2026 Cannabis Update
Presented by: Gabriel Elliott, Community Development & Housing Director Stephanie Castro, Economic Development Project Manager
Current Status
16 Commercial
Cannabis Businesses
• 8 Stand Alone Retail
• 6 Micro with Retail
• 2 Cultivation
3 Revocations
2 Forfeitures
CBP # Business Name DBA Business Address License Type Date Issued 19-001 Blunt Bros Packs 2211 S. Hunts Lane, Suites K, L, M, N O Micro (R/M/D) 10/2/2019 20-002 Pure Dispensaries Haven 164 W. Redlands Blvd Micro (R/C/M/D) 7/23/2020 20-003 Nibble Easy Stiiizy 1181 S. E Street Micro (R/M/D) 8/12/2020 20-004 JIVA Cookies 494 W. Orange Show Lane, Suite A, D & E Retail 9/22/2020 21-001 Nibble 390H Stiiizy 390 N. H Street Micro (R/M/D) 1/26/2021 21-002 Captain Jacks 100 W. Hospitality Lane Retail 9/21/2021 21-003 Shatter 350 W. 5th Street, Suite 100 Retail 9/21/2021 22-002 Central Avenue Nursery Sky Club 723 S. Allen St Micro (R/C/D) 5/2/2022 22-003 RD San Bernardino Higher Ground 240 E. Redlands Blvd Retail 6/8/2022 22-004 PTRE Management Culture 225 S. Airport Dr Retail 7/19/2022 22-005 GWC Real Estate Joshua's Healing
Garden 741 S. Lugo Ave Cultivation 12/22/2022
23-001 Accessible Options 151 N E St Cultivation 6/8/2023 23-002 EEL Holdings, LLC Catalyst 506 W. Inland Center Drive Retail 8/9/2023 23-004 Ashe Society SB, LLC. ASHE 444 N. H Street Retail 2/23/2024 24-002 SOCA Farms, LLC 654 S. Lincoln Avenue Micro (R/C/D) 3/12/2024 25-001 RZNHEAD Backpack Boyz 1090 S. Arrowhead Ave Retail 4/14/2025 Total 16
Revenues
FY 23/24 – FY 25/26
Brought in over $680,000 in
• Application Fees
• Annual Regulatory Fees
• Livescans & Backgrounds
Current FY – temporary
decrease due to pending fee
collections.
Revenues - Taxes
FY 23/24 –
$3.0M Anticipated
$3.2M Collected
FY 24/25 –
$3.4M Anticipated
$3.1M Collected
FY 25/26 –
$3.2M Anticipated
$1.5M Collected so far
Crime Stats
219 Reporting Districts within City Limits
16 Permitted Locations
144 Total Calls for Service
False Alarms, Collision Reports, Vandalism and other related calls 21 Reports Taken
1 incident of theft at a licensed dispensary
Task Force
53 Elicit & Illegal Closures
• Marijuana Dispensaries
• “Seshs”
• Indoors Grows
Work done in collaboration with San Bernardino Police Department and other State agencies, including the California Department of Tax & Fee Administration (CDTFA)
• 18 Open and ongoing investigations
• 4 Confirmed active locations
• 12 Vacant, going through permitting process
• 2 Require follow up
San Bernardino Full Financial
& Compliance Audit Analysis
Prepared by Canna Business Services
San Bernardino | Canna Business Services
Program Overview & SWOT Analysis
S
T
Strengths: Clear local taxation structure
(SBMC 5.18); proactive buffer zones
(600ft+ for sensitive uses); existing
partnership for operator vetting
W
Weaknesses: High rate of "State-Minimum"
compliance (local rules overlooked); lack of
easily accessible administrative
documentation (Alarm/Surveillance
contracts); lack of split-ledger reporting
(cannabis vs. non-cannabis revenue)
O
Opportunities: Revenue recovery via
identifing discrepancies between taxes paid
and taxes owed; standardizing municipal
oversight through uniform regulatory signage
and emergency readiness protocols
Threats: Market saturation; unreported
ownership or management changes (integrity
risk); illicit delivery services impacting local
retail
San Bernardino | Canna Business Services
Key Program Metrics
Total Active
Operators
Operational
Compliance Total Tax Collected (YTD) Outstanding Tax Due Primary Risk Areas: Facility security integrity (hardware maintenance) and administrative recordkeeping (on-site contract and map accessibility).
15 100%*
*following CBS & SAX
corrective actions
$2,857,612.40 $106,531.42
Operational Baseline
Executive Program Summary (May-Nov 2025)
San Bernardino | Canna Business Services
San Bernardino operators demonstrate strong foundational compliance in physical security, armed deterrence, and odor mitigation
Inventory Physical Accuracy Targeted spot checks confirmed a 100% physical-to-digital match for all on-hand stock currently in production
Metric Data Reconciliation
Identified a consistent need for digital ledger cleanup at cultivation sites to reconcile residual records (active Metrc packages for product no longer on-site) Local Ordinance Gaps While foundational compliance is high, most facilities demonstrated omissions in San-Bernardino- specific technical or administrative mandates
Corrective Action Plan
Established and implemented a three-tier action item prioritization framework to drive operational effectiveness and improvement
Operational Action Items
San Bernardino | Canna Business Services
Immediate: Critical Integrity Risks
Surveillance Interference, Security Blind Spots, Inventory Reconciliation, Unauthorized Access Risk, and Unverified Indemnification
Priority: Revenue Recovery & Operational Value
Tax Base Protection, Revenue Stream Separation, Municipal Liability Shield, Enforcement Efficiency Ongoing: Standardization Measures
Surveillance Standardization, Uniform Signage, Safety and SOP development, Audit implementation plan Financial Compliance: Auditor Objectives
San Bernardino | Canna Business Services
Goal: Ensure reported gross
receipts align with internal POS
and ledger data.
Focus: Accuracy of tax
calculations and reported
business metrics.
Revenue & Tax
Reconciliation
Goal: Verify that all tax liabilities
were remitted accurately and on
time.
Focus: Documentation of
payments and adherence to
municipal deadlines.
Payment & Filing
Compliance
Goal: Evaluate the security and
integrity of financial workflows.
Focus: Cash management
procedures and sales transaction
controls via observation and
interviews.
Operational Control
Review
Financial Findings
San Bernardino | Canna Business Services
Common Non-Compliant Financial Areas:
• Inaccurate Tax Reporting
• Improper Completion of Tax Remittance Forms
• Lack of Supporting Documentation
• Canopy Square Footage - documentation between
the City and operator would be helpful for
verification
• Payment Timing & Penalty Risk
• Reconciliation Gaps between POS Systems and Tax
Filings
Areas of Strong Compliance:
• Accurate and consistent financial reporting
• Well-maintained POS/accounting systems
• Proper reconciliation between records and tax filings *These examples show that strong compliance practices
are achievable and can serve as a benchmark*
Enforcement Summary
San Bernardino | Canna Business Services
CBS & SAX noted all non-compliant areas and assisted all operators into compliance, leaving ZERO operators non- compliant
• Minor gaps were identified during all inspections - no operator was exempt proving a thorough audit and inspection
• Common main issues as seen, included: Signage, labeling, visitor management, storage, video surveillance, administrative documentation and financial reporting
• All identified issues were addressed through corrective measures and required action items to achieve audit approval and final completion
• CBS oversaw and verified that all corrective actions were properly implemented and documented in partnership with the City
• Implementing these steps will reinforce long-term compliance and improve overall operational resilience Thank you.
Prepared by Canna Business Services
Recommendation:
It is recommended that the Mayor and City Council receive and file this update.
QUESTIONS?