1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
CITY ATTORNEY’S OFFICE
3750 UNIVERSITY AVE., STE. 250
RIVERSIDE, CA 92501
(951) 826-5567
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERSIDE, CALIFORNIA, AMENDING THE CITY’S MASTER FEES AND CHARGES SCHEDULE IN RESOLUTION NO. 21960, AS AMENDED,
ESTABLISHING SEVEN ADDITIONAL COMMERICAL CANNABIS
BUSINESS USER FEES.
WHEREAS, the City has the authority to impose fees pursuant to its authority under Article XI, §7 of the California Constitution and under its complementary powers under Section 37112 of the California Government Code and Section 200 of the Riverside City Charter; and WHEREAS, the City has established a policy of recovering the full costs reasonably borne as a result of providing special services of a voluntary and limited nature, such that general taxes are not diverted from general services of a broad nature and there by utilized to subsidize unfairly and inequitably such special services; and
WHEREAS, in Chapter 3.30 of the Riverside Municipal Code, the City Council established its policy as to the recovery of costs and more particularly the percentage of costs reasonably borne to be recovered from users of City services and directing staff as to the methodology for implementing said Chapter 3.30; and
WHEREAS, the adoption of a schedule of fees and charges to be paid by those requesting such special services and the percentage of costs reasonably borne by those persons receiving such special services are necessary so that the City might effectuate its policies; and WHEREAS, the City desires to provide for the establishment of seven additional Commercial Cannabis User Fees, which shall consist of (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 Fee, (6) Employee Background Check Fee, and (7) Out-of-town Cannabis Delivery Fee; and WHEREAS, in September 2023, the City engaged MGT of America Consulting, LLC (“MGT”) to prepare a permit application fee study to develop a fee structure and calculate the full cost of City activities associated with development and implementing a Storefron t Retail Commercial Cannabis Business Permit application process; and
2 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 CITY ATTORNEY’S OFFICE
3750 UNIVERSITY AVE., STE. 250
RIVERSIDE, CA 92501
(951) 826-5567
WHEREAS, the first fee study by MGT examined the costs associated with the initial applications and site reviews; and
WHEREAS, on October 17, 2023, the City Council adopted Storefront Retail Commercial Cannabis Business Permit Procedure Guidelines and Application Review Criteria (Guidelines and Criteria) which outlined the procedures to apply for a Storefront Retail Commercial Cannabis Business Permit, including a requirement for the applicant to pay an application fee; and WHEREAS, on October 24, 2023, the City Council Adopted an Ordinance amending Chapter
3.30 Section 3.30.030IV of the Riverside Municipal Code to add an additional category to the Schedule of Regulations, Products and Services and adopted a Resolution amending the City’s Fees and Charges Schedule providing for a Storefront Retail Commercial Cannabis Business Permit Application Fee of $13,842 per application and Site Review Fee of $17,864 per application; and WHEREAS, at that meeting, the City Council directed staff to return at a later date for Council to consider establishing fees related to Annual Renewals, Change of Business Location, and Transfer of Permit, and other operational fees that might be needed once one or more Commercial Cannabis Business Permits are approved; and
WHEREAS, now that permit applications are moving through Phase 2 of the City’s permitting process, it is important to establish fees to cover the reasonable regulatory costs to the City associated with the review and processing of annual permit renewals and other changes or modifications to Commercial Cannabis Business Permits before these changes are requested or annual renewals are due; and
WHERAS, the scope of services in MGT’s contract included a second fee study to calculate other commercial cannabis permit user fees, which include:
• Annual renewal: Covers the costs to perform an annual review of business and site to ensure requirements of the initial permit are being followed.
• Change in business location: Covers the cost of the review, site inspection, and determination of compliance for a request by a permit holder to change their business location. • Permit Transfer fee: Covers the cost reviewing a request by a permit holder to change the majority ownership or form of their business.
3 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 CITY ATTORNEY’S OFFICE
3750 UNIVERSITY AVE., STE. 250
RIVERSIDE, CA 92501
(951) 826-5567
• Modification of the site/premises: Covers the cost of the review, site inspection, and determination of compliance for a request by a permit holder to modify the building and/or property.
• Less than majority ownership change: Covers the cost of reviewing a request by a permit holder to change less than majority ownership of the business. • Employee Background review: Covers the cost of the background review for employees of permitted businesses.
• Out-of-town delivery permit: Covers the cost of the review and determination of compliance for a request by a non-Riverside Cannabis retailer to deliver product into the City of Riverside.
WHEREAS, based on the MGT Fee Study and Analysis, the proposed fees reflect the services, activities, and efforts required to manage and monitor commercial cannabis businesses on an ongoing basis; and
WHEREAS, the City Council held a duly noticed public hearing on August 19, 2025, and has considered all oral and written evidence presented regarding the revision to the Master Fees and Charges Schedule; and
WHEREAS, all requirements of law regarding the notice and the provision of data are hereby found to have been met; and
WHEREAS, all the proposed fee revisions fall within the stated exceptions to the definition of “tax” established by Proposition 26, and are therefore not subject to the requirements of Article XIIIC of the California Constitution; and
WHEREAS, the City desires to amend the Master Fees and Charges Schedule, Resolution No. 21960 and its related amendments, to reflect the seven additional Commercial Cannabis Business User Fees, which shall consist of (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 Fee, (6) Employee Background Check Fee, and (7) Out-of-town Cannabis Delivery Fee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Riverside, California, as follows:
Section 1: The above recitals are hereby found to be true and correct and are hereby
4 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 CITY ATTORNEY’S OFFICE
3750 UNIVERSITY AVE., STE. 250
RIVERSIDE, CA 92501
(951) 826-5567
incorporated herein as if stated in full.
Section 2: The City Council hereby determines that the specific fees to be charged for the Commercial Cannabis Business User Fees, which shall consist of (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 Fee, (6) Employee Background Check Fee, and (7) Out -of-town Cannabis Delivery Fee, as set forth in Exhibit “A ,” Schedule of Fees and Charges , attached hereto and incorporated herein by reference, are the reasonable costs for service and hereby adopts the same.
S ection 3 : Resolution No. 21960 and all applicable amendments thereto are her eby amended to include the new fee as shown in Exhibit “A” herein.
S ection 4: This Resolution, together with any other resolution amending R esolution No. 21960 and the Master Fees and Charges Schedule (Resolution No. 21960), shall collectively be known as, and hereinafter may be interchangeably referred to as, the “Fees and Charges Resolution,” “Schedule of Fees and Charges,” or the “Master Fees and Charges Schedule.” Section 5: All fees set by this R esolution are for each identified process or service; additional fees shall be required for each additional process or service that is requested or required.
S ection 6: The fees and charges revisions set forth in Exhibit “A ” fall within the stated exceptions to the definition of “tax” established by Proposition 26, and therefore, are not subject to the requirements of Article XIIIC of the California Constitution.
Section 7: The Chief Financial Officer is hereby directed and authorized to maintain a current Master Fees and Charges Schedule which will include all amendments to the Fees and Charges Resolution.
S
ection 8 : If any portion of this R esolution is for any reason declared invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution; the City Council hereby declaring that it would have adopted this R esolution and every other section, subsection, paragraph, subparagraph, item, sub-item, clause, phrase, or portion thereof, irrespective of the fact that any one or more section, subsection, paragraph, subparagraph, item, sub-item, sentence, clause, phrase, or portion be declared invalid or unconstitutional.
5 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 CITY ATTORNEY’S OFFICE
3750 UNIVERSITY AVE., STE. 250
RIVERSIDE, CA 92501
(951) 826-5567
Section 9: Resolution No. 21960 and all amendments thereto are hereby amended as of the date this Resolution becomes operative and any previously established fee or charge not amended herein remain in full force and effect.
S ection 10: The provisions of this R esolution shall become effective immediately upon adoption.
S ection 11: Any and all future amendments to the Fees and Charges Resolution shall be operative on the date of adoption of such resolution(s) approving the proposed amendments, except as otherwise required by California law.
ADOPTED by the City Council this _________ day of _____________, 2025.
___________________________
PATRICIA LOCK DAWSON
Mayor of the City of Riverside
Attest:
_____________________________
DONESIA GAUSE
City Clerk of the City of Riverside
I, Donesia Gause, City Clerk of the City of Riverside, California, hereby certify that the foregoing resolution was duly and regularly adopted at a meeting of the City Council of said City at its meeting held on the _________ day of _____________, 2025, by the following vote, to wit:
Ayes:
Noes:
Absent:
Abstain:
IN WITNESS WHEREOF , I have hereunto set my hand and affixed the official seal of the City of Riverside, California, this ________ day of ______________, 2025.
_________________________________
DONESIA GAUSE
City Clerk of the City of Riverside
22-2104.85 TAT 08/06/25
CODE FY 2025/26
OTHER FEES
2718 COMMERCIAL CANNABIS PERMIT FEES
Annual Renewal 3,719.00$
Change in Location 1,814.00$
Transfer of Permit Ownership 4,089.00$
Modification of Site Premises 1,668.00$
Less than Majority Ownership Change 991.00$
Owner/Employee Background Check 1,342.00$
Out-of-Town Cannabis Delivery 1,043.00$
COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
PLANNING
FEE DESCRIPTION
EXHIBIT "A"