •A 25% reduction in business hours results in up to $400-500k in lost tax revenue per year. •These funds could support public services, infrastructure, and fire/law enforcement considering the budget deficit.
THE TAX REVENUE IMPACT OF LIMITED HOURS
PUBLIC SAFETY CONSIDERATIONS
• Restrictive hours push consumers toward neighboring city dispensaries or worse, the illegal market.
• Unregulated sellers DO NOT check IDs, test products, or contribute tax revenue.
• Expanding hours strengthens oversight and ensures safer access. • Law enforcement costs associated with black market will go down by expanding access to highly regulated cannabis dispensaries.
ENSURING A STRONG START FOR LOCAL
BUSINESSES
• Early challenges can shape long-term success, and starting on equal footing with other cities ensures stability. • Surrounding cities have already established best practices, giving National City the chance to implement policies that work rather than waiting.
• Customers establish shopping routines early – if they go elsewhere now, they may not return later. • Businesses need predictability – establishing full operating hours now allows them to make informed hiring, pricing, and marketing decisions.
• A strong start benefits not just cannabis businesses but also surrounding local businesses that benefit from increased customer traffic.
CALL TO ACTION – APPROVE
• National City businesses deserve a fair chance to compete. • Expanding hours aligns with state law and neighboring cities. • Increased tax revenue directly benefits the City.
• Delaying action only deepens economic disadvantages.
• We urge the City Council to approved the hour alignment today.