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Cannabis Tax Will Be Considered by City Council

025339dSince the passage of Proposition 64 last November, Culver City has put a great deal of time and effort into formulating it’s own cannabis policies

On February 13, 2017, the City Council considered a report on the City’s options under the 2015 Medical Cannabis Regulation and Safety Act (MCRSA) and the 2016 Adult Use of Marijuana Act (AUMA), also known as Proposition 64. AUMA makes major changes to cannabis policy throughout the state. For example, individuals are now allowed to cultivate at home up to six cannabis plants per residence. In addition, retail outlets for the sale of recreational cannabis and other cannabis based businesses will be licensed by the state beginning January 1, 2018. Culver City has previously not permitted cannabis businesses within the city. Due to the changes at the state level, City Council wants to consider whether to change that existing policy, or whether to keep it. The Council also wants to consider a full spectrum of general regulations related to cannabis.

The City Council’s Strategic Plan, Goal Five (“Identify New Revenue Sources to Maintain Financial Stability”), Objective One (“Potential Retail Marijuana Excise Tax”) states that City Council will consider whether retailers/dispensaries will be permitted in Culver City. If permitted, the City Council would consider a cannabis tax for placement on the ballot during the April 2018 municipal election.

 

The City Council met on September 11th and September 25th to considered recommendations from the City’s Marijuana Task Force, as well as the City Council Sub-Committee, to permit commercial cannabis activity in Culver City.

At these two meetings, City Council directed staff to return with proposed zoning and regulatory ordinances, along with associated regulations, that would:

1. Allow up to three (3) medicinal and adult-use cannabis storefront retail businesses (“dispensaries”) in retail and industrial zones within the City.

Retail storefronts must be located at least 600 feet from sensitive receptors, including K-12 schools, day care centers, youth centers, parks, and playgrounds.
The City will award storefront retail cannabis business permits through a competitive, multi-phased, merit-based process, with the City Council ultimately approving the awarding of the permit
A conditional use permit will also be required for storefront retail cannabis businesses.
Cannabis businesses will be prohibited from hotels, regional malls, and mobile home parks.
2. Allow the following medicinal and adult-use cannabis businesses in industrial zones within Culver City:

Delivery Only Retail (“Home Delivery”)
Manufacturing
Distribution
Testing
Indoor commercial cultivation (within specific areas identified by the City Council Subcommittee).
Applications for the above-listed commercial cannabis business types should be reviewed and approved through a ministerial permit process.
3. Prohibit the following medicinal and adult-use cannabis businesses within Culver City:

Commercial outdoor cultivation
Commercial mixed-light cultivation
4. Limit the maximum number of cannabis businesses permitted in Culver City by business type, as follows: storefront retail (3), delivery-only retail (5), inclusive of any storefront retailers that also provide delivery; manufacturing (6); distribution (6); cultivation (indoors) (3); and testing laboratories (4).

5. Businesses will be allowed to apply for and receive permits in multiple business categories (eg manufacturer/distributer), as long as they meet all the requirements of each category and are located in the appropriate zone.

Sensitive receptors are defined in the California Health & Safety Code:

Day Care Centers (defined in California Health & Safety Code Section 1596.76)
Any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school age child care centers.
Youth Centers (defined in California Health & Safety Code Section 11353.1)
Any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.
Special Cannabis Tax

At its regular meeting on Monday, October 9, 2017, at 7:00 p.m., the Culver City Council will discuss a potential commercial cannabis tax.

When available, the meeting agenda and backup documents will be posted to the City’s Meetings & Agendas webpage.

The meeting will take place at City Hall, Mike Balkman Council Chambers, 9770 Culver Blvd., Culver City, CA 90232. Underground visitor parking is accessible off Duquesne Avenue.

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