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Economic Development, Placemaking
and Branding/Marketing Committee
October 20, 2022
Cannabis Update
CITY ATTORNEY'S OFFICE
CITY CLERK’S OFFICE
COMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENT
FINANCE DEPARTMENT
FIRE DEPARTMENT
POLICE DEPARTMENT
RiversideCA.gov
2 1. 2017
A. Moratorium on commercial marijuana activity (excluding testing laboratory facilities)
B. Adopted Ordinance No. 7398 to amend Title 5 of the Riverside Municipal Code (RMC) to permit and regulate Cannabis Testing Laboratories in industrial zones
2. 2018
A. Continued discussion of a regulatory framework for cannabis businesses B. Staff directed to prepare an ordinance prohibiting cannabis businesses (except for testing laboratories) and amended RMC
C. City Council voted to approve the amendments to RMC codifying a prohibition of commercial cannabis uses within City limits
BACKGROUND
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3 1. City receives Notice of Intent to Circulate Petition for the Riverside Cannabis Taxation and Regulation Act
2. Two Options for City Council Consideration on the
Petition
A. Call an election to place the initiative petition on the ballot; or B. Adopt the proposed initiative petition without revisions.
BACKGROUND – SEPTEMBER 2021
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4 1. Economic Development, Placemaking and Branding/ Marketing Committee (Committee) meeting to consider legalization
2. City Team assembled - City Manager’s Office, City Attorney’s Office, City Clerk’s Office, Community & Economic Development Department, Fire Department, and Police Department
3. Additional research
A. Legalizing cannabis retail, microbus iness, and distribution uses in the City of Riverside; and
B. Initiate a ballot measure to determine if a business tax should be collected and what that business tax should be for the City.
BACKGROUND – NOVEMBER 2021
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5 1. Immediate Actions - Prepare amendments for the Riverside Municipal Code (RMC)
A. Title 5 - Business Taxes, Licenses and Regulations amendments related to licensing of cannabis business uses;
B. Title 9 - Peace, Safety and Morals amendments to clean up and provide consistency in cannabis regulations and terminology; and C. Title 19 - Zoning amendments related to land use regulations for cannabis related uses and microbusinesses.
2. Future Actions
A. Conduct a financial analysis on potential revenue
B. Cannabis tax ballot measure in 2024 (type of tax, language, and percentage determined at a later date)
BACKGROUND - MARCH 2022
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6 1. Draft Amendments completed (Title 5, Title 9 and Title 19)
2. Direction from Committee – Title 5
3. No further Direction needed for Title 9 and Title 19 A. Clean up items
B. Reflect changes to Title 5
DISCUSSION – RMC CHANGES
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7 1. Ownership Definition (Title 5 – Page 4)
Decision Point 1 – What is the percentage of ownership the City wants to include in defining the owner of the Commercial Cannabis Business?
A. The State defines “owner” - interest of 20% or more
B. Draft Amendments includes a percentage of 20% in defining owner
C. A lower percentage (e.g., 10%) could be considered - more investors may have to follow the responsibilities of a defined owner
DISCUSSION – DECISION POINT 1
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8 2. Criminal Background Checks (Title 5 - Page 6)
Decision Point 2 – Does the City want to require employee background checks?
A. Employee background checks - not required by the State B. Draft Amendments would requir e City background checks for employees
C. Riverside Police Department
i. current practice in the City
ii. Conduct similar background ch ecks for violent felony crimes for employees of other businesses such as massage parlors DISCUSSION – DECISION POINT 2
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9 3. Number of Various Uses Allowed (Title 5 - Page 7)and Storefront Delivery Title 5 - Page 24)
Decision Point 3A – Does the total number of Commercial Cannabis Businesses include both storefront and non-storefront retail uses? Decision Point 3B – Should Manufacturing and Distribution; and Testing Laboratories not be limited?
Decision Point 3C – Should storefront retailers be allowed to deliver? A. Draft Amendments allow up to 14 Commercial Cannabis Uses (2 per Ward) - both storefront and non-storefront businesses
B. Manufacturing/Distribution and Testing Laboratories not limited in the Draft Amendments
C. Draft Amendment recommends allowing storefront retailers to deliver (requirements for delivery are included).
DISCUSSION – DECISION POINT 3
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10 4. Labor Peace Agreement (Title 5 - Page 9)
Decision Point 4 – How many employees should trigger a labor peace agreement for the owner?
A. Labor Peace Agreements required by the State for 20 or more employees
B. Beginning July 1, 2024, a Labor Peace Agreement will be required by the State for all applicants/licensees with 10 or more employees
C. Draft Amendments recommends 5 employees based on
recent policy direction from the City Council
DISCUSSION – DECISION POINT 4
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11 5. Appeal Officer (Title 5 - Page 13)
Decision Point 5 – Who should hear appeals related to Commercial Cannabis Businesses?
A. Appeal person/body is not mandated by State
B. Draft Amendments recommend an Appointed Hearing Officer once a Commercial Cannabis Business is operational
C. Consistent with current Code related cases in the City of Riverside i. Currently hears appeals for numerous City Departments ii. Includes, but is not limited to, cod e enforcement citation appeals, Fire Prevention cases, RPD citations pertaining to fireworks and entertainment permits, massage parlor appeals for PD
iii. Current Appointed Hearing Officer is an attorney
DISCUSSION – DECISION POINT 5
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12 6. Distance from Sensitive Receptors (Title 5 - Page 16) Decision Point 6 – What distance separation from sensitive receptors should be included?
A. The State does grant local jurisdictions:
i. Authority to “specify a different radius” t han the 600-foot requirement for schools, daycare centers, and/or youth centers
ii. Authority to impose additional requirements for additional sensitive uses B. Draft Amendment recommends 600-f oot separation for schools, daycare centers and community centers (Uses that can be tracked by the City) C. No distance separation from youth centers – broadly defined by the State (Uses cannot be tracked by the City)
D. Riverside Unified School District requested a 1000-foot separation from schools DISCUSSION – DECISION POINT 6
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13 DISCUSSION – DECISION POINT 6
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14 7. Equity Application and License Standards
Decision Point – Should the City study the potential for Equity Application and License Standards?
A. The State provides financial support to ca nnabis business - waiving licensing fees if applicants and licensees meet the equity eligibility criteria B. Pursuant to Business and Professions Code S ection 26249(c), a local jurisdiction may implement “equity application and license” standards – State verification required C. Not required
D. Staff has not received direction to establish a local cannabis equity program - Draft Amendment does not include Equity Application and License Standards.
E. If directed, the first step in the process would be to direct staff to prepare a Cannabis Equity Study (costs typically range from $10,000 to $100,000) DISCUSSION – DECISION POINT 7
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15 8. Public Outreach
Decision Point – Should additional outreach be completed for the RMC changes?
A. Committee meetings - November 2021, March 2022 and at this meeting
B. Committee members - presentati ons, upon request, on the item C. For the Draft Amendments, additional outreach has not been conducted
D. A public outreach program will be developed for the ballot measure moving forward
DISCUSSION – DECISION POINT 8
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16 1. October 2022 - February 2023
A. Finalize the Draft Amendments
B. City Council Consideration
2. January 2023 – June 2023
A. Financial analysis on potential revenue
B. Implementation
i. Application Submission and Review process
ii. Application Criteria and Application
iii. Community Benefit Agreement template
iv. Tracking, Monitoring and Reporting structure
v. Fee Schedule
3. 2023-2024 - Ballot Measure
FUTURE ACTIONS
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17 STRATEGIC PLAN ALIGNMENT
Community Trust
Equity
Fiscal Responsibility
Innovation
Sustainability &
Resiliency
#5 High Performing Government
#3 Economic Opportunity
Envision Riverside 2025 Strategic Plan Priorities
Cross-Cutting Threads
RiversideCA.gov
18 That the Economic Development, Placemaking and
Branding/Marketing Committee review and provide
direction on the proposed Riverside Municipal Code
Amendments related to legalizing cannabis uses: Title 5 – Business Taxes, Licenses and Regulations; Title 9 – Peace, Safety and Morals; and Title 19 – Zoning
RECOMMENDATIONS
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19 REFERENCE ONLY SLIDE
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