CITY OF VISALIA
City Council Meeting
July 17, 2023
Item _
Consideration of and direction to authorize staff
to:
1. Hire a consultant through sole source
contract to assist with the preparation of a
potential tax measure for cannabis sales and
potential revisions to cannabis regulations in
Visalia
2. Initiate zoning ordinance updates to address
required changes due to state Senate Bill
1186
SB 1186 & CANNABIS
SB 1186
The “Medicinal Cannabis Patients’ Right of
Access Act”
- Signed into CA law in late 2022
- Effective on January 1, 2024
- Prohibits local agencies from enforcing any
local regulations prohibiting the retail sale
by delivery of medicinal cannabis
- “Delivery only” retail businesses will be
permitted, subject to reasonable zoning
regulations for public health and safety,
within the City of Visalia
SB 1186
Applicable local taxes can be charged under
SB 1186, but no specific excise tax for
cannabis currently exists within the city.
When law becomes effective the normal
business license fees could be charged.
E.g., Delivery vehicle only:
- Semi annual business tax of $85 for 1st vehicle and $47.50 for each additional or a business tax which is calculated on gross receipts at $.40 per thousand.
E.g., Retailer with delivery only facility in Visalia:
- Semi annual tax calculated at $.70 per $1,000 of gross receipts with a minimum of $38 and maximum of $998.50.
CANNABIS TAX MEASURE CONSULTANT
Staff is seeking authority from Council to hire
consultant to:
- Draft a potential cannabis sales tax
measure
- Which if authorized separately by Council,
would be placed on the 2024 general
election ballot
- Measure would not be proposing to legalize
other types of cannabis sales but rather
authorize the collection of local taxes if
cannabis sales were allowed in the City
CANNABIS TAX MEASURE CONSULTANT
The consultant may also identify potential
cannabis regulations to include:
- Outline of an ordinance
- A business selection process if applicable
- These potential regulations would require
separate approval to be implemented
Staff would recommend sole source contract
given time constraints to potentially add
general tax item on the November 2024
general election
SB 1186 ORDINANCE IMPLICATIONS
Direction from Council is needed to address
upcoming SB 1186 changes:
- Potential ordinance changes as a result of
delivery only medicinal cannabis being
allowed within the City as of Jan. 1, 2024
- “Reasonable zoning restrictions” and
development condition requirements
- If directed by Council, staff will prepare
ordinance amendments to allow for and
regulate delivery only medical marijuana
businesses
SB 1186 ORDINANCE IMPLICATIONS
1. Modify VMC Chapter 8.64 that broadly
prohibit all commercial cannabis activities
2. Update zoning code matrix in VMC chapter
17.25 of types of business uses by zone
and the general provisions sections to
conform with the proposed addition
allowing designated types of marijuana
businesses
SB 1186 ORDINANCE IMPLICATIONS
a. Separate chapter for marijuana businesses
b. Determination of appropriate zoning
designations for delivery based medical
marijuana businesses
c. Unless state law expressly prohibits, staff
would recommend requiring a conditional use
permit in the C-S zone and permitted by right
in the I and I-L zone
SB 1186 ORDINANCE IMPLICATIONS
d. Not permitted near schools, licensed day
care, libraries, parks, or other recreational
facilities where minors congregate
e. Security plans, including video cameras
would be required
f. A site plan of the proposed business would
be required
g. Fencing, security gates, and block walls
may be required as part of the security plan
h. Closed to the public (delivery only)
SB 1186 ORDINANCE IMPLICATIONS
i. Adequate parking for all employees and
delivery vehicles onsite
j. Delivery vehicles must be inspected by
City and obtain an operating permit prior to
use
k. Cultivation would not be permitted onsite.
l. Background inspections of all owners and
drivers required
m. Signage would be restricted
n. Odor control plan
1. Authorize staff to hire a consultant through
sole source contract to prepare a potential local
sales tax measure specifically for cannabis sales
for the 2024 general election and to identify
potential revisions to cannabis regulations in
Visalia, including potential process criteria for
selection of cannabis businesses, and;
2. Initiate a Zoning Ordinance update to
implement reasonable zoning regulations in
response to SB 1186.
STAFF RECOMMENDATION
QUESTIONS?
Source: CA Dept. of Cannabis Control - https://search.cannabis.ca.gov/retailers Lemoore
Hanford
Goshen
Goshen
Tulare
Tulare
Parlier
Near Visalia
Farmersville
Farmersville
Woodlake
Woodlake
Fresno
Tulare
Near Visalia
Lemoore
FresnoLindsay
PortervilleFresno
Fresno
Fresno
Fresno
Fresno
Porterville
Fresno
Coalinga