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DISCUSSION
City of San Bernardino
Request for Council Action
Date: June 3, 2026
To: Honorable Mayor and City Council Members
From: Gabriel Elliott, Director of Community Development & Housing Department: Community Development & Housing
Subject: 2026 Commercial Cannabis Regulatory Program
Update (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the oral report on the Commercial Cannabis Regulatory Program.
City Manager's Comments
No recommendation. This is an annual report of the permitted commercial cannabis businesses from 2023/2024 through 2025/2026.
Executive Summary
This agenda item is an overview of the status of the City of San Bernardino’s Commercial Cannabis Regulatory Program. The city currently has 16 permitted commercial cannabis businesses across retail, microbusiness, and cultivation operations, with one operator ceasing operations following permit revocation. From FY 2023/2024 through FY 2025/2026, the program has generated approximately $680,000 in regulatory fees and $7.9 million in cannabis tax revenue. Overall, the program remains stable and compliant, with minimal cannabis-related crime, 100% operator audit compliance in 2025, and continued enhancements to support industry accountability and growth.
Background
The San Bernardino Municipal Code Chapter 5.10 establishes the regulations and standards for Commercial Cannabis Business (CCB) activities in the City. The City Council initially adopted Chapter 5.10 through Ordinance MC-1464 in March 2018. In October 2018, the City Council amended Chapter 5.10 with Ordinance MC-1503. The City Council then adopted Resolution 2018-227 to place Ordinance MC-1503 on the November 2018 ballot for voter approval. In November 2018, the voters approved 3 3
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Ordinance MC-1503.
Under Chapter 5.10, to operate a Commercial Cannabis Business in the City, a person must obtain a valid CCB Permit from the City and a valid license from the California Department of Cannabis Control (SBMC § 5.10.060). The city offers six types of permits: cultivation; distribution; manufacturing; microbusiness; retail; and testing . (SBMC § 5.10.060). Chapter 5.10 currently caps the number of Commercial Cannabis Business Permits that the City may issue at 17 retail and unlimited for all other license types.
Discussion
Current Status of Permits
Currently, the city has 16 commercial cannabis businesses, comprised of 8 retail locations, 6 microbusinesses with a retail component and 2 cultivation facilities.
In April 2025, staff had been notified by the California Department of Tax and Fee Administration (CDTFA) that they intended to revoke the seller’s permit issued to SB Pharma Holdings, LLC DBA The Row House, located at 1975 Diners Court. On July 30, 2025, SB Pharma was issued formal notice that their permit had been revoked. On August 4, 2025, the city’s Business Registration Department conducted a site inspection and confirmed The Row House had closed their doors and were closed for business.
Issued Cannabis Business Permits
CBP # Business Name DBA Business Address License Type
State License
# Date Issued
19-001 Blunt Bros. Packs 2211 S. Hunts Lane,
Suites K, L, M, N O Micro (R/DL/D/NEM) C12-0000380 10/2/2019 20-002 Pure San Bernardino Haven 164 W. Redlands Blvd Micro (R/DL/C/M/D) C10-0000311 7/23/2020 20-003 Nibble Easy Stiiizy 1181 S. E Street Micro (R/M/D) C12-0000370 8/12/2020 20-004 JIVA SBD LLC Cookies 494 W. Orange Show Lane,
Suite A, D & E Retail C10-0000742 9/22/2020
21-001 Nibble 390H LLC Stiiizy 390 N. H Street Micro (R/M/D) C12-0000340 1/26/2021 21-002 Sb License 01, LLC Captain Jacks 100 W. Hospitality Lane Retail C10-0000074 9/21/2021 21-003 Shatter, LLC Shatter 350 W. 5th Street, Suite 100 Retail C10-0000542 9/21/2021 22-002 Central Avenue Nursery, LLC Sky Club 723 S. Allen St Micro (R/C/D) C12-0000417 5/2/2022 22-003 RD San Bernardino LLC Higher Ground 240 E. Redlands Blvd. Retail C10-0001021 6/8/2022 22-004 PTRE Management Culture 225 S. Airport Dr Retail C10-0000718 7/19/2022 22-005 GWC Real Estate Services, LLC Joshua's Healing
Garden 741 S. Lugo Ave Cultivation CCL19-
0003786 12/22/2022
23-001 Accessible Options LLC 151 N E St Cultivation CCL21- 0005196 6/8/2023
23-002 Catalyst - San Bernardino LLC
EEL Holdings, LLC Catalyst 506 W. Inland Center Drive Retail C10-0001359 8/9/2023 23-004 Ashe Society SB, LLC. ASHE 444 N. H Street Retail (DL) C10-0001116 12/19/2023 24-002 SOCA Farms, LLC Gray Market 654 S. Lincoln Avenue Micro (R/C/D) C12-0000475 3/12/2024 25-001 RZNHEAD Backpack Boyz 1090 S. Arrowhead Ave Retail C10-0001460 4/14/2025 Total 16
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Revenues
The Commercial Cannabis Regulatory Program Applicants are required to pay fees to recover the City’s costs in processing applications, permits, inspections and audits.
The program also requires quarterly Cannabis Tax payments that are incorporated into the General Fund and get allocated to projects where it is most needed in the community, such as police services, road repairs, parks and libraries.
From Fiscal Year 2023/2024 through the current Fiscal Year 2025/2026, the Commercial Cannabis Program has generated just over $680,000 in application and annual regulatory fees. Revenues in FY 2023/2024 and FY 2024/2025 appear elevated due to variances between adopted budget projections and year-to-date actuals, as well as an increase in application fees associated with three-year operator renewals. Revenue in the current fiscal year reflects a temporary decrease, as regulatory fee payments from several operators are still pending.
From Fiscal Year 2023/2024 through the current Fiscal Year 2025/2026, the program has also generated approximately $7.9 million in Commercial Cannabis Tax revenue.
The decline in tax revenue between FY 2024/2025 and FY 2025/2026 is primarily attributed to outstanding reporting and remittance from several operators, in addition to the revocation of SB Pharma Holdings, LLC.
133.69%
56.19%
-27.14%
$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
FY 23/24 FY 24/25 FY 25/26 FY 26/27
Adopted Budget YTD Transactions Anticipated
Cannabis Revenues
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Cannabis Crime Stats
The Police Department, through the Crime View Dashboard database, tracks the crime statistics throughout all 219 reporting districts within the city limits. Staff maintains contact with the Police Department as it relates to confirming crime at the City’s current active and operating CCB’s as part of meeting the Commercial Cannabis Regulatory program requirements.
The Police Department ran an incident analysis report on cannabis related calls for service from April 2024 to April of 2026, and the calls consisted mainly of false alarms, collision reports, vandalism and other unrelated calls, not associated with the cannabis operations themselves. In the last almost 2 years, there have only been two significant calls for service for theft at a licensed dispensary.
Annual Regulatory Inspections & Financial Audits
In December 2024, the City of San Bernardino entered into contract with Tetra Growth Systems DBA Canna Business Services for Regulatory Compliance Inspections and Annual Financial Audits. By December of 2025, all operators have completed their inspections and audits, and all 15 active operators were found to be 100% compliant.
Compliance Inspections & Financial Audits are beginning again in June of 2026 and are estimated to be completed in November of 2026.
7.81%
-9.34%
-45.64%
$0.00
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
$3,500,000.00
$4,000,000.00
FY 23/24 FY 24/25 FY 25/26 FY 26/27
Adopted Budget YTD Transactions Anticipated
Cannabis Tax Revenue
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Continued Program Growth
Starting in January 2026, Canna Business Services collaborated with the City of San Bernardino to offer additional resources to all permitted operators. These resources included A Quick Audit Guide, a document designed to help operators become prepared for their upcoming inspection and audit, and Live METRC Workshops designed to offer zero cost training to operators and their staff for a State mandated cannabis Track and Trace platform.
Strategic Targets and Goals
The Annual Update on the Commercial Cannabis Regulatory Program is consistent with Key Target No 1: Improved Operational & Financial Capacity. Specifically, the multiple streams of revenue through Regulatory Fees, Cannabis Tax and Cannabis Sales Tax provide a long-term revenue source. Commercial Cannabis Regulatory Program Applicants are required to pay application fees to recover the City’s costs in processing permits, conducting inspections, along with Cannabis Tax and Cannabis Sales Tax. The Cannabis Tax Revenue stream goes to improvements throughout the city as allocated through the budget process.
Fiscal Impact
There is a positive impact to the General Fund derived from the application fees collected as part of the Commercial Cannabis Regulatory Program Applicants. These fees, estimated to be over $240,000 annually, recover the City’s costs in processing the permits, along with Cannabis Tax and Cannabis Sales Tax. To date, the city has collected over $18M in application and regulatory fees and cannabis tax revenues.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the oral report on the Commercial Cannabis Regulatory Program.
Attachments
Attachment 1 Cannabis Regulatory Program Update 2026 Power Point Ward:
All Wards
Synopsis of Previous Council Actions:
March 17, 2018 – Mayor and City Council adopted Ordinance MC-1464 establishing regulations and standards for Commercial Cannabis.
August 1, 2018 – Mayor and City Council adopted Resolution No. 2018-277 placing Ordinance No. MC-1499 establishing Cannabis Tax on the November ballot which was approved by the voters.
August 17, 2022 – Mayor and City Council received and filed an Annual Update on the Commercial Cannabis Regulatory Program.
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November 1, 2023 – Mayor and City Council received and filed an Annual Update on the Commercial Cannabis Regulatory Program.
June 5, 2024 – Mayor and City Council received and filed an Annual Update on the Commercial Cannabis Regulatory Program.
CC: Eric Levitt, City Manager