Cannabis Regulation Watch – Municipality / City Updates 3/11/20
Learn about recent changes to municipalities that are updating their cannabis regulations.
In this edition we have updates on draft ordinances being considered in the municipalities of Corona, Chico, El Centro, and La Habra that would expand the permitted commercial uses in these cities. While these ordinances are not yet codified into law, they offer valuable insight into which new markets may soon become available and can help you get a jump start on the competition in finding viable locations for your businesses.
In addition, we break down the new cannabis business tax in the city of El Monte that residents voted on in the recent election.
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All Municipality / City Regulation Update Posts
- September 24, 2019 Updates: Oxnard, Santa Rosa, Thousand Oaks, Sacramento, Colton, Novato, Sonoma County, Fairfax, Davis, Humboldt
- October 1, 2019 Updates: Illinois Adult-Use Cannabis License Application Details & FAQs
- October 2, 2019 Updates: Humboldt County, Long Beach, Sonoma County, Washington State
- October 14, 2019 Updates: Culver City, City of Berkley, El Dorado, Humboldt, Washington State, Fort Bragg, Sonoma County, Morro Bay
- October 22, 2019 Updates: Fairfax, Humboldt County, Mendota, La Mesa, Culver City, Oxnard, Ventura City, Marysville
- October 29, 2019 Updates: City of Marina, Culver City, City of San Anselmo, City of Barstow, City of San Luis Obispo, Santa Rosa, Fresno, and Port Hueneme
- November 26, 2019 Updates: Stanton, Oxnard, Thousand Oaks, Benicia, Sacramento, Marysville, Pomona, and San Fernando City
- December 18, 2019 Updates: El Monte, Fresno, Sacramento
- January 28, 2020 Updates: Bank Safe Act, Grand Rapids Michigan, Knox County Illinois, Washington, and Illinois.
March 11, 2020 – Municipality / City Cannabis Regulation Updates
- City council study session submitted first draft ordinance on 2/19/2020 to allow the following commercial cannabis uses: retail storefront, storefront retail microbusinesses, manufacturing, Distribution, and Testing Labs.
- This ordinance would set a maximum limit of 17 store-front cannabis retailers and no caps on manufacturing, distribution, testing, and non-storefront retailers.
- Currently, the City of Corona bans all commercial cannabis operations
- Corona city council will reconvene at a future study session to discuss the public’s considerations and the Council’s comments.
- On 2/20/2020, the planning commission adopted Resolution 20-02, recommending the City Council adopt amendments to Title 19, Chapter 19.75 – Cannabis Regulations, of the Chico Municipal Code to allow commercial cannabis business to operate in the city of Chico.
- The proposed ordinance would allow following commercial cannabis uses: Retailer-storefront, Testing Laboratory, Manufacturer, Distributor, Retailer – Delivery Only.
- This ordinance now moves on to the city council for further review.
- The La Habra planning commission met on 2/10/2020 and passed a resolution to send a draft ordinance to city council that would modify the La Habra Municipal Code Title 18, Chapter 18.22 to allow commercial non-storefront retail delivery businesses to operate in the city.
- This ordinance would set a limit of 2 non-storefront retail delivery businesses within the M-1, M-1 PUD or PCI zones
- The ordinance is currently up for review and first reading by the La Habra city council.
- On 2/25/2020 the city council of El Centro met to discuss an ordinance that would allow and regulate storefront retail commercial cannabis sales and prohibit all of the following uses: delivery from a non-storefront retailer, cultivation, processing, and manufacturing, testing, distribution and transportation of cannabis products. Other provisions within the ordinance include:
- Requiring a commercial cannabis permit to engage in a cannabis business.
- Setting a limit of (2) commercial cannabis permits.
- Commercial cannabis businesses must be located in heavy commercial, tourist commercial, general commercial, or light industrial zones.
- Commercial cannabis permits shall be or a term of one year and may be renewed annually.
- A community benefit fee will be applied to a commercial cannabis permit.
- A commercial cannabis storefront shall not be located within fifty feet of a residentially zoned parcel, or within 600 feet of a school, daycare center, youth center, or public park.
- City council estimates it will be able to finalize the proposed ordinance and begin its first reading by May 2020.
- On December 3, 2019, the El Monte City Council adopted Ordinance No. 2960, which authorized adult-use and medicinal commercial cannabis retail, cultivation, manufacturing, distribution, and testing in El Monte.
- On Election Day 3/3/2020, the citizens of El Monte voted Yes (70.23%), No (29.77%) on a resolution to apply a special Cannabis Tax on these newly allowed commercial uses in order to raise money for city public safety uses, services, and programs including:
- City parks, recreation, and youth uses, services, and programs, including, but not limited to: after-school programming; parks maintenance and improvement; new park development; youth, teen, and adult sports; senior services; summer teen programs; and education and job training.
- The new tax will apply at the following rates for commercial uses:
- 5% gross receipt for retail sales sales.
- The Measure would authorize the City Council to increase or decrease the Cannabis Tax rate for retailers, not to exceed 9%
- 3% gross for cultivation
- 2% gross for distribution
- 2% gross for laboratory testing
- 5% gross receipt for retail sales sales.
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