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1 RiversideCA.gov1
COMMUNITY & ECONOMICDEVELOPMENT DEPARTMENTCity CouncilAugust 19, 2025Commercial Cannabis Business Operational Fees RiversideCA.gov2
BACKGROUND
• Commercial Cannabis Business Program adopted by City CouncilMarch 2023 • Retail Guidelines Approved • Retail Application Fees ApprovedOct. 2023 • Phase 2 of Retail Storefront Application Process StartsMarch 2024 • Phase 2 ongoing• Other fees to be approvedPresent1
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2 RiversideCA.gov3
DISCUSSIONEstablish Fees to recover staff time and costsEngaged Consultant (MGT) to prepare fee studyApproach to Establish Fees RiversideCA.gov4
FEE ANALYSIS AND SURVEYBetter understand costsCities have taken various approachesFees are often updated over time3 4 8/7/2025
3 RiversideCA.gov5
CITY COMPARISONSSanta AnaPasadenaSan BernardinoCoronaCity of Los AngelesRiversideProposed FeeActivityRegistration fee: $2,069Regulatory Safety Fee: $14,802$10,639 Annual Regulatory fee: $15,016 Renewal (every 3 yrs): $2,647$2,180 $8,486 $3,719 Annual Permit RenewalRegistration fee: $2,069Regulatory Safety Fee: $14,802$2,037 $5,918 $3,720 $3,554 $1,814 Change in LocationRegistration fee: $2,069Regulatory Safety Fee: $14,802No fee listed. $5,918 Requires new license.Requires new license$4,089 Transfer of Cannabis Business PermitRegulatory Safety Fee: $14,802$3,975 $5,918 $1,834 Modification Request Form: $542Business Diagram Modification: $3,368$1,668 Modification of Site/PremisesNo fee listed. No fee listed.$5,918 $1,974 $2,335 $991 Ownership Change (less than majority ownership)No fee listed. No fee listed. $600 per owner$128 plus DOJ fee$450 $1,342 per personEmployee Background Check ReviewNot allowed.No fee listed.No fee.No fee.No fee.$1,043 Out-of-Town Cannabis Delivery RiversideCA.gov6
FEE OPTIONS
• Time and materials approach• Reduced administrative impacts• Predictable costs for businessesFlat Fee* • Time / fees charged against deposit• Requires – tracking time, processing refundsDeposit Method:
• Additional fee tool to address community issues• Additional time, process and varying resultsAgreements, Tax or CUP* Recommended Option 5 6
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4 RiversideCA.gov7
FLAT FEE CALCULATIONUse Guidelines to identify tasksCalculate direct costs using hourly ratesDetermine other operational costsDetermine indirect or “overhead” costs RiversideCA.gov8
PROPOSED FEES
• $3,719Annual renewal fee
• $1,814Change in location
• $4,089Transfer of Cannabis Business Permit
• $1,668Modification of Site/Premises
• $991Ownership change (less than majority)
• $1,342Employee Background Check Review (per employee) • $1,043Out-of-town Cannabis Delivery Fee7
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5 RiversideCA.gov9
RECOMMENDATIONSStaff recommends that the City Council: 1. Conduct a public hearing to amend the City of Riverside’s Fiscal Year 2025/26 Master Fees and Charges Schedule for the addition of seven (7) Commercial Cannabis Business Permit Fees;2. Introduce and subsequently adopt an ordinance amending the Riverside Municipal code Chapter 3.30 Section 3.30.030 – Schedule of Regulation, Products and Services, subsection IV Community and Economic Development – Planning to rename one category titled Commercial Cannabis Sales Permit Fee to Commercial Cannabis Permit Fee; and 3. Adopt a resolution approving the addition of amending the City’s Fees and Charges Schedule providing for seven (7) Commercial Cannabis Business Permit operation fees: (1) Annual Renewal Fee, (2) Change in Location Fee, (3) Transfer of Permit Fee, (4) Modification of Site/Premises Fee, (5) Less than Majority Ownership Change Fee, (6) Employee Background Check Fee, and (7) Out-of-town Cannabis Delivery Fee.9