11/6/2025
1 RiversideCA.gov1
COMMUNITY & ECONOMICDEVELOPMENT DEPARTMENTCity CouncilNovember 18, 2025Cannabis Testing Laboratory Business Permit Procedure Guidelines and Application Fee RiversideCA.gov2
BACKGROUND
• Testing Labs Approved as a Land UseNovember 2017
• Commercial Cannabis Business Program adopted by City CouncilMarch 2023 • Testing Guidelines ApprovedOct. 2025
• Testing Lab Application FeePresent1
2 11/6/2025
2 RiversideCA.gov3
PERMITTED BUSINESS TYPESProhibited Business Types:•Commercial Cultivation•Microbusinesses*Limited to 1 permit per ward.Maximum NumberBusiness Type14*Storefront RetailNo LimitManufacturing/DistributionNo LimitTesting Laboratories RiversideCA.gov4
DEVELOPMENT PROCESSTesting Lab Guidelines as a Baseline•RMC Chapter 5.77Other cities' processes•10 cities researchedNew Testing Labs Fees3 4 11/6/2025
3 RiversideCA.gov5
TESTING LAB APPLICATION FEE
• Establish Application Fee to recover staff time and costs• Approach to Establish Fees• Review and Analyze other city’s fees• Identify staff time and other costsUser Fee Study RiversideCA.gov6
CITY COMPARISONSFee Options:ActivityRiverside Full CostMoreno ValleyCoronaRiverside CountySan BernardinoPomona Pasadena Santa AnaLong BeachPerrisCosta MesaTesting Laboratory Application Fee 7,511.00$ Not Allowed 8,878.00$ 9,646.14$ 15,015.55$ $13,158.00 13,654.00$ 13,500.00$ 5,925.45$ 16,008.45$ 20,380.00$ N/A Flat FeeDepositFlat Fee Flat Fee Flat Fee Flat Fee Flat Fee Flat Fee Annual Fee* Recommended OptionFlat Fee*• Time and Materials • Reduced Admin TimeDeposit• Time/Costs charges against deposit• Requires tracking time and processing refunds5 6 11/6/2025
4 RiversideCA.gov7
FLAT FEE CALCULATIONIdentify Tasks in Permit ProcessCalculate direct costs using hourly ratesDetermine other operational costsDetermine indirect or “overhead” costsProposed Testing Lab Application Fee: $7,511 RiversideCA.gov8
RECOMMENDATIONSStaff recommends that the City Council: 1. Adopt a Resolution amending the City’s Fees and Charges Scheduleproviding for a testing laboratory commercial cannabis business permitapplication fee.7 8