1 2/4/2022
RiversideCA.gov1
RiversideCA.gov
Economic Development, Placemaking and Branding/Marketing CommitteeFebruary 17, 2022CANNABIS UPDATECITY ATTORNEY'S OFFICECITY CLERK’S OFFICECOMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENTFINANCE DEPARTMENTFIRE DEPARTMENTPOLICE DEPARTMENT RiversideCA.gov2
2017A. Moratorium on commercial marijuana activity(excluding testing laboratory facilities)B. Adopted Ordinance No. 7398 to amend Title 5of the Riverside Municipal Code (RMC) topermit and regulate Cannabis TestingLaboratories in industrial zonesBACKGROUND
2 2/4/2022
RiversideCA.gov3
2018A. Continued discussion of a regulatoryframework for cannabis businessesB. Staff directed to prepare an ordinanceprohibiting cannabis businesses (except fortesting laboratories) and amended RMCC. City Council voted to approve theamendments to RMC codifying a prohibitionof commercial cannabis uses within City limitsBACKGROUND RiversideCA.gov4
September 2021A. Notice of Intent to Circulate Petition for theRiverside Cannabis Taxation and Regulation Actsubmitted to CityB. Two Options for City Council Consideration onthe Petitioni. Call an election to place the initiative petition onthe ballot; orii. Adopt the proposed initiative petition withoutrevisionsBACKGROUND 3 2/4/2022
RiversideCA.gov5
November 2021A. Economic Development, Placemaking andBranding/Marketing Committee directed staff toresearch for legal cannabis business and tax ballotconsiderationB. Presentation to the Chambers of CommerceC. City Team assembled - City Manager’s Office, CityAttorney’s Office, City Clerk’s Office, Community &Economic Development Department, Fire Department,and Police DepartmentD. Team conducted additional research to determine wayforwardi. Legalizing cannabis retail, microbusiness, and distributionuses in the City of Riverside; andii. Initiate a ballot measure to determine if a sales tax shouldbe collected and what that sales tax should be for theCity.BACKGROUND RiversideCA.gov6
A. Permitted Uses: Microbusinesses, Distribution,Testing Laboratories (currently allowed), Delivery-Only Cannabis Dispensaries, and StorefrontCannabis Dispensaries.B. Prohibited Uses: Cultivation (except whenassociated with a microbusiness), Nurseries andProduction.C.Licensing requirementsTITLE 5 - BUSINESS TAXES, LICENSES AND REGULATIONS CHANGES
4 2/4/2022
RiversideCA.gov7
D. Role of City Manager: Review applications(merit based) including Business, Safety andSecurity, Neighborhood Engagement (andLabor/Employment Plans (potential LaborPeace Agreement)E. Business Tax PaymentF. On-site RequirementsG.Reporting Requirements: Criminal activity andmaintaining recordsTITLE 5 - BUSINESS TAXES, LICENSES AND REGULATIONS CHANGES RiversideCA.gov8
H. Cannabis Business Permit Application Requirements•Application form, background checks, list of InterestedParties, description of the business, floor plans,compliance with Title 19, owner consent, security andlighting plans, odor control plan, business plan, statelicenses, tax compliance, insurance, annual budgets,applicant certification and indemnificationI. Fees, Application Process (including Renewals) andRevocation•Title 19 conditions, additional City Manager-imposedconditions, grounds and notice for denial, grounds andnoticing for suspending/modifying/revoking cannabisbusiness permits, and renewal timingTITLE 5 - BUSINESS TAXES, LICENSES AND REGULATIONS CHANGES 5 2/4/2022
RiversideCA.gov9
J. Community Benefit Agreement – businessrequired to pay fee until agreed sunset dateif/when ballot measure passesK. Appeals: Process, fees, hearing procedures, andform/contents of decisions.TITLE 5 - BUSINESS TAXES, LICENSES AND REGULATIONS CHANGES RiversideCA.gov10
L. Specific Use Requirements (Microbusiness,Distribution, Testing Laboratories, Delivery-OnlyDispensaries, and Storefront Cannabis Dispensaries)•Permit requirements and limitations, permit fees,compliance requirements, allowed activities, display ofpermits, required signage, modification of activities,security plan, age restrictions, prohibitions onconsumption on site, hours of operation, and deliveryrequirements.M.Fines: Applied to property taxes.TITLE 5 - BUSINESS TAXES, LICENSES AND REGULATIONS CHANGES
6 2/4/2022
RiversideCA.gov11
A. Clean up - consistent language with Title 5 andTitle 19B. Repeal Chapter 9.65 - Mobile MarijuanaDispensariesTITLE 9 – PEACE, SAFETY AND MORALS CHANGES RiversideCA.gov12
A. Remove ProhibitionB. Permitted Use TableC. Personal Use RequirementsD. Specific Land Use Provisions/Development Standardsfor Permitted Uses such as site location, operations,signage, parking, landscaping, odor/noiseattenuation, separation requirementsE. EnforcementF. California Environmental Quality Acti. Initial Studyii. Potential Impacts Evaluatediii. FindingsTITLE 19 – ZONING CHANGES
7 2/4/2022
RiversideCA.gov13
Statewide General Election•Option 1 - General Tax on ballot at next GeneralElection – 2024•Option 2 – Unanimous City Council Finding of anEmergency – supported by specific Findings•Option 3 – Special Tax – City Council declares a“special tax” for voter approval (two-thirdsrequired)BALLOT MEASURE – OPTIONS RELATED TO TAXATION RiversideCA.gov14
Statewide General ElectionA. Primary Election Date 2024 - TBDB. Ballot Titlei. City Council determines/adopts language for ballotquestionii. May direct staff to compose the ballot question fortheir approval before calling the electionC. Resolution - City Council adopts a resolutiondetermined based on 2024 primary election dateD. Impartial Analysis - City Attorney based ondeadlines established with 2024 primary electiondateBALLOT MEASURE - PROCESS
8 2/4/2022
RiversideCA.gov15
Costs Associated with InitiativeA. Direct costs: Cannabis Business Coordination,Enforcement, Administration, MonitoringB. Audits: Bi-Annual Audit - Estimated Costs:$13,440 for the two-year periodBusiness TaxA. Revenue Structure and Business Tax RatesBALLOT MEASURE - PROCESS RiversideCA.gov16
Department of Cannabis Control ProposedEmergency Regulations for Equity Fee WaiversA. State program provides financial support by waivinglicensing fees if applicants and licensees meet equityeligibility criteria (past cannabis conviction/arrests,reduced income or residence disproportionatelyimpacted by past criminal justice policies, etc.)B. City may implement “equity application and license”standards which require verification from the StateC.Not required to establish local equity programsADDITIONAL CONSIDERATIONS 9 2/4/2022
RiversideCA.gov17
Public Outreach StrategyA. Detailed Community Outreach & Engagement PlanB. Align with Draft Citywide Community Engagement Policyand Implementation Plan: Create, Identify/Notify,Educate, Listen, Follow Through, Evaluate/AdoptC. Project outline – define goals, objectives, and anticipatedoutcomes of the community engagement effortsD. Continually evaluate and adapt plan to ensuremeaningful opportunity engagement - all populations arerepresentedE. Ballot measure – limitationsAdministrative Impact ConsiderationA. Dedicated Administrative Team to overseeB. Police – additional enforcement needsC. Code Enforcement – to address Code violationsADDITIONAL CONSIDERATIONS RiversideCA.gov18
TIMELINE
10 2/4/2022
RiversideCA.gov19
Riverside Municipal Code changesA. $25,000 - $30,000 for consultant assistance (cannabisregulatory ordinance, developing the cannabis taxordinance, public outreach, and as needed subjectmatter expertise)B. $50,000 - $70,000 - Title 19 changes – CEQAC.Supplement budget amount of $100,000 approvedby City Council on January 18, 2022Ballot Initiative: $160,000.FISCAL IMPACT RiversideCA.gov20
STRATEGIC PLAN ALIGNMENT
Community TrustEquityFiscal ResponsibilityInnovationSustainability & Resiliency #5 High Performing Government#3 Economic Opportunity
11 2/4/2022
RiversideCA.gov21
That the Economic Development, Placemaking andBranding/Marketing Committee recommend that City Council:1. Consider and provide staff with direction on the path forward forRiverside Municipal Code modifications that include:a. Title 5 - Business Taxes, Licenses and Regulations amendmentsrelated to licensing of cannabis retail uses,b. Title 9 – Peace, Safety and Morals amendments to clean up andprovide consistency in cannabis regulations and terminology; andc. Title 19 – Zoning amendments related to land use regulations forcannabis related uses and microbusinesses; and2. Consider and provide staff with direction on the path forward fora ballot measure establishing a business tax for cannabis salesRECOMMENDATIONS