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RiversideCA.gov
Economic Development, Placemaking and Branding/Marketing CommitteeMarch 24, 2022CANNABIS UPDATECITY ATTORNEY'S OFFICECITY CLERK’S OFFICECOMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENTFINANCE DEPARTMENTFIRE DEPARTMENTPOLICE DEPARTMENT RiversideCA.gov2
A. Moratorium on commercial marijuana activity (excludingtesting laboratory facilities)B. Adopted Ordinance No. 7398 to amend Title 5 of the RiversideMunicipal Code (RMC) to permit and regulate CannabisTesting Laboratories in industrial zonesBACKGROUND - 20171 2 2
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A. Continued discussion of a regulatory framework for cannabisbusinessesB. Staff directed to prepare an ordinance prohibiting cannabisbusinesses (except for testing laboratories) and amendedRMCC. City Council voted to approve the amendments to RMCcodifying a prohibition of commercial cannabis uses withinCity limitsBACKGROUND - 2018 RiversideCA.gov4
A. Notice of Intent to Circulate Petition for the Riverside CannabisTaxation and Regulation Act submitted to CityB. Two Options for City Council Consideration on the Petitioni. Call an election to place the initiative petition on the ballot; orii. Adopt the proposed initiative petition without revisionsBACKGROUND – SEPTEMBER 20213 4 3
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A. Economic Development, Placemaking and Branding/MarketingCommittee directed staff to research for legal cannabis businessand tax ballot considerationB. Presentation to the Chambers of CommerceC. City Team assembled - City Manager’s Office, City Attorney’sOffice, City Clerk’s Office, Community & Economic DevelopmentDepartment, Fire Department, and Police DepartmentD. Team conducted additional research to determine way forwardi. Legalizing cannabis retail, microbusiness, and distribution uses in theCity of Riverside; andii. Initiate a ballot measure to determine if a business tax should becollected and what that business tax should be for the City.BACKGROUND – NOVEMBER 2021 RiversideCA.gov6
A. Permitted Uses: Microbusinesses, Distribution, TestingLaboratories (currently allowed), Delivery-Only CannabisDispensaries, and Storefront Cannabis Dispensaries.B. Prohibited Uses: Cultivation (except when associated with amicrobusiness), Nurseries and Production.C. Licensing requirementsTITLE 5 - BUSINESS TAXES, LICENSES AND REGULATIONS CHANGES5 6 4
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D. Role of City Manager: Review applications (merit based)including Business, Safety and Security, NeighborhoodEngagement (and Labor/Employment Plans (potential LaborPeace Agreement)E. Business Tax PaymentF. On-site RequirementsG.Reporting Requirements: Criminal activity and maintainingrecordsTITLE 5 - BUSINESS TAXES, LICENSES AND REGULATIONS CHANGES RiversideCA.gov8
H. Cannabis Business Permit Application Requirements•Application form, background checks, list of Interested Parties,description of the business, floor plans, compliance with Title 19,owner consent, security and lighting plans, odor control plan,business plan, state licenses, tax compliance, insurance, annualbudgets, applicant certification and indemnificationI. Fees, Application Process (including Renewals) and Revocation•Title 19 conditions, additional City Manager-imposed conditions,grounds and notice for denial, grounds and noticing forsuspending/modifying/revoking cannabis business permits, andrenewal timingTITLE 5 - BUSINESS TAXES, LICENSES AND REGULATIONS CHANGES 7 8 5
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J. Community Benefit Agreement – business required to pay feeuntil agreed sunset date if/when ballot measure passesK. Appeals: Process, fees, hearing procedures, and form/contentsof decisions.TITLE 5 - BUSINESS TAXES, LICENSES AND REGULATIONS CHANGES RiversideCA.gov10
L. Specific Use Requirements (Microbusiness, Distribution, TestingLaboratories, Delivery-Only Dispensaries, and Storefront CannabisDispensaries)•Permit requirements and limitations, permit fees, compliancerequirements, allowed activities, display of permits, required signage,modification of activities, security plan, age restrictions, prohibitions onconsumption on site, hours of operation, and delivery requirements.M.Fines: Applied to property taxes.TITLE 5 - BUSINESS TAXES, LICENSES AND REGULATIONS CHANGES9 10 6
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A. Clean up - consistent language with Title 5 and Title 19B. Repeal Chapter 9.65 - Mobile Marijuana DispensariesTITLE 9 – PEACE, SAFETY AND MORALS CHANGES RiversideCA.gov12
A. Remove ProhibitionB. Permitted Use TableC. Personal Use RequirementsD. Specific Land Use Provisions/Development Standards forPermitted Uses such as site location, operations, signage,parking, landscaping, odor/noise attenuation, separationrequirementsE. EnforcementF. California Environmental Quality Acti. Initial Studyii. Potential Impacts Evaluatediii. FindingsTITLE 19 – ZONING CHANGES11 12 7
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Statewide General Election•Option 1 - General Tax on ballot at next General Election – 2024•Option 2 – Unanimous City Council Finding of an Emergency –supported by specific Findings•Option 3 – Special Tax – City Council declares a “special tax” forvoter approval (two-thirds required)BALLOT MEASURE – OPTIONS RELATED TO TAXATION RiversideCA.gov14
Statewide General ElectionA. Primary Election Date 2024 - TBDB. Ballot Titlei. City Council determines/adopts language for ballot questionii. May direct staff to compose the ballot question for theirapproval before calling the electionC. Resolution - City Council adopts a resolution determinedbased on 2024 primary election dateD. Impartial Analysis - City Attorney based on deadlinesestablished with 2024 primary election dateBALLOT MEASURE - PROCESS13 14 8
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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 Proposed EmergencyRegulations for Equity Fee WaiversA. State program provides financial support by waiving licensingfees if applicants and licensees meet equity eligibility criteria(past cannabis conviction/arrests, reduced income orresidence disproportionately impacted by past criminal justicepolicies, etc.)B. City may implement “equity application and license”standards which require verification from the StateC. Not required to establish local equity programsADDITIONAL CONSIDERATIONS15 16 9
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Public Outreach StrategyA. Detailed Community Outreach & Engagement PlanB. Align with Draft Citywide Community Engagement Policy andImplementation Plan: Create, Identify/Notify, Educate, Listen, FollowThrough, Evaluate/AdoptC. Project outline – define goals, objectives, and anticipated outcomes ofthe community engagement effortsD. Continually evaluate and adapt plan to ensure meaningful opportunityengagement - all populations are representedE. Ballot measure – limitationsAdministrative Impact ConsiderationA. Dedicated Administrative Team to overseeB. Police – additional enforcement needsC. Code Enforcement – to address Code violationsADDITIONAL CONSIDERATIONS RiversideCA.gov18
TIMELINEDECNOVOCTSEPAUGJUL20222022MAYAPRMARJUNFEBJAN2023JANBegin CEQAEnd CEQADraft RMC Changes (5, 9)ED, P &B/MCommittee InputDraft RMC Changes (19)Planning Commission MeetingCouncil –RMC ChangesRMC Changes Effective2024•Business Tax Measure•2024 General ElectionED, P &B/MCommitteeRecommendationCouncil DirectionPUBLIC OUTREACH& ENGAGEMENTOngoing throughout all phasesFinalize RMC ChangesMicrobusinesses, Distribution, Testing Laboratories, Delivery-Only Dispensaries, and Storefront DispensariesCEQA Required (Mitigated Negative Declaration)17 18 10
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ALTERNATIVE TIMELINEDECNOVOCTSEPAUGJUL20222022MAYAPRMARJUNED, P &B/MCommittee InputPlanning Commission MeetingCouncil –RMC ChangesRMC Changes Effective2024•Business Tax Measure•2024 General ElectionED, P &B/MCommitteeRecommendationCouncil DirectionPUBLIC OUTREACH& ENGAGEMENTOngoing throughout all phasesFinalize RMC ChangesDraft RMC Changes (5, 9, 19)Distribution, Testing Laboratories, Delivery-Only Dispensaries, and Storefront DispensariesCEQA Exemption RiversideCA.gov20
Riverside Municipal Code changesA. $25,000 - $30,000 for consultant assistance (cannabisregulatory ordinance, developing the cannabis taxordinance, public outreach, and as needed subject matterexpertise)B. $50,000 - $70,000 - Title 19 changes – CEQAC. Supplement budget amount of $100,000 approved by CityCouncil on January 18, 2022Ballot Initiative: $160,000.FISCAL IMPACT19 20 11
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STRATEGIC PLAN ALIGNMENT
Community TrustEquityFiscal ResponsibilityInnovationSustainability & Resiliency #5 High Performing Government#3 Economic Opportunity
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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 sales.RECOMMENDATIONS21 22