February 3, 2026
City Manager’s Office
Finance Department
DATE: February 3, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Shasa Curl, Richmond City Manager
Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
Subject:
Authorize the City Manager to Develop
Recommendations Pertaining to the Cannabis Sector for
City Council Discussion in approximately 60 days.
FINANCIAL IMPACT: There is no anticipated fiscal impact related to this action.
Staff may need to engage consultants to assist with this analysis. City staff will return with fiscal analysis,
including consultant costs when recommendations are
presented.
PREVIOUS COUNCIL
ACTION:
December 7, 2021
STATEMENT OF THE
ISSUE:
Licensed cannabis businesses in the City of Richmond
are experiencing financial challenges due to recent state legislation, tax changes, and market conditions. These
pressures threaten the viability of licensed operators and the City’s equity goals. Staff recommends authorizing the City Manager to develop a set of recommendations for
City Council consideration that address these challenges and support a sustainable local cannabis sector.
AGENDA
REPORT
February 3, 2026
RECOMMENDED ACTION:
AUTHORIZE the City Manager to develop
recommendations pertaining to the cannabis sector and
return to the City Council within 60 days for initial
discussion – Finance Department (Shasa Curl/510-620-
6512/Emily Combs 510-620-6740/ Mubeen Qader 510-
412-2077/Antonio Banuelos 510-620-6741).
DISCUSSION:
Licensed cannabis businesses in the City of Richmond are facing financial challenges due to recent changes in state legislation, increased compliance costs, and ongoing market pressures such as price compression and competition from the illegal market.
These factors threaten the stability of licensed operators, reduce local tax revenues, and undermine the City’s Cannabis Equity Program objectives. Authorizing the City Manager to develop recommendations will allow staff to analyze potential strategies, such as new financial relief measures, regulatory adjustments, and equity-focused assistance, and return to the City Council with a comprehensive set of options for consideration. This approach ensures that the City can respond proactively to industry challenges while maintaining its commitment to equity and economic sustainability. Staff will return within 60 days with initial recommendations, fiscal impacts, and any necessary ordinance or resolution language for City Council discussion.
DOCUMENTS ATTACHED:
None