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Consider the Adoption of Resolution Nos 2022-48, 2022-49, 20
2000 Main Street, Huntington Beach, CA ; 92648 City of Huntington Beach DMV5 /4_E Ai°MOVEZD f8 l>.190 6 i �`'1�71/iaE"D 5=Z (PErDZ56A(,Hsay-/VDT File #: 22-601 MEETING DATE: 7/19/2022 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Al Zelinka, City Manager VIA: Travis K. Hopkins, Assistant City Manager PREPARED BY: Grace Yoon-Taylor, Senior Administrative Analyst Subject: Consider the Adoption of Resolution Nos. 2022-48, 2022-49, 2022-46, and 2022-47 to place Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval Statement of Issue: On July 5, 2022, the City Council voted to place two City-sponsored measures regarding cannabis business regulation and taxation on the November 8, 2022 General Municipal Election ballot for voter approval. Staff has since prepared ballot measure language for City Council's consideration, as well as four resolutions that are required to place the measures on the ballot: 1. Resolution No. 2022-48 - Order the submission of a (1) general tax measure with ordinance to amend Huntington Beach Municipal Code Chapter 3.25 and (2) advisory measure to regulate commercial cannabis businesses; 2. Resolution No. 2022-49 - Request to place the aforementioned cannabis-related measures on the November General Election ballot; 3. Resolution No. 2022-46 - Set priorities for writing arguments; direct the City Attorney to prepare an impartial analysis for each measure; 4. Resolution No. 2022-47 - Provide for the filing of rebuttal arguments for each measure. To place these two measures on the November ballot, the City Council must approve the proposed ballot measure language and adopt the four resolutions identified above. Following adoption of the resolutions, the City will prepare an impartial analysis for each measure and gather written arguments and rebuttals - all of which must be submitted to the OC Registrar of Voters (ROV) by the filing deadline of August 12, 2022. Also on July 5, the City Council provided direction on several key policy areas regarding commercial cannabis business activities via straw votes and directed the Ad Hoc Subcommittee and City staff to continue working towards developing regulatory and zoning ordinances for the City Council's consideration at a future meeting. City of Huntington Beach Page 1 of 6 Printed on 7/14/2022 poweredE4 Legistar- File #: 22-601 MEETING DATE: 7/19/2022 Financial Impact: Per the ROV, the estimated cost to place two measures on the ballot will depend on the number of pages required to present each measure on the ballot at approximately $8,500 for every 2 pages. Secondary expenses like postage, printing, and cost related with the County's Vote Center model are to be determined by the County, but are already included in a separate budget set aside for the City's regularly scheduled elections for City Council and City Attorney. The incremental cost of placing two additional ballot measures is estimated to be an additional $25,000, which is included in the Fiscal Year 2022-23 Budget in General Fund business unit 10040101. Recommended Action: A) Consider two proposed cannabis ballot measures (for regulation and taxation) and ballot language for placement on the November 8, 2022 General Municipal Election ballot; and, B) Adopt Resolution No. 2022-48, "A Resolution of the City Council of the City of Huntington Beach, California, Ordering the Submission to the Qualified Electors of the City of a General Tax Measure for the Submission to the Qualified Voters of a Proposed Ordinance Adding Chapter 3.25 to Title 3 of the Huntington Beach Municipal Code, Establishing a General Tax on Cannabis Businesses Operating within the City of Huntington Beach and an Advisory Measure Regarding the Regulation of the Commercial Cannabis Businesses at the General Election to be held on Tuesday, November 8, 2022, as Called by Resolution No. 2022-39 "; and, C) Adopt Resolution No. 2022-49, "A Resolution of the City Council of the City of Huntington Beach, California, Adding Two Additional Measures to the Request to the Board of Supervisors of the County of Orange to Consolidate A General Municipal Election to be held on November 8, 2022, with the Statewide General Election to be held on the Date Pursuant to § 10403 of the Elections Code"; and, D) Adopt Resolution No. 2022-46, "A Resolution of the City Council of the City of Huntington Beach, California, Setting Priorities for Filing Written Arguments and Impartial Analyses Concerning Regulation and Taxation of the Commercial Cannabis Businesses within the City of Huntington Beach"; and, E) Adopt Resolution No. 2022-47, "A Resolution of the City Council of the City of Huntington Beach, California, Providing for the Filing of Rebuttal Arguments for City Cannabis Regulation and Taxation Measures Submitted at Municipal Elections"; and, F) Provide any additional direction on commercial cannabis regulatory framework as the Ad Hoc Subcommittee and City staff continue to work on regulatory and land use ordinances. Alternative Action(s): Do not approve one or more recommended actions, and direct staff accordingly. Analysis: Cannabis Business Regulation Ballot Measure City of Huntington Beach Page 2 of 6 Printed on 7/14/2022 powered54 Legistar", File #: 22-601 MEETING DATE: 7/19/2022 If this measure is approved for placement on the November 2022 ballot, Huntington Beach voters will be able to vote on whether retail and commercial cannabis activities should be permitted in Huntington Beach. Based on feedback received from City Council on July 5, 2022, staff has prepared four proposed ballot measure questions (max 75 words each) and requests City Council to consider selecting one for placement on the November ballot. Please note: Option 1-3 are advisory measures posed to voters that maintain the City Council's ability to develop policies through business and land use ordinances and respond with greater flexibility to evolving State laws and market conditions without necessitating the delay and expense of a municipal election. Option 4 would implement this measure as a proposed amendment to the City Charter under Article VIII. Any future changes to this amendment would require a Charter amendment process and election to implement. Options Proposed Ballot Language Included Provisions (most specific to least) Advisory Measure Options Option I "Shall the City of Huntington Beach repeal the City's current ban. Types (both retailers and on commercial cannabis businesses and allow a limited number on-retailers) • Authority of cannabis retailers and non-retailers to operate only in for the City Council permitted areas of Huntington Beach, subject to business and discretion for ordinances land use regulations by City Council?" Option 2 "Shall the City of Huntington Beach allow up to 10 • Types (both retailers and storefront cannabis retailers, with 20% being dedicated to on-retailers) • Cap on # residents and local business owners, and other cannabis of permits for storefront businesses (delivery-only retailer, indoor cultivator, retailers • 20% allocation manufacturer, testing lab, and distributor) to operate only in of local-only permits • permitted areas of Huntington Beach, and allow the City Authority for the City Council discretion to adopt and amend business and land Council discretion for use ordinances regarding commercial cannabis activities?" ordinances Option 3 "Shall the City of Huntington Beach allow up to 10 storefront . Types (both retailers and cannabis retailers 1,000 feet away from schools, parks, on-retailers) • Cap on # commercial childcare centers, and youth centers to operate in of permits for storefront Commercial Zone and Specific Plan areas, except Downtown and Coastal Overlay Zone; and other cannabis businesses retailers • Location and (delivery-only retailer, indoor cultivator, manufacturer, testing lab,buffer restrictions for both and distributor) only in the Industrial Zone, and allow the City • Authority for the City Council discretion to adopt ordinances regarding commercial Council discretion for cannabis activities?" ordinances Charter Amendment Measure Option City of Huntington Beach Page 3 of 6 Printed on 7/14/2022 poweredWy LegistarT File #: 22-601 MEETING DATE: 7/19/2022 Option 4 "Shall the proposed Amendment to Article VIII of the Charter of e Similar to the Measure T: the City of Huntington Beach adding Section 806 to permit a Safe and Sane Fireworks limited number of cannabis businesses to operate in specified Charter Amendment, if areas of Huntington Beach, subject to regulation by City Council passed, the Charter as set forth in the proposed measure be approved?" amendment would permanently authorize commercial cannabis activities, which could only e removed by the City's electorate. If one proposed ballot measure option is selected tonight, it will then be incorporated into its respective resolutions for adoption. Number of Available Parcels per Buffer Distances At the July 5, 2022 meeting, a 1,000 ft. buffer from high and middle schools and all other sensitive receptors (parks, commercial licensed childcare centers, and youth centers) was presented for both retailers and non- retailers. The majority of the Council, via a straw vote, expressed an interest in increasing the buffer to 1,000 ft. for all schools and sensitive receptors for storefront retailers. This increase in the buffer would reduce the number of eligible parcels from 491 to 278 for storefront retail (dispensaries). However, it would not impact the number of available parcels for delivery-only retailers (type 9) and non-retailers, which would remain the same at 555. To assist the City Council's decision on the proposed ballot measure language options, especially for Option 1 which includes buffer parameters, the following chart with additional data is presented below. Additionally, GIS maps showing geographic locations of permitted areas are attached for your consideration. Previous Proposal July 5 Council's Direction Buffer Distances # of Available Buffer Distances# of Available Parcels Parcels Storefront Retailers 1,000 ft. from middle 491 *Refer to 1,000 ft. from sc 278 *Refer to (Commercial Zone & high schools 600 ft. Attachment 5 1,000 ft. from parAttachment 6 Specific Plans) from K-5 600 ft. froi 1,000 ft. from arks 600 ft. from commercial licen commercial licensed daycare centers 1 daycare centers 600 f from youth cente from youth centers Delivery-only Same as above. 555 *Refer to No Change 555 *Refer to Retailers (Type 9) & Attachment 7 Attachment 7 Non-Retailers (Industrial Zones) Cannabis businesses would not be allowed to operate until the City adopts regulatory and land use ordinances and administrative regulations/processes for permitting, including adoption of fees (for 100% cost recovery). Establishment of such ordinances will enable Huntington Beach residents, City of Huntington Beach Page 4 of 6 Printed on 7/14/2022 powered Legistar", File #: 22-601 MEETING DATE: 7/19/2022 businesses, and community stakeholders to provide testimony through duly noticed public hearings. Cannabis Business Tax Ballot Measure If approved, the Cannabis Business Tax Ballot Measure would mirror Measure A: Cannabis Business Tax from the June 7, 2022 Primary Election. However, it would be presented as a General Tax, instead of a Special Tax. As a General Tax, the revenue will go to the General Fund for any general municipal services, as approved by the City Council allocation during the annual budgeting process. Such expenditures could include but are not limited to police, fire, parks, and homeless and behavioral health services. The proposed tax rates would remain the same as Measure A: • Up to 1% for non-retailers (indoor cultivation, manufacturing, testing laboratory, and distribution) and; • Up to 6% for retailers (both storefront and delivery) and; • Not-to-exceed local excise taxes will allow flexibility for the City Council to adjust tax rates between minimum and maximum voter-approved rates for each type of cannabis businesses to address new emerging market conditions. Government Code Section 53724 requiring a resolution calling for a General Tax to be placed on a general municipal election must be adopted by 2/3 of the City Council. To be approved and adopted, the General Tax measure must be approved by a majority of voters. Proposed Ballot Language for Council consideration (max 75 words, YES/NO): Proposed Ballot Language Included "Shall the City adopt an Ordinance that taxes cannabis businesses up to 6% of . Maximum two separate gross receipts for retailers and up to 1% of gross receipts for all other cannabis tax rates for retailers and businesses if they were to be permitted in the City; which is expected to non-retailers • Estimated generate an estimated $300,000 to $600,000 annually to fund general municipal services for Huntington Beach and will be levied until repealed by the voters?" annual tax revenue • Purpose of fund use The proposal included in the Ordinance (Resolution No. 2022-48, Exhibit A) combines business tax rate and implementation concepts from the other agencies surveyed, but is premised on ensuring that all cannabis-related businesses contribute tax revenue to the community. The proposed Ordinance establishes tax rates regardless of the outcome of the ballot measure regarding allowing cannabis-related businesses to operate in Huntington Beach or future City Council actions that may be taken to establish business and land use regulations. Direct Arguments For or Against Two Measures, Impartial Analysis, & Rebuttals The attached Resolutions include a proposed ballot question and deadlines to submit direct arguments by 7/29/2022 and rebuttal arguments by 8/08/2022; it also directs the City Attorney to draft and submit an impartial analysis of the measure by 7/29/2022. City Council as a whole, or any member(s) authorized by the City Council may submit ballot arguments, for or against the measure(s) pursuant to Elections Code section 9281 and 9282. If the motion moves forward, the Council may consider adopting a motion designating an Ad Hoc City of Huntington Beach Page 5 of 6 Printed on 7/14/2022 poweredEa LegistarT'" File #: 22-601 MEETING DATE: 7/19/2022 Subcommittee to draft an argument on its behalf, or designating specific Council Members to draft an argument under their names. In the event such a Council authorized argument is not prepared, individual voters (including Council Members) can submit an argument, and a priority is set forth by Election Code Section 9287 to be applied by the City Clerk in selecting the ballot argument to use (only one may be used.) Environmental Status: Not applicable. Strategic Plan Goal: Economic Development & Housing Attachment(s): 1. Resolution No. 2022-48 2. Resolution No. 2022-49 3. Resolution No. 2022-46 4. Resolution No. 2022-47 5. GIS Map A-1. Storefront Retailers with primarily 600 ft. buffers from sensitive uses 6. GIS Map A-2. Storefront Retailers with 1,000 ft. buffers from sensitive uses 7. GIS Map B. Non-Retailers and Type 9 Retailers City of Huntington Beach Page 6 of 6 Printed on 7/14/2022 powered Legistar- City Council/Public Financing ACTION AGENDA July 19, 2022 Authority state of emergency continues to impact the ability to meet safely in person, and allows meetings of the City Council and all City boards, commissions and committees to be conducted remotely as needed in compliance with new Brown Act provisions identified in Assembly Bill 361 Recommended Action: Reaffirm Resolution No. 2021-62, "A Resolution of the City Council of the City of Huntington Beach, California, Finding that the Proclaimed State of Emergency Continues to Impact the Ability to Meet Safely in Person." Approved 7-0 10. 22-5 7 Appropriated funds for emergency maintenance repairs at Warner Fire Fuel Station located at 3831 Warner Avenue Recommended Action: A) Appropriate $550,000 in Transfers Out from FY2021/22 General Fund year- end surplus to the Infrastructure Fund; and, B) Appropriate $550,000 from the Infrastructure Fund to account 31440006.82800. Approved 7-0 11. 22-568 Approved one or more reappointments of Jet Noise Commissioners Keith Bohr, Phil Burtis, Jeff Morin, Chris Kunze, Michael Bourgeault, David Porter, and Mario Tabernig, as recommended by City Council Liaisons Barbara Delgleize and Rhonda Bolton Recommended Action: A) Approve the reappointment of Keith Bohr, Phil Burtis, and Mario Tabernig to the Jet Noise Commission as approved by Council Liaisons, Barbara Delgleize and Rhonda Bolton, with terms set to expire on December 31, 2024; and/or, B) Approve the reappointment of Jeff Morin, Chris Kunze, Michael Bourgeault, and David Porter to the Jet Noise Commission as approved by Council Liaisons, Barbara Delgleize and Rhonda Bolton, with terms set to expire on December 31, 2026. Approved 7-0 ADMINISTRATIVE ITEMS 12. 22-601 Adoption of Resolution Nos. 2022-48, 2022-49, 2022-46, and 2022-47 to place Cannabis Business Regulation Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval Recommended Action: A) Consider two proposed cannabis ballot measures (for regulation and taxation) and ballot language for placement on the November 8, 2022 General Municipal Election ballot; and, Page 4 of 5 City Council/Public Financing ACTION AGENDA July 19, 2022 Authority B) Adopt Resolution No. 2022-48, "A Resolution of the City Council of the City of Huntington Beach, California, Ordering the Submission to the Qualified Electors of the City of a General Tax Measure for the Submission to the Qualified Voters of a Proposed Ordinance Adding Chapter 3.25 to Title 3 of the Huntington Beach Municipal Code, Establishing a General Tax on Cannabis Businesses Operating within the City of Huntington Beach and an Advisory Measure Regarding the Regulation of the Commercial Cannabis Businesses at the General Election to be held on Tuesday, November 8, 2022, as Called by Resolution No. 2022-39 "; and, C) Adopt Resolution No. 2022-49, "A Resolution of the City Council of the City of Huntington Beach, California, Adding Two Additional Measures to the Request to the Board of Supervisors of the County of Orange to Consolidate A General Municipal Election to be held on November 8, 2022, with the Statewide General Election to be held on the Date Pursuant to § 10403 of the Elections Code"; and, D) Adopt Resolution No. 2022-46, "A Resolution of the City Council of the City of Huntington Beach, California, Setting Priorities for Filing Written Arguments and Impartial Analyses Concerning Regulation and Taxation of the Commercial Cannabis Businesses within the City of Huntington Beach"; and, E) Adopt Resolution No. 2022-47, "A Resolution of the City Council of the City of Huntington Beach, California, Providing for the Filing of Rebuttal Arguments for City Cannabis Regulation and Taxation Measures Submitted at Municipal Elections"; and, F) Provide any additional direction on commercial cannabis regulatory framework as the Ad Hoc Subcommittee and City staff continue to work on regulatory and land use ordinances. Straw vote (7-0) to direct staff to return with updated maps to include RHNA sites and to obtain additional public input regarding the proposed buffer zones and permitted hours of operation. Adoption of Resolution Nos. 2022-48, 2022-49, 2022-46, 2022-47(as amended to remove language pertaining to regulation of cannabis business) approved 5-2 (Peterson, Posey— No); and item F approved 5-2(Peterson, Posey— No) COUNCILMEMBER COMMENTS (Not Agendized) Councilmember Moser and Mayor Delgleize recognized the recent passing of former Huntington Beach Mayor Ralph Bauer and described his many contributions to the community; comments also provided by Carr, Posey, and Peterson. ADJOURNMENT—at 8:38PM in memory of former Huntington Beach Mayor Ralph Bauer Page 5 of 5 RESOLUTION NO. 2022-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A GENERAL TAX MEASURE FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF A PROPOSED ORDINANCE ADDING CHAPTER 3.25 TO TITLE 3 OF THE HUNTINGTON BEACH MUNICIPAL CODE, ESTABLISHING A GENERAL TAX ON CANNABIS BUSINESSES OPERATING WITHIN THE CITY OF HUNTINGTON BEACH AT THE GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, AS CALLED BY RESOLUTION NO. 2022- 39 WHEREAS, a General Election on Tuesday, November 8, 2022 has been called by Resolution No. 2022-39, adopted on July, 5, 2022; and WHEREAS,the City Council desires to submit to the voters at the election an additional Measure relating to the taxation of Commercial Cannabis Businesses; WHEREAS,pursuant to California Government Code sections 37100.5 and 37101,the City of Huntington Beach has the authority to establish a local business tax upon Commercial Cannabis Businesses that engage in business in the City; and WHEREAS, the City Council desires to submit to the voters a General Tax Measure with an Ordinance establishing both (i) a not-to-exceed rate of 6% local general tax on the Gross Receipts received by any cannabis retail business and (ii) a not-to-exceed rate of 1% local general tax on any other cannabis business, including but not limited to indoor cultivation,manufacturing, testing laboratory, and distribution; and WHEREAS, the proposed Cannabis Business Tax is a general tax, the proceeds of which would be deposited into the City's general fund for general municipal services to the public; and RESOLUTION NO. 2022.48 WHEREAS, on November 6, 1996, the voters of the State of California approved Proposition 218 (California Constitution, Article XIIIC), an amendment to the State Constitution which requires that all general taxes which are imposed, extended or increased must be submitted to the electorate and approved by a majority vote of the qualified electors voting in the election; and WHEREAS, the proposed Ordinance would establish a general tax which is subject to Proposition 218; and WHEREAS,pursuant to Proposition 218 (California Constitution Article XIIIC, §2(b)), the general rule is that any local election for the approval of a general tax must be consolidated with a regularly scheduled general election for members of the governing body of the local government; and WHEREAS, pursuant to Proposition 62 and Government Code Section 53724, an Ordinance or Resolution proposing a general tax must be approved by a two-thirds vote of all members of the legislative body of the local government prior to being submitted to the voters; and WHEREAS, the specific terms relating to the Cannabis Business Tax Measure are provided for in the Ordinance to be considered by the qualified voters, attached hereto as Exhibit A (the "Ordinance" or "Measure") and by this reference made an operative part hereof, and in accordance with all applicable laws. NOW, THEREFORE, the City Council of the City of Huntington Beach, California, does hereby resolve, declare, determine and order as follows: 2 22-11582/287897 RESOLUTION NO. 2022-48 SECTION 1. Recitals. The City Council hereby finds and determines that the foregoing recitals are true and correct, are incorporated herein and by this reference made an operative part hereof. SECTION 2. Submission of Ballot Measure Ordinance. The City Council of the City, pursuant to its right and authority as contained in California Propositions 218 and 62, Government Code section 53724,and Elections Code section 9222,hereby orders the Ordinance attached hereto as Exhibit A to be submitted to the qualified voters of the City at the General Municipal Election to be held on November 8, 2022. The proposed Ordinance shall be in the form attached hereto as Exhibit A to this Resolution and is incorporated by this reference as if fully set forth herein. SECTION 3. Ballot Measure. The City Council, pursuant to its right and authority, does hereby order that the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot to be submitted to the qualified voters at the General Municipal Election to be held on November 8, 2022, in addition to any other matters required by law, there shall be printed substantially the following: Measure : Taxation of Commercial Cannabis Businesses "Shall the City adopt an Ordinance that taxes cannabis YES businesses up to 6% of gross receipts for retailers and up to 1% of gross receipts for all other cannabis businesses if they were to be permitted in the City; which is expected to generate an estimated $300,000 to $600,000 annually to fund general municipal services for Huntington Beach and will be No levied until repealed by the voters?" 3 22-11582/287897 RESOLUTION NO. 2022-48 SECTION 4. That the proposed Measure submitted to the voters are as follows: "Shall the City adopt an Ordinance that taxes cannabis businesses up to 6% of gross receipts for retailers and up to 1% of gross receipts for all other cannabis businesses if they were to be permitted in the City; which is expected to generate an estimated $300,000 to $600,000 annually to fund general municipal services for Huntington Beach and will be levied until repealed by the voters?" (Ordinance is attached as Exhibit A.) SECTION 5. That the vote requirement for the Measure to pass is a majority (50%+1) of the votes cast. SECTION 6. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 7. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 8. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. SECTION 9. CEQA. The City Council hereby finds and determines that the ballot Measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, section 15378(b)(5). This ballot Measure is also exempt from CEQA review pursuant to Business & Professions Code 26055(h) because any subsequent Ordinance adopted by the City Council permitting cannabis businesses will require environmental review prior to any decision relating to the issuance of a permit or other authorization for the cannabis business to commence operations. 4 22-11582/287897 RESOLUTION NO. 2022-48 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19th day of July, 2022. Mayor REVIEWED D PROVED: APPROVED AS TO FORM: &bwcly 1 City Manage / City Att ey Vj) INIT ATED AND APPROVED: C-Assistant Ci Mana er tY g 5 22-11582/287897 Resolution No. 2022-48 ORDINANCE NO.4274* Exhibit"A" AN ORDINANCE OF THE PEOPLE OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, ADDING CHAPTER 3.25 TO TITLE 3 OF THE HUNTINGTON BEACH MUNICIPAL CODE ESTABLISHING TAXES ON CANNABIS BUSINESSES OPERATING WITHIN THE CITY OF HUNTINGTON BEACH The People of the City of Huntington Beach ordain as follows: SECTION 1. Subject tothe approval of a majority of the voters of the City of Huntington Beach at the General Municipal Election so designated by the City Council in a separate Resolution placing the proposal on the ballot for such election,Chapter 3.25 is hereby added to Title 3 of the Huntington Beach Municipal Code to read as follows: Chapter 3.25. CANNABIS BUSINESS TAX 3.25.010 Title 3.25.020 Authority and purpose 3.25.030 Intent 3.25.040 Definitions 3.25.050 Tax imposed 3.25,060 Reporting and remittance of tax 3.25.070 Payments and communications-timely remittance 3.25.080 Payment-when taxes deemed delinquent 3.25.090 Notice not required by City 3.25.100 Penalties and interest 3.25.110 Refunds and credits 3.25.120 Refunds and procedures 3.25.130 Personal cultivation not taxed 3.25.140 Administration of the tax 3.25.150 Appeal procedure 3.25.160 Enforcement-action to collect 3.25.170 Apportionment 3.25.180 Constitutionality and legality 3.25.190 Audit and examination of premises and records 3.25.200 Other licenses,permits,taxes,fees or charges 3.25.210 Payment of tax does not authorize unlawful business 3.25.220 Deficiency determinations 3,25.230 Failure to report-nonpayment,fraud 3.25.240 Tax assessment-notice requirements 3.25.250 Tax assessment-hearing,application,and determination 3.25.260 Relief from taxes—disaster relief 3.25.270 Conviction for violation-taxes not waived 3.25.280 Severability 3.25.290 Remedies cumulative 3.25.300 Amendment or modification *Approved by a Majority of Voters of the City of Huntington Beach at the General Municipal Election Held on November 6, 2022. ORDINANCE NO. 4274 3.25.010 Title. This Ordinance shall be known as the Cannabis Business Tax Ordinance. 3.25.020 Authority and Purpose. The purpose of this Ordinance is to adopt a general tax,pursuant to Sections 37101 and 37100.5 of the California Government Code, upon Cannabis Commercial Businesses that engage in business in the City of Huntington Beach("City"),the Cannabis Business Tax is levied based upon business Gross Receipts.The Cannabis Business Tax is not a sales and use tax,a tax upon income,or a tax upon real property. The Cannabis Business Tax is a general tax enacted solely for general,governmental purposes of the City and not for specific purposes.All of the proceeds from the tax imposed by this section shall be placed in the City's General Fund and be available for any lawful municipal purpose. 3.25.030 Intent. The intent of this Ordinance is to levy a tax on all Cannabis Businesses operating in the City, regardless of whether conducting such business would have been legal at the time this section was adopted.Nothing in this section shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken. 3.25.40 Definitions. The following words and phrases shall have the meanings set forth below when used in this section: "Business" shall include all activities engaged in,or caused to be engaged in,within the City, including any commercial or industrial enterprise,trade,profession,occupation, vocation,calling,or livelihood,whether or not carried on for gain or profit,but shall not include the services rendered by an Employee to his or her employer. "Calendar year" means January 1 through December 31 of the same year. "Cannabis" means all parts of the plant Cannabis Sativa Linnaeus, Cannabis Indica,or Cannabis Ruderalis, whether growing or not;the seeds thereof;the resin,whether crude or purified,extracted from any part of the plant;and every compound,manufacture,salt, derivative,mixture,or preparation of the plant,its seeds or resin. "Cannabis" also means the separated resin,whether crude or purified, obtained from Cannabis. "Cannabis" shall not include"industrial hemp," unless otherwise specified. "Cannabis Business" means any Business activity involving Cannabis or Cannabis Products. "Cannabis Business Tax" or"Business Tax," means the taxes due pursuant to this chapter for engaging in a Cannabis Business in the City. 2 22-11587/2E7710 ORDINANCE NO. 4274 "Cannabis Product" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product,or a topical product."Cannabis product" also means Cannabis Products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medicinal Cannabis Products. "City" means the City of Huntington Beach. "Commercial Cannabis Cultivation" means cultivation of Cannabis undertaken in the course of conducting a Cannabis Business. "Commercial Cannabis Permit" means a permit issued by the City to a person authorizing that person to operate a Cannabis Business or engage in business as a Cannabis Business within the City. "Cultivation"means any activity involving the planting,growing,harvesting,drying, curing,grading,or trimming of cannabis and includes,but is not limited to,the operation of an indoor,outdoor,mixed light,or nursery. All outdoor or mixed light cultivation shall be prohibited in the City. "Distribution"means business activities including the procurement, sale, and transport of Cannabis and Cannabis Products between other licensed Cannabis Businesses. "Employee" means each and every person engaged in the operation or conduct of any business,whether as owner,member of the owner's family,partner,associate,agent, manager or solicitor,and each and every other person employed or working in such business for a wage,salary, commission,barter or any other form of compensation. "Engaged in business as a Cannabis Business" means the commencing, conducting, operating,managing or carrying on of a Cannabis Business,whether done as owner,or by means of an officer,agent,manager, employee,or otherwise,whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person shall be deemed engaged in business within the City if: 1. Such person or person's employee maintains a fixed place of business within the City for the benefit or partial benefit of such person; 2. Such person or person's employee owns or leases real property within the City for business purposes; 3. Such person or person's employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business; 4. Such person or person's employee regularly conducts solicitation of business within the City;or 5. Such person or person's employee performs work or renders services in the City. 3 22-11582/287710 ORDINANCE NO. 4274 The foregoing specified activities shall not be a limitation on the meaning of"engaged in business." "Evidence of doing business" means evidence such as,without limitation,use of signs, circulars, cards or any other advertising media,including the use of internet or telephone solicitation,or representation to a government agency or to the public that such person is engaged in a Cannabis Business in the City. "Gross Receipts," except as otherwise specifically provided herein,means,whether designated a sales price,royalty,rent, slotting fee, commission,dividend,or other designation,the total amount(including all receipts,cash, credits, services and property of any kind or nature)received or payable for sales of goods,wares or merchandise,or for the performance of any act or service of any nature for which a charge is made or credit allowed(whether such service, act or employment is done as part of or in connection with the sale of goods,wares,merchandise or not),without any deduction therefrom on account of the cost of the property sold,the cost of materials used, labor or service costs, interest paid or payable,losses or any other expense whatsoever. Notwithstanding the foregoing,the following shall be excluded from Gross Receipts: I. Cash discounts where allowed and taken on sales; 2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; 3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts; 4. Receipts derived from the occasional sale of used,obsolete or surplus trade fixtures,machinery, or other equipment used by the taxpayer in the regular course of the taxpayer's business; 5. Cash value of sales,trades or transactions between departments or units of the same business located in the City,or if authorized by the Tax Administrator in writing in accordance with section 3.25.140 (B); 6. Whenever there are included within the gross receipts amounts that reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year,those amounts may be excluded from the gross receipts in the year they prove to be uncollectible;provided,however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; 7. Receipts of refundable deposits,except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; 4 22-11582/287710 ORDINANCE NO.4274 8. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. Such agents or trustees must provide the City's Tax Administrator with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees,percentages, or other payments retained by the agent or trustees. 9. Retail sales of t-shirts, sweaters,hats, stickers,key chains,bags, books,posters, rolling papers,Cannabis accessories such as pipes,pipe screens,vape pen batteries(without Cannabis or industrial hemp)or other personal tangible property which the Tax Administrator has excluded in writing by issuing an administrative ruling per Section 3 25.140 shall not be subject to the Cannabis Business tax under this section. "Indoor Cultivation"means the cultivation of Cannabis inside a permanent enclosed building or structure. "Manufacturing"means the production,preparation,propagation,or compounding of Cannabis or Cannabis Products either directly or indirectly or by extraction methods,or independently by means of chemical synthesis,or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages Cannabis or Cannabis Products or labels or relabels their containers. "Person" means an individual,firm,partnership,joint venture, association,corporation, limited liability company,estate,trust,business trust,receiver,syndicate,or any other group or combination acting as a unit,whether organized as a nonprofit or for-profit entity,and includes the plural as well as the singular number. "Processing" means a cultivation site that conducts only trimming,drying, curing, grading,packaging, or labeling of cannabis,industrial hemp and non-manufactured Cannabis Products. "Retail,Retailer,or Retail Facility"means a licensed premises where Cannabis, Cannabis Products,or devices for the use of Cannabis or Cannabis Products are offered, either individually or in any combination for retail sale,including an establishment that delivers Cannabis or Cannabis Products as part of a Retail sale. "Sale," "sell" and "to sell" means and includes any sale,exchange,or barter. It shall also mean any transaction whereby, for any consideration,title to Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products are transferred from one person to another and includes the delivery of Cannabis, Cannabis Products,industrial hemp and/or industrial hemp products pursuant to an order placed for the purchase of the same,but does not include the return of Cannabis,Cannabis Products,industrial hemp and/or industrial hemp products to the licensee from whom the Cannabis, Cannabis Products,industrial hemp and/or industrial hemp product was purchased. "State" means the State of California. 5 22-11582/287710 ORDINANCE NO. 4274 "State license," "license," or "registration" means a State license issued pursuant to California Business &Professions Code Section 26050,and all other applicable State laws,required for operating a Cannabis Business. "Tax Administrator" means the City Manager of the City of Huntington Beach or his or her designee. "Testing Laboratory" means a Cannabis Business that (i)offers or performs tests of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products,(ii) offers no service other than such tests, (iii) sells no products,excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the Cannabis industry in the State,and (v) is licensed by the California Department of Cannabis Control or other State agency required by law. 3.25.50 Tax Imposed. A. There is imposed upon each person who is engaged in business as a Cannabis Business Tax. Such tax is payable regardless of whether the business has been issued a Commercial Cannabis Permit to operate lawfully in the City or is operating unlawfully. The City's acceptance of a Cannabis Business Tax payment from a Cannabis Business operating illegally shall not constitute the City's approval or consent to such illegal operations. B. Pursuant to State law,the City Council may,by Resolution or Ordinance, set, increase or decrease the rate of the Cannabis Business Tax, including the initial rate of Cannabis Business Tax,within the minimum and maximum prescribed range of tax rates, and establish a class of persons that is exempt or excepted from the tax or discontinue any such exemption or exception.Notwithstanding the foregoing,in no event shall the City Council repeal this tax,or any adjusted rate that is less than the minimum rate,nor that exceeds the maximum rates calculated pursuant to this section. C. The minimum and maximum rate of the Cannabis Business Tax shall be calculated as follows: 1. Every person engaged in Retail sales of Cannabis and/or Cannabis Products, including as a Retailer(dispensary)or non-storefront Retailer(Retail delivery business) shall be subject to up to a maximum tax rate not to exceed six percent (6%) of Gross Receipts. 2. Every person engaged in the Indoor Cultivation for Cannabis shall be subject up to a maximum tax rate not to exceed one percent(1%)of Gross Receipts. 3. Every person engaged in the operation of a Testing Laboratory for Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent(1%) of Gross Receipts. 4. Every person engaged in Distribution of Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent(1%)of Gross 6 22-11582/287710 ORDINANCE NO.4274 Receipts. 5. Every person engaged in Manufacturing or Processing of Cannabis and/or Cannabis Products,or any other type of Cannabis business not described in Section 3.25.050 (C)(1), (2),(3),or(4)shall be subject to up to a maximum tax rate not to exceed one percent(1%)of Gross Receipts. Persons subject to the Cannabis Business Tax shall register with the City and pay any fees established by the City Council.Such fees shall not exceed the cost of providing the service and not be considered as a tax and may be adjusted from time to time to recover related costs by Resolution of the City Council. 3.25.60 Reporting and remittance of tax. A. The Cannabis Business Tax imposed by this section shall be paid,in arrears, on a monthly basis. Each person owing a Cannabis Business Tax each calendar month shall, no later than the last day of the month following the close of the calendar month, file with the Tax Administrator a statement('Tax Statement") of the tax owed for that calendar month and the basis for calculating that tax.The Tax Statement is required to be submitted on a form prescribed by the Tax Administrator. The Cannabis Business Tax for each calendar month shall be due and payable on that same date that the Tax Statement for the calendar month is due. B. Upon cessation of a Cannabis Business,Tax Statements and Cannabis tax payments shall be immediately due for all calendar months up to and including the calendar month during which cessation occurred. C. The Tax Administrator may, at his or her discretion,establish alternative reporting and payment periods for any taxpayer as the Tax Administrator deems necessary to ensure efficient and effective collection of the Cannabis Business Tax,but no less frequently than quarterly.The Tax Administrator may also require that a deposit, to be applied against the Cannabis Business Taxes due for a calendar month,be made by a taxpayer at the beginning of that calendar month. In,no event shall the deposit required by the Tax Administrator exceed the Cannabis Business Tax amount he or she projects will be owed,in his or her judgment,by the taxpayer for the calendar month.The Tax Administrator may require that a taxpayer make Cannabis Tax payments via a cashier's check,money order, wire transfer,or similar instrument. 3.25.070 Payments and communications-timely remittance. Whenever any Cannabis Tax payment, statement,report,request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not be accepted as timely remittance. If the due date would fall on a Saturday, Sunday,or a holiday observed by the City,the due date shall be the last business day of the month following the close of the calendar month which the City is open to the public. 7 22-11582/287710 ORDINANCE NO. 4274 3.25.080 Payment when taxes deemed delinquent. Unless otherwise specifically provided under other provisions of this section,the Cannabis Business Taxes required to be paid pursuant to this section shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 3.25.060 and/or 3.25.070. 3.25.090 Notice not required by the City. The City may as a courtesy send a tax notice to the Cannabis Business which owes the City a Cannabis Business Tax.However,the Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this section. Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this section. 3.25.100 Penalties and interest. Any person who fails or refuses to pay any Cannabis Business Tax required to be paid pursuant to this section on or before the due date shall pay penalties and interest as follows: A penalty equal to ten percent(10%)of the amount of the tax due,in addition to the amount of the tax due,plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent(1.0%)per month. If the tax remains unpaid for a period exceeding one calendar month beyond the due date,an additional penalty equal to twenty-five percent(25%)of the amount of the tax,plus interest at the rate of one percent(1.0%)per month on the unpaid tax and on the unpaid penalties. Interest shall be applied at the rate of one percent (1.0%)per month on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full. Whenever a check or electronic payment is submitted in payment of a Cannabis Business Tax and the payment is subsequently returned unpaid by the bank for any reason,the taxpayer will be liable for the tax amount due plus any fees,penalties and interest as provided for in this section, and any other amount allowed under State law. The City may revoke or refuse to renew the license required by Section 3.25.030 for any business that is delinquent in the payment of any tax due pursuant to this section or that fails to make additional fee payments required by the City. 3.25.110 Refunds and credits. A. No refund shall be made of any tax collected pursuant to this section, except as provided in Section 325.120. B. No refund of any Cannabis Business Tax,collected pursuant to this section shall be made because of the discontinuation,dissolution,or other termination of a business. 8 22-115821287710 ORDINANCE NO. 4274 3.25.120 Refunds and procedures. A. Whenever the amount of any Cannabis Business Tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this section,it may be refunded to the claimant who paid the tax provided that a written claim for refund is filed with the Tax Administrator within one (1)year of the date the tax was originally due or paid,whichever came first. B. The Tax Administrator,his or her designee, or any other City officer charged with the administration of this section shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund.No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so. C. In the event that the Cannabis Business Tax was erroneously paid in an amount in excess of the tax due, and the error is attributable to the City,the City shall refund the amount of tax erroneously paid;provided that(i) a claim for refund has been timely filed with the Tax Administrator; and(ii)the refund cannot exceed,under any circumstance, the amount of tax overpaid during the twelve months preceding the last month for which the claim states the tax was overpaid. 3.25.130 Personal cultivation not taxed. The provisions of this section shall not apply to personal Cannabis cultivation or personal use of Cannabis,to the extent those activities are authorized in the State's "Medicinal and Adult Use Cannabis Regulation and Safety Act," as may be amended.This section shall not apply to personal use of Cannabis that is specifically exempted from State licensing requirements,that meets the definition of personal use or equivalent terminology under State law, and provided that the individual receives no compensation whatsoever related to that personal Cultivation or use. 3.25.140 Administration of the tax. A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this section. B. For purposes of administration and enforcement of this section generally,the Tax Administrator may from time to time promulgate such administrative interpretations, rules and/or procedures consistent with the purpose, intent and express terms of this section as he or she deems necessary to implement or clarify such provisions or aid in enforcement. C. The Tax Administrator may take such administrative actions as needed to administer the Cannabis Business Tax,including but not limited to; 1. Provide to all Cannabis Business taxpayers forms for the reporting of the tax; 2. Provide information to any taxpayer concerning the provisions of this section; 9 22-11582/287710 ORDINANCE NO. 4274 3. Receive and record all taxes remitted to the City as provided in this section; 4. Maintain records of taxpayer reports and taxes collected pursuant to this section; 5, Assess penalties and interest to taxpayers pursuant to this section; 6. Determine amounts owed under and enforce collection pursuant to this section. 3.25.150 Appeal procedure. Any taxpayer aggrieved by any decision of the Tax Administrator with respect to the amount of tax, interest,penalties and fees,if any, due under this section may appeal to the City Council by filing a notice of appeal with the City Clerk within thirty(30)calendar days of the serving or mailing of the Tax Administrator's determination of the amount due.The City Clerk, or his or her designee, shall fix a time and place for hearing such appeal, and the City Clerk, or his or her designee, shall give notice in writing to such operator at the last known place of address.The finding of the City Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed by this section 3.25,150 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of the notice. 3.25.160 Enforcement- action to collect. Any taxes,penalties and/or fees required to be paid under the provisions of this section shall be deemed a debt owed to the City. Any person owing money to the City under the provisions of this section shall be liable in an action brought in the name of the City for the recovery of such debt. The provisions of this section shall not be deemed a limitation upon the right of the City to bring any other action including criminal,civil and equitable actions, based upon the failure to pay the Cannabis Business Tax,penalties and/or fees imposed by this section,or the failure to comply with any of the provisions of this section. 3.25.170 Apportionment. If a business subject to the Cannabis Business Tax is operating both within and outside the City, it is the intent of the City to apply the Cannabis Business Tax so that the Measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the City.To the extent Federal or State law requires that any tax due from any taxpayer be apportioned,the taxpayer may indicate said apportionment on his or her tax return.The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary. 3.25.180 Constitutionality and legality. The Cannabis Business Tax is intended to be applied in a manner consistent with the United States and California Constitutions and State law.None of the tax provided for by this section shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State of California, or a violation of any other provision of the California Constitution or State law. If a person believes that the tax,as applied to him or her,is impermissible under applicable 10 22-11582J287710 ORDINANCE NO. 4274 law,he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the tax. 3.30.190 Audit and examination of premises and records. A. For the purpose of ascertaining the amount of Cannabis Business Tax owed or verification any representations made by any taxpayer to the City in support of his or her tax calculation,the Tax Administrator shall have the power to inspect any location where commercial Cannabis Cultivation occurs and to audit and examine all books and records (including, but not limited to bookkeeping records, State and Federal income tax returns, and other records relating to the Gross Receipts of the business)of persons engaged in Cannabis Businesses in the City. In conducting such investigation,the Tax Administrator shall have the power to inspect any equipment,such as but not limited to computers or point of sale machines,that may contain such records. B. It shall be the duty of every person liable for the collection and payment to the City of any Cannabis Business Tax imposed by this section to keep and preserve,for a period of at least three(3)years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Tax Administrator or his/her designee shall have the right to inspect at all reasonable times. C. Should the Tax Administrator be required to perform an audit of the records of any Cannabis Business for failure to timely or accurately report Cannabis Business Taxes pursuant to sections 3.25.060 and/or 3.25.070,the entire cost of the audit shall be assessed against the operator. 3.25.200 Other licenses,permits,taxes,fees or charges. A. Nothing contained in this section shall be deemed to create,replace,amend,repeal or be in lieu of,or in any way affect any requirements for, any Commercial Cannabis Permit or License the City may require for any purpose.In addition,nothing contained in this section shall be deemed to create,replace,amend, repeal or be in lieu of,or in any way affect any requirements for, any tax,fee or other charge imposed,assessed or required under any other Chapter of this code or any other Ordinance or Resolution of the City. 3.25.210 Payment of tax does not authorize unlawful business. A. The payment of a Cannabis Business Tax required by this section,and its acceptance by the City,shall not entitle any person to carry on any Cannabis Business unless the person has complied with all of the requirements of this code and all other applicable State laws. B. No tax paid under the provisions of this section shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law. 11 22-11582/287710 ORDINANCE NO. 4274 3.25.220 Deficiency determinations. If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this section is correct,or that the amount of Cannabis Business Tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three (3)years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a Cannabis Business,a deficiency determination may be made at any time within three(3)years thereafter as to any liability arising from engaging in such Cannabis Business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made,a notice shall be given to the person concerned in the same manner as notices of assessment are given under Section 3,25.240. 3.25.230 Failure to report—nonpayment,fraud. A. Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of Cannabis Business Tax owed by a person under this section at any time: 1. If the person has not filed a complete statement required under the provisions of this section; 2. If the person has not paid the tax due under the provisions of this section; 3. If the person has not,after demand by the Tax Administrator,filed a corrected statement,or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this section;or 4. If the Tax Administrator determines that the nonpayment of any Cannabis Business Tax due under this section is due to fraud,a penalty of twenty- five percent(25%)of the amount of the tax shall be added thereto in addition to penalties and interest otherwise payable under this section and any other penalties allowed by law. B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed,to be due under each applicable provision of this section and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. 3.25.240 Tax assessment- notice requirements. The notice of assessment shall be served upon the person either by personal delivery,by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice in the 12 22-11582/287710 ORDINANCE NO. 4274 United States mail,postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this section;or, should the person have no address registered with the Tax Administrator for such purpose,then to such person's last known address. For the purpose of Section 3.25.240 , a service by overnight delivery shall be deemed to have occurred one(1)calendar day following deposit with a courier and service by mail shall be deemed to have occurred three(3)days following deposit in the United States mail. 3.25.250 Tax assessment bearing,application and determination. Within thirty(30)calendar days after the date of service of the notice of assessment the person may apply in writing to the Tax Administrator for a hearing on the assessment.If application for a hearing before the City is not made within the time herein prescribed,the Cannabis Business Tax assessed by the Tax Administrator shall become final and conclusive. Within thirty(30) calendar days of the receipt of any such application for hearing,the Tax Administrator shall cause the matter to be set for hearing before him or her no later than thirty(30) calendar days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the hearing.Notice of such hearing shall be given by the Tax Administrator to the person requesting such hearing not later than five(5)calendar days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator shall determine and reassess(if necessary)the proper tax to be charged and shall give written notice to the person in the manner prescribed in Section 3.25.240 for giving notice of assessment. 3.25.260 Relief from taxes-disaster relief A. If a Cannabis Business is unable to comply with any tax requirement imposed under this section due to disaster,the business may notify the Tax Administrator of its inability to comply and request relief from the tax requirement. For purposes of this section, "disaster'means fire,flood, storm,tidal wave, earthquake, or similar public calamity,whether or not resulting from natural causes. B. The Cannabis Business shall provide any information required by the Tax Administrator including,without limitation,why relief is requested,the time period for which the relief is requested, and the reason relief is needed for the specific amount of time. The Cannabis Business agrees to grant the Tax Administrator or his/her designee access to the location where the Cannabis Business has been impacted due to a disaster. C. The Tax Administrator,in his/her sole discretion, may provide relief from the Cannabis Business Tax requirement for businesses whose operations have been impacted by a disaster if such tax relief does not exceed fifteen thousand ($15,000) dollars. Such temporary relief may be granted for a reasonable amount of time, in the Tax Administrator's sole discretion,and the amount and duration of relief should be based upon how long it would reasonably take for the Cannabis Business to recover from the disaster. Further,the Tax Administrator may require that the Cannabis Business follow certain conditions to receive temporary relief from the Cannabis Business ax requirement. 13 22-I1582/287710 ORDINANCE NO. 4274 3.25.270 Conviction for violation-taxes not waived. The conviction and punishment of any person for failure to pay the required Cannabis Business Tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction.No civil action shall prevent a criminal prosecution for any violation of the provisions of this section or of any State law requiring the payment of all taxes.Any person violating any of the provisions of this section shall be guilty of a misdemeanor. 3.25.280 Severability. If any provision of this section,or its application to any person or circumstance,is determined by a court of competent jurisdiction to be unlawful,unenforceable or otherwise void,that determination shall have no effect on any other provision of this section or the application of this section to any other person or circumstance and,to that end,the provisions hereof are severable. 3.25.290 Remedies cumulative. All remedies and penalties prescribed by this section or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this section. 3.25.300 Amendment or modification. Except as set forth in this section 3.25.310,this section may be amended or modified but not repealed by the City Council without a vote of the people. However,as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would expand,extend,or increase the rate of any tax levied pursuant to this section. The people of the City of Huntington Beach affirm that the following actions shall not constitute an increase of the rate of a tax: A. The restoration or adjustment of the rate of the tax to a rate that is neither less nor higher than that allowed by this chapter,in those circumstances where, among others,the City Council has previously acted to reduce or increase the rate of the tax within the allowed range or is incrementally implementing an increase authorized by this chapter; B. An action that interprets or clarifies (i)the methodology of applying or calculating the Cannabis Business Tax or(ii) any definition applicable to the tax, so long as the interpretation or clarification(even if contrary to some prior interpretation or clarification)is not inconsistent with the provisions of this Chapter 3.25; or C. The collection of the tax imposed by this section even if the City had, for some period of time,failed to collect the tax. SECTION 2. Pursuant to Article XIII B of the California Constitution,the appropriation limit for the City of Huntington Beach will be increased by the maximum projected aggregate collection authorized by the levy of this general tax,as indicated in Section 1,in each of the 14 22-11582/287710 ORDINANCE NO. 4274 years covered by this Ordinance plus the amount,if any, by which the appropriation limit is decreased by law as a result of the levy of the general tax set forth in this Ordinance. SECTION 3. If any portion of this Ordinance is declared invalid by a court of law or other legal body with applicable authority,the invalidity shall not affect or prohibit the force and effect of any other provision or application of the Ordinance that is not deemed invalid. The voters of the City hereby declare that they would have circulated for qualification and/or voted for the adoption of this Section, and each portion thereof,regardless of the fact that any portion of the initiative may be subsequently deemed invalid. SECTION 4. Pursuant to California Constitution Article)(BIC §(2)(b) and California Elections Code §9217,this Ordinance shall take effect only if approved by a majority of the eligible voters of the City of Huntington Beach voting at the General Municipal Election to be held on November 8,2022,and shall take effect ten(10)days after the City Council has certified the results of the General Municipal Election by Resolution. SECTION 5. This order shall take effect according to law ten days after certification of the election at which it is adopted. PASSED AND ADOPTED by the City Council of the City of Huntin'ton Beach at a regular meeting thereof held on the 6th day of Dv& mber ,20 tr lel 14, Mayor ATTEST: APPROVED M: CZ6710/41,414& City Clerk Ci Attorney VIEW APPROVED: INITIATED AND APPROVED: City M Assistant City Manager 15 22-11581287710 Ord. No. 4274 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HIJNTUiGTON BEACH ) I,ROBIN ESTANISLAU,the duly elected,qualified City Clerk of the City of Huntington Beach,and ex-officio Clerk of the City Council of said City,do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven,that the foregoing ordinance was approved by a majority of voters of the City of Huntington Beach at the General Municipal Election Field on November 6,2022, Certified by the Orange County Registrar of Voters on December 2, 2022,and Per Resolution No.2022-69 Recited and Approved by the Huntington Beach City Council on December 6,2022. AYES: Peterson,Bolton,Posey,Delgleize,Carr,Moser,Kalmick NOES: None ABSENT: None ABSTAIN: None I,Robin Estanislau,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Orange County Register on December 16,2022. 44401, €014.041-14t4) In accordance with the City Charter of said City. Robin Estanislau,City Clerk City Clerk and ex-officio Clerk Senior Depot/SID,clerk of the City Council of the City of Huntington Beach, California The Orange County Register 1920 Main St., Suite 225 Irvine, Ca 92614 714-796-7000 5190751 HUNTINGTON BEACH, CITY OF PROOF OF PUBLICATION CITY CLERK DEPARTMENT 2000 MAIN ST Legal No. 0011576792 HUNTINGTON BEACH, CA 92648-2763 OC Register PUBLISH DATE: 12/16/2022 CITY OF HUNTINGTON BEACH LEGAL NOTICE FILE NO. ORDINANCE NO. 4274 ORDINANCE NO.4274 "AN ORDINANCE OF THE PEOPLE OF THE CITY OF HUNTINGTON AFFIDAVIT OF PUBLICATION BEACH, CALIFORNIA,C ADDING ODE ESTABLISHINGOTAX THE S ON CANNABIS BUSINESSES OPERATING WITHIN THE CITY OF STATE OF CALIFORNIA, HUNTINGTON BEACH" SS. SYNOPSIS Ordinance No. 4274 amends the Huntington Beach Municipal Code County of Orange (HBMC) to establish a general tax that will apply to commercial cannabis businesses that may operate in Huntington Beach, if such businesses are authorized or permitted. The tax is not a sales tax imposed on qualified patients, primary caregivers or customers. The ordinance establishes both (i) a not-to-exceed rate of 6% local general tax on the gross receipts received by any cannabis retail business; and I am a citizen of the United States and a resident of the (ii) a not-to exceed rate of 1% local general tax on any other cannabis business, including but not limited to indoor cannabis cultivation, County aforesaid; I am over the age of eighteen years, and manufacturing,testing laboratory,and distribution businesses. not a party to or interested in the above entitled matter. I COPIES OF THIS ORDINANCE ARE AVAILABLE IN THE CITY am the principal clerk of The Orange County Register, a CLERK'S OFFICE. newspaper of general circulation, published in the city of Approved by a Majority of Voters of the City of Huntington Beach at the General Municipal Election Held on November 6,2022;Certified by the Santa Ana, County of Orange, and which newspaper has Orange County Registrar of Voters on December 2,2022;and Per Resolution No.2022-69 Recited and Approved by the Huntington Beach been adjudged to be a newspaper of general circulation by City Council on December 6,2022 the Superior Court of the County of Orange, State of This ordinance is effective December 16,2022. California, under the date of November 19, 1905, Case No. CITY OF HUNTINGTON BEACH A-21046, that the notice, of which the annexed is a true 2000 MAIN STREET printed copy, has been published in each regular and HUNTINGTON 4-536 5227"CA 92648 entire issue of said newspaper and not in any supplement ROBIN ESTANISLAU,CITY CLERK thereof on the following dates, to wit: 12/16/2022 I certify(or declare) under the penalty of perjury under the laws of the State of California that the foregoing is true and correct: Executed at Anaheim, Orange County, California, on Date: December 16, 2022. Signature ,.LP1-12115/16 t Resolution No. 2022-48 EXHIBIT A Exhibit "A" COUNCIL-SPONSORED INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS The City Council for the City of Huntington Beach submits the following Measure to the voters of the City for approval and enactment: ORDINANCE NO. AN ORDINANCE OF THE PEOPLE OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, ADDING CHAPTER 3.25 TO TITLE 3 OF THE HUNTINGTON BEACH MUNICIPAL CODE ESTABLISHING TAXES ON CANNABIS BUSINESSES OPERATING WITHIN THE CITY OF HUNTINGTON BEACH The People of the City of Huntington Beach ordain as follows: SECTION 1. Subject to the approval of a majority of the voters of the City of Huntington Beach at the General Municipal Election so designated by the City Council in a separate Resolution placing the proposal on the ballot for such election, Chapter 3.25 is hereby added to Title 3 of the Huntington Beach Municipal Code to read as follows: Chapter 3.25. CANNABIS BUSINESS TAX 3.25.010 Title 3.25.020 Authority and purpose 3.25.030 Intent 3.25.040 Definitions 3.25,050 Tax imposed 3.25.060 Reporting and remittance of tax 3.25.070 Payments and communications - timely remittance 3.25.080 Payment - when taxes deemed delinquent 3.25.090 Notice not required by City 3.25.100 Penalties and interest 3.25.110 Refunds and credits 3.25.120 Refunds and procedures 3.25.130 Personal cultivation not taxed 3.25.140 Administration of the tax 3.25.150 Appeal procedure 3.25.160 Enforcement- action to collect 3.25.170 Apportionment 3.25.180 Constitutionality and legality 3.25.190 Audit and examination of premises and records 3.25.200 Other licenses, permits,taxes, fees or charges 3.25.210 Payment of tax does not authorize unlawful business 3.25.220 Deficiency determinations 3.25.230 Failure to report -nonpayment, fraud 3.25.240 Tax assessment -notice requirements ORDINANCE NO. 3.25.250 Tax assessment- hearing, application, and determination 3.25.260 Relief from taxes—disaster relief 3.25.270 Conviction for violation-taxes not waived 3.25.280 Severability 3.25.290 Remedies cumulative 3.25.300 Amendment or modification 3.25.010 Title. This Ordinance shall be known as the Cannabis Business Tax Ordinance. 3.25.020 Authority and Purpose. The purpose of this Ordinance is to adopt a general tax, pursuant to Sections 37101 and 37100.5 of the California Government Code, upon Cannabis Commercial Businesses that engage in business in the City of Huntington Beach("City"), the Cannabis Business Tax is levied based upon business Gross Receipts. The Cannabis Business Tax is not a sales and use tax, a tax upon income, or a tax upon real property. The Cannabis Business Tax is a general tax enacted solely for general, governmental purposes of the City and not for specific purposes. All of the proceeds from the tax imposed by this section shall be placed in the City's General Fund and be available for any lawful municipal purpose. 3.25.030 Intent. The intent of this Ordinance is to levy a tax on all Cannabis Businesses operating in the City, regardless of whether conducting such business would have been legal at the time this section was adopted. Nothing in this section shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken. 3.25.40 Definitions. The following words and phrases shall have the meanings set forth below when used in this section: "Business" shall include all activities engaged in, or caused to be engaged in, within the City, including any commercial or industrial enterprise,trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an Employee to his or her employer. "Calendar year" means January 1 through December 31 of the same year. "Cannabis" means all parts of the plant Cannabis Sativa Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from Cannabis. "Cannabis" shall 2 22-11582/287710 ORDINANCE NO. not include "industrial hemp," unless otherwise specified. "Cannabis Business" means any Business activity involving Cannabis or Cannabis Products. "Cannabis Business Tax" or "Business Tax," means the taxes due pursuant to this chapter for engaging in a Cannabis Business in the City. "Cannabis Product" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. "Cannabis product" also means Cannabis Products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medicinal Cannabis Products. "City" means the City of Huntington Beach. "Commercial Cannabis Cultivation" means cultivation of Cannabis undertaken in the course of conducting a Cannabis Business. "Commercial Cannabis Permit" means a permit issued by the City to a person authorizing that person to operate a Cannabis Business or engage in business as a Cannabis Business within the City. "Cultivation" means any activity involving the planting, growing, harvesting, drying, .curing, grading, or trimming of cannabis and includes, but is not limited to,the operation of an indoor, outdoor, mixed light, or nursery. All outdoor or mixed light cultivation shall be prohibited in the City. "Distribution" means business activities including the procurement, sale, and transport of Cannabis and Cannabis Products between other licensed Cannabis Businesses. "Employee" means each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner's family,partner, associate, agent, manager or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation. "Engaged in business as a Cannabis Business" means the commencing, conducting, operating, managing or carrying on of a Cannabis Business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person shall be deemed engaged in business within the City if: 1. Such person or person's employee maintains a fixed place of business within the City for the benefit or partial benefit of such person; 2. Such person or person's employee owns or leases real property within the City for business purposes; 3 22-11582/287710 ORDINANCE NO. 3. Such person or person's employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business; 4. Such person or person's employee regularly conducts solicitation of business within the City; or 5. Such person or person's employee performs work or renders services in the City. The foregoing specified activities shall not be a limitation on the meaning of"engaged in business." "Evidence of doing business" means evidence such as, without limitation,use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a Cannabis Business in the City. "Gross Receipts," except as otherwise specifically provided herein, means, whether designated a sales price, royalty, rent, slotting fee, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, services and property of any kind or nature)received or payable for sales of goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not),without any deduction therefrom on account of the cost of the property sold,the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. Notwithstanding the foregoing,the following shall be excluded from Gross Receipts: 1. Cash discounts where allowed and taken on sales; 2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; 3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts; 4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer's business; 5. Cash value of sales,trades or transactions between departments or units of the same business located in the City, or if authorized by the Tax Administrator in writing in accordance with section 3.25.140 (B); 6. Whenever there are included within the gross receipts amounts that reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year,those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of 4 22-1 1 5 82/2 8 77 1 0 ORDINANCE NO. such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; 7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; 8. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. Such agents or trustees must provide the City's Tax Administrator with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees. 9. Retail sales of t-shirts, sweaters ,hats, stickers, key chains, bags,books,posters, rolling papers, Cannabis accessories such as pipes, pipe screens, vape pen batteries (without Cannabis or industrial hemp) or other personal tangible property which the Tax Administrator has excluded in writing by issuing an administrative ruling per Section 3.25.140 shall not be subject to the Cannabis Business tax under this section. "Indoor Cultivation" means the cultivation of Cannabis inside a permanent enclosed building or structure. "Manufacturing" means the production, preparation, propagation, or compounding of Cannabis or Cannabis Products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages Cannabis or Cannabis Products or labels or relabels their containers. "Person" means an individual, firm,partnership,joint venture, association, corporation, limited liability company, estate,trust,business trust,receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number. "Processing" means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis, industrial hemp and non-manufactured Cannabis Products. "Retail, Retailer, or Retail Facility" means a licensed premises where Cannabis, Cannabis Products, or devices for the use of Cannabis or Cannabis Products are offered, either individually or in any combination for retail sale, including an establishment that delivers Cannabis or Cannabis Products as part of a Retail sale. "Sale," "sell" and "to sell" means and includes any sale, exchange, or barter. It shall also mean any transaction whereby, for any consideration,title to Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products are transferred from one person to another and includes the delivery of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products pursuant to an order placed for the purchase of the 5 22-1 1 5 82/2877 1 0 ORDINANCE NO. same, but does not include the return of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products to the licensee from whom the Cannabis, Cannabis Products, industrial hemp and/or industrial hemp product was purchased. "State" means the State of California. "State license," "license," or "registration" means a State license issued pursuant to California Business & Professions Code Section 26050, and all other applicable State laws,required for operating a Cannabis Business. "Tax Administrator" means the City Manager of the City of Huntington Beach or his or her designee. "Testing Laboratory" means a Cannabis Business that(i) offers or performs tests of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products, (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the Cannabis industry in the State, and (v) is licensed by the California Department of Cannabis Control or other State agency required by law. 3.25.50 Tax Imposed. A. There is imposed upon each person who is engaged in business as a Cannabis Business Tax. Such tax is payable regardless of whether the business has been issued a Commercial Cannabis Permit to operate lawfully in the City or is operating unlawfully. The City's acceptance of a Cannabis Business Tax payment from a Cannabis Business operating illegally shall not constitute the City's approval or consent to such illegal operations. B. Pursuant to State law,the City Council may, by Resolution or Ordinance, set, increase or decrease the rate of the Cannabis Business Tax, including the initial rate of Cannabis Business Tax,within the minimum and maximum prescribed range of tax rates, and establish a class of persons that is exempt or excepted from the tax or discontinue any such exemption or exception.Notwithstanding the foregoing, in no event shall the City Council repeal this tax, or set any adjusted rate that is less than the minimum rate, nor that exceeds the maximum rates calculated pursuant to this section. C. The minimum and maximum rate of the Cannabis Business Tax shall be calculated as follows: 1. Every person engaged in Retail sales of Cannabis and/or Cannabis Products, including as a Retailer(dispensary) or non-storefront Retailer(Retail delivery business) shall be subject to up to a maximum tax rate not to exceed six percent (6%) of Gross Receipts. 2. Every person engaged in the Indoor Cultivation for Cannabis shall be subject up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 6 22-11582/287710 ORDINANCE NO. 3. Every person engaged in the operation of a Testing Laboratory for Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 4. Every person engaged in Distribution of Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 5. Every person engaged in Manufacturing or Processing of Cannabis and/or Cannabis Products, or any other type of Cannabis business not described in Section 3.25.050 (C) (1), (2), (3), or(4) shall be subject to up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. Persons subject to the Cannabis Business Tax shall register with the City and pay any fees established by the City Council. Such fees shall not exceed the cost of providing the service and not be considered as a tax and may be adjusted from time to time to recover related costs by Resolution of the City Council. 3.25.60 Reporting and remittance of tax. A. The Cannabis Business Tax imposed by this section shall be paid, in arrears, on a monthly basis. Each person owing a Cannabis Business Tax each calendar month shall, no later than the last day of the month following the close of the calendar month, file with the Tax Administrator a statement ('Tax Statement") of the tax owed for that calendar month and the basis for calculating that tax. The Tax Statement is required to be submitted on a form prescribed by the Tax Administrator. The Cannabis Business Tax for each calendar month shall be due and payable on that same date that the Tax Statement for the calendar month is due. B. Upon cessation of a Cannabis Business, Tax Statements and Cannabis tax payments shall be immediately due for all calendar months up to and including the calendar month during which cessation occurred. C. The Tax Administrator may, at his or her discretion, establish alternative reporting and payment periods for any taxpayer as the Tax Administrator deems necessary to ensure efficient and effective collection of the Cannabis Business Tax, but no less frequently than quarterly. The Tax Administrator may also require that a deposit, to be applied against the Cannabis Business Taxes due for a calendar month, be made by a taxpayer at the beginning of that calendar month. In no event shall the deposit required by the Tax Administrator exceed the Cannabis Business Tax amount he or she projects will be owed, in his or her judgment, by the taxpayer for the calendar month. The Tax Administrator may require that a taxpayer make Cannabis Tax payments via a cashier's check,money order, wire transfer, or similar instrument. 3.25.070 Payments and communications - timely remittance. Whenever any Cannabis Tax payment, statement, report, request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not 7 22-11582/287710 ORDINANCE NO. be accepted as timely remittance. If the due date would fall on a Saturday, Sunday, or a holiday observed by the City,the due date shall be the last business day of the month following the close of the calendar month which the City is open to the public. 3.25.080 Payment when taxes deemed delinquent. Unless otherwise specifically provided under other provisions of this section, the Cannabis Business Taxes required to be paid pursuant to this section shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 3.25.060 and/or 3.25.070. 3.25.090 Notice not required by the City. The City may as a courtesy send a tax notice to the Cannabis Business which owes the City a Cannabis Business Tax. However, the Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this section. Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this section. 3.25.100 Penalties and interest. Any person who fails or refuses to pay any Cannabis Business Tax required to be paid pursuant to this section on or before the due date shall pay penalties and interest as follows: A penalty equal to ten percent(10%) of the amount of the tax due, in addition to the amount of the tax due, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent (1.0%)per month. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the tax, plus interest at the rate of one percent (1.0%) per month on the unpaid tax and on the unpaid penalties. Interest shall be applied at the rate of one percent (1.0%)per month on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full. Whenever a check or electronic payment is submitted in payment of a Cannabis Business Tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this section, and any other amount allowed under State law. The City may revoke or refuse to renew the license required by Section 3.25,030 for any business that is delinquent in the payment of any tax due pursuant to this section or that fails to make additional fee payments required by the City. 8 22-11582/287710 ORDINANCE NO. 3.25.110 Refunds and credits. A. No refund shall be made of any tax collected pursuant to this section, except as provided in Section 3.25.120. B. No refund of any Cannabis Business Tax collected pursuant to this section shall be made because of the discontinuation, dissolution, or other termination of a business. 3.25.120 Refunds and procedures. A. ' Whenever the amount of any Cannabis Business Tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this section, it may be refunded to the claimant who paid the tax provided that a written claim for refund is filed with the Tax Administrator within one (1) year of the date the tax was originally due or paid, whichever came first. B. The Tax Administrator, his or her designee, or any other City officer charged with the administration of this section shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund.No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so. C. In the event that the Cannabis Business Tax was erroneously paid in an amount in excess of the tax due, and the error is attributable to the City,the City shall refund the amount of tax erroneously paid; provided that(i) a claim for refund has been timely filed with the Tax Administrator; and (ii) the refund cannot exceed, under any circumstance, the amount of tax overpaid during the twelve months preceding the last month for which the claim states the tax was overpaid. 3.25.130 Personal cultivation not taxed. The provisions of this section shall not apply to personal Cannabis cultivation or personal use of Cannabis,to the extent those activities are authorized in the State's "Medicinal and Adult Use Cannabis Regulation and Safety Act," as may be amended. This section shall not apply to personal use of Cannabis that is specifically exempted from State licensing requirements, that meets the definition of personal use or equivalent terminology under State law, and provided that the individual receives no compensation whatsoever related to that personal Cultivation or use. 3.25.140 Administration of the tax. A. It shall be the duty of the Tax Administrator to collect the taxes,penalties, fees, and perform the duties required by this section. B. For purposes of administration and enforcement of this section generally,the Tax Administrator may from time to time promulgate such administrative interpretations, rules and/or procedures consistent with the purpose, intent and express terms of this section as he or she deems necessary to implement or clarify such provisions or aid in 9 22-11582/287710 ORDINANCE NO. enforcement. C. The Tax Administrator may take such administrative actions as needed to administer the Cannabis Business Tax, including but not limited to: 1. Provide to all Cannabis Business taxpayers forms for the reporting of the tax; 2. Provide information to any taxpayer concerning the provisions of this section; 3. Receive and record all taxes remitted to the City as provided in this section; 4. Maintain records of taxpayer reports and taxes collected pursuant to this section; 5. Assess penalties and interest to taxpayers pursuant to this section; 6. Determine amounts owed under and enforce collection pursuant to this section. 3.25.150 Appeal procedure. Any taxpayer aggrieved by any decision of the Tax Administrator with respect to the amount of tax, interest,penalties and fees, if any, due under this section may appeal to the City Council by filing a notice of appeal with the City Clerk within thirty (30) calendar days of the serving or mailing of the Tax Administrator's determination of the amount due. The City Clerk, or his or her designee, shall fix a time and place for hearing such appeal, and the City Clerk, or his or her designee, shall give notice in writing to such operator at the last known place of address. The finding of the City Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed by this section 3.25.150 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of the notice. 3.25.160 Enforcement- action to collect. Any taxes, penalties and/or fees required to be paid under the provisions of this section shall be deemed a debt owed to the City. Any person owing money to the City under the provisions of this section shall be liable in an action brought in the name of the City for the recovery of such debt. The provisions of this section shall not be deemed a limitation upon the right of the City to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the Cannabis Business Tax, penalties and/or fees imposed by this section, or the failure to comply with any of the provisions of this section. 3.25.170 Apportionment. If a business subject to the Cannabis Business Tax is operating both within and outside the City, it is the intent of the City to apply the Cannabis Business Tax so that the Measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the City. To the extent Federal or State law requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment on his or her tax return. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary. 10 22-1 1 5 82/2877 1 0 ORDINANCE NO. 3.25.180 Constitutionality and legality. The Cannabis Business Tax is intended to be applied in a manner consistent with the United States and California Constitutions and State law. None of the tax provided for by this section shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State of California, or a violation of any other provision of the California Constitution or State law. If a person believes that the tax, as applied to him or her, is impermissible under applicable law,he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the tax. 3.30.190 Audit and examination of premises and records. A. For the purpose of ascertaining the amount of Cannabis Business Tax owed or verification any representations made by any taxpayer to the City in support of his or her tax calculation,the Tax Administrator shall have the power to inspect any location where commercial Cannabis Cultivation occurs and to audit and examine all books and records (including,but not limited to bookkeeping records, State and Federal income tax returns, and other records relating to the Gross Receipts of the business) of persons engaged in Cannabis Businesses in the City. In conducting such investigation, the Tax Administrator shall have the power to inspect any equipment, such as but not limited to computers or point of sale machines, that may contain such records. B. It shall be the duty of every person liable for the collection and payment to the City of any Cannabis Business Tax imposed by this section to keep and preserve, for a period of at least three (3)years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Tax Administrator or his/her designee shall have the right to inspect at all reasonable times. C. Should the Tax Administrator be required to perform an audit of the records of any Cannabis Business for failure to timely or accurately report Cannabis Business Taxes pursuant to sections 3.25.060 and/or 3.25.070,the entire cost of the audit shall be assessed against the operator. 3.25.200 Other licenses, permits, taxes, fees or charges. A. Nothing contained in this section shall be deemed to create, replace, amend, repeal or be in lieu of, or in any way affect any requirements for, any Commercial Cannabis Permit or License the City may require for any purpose. In addition, nothing contained in this section shall be deemed to create, replace, amend, repeal or be in lieu of, or in any way affect any requirements for, any tax, fee or other charge imposed, assessed or required under any other Chapter of this code or any other Ordinance or Resolution of the City. 3.25.210 Payment of tax does not authorize unlawful business. A. The payment of a Cannabis Business Tax required by this section, and its acceptance by the City, shall not entitle any person to carry on any Cannabis Business 11 22-1 15 82/2877 1 0 ORDINANCE NO. — unless the person has complied with all of the requirements of this code and all other applicable State laws. B. No tax paid under the provisions of this section shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law. 3.25.220 Deficiency determinations. If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this section is correct, or that the amount of Cannabis Business Tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three (3) years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a Cannabis Business, a deficiency determination may be made at any time within three (3) years thereafter as to any liability arising from engaging in such Cannabis Business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Section 3.25.240. 3.25.230 Failure to report- nonpayment, fraud. A. Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of Cannabis Business Tax owed by a person under this section at any time: 1. If the person has not filed a complete statement required under the provisions of this section; 2. If the person has not paid the tax due under the provisions of this section; 3. If the person has not, after demand by the Tax Administrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this section; or 4. If the Tax Administrator determines that the nonpayment of any Cannabis Business Tax due under this section is due to fraud, a penalty of twenty- five percent (25%) of the amount of the tax shall be added thereto in addition to penalties and interest otherwise payable under this section and any other penalties allowed by law. B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable 12 22-11582/287710 ORDINANCE NO. provision of this section and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. 3.25.240 Tax assessment - notice requirements. The notice of assessment shall be served upon the person either by personal delivery, by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice in the United States mail,postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this section; or, should the person have no address registered with the Tax Administrator for such purpose, then to such person's last known address. For the purpose of Section 3.25.240 , a service by overnight delivery shall be deemed to have occurred one (1) calendar day following deposit with a courier and service by mail shall be deemed to have occurred three(3) days following deposit in the United States mail. 3.25.250 Tax assessment hearing, application and determination. Within thirty(30) calendar days after the date of service of the notice of assessment the person may apply in writing to the Tax Administrator for a hearing on the assessment. If application for a hearing before the City is not made within the time herein prescribed, the Cannabis Business Tax assessed by the Tax Administrator shall become final and conclusive. Within thirty(30) calendar days of the receipt of any such application for hearing,the Tax Administrator shall cause the matter to be set for hearing before him or her no later than thirty (30) calendar days after the receipt of the application,unless a later date is agreed to by the Tax Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Tax Administrator to the person requesting such hearing not later than five (5) calendar days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator shall determine and reassess (if necessary) the proper tax to be charged and shall give written notice to the person in the manner prescribed in Section 3.25.240 for giving notice of assessment. 3.25.260 Relief from taxes - disaster relief. A. If a Cannabis Business is unable to comply with any tax requirement imposed under this section due to a disaster,the business may notify the Tax Administrator of its inability to comply and request relief from the tax requirement. For purposes of this section, "disaster' means fire, flood, storm, tidal wave, earthquake, or similar public calamity, whether or not resulting from natural causes. B. The Cannabis Business shall provide any information required by the Tax Administrator including, without limitation, why relief is requested,the time period for which the relief is requested, and the reason relief is needed for the specific amount of time. The Cannabis Business agrees to grant the Tax Administrator or his/her designee access to the location where the Cannabis Business has been impacted due to a disaster. 13 22-11582/287710 ORDINANCE NO. C. The Tax Administrator, in his/her sole discretion, may provide relief from the Cannabis Business Tax requirement for businesses whose operations have been impacted by a disaster if such tax relief does not exceed fifteen thousand($15,000) dollars. Such temporary relief may be granted for a reasonable amount of time, in the Tax Administrator's sole discretion, and the amount and duration of relief should be based upon how long it would reasonably take for the Cannabis Business to recover from the disaster. Further, the Tax Administrator may require that the Cannabis Business follow certain conditions to receive temporary relief from the Cannabis Business ax requirement. 3.25.270 Conviction for violation - taxes not waived. The conviction and punishment of any person for failure to pay the required Cannabis Business Tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this section or of any State law requiring the payment of all taxes. Any person violating any of the provisions of this section shall be guilty of a misdemeanor. 3.25.280 Severability. If any provision of this section, or its application to any person or circumstance, is determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void,that determination shall have no effect on any other provision of this section or the application of this section to any other person or circumstance and,to that end, the provisions hereof are severable. 3.25.290 Remedies cumulative. All remedies and penalties prescribed by this section or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this section. 3.25.300 Amendment or modification. Except as set forth in this section 3.25.310, this section may be amended or modified but not repealed by the City Council without a vote of the people. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would expand, extend, or increase the rate of any tax levied pursuant to this section. The people of the City of Huntington Beach affirm that the following actions shall not constitute an increase of the rate of a tax: A. The restoration or adjustment of the rate of the tax to a rate that is neither less nor higher than that allowed by this chapter, in those circumstances where, among others,the City Council has previously acted to reduce or increase the rate of the tax within the allowed range or is incrementally implementing an increase authorized by this chapter; B. An action that interprets or clarifies (i) the-methodology of applying or calculating the Cannabis Business Tax or(ii) any definition applicable to the tax, so long as the interpretation or clarification(even if contrary to some prior interpretation or 14 22-11582/287710 ORDINANCE NO. clarification) is not inconsistent with the provisions of this Chapter 3.25; or C. The collection of the tax imposed by this section even if the City had, for some period of time, failed to collect the tax. SECTION 2. Pursuant to Article XIII B of the California Constitution,the appropriation limit for the City of Huntington Beach will be increased by the maximum projected aggregate collection authorized by the levy of this general tax, as indicated in Section 1, in each of the years covered by this Ordinance plus the amount, if any, by which the appropriation limit is decreased by law as a result of the levy of the general tax set forth in this Ordinance. SECTION 3. If any portion of this Ordinance is declared invalid by a court of law or other legal body with applicable authority, the invalidity shall not affect or prohibit the force and effect of any other provision or application of the Ordinance that is not deemed invalid. The voters of the City hereby declare that they would have circulated for qualification and/or voted for the adoption of this Section, and each portion thereof, regardless of the fact that any portion of the initiative may be subsequently deemed invalid. SECTION 4. Pursuant to California Constitution Article XIIIC §(2)(b) and California Elections Code §9217, this Ordinance shall take effect only if approved by a majority of the eligible voters of the City of Huntington Beach voting at the General Municipal Election to be held on November 8, 2022, and shall take effect ten(10) days after the City Council has certified the results of the General Municipal Election by Resolution. SECTION 5. This order shall take effect according to law ten days after certification of the election at which it is adopted. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2022• Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: City Manager Assistant City Manager 15 22-11582/287710 Res. No. 2022-48 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on July 19, 2022 by the following vote: AYES: Bolton, Delgleize, Carr, Moser, Kalmick NOES: Peterson, Posey ABSENT: None RECUSE: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California j, CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION CONFIDENTIAL LAWYER.-CLIENT COMMUNICATION TO: City Clerk FROM: City Attorney's Office DATE: August 2,2022 SUBJECT: Resolution No. 2022-48 Please be advised that there was a typographical error on this Resolution and we have corrected it. Please update the Official Records with the corrected document. Michael Vigliotta Chief Asst. City Attorney y " w jln�Ve4l '-f- f7lz- q 288777/22-11582 RESOLUTION NO. 2022-48 SECTION 1. Recitals. The City Council hereby finds and determines that the foregoing recitals are true and correct, are incorporated herein and by this reference made an operative part hereof. SECTION 2. Submission of Ballot Measure Ordinance. The City Council of the City, pursuant to its right and authority as contained in California Propositions 218 and 62, Government Code section 53724,and Elections Code section 9222,hereby orders the Ordinance attached hereto as Exhibit A to be submitted to the qualified voters of the Cityat the General Municipal Election to be held on November 8, 2022. The proposed Ordinance'shall be in the form attached hereto as f°. Exhibit A to this Resolution and is incorporated by this reference as if fully set forth herein. SECTION 3. Ballot Measure. The City Council, pursuant to its right and authority, does hereby order that the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form sei forth in this Section 4. On the ballot to be submitted r to the qualified voters at the GeneralNlunicipal Election to be held on November 8, 2022, in addition to any other matters required by law,there shall be printed substantially the following: F Measure—: Tation of Commercial Cannabis Businesses "Shall the 9 adopt an Ordinance that taxes cannabis YES businesses //up to 6% of gross receipts for retailers and up to 1% of gr,oss receipts for all other cannabis businesses if they were to/fie permitted in the City; which is expected to gene 7e an estimated $300,000 to $600,000 annually to fund genlral municipal services for Huntington Beach and will be No le ied until repealed by the voters?" 3 22-11582/287897 RESOLUTION NO. 2022-48 7tn:-7.)SACJ v,3 SECTION 5. That the proposed Measure submitted to the voters are as follows: "Shall the City adopt an Ordinance that taxes cannabis businesses up to 6% of gross receipts for retailers and up to 1% of gross receipts for all other cannabis businesses if they were to be permitted in the City; which is expected to generate an estimated $300,000 to $600,000 annually to fund general municipal services for Huntington Beach and wiltbe levied until repealed by the voters?" (Ordinance is attached as Exhibit A.) SECTION 6. That the vote requirement for the Measure to pass is a majority (50%+1) of the votes cast. SECTION 7. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 8. That notice of the time and place of holding the election is given and the City Clerk is authorized,instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 9. That the,-City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. SECTION l0. CEQA. The City Council hereby finds and determines that the ballot Measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the'California Environmental Quality Act("CEQA") and the State CEQA Guidelines, section 15378(b)(5). This ballot Measure is also exempt from CEQA review pursuant to Business & Professions Code 26055(h) because any subsequent Ordinance adopted by the City Council permitting cannabis businesses will require environmental review prior to any decision relating to f,. ,,the issuance of a permit or other authorization for the cannabis business to commence operations. f 4 22-11582/287897 RESOLUTION NO. 2022-49 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, ADDING ONE ADDITIONAL MEASURE TO THE REQUEST TO THE BOARD OF SUPERVISORS OF THE COUNTY OF ORANGE TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2022, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE DATE PURSUANT TO § 10403 OF THE ELECTIONS CODE WHEREAS, the City Council of the City of Huntington Beach called a General Municipal Election to be held on November 8, 2022, for the purpose of the election of four Members of the City Council,and City Attorney and to submit Measures concerning Amendments to the City Charter; and; WHEREAS,the City Council is submitting to the voters one additional question relating to the taxation of Commercial Cannabis Businesses; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. That pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of Orange was requested by the City to consent and agree to the consolidation of a General Municipal Election with the Statewide General election on Tuesday,November 8, 2022, for the purpose of the election of four Members of the City Council, and the City Attorney, and to submit Measures concerning Amendments to the City Charter. SECTION 2. That the City Council, pursuant to its constitutional right and authority, does order submitted to the voters at the General Municipal Election the following one additional question: RESOLUTION NO. 2022-49 Measure : Taxation of Commercial Cannabis Businesses "Shall the City adopt an Ordinance that taxes cannabis YES businesses up to 6% of gross receipts for retailers and up to 1% of gross receipts for all other cannabis businesses if they were to be permitted in the City; which is expected to generate an estimated $300,000 to $600,000 annually to fund general municipal services for Huntington Beach and will be No levied until repealed by the voters?" SECTION 3. That the proposed complete text of the Taxation of Commercial Cannabis Ordinance, submitted to the voters is attached as Exhibit A. SECTION 4. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 5. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19t' day of July, 2 2. bv&u 4, V Mayor U U REVIEWED AND APPROVED: APPROVED AS TO FORM: City Manager orney TIATED AND APPROVED: Assistant City Man ger 2 22-11582/287900 Resolution No. 2022-49 EXHIBIT A Exhibit "A" COUNCIL-SPONSORED INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS The City Council for the City of Huntington Beach submits the following Measure to the voters of the City for approval and enactment: ORDINANCE NO. AN ORDINANCE OF THE PEOPLE OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, ADDING CHAPTER 3.25 TO TITLE 3 OF THE HUNTINGTON BEACH MUNICIPAL CODE ESTABLISHING TAXES ON CANNABIS BUSINESSES OPERATING WITHIN THE CITY OF HUNTINGTON BEACH The People of the City of Huntington Beach ordain as follows: SECTION 1. Subject to the approval of a majority of the voters of the City of Huntington Beach at the General Municipal Election so designated by the City Council in a separate Resolution placing the proposal on the ballot for such election, Chapter 3.25 is hereby added to Title 3 of the Huntington Beach Municipal Code to read as follows: Chapter 3.25. CANNABIS BUSINESS TAX 3.25.010 Title 3.25,020 Authority and purpose 3.25.03 0 Intent 3.25.040 Definitions 3.25.050 Tax imposed 3.25.060 Reporting and remittance of tax 3.25.070 Payments and communications - timely remittance 3.25.080 Payment- when taxes deemed delinquent 3.25.090 Notice not required by City 3.25.100 Penalties and interest 3.25.110 Refunds and credits 3.25.120 Refunds and procedures 3.25.130 Personal cultivation not taxed 3.25.140 Administration of the tax 3.25.150 Appeal procedure 3.25.160 Enforcement- action to collect 3.25.170 Apportionment 3.25.180 Constitutionality and legality 3.25.190 Audit and examination of premises and records 3.25.200 Other licenses, permits, taxes, fees or charges 3.25.210 Payment of tax does not authorize unlawful business 3.25.220 Deficiency determinations 3.25.230 Failure to report - nonpayment, fraud 3.25.240 Tax assessment -notice requirements ORDINANCE NO. 3.25.250 Tax assessment - hearing, application, and determination 3.25.260 Relief from taxes—disaster relief 3.25.270 Conviction for violation- taxes not waived 3.25.280 Severability 3.25.290 Remedies cumulative 3.25.300 Amendment or modification 3.25.010 Title. This Ordinance shall be known as the Cannabis Business Tax Ordinance. 3.25.020 Authority and Purpose. The purpose of this Ordinance is to adopt a general tax, pursuant to Sections 37101 and 37100.5 of the California Government Code, upon Cannabis Commercial Businesses that engage in business in the City of Huntington Beach ("City"), the Cannabis Business Tax is levied based upon business Gross Receipts. The Cannabis Business Tax is not a sales and use tax, a tax upon income, or a tax upon real property. The Cannabis Business Tax is a general tax enacted solely for general, governmental purposes of the City and not for specific purposes. All of the proceeds from the tax imposed by this section shall be placed in the City's General Fund and be available for any lawful municipal purpose. 3.25.030 Intent. The intent of this Ordinance is to levy a tax on all Cannabis Businesses operating in the City, regardless of whether conducting such business would have been legal at the time this section was adopted. Nothing in this section shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken. 3.25.40 Definitions. The following words and phrases shall have the meanings set forth below when used in this section: "Business" shall include all activities engaged in, or caused to be engaged in, within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an Employee to his or her employer. "Calendar year" means January 1 through December 31 of the same year. "Cannabis" means all parts of the plant Cannabis Sativa Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds thereof, the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from Cannabis. "Cannabis" shall 2 22-1 1 5 82/2877 1 0 ORDINANCE NO. _ not include "industrial hemp," unless otherwise specified. "Cannabis Business" means any Business activity involving Cannabis or Cannabis Products. "Cannabis Business Tax" or "Business Tax," means the taxes due pursuant to this chapter for engaging in a Cannabis Business in the City. "Cannabis Product" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. "Cannabis product" also means Cannabis Products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medicinal Cannabis Products. "City" means the City of Huntington Beach. "Commercial Cannabis Cultivation" means cultivation of Cannabis undertaken in the course of conducting a Cannabis Business. "Commercial Cannabis Permit" means a permit issued by the City to a person authorizing that person to operate a Cannabis Business or engage in business as a Cannabis Business within the City. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis and includes, but is not limited to, the operation of an indoor, outdoor, mixed light, or nursery. All outdoor or mixed light cultivation shall be prohibited in the City. "Distribution" means business activities including the procurement, sale, and transport of Cannabis and Cannabis Products between other licensed Cannabis Businesses. "Employee" means each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation. "Engaged in business as a Cannabis Business" means the commencing, conducting, operating, managing or carrying on of a Cannabis Business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person shall be deemed engaged in business within the City if: 1. Such person or person's employee maintains a fixed place of business within the City for the benefit or partial benefit of such person; 2. Such person or person's employee owns or leases real property within the City for business purposes; 3 22-1 1 582/2877 1 0 ORDINANCE NO. _ 3. Such person or person's employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business; 4. Such person or person's employee regularly conducts solicitation of business within the City; or 5. Such person or person's employee performs work or renders services in the City. The foregoing specified activities shall not be a limitation on the meaning of"engaged in business." "Evidence of doing business" means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a Cannabis Business in the City. "Gross Receipts," except as otherwise specifically provided herein, means, whether designated a sales price, royalty, rent, slotting fee, commission, dividend, or other designation,the total amount(including all receipts, cash, credits, services and property of any kind or nature) received or payable for sales of goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. Notwithstanding the foregoing,the following shall be excluded from Gross Receipts: 1. Cash discounts where allowed and taken on sales; 2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; 3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts; 4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer's business; 5. Cash value of sales,trades or transactions between departments or units of the same business located in the City, or if authorized by the Tax Administrator in writing in accordance with section 3.25.140 (B); 6. Whenever there are included within the gross receipts amounts that reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year,those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of 4 22-1 1 5 82/2 877 1 0 ORDINANCE NO. such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; 7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; 8. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. Such agents or trustees must provide the City's Tax Administrator with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees. 9. Retail sales of t-shirts, sweaters ,hats, stickers, key chains, bags, books, posters, rolling papers, Cannabis accessories such as pipes, pipe screens, vape pen batteries (without Cannabis or industrial hemp) or other personal tangible property which the Tax Administrator has excluded in writing by issuing an administrative ruling per Section 3.25.140 shall not be subject to the Cannabis Business tax under this section. "Indoor Cultivation" means the cultivation of Cannabis inside a permanent enclosed building or structure. "Manufacturing" means the production, preparation,propagation, or compounding of Cannabis or Cannabis Products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages Cannabis or Cannabis Products or labels or relabels their containers. "Person" means an individual, firm, partnership,joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number. "Processing" means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis, industrial hemp and non-manufactured Cannabis Products. "Retail, Retailer, or Retail Facility" means a licensed premises where Cannabis, Cannabis Products, or devices for the use of Cannabis or Cannabis Products are offered, either individually or in any combination for retail sale, including an establishment that delivers Cannabis or Cannabis Products as part of a Retail sale. "Sale," "sell" and "to sell" means and includes any sale, exchange, or barter. It shall also mean any transaction whereby, for any consideration,title to Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products are transferred from one person to another and includes the delivery of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products pursuant to an order placed for the purchase of the 5 22-1 1 582/2877 1 0 ORDINANCE NO. _ same, but does not include the return of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products to the licensee from whom the Cannabis, Cannabis Products, industrial hemp and/or industrial hemp product was purchased. "State" means the State of California. "State license," "license," or "registration" means a State license issued pursuant to California Business &Professions Code Section 26050, and all other applicable State laws, required for operating a Cannabis Business. "Tax Administrator" means the City Manager of the City of Huntington Beach or his or her designee. "Testing Laboratory" means a Cannabis Business that (i) offers or performs tests of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products, (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the Cannabis industry in the State, and (v) is licensed by the California Department of Cannabis Control or other State agency required by law. 3.25.50 Tax Imposed. A. There is imposed upon each person who is engaged in business as a Cannabis Business Tax. Such tax is payable regardless of whether the business has been issued a Commercial Cannabis Permit to operate lawfully in the City or is operating unlawfully. The City's acceptance of a Cannabis Business Tax payment from a Cannabis Business operating illegally shall not constitute the City's approval or consent to such illegal operations. B. Pursuant to State law, the City Council may, by Resolution or Ordinance, set, increase or decrease the rate of the Cannabis Business Tax, including the initial rate of Cannabis Business Tax, within the minimum and maximum prescribed range of tax rates, and establish a class of persons that is exempt or excepted from the tax or discontinue any such exemption or exception. Notwithstanding the foregoing, in no event shall the City Council repeal this tax, or set any adjusted rate that is less than the minimum rate, nor that exceeds the maximum rates calculated pursuant to this section. C. The minimum and maximum rate of the Cannabis Business Tax shall be calculated as follows: I. Every person engaged in Retail sales of Cannabis and/or Cannabis Products, including as a Retailer(dispensary) or non-storefront Retailer (Retail delivery business) shall be subject to up to a maximum tax rate not to exceed six percent (6%) of Gross Receipts. 2. Every person engaged in the Indoor Cultivation for Cannabis shall be subject up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 6 22-11582/287710 ORDINANCE NO. 3. Every person engaged in the operation of a Testing Laboratory for Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 4. Every person engaged in Distribution of Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 5. Every person engaged in Manufacturing or Processing of Cannabis and/or Cannabis Products, or any other type of Cannabis business not described in Section 3.25.050 (C) (1), (2), (3), or (4) shall be subject to up to a maximum tax rate not to exceed one percent(1%) of Gross Receipts. Persons subject to the Cannabis Business Tax shall register with the City and pay any fees established by the City Council. Such fees shall not exceed the cost of providing the service and not be considered as a tax and may be adjusted from time to time to recover related costs by Resolution of the City Council. 3.25.60 Reporting and remittance of tax. A. The Cannabis Business Tax imposed by this section shall be paid, in arrears, on a monthly basis. Each person owing a Cannabis Business Tax each calendar month shall, no later than the last day of the month following the close of the calendar month, file with the Tax Administrator a statement ('Tax Statement") of the tax owed for that calendar month and the basis for calculating that tax. The Tax Statement is required to be submitted on a form prescribed by the Tax Administrator. The Cannabis Business Tax for each calendar month shall be due and payable on that same date that the Tax Statement for the calendar month is due. B. Upon cessation of a Cannabis Business, Tax Statements and Cannabis tax payments shall be immediately due for all calendar months up to and including the calendar month during which cessation occurred. C. The Tax Administrator may, at his or her discretion, establish alternative reporting and payment periods for any taxpayer as the Tax Administrator deems necessary to ensure efficient and effective collection of the Cannabis Business Tax, but no less frequently than quarterly. The Tax Administrator may also require that a deposit, to be applied against the Cannabis Business Taxes due for a calendar month, be made by a taxpayer at the beginning of that calendar month. In no event shall the deposit required by the Tax Administrator exceed the Cannabis Business Tax amount he or she projects will be owed, in his or her judgment, by the taxpayer for the calendar month. The Tax Administrator may require that a taxpayer make Cannabis Tax payments via a cashier's check, money order, wire transfer, or similar instrument. 3.25.070 Payments and communications - timely remittance. Whenever any Cannabis Tax payment, statement, report, request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not 7 22-11582/287710 ORDINANCE NO. _ be accepted as timely remittance. If the due date would fall on a Saturday, Sunday, or a holiday observed by the City, the due date shall be the last business day of the month following the close of the calendar month which the City is open to the public. 3.25.080 Payment when taxes deemed delinquent. Unless otherwise specifically provided under other provisions of this section, the Cannabis Business Taxes required to be paid pursuant to this section shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 3.25.060 and/or 3.25.070. 3.25.090 Notice not required by the City. The City may as a courtesy send a tax notice to the Cannabis Business which owes the City a Cannabis Business Tax. However, the Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this section. Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this section. 3.25.100 Penalties and interest. Any person who fails or refuses to pay any Cannabis Business Tax required to be paid pursuant to this section on or before the due date shall pay penalties and interest as follows: A penalty equal to ten percent (10%) of the amount of the tax due, in addition to the amount of the tax due, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent (1.0%) per month. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the tax, plus interest at the rate of one percent (1.0%) per month on the unpaid tax and on the unpaid penalties. Interest shall be applied at the rate of one percent (1.0%) per month on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full. Whenever a check or electronic payment is submitted in payment of a Cannabis Business Tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees,penalties and interest as provided for in this section, and any other amount allowed under State law. The City may revoke or refuse to renew the license required by Section 3.25.030 for any business that is delinquent in the payment of any tax due pursuant to this section or that fails to make additional fee payments required by the City. 8 22-1 1 5 82/2 8 77 1 0 ORDINANCE NO. 3.25.110 Refunds and credits. A. No refund shall be made of any tax collected pursuant to this section, except as provided in Section 3.25.120. B. No refund of any Cannabis Business Tax collected pursuant to this section shall be made because of the discontinuation, dissolution, or other termination of a business. 3.25.120 Refunds and procedures. A. Whenever the amount of any Cannabis Business Tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this section, it may be refunded to the claimant who paid the tax provided that a written claim for refund is filed with the Tax Administrator within one (1) year of the date the tax was originally due or paid, whichever came first. B. The Tax Administrator, his or her designee, or any other City officer charged with the administration of this section shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so. C. In the event that the Cannabis Business Tax was erroneously paid in an amount in excess of the tax due, and the error is attributable to the City, the City shall refund the amount of tax erroneously paid; provided that (i) a claim for refund has been timely filed with the Tax Administrator; and (ii)the refund cannot exceed, under any circumstance, the amount of tax overpaid during the twelve months preceding the last month for which the claim states the tax was overpaid. 3.25.130 Personal cultivation not taxed. The provisions of this section shall not apply to personal Cannabis cultivation or personal use of Cannabis, to the extent those activities are authorized in the States Medicinal and Adult Use Cannabis Regulation and Safety Act," as may be amended. This section shall not apply to personal use of Cannabis that is specifically exempted from State licensing requirements, that meets the definition of personal use or equivalent terminology under State law, and provided that the individual receives no compensation whatsoever related to that personal Cultivation or use. 3.25.140 Administration of the tax. A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this section. B. For purposes of administration and enforcement of this section generally, the Tax Administrator may from time to time promulgate such administrative interpretations, rules and/or procedures consistent with the purpose, intent and express terms of this section as he or she deems necessary to implement or clarify such provisions or aid in 9 22-11582/287710 ORDINANCE NO. enforcement. C. The Tax Administrator may take such administrative actions as needed to administer the Cannabis Business Tax, including but not limited to: 1. Provide to all Cannabis Business taxpayers forms for the reporting of the tax; 2. Provide information to any taxpayer concerning the provisions of this section; 3. Receive and record all taxes remitted to the City as provided in this section; 4. Maintain records of taxpayer reports and taxes collected pursuant to this section; 5. Assess penalties and interest to taxpayers pursuant to this section; 6. Determine amounts owed under and enforce collection pursuant to this section. 3.25.150 Appeal procedure. Any taxpayer aggrieved by any decision of the Tax Administrator with respect to the amount of tax, interest,penalties and fees, if any, due under this section may appeal to the City Council by filing a notice of appeal with the City Clerk within thirty (30) calendar days of the serving or mailing of the Tax Administrator's determination of the amount due. The City Clerk, or his or her designee, shall fix a time and place for hearing such appeal, and the City Clerk, or his or her designee, shall give notice in writing to such operator at the last known place of address. The finding of the City Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed by this section 3.25.150 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of the notice. 3.25.160 Enforcement - action to collect. Any taxes, penalties and/or fees required to be paid under the provisions of this section shall be deemed a debt owed to the City. Any person owing money to the City under the provisions of this section shall be liable in an action brought in the name of the City for the recovery of such debt. The provisions of this section shall not be deemed a limitation upon the right of the City to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the Cannabis Business Tax, penalties and/or fees imposed by this section, or the failure to comply with any of the provisions of this section. 3.25.170 Apportionment. If a business subject to the Cannabis Business Tax is operating both within and outside the City, it is the intent of the City to apply the Cannabis Business Tax so that the Measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the City. To the extent Federal or State law requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment on his or her tax return. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary. 10 22-1 1 582/2877 1 0 ORDINANCE NO. 3.25.180 Constitutionality and legality. The Cannabis Business Tax is intended to be applied in a manner consistent with the United States and California Constitutions and State law. None of the tax provided for by this section shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State of California, or a violation of any other provision of the California Constitution or State law. If a person believes that the tax, as applied to him or her, is impermissible under applicable law, he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the tax. 3.30.190 Audit and examination of premises and records. A. For the purpose of ascertaining the amount of Cannabis Business Tax owed or verification any representations made by any taxpayer to the City in support of his or her tax calculation, the Tax Administrator shall have the power to inspect any location where commercial Cannabis Cultivation occurs and to audit and examine all books and records (including, but not limited to bookkeeping records, State and Federal income tax returns, and other records relating to the Gross Receipts of the business) of persons engaged in Cannabis Businesses in the City. In conducting such investigation,the Tax Administrator shall have the power to inspect any equipment, such as but not limited to computers or point of sale machines, that may contain such records. B. It shall be the duty of every person liable for the collection and payment to the City of any Cannabis Business Tax imposed by this section to keep and preserve, for a period of at least three (3)years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Tax Administrator or his/her designee shall have the right to inspect at all reasonable times. C. Should the Tax Administrator be required to perform an audit of the records of any Cannabis Business for failure to timely or accurately report Cannabis Business Taxes pursuant to sections 3.25.060 and/or 3.25.070, the entire cost of the audit shall be assessed against the operator. 3.25.200 Other licenses, permits, taxes, fees or charges. A. Nothing contained in this section shall be deemed to create, replace, amend, repeal or be in lieu of, or in any way affect any requirements for, any Commercial Cannabis Permit or License the City may require for any purpose. In addition, nothing contained in this section shall be deemed to create, replace, amend, repeal or be in lieu of, or in any way affect any requirements for, any tax, fee or other charge imposed, assessed or required under any other Chapter of this code or any other Ordinance or Resolution of the City. 3.25.210 Payment of tax does not authorize unlawful business. A. The payment of a Cannabis Business Tax required by this section, and its acceptance by the City, shall not entitle any person to carry on any Cannabis Business 11 22-1 1 5 82/28 77 1 0 ORDINANCE NO. unless the person has complied with all of the requirements of this code and all other applicable State laws. B. No tax paid under the provisions of this section shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law. 3.25.220 Deficiency determinations. If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this section is correct, or that the amount of Cannabis Business Tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three (3) years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a Cannabis Business, a deficiency determination may be made at any time within three (3) years thereafter as to any liability arising from engaging in such Cannabis Business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Section 3.25.240. 3.25.230 Failure to report - nonpayment, fraud. A. Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of Cannabis Business Tax owed by a person under this section at any time: 1. If the person has not filed a complete statement required under the provisions of this section; 2. If the person has not paid the tax due under the provisions of this section; 3. If the person has not, after demand by the Tax Administrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this section; or 4. If the Tax Administrator determines that the nonpayment of any Cannabis Business Tax due under this section is due to fraud, a penalty of twenty- five percent (25%) of the amount of the tax shall be added thereto in addition to penalties and interest otherwise payable under this section and any other penalties allowed by law. B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable 12 22-11582/287710 ORDINANCE NO. provision of this section and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. 3.25.240 Tax assessment- notice requirements. The notice of assessment shall be served upon the person either by personal delivery, by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this section; or, should the person have no address registered with the Tax Administrator for such purpose,then to such person's last known address. For the purpose of Section 3.25.240 , a service by overnight delivery shall be deemed to have occurred one (1) calendar day following deposit with a courier and service by mail shall be deemed to have occurred three (3) days following deposit in the United States mail. 3.25.250 Tax assessment hearing, application and determination. Within thirty (30) calendar days after the date of service of the notice of assessment the person may apply in writing to the Tax Administrator for a hearing on the assessment. If application for a hearing before the City is not made within the time herein prescribed, the Cannabis Business Tax assessed by the Tax Administrator shall become final and conclusive. Within thirty (30) calendar days of the receipt of any such application for hearing,the Tax Administrator shall cause the matter to be set for hearing before him or her no later than thirty (30) calendar days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Tax Administrator to the person requesting such hearing not later than five (5) calendar days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator shall determine and reassess (if necessary) the proper tax to be charged and shall give written notice to the person in the manner prescribed in Section 3.25.240 for giving notice of assessment. 3.25.260 Relief from taxes - disaster relief. A. If a Cannabis Business is unable to comply with any tax requirement imposed under this section due to a disaster, the business may notify the Tax Administrator of its inability to comply and request relief from the tax requirement. For purposes of this section, "disaster' means fire, flood, storm, tidal wave, earthquake, or similar public calamity, whether or not resulting from natural causes. B. The Cannabis Business shall provide any information required by the Tax Administrator including, without limitation, why relief is requested, the time period for which the relief is requested, and the reason relief is needed for the specific amount of time. The Cannabis Business agrees to grant the Tax Administrator or his/her designee access to the location where the Cannabis Business has been impacted due to a disaster. 13 22-1 1 5 8 2/2 877 1 0 ORDINANCE NO. C. The Tax Administrator, in his/her sole discretion, may provide relief from the Cannabis Business Tax requirement for businesses whose operations have been impacted by a disaster if such tax relief does not exceed fifteen thousand ($15,000) dollars. Such temporary relief may be granted for a reasonable amount of time, in the Tax Administrator's sole discretion, and the amount and duration of relief should be based upon how long it would reasonably take for the Cannabis Business to recover from the disaster. Further, the Tax Administrator may require that the Cannabis Business follow certain conditions to receive temporary relief from the Cannabis Business ax requirement. 3.25.270 Conviction for violation -taxes not waived. The conviction and punishment of any person for failure to pay the required Cannabis Business Tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this section or of any State law requiring the payment of all taxes. Any person violating any of the provisions of this section shall be guilty of a misdemeanor. 3.25.280 Severability. If any provision of this section, or its application to any person or circumstance, is determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this section or the application of this section to any other person or circumstance and, to that end, the provisions hereof are severable. 3.25.290 Remedies cumulative.. All remedies and penalties prescribed by this section or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this section. 3.25.300 Amendment or modification. Except as set forth in this section 3.25.310,this section may be amended or modified but not repealed by the City Council without a vote of the people. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would expand, extend, or increase the rate of any tax levied pursuant to this section. The people of the City of Huntington Beach affirm that the following actions shall not constitute an increase of the rate of a tax: A. The restoration or adjustment of the rate of the tax to a rate that is neither less nor higher than that allowed by this chapter, in those circumstances where, among others,the City Council has previously acted to reduce or increase the rate of the tax within the allowed range or is incrementally implementing an increase authorized by this chapter; B. An action that interprets or clarifies (i)the methodology of applying or calculating the Cannabis Business Tax or(ii) any definition applicable to the tax, so long as the interpretation or clarification(even if contrary to some prior interpretation or 14 22-1 1 5 82/2877 1 0 ORDINANCE NO. clarification) is not inconsistent with the provisions of this Chapter 3.25; or C. The collection of the tax imposed by this section even if the City had, for some period of time, failed to collect the tax. f SECTION 2. Pursuant to Article XIII B of the California Constitution,the appropriation limit for the City of Huntington Beach will be increased by the maximum projected aggregate collection authorized by the levy of this general tax, as indicated in Section 1, in each of the years covered by this Ordinance plus the amount, if any, by which the appropriation limit is decreased by law as a result of the levy of the general tax set forth in this Ordinance. SECTION 3. If any portion of this Ordinance is declared invalid by a court of law or other legal body with applicable authority, the invalidity shall not affect or prohibit the force and effect of any other provision or application of the Ordinance that is not deemed invalid. The voters of the City hereby declare that they would have circulated for qualification and/or voted for the adoption of this Section, and each portion thereof, regardless of the fact that any portion of the initiative may be subsequently deemed invalid. SECTION 4. Pursuant to California Constitution Article XIIIC §(2)(b) and California Elections Code §9217,this Ordinance shall take effect only if approved by a majority of the eligible voters of the City of Huntington Beach voting at the General Municipal Election to be held on November 8, 2022, and shall take effect ten (10) days after the City Council has certified the results of the General Municipal Election by Resolution. SECTION 5. This order shall take effect according to law ten days after certification of the election at which it is adopted. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2022. Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: City Manager Assistant City Manager 15 22-11582/287710 Res. No. 2022-49 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on July 19, 2022 by the following vote: AYES: Bolton, Delgleize, Carr, Moser, Kalmick NOES: Peterson, Posey ABSENT: None RECUSE: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California RESOLUTION NO. 2022-46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS AND IMPARTIAL ANALYSES CONCERNING TAXATION OF COMMERCIAL CANNABIS BUSINESSES WITHIN THE CITY OF HUNTINGTON BEACH WHEREAS, a General Municipal Election is to be held in the City of Huntington Beach, California, on November 8, 2022, at which there will be submitted to the voters three ballot Measures related to amendments to the City Charter and one ballot Measure concerning the taxation of Commercial Cannabis Businesses; and The City Council wishes to authorize arguments in favor of and in opposition to this Measure and authorize the preparation of impartial analyses of this Measure, NOW, THEREFORE, the City Council of the City of Huntington Beach, California, does hereby resolve, declare, determine and order as follows: SECTION 1. That with respect to the Measure entitled: Measure : Taxation of Commercial Cannabis Businesses YES "Shall the City adopt an Ordinance that taxes cannabis businesses up to 6% of gross receipts for retailers and up to 1% of gross receipts for all other cannabis businesses if they were to be permitted in the City; which is expected to generate an estimated $300,000 to $600,000 annually to fund general No municipal services for Huntington Beach and will be levied until repealed by the voters?" a. That the City Council authorizes the following member(s) of its body: Rhonda Bolton (Councilmembe In Favo Against) Kim Carr (Councilmembe n avo Against) Dan Kalmick (Councihn(,-mber avo /Against) (Councilmember In avor/Against) (Councilmember In Favor/Against) RESOLUTION NO. 2022-46 to file a written argument regarding the Measure as specified above in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California and to change the argument until and including the date fixed by the City Clerk after which no arguments for or against the Measure may be submitted to the City Clerk. Said argument to be accompanied by the printed name(s) and signature(s) of the authors(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers. b. That the City Council directs the City Clerk to transmit a copy of the Measure to the City Attorney to prepare an impartial analysis of the Measure not exceeding 500 words showing the effect of the Measure on the existing law and the operation of the Measure. C. The analysis shall include a statement indicating the Measure was placed on the ballot by the governing body of the City. d. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information portion of the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point type, the following: "The above statement is an impartial analysis of Municipal Code Amendment Measure. If you desire a copy of the Ordinance or Measure, please call the election official's office at 714-536-5405 and a copy will be emailed at no cost to you." e. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. 2 22-11582/287895 RESOLUTION NO. 2022-46 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19th day of July, Mayor REVIEWED AND APP QVED: APPROVED AS TO FORM: City Man a rty ttorney ►tiW ITIATED AND APPROVED: Assistant City Manag e 3 22-11582/287895 Res. No. 2022-46 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on July 19, 2022 by the following vote: AYES: Bolton, Delgleize, Carr, Moser, Kalmick NOES: Peterson, Posey ABSENT: None RECUSE: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California RESOLUTION NO. 2022-47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY CANNABIS TAXATION MEASURE SUBMITTED AT MUNICIPAL ELECTIONS WHEREAS, Section 9282 of the Elections Code of the State of California provides for written arguments to be filed in favor of or against City Measures not to exceed 300 words in length; and WHEREAS, Section 9285 of the Elections Code of the State of California authorizes the City Council, by majority vote, to adopt provisions to provide for the filing of rebuttal arguments for City Measures submitted at municipal elections; NOW, THEREFORE, The City Council of the City of Huntington Beach, California, does resolve, declare, determine and order as follows: SECTION 1. That pursuant to Section 9285 of the Elections Code of the State of California, when the elections official has selected the arguments for and against each Measure (not exceeding 300 words each) which will be printed and distributed to the voters, the elections official shall send a copy of an argument in favor of the proposition to the authors of any argument against the Measure and a copy of an argument against the Measure to the authors of any argument in favor of the Measure immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a City Measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit,or sign the rebuttal argument. A rebuttal argument shall not be signed by more than the number of signors of the direct argument,not to exceed five authors. The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the RESOLUTION NO. 2022-47 name of the organization,and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. SECTION 2. That all previous Resolutions providing for the filing of rebuttal arguments for City Measures are repealed. SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19th day of July 20 22 bc�� "/�, Mayor r. REVIEW D A ARPI OVED: APPROVED AS TO FORM: City Manager 7TTTATFD torney AND APPROVED: C Assistant City Manage 2 22-11582/288056 Res. No. 2022-47 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on July 19, 2022 by the following vote: AYES: Bolton, Delgleize, Carr, Moser, Kalmick NOES: Peterson, Posey ABSENT: None RECUSE: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California RESOLUTION NO. 2022-47 r` A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGT,6N BEACH, CALIFORNIA, PROVIDING FOR THE FILING OF REBTTAL ARGUMENTS FOR CITY CANNABIS PEG TAXATION MEASURES SUBMITTED AT MUNICIPAL ELECTIONS WHEREAS, Section 9282 of the Elections Code of the State pfrCalifornia provides for I' f written arguments to be filed in favor of or against City Measurei not to exceed 300 words in length; and y WHEREAS, Section 9285 of the Elections Code orfthe State of California authorizes the City Council, by majority vote, to adopt provisions to�p*'rovide for the filing of rebuttal arguments J for City Measures submitted at municipal electiong° NOW, THEREFORE, The City Council of the City of Huntington Beach, California, does resolve, declare, determine and order as jfolfows: SECTION 1. That pursuant t�3 Section 9285 of the Elections Code of the State of A� California, when the elections offjovial has selected the arguments for and against each Measure (not exceeding 300 words each)4which will be printed and distributed to the voters, the elections e official shall send a copy of an argument in favor of the proposition to the authors of any argument r against the Measure and a'copy of an argument against the Measure to the authors of any argument in favor of the Meas . e immediately upon receiving the arguments. The autho or a majority of the authors of an argument relating to a City Measure may prepare and s mit a rebuttal argument not exceeding 250 words or may authorize in writing any other pe or persons to prepare, submit,or sign the rebuttal argument. A rebuttal argument shall not be sig�ried by more than the number of signors of the direct argument,not to exceed five authors. i The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) d signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the RESOLUTION NO. 2022-47 1 name of the organization,and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argumprit. Rebuttal arguments shall be printed in the same manner as the direct gguments. Each. rebuttal argument shall immediately follow the direct argument which it seeks to rebut. SECTION 2. That all previous Resolutions providing for the filing of rebuttal arguments for City Measures are repealed. SECTION 3. That the City Clerk.shall certify to the ,l3ssage and adoption of this Resolution and enter it into the book of original Resolutions. f PASSED AND ADOPTED by the City If uncil of the City of Huntington Beach at a regular meeting thereof held on the_ ,,day of 20 F Mayor J, REVIEWED AND APPROVED: APPROVED AS TO FORM: r,- r City Manager City Attorney r ' INITIATED AND APPROVED- r' Assistant City Manager r` f Y¢ p � 2 22-11582/287644 °A TRIT N BEACH CITY OF HUNTING O LjInter-Office Memo TO: Robin Estanislau, City Clerk FROM: Travis Hopkins, Assistant City ManagerG'�`� �� CC: Michael Gates, City Attorney; Mike Vigliotta, Chief Assistant City Attorney DATE: July 19, 2022 SUBJECT: Supplemental Communication Re: City Council Meeting Item # 22-601 In the event that Council votes only on the cannabis business taxation ballot measure, not both regulation and taxation ballot measures, at tonight's Council meeting, we would like to submit separate resolutions as additional supplemental communication. Please see attached. These will be replaced to Resolution Nos. 2022-46, 2022-48, 2022- 49. Thank you. SUPPLEMENTAL COMMUNICATION Meetlrig Date: ? 9 20 Agenda rem No., �/ �3- CEO(�„ RESOLUTION NO. 2022-46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, SETTING PRIORITIES FOR FILING WRITTEN.-` ARGUMENTS AND IMPARTIAL ANALYSES CONCERNING REGULATIQfV AND TAXATION OF COMMERCIAL CANNABIS BUSINESSES WITHIN THE CITY OF HUNTINGTON BEACH WHEREAS, a General Municipal Election is to be held in the City,of Huntington Beach, California, on November 8, 2022, at which there will be submitted'to the voters three ballot Measures related to amendments to the City Charter and 2 .ballot Measures concerning the regulation and taxation of Commercial Cannabis Businesses;and The City Council wishes to authorize arguments in favor of and in opposition to these Measures and authorize the preparation of impartial analyses of these Measures, NOW, THEREFORE, the City Council of the City of Huntington Beach, California, does hereby resolve, declare, determine and order as follows: SECTION 1. That with respect to the Measure entitled: Measure Advisory Measure Concerning Regulation of Commercial Cannabis Businesses YES "Shall thity of Huntington Beach repeal the City's current ban on commercial cannabis businesses and allow a limited number of cannabis retailers and non-retailers to operate only in permitted areas of Huntington Beach, subject to business No and land use regulations by City Council?" a That the City Council authorizes the following member(s) of its body: (Councilmember In Favor/Against) (Councilmember In Favor/Against) (Councilmember In Favor/Against) (Councilmember In Favor/Against) r (Councilmember In Favor/Against) RESOLUTION NO. 2022-46 to file a written argument regarding the Measure as specified above in accordance with Article,4; Chapter 3, Division 9 of the Elections Code of the State of California and to change the argument until and including the date fixed by the City Clerk after which no arguments for or'against the Measure may be submitted to the City Clerk. Said argument to be accompanied by the printed name(s) and signature(s) of the authors(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers. b. That the City Council directs the City Clerk to,transmit a copy of the Measure to the City Attorney to prepare an impartial analysis of the Measure not exceeding 500 words showing the effect of the Measure on the existing law.and the operation of the Measure. C. The analysis shall include a statement indicating the Measure was placed on the ballot by the governing body of the City. d. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. f, SECTION 2. That with respect to the Measure entitled: Measure Taxation of Commercial Cannabis Businesses YES "Shall the ,City adopt an Ordinance that taxes cannabis businesses`dp to 6% of gross receipts for retailers and up to 1% of gross receipts for all other cannabis businesses if they were to be permitted in the City; which is expected to generate an estimated $300,000 to $600,000 annually to fund general No municipal services for Huntington Beach and will be levied until repealed by the voters?" 2 22-11582/287590 RESOLUTION NO. 2022-46 a. That the City Council authorizes the following member(s) of its body: (Councilmember In Favor/Against) (Councilmember In Favor/Against) (Councilmember In Favor/Against) (Councilmember In-Favor/Against) (Councilmember In Favor/Against) to file a written argument regarding the Measure as specified above in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California and to change the argument until and including the date fixed by the City Clerk after which no arguments for or against the Measure may be submitted to the City Clerk. Said argument to be accompanied by the printed name(s) and signature(s) of the authors(s) submitting it, or if submitted on behalf of an organization,the name of the organization, and the printed name and signature of at least one of its principal officers. b. That the City Council.directs the City Clerk to transmit a copy of the Measure to the City Attorney to prepare an impartial analysis of the Measure not exceeding 500 words showing the effect of the Measure on the existing law and the operation of the Measure. C. The analysis shall include a statement indicating the Measure was placed on the ballot by the governi4g body of the City. d. In s e.event the entire text of the Measure is not printed on the ballot, nor in the voter informatibn portion of the voter information guide, there shall be printed immediately below the iphpartial analysis, in no less than 10-point type, the following: "The above statement is an impartial analysis of Municipal Code Amendment Measure. If you desire a copy of the Ordinance or Measure, please call the election official's office at 714-536-5405 and a copy will be/emailed at no cost to you." 0 3 22-11582/287590 RESOLUTION NO. 2022-46 e. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. SECTION 3. That the City Clerk shall certify to the passage and adoption,d ithis Resolution and enter it into the book of original Resolutions. , PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19"' day of July, 2022. Jl Mayor; REVIEWED AND APPROVED: APPROVED AS TO FORM: fi City Manager ` City Attorney INITIATED AND APPROVED: f; ;f Assistant City Manager f 3' t ;r d i xt 1 yP 4 r 22-11582/287590 t RESOLUTION NO. 2022-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A GENERAL TAX MEASURE FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF A PROPOSED ORDINANCE ADDING CHAPTER 3.25 TO TITLE 3 OF THE HUNTINGTON BEACH MUNICIPAL CODE, ESTABLISHING A GENERAL TAX ON CANNABIS BUSINESSES OPERATING WITHIN THE CITY OF HUNTINGTON BEACH AND AN ADVISORY MEASURE REGARDING THE REGULATION`OF COMMERCIAL CANNABIS BUSINESSES AT THE GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, AS CALLED BY RESOLUTION NO. 2022-39 WHEREAS, a General Election on Tuesday, Noyember 8, 2022 has been called by Resolution No. 2022-39, adopted on July, 5, 2022; and fd l r WHEREAS, the City Council desires to submit to the voters at the election additional r S Measures relating to the regulation and taxation pf Commercial Cannabis Businesses; WHEREAS,pursuant to California"Government Code sections 37100.5 and 37101, the City of Huntington Beach has the auth9rity to establish a local business tax upon Commercial Cannabis Businesses that engage in b siness in the City; and WHEREAS, the City 00uncil desires to submit to the voters a General Tax Measure with an Ordinance establishing both(i) a not-to-exceed rate of 6% local general tax on the Gross Receipts received by any 11aannabis retail business and (ii) a not-to-exceed rate of 1% local general tax on any other cannabis business, including but not limited to indoor cultivation, manufacturing, testing laboratory, and distribution; and WHEREAS, the proposed Cannabis Business Tax is a general tax, the proceeds of which would be deposited into the City's general fund for general municipal services to the public; and 61 RESOLUTION NO. 2022-48 WHEREAS, on November 6, 1996, the voters of the State of California approved Proposition 218 (California Constitution, Article XIIIC), an amendment to the State Constitution which requires that all general taxes which are imposed, extended or increased must be submitted to the electorate and approved by a majority vote of the qualified electors voting in the election; and WHEREAS, the proposed Ordinance would establish a general tax which is subject to Proposition 218; and WHEREAS,pursuant to Proposition 218 (California Constitution Article XIIIC, §2(b)), the general rule is that any local election for the approval of a'general tax must be consolidated with a regularly scheduled general election for members f of the governing body of the local r government; and J WHEREAS, pursuant to Proposition 62 and Government Code Section 53724, an Ordinance or Resolution proposing a generalstax must be approved by a two-thirds vote of all members of the legislative body of the local government prior to being submitted to the voters; and f� WHEREAS, the specific terms relating to the Cannabis Business Tax Measure are f, fi provided for in the Ordinance ko be considered by the qualified voters, attached hereto as Exhibit A (the "Ordinance" or asure") and by this reference made an operative part hereof, and in r accordance with all appSlcable laws. NOW, AEREFORE, the City Council of the City of Huntington Beach, California, does hereby regolve, declare, determine and order as follows: ECTION 1. Recitals. The City Council hereby finds and determines that the foregoing recita rue and correct, are incorporated herein and by this reference made an operative part 2 22-11582/287611 62 RESOLUTION NO. 2022-48 hereof. SECTION 2. That the City Council, pursuant to its right and authority in part, as contained in California Constitution and Elections Code, does order submitted to the voters at the General Municipal Election the following Advisory question: f . Measure Advisory Measure Concerning Regulation of Commercial Cannabis Businesses YES k "Shall the City of Huntington Beach repeal the City's,current ban on commercial cannabis businesses and allow a4imited number of cannabis retailers and non-retailers toFoperate only in permitted areas of Huntington Beach, subje_q'io business No and land use regulations by City Council?" i A SECTION 3. Submission of Ballot Me sure Ordinance. The City Council of the City, e pursuant to its right and authority as contained ' California Propositions 218 and 62, Government Code section 53724, and Elections Code se ion 9222,hereby orders the Ordinance attached hereto as Exhibit A to be submitted to the quAified voters of the City at the General Municipal Election to be held on November 8, 2022. Ae proposed Ordinance shall be in the form attached hereto as Exhibit A to this Resolution a is incorporated by this reference as if fully set forth herein. SECTION 4. Ball Measure. The City Council, pursuant to its right and authority, does hereby order that the easure shall be presented and printed upon the ballot submitted to the qualified voters in e manner and form set forth in this Section 4. On the ballot to be submitted to the qualifie voters at the General Municipal Election to be held on November 8, 2022, in addition to y other matters required by law,there shall be printed substantially the following: 3 /761122-11582128 63 RESOLUTION NO. 2022-48 Measure : Taxation of Commercial Cannabis Businesses "Shall the City adopt an Ordinance that taxes cannabis YES businesses up to 6% of gross receipts for retailers and up to 1% of gross receipts for all other cannabis businesses if they were to be permitted in the City; which is expected to generate an estimated$300,000 to $600,000 annually to fund ' general municipal services for Huntington Beach and will be, ' No levied until repealed by the voters?" SECTION 5. That the proposed Measures submittec `to the voters are as follows: "Shall the City of Huntington Beach repeal t City's current ban on Commercial Cannabis Businesses and allow a limited number of ca abis retailers and non-retailers to operate only in permitted areas of Huntington Beach, subj t to business and land use regulations by City Council?" "Shall the City adopt an Ordin cc that taxes cannabis businesses up to 6% of gross receipts for retailers and up to 1% of g ss receipts for all other cannabis businesses if they were to be permitted in the City; which s expected to generate an estimated $300,000 to $600,000 annually to fund general munici 1 services for Huntington Beach and will be levied until repealed by the voters?" (Ordinance ' attached as Exhibit A.) SECTION 6. at the vote requirement for the Measures to pass is a majority (50%+1) of the votes ast. SECTI 7. That in all particulars not recited in this Resolution, the election shall be held and cond cted as provided by law for holding municipal elections. CTION 8. That notice of the time and place of holding the election is given and the City C rk is authorized,instructed and directed to give further or additional notice of the election, in t' e, form and manner as required by law. 4 22-11582/287611 64 RESOLUTION NO. 2022-48 SECTION 9. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. SECTION 10. CEQA. The City Council hereby finds and determines that the ballot Measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the A meaning of the California Environmental Quality Act("CEQA") and the Site CEQA Guidelines, section 15378(b)(5). This ballot Measure is also exempt from CEQA rp4iew pursuant to Business & Professions Code 26055(h) because any subsequent Ordinanc adopted by the City Council permitting cannabis businesses will require environmental revj w prior to any decision relating to the issuance of a permit or other authorization for the cam a is business to commence operations. PASSED AND ADOPTED by the City Co cil of the City of Huntington Beach at a regular meeting thereof held on the 19"' day o uly, 2022. Mayor REVIEWED AND APPROVE APPROVED AS TO FORM: City Manager City Attorney INITIATED AND APPROVED: Assistant City Manages S /2-11582/287611 65 EXHIBIT A COUNCIL-SPONSORED INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS The City Council for the City of Huntington Beach submits the following Measure to the voters of the City for approval and enactment: ORDINANCE NO. AN ORDINANCE OF THE PEOPLE OF THE CITY OF .I-IUNTINGTON BEACH, CALIFORNIA, ADDING CHAPTER 3.25 TO TITLE 3 OF THE HUNTINGTON BEACH MUNICIPAL CODE ESTABLISHING TAXES ON CANNABIS BUSINESSES OPERATING WITHIN' THE CITY OF HUNTINGTON BEACH P The People of the City of Huntington Beach ordaip''as follows: f; SECTION 1. Subject to the approval of a maj6rity of the voters of the City of Huntington Beach at the General Municipal Election so designated by the City Council in a separate Resolution placing the proposal on the bxflot for such election, Chapter 3.25 is hereby added to Title 3 of the Huntington Beach MuniVpal Code to read as follows: Chapter 3.25. CANNABIS BUSI /SS TAX 3,25.010 Title 3.25.020 Authori and purpose 3,25.030 Intent / 3,25.040 Defi itions 3.25.050 Ta,/imposed 3.25.060 P,kporting and remittance of tax /130Personal ayments and communications - timely remittance 0 Payment- when taxes deemed delinquent 0 Notice not required by City Penalties and interest Refunds and credits Refunds and procedures Personal cultivation not taxed Administration of the tax 0 Appeal procedure 3.25.160 Enforcement- action to collect !` 3,25.170 Apportionment 3.25.180 Constitutionality and legality 3.25.190 Audit and examination of premises and records 3.25.200 Other licenses,permits, taxes, fees or charges 3.25.210 Payment of tax does not authorize unlawful business 3,25.220 Deficiency determinations 3,25.230 Failure to report- nonpayment, fraud 3.25.240 Tax assessment-notice requirements / 66 ORDINANCE NO. _ 3,25.250 Tax assessment-hearing, application, and determination 3.25.260 Relief from taxes—disaster relief 3.25.270 Conviction for violation - taxes not waived 3.25.280 Severability 3.25.290 Remedies cumulative 3.25.300 Amendment or modification r 3.25.010 Title. This Ordinance shall be known as the Cannabis Business Tax Ordinance. 3.25.020 Authority and Purpose. �. The purpose of this Ordinance is to adopt a general tax,pursuant to/sections 37101 and 37100.5 of the California Government Code, upon Cannabis Commercialusinesses that engage in business in the City of Huntington Beach ("City"),the Cannabipl3usiness Tax is levied based upon business Gross Receipts. The Cannabis Business Tax is sot a sales and use tax, a tax upon income, or a tax upon real property. x The Cannabis Business Tax is a general tax enacted so�ly for general, governmental purposes of the City and not for specific purposes. All of the proeteds from the tax imposed by this section shall be placed in the City's General Fund and be a ilable for any lawful municipal purpose. 3.25.030 Intent. The intent of this Ordinance is to levy a tax,4 all Cannabis Businesses operating in the City, regardless of whether conducting such buiness would have been legal at the time this section was adopted. Nothing in this section sho be interpreted to authorize or permit any business activity that would not otherwise be 14al or permissible under laws applicable to the activity at the time the activity is undertaken. �f 3.25.40 Definitions. The following words and phoses shall have the meanings set forth below when used in this section: "Business" shall include all activities engaged in, or caused to be engaged in, within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the'services rendered by an Employee to his or her employer. "Calendar year" means January 1 through December 31 of the same year. "Cannabis" means all parts of the plant Cannabis Sativa Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds thereof; the resin, whether crude ,or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. "Cannabis" also means f the separated resin, whether crude or purified, obtained from Cannabis. "Cannabis" shall 2 22-1 rss2/2s7710 67 ORDINANCE NO. not include "industrial hemp," unless otherwise specified. "Cannabis Business" means any Business activity involving Cannabis or Cannabis Products. "Cannabis Business Tax" or "Business Tax," means the taxes due pursuant to this chapter for engaging in a Cannabis Business in the City. "Cannabis Product" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. "Cannabis product" also means Cannabis Products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medicinal Cannabis Products. f, E' "City" means the City of Huntington Beach. "Commercial Cannabis Cultivation" means cultivation of Cannabis undertaken in the course of conducting a Cannabis Business. "Commercial Cannabis Permit" means aA ermit issued by the City to a person authorizing that person to operate a Cannois Business or engage in business as a Cannabis Business within the City. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis and includes, but is not limited to,the operation of an indoor, outdoor, mixed light, or nursery. All outdoor or mixed light cultivation shall be prohibited in the City. "Distribution" means business activities including the procurement, sale, and transport of Cannabis and Cannaba's Products between other licensed Cannabis Businesses. "Employee" means each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation. "Engaged in business as a Cannabis Business" means the commencing, conducting, operating,,managing or carrying on of a Cannabis Business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise,whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person shall be deemed engaged in business within the City if. 1. Such person or person's employee maintains a fixed place of business within the City for the benefit or partial benefit of such person; 2. Such person or person's employee owns or leases real property within the City for business purposes; 3 22-11582/287710 68 ORDINANCE NO. 3. Such person or person's employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business; 4. Such person or person's employee regularly conducts solicitation of business within the City; or 5. Such person or person's employee performs work or renders services in the City. The foregoing specified activities shall not be a limitation on the meaning of"engaged in business." "Evidence of doing business" means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the*use of internet or telephone 'solicitation, or representation to a government agency or the public that such person is engaged in a Cannabis Business in the City. "Gross Receipts," except as otherwise specifically,provided herein, means, whether designated a sales price, royalty, rent, slotting fed;'commission, dividend, or other designation, the total amount(including all rec4ts, cash, credits, services and property of any kind or nature)received or payable fo 'sales of goods, wares or merchandise, or for the performance of any act or service o any nature for which a charge is made or credit allowed (whether such service, ac r employment is done as part of or in connection with the sale of goods, war , merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or pay#e, losses or any other expense whatsoever. Notwithstanding the foregoing,tl* following shall be excluded from Gross Receipts: f r 1. Cash discounts whereallowed and taken on sales; 2. Any tax required dry law to be included in or added to the purchase price and collected from tpe consumer or purchaser; 3. Such part of,the sale price of any property returned by purchasers to the seller as refunded bi the seller by way of cash or credit allowances or return of refundable deposits 6reviously included in gross receipts; 4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course ofthe taxpayer's business; 5. Cash value of sales, trades or transactions between departments or units of the same business located in the City, or if authorized by the Tax Administrator in writing in accordance with section 3.25.140 (B); 6. Whenever there are included within the gross receipts amounts that reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of 4 22-11582/287710 69 ORDINANCE NO, such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; 7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; 8. Amounts collected for others where the business is acting as an,agent or trustee and to the extent that such amounts are paid to those for whom collected. Such agents or trustees must provide the City's Tax Administrator with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees,percentages, or other payments retained by the agent or trustees. 9. Retail sales of t-shirts, sweaters , hats, stickers, key chains, bags,books, posters, rolling papers, Cannabis accessories such as pipes, pipe screens, vape pen batteries (without Cannabis or industrial hemp) or other personal tangible property which the Tax Administrator has excluded in writing by issuing an administrative ruling per Section 3.25.140'shall not be subject to the Cannabis Business tax under this section. "Indoor Cultivation" means the cultivation of Cannabis inside a permanent enclosed building or structure. "Manufacturing" means the production, preparation, propagation, or compounding of Cannabis or Cannabis Products either directly or indirectly or by extraction methods, or independently by means of chemigal synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages Cannabis or Cannabis Products or labels or relabels their containers. r' "Person" means an indivi4t al, firm, partnership,joint venture, association, corporation, limited liability company Ykstate,trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes thg plural as well as the singular number. j, "Processing" mean's`a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis, industrial hemp and non-manufactured Cannabis Produ ls. "Retail, Retl iier, or Retail Facility"means a licensed premises where Cannabis, Cannabis Products, or devices for the use of Cannabis or Cannabis Products are offered, either indAdually or in any combination for retail sale, including an establishment that delivers,Cannabis or Cannabis Products as part of a Retail sale. „ ��� �� '' " y � g Sa , sell and to sell means and includes an sale exchange, or barter. It shall als mean any and whereby, for any consideration,title to Cannabis, Cannabis Pybducts, industrial hemp and/or industrial hemp products are transferred from one *rson to another and includes the delivery of Cannabis, Cannabis Products, industrial /hemp and/or industrial hemp products pursuant to an order placed for the purchase of the 5 22,- 1582/287710 70 ORDINANCE NO. same, but does not include the return of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products to the licensee from whom the Cannabis, Cannabis Products, industrial hemp and/or industrial hemp product was purchased. "State" means the State of California. "State license," "license," or "registration" means a State license issued pursuant to California Business & Professions Code Section 26050, and all other applicable State laws, required for operating a Cannabis Business. "Tax Administrator" means the City Manager of the City of Huntington Beach or his or her designee. f; "Testing Laboratory" means a Cannabis Business thatf(,i) offers or performs tests of Cannabis, Cannabis Products, industrial hemp and/or ipdustrial hemp products, (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the Cannabis industry in the.State, and(v) is licensed by the California Department of Cannabis Control oi,kther State agency required by law. 3.25.50 Tax Imposed. f r° A. There is imposed upon each p9kon who is engaged in business as a Cannabis Business Tax. Such tax is payable rpardless of whether the business has been issued a Commercial Cannabis Permit to op 1.erate lawfully in the City or is operating unlawfully. The City's acceptance of a Canr}a'bis Business Tax payment from a Cannabis Business operating illegally shall not c nstitute the City's approval or consent to such illegal operations. r� B. Pursuant to States law, the City Council may, by Resolution or Ordinance, set, increase or decrease the'rate of the Cannabis Business Tax, including the initial rate of Cannabis Business Tax, within the minimum and maximum prescribed range of tax rates, and establish a clams of persons that is exempt or excepted from the tax or discontinue any such exemption or exception. Notwithstanding the foregoing, in no event shall the City Council repeal;this tax, or set any adjusted rate that is less than the minimum rate, nor that exceeds the maximum rates calculated pursuant to this section. F C. Tie minimum and maximum rate of the Cannabis Business Tax shall be calculatd as follows: ,I. Every person engaged in Retail sales of Cannabis and/or Cannabis Products, including as a Retailer (dispensary) or non-storefront Retailer(Retail delivery business) shall be subject to up to a maximum tax rate not to exceed six percent (6%) of Gross Receipts. f 2. Every person engaged in the Indoor Cultivation for Cannabis shall be subject up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 6 22-11582/287710 r 71 ORDINANCE NO. 3. Every person engaged in the operation of a Testing Laboratory for Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 4. Every person engaged in Distribution of Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent(1%) of Gross Receipts. 5. Every person engaged in Manufacturing or Processing of Cannabis and/or Cannabis Products, or any other type of Cannabis business not described in Section 3.25,050 (C) (1), (2), (3), or(4) shall be subject to up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. Persons subject to the Cannabis Business Tax shall register with the City and pay any fees established by the City Council. Such fees shall not exceed the cost of providing the service and not be considered as a tax and may be adjusted from time to time to recover related costs by Resolution of the City Council. f, 3.25.60 Reporting and remittance of tax. A. The Cannabis Business Tax imposed°by this section shall be paid, in arrears, on a monthly basis. Each person owing a Cannabis Business Tax each calendar month shall, no later than the last day of the month following the close of the calendar month, file with the Tax Administrator a statement ('Tax Statement") of the tax owed for that calendar month and the basis for calculating t4at tax. The Tax Statement is required to be submitted on a form prescribed by,the Tax Administrator. The Cannabis Business Tax for each calendar month shall be due and payable on that same date that the Tax Statement for the calendar month is due. B. Upon cessation of a Cannabis Business, Tax Statements and Cannabis tax payments shall be immediately due for all calendar months up to and including the calendar month during which cessation occurred. C. The Tax Administrator may, at his or her discretion, establish alternative reporting and payment periods for any taxpayer as the Tax Administrator deems necessary to ensure efficient and effective collection of the Cannabis Business Tax, but no less frequently than quarterly. The Tax Administrator may also require that a deposit, to be applied against the Cannabis Business Taxes due for a calendar month, be made by a taxpayer at the beginning of that calendar month. In no event shall the deposit required by the Tax Administrator exceed the Cannabis Business Tax amount he or she projects will be owed, in his or her judgment, by the taxpayer for the calendar month. The Tax Administrator may require that a taxpayer make Cannabis Tax payments via a cashier's check,money order, wire transfer, or similar instrument. 3.25.070 Payments and communications - timely remittance. Whenever any Cannabis Tax payment, statement, report, request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not 7 22-1 1 5 82/2877 1 0 72 ORDINANCE NO. — be accepted as timely remittance. If the due date would fall on a Saturday, Sunday, or a holiday observed by the City,the due date shall be the last business day of the month following the close of the calendar month which the City is open to the public. 3.25.080 Payment when taxes deemed delinquent. Unless otherwise specifically provided under other provisions of this section, the'Cannabis Business Taxes required to be paid pursuant to this section shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in.,.Sections 3.25.060 and/or 3.25.070, fr` 3.25.090 Notice not required by the City. �y The City may as a courtesy send a tax notice to the Cannabis Business which owes the City a Cannabis Business Tax. However, the Tax Administrator is n�t required to send a delinquency or other notice or bill to any person subject to the provisions of his section. Failure to send such notice or bill shall not affect the validity of any tax or pen p'Ity due under the provisions of this section. / 3.25.100 Penalties and interest. r e Any person who fails or refuses to pay any Cannabis Business Tax required to be paid pursuant to this section on or before the due date shall pay penalties and interest as follows: �r A penalty equal to ten percent(10%) of the,'amount of the tax due, in addition to the amount of the tax due,plus interest on the unpaid ta,x calculated from the due date of the tax at the rate of one percent (1.0%) per month. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty five percent(25%) of the amount of the tax, plus interest at the rate of one percent(1.0%) per month on the unpaid tax and on the unpaid penalties. Interest shall be applied at the rate of one percent(1.0%) per month on the first day of the month for the full month and will,continue to accrue monthly on the tax and penalty until the balance is paid in full. Whenever a check or electronic payment is submitted in payment of a Cannabis Business Tax and the payment is sbbsequently returned unpaid by the bank for any reason,the taxpayer will be liable for the tax ayiount due plus any fees,penalties and interest as provided for in this section, and any other amb'unt allowed under State law. The City may revoke or refuse to renew the license required by Section 3.25.030 for any business th s delinquent in the payment of any tax due pursuant to this section or that fails to make addi*nal fee payments required by the City. 8 22-11582/287710 73 ORDINANCE NO. 3.25.110 Refunds and credits. A. No refund shall be made of any tax collected pursuant to this section, except as provided in Section 3.25.120. B. No refund of any Cannabis Business Tax collected pursuant to this section shall be made because of the discontinuation, dissolution, or other termination of a business. 3.25.120 Refunds and procedures. A. Whenever the amount of any Cannabis Business Tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this section, it may be refunded to the claimant who paid the tax provided that a written claim for refund is filed with the Tax Administrator within one (1) year of the date the tax was originally due or paid, whichever came first. B. The Tax Administrator,his or her designee, or any other City officer charged with the administration of this section shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so. C. In the event that the Cannabis Business Tax was erroneously paid in an amount in excess of the tax due, and the error is attributable to the City, the City shall refund the amount of tax erroneously paid; provided that(i) a claim for refund has been timely filed with the Tax Administrator; and (ii)the refund cannot exceed, under any circumstance, the amount of tax overpaid during the twelve months preceding the last month for which the claim states the tax was overpaid. 3.25.130 Personal cultivation not taxed. The provisions of this section shall not apply to personal Cannabis cultivation or personal use of Cannabis, to the extent those activities are authorized in the State's "Medicinal and Adult Use Cannabis Regulation and Safety Act," as may be amended. This section shall not apply to personal use of Cannabis that is specifically exempted from State licensing requirements,that meets the definition of personal use or equivalent terminology under State law, and provided that the individual receives no compensation whatsoever related to that personal Cultivation or use. 3.25.140 Administration of the tax. A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this section. B. 'For purposes of administration and enforcement of this section generally, the Tax Administrator may from time to time promulgate such administrative interpretations, rules and/or procedures consistent with the purpose, intent and express terms of this section as he or she deems necessary to implement or clarify such provisions or aid in 9 22-1�A82n87710 74 ORDINANCE NO. enforcement. C. The Tax Administrator may take such administrative actions as needed to administer the Cannabis Business Tax, including but not limited to: 1. Provide to all Cannabis Business taxpayers forms for the reportin3.0 the tax; 2. Provide information to any taxpayer concerning the provision"f this section; s' 3. Receive and record all taxes remitted to the City as provi#d in this section; 4. Maintain records of taxpayer reports and taxes collec6d pursuant to this section; 5. Assess penalties and interest to taxpayers pursuant to this section; 6. Determine amounts owed under and enforce,,dollection pursuant to this section. 3.25.150 Appeal procedure. f,. Any taxpayer aggrieved by any decision of the Tax Administrator with respect to the amount of tax, interest, penalties and fees, if any, due under tlfis section may appeal to the City Council by filing a notice of appeal with the City Clerk within thirty (30) calendar days of the serving or mailing of the Tax Administrator's determinat'& of the amount due. The City Clerk, or his or her designee, shall fix a time and place for h ring such appeal, and the City Clerk, or his or her designee, shall give notice in writing to su operator at the last known place of address. The finding of the City Council shall be final nd conclusive and shall be served upon the appellant in the manner prescribed by this sectio .25,150 for service of notice of hearing. Any amount found to be due shall be immediately ue and payable upon the service of the notice. 3.25.160 Enforcement- act' n to collect. l f Any taxes, penalties and/or fee�/required to be paid under the provisions of this section shall be deemed a debt owed to the CO. Any person owing money to the City under the provisions of this section shall be liable in action brought in the name of the City for the recovery of such debt. The provisions of thi section shall not be deemed a limitation upon the right of the City to bring any other action incuding criminal, civil and equitable actions, based upon the failure to pay the Cannabis Busingss Tax, penalties and/or fees imposed by this section, or the failure to comply with any of th provisions of this section. 3.25.170 App rtionment. If a business sub ct to the Cannabis Business Tax is operating both within and outside the City, it is the intent o the City to apply the Cannabis Business Tax so that the Measure of the tax fairly reflects e proportion of the taxed activity actually carried on in the City. To the extent Federal or Site law requires that any tax due from any taxpayer be apportioned, the taxpayer may indica said apportionment on his or her tax return. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary. K 10 22-11582/287710 75 ORDINANCE NO. 3.25.180 Constitutionality and legality. The Cannabis Business Tax is intended to be applied in a manner consistent with the United States and California Constitutions and State law. None of the tax provided for by this section shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State of California, or a violation of any other provision of the California Constitution or State law. If a person believes that the tax, as applied to him or her, is impermissible under applicable law, he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the tax. 3.30.190 Audit and examination of premises and records. A. For the purpose of ascertaining the amount of Cannabis Business Tax owed or verification any representations made by any taxpayer to the City in support of his or her tax calculation, the Tax Administrator shall have the power to inspect any location where commercial Cannabis Cultivation occurs and to audit and examine all books and records (including, but not limited to bookkeeping records, State and Federal income tax returns, and other records relating to the Gross Receipts of the business) of persons engaged in Cannabis Businesses in the City. In conducting such investigation, the Tax Administrator shall have the power to inspect any equipment, such as but not limited to computers or point of sale machines, that may contain such records. B. It shall be the duty of every person liable for the collection and payment to the City of any Cannabis Business Tax imposed by this section to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Tax Administrator or his/her designee shall have the right to inspect at all reasonable times. C. Should the Tax Administrator be required to perform an audit of the records of any Cannabis Business for failure to timely or accurately report Cannabis Business Taxes pursuant to sections 3.25.060 and/or 3.25.070, the entire cost of the audit shall be assessed against the operator. 3.25.200 Other licenses, permits, taxes, fees or charges. A. Nothing contained in this section shall be deemed to create, replace, amend, repeal or be in lieu of, or in any way affect any requirements for, any Commercial Cannabis Permit or License the City may require for any purpose. In addition,nothing contained in this section shall be deemed to create, replace, amend,repeal or be in lieu of, or in any way affect any requirements for, any tax, fee or other charge imposed, assessed or required under any other Chapter of this code or any other Ordinance or Resolution of the City. 3.25.210 Payment of tax does not authorize unlawful business. A. The payment of a Cannabis Business Tax required by this section, and its acceptance by the City, shall not entitle any person to carry on any Cannabis Business 11 22-11582/287710 76 ORDINANCE NO. unless the person has complied with all of the requirements of this code and all other applicable State laws. B. No tax paid under the provisions of this section shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any businpss in violation of any local or state law. f 3.25.220 Deficiency determinations. If the Tax Administrator is not satisfied that any statement filed as requ' ed under the provisions of this section is correct, or that the amount of Cannabis Business Ta is correctly computed, he or she may compute and determine the amount to be paid and makya deficiency determination upon the basis of the facts contained in the statement or upon the,basis of any information in his or her possession or that may come into his or her possession vyfthin three (3) years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a persgf discontinues engaging in a Cannabis Business, a deficiency determination may be Ode at any time within three (3) years thereafter as to any liability arising from engaging in sOch Cannabis Business whether or not a deficiency determination is issued prior to the date t�t tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be�tiven to the person concerned in the same manner as notices of assessment are given unde Section 3.25.240. 3.25.230 Failure to report - nonpayment fraud. A. Under any of the followiq,gcircumstances,the Tax Administrator may make and give notice of an assessment ofthe amount of Cannabis Business Tax owed by a person under this section at any time�l 1. If the person has Ott filed a complete statement required under the provisions of this section; 2. If the person,nas not paid the tax due under the provisions of this section; r 3. If the per�sbn has not, after demand by the Tax Administrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the inforrr'ation contained in a statement already filed, or paid any additional amount of ta due under the provisions of this section; or 4. I he Tax Administrator determines that the nonpayment of any Cannabis usiness Tax due under this section is due to fraud, a penalty of twenty- five percent(25%) of the amount of the tax shall be added thereto in addition to t penalties and interest otherwise payable under this section and any other penalties allowed by law. The notice of assessment shall separately set forth the amount of any tax known fby the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable 12 22-11582/287710 77 ORDINANCE NO. provision of this section and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. 3.25.240 Tax assessment- notice requirements. The notice of assessment shall be served upon the person either by personal delivery, by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice in the United States mail,postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this section; or, should the person have no address registered with the Tax Administrator for such purpose, then to such person's last known address. For the purpose of Section 3.25.240 a service by overnight delivery shall be deemed to have occurred one (1) calendar day following deposit with a courier and service by mail shall be deemed to have occurred three (3) days following deposit in the United States mail. 3.25.250 Tax assessment hearing, application and determination. Within thirty (30) calendar days after the date of service of the notice of assessment the person may apply in writing to the Tax Administrator for a hearing on the assessment. If application for a hearing before the City is not made within the time herein prescribed, the Cannabis Business Tax assessed by the Tax Administrator shall/become final and conclusive. Within thirty (30) calendar days of the receipt of any such application for hearing, the Tax Administrator shall cause the matter to be set for hearing befp e him or her no later than thirty (30) calendar days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Tax Administrator to the person requesting such hearing not later than five (5) calendar days prior to such hearing. At such hearing saidtapplicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator or determine and reassess (if necessary) the proper tax to be charged and shall give written notice to the person in the manner prescribed in Section 3.25.240 for giving notice of assessment. 3.25.260 Relief frdm taxes- disaster relief. A. If a C�imabis Business is unable to comply with any tax requirement imposed under this section due to a disaster, the business may notify the Tax Administrator of its inability tq`comply and request relief from the tax requirement. For purposes of this section, 'disaster' means fire, flood, storm,tidal wave, earthquake, or similar public calamity, whether or not resulting from natural causes. B. The Cannabis Business shall provide any information required by the Tax A ninistrator including, without limitation,why relief is requested, the time period for W%ich the relief is requested, and the reason relief is needed for the specific amount of time. The Cannabis Business agrees to grant the Tax Administrator or his/her designee access to the location where the Cannabis Business has been impacted due to a disaster. 1 13 / 22-11582/287710 78 ORDINANCE NO, C. The Tax Administrator, in his/her sole discretion, may provide relief from the Cannabis Business Tax requirement for businesses whose operations have been impacted by a disaster if such tax relief does not exceed fifteen thousand ($15,000) dollars. Such temporary relief may be granted for a reasonable amount of time, in the Tax Administrator's sole discretion, and the amount and duration of relief should be based upon how long it would reasonably take for the Cannabis Business to recover from the disaster. Further, the Tax Administrator may require that the Cannabis Business follow certain conditions to receive temporary relief from the Cannabis Business ax requirement. 3.25.270 Conviction for violation - taxes not waived. The conviction and punishment of any person for failure to pay the required.Cannabis Business Tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this section or of any State law requiring the payment of all taxes. Any person violating any of the provisions of this section shall be guilty of a misdemeanor. 3.25.280 Severability. If any provision of this section, or its application to any person or circumstance, is determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void,that determination shall have no effect on any other provision of this section or the application of this section to any other person or circumstance and,to,that end, the provisions hereof are severable. 3.25.290 Remedies cumulative. All remedies and penalties prescribed by this section or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this section. 3.25.300 Amendment or modification. Except as set forth in this section 3.25.310, this section may be amended or modified but not repealed by the City Council without a vote of the people. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would expand, extend, or increase the rate of any tax levied pursuant to this section. The people of the City of Huntington Beach affirm that the following actions shall not constitute an increase of the rate of a tax: A. The restoration or adjustment of the rate of the tax to a rate that is neither less nor higher than that allowed by this chapter, in those circumstances where, among others,the City Council has previously acted to reduce or increase the rate of the tax within the allowed range or is incrementally implementing an increase authorized by this chapter; B. An action that interprets or clarifies (i)the methodology of applying or calculating the Cannabis Business Tax or(ii) any definition applicable to the tax, so long as the interpretation or clarification (even if contrary to some prior interpretation or 14 22-11582/287710 79 ORDINANCE NO. clarification) is not inconsistent with the provisions of this Chapter 3,25; or C. The collection of the tax imposed by this section even if the City had, for,some period of time, failed to collect the tax. SECTION 2. Pursuant to Article XIII B of the California Constitution,the appropriation limit for the City of Huntington Beach will be increased by the maximum projected aggregate collection authorized by the levy of this general tax, as indicated in SectionA, in each of the years covered by this Ordinance plus the amount, if any, by which the apliropriation limit is decreased by law as a result of the levy of the general tax set forth in this Ordinance. SECTION 3. If any portion of this Ordinance is declared ipvalid by a court of law or other legal body with applicable authority, the invalidity shall nQ{affect or prohibit the force and effect of any other provision or application of the Ordinance t�at is not deemed invalid. The voters of the City hereby declare that they would have circulated for qualification and/or voted for the adoption of this Section, and each portion thereof, regardless of the fact that any portion of the initiative may be subsequently deemed invalid. 13 SECTION 4. Pursuant to California Constitgtion Article XIIIC §(2)(b) and California Elections Code §9217,this Ordinance shall take 9,ffect only if approved by a majority of the eligible voters of the City of Huntington Beach'.,voting at the General Municipal Election to be held on November 8, 2022, and shall take effect ten(10)days after the City Council has certified the results of the General Municipal Election by Resolution. SECTION 5. This order shall tape effect according to law ten days after certification of the election at which it is adopted. ' PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on'the day of ) 2022. Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: City Manager Assistant City Manager 15 I 22-115821287710 i' 80 RESOLUTION NO. 2022-49 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, ADDING TWO ADDITIONAL MEASURES TO THE REQUEST TO THE BOARD OF SUPERVISORS OF THE COUNTY OF ORANGE TO ;;CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBE `8, 2022, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE DATE NRSUANT TO § 10403 OF THE ELECTIONS CODE WHEREAS, the City Council of the City of Huntington Beach called a General Municipal Election to be held on November 8, 2022, for,,6e purpose of the election of four Members of the City Council, and City Attorney and to submit Measures concerning Amendments to the City Charter; and; WHEREAS, the City Council is suitting to the voters two additional questions relating to the regulation and taxation of CO;4ercial Cannabis Businesses; and NOW, THEREFORE, THE dITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DOES RESOLVE, DECLA,E, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. That pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of Orange was requested by the City to consent and agree to the consolidation of a,general Municipal Election with the Statewide General election on Tuesday,November 8,2022, for the purpose of the election of four Members of the City Council, and the City Attorney, and to submit Measures concerning Amendments to the City Charter. SECTION 2. That the City Council, pursuant to its constitutional right and authority, does order submitted to the voters at the General Municipal Election the following two additional questions: r 81 RESOLUTION NO. 2022-49 f, Measure Advisory Measure Concerning Regulation of Commercial Cannabis Businesses YES "Shall the City of Huntington Beach repeal the City's current ban on commercial cannabis businesses and allow a lire ted number of cannabis retailers and non-retailers to opeVdte only in permitted areas of Huntington Beach, subject to usiness NO and land use regulations by City Council?" Measure_: Taxation of Commercial Cannabis Businesses "Shall the City adopt an Ordinance tha axes cannabis YES businesses up to 6% of gross receipts/for retailers and up to 1% of gross receipts for all other c*abis businesses if they were to be permitted in the City; which is expected to generate an estimated $300,000,4o $600,000 annually to fund general municipal services for Huntington Beach and will be NO levied until repealed by the y`oters?" `.s SECTION 3. That the proposed complete text of the Taxation of Commercial Cannabis C• Ordinance, submitted to the voters is attached as Exhibit A. SECTION 4. Tlzat in all particulars not recited in this Resolution, the election shall be held and conducted as,1 rovided by law for holding municipal elections. f SECTION 5. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. 2 22-11582/287706 82 RESOLUTION NO. 2022-49 PASSED AND ADOPTED by the City Council of the City of Huntington Beach,at a regular meeting thereof held on the 19`h day of July, 2022. Mayor REVIEWED AND APPROVED: APPROVE T� AS TO FORM: f City Manager 1' y Attorney INITIATED AND APPROVED: -Assistant City Manager 3 22-11582/287706 83 EXHIBIT A COUNCIL-SPONSORED INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS The City Council for the City of Huntington Beach submits the following Measure to the voters of the City for approval and enactment: ORDINANCE NO. AN ORDINANCE OF THE PEOPLE OF THE CITY OF r14UNTINGTON BEACH, CALIFORNIA, ADDING CHAPTER 3.25 TO TYME 3 OF THE HUNTINGTON BEACH MUNICIPAL CODE ESTABLISHING TAXES ON CANNABIS BUSINESSES OPERATING WITHIN" THE CITY OF HUNTINGTON BEACH r The People of the City of Huntington Beach ordain as follows: SECTION 1. Subject to the approval of a ma* 'rity of the voters of the City of Huntington Beach at the General Municipal Electio so designated by the City Council in a separate Resolution placing the proposal on the b lot for such election, Chapter 3.25 is hereby added to Title 3 of the Huntington Beach Muni pal Code to read as follows: Chapter 3.25. CANNABIS BUSINESS TAX 3.25.010 Title , 3.25.020 Authority and purpose 3.25.030 Inteny-f 3.25.040 De9htions 3.25.050 T4x imposed 3.25.060 feporting and remittance of tax 3.25.070 Payments and communications - timely remittance 3.25.080 Payment- when taxes deemed delinquent 3.25.090 Notice not required by City 3.25.10 Penalties and interest 3.25.1 0 Refunds and credits 3.25/120 Refunds and procedures 3.216.130 Personal cultivation not taxed IL5.140 Administration of the tax 25.150 Appeal procedure 3.25.160 Enforcement- action to collect 3.25.170 Apportionment 3.25.180 Constitutionality and legality 3.25.190 Audit and examination of premises and records ` 3.25.200 Other licenses, permits, taxes, fees or charges 3.25.210 Payment of tax does not authorize unlawful business 3.25,220 Deficiency determinations 3,25.230 Failure to report- nonpayment, fraud 3.25.240 Tax assessment-notice requirements 84 ORDINANCE NO. 3.25,250 Tax assessment-hearing, application, and determination 3.25.260 Relief from taxes—disaster relief 3,25.270 Conviction for violation-taxes not waived 3.25.280 Severability 3.25.290 Remedies cumulative 3.25.300 Amendment or modification 3.25.010 Title. This Ordinance shall be known as the Cannabis Business Tax Ordinande. 3.25.020 Authority and Purpose. The purpose of this Ordinance is to adopt a general tax, purs nt to Sections 37101 and 37100.5 of the California Government Code, upon Cannabis Com rcial Businesses that engage in business in the City of Huntington Beach ("City"),the C abis Business Tax is levied based upon business Gross Receipts. The Cannabis Business ax is not a sales and use tax, a tax upon income, or a tax upon real property. The Cannabis Business Tax is a general tax enac d solely for general, governmental purposes of the City and not for specific purposes. All of t proceeds from the tax imposed by this section shall be placed in the City's General Fund a be available for any lawful municipal purpose. 3.25.030 Intent. The intent of this Ordinance is to le a tax on all Cannabis Businesses operating in the City, regardless of whether conducting s ch business would have been legal at the time this section was adopted. Nothing in this sect' n shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertcen. 1 3.25.40 Definition$' The following words Id phrases shall have the meanings set forth below when used in this section; �� "Busine " shall include all activities engaged in, or caused to be engaged in, within the City, ir�cluding any commercial or industrial enterprise,trade, profession, occupation, vocati6n, calling, or livelihood, whether or not carried on for gain or profit, but shall not inctiide the services rendered by an Employee to his or her employer. ' Calendar year" means January 1 through December 31 of the same year. "Cannabis" means all parts of the plant Cannabis Sativa Linnaeus, Cannabis Indica, or Cannabis Ruderalis,whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, r` derivative, mixture, or preparation of the plant, its seeds or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from Cannabis. "Cannabis" shall 22-11582/287710 85 ORDINANCE NO. not include "industrial hemp," unless otherwise specified. "Cannabis Business" means any Business activity involving Cannabis or Camiabis Products. "Cannabis Business Tax" or "Business Tax," means the taxes due pursuant to this chapter for engaging in a Cannabis Business in the City. Z` "Cannabis Product" means raw cannabis that has undergone process whereby the raw agricultural product has been transformed into a concentrate, n edible product, or a topical product. "Cannabis product" also means Cannabis P oducts as defined by Section 11018.1 of the California Health and Safety Code and is of limited to medicinal Cannabis Products. "City" means the City of Huntington Beach. r�' "Commercial Cannabis Cultivation" mean�6ultivation of Cannabis undertaken in the course of conducting a Cannabis Business/f "Commercial Cannabis Permit" mean)$a permit issued by the City to a person authorizing that person to operate a C abis Business or engage in business as a Cannabis Business within the City. "Cultivation" means any activi involving the planting, growing, harvesting, drying, curing, grading, or trimming olcannabis and includes, but is not limited to, the operation of an indoor, outdoor,mixed 1ght, or nursery. All outdoor or mixed light cultivation shall be prohibited in the City. x "Distribution" means�i siness activities including the procurement, sale, and transport of Cannabis and Cannabis Products between other licensed Cannabis Businesses. "Employee" means each and every person engaged in the operation or conduct of any business, whetheJas owner, member of the owner's family, partner, associate, agent, manager or soli, itor, and each and every other person employed or working in such business for 4Avage, salary, commission, barter or any other form of compensation. "Engaged in business as a Cannabis Business" means the commencing, conducting, operatinW,managing or carrying on of a Cannabis Business, whether done as owner, or by mewls of an officer, agent, manager, employee, or otherwise, whether operating from a fixegl location in the City or coming into the City from an outside location to engage in sucl,activities. A person shall be deemed engaged in business within the City if. 1. Such person or person's employee maintains a fixed place of business within the City for the benefit or partial benefit of such person; 2. Such person or person's employee owns or leases real property within the City for business purposes; 3 22-11582/287710 86 ORDINANCE NO. 3. Such person or person's employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business; 4. Such person or person's employee regularly conducts solicitation of business within the City; or 5. Such person or person's employee performs work or renders serviced in the City. The foregoing specified activities shall not be a limitation on the meaning of'`ngaged in business." ° Ae "Evidence of doing business" means evidence such as, withopf'limitation, use of signs, circulars, cards or any other advertising media, including the,,-rise of Internet or telephone solicitation, or representation to a government agency or toAhe public that such person is engaged in a Cannabis Business in the City. "Gross Receipts," except as otherwise specificallypfovided herein, means, whether designated a sales price, royalty, rent, slotting fee,commission, dividend, or other designation, the total amount(including all receis, cash, credits, services and property of any kind or nature) received or payable for skes of goods, wares or merchandise, or for the performance of any act or service of Oy nature for which a charge is made or credit allowed (whether such service, act o `employment is done as part of or in connection with the sale of goods,wares merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payabl 7losses or any other expense whatsoever. Notwithstanding the foregoing, theollowing shall be excluded from Gross Receipts: l. Cash discounts where�6wed and taken on sales; aw to be included in or added to the purchase price and 2. Any tax required by collected from th�onsumer or purchaser; 3. Such part of the Isale price of any property returned by purchasers to the seller as refunded by)'e seller by way of cash or credit allowances or return of refundable deposits p 71iously included in gross receipts; 4. Receipts yderived from the occasional sale of used, obsolete or surplus trade fixturOs, machinery, or other equipment used by the taxpayer in the regular course of ty'e taxpayer's business; 5. Oash value of sales, trades or transactions between departments or units of the same business located in the City, or if authorized by the Tax Administrator in writing in accordance with section 3.25.140 (B); 6. Whenever there are included within the gross receipts amounts that reflect sales ff for which credit is extended and such amount proved uncollectible in a subsequent year,those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of 4 /22-115821287710 F 87 ORDINANCE NO. such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; 7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; 8. Amounts collected for others where the business is acting as anagent or trustee and to the extent that such amounts are paid to those for whom collected. Such agents or trustees must provide the City's Tax Administrator with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees. 9. Retail sales of t-shirts, sweaters , hats, stickers,,key chains,bags, books, posters, rolling papers, Cannabis accessories such as p°fpes, pipe screens, vape pen batteries (without Cannabis or industrial hemp) or other personal tangible property which the Tax Administrator has°excluded in writing by issuing an administrative ruling per Section 3.25.1, 0 shall not be subject to the Cannabis Business tax under this section. "Indoor Cultivation" means the cultivation of Cannabis inside a permanent enclosed building or structure. "Manufacturing" means the production,preparation, propagation, or compounding of Cannabis or Cannabis Products either directly or indirectly or by extraction methods, or independently by means of chez`ical synthesis, or by a combination of extraction and chemical synthesis at a fixed)ocation that packages or repackages Cannabis or Cannabis Products or labels or relabgA their containers. "Person" means an individual, firm, partnership,joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number. "Processing" means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis, industrial hemp and non-manufactured Cannabis Products. "Retail, Retailer, or Retail Facility" means a licensed premises where Cannabis, Cannabis Products, or devices for the use of Cannabis or Cannabis Products are offered, either individually or in any combination for retail sale, including an establishment that delivers Cannabis or Cannabis Products as part of a Retail sale. "Sale," "sell" and "to sell' means and includes any sale, exchange, or barter. It shall also mean any transaction whereby, for any consideration, title to Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products are transferred from one person to another and includes the delivery of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products pursuant to an order placed for the purchase of the 5 22-11582/287710 88 ORDINANCE NO. _ same, but does not include the return of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products to the licensee from whom the Cannabis, Cannabis Products, industrial hemp and/or industrial hemp product was purchased. "State" means the State of California. "State license," "license," or "registration" means a State license issued-pursuant to California Business & Professions Code Section 26050, and all other applicable State laws, required for operating a Cannabis Business. "Tax Administrator" means the City Manager of the City of Huntington Beach or his or her designee. "Testing Laboratory" means a Cannabis Business that(i) offers or performs tests of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products, (ii) offers no service other than such tests, (iii) sells no product,%excepting only testing supplies and materials, (iv) is accredited by an accrediting bodyRtfiat is independent from all other persons involved in the Cannabis industry in the,gtate, and (v) is licensed by the California Department of Cannabis Control ordther State agency required by law. 3.25.50 Tax Imposed. �f A. There is imposed upon each p son who is engaged in business as a Cannabis Business Tax. Such tax is payable regardless of whether the business has been issued a Commercial Cannabis Permit to oferate lawfully in the City or is operating unlawfully. The City's acceptance of a Cann,Ais Business Tax payment from a Cannabis Business operating illegally shall not co}istitute the City's approval or consent to such illegal operations. B. Pursuant to State/law,the City Council may, by Resolution or Ordinance, set, increase or decrease th/el Irate of the Cannabis Business Tax, including the initial rate of Cannabis Business T , within the minimum and maximum prescribed range of tax rates, and establish a class of persons that is exempt or excepted from the tax or discontinue any such exemption of exception.Notwithstanding the foregoing, in no event shall the City Council repeal, is tax, or set any adjusted rate that is less than the minimum rate, nor that exceeds the maximum rates calculated pursuant to this section. C. The minimum and maximum rate of the Cannabis Business Tax shall be calculated as follows: 1. Every person engaged in Retail sales of Cannabis and/or Cannabis Products, j including as a Retailer(dispensary) or non-storefront Retailer(Retail delivery business) shall be subject to up to a maximum tax rate not to exceed six percent (6%) of Gross Receipts. 2. Every person engaged in the Indoor Cultivation for Cannabis shall be subject up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 6 22-11582/287710 89 ORDINANCE NO. 3. Every person engaged in the operation of a Testing Laboratory for Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent(1%) of Gross Receipts. 4. Every person engaged in Distribution of Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent (1%)of Gross Receipts. 5. Every person engaged in Manufacturing or Processing of Cannabis and/or Cannabis Products, or any other type of Cannabis business r}ot described in Section 3.25.050 (C) (1), (2), (3), or(4) shall be subject to,up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. Persons subject to the Cannabis Business Tax shall register with the City and pay any fees established by the City Council. Such fees shall not exceed the 96 t of providing the service and not be considered as a tax and may be adjusted from time to tiyfe to recover related costs by Resolution of the City Council. 3.25.60 Reporting and remittance of tax. r` A. The Cannabis Business Tax imposed.eby this section shall be paid, in arrears, on a monthly basis. Each person owing a Cannabis Business Tax each calendar month shall, no later than the last day of the month fo owing the close of the calendar month, file with the Tax Administrator a statement('Ta(Statement") of the tax owed for that calendar month and the basis for calculating tlat tax. The Tax Statement is required to be submitted on a form prescribed byrAe Tax Administrator. The Cannabis Business Tax for each calendar month shall be due�/and payable on that same date that the Tax Statement for the calendar month is dueZr / B. Upon cessation of rnabis Business, Tax Statements and Cannabis tax payments shall be immed' due for all calendar months up to and including the calendar month duringich cessation occurred. C. The Tax A mistrator may, at his or her discretion, establish alternative reporting and pay ent periods for any taxpayer as the Tax Administrator deems necessary to ens e efficient and effective collection of the Cannabis Business Tax, but no less freque y than quarterly. The Tax Administrator may also require that a deposit, to be applied 'gainst the Cannabis Business Taxes due for a calendar month, be made by a taxpayer the beginning of that calendar month. In no event shall the deposit required by the Ta Administrator exceed the Cannabis Business Tax amount he or she projects will be ed, in his or her judgment, by the taxpayer for the calendar month. The Tax Admi rstrator may require that a taxpayer make Cannabis Tax payments via a cashier's the , money order, wire transfer, or similar instrument. 3.25.070 Payments and communications - timely remittance. Whenever any Cannabis Tax payment, statement, report,request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not 7 22-11582/287710 90 ORDINANCE NO. _ be accepted as timely remittance. If the due date would fall on a Saturday, Sunday, or a holiday observed by the City, the due date shall be the last business day of the month following the close of the calendar month which the City is open to the public. 3.25.080 Payment when taxes deemed delinquent. Unless otherwise specifically provided under other provisions of this section, the Cannabis Business Taxes required to be paid pursuant to this section shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 3.25,060 and/or 3.25.070. 3.25.090 Notice not required by the City. The City may as a courtesy send a tax notice to the Cannabis Business which owes the City a Cannabis Business Tax. However,the Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions,of this section. Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this section. 3.25100 Penalties and interest. Any person who fails or refuses to pay any Cannabis Business Tax required to be paid pursuant to this section on or before the due date shall pay penalties and interest as follows: A penalty equal to ten percent(10%) of the amount of the tax due, in addition to the amount of the tax due, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent (1.0%) per month. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-five percent(25%) of the amount of the tax, plus interest at the rate of one percent (1.0%) per month on the unpaid tax and on the unpaid penalties. Interest shall be applied at the rate of one percent (1.0%)per month on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full. Whenever a check or electronic payment is submitted in payment of a Cannabis Business Tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this section, and any other amount allowed under State law. The City may revoke or refuse to renew the license required by Section 3.25.030 for any business that is delinquent in the payment of any tax due pursuant to this section or that fails to make additional fee payments required by the City. j 8 22-11582/287710 91 ORDINANCE NO. 3.25.110 Refunds and credits. A. No refund shall be made of any tax collected pursuant to this section, except as provided in Section 3.25.120. B. No refund of any Cannabis Business Tax collected pursuant to this section shall be made because of the discontinuation, dissolution, or other termination of a business. 3.25.120 Refunds and procedures. A. Whenever the amount of any Cannabis Business Tax;penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this section, it may be refunded to the claimant who paid the tax provided that a written claim for refund is filed with the Tax Administrator within one (1) year of the date the tax was originally due or paid, whichever came first. B. The Tax Administrator, his or her designee, or any other City officer charged with the administration of this section shall have the right to examine and audit all the books and business records of the claimant in order todetermine the eligibility of the claimant to the claimed refund. No claim for refund'shall be allowed if the claimant refuses to allow such examination of claimant's b96ks and business records after request by the Tax Administrator to do so. C. In the event that the Cannabis Business Tax was erroneously paid in an amount in excess of the tax due, and the error is attributable to the City, the City shall refund the amount of tax erroneously paid; provided that(i) a claim for refund has been timely filed with the Tax Administrator;,and (ii)the refund cannot exceed, under any circumstance, the amount of tax overpaid'during the twelve months preceding the last month for which the claim states the tax was overpaid. 3.25.130 Personal cultivation not taxed. The provisions of this section shall not apply to personal Cannabis cultivation or personal use of Cannabis, to the extent.those activities are authorized in the State's "Medicinal and Adult Use Cannabis Regulation and Safety Act," as may be amended. This section shall not apply to personal use of Cannabis that is specifically exempted from State licensing requirements, that meets the definition of personal use or equivalent terminology under State law, and provided that the individual receives no compensation whatsoever related to that personal Cultivation or use. 3.25.140 Administration of the tax. A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this section. B. For purposes of administration and enforcement of this section generally, the Tax Administrator may from time to time promulgate such administrative interpretations, rules and/or procedures consistent with the purpose, intent and express terms of this section as he or she deems necessary to implement or clarify such provisions or aid in f 9 22-11582n87710 92 ORDINANCE NO. enforcement. C. The Tax Administrator may take such administrative actions as needed to administer the Cannabis Business Tax, including but not limited to: 1. Provide to all Cannabis Business taxpayers forms for the reporting of the tax; 2. Provide information to any taxpayer concerning the provisions of this section; 3. Receive and record all taxes remitted to the City as provided in this section; 4. Maintain records of taxpayer reports and taxes collected pursuant to this section; 5. Assess penalties and interest to taxpayers pursuant to this section; 6. Determine amounts owed under and enforce collection pursuant to this section. 3.25.150 Appeal procedure. Any taxpayer aggrieved by any decision of the Tax Administrator with respect to the amount of tax, interest, penalties and fees, if any, due under this section may appeal to the City Council by filing a notice of appeal with the City Clerk within thirty (30) calendar days of the serving or mailing of the Tax Administrator's determination of the amount due. The City Clerk, or his or her designee, shall fix a time and place for hearing such appeal, and the City Clerk, or his or her designee, shall give notice in writing to such operator at the last known place of address. The finding of the City Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed by this section 3.25,150 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of the notice. 3.25.160 Enforcement- action to collect. Any taxes, penalties and/or fees required to be paid under the provisions of this section shall be deemed a debt owed to the City. Any person owing money to the City under the provisions of this section shall be liable in an action brought in the name of the City for the recovery of such debt. The provisions of this section shall not be deemed a limitation upon the right of the City to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the Cannabis Business Tax, penalties and/or fees imposed by this section, or the failure to comply with any of the provisions of this section. 3.25.170 Apportionment. If a business subject to the Cannabis Business Tax is operating both within and outside the City, it is the intent of the City to apply the Cannabis Business Tax so that the Measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the City. To the extent Federal or State law requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment on his or her tax return. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary. 10 22-11582/287710 93 ORDINANCE NO. — 3.25.180 Constitutionality and legality. The Cannabis Business Tax is intended to be applied in a manner consistent with the United States and California Constitutions and State law. None of the tax provided for by this section shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State of California, or a violation of any other provision of the California Constitution or State law. If a person believes that the tax, as applied to him or her, is impermissible under applicable law,he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the tax. 3.30.190 Audit and examination of premises and records. A. For the purpose of ascertaining the amount of Cannabis Business Tax owed or verification any representations made by any taVayer to the City in support of his or her tax calculation,the Tax Administrator shall hake the power to inspect any location where commercial Cannabis Cultivation occurs anto audit and examine all books and records (including, but not limited to bookkeepin�,records, State and Federal income tax returns, and other records relating to the Gross I6ceipts of the business) of persons engaged in Cannabis Businesses in the City. In conducting such investigation, the Tax Administrator shall have the power to inspect any eduipment, such as but not limited to computers or point of sale machines, that may cQntain such records. B. It shall be the duty of every person liable for the collection and payment to the City of any Cannabis Business Tax imposed by this section to keep and preserve, for a period of at least three (3)years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Tax Administrator or his/her designee shall have the right to inspect at all reasonable times. C. Should the Tax Administrator be required to perform an audit of the records of any Cannabis Business for failure to timely or accurately report Cannabis Business Taxes pursuant to sections 3.25.060 and/or 3.25.070, the entire cost of the audit shall be assessed agaipist the operator. 3.25.200 Other licenses, permits, taxes, fees or charges. A. Nothing contained in this section shall be deemed to create, replace, amend, repeal or be in lieu of, oni`n any way affect any requirements for, any Commercial Cannabis Permit or License the"City may require for any purpose. In addition, nothing contained in this section shall be deemed to create,replace, amend, repeal or be in lieu of, or in any way affect any requirements for, any tax, fee or other charge imposed, assessed or required under any other Chapter of this code or any other Ordinance or Resolution of the City. 3.25.210 Payment of tax does not authorize unlawful business. A. The payment of a Cannabis Business Tax required by this section, and its acceptance by the City, shall not entitle any person to carry on any Cannabis Business 11 22-11582/287710 94 ORDINANCE NO. unless the person has complied with all of the requirements of this code and all other applicable State laws. B. No tax paid under the provisions of this section shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law. 3.25.220 Deficiency determinations. If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this section is correct, or that the amount of Cannabis Business Tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three (3)years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a Cannabis Business, a deficiency determination may ber;made at any time within three (3) years thereafter as to any liability arising from engaging in�such Cannabis Business whether or not a deficiency determination is issued prior to the date'Ahe tax would otherwise be due. Whenever a deficiency determination is made, a notice shall b� given to the person concerned in the same manner as notices of assessment are given undp Section 3.25,240. 3.25.230 Failure to report- nonpayment, fraud. A. Under any of the followjtg circumstances, the Tax Administrator may make and give notice of an assessment of'the amount of Cannabis Business Tax owed by a person under this section at any time`: 1. If the person has ubt filed a complete statement required under the provisions of this section; 2. If the person.,has not paid the tax due under the provisions of this section; 3. If the person has not, after demand by the Tax Administrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of ta,x due under the provisions of this section; or 4. Ifihe Tax Administrator determines that the nonpayment of any Cannabis Business Tax due under this section is due to fraud, a penalty of twenty- five percent(25%) of the amount of the tax shall be added thereto in addition to penalties and interest otherwise payable under this section and any other penalties allowed by law, B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable 12 22-11582/287710 95 ORDINANCE NO. provision of this section and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. 3.25.240 Tax assessment- notice requirements. The notice of assessment shall be served upon the person either by personal delivery, by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this section; or, should the person have no address registered with the Tax Administrator for such purpose,then to such person's last known address. For the purpose of Section 3.25.240 , a service by overnight delivery shall be deemed to have occurred one (1) calendar day following deposit with a courier and service by mail shall be deemed to have occurred three (3)'days following deposit in the United States mail. 3.25.250 Tax assessment hearing, application and determination. Within thirty (30) calendar days after the date of service of the notice of assessment the person may apply in writing to the Tax Administrator for"a hearing on the assessment. If application for a hearing before the City is not made within tho'time herein prescribed, the Cannabis Business Tax assessed by the Tax Administrator shall become final and conclusive. Within thirty (30) calendar days of the receipt of any such application for hearing,the Tax Administrator shall cause the matter to be set for hearing before him or her no later than thirty (30) calendar days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Tax Administrator to the person requesting such hearing not later than five (5) calendar days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator shall determine and reassess (if necessary)the proper tax to be charged and shall give written notice to the person in the manner prescribed in Section 3.25.240 for giving notice of assessment. 3.25.260 Relief from taxes - disaster relief. A. If a Cannabis Business is unable to comply with any tax requirement imposed under this section due to a disaster, the business may notify the Tax Administrator of its inability`to comply and request relief from the tax requirement. For purposes of this section, "disaster' means fire, flood, storm,tidal wave, earthquake, or similar public calamity, whether or not resulting from natural causes. B. The Cannabis Business shall provide any information required by the Tax Administrator including, without limitation,why relief is requested, the time period for which the relief is requested, and the reason relief is needed for the specific amount of time. The Cannabis Business agrees to grant the Tax Administrator or his/her designee access to the location where the Cannabis Business has been impacted due to a disaster. 13 22-11582/287710 96 r ORDINANCE NO. C. The Tax Administrator, in his/her sole discretion, may provide relief from the Cannabis Business Tax requirement for businesses whose operations have been impacted by a disaster if such tax relief does not exceed fifteen thousand ($15,000) dollars. Such temporary relief may be granted for a reasonable amount of time, in the Tax Administrator's sole discretion, and the amount and duration of relief should be based upon how long it would reasonably take for the Cannabis Business to recover from the disaster. Further, the Tax Administrator may require that the Cannabis Business follow certain conditions to receive temporary relief from the Cannabis Business ax requirement. 3.25.270 Conviction for violation - taxes not waived. The conviction and punishment of any person for failure to pay the required Cannabis Business Tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this section or of any State law requiring the payment of all taxes. Any person violating any of the provisions of this section shall be guilty of a misdemeanor. 3.25.280 Severability. If any provision of this section, or its application to any person or circumstance, is determined by a court of competent jurisdiction to be unlawful;unenforceable or otherwise void, that determination shall have no effect on any other provision of this section or the application of this section to any other person or circumstance and, to that end, the provisions hereof are severable. 3.25.290 Remedies cumulative. All remedies and penalties prescribed by this section or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this section. 3.25.300 Amendment or modification. Except as set forth in this section 3,25.310,this section may be amended or modified but not repealed by the City Council without a vote of the people. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would expand, extend, or increase the rate of any tax levied pursuant to this section. The people of the City of Huntington Beach affirm that the following actions shall not constitute an increase of the rate of a tax: A. The restoration or adjustment of the rate of the tax to a rate that is neither less nor higher than that allowed by this chapter, in those circumstances where, among others, the City Council has previously acted to reduce or increase the rate of the tax within the allowed range or is incrementally implementing an increase authorized by this chapter; B. An action that interprets or clarifies (i) the methodology of applying or calculating the Cannabis Business Tax or (ii) any definition applicable to the tax, so long as the interpretation or clarification(even if contrary to some prior interpretation or 14 22-11582/287710 97 ORDINANCE NO. clarification) is not inconsistent with the provisions of this Chapter 3.25; or C. The collection of the tax imposed by this section even if the City had, for some period of time, failed to collect the tax. SECTION 2. Pursuant to Article XIII B of the California Constitution, the appropriation limit for the City of Huntington Beach will be increased by the maximum projected aggregate collection authorized by the levy of this general tax, as indicated in Section 1, in each of the years covered by this Ordinance plus the amount, if any,by which the appropriation limit is decreased by law as a result of the levy of the general tax set forth in this Ordinance. SECTION 3. If any portion of this Ordinance is declared invalid by a court of law or other legal body with applicable authority,the invalidity shall not affect or prohibit the force and effect of any other provision or application of the Ordinance that is not deemed invalid. The voters of the City hereby declare that they would have circulated for qualification and/or voted for the adoption of this Section, and each portion thereof, regardless of the fact that any portion of the initiative may be subsequently deemed inval,,W. SECTION 4. Pursuant to California Constitution Article XIIIC §(2)(b) and California Elections Code §9217,this Ordinance shall take effect only if approved by a majority of the eligible voters of the City of Huntington B96ch voting at the General Municipal Election to be held on November 8, 2022, and shall tak�,effect ten (10) days after the City Council has certified the results of the General Municipal Election by Resolution. SECTION 5. This order shalYtake effect according to law ten days after certification of the election at which it is adopted. ' P PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of ) 2022. a' Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: City Manager Assistant City Manager 15 22-11582/287710 98 FAf CITY OF HUNTINGTON BEACH Inter-Office Memo TO: Robin Estanislau, City Clerk J FROM: Traivs Hopkins, Assistant City Man er ,�� CC: Michael Gates, City Attorney; Mike Vigliotta, Chief Assistant City Attorney DATE: July 18, 2022 SUBJECT: Supplemental Communication Re: City Council Meeting Item # 22-601 For the City Council meeting on July 19, 2022, we would like to submit the following items as supplemental communication: 1. PowerPoint presentation deck(Attachment 1) 2. Resolution Nos. 2022-50, 2022-51, 2022-52 Our office was advised that in order to place a ballot measure related to charter amendment related to commercial cannabis businesses, the City requires a separate set of resolutions from Resolution Nos. 2022-48, 2022-49, 2022-46, 2022-47. In the event that Council votes on ballot measure language "Option 4"related to the proposed amendment to the Charter Article VIII, allowing cannabis businesses in Hungtinton Beach, we're submitting these additional resolutions as supplemental communication. Should you have any questions, please contact our office. Thank you. SUPPLEMENTAL COMMUNICATION M"ft Date: an�- ��n&hem trio.• MZa� f a�e�� ..... ...:..... .. ..... . .. . i 'r► �139 ORA� XV City of Huntington Beach • j Adoption of Resolutions to Place 1 • Cannabis • • • & Taxati • • • • ••• ` City Council • JNT� •• I ,/ COMMUNICATIONSUPPLEMENTAL Meeft ► Ii . Background ofHuntington - ' AOnda rem No.- • Two private industry parties have filed separate cannabis petitions Nov/Dec, 202without any City Council or staff input. D_ 021 • Ad Hoc Subcommittee formed. deliberating in meetings to research and present a balanced cannabis regulatory framework _ • Committee and staff presented their preliminary recommendations to Council during a study session. 022 • Council voted to place a special tax measure on the 2022 Primary Election ballot. Background - City of Huntington Beach June 9, 2022 'CCommittee hosted community to solicit community • June 7-27, 2022 Measure Business received voter support but failed to reach 2/3 votes required for Special Tax. July 5, 2022 •businesses•- •- -• - ••session- - . -• • . • is July 5, 2022 Council votes to place • City-sponsored measures regarding cannabis business regulation and (2) taxation for voter approval. Next Steps • Deliberate on the two ballot measures, including proposed ballot language prepared by staff; conduct final votes to place them on the November ballot. • If approved, adopt: 1. Resolution No. 2022-48 - Order the submission of a (1) general tax measure with ordinance to amend the Huntington Beach Municipal Code Chapter 3.25 and (2) advisory measure regarding the regulation to regulate of the commercial cannabis businesses; 2. Resolution No. 2022-49 - Request to place two additional the aforementioned cannabis- related ballot measures to on the November General Election ballot; 3. Resolution No. 2022-46 - Set priorities for writing arguments; direct the City Attorney to prepare an impartial analysis for each measure; 4. Resolution No. 2022-47 - Provide for the filing of rebuttal arguments for each measure. aNT I NGTp July 19,2022 City Council Meeting 4 of N��n vycfGGUNTV CP\oe Cannabis Business Tax Ballot Measure November 8, 2022 General Election Ballot as a General Tax • Requires a majority of the electorate • Tax Revenues will be used for general municipal services • A Resolution calling for a general tax to be placed on a general municipal election — requires 2/3 of the City Council votes. • Estimated additional election cost for two measures- appx. $25,000 depending on the # of ballot pages required as the City is committed to the upcoming City Council and City Attorney elections INS zr July h 9 • 2022 N yCF00UNTV Ca�\Fo Cannabis Business Tax Ballot Measure • Tax Rates: ❑ Up to 6% for retailers (storefront, delivery and both); and ❑ Up to 1% for other cannabis businesses (non-retailers including but not limited to indoor cultivation, manufacturing, testing lab, and distribution); and • Allowing flexibility for the City Council to adjust tax rates up to a maximum voter-approved rate for each type of cannabis businesses to address yet emerging economic market conditions • The City will establish a lower tax rate (e.g. 0-1%) to apply to medical cannabis sales to patients, than recreational cannabis sales. apNTINGTp July 19, o` NeFn 2022 City Council e Q= �OFOUNTV CAO City of Huntington Beach - Cannabis Business Tax Ballot Measure - General Tax "Shall the City adopt an Ordinance that taxes cannabis businesses up to 6% of gross receipts for retailers and YES up to 1% of gross receipts for all other cannabis businesses if they were to be permitted in the City, which is expected to generate an estimated $300,000 to NO $600,000 annually to fund general municipal services for Huntington Beach and will be levied until repealed by the voters?" a�NTINGTU July n c • 2022 City Council 9 N O UNTY Ca`4 Number of Available Parcels/Properties Previous • • • • Directionj �OO • - • 1,0 ft. from middle & 491 1,000 ft. from schools 278 213 - high schools 1,000 ft. from parks Specific 600 ft. from K-5 1,000 ft. from commercial 600 ft. from parks licensed daycare centers 600 ft. from commercial 1,000 ft. from youth licensed daycare centers centers 600 ft. from youth centers Delivery-only.- Same as above. 555 No Change. 555 0 • • •• 1 1 1 . 1 1 • • • • 1 1 1 • Nn 0�q—� i JFc E 5 L wIE Mae "TowVI Ir �tT ( �Ge Sf` ♦ > iue.a L11ryIE. 1 ;6 ��`r_. S 1■I it �I,n��Tlt 3 `�-.:1 IU �in���31�� u_ qt E.... • E. tin _ Lam'_ --L • h,> f 3� � • • � ¢'� P� 'U r'1�{'�El�� ����AA • • t� I�� I�L���il�f4 �3�� ,y eYSJ t�� -•JI. rr. hm,Y., s 4; rt i u� Er tw• •1x �ru�rn' ttr• �y '� � �kt�7"R I I l4 un VJ'L e! • �,� � ea�k eII���f�''r � : • F '"1.3�r����� �ty�r =• F::. r Ill Cannabis Business Regulation Measure Ballot Language Options 1- 4 - Continued Option Proposed Ballot Language Included Provisions (75 • • •) (Least specific tomost) 1 "Shall the City of Huntington Beach repeal the • Types (both retailers and City's current ban on commercial cannabis non-retailers) businesses and allow a limited number of commercial cannabis retailers and non-retailers • Authority for the City to operate only in permitted areas of Huntington Council discretion for Beach, subject to business and land use ordinances regulations by City Council?" Cannabis Business Regulation Measure Ballot Language Options 1- 4 - Continued Option ! Proposed Ballot Language Included Provisions (75 • • •) (Least specific tomost) 2 "Shall the City of Huntington Beach allow up to 10 • Types (both retailers and storefront cannabis retailers, with 20% being non-retailers) dedicated to residents and local business owners, and other cannabis businesses (delivery-only retailer, • Cap on # of permits for indoor cultivator, manufacturer, testing lab, and storefront retailers distributor) to operate only in permitted areas of Huntington Beach, and allow the City Council * 20% allocation of local- discretion to adopt and amend business and land only permits use ordinances regarding commercial cannabis activities?" • Authority for the City Council discretion for ordinances Cannabis Business Regulation Measure Ballot Language Options 1- 4 - Continued Option Proposed Ballot Language Included Provisions (75 • • •) (Least specific tomost) 3 "Shall the City of Huntington Beach allow up to 10 • Types (both retailers and storefront cannabis retailers 1,000 feet away from non-retailers) schools, parks, commercial childcare centers, and youth centers to operate in Commercial Zone and • Cap on # of permits for Specific Plan areas, except Downtown and Coastal storefront retailers Overlay Zone; and other cannabis businesses (delivery-only retailer, indoor cultivator, • Location and buffer manufacturer, testing lab, and distributor) only in restrictions for both the Industrial Zone, and allow the City Council discretion to adopt ordinances regarding • Authority for the City Council commercial cannabis activities?" discretion for ordinances Cannabis Business Regulation Measure Ballot Language Options 1- 4 Option Proposed Ballot Language Included Provisions (75 • • •) (Least specific tomost) 4 "Shall the proposed Amendment to Article VII I • Similar to the Measure T: of the Charter of the City of Huntington Beach Safe and Sane Fireworks adding Section 806 to permit a limited number Charter Amendment, if of cannabis businesses to operate in specified passed, the Charter ly areas of Huntington Beach, subject to amendment wouldermanentl regulation by City Council as set forth in the permanently authorize proposed measure be approved?" commercial cannabis activities, which could only be removed by the City's electorate. Timeline & Next Steps 0 City Council . conduct a final vote to submit 2 cannabis July 19, 2022 to voters, adopt Res• • No. •-, identify Council •- who to submit arguments (if any): discuss preparation of impartial July -� �City to prepare im•. : rtial analyses r all measures July 29 by 5pDeadline to submit written • - . and against & impartial analyses August 8 by 5p - Deadline to submit written -• Aug. 12 by 5 p � Deadline . submit all ballot to O Registrar of Voters Subcommittee and City staff continue working on regulatory & land Aug — Nov, 2022 use ordinances t• present t• Planning • • • City Council Nov. 8, 2022 General Munic .. Election A,_ _ _ Recommended Actions: A. Consider two proposed cannabis ballot measures (for regulation and taxation) and ballot language for placement on the November 8, 2022 General Municipal Election ballot; and B. Adopt Resolution No. 2022-48 — Order the submission a (1) general tax measure with ordinance to amend Huntington Beach Municipal Code Chapter 3.25 and (2) advisory measure to regulate commercial business businesses; and C. Adopt Resolution No. 2022-49 — Request to place the aforementioned cannabis-related measures on the November General Election ballot; and D. Adopt Resolution No. 2022-46 — Set priorities for writing arguments and direct the City Attorney to prepare an impartial analysis for each measure, and E. Adopt Resolution No. 2022-47 — Provide for the filing of rebuttal arguments for each measure; and/or F. Provide any additional direction on commercial cannabis regulatory framework N�A GTO ORPORA QUESTIONS? 17, 9t�, N RESOLUTION NO. 2022-50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, ADDING TWO ADDITIONAL MEASURES TO THE REQUEST TO THE BOARD OF SUPERVISORS OF THE COUNTY OF ORANGE TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2022, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE DATE PURSUANT TO § 10403 OF THE ELECTIONS CODE WHEREAS, the City Council of the City of Huntington Beach called a General Municipal Election to be held on November 8, 2022, for the purpose of the election of four Members of the City Council, and City Attorney and to submit Measures concerning Amendments to the City Charter; and; WHEREAS, the City Council is submitting to the voters two additional questions relating to the regulation and taxation of Commercial-Cannabis Businesses; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: r SECTION 1. That pursuant toihe requirements of Section 10403 of the Elections Code, i'. the Board of Supervisors of the County of Orange was requested by the City to consent and agree to the consolidation of a General Municipal Election with the Statewide General election on Tuesday,November 8, 202yfor the purpose of the election of four Members of the City Council, and the City Attorney, d to submit Measures concerning Amendments to the City Charter. SECTION . That the City Council, pursuant to its constitutional right and authority, does order subm*fed to the voters at the General Municipal Election the following two additional 7 questions: NO ACTION TAKEN RESOLUTION NO. 2022-50 Measure_: Measure Adding Regulation of Commercial Cannabis Businesses to Article VIII of the Charter of the City of Huntington Beach YES "Shall the proposed Amendment to Article VIII of the Charter of the City of Huntington Beach adding Section 806 to permit a limited number of cannabis businesses to operate in specified areas of Huntington Beach, subject to regulation No by City Council as set forth in the proposed measure be approved?" Measure : Taxation of Commercial Cannabis Businesses "Shall the City adopt an Ordinance that taxes cannabis YES businesses up to 6% of gross receipts for,retailers and up to 1% of gross receipts for all other cannabis businesses if they were to be permitted in the City; which is expected to generate an estimated $300,000 to $&0,000 annually to fund general municipal services for Huntington Beach and will be No levied until repealed by the voters?" r" SECTION 3. That the proposed complete text of the Taxation of Commercial Cannabis , d' Ordinance, submitted to the voters is attached as Exhibit A. That the proposed complete text of the Charter Amendment, submitted to the voters is attached as Exhibit B. SECTION 4. That in all particulars not recited in this Resolution, the election shall be r held and conducted as provided by law for holding municipal elections. SECTION 5. That the City Clerk shall certify to the passage and adoption of this f Resolution and triter it into the book of original Resolutions. tr /r 2 2-11582/287830 RESOLUTION NO. 2022-50 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a F f regular meeting thereof held on the 191" day of July, 2022. Mayor f` s� REVIEWED AND APPROVED: APPROVEI `AS TO FORM: i" City Manager Caty Attorney INITIATED AND APPROVED: i` Assistant City Manag r f A f F` C t, 3 22-11582/287830 EXHIBIT A COUNCIL-SPONSORED INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO, THE VOTERS The City Council for the City of Huntington Beach submits the following Measure to the voters of the City for approval and enactment: ORDINANCE NO. l AN ORDINANCE OF THE PEOPLE OF THE CITY OF HTINGTON BEACH, CALIFORNIA, ADDING CHAPTER 3.25 TO TITA 3 OF THE HUNTINGTON BEACH MUNICIPAL CODE ESTABLISHING TAXES ON CANNABIS BUSINESSES OPERATING WITHIN HE CITY OF HUNTINGTON BEACH `t`` ,1f The People of the City of Huntington Beach ordain/afollows: SECTION 1. Subject to the approval of a majority of the voters of the City of Huntington Beach at the General Municipal Election s,,/designated by the City Council in a separate Resolution placing the proposal on the ball9t for such election, Chapter 3.25 is hereby added to Title 3 of the Huntington Beach MuniciV, Code to read as follows: Chapter 3.25. CANNABIS BUSINE4 TAX 3.25.010 Title 3.25.020 Authority and purpose 3.25.030 Intent 3.25.040 Definiti ns 3.25.050 Tax imposed 3.25.060 Re orting and remittance of tax 3.25.070 Pyments and communications -timely remittance 3.25.080 ayment - when taxes deemed delinquent 3.25.090 Notice not required by City 3.25.100 Penalties and interest 3.25.110 Refunds and credits 3.25.12 Refunds and procedures 3.25.180 Personal cultivation not taxed 3.2P 40 Administration of the tax Z5.150 Appeal procedure 5.160 Enforcement- action to collect 3.25.170 Apportionment 3.25.180 Constitutionality and legality 3.25.190 Audit and examination of premises and records 3.25.200 Other licenses, permits, taxes, fees or charges 3.25.210 Payment of tax does not authorize unlawful business 3.25.220 Deficiency determinations 3.25.230 Failure to report - nonpayment, fraud 3.25.240 Tax assessment-notice requirements ORDINANCE NO. 3.25.250 Tax assessment- hearing, application, and determination 3.25.260 Relief from taxes—disaster relief 3.25.270 Conviction for violation-taxes not waived 3.25.280 Severability 3.25.290 Remedies cumulative 3.25.300 Amendment or modification 3.25.010 Title. This Ordinance shall be known as the Cannabis Business Tax Ordinance. 3.25.020 Authority and Purpose. ` f. The purpose of this Ordinance is to adopt a general tax,pursuant to Sections 37101 and 37100.5 of the California Government Code, upon Cannabis Commercial Businesses that engage in business in the City of Huntington Beach ("City"), the Cannabis Business Tax is levied based upon business Gross Receipts. The Cannabis Business Tax is not:a sales and use tax, a tax upon income, or a tax upon real property. The Cannabis Business Tax is a general tax enacted solelyfor general, governmental purposes of the City and not for specific purposes. All of the proceeds from the tax imposed by this section shall be placed in the City's General Fund and be available for any lawful municipal purpose. 3.25.030 Intent. The intent of this Ordinance is to levy a tax od'all Cannabis Businesses operating in the City, regardless of whether conducting such business would have been legal at the time this section was adopted. Nothing in this section sha�,te interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken. 3.25.40 Definitions. The following words and phrases shall have the meanings set forth below when used in this t section: r' "Business" shall include all activities engaged in, or caused to be engaged in, within the City, including any commercial or industrial enterprise,trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the�services rendered by an Employee to his or her employer. f' "Calendar year" means January 1 through December 31 of the same year. annabis" means all parts of the plant Cannabis Sativa Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds thereof, the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from Cannabis. "Cannabis" shall 2 22-1 1 5 82/2877 1 0 ORDINANCE NO. not include "industrial hemp," unless otherwise specified. "Cannabis Business" means any Business activity involving Cannabis or Cannabis Products. "Cannabis Business Tax" or "Business Tax," means the taxes due pursuant to this chapter for engaging in a Cannabis Business in the City. "Cannabis Product" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. "Cannabis product" also means Cannabis Products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medicinal Cannabis Products. "City" means the City of Huntington Beach. "Commercial Cannabis Cultivation" means cultivation of Cannabis undertaken in the course of conducting a Cannabis Business. "Commercial Cannabis Permit" means a permit issued by the City to a person authorizing that person to operate a Cannabis Business or engage in business as a Cannabis Business within the City. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis and includes, but is not limited to,the operation of an indoor, outdoor, mixed light, or nursery. All outdoor or mixed light cultivation shall be prohibited in the City. "Distribution" means business activities including the procurement, sale, and transport of Cannabis and Cannabis'Products between other licensed Cannabis Businesses. "Employee" means each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation. "Engaged in'business as a Cannabis Business" means the commencing, conducting, operating,,rianaging or carrying on of a Cannabis Business, whether done as owner, or by means',of an officer, agent, manager, employee, or otherwise, whether operating from a fixed, location in the City or coming into the City from an outside location to engage in such.activities. A person shall be deemed engaged in business within the City if: f` 1. Such person or person's employee maintains a fixed place of business within the City for the benefit or partial benefit of such person; 2. Such person or person's employee owns or leases real property within the City for business purposes; F' r 22-1 1 5 82/2877 1 0 ORDINANCE NO. 3. Such person or person's employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business; 4. Such person or person's employee regularly conducts solicitation of business within the City; or 5. Such person or person's employee performs work or renders services in the City. The foregoing specified activities shall not be a limitation on the meaning of"engaged in business." "Evidence of doing business" means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a Cannabis Business in the City. "Gross Receipts," except as otherwise specifically provided herein, means, whether designated a sales price, royalty, rent, slotting fee, commission, dividend, or other designation,the total amount (including all receipts, cash, credits, services and property of any kind or nature)received or payable for sales of goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable,losses or any other expense whatsoever. Notwithstanding the foregoing, the following shall be excluded from Gross Receipts: 1. Cash discounts where allowed and taken on sales; 2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; 3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts; 4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer's business; 5. Cash value of sales, trades or transactions between departments or units of the 'same business located in the City, or if authorized by the Tax Administrator in writing in accordance with section 3.25.140 (B); r 6. Whenever there are included within the gross receipts amounts that reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year,those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of 4 22-1 1 5 82/287 7 1 0 ORDINANCE NO. such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; 7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; 8. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. Such agents or trustees must provide the City's Tax Administrator with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees. i 9. Retail sales of t-shirts, sweaters , hats, stickers, key chaind;bags, books, posters, rolling papers, Cannabis accessories such as pipes, pips screens, vape pen batteries (without Cannabis or industrial hemp) or other personal tangible property which the Tax Administrator has excluded'in writing by issuing an administrative ruling per Section 3.25.140 shall ot be subject to the Cannabis Business tax under this section. means the cultivation of Cannabis inside a permanent enclosed Indoor Cultivation" � building or structure. "Manufacturing" means the productioictricy paration, propagation, or compounding of Cannabis or Cannabis Products either di or indirectly or by extraction methods, or independently by means of chemicals nthesis, or by a combination of extraction and chemical synthesis at a fixed locatiom that packages or repackages Cannabis or Cannabis Products or labels or relabels their ontainers. "Person" means an individua firm, partnership,joint venture, association, corporation, limited liability company, es te, trust, business trust, receiver, syndicate, or any other group or combination acti as a unit, whether organized as a nonprofit or for-profit entity, and includes the p ral as well as the singular number. "Processing" means cultivation site that conducts only trimming, drying, curing, grading, packagin or labeling of cannabis, industrial hemp and non-manufactured Cannabis Produc . "Retail, Ret ' er, or Retail Facility" means a licensed premises where Cannabis, Cannabis P ducts, or devices for the use of Cannabis or Cannabis Products are offered, either individually or in any combination for retail sale, including an establishment that delivers/kannabis or Cannabis Products as part of a Retail sale. "Sa "sell" and "to sell" means and includes any sale, exchange, or barter. It shall almean any transaction whereby, for any consideration, title to Cannabis, Cannabis �ioducts, industrial hemp and/or industrial hemp products are transferred from one /person to another and includes the delivery of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products pursuant to an order placed for the purchase of the 5 22-11582/287710 ORDINANCE NO. same, but does not include the return of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products to the licensee from whom the Cannabis, Cannabis Products, industrial hemp and/or industrial hemp product was purchased. "State" means the State of California. "State license," "license," or "registration" means a State license issued pursuant to California Business & Professions Code Section 26050, and all other applicable State laws,required for operating a Cannabis Business. "Tax Administrator" means the City Manager of the City of Huntington Beach or his or her designee. "Testing Laboratory" means a Cannabis Business that(i) offers or performs tests of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products, (ii) offers no service other than such tests, (iii) sells no products, exckpting only testing supplies and materials, (iv) is accredited by an accrediting body that,is independent from all other persons involved in the Cannabis industry in the State;and (v) is licensed by the California Department of Cannabis Control or other'State agency required by law. 3.25.50 Tax Imposed. A. There is imposed upon each person,-who is engaged in business as a Cannabis Business Tax. Such tax is payable regardless of whether the business has been issued a Commercial Cannabis Permit to operate lawfully in the City or is operating unlawfully. The City's acceptance of a Cannabis,.Business Tax payment from a Cannabis Business operating illegally shall not constitute the City's approval or consent to such illegal operations. B. Pursuant to State law;the City Council may, by Resolution or Ordinance, set, increase or decrease the rate"of the Cannabis Business Tax, including the initial rate of Cannabis Business Tax, within the minimum and maximum prescribed range of tax rates, and establish a class of p 1.ersons that is exempt or excepted from the tax or discontinue any such exemption or exception. Notwithstanding the foregoing, in no event shall the City Council repeal this tax, or set any adjusted rate that is less than the minimum rate, nor that exceeds the maximum rates calculated pursuant to this section. C. The minimum and maximum rate of the Cannabis Business Tax shall be calculated as,follows: 1. Every person engaged in Retail sales of Cannabis and/or Cannabis Products, including as a Retailer(dispensary) or non-storefront Retailer (Retail delivery business) shall be subject to up to a maximum tax rate not to exceed six percent (6%) of Gross Receipts. 2. Every person engaged in the Indoor Cultivation for Cannabis shall be subject up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 6 22-11582/287710 ORDINANCE NO. 3. Every person engaged in the operation of a Testing Laboratory for Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 4. Every person engaged in Distribution of Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 5. Every person engaged in Manufacturing or Processing of Cannabis and/or Cannabis Products, or any other type of Cannabis business not described in Section 3.25.050 (C) (1), (2), (3), or(4) shall be subject to up to a maximum tax rate not to exceed one percent(1%) of Gross Receipts. Persons subject to the Cannabis Business Tax shall register with the City and pay any fees established by the City Council. Such fees shall not exceed the cost of providing the service and not be considered as a tax and may be adjusted from time to time to recover related costs by Resolution of the City Council. 3.25.60 Reporting and remittance of tax. A. The Cannabis Business Tax imposed by this section shall be paid, in arrears, on a monthly basis. Each person owing a Cannabis Business Tax each calendar month shall, no later than the last day of the month fo'tlowing the close of the calendar month, file with the Tax Administrator a statement ('Tax Statement") of the tax owed for that calendar month and the basis for calculating that tax. The Tax Statement is required to be submitted on a form prescribed bythe Tax Administrator. The Cannabis Business Tax for each calendar month shall be due and payable on that same date that the Tax Statement for the calendar month is due. B. Upon cessation of a Cannabis Business, Tax Statements and Cannabis tax payments shall be immediately due for all calendar months up to and including the calendar month during which cessation occurred. C. The Tax Administrator may, at his or her discretion, establish alternative reporting and payment periods for any taxpayer as the Tax Administrator deems necessary to ensure efficient and effective collection of the Cannabis Business Tax, but no less frequently than quarterly. The Tax Administrator may also require that a deposit, to be applied against the Cannabis Business Taxes due for a calendar month, be made by a taxpayer at the beginning of that calendar month. In no event shall the deposit required by the Tax Administrator exceed the Cannabis Business Tax amount he or she projects will be owed, in his or her judgment, by the taxpayer for the calendar month. The Tax Administrator may require that a taxpayer make Cannabis Tax payments via a cashier's check, money order, wire transfer, or similar instrument. 3.25.070' Payments and communications - timely remittance. Whenever any Cannabis Tax payment, statement, report, request or other communication is due, it�st be received by the Tax Administrator on or before the final due date. A postmark will not 7 22-1 1 5 82/2 877 1 0 ORDINANCE NO. _ be accepted as timely remittance. If the due date would fall on a Saturday, Sunday, or a holiday observed by the City, the due date shall be the last business day of the month following the close of the calendar month which the City is open to the public. 3.25.080 Payment when taxes deemed delinquent. Unless otherwise specifically provided under other provisions of this section, the Cannabis Business Taxes required to be paid pursuant to this section shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 3.25.060 and/or 3.25.070. 3.25.090 Notice not required by the City. The City may as a courtesy send a tax notice to the Cannabis Business which owes the City a Cannabis Business Tax. However, the Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this section. Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this section. 3.25.100 Penalties and interest. Any person who fails or refuses to pay any Cannabis Business Tax required to be paid pursuant to this section on or before the due date shall pay penalties and interest as follows: A penalty equal to ten percent (10%) of the amount of the tax due, in addition to the amount of the tax due, plus interest on the unpaid tax,calculated from the due date of the tax at the rate of one percent (1.0%) per month. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the tax, plus interest at the rate of one percent (1.0%)per month on the unpaid tax and on the unpaid penalties. Interest shall be applied at the rate of one percent(1.0%)per month on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full. Whenever a check or electronic payment is submitted in payment of a Cannabis Business Tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this section, and any other amount allowed under State law. The City may revoke or refuse to renew the license required by Section 3.25.030 for any business that is delinquent in the payment of any tax due pursuant to this section or that fails to make additional fee payments required by the City. 8 22-1 1 582/2877 1 0 ORDINANCE NO. 3.25.110 Refunds and credits. A. No refund shall be made of any tax collected pursuant to this section, except'as provided in Section 3.25.120. B. No refund of any Cannabis Business Tax collected pursuant to this section shall be made because of the discontinuation, dissolution, or other termination of a business. 3.25.120 Refunds and procedures. I A. Whenever the amount of any Cannabis Business Tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this section, it may be refunded to the claimant who paid the tax provided that a written claim for refund is filed with the Tax Administrat r within one (1) year of the date the tax was originally due or paid, whichever came'first. B. The Tax Administrator, his or her desig;r* ht e or any other City officer charged with the administration of this section shall have the to examine and audit all the books and business records of the claimant in order tp,-determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so. C. In the event that the Cannabi Business Tax was erroneously paid in an amount in excess of the tax due, and the error s attributable to the City, the City shall refund the amount of tax erroneously paid; rovided that (i) a claim for refund has been timely filed with the Tax Administrator; and(ii)the refund cannot exceed, under any circumstance, the amount of tax overpaid dydring the twelve months preceding the last month for which the claim states the tax wa0verpaid. 3.25.130 Personal cultiv tion not taxed. The provisions of this secti shall not apply to personal Cannabis cultivation or personal use of Cannabis, to the extent these activities are authorized in the State's "Medicinal and Adult Use Cannabis Regulation ar Safety Act," as may be amended. This section shall not apply to personal use of Cannabis that is specifically exempted from State licensing requirements, that meets the definition//of personal use or equivalent terminology under State law, and provided that the individual receives no compensation whatsoever related to that personal Cultivation or use. i 3.25.140 administration of the tax. A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, d perform the duties required by this section. B. For purposes of administration and enforcement of this section generally,the Tax Administrator may from time to time promulgate such administrative interpretations, rules and/or procedures consistent with the purpose, intent and express terms of this section as he or she deems necessary to implement or clarify such provisions or aid in 9 22-1 1 5 82/2 8 77 1 0 ORDINANCE NO. enforcement. C. The Tax Administrator may take such administrative actions as needed to administer the Cannabis Business Tax, including but not limited to: 1. Provide to all Cannabis Business taxpayers forms for the reporting of the tax; 2. Provide information to any taxpayer concerning the provisions of this section; 3. Receive and record all taxes remitted to the City as provided in this section; 4. Maintain records of taxpayer reports and taxes collected pursuant to this section; 5. Assess penalties and interest to taxpayers pursuant to this section; 6. Determine amounts owed under and enforce collection pursuant to this section. 3.25.150 Appeal procedure. Any taxpayer aggrieved by any decision of the Tax Administrator with respect to the amount of tax, interest, penalties and fees, if any, due under this section may appeal to the City Council by filing a notice of appeal with the City Clerk,Within thirty (30) calendar days of the serving or mailing of the Tax Administrator's determination of the amount due. The City Clerk, or his or her designee, shall fix a time and place for hearing such appeal, and the City Clerk, or his or her designee, shall give notice in writing to`such operator at the last known place of address. The finding of the City Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed by this section 3.25.150 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of the notice. F 3.25.160 Enforcement--action to collect. Any taxes,penalties and/or4ees required to be paid under the provisions of this section shall be deemed a debt owed to the City. Any person owing money to the City under the provisions of this section shall be liable in an action brought in the name of the City for the recovery of such debt. The provisions o)/this section shall not be deemed a limitation upon the right of the City to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the Cannabis Business Tax, penalties and/or fees imposed by this section, or the failure to comply with any,of the provisions of this section. 3.25.170 f Apportionment. If a business subject to the Cannabis Business Tax is operating both within and outside the City, it is the intent of the City to apply the Cannabis Business Tax so that the Measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the City. To the extent Feder�l or State law requires that any tax due from any taxpayer be apportioned, the taxpayer may/indicate said apportionment on his or her tax return. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary. / 10 22-1 1 5 82/2 877 1 0 ORDINANCE NO. _ 3.25.180 Constitutionality and legality. The Cannabis Business Tax is intended to be applied in a manner consistent with the United States and California Constitutions and State law. None of the tax provided for by this section shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State of California, or a violation of any other provision of the California Constitution or State law. If a person believes that the tax, as applied to him or her, is impermissible under applicable law, he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the tax. 3.30.190 Audit and examination of premises and records. A. For the purpose of ascertaining the amount of Cannabis Business Tax owed or verification any representations made by any taxpayer to the City in support of his or her tax calculation, the Tax Administrator shall have the power to inspect any location where commercial Cannabis Cultivation occurs and to"audit and examine all books and records (including, but not limited to bookkeeping records, State and Federal income tax returns, and other records relating to the Gross Receipts of the business) of persons engaged in Cannabis Businesses in the City. In conducting such investigation, the Tax Administrator shall have the power to inspect any equipment, such as but not limited to computers or point of sale machines, that may contain such records. B. It shall be the duty of every person liable for the collection and payment to the City of any Cannabis Business;Tax imposed by this section to keep and preserve, for a period of at least three (3)years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Tax Administrator or his/her designee shall have the right to inspect at all reasonablp''times. C. Should the T-ax Administrator be required to perform an audit of the records of any Cannabis Business for failure to timely or accurately report Cannabis Business Taxes pursuant to sections 3.25.060 and/or 3.25.070, the entire cost of the audit shall be assessed against the operator. f 3.25.200 Other licenses, permits, taxes, fees or charges. i A. Nothing contained in this section shall be deemed to create, replace, amend, repeal or be in lieu of, or h any way affect any requirements for, any Commercial Cannabis Permit or License the'City may require for any purpose. In addition, nothing contained in this section shall be deemed"to create, replace, amend, repeal or be in lieu of, or in any way affect any requirements for, any tax, fee or other charge imposed, assessed or required under any other Chapter of this code or any other Ordinance or Resolution of the City. 3.25.210 Payment of tax does not authorize unlawful business. A. The payment of a Cannabis Business Tax required by this section, and its r acceptance by the City, shall not entitle any person to carry on any Cannabis Business i 11 22-11582/287710 ORDINANCE NO. unless the person has complied with all of the requirements of this code and all other applicable State laws. B. No tax paid under the provisions of this section shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law. 3.25.220 Deficiency determinations. <' If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this section is correct, or that the amount of Cannabis Business Tax is correctly computed, he or she may compute and determine the amount to be paid and snake a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three (3) years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a Cannabis Business, a deficiency determination may be made at any time within three (3) years thereafter as to any liability arising from engaging,in such Cannabis Business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same F manner as notices of assessment are given under Section 3.25.240. 3.25.230 Failure to report- nonpayment, fraud. A. Under any of the following circumstances,the Tax Administrator may make and give notice of an assessment Iof the amount of Cannabis Business Tax owed by a person under this section at any time: 1. If the person has not filed a complete statement required under the provisions of this section;,..., 2. If the person has not paid the tax due under the provisions of this section; 3. If theperson has not, after demand by the Tax Administrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this section; or 4'. If the Tax Administrator determines that the nonpayment of any Cannabis Business Tax due under this section is due to fraud, a penalty of twenty- five percent (25%) of the amount of the tax shall be added thereto in addition to penalties and interest otherwise payable under this section and any other penalties allowed by law. B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable � 12 22-1 1 582/2877 1 0 ORDINANCE NO. provision of this section and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. 3.25.240 Tax assessment- notice requirements. The notice of assessment shall be served upon the person either by personal delivery, by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice in the United States mail,postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this section; or, should the person have no address registered with the Tax Administrator for such purpose,then to such person's last known address. For the purpose of Section 3.25.240 , a service by overnight delivery shall be deemed to have occurred one (1) calendar day following deposit with a courier and service by mail shall be deemed to have occurred three (3) days following deposit in the United States mail. 3.25.250 Tax assessment hearing, application and determination. Within thirty (30) calendar days after the date of service of the notice of assessment the person may apply in writing to the Tax Administrator for a hearing on the assessment. If application for a hearing before the City is not made within the time herein prescribed, the Cannabis Business Tax assessed by the Tax Administrator shall become final and conclusive. Within thirty(30) calendar days of the receipt of any such application for hearing, the Tax Administrator shall cause the matter to be set for hearing before him or her no later than thirty (30) calendar days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Tax Administrator to the person requesting,such hearing not later than five (5) calendar days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator sha17 determine and reassess (if necessary) the proper tax to be charged and shall give written notice to the person in the manner prescribed in Section 3.25.240 for giving notice of assessment. 3.25.260 Relief from taxes - disaster relief. A. If a Cannabis Business is unable to comply with any tax requirement imposed under this section due to a disaster, the business may notify the Tax Administrator of its inability to comply and request relief from the tax requirement. For purposes of this section, "disaster' means fire, flood, storm,tidal wave, earthquake, or similar public calamity„%whether or not resulting from natural causes. B. The Cannabis Business shall provide any information required by the Tax Administrator including, without limitation, why relief is requested, the time period for which the relief is requested, and the reason relief is needed for the specific amount of time. The Cannabis Business agrees to grant the Tax Administrator or his/her designee s°access to the location where the Cannabis Business has been impacted due to a disaster. 13 22-1 1 5 82/2877 1 0 ORDINANCE NO. C. The Tax Administrator, in his/her sole discretion, may provide relief from the Cannabis Business Tax requirement for businesses whose operations have been impacted by a disaster if such tax relief does not exceed fifteen thousand ($15,000) dollars. Such temporary relief may be granted for a reasonable amount of time, in the Tax Administrator's sole discretion, and the amount and duration of relief should be based upon how long it would reasonably take for the Cannabis Business to recover from the disaster. Further,the Tax Administrator may require that the Cannabis Business follow certain conditions to receive temporary relief from the Cannabis Business ax requirement. 3.25.270 Conviction for violation - taxes not waived. The conviction and punishment of any person for failure to pay the required Cannabis Business Tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal,prosecution for any violation of the provisions of this section or of any State law requiring the payment of all taxes. Any person violating any of the provisions of this section shall be guilty,of a misdemeanor. 3.25.280 Severability. If any provision of this section, or its application to:any person or circumstance, is determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this section or the application of this section to any other person or circumstance and,to that end, the provisions hereof are severable. 3.25.290 Remedies cumulative. All remedies and penalties prescribed y this section or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provii si its of this section. 3.25.300 Amendment or�modification. Except as set forth in this 'ection 3.25.310,this section may be amended or modified but not repealed by the City Cou cil without a vote of the people. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would expand, extend, or increase the rate of any tax levied pursuant to this section. The people of the City of Huntington/Beach affirm that the following actions shall not constitute an increase of the rate of a tax: A. /The restoration or adjustment of the rate of the tax to a rate that is neither less nor higher than that allowed by this chapter, in those circumstances where, among others, the City Council has previously acted to reduce or increase the rate of the tax within the all range or is incrementally implementing an increase authorized by this chapter; / B. An action that interprets or clarifies (i) the methodology of applying or calculating the Cannabis Business Tax or (ii) any definition applicable to the tax, so long as the interpretation or clarification(even if contrary to some prior interpretation or 14 22-11582/287710 ORDINANCE NO. clarification) is not inconsistent with the provisions of this Chapter 3.25; or C. The collection of the tax imposed by this section even if the City had, for-some period of time, failed to collect the tax. SECTION 2. Pursuant to Article XIII B of the California Constitution, the appropriation limit for the City of Huntington Beach will be increased by the maximum projected aggregate collection authorized by the levy of this general tax, as indicated in Section 1, in each of the years covered by this Ordinance plus the amount, if any, by which the appropriation limit is decreased by law as a result of the levy of the general tax set forth in this Ordinance. SECTION 3. If any portion of this Ordinance is declared invalid by a court of law or other legal body with applicable authority,the invalidity shall not affect or prohibit the force and effect of any other provision or application of the Ordinance that is not deemed invalid. The voters of the City hereby declare that they would have circulated for qualification and/or voted for the adoption of this Section, and each portion thereof, regardless of the fact that any portion of the initiative may be subsequently deemed invalid. SECTION 4. Pursuant to California Constitution Article XIIIC §(2)(b) and California Elections Code §9217, this Ordinance shall take effect only if approved by a majority of the eligible voters of the City of Huntington Beach voting at the General Municipal Election to be held on November 8, 2022, and shall take effect ten (10) days after the City Council has certified the results of the General Municipal Election by Resolution. SECTION 5. This order shall take effect according to law ten days after certification of the election at which it is adopted. �r PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2022. Mayor ATTEST: ' APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: City Manager Assistant City Manager 15 22-11582/287710 EXHIBIT B Huntington Beach, California Municipal Code CHARTER ARTICLE VIII MISCELLANEOUS Section 806. COMMERCIAL CANNABIS BUSINESSES It shall be lawful to permit a limited number of cannabis businesses to operate in specified areas of Huntington Beach, subject to regulation by City Council. i' RESOLUTION NO. 2022-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A GENERAL TAX MEASURE FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF A PROPOSED ORDINANCE ADDING CHAPTER 3.25 TO TITLE 3 OF THE HUNTINGTON BEACH MUNICIPAL CODE, ESTABLISHING A GENERAL TAX ON CANNABIS BUSINESSES OPERATING WITHIN THE CITY OF HUNTINGTON BEACH AND A MEASURE ADDING REGULATION OF COMMERCIAL CANNABIS BUSINESSES TO ARTICLE VIII OF THE CHARTER OF THE CITY OF HUNTINGTON BEACH AT THE GENERAL ELECTION TO BE HELD ON TUESDAY,NOVEMBER 8,,2022,AS CALLED BY RESOLUTION NO. 2022-39 WHEREAS, a General Election on Tuesday, November 8, 2022 has been called by Resolution No. 2022-39, adopted on July, 5, 2022; and a' WHEREAS, the Cy it Council desires to sub it to the voters at the election additional Measures relating to the regulation and taxation of "ommercial Cannabis Businesses; WHEREAS, pursuant to California Crovernment Code sections 37100.5 and 37101,the City of Huntington Beach has the authori to establish a local business tax upon Commercial Cannabis Businesses that engage in bus' ess in the City; and WHEREAS, the City Co cil desires to submit to the voters a General Tax Measure with an Ordinance establishing th (i) a not-to-exceed rate of 6% local general tax on the Gross o Receipts received by any ca�n6abis retail business and (ii) a not-to-exceed rate of 1 /o local general tax on any other cannabiousiness, including but not limited to indoor cultivation, manufacturing, testing laboratory, an "distribution; and WHE AS, the proposed Cannabis Business Tax is a general tax, the proceeds of which would bye deposited into the City's general fund for general municipal services to the public; and r WHEREAS, on November 6, 1996, the voters of the State of California approved Prop sition 218 (California Constitution, Article XIIIC), an amendment to the State Constitution RESOLUTION NO. 2022-51 which requires that all general taxes which are imposed, extended or increased must be submitted to the electorate and approved by a majority vote of the qualified electors voting in the election; and WHEREAS, the proposed Ordinance would establish a general tax which is subject to Proposition 218; and WHEREAS,pursuant to Proposition 218 (California,Constitution Article XIIIC, §2(b)), f+ the general rule is that any local election for the approval,,6f a general tax must be consolidated with a regularly scheduled general election for members of the governing body of the local government; and WHEREAS, pursuant to Proposition/62 and Government Code Section 53724, an i Ordinance or Resolution proposing a generai�tax must be approved by a two-thirds vote of all members of the legislative body of the lor"al government prior to being submitted to the voters; and WHEREAS, pursuant torts constitutional right and authority, does order submitted to d the voters at the General Municial Election a Charter Amendment question to appear on the �f t ballot; and P i WHEREAS, th specific terms of the Charter Amendment to be considered by the qualified voters, is attag ed hereto as Exhibit B (Charter Amendment) and by this reference mad/dinance" hereof, and in accordance with all applicable laws; and S, the specific terms relating to the Cannabis Business Tax Measure are provrdinance to be considered by the qualified voters, attached hereto as Exhibit A (t or "Measure") and by this reference made an operative part hereof, and in accoapplicable laws. 2 22-11582/287827 RESOLUTION NO. 2022-51 NOW, THEREFORE, the City Council of the City of Huntington Beach, California, does hereby resolve, declare, determine and order as follows: SECTION 1. Recitals. The City Council hereby finds and determines,that the foregoing recitals are true and correct, are incorporated herein and by this reference ri'iade an operative part r` hereof. SECTION 2. Submission of Charter Amendment.�Ae City Council of the City, pursuant to its constitutional right and authority, hereby orders' the Charter Amendment attached hereto as Exhibit B to be submitted to the qualified vots of the City at the General Municipal Election to be held on November 8, 2022. The proposed Charter Amendment shall be in the form attached hereto as Exhibit B to this Resolution an 'is incorporated by this reference as if fully set forth herein. SECTION 3. That the City C uncil, pursuant to its right and authority in part, as contained in California Constitution and Elections Code, does order submitted to the voters at the General Municipal Election the foll wing question: f f Measure_: 1VLsure Addition Regulation of Commercial Cannabis Businesses to Article VIII of the Charter of the City YES of Huntingt n Beach "Shall the proposed Amendment to Article VIII of the Charter of the City of Huntington Beach adding Section 806 to permit a limited number of cannabis businesses to operate in speftfled areas of Huntington Beach, subject to regulation by C' Council as set forth in the proposed measure be No proved?" SECTION 4. Submission of Ballot Measure Ordinance. The City Council of the City, 3 22-11582/287827 RESOLUTION NO. 2022-51 pursuant to its right and authority as contained in California Propositions 218 and 62, Government Code section 53724,and Elections Code section 9222,hereby orders the Ordinance attached hereto as Exhibit A to be submitted to the qualified voters of the City at the General Municipal Election to be held on November 8, 2022. The proposed Ordinance shall be in the form attached hereto as Exhibit A to this Resolution and is incorporated by this reference as if fully set forth herein. SECTION 5. Ballot Measure. The City Council, pursuant to its right and authority, does hereby order that the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section 4. On the ballot to be submitted to the qualified voters at the General Municipal Electio`to be held on November 8, 2022, in addition to any other matters required by law, there shrall be printed substantially the following: l Measure_: Taxation of Commercial Cannabis Businesses "Shall the Cityadopt an Ordin <'ce that taxes cannabis YES businesses up to 6% of gross ceipts for retailers and up to 1% of gross receipts for all er cannabis businesses if they were to be permitted in th ity; which is expected to generate an estimated $d0,000 to $600,000 annually to fund general municipal sere es for Huntington Beach and will be No levied until repealed y the voters?" SECTION 6. Thzt the proposed Measures submitted to the voters are as follows: "Shall the prdp sed Amendment to Article VIII of the Charter of the City of Huntington Beach adding Sectio 806 to permit a limited number of cannabis businesses to operate in specified 1 areas of Huntington Beach, subject to regulation by City Council as set forth in the proposed measure be approved?" (Proposed Charter Amendment is attached as Exhibit B.) "Shall the City adopt an Ordinance that taxes cannabis businesses up to 6% of gross receips for retailers and up to 1% of gross receipts for all other cannabis businesses if they were 4 22-11582/287827 RESOLUTION NO. 2022-51 to be permitted in the City; which is expected to generate an estimated $300,000 to $600,000 annually to fund general municipal services for Huntington Beach and will be levied until repealed by the voters?" (Ordinance is attached as Exhibit A.) SECTION 7. That the vote requirement for the Measures to pass is a mafority (50%+1) of the votes cast. A SECTION 8. That in all particulars not recited in this Resolution, the election shall be f held and conducted as provided by law for holding municipal elections SECTION 9. That notice of the time and place of holding the election is given and the CityClerk is authorized instructed and directed to give further or additional notice of the election, , in time, form and manner as required by law. SECTION 10. That the City Clerk shal certify to the passage and adoption of this Resolution and enter it into the book of original esolutions. SECTION 11. CEQA. The City ouncil hereby finds and determines that the ballot Measure relates to organizational or admi strative activities of governments that will not result in direct or indirect physical changes in e environment, and therefore is not a project within the meaning.of the California Enviro ental Quality Act("CEQA") and the State CEQA Guidelines, section 15378(b)(5). This ballo easure is also exempt from CEQA review pursuant to Business & Professions Code 26055 because any subsequent Ordinance adopted by the City Council permitting cannabis busi sses will require environmental review prior to any decision relating to the issuance of a pe7t or other authorization for the cannabis business to commence operati ons. f f° l 5 22-11582/287827 RESOLUTION NO. 2022-51 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19th day of July, 2022. Mayor REVIEWED AND APPROVED: APPROVED AS-'TO FORM: f f City Manager City Attorney AU II.IITIATED AND APPROVED: et� /z Assistant City Manager e' i f 6 22-11582/287827 EXHIBIT A COUNCIL-SPONSORED INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS The City Council for the City of Huntington Beach submits the following Measure to the voters of the City for approval and enactment: ORDINANCE NO. AN ORDINANCE OF THE PEOPLE OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, ADDING CHAPTER 3.25 TO TITLE 3 OF THE HUNTINGTON BEACH MUNICIPAL CODE ESTABLISHING TAXES ON CANNABIS BUSINESSES OPERATING WITHIN THE CITY OF HUNTINGTON BEACH The People of the City of Huntington Beach ordain as follows: SECTION 1. Subject to the approval of a majority of the voters of the City of Huntington Beach at the General Municipal Election sddesignated by the City Council in a separate Resolution placing the proposal on the ballot for such election, Chapter 3.25 is hereby added to Title 3 of the Huntington Beach Municipal Code to read as follows: t' Chapter 3.25. CANNABIS BUSINESS TAX r' 3.25.010 Title 3.25.020 Authority and purpose 3.25.030 Intent // 3.25.040 Defim,ons 3.25.050 Taxi posed 3.25.060 Reprting and remittance of tax 3.25.070 Payments and communications - timely remittance 3.25.080 f/I ayment- when taxes deemed delinquent 3.25.090 1 Notice not required by City 3.25.100 Penalties and interest 3.25.110 f` Refunds and credits 3.25.120 Refunds and procedures 3.25.1130 Personal cultivation not taxed 3.25�40 Administration of the tax 3.2�.150 Appeal procedure 3`25.160 Enforcement- action to collect f t'3.25.170 Apportionment 3.25.180 Constitutionality and legality 3.25.190 Audit and examination of premises and records 3.25.200 Other licenses, permits,taxes, fees or charges 3.25.210 Payment of tax does not authorize unlawful business 3.25.220 Deficiency determinations 3.25.230 Failure to report - nonpayment, fraud 3.25.240 Tax assessment-notice requirements ORDINANCE NO. 3.25.250 Tax assessment- hearing, application, and determination 3.25.260 Relief from taxes—disaster relief 3.25.270 Conviction for violation-taxes not waived 3.25.280 Severability 3.25.290 Remedies cumulative 3.25.300 Amendment or modification 3.25.010 Title. This Ordinance shall be known as the Cannabis Business Tax Ordinance. 3.25.020 Authority and Purpose. The purpose of this Ordinance is to adopt a general tax,pursuant to Sections 37101 and 37100.5 of the California Government Code, upon Cannabis Commercial Businesses that engage in business in the City of Huntington Beach ("City"), the Cannabis Business Tax is levied based upon business Gross Receipts. The Cannabis Business Tax is not a sales and use tax, a tax upon income, or a tax upon real property. The Cannabis Business Tax is a general tax enacted solely for general, governmental purposes of the City and not for specific purposes. All of the proceeds from the tax imposed by this section shall be placed in the City's General Fund and be available for any lawful municipal purpose. 3.25.030 Intent. The intent of this Ordinance is to levy a tax on all Cannabis Businesses operating in the City, regardless of whether conducting such business would have been legal at the time this section was adopted. Nothing in this section shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken. , 3.25.40 Definitions. The following words and phrases shall have the meanings set forth below when used in this section: "Business" shall include all activities engaged in, or caused to be engaged in, within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the(services rendered by an Employee to his or her employer. { "Cale dar year" means January 1 through December 31 of the same year. " nnabis" means all parts of the plant Cannabis Sativa Linnaeus, Cannabis Indica, or Cannnabis Ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from Cannabis. "Cannabis" shall 2 22-11582/287710 ORDINANCE NO. not include "industrial hemp," unless otherwise specified. "Cannabis Business" means any Business activity involving Cannabis or Cannabis Products. "Cannabis Business Tax" or "Business Tax," means the taxes due pursuant to this chapter for engaging in a Cannabis Business in the City. "Cannabis Product" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. "Cannabis product" also means Cannabis Products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medicinal Cannabis Products. "City" means the City of Huntington Beach. "Commercial Cannabis Cultivation" means cultivation of Cannabis undertaken in the course of conducting a Cannabis Business. "Commercial Cannabis Permit" means apermit issued by the City to a person authorizing that person to operate a Cannabis Business or engage in business as a Cannabis Business within the City. ` "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis and includes, but is not limited to, the operation of an indoor, outdoor, mixed light,or nursery. All outdoor or mixed light cultivation shall be prohibited in the City. "Distribution" means business activities including the procurement, sale, and transport of Cannabis and Cannabis,Products between other licensed Cannabis Businesses. a "Employee" means each and every person engaged in the operation or conduct of any business, whether as owner,member of the owner's family, partner, associate, agent, manager or solicitor,=`and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation. "Engaged in business as a Cannabis Business" means the commencing, conducting, operating, managing or carrying on of a Cannabis Business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person shall be deemed engaged in business within the City if- 1. Such person or person's employee maintains a fixed place of business within the City for the benefit or partial benefit of such person; 2. Such person or person's employee owns or leases real property within the City for business purposes; 3 22-11582/287710 ORDINANCE NO. 3. Such person or person's employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business; 4. Such person or person's employee regularly conducts solicitation of business within the City; or 5. Such person or person's employee performs work or renders services in the City. The foregoing specified activities shall not be a limitation on the meaning of"engaged in business." "Evidence of doing business" means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or:to the public that such person is engaged in a Cannabis Business in the City. "Gross Receipts," except as otherwise specifically provided herein, means, whether designated a sales price, royalty, rent, slotting fee; commission, dividend, or other designation, the total amount(including all receipts, cash, credits, services and property of any kind or nature) received or payable for sales of goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, actor employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold,the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. Notwithstanding the foregoing, the following shall be excluded from Gross Receipts: ft 1. Cash discounts where allowed and taken on sales; 2. Any tax required 1*law to be included in or added to the purchase price and collected from the'consumer or purchaser; 3. Such part of the sale price of any property returned by purchasers to the seller as refunded byAhe seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts; d 4. Receip)L' derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer's business; 5. Cash value of sales,trades or transactions between departments or units of the i same business located in the City, or if authorized by the Tax Administrator in writing in accordance with section 3.25.140 (B); 6. Whenever there are included within the gross receipts amounts that reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year,those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of 4 22-11582/287710 ORDINANCE NO. f such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; 7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; 8. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. Such agents or trustees must provide the City's Tax Administrator with the names and the addresses of the others and the amounts paid to them'This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees. t` 9. Retail sales of t-shirts, sweaters , hats, stickers, key chains, bags, books, posters, rolling papers, Cannabis accessories such as pipes, pipe screens, vape pen batteries (without Cannabis or industrial hemp) or other personal tangible property which the Tax Administrator has excluded in writing by issuing an administrative ruling per Section 3.25.14.0 shall not be subject to the Cannabis f Business tax under this section. "Indoor Cultivation" means the cultivation of Cannabis inside a permanent enclosed building or structure. "Manufacturing" means the production,preparation, propagation, or compounding of Cannabis or Cannabis Products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages Cannabis or Cannabis Products or labels or relabels,their containers. "Person" means an individual, firm, partnership,joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number. "Processing" means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis, industrial hemp and non-manufactured Cannabis Products. "Retail, Retailer, or Retail Facility" means a licensed premises where Cannabis, Cannabis Products, or devices for the use of Cannabis or Cannabis Products are offered, either individually or in any combination for retail sale, including an establishment that delivers Cannabis or Cannabis Products as part of a Retail sale. "Sale," "sell" and "to sell" means and includes any sale, exchange, or barter. It shall also mean any transaction whereby, for any consideration,title to Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products are transferred from one person to another and includes the delivery of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products pursuant to an order placed for the purchase of the 5 22-11582/287710 ORDINANCE NO. F same, but does not include the return of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products to the licensee from whom the Cannabis, Cannabis Products, industrial hemp and/or industrial hemp product was purchased. "State" means the State of California. "State license," "license," or "registration" means a State license issued pursuant to California Business &Professions Code Section 26050, and all other applicable State laws, required for operating a Cannabis Business. "Tax Administrator" means the City Manager of the City of Hiiiltington Beach or his or her designee. "Testing Laboratory" means a Cannabis Business that (.i)offers or performs tests of Cannabis, Cannabis Products, industrial hemp and/or industrial hemp products, (ii) offers no service other than such tests, (iii) sells no products;`excepting only testing supplies and materials, (iv) is accredited by an accrediting body-;that is independent from all other persons involved in the Cannabis industry in the,State, and (v) is licensed by the California Department of Cannabis Control or;other State agency required by law. i; 3.25.50 Tax Imposed. A. There is imposed upon each person who is engaged in business as a Cannabis Business Tax. Such tax is payable regardless of whether the business has been issued a Commercial Cannabis Permit to operate lawfully in the City or is operating unlawfully. The City's acceptance of a Cannabis Business Tax payment from a Cannabis Business operating illegally shall not constitute the City's approval or consent to such illegal operations. B. Pursuant to State law, the City Council may, by Resolution or Ordinance, set, increase or decrease the rate of the Cannabis Business Tax, including the initial rate of Cannabis Business Tax, within the minimum and maximum prescribed range of tax rates, and establish a class of persons that is exempt or excepted from the tax or discontinue any such exemption or 'exception. Notwithstanding the foregoing, in no event shall the City Council repeal this tax, or set any adjusted rate that is less than the minimum rate, nor that exceeds the"maximum rates calculated pursuant to this section. C. The minimum and maximum rate of the Cannabis Business Tax shall be calculated,6s follows: r 1. Fevery person engaged in Retail sales of Cannabis and/or Cannabis Products, %including as a Retailer(dispensary) or non-storefront Retailer (Retail delivery business) shall be subject to up to a maximum tax rate not to exceed six percent (6%) of Gross Receipts. 2. Every person engaged in the Indoor Cultivation for Cannabis shall be subject up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 6 22-11582/287710 ORDINANCE NO. _ 3. Every person engaged in the operation of a Testing Laboratory for Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 4. Every person engaged in Distribution of Cannabis and/or Cannabis Products shall be subject to up to a maximum tax rate not to exceed one percent (1%) of Gross Receipts. 5. Every person engaged in Manufacturing or Processing of Cannabis and/or Cannabis Products, or any other type of Cannabis business not described in Section 3.25.050 (C) (1), (2), (3), or (4) shall be subject to up to a maximum tax rate not to exceed one percent(1%) of Gross Receipts. Persons subject to the Cannabis Business Tax shall register with the City and pay any fees established by the City Council. Such fees shall not exceed the cost of providing the service and not be considered as a tax and may be adjusted from time to time to 'recover related costs by Resolution of the City Council. 3.25.60 Reporting and remittance of tax. A. The Cannabis Business Tax imposed by this section shall be paid, in arrears, on a monthly basis. Each person owing a Cannabis Business Tax each calendar month shall, no later than the last day of the month following the close of the calendar month, file with the Tax Administrator a statement ('Tax Statement") of the tax owed for that calendar month and the basis for calculating that tax. The Tax Statement is required to be submitted on a form prescribed by the Tax Administrator. The Cannabis Business Tax for each calendar month shall be due and"payable on that same date that the Tax Statement for the calendar month is due. B. Upon cessation of a Cannabis Business, Tax Statements and Cannabis tax payments shall be immediately due for all calendar months up to and including the calendar month during which cessation occurred. C. The Tax Administrator may, at his or her discretion, establish alternative reporting and payment periods for any taxpayer as the Tax Administrator deems necessary to ensure efficient and effective collection of the Cannabis Business Tax, but no less frequently than quarterly. The Tax Administrator may also require that a deposit, to be applied against the Cannabis Business Taxes due for a calendar month, be made by a taxpayer at the beginning of that calendar month. In no event shall the deposit required by the Tax Administrator exceed the Cannabis Business Tax amount he or she projects will be owed, in his or her judgment, by the taxpayer for the calendar month. The Tax Administrator may require that a taxpayer make Cannabis Tax payments via a cashier's check, money order, wire transfer, or similar instrument. 3.25.070 Payments and communications - timely remittance. Whenever any Cannabis Tax payment, statement, report, request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not f 7 22-11 5 82/2 8 7 7 1 0 ORDINANCE NO. be accepted as timely remittance. If the due date would fall on a Saturday, Sunday, or a holiday observed by the City, the due date shall be the last business day of the month following the close of the calendar month which the City is open to the public. 3.25.080 Payment when taxes deemed delinquent. Unless otherwise specifically provided under other provisions of this section, the Cannabis Business Taxes required to be paid pursuant to this section shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 3.25.060 and/or 3.25.070. 3.25.090 Notice not required by the City. The City may as a courtesy send a tax notice to the Cannabis Busines,! which owes the City a Cannabis Business Tax. However, the Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this section. Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this section. F` 3.25.100 Penalties and interest. Any person who fails or refuses to pay any Cannabis' usiness Tax required to be paid pursuant to this section on or before the due date shall pay penalties and interest as follows: A penalty equal to ten percent(10%) of the amount of the tax due, in addition to the amount of the tax due, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent (1.0%) per month. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-fiV,-"percent (25%) of the amount of the tax, plus interest at the rate of one percent (1.0%) per onth on the unpaid tax and on the unpaid penalties. Interest shall be applied at the ra"e of one percent (1.0%)per month on the first day of the month for the full month and will co inue to accrue monthly on the tax and penalty until the balance is paid in full. Whenever a check or ele ronic payment is submitted in payment of a Cannabis Business Tax and the payment is sub quently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this section, and any other amount allowed under State law. The City may/reke or refuse to renew the license required by Section 3.25.030 for any business that inquent in the payment of any tax due pursuant to this section or that fails to make additionpayments required by the City. r i / 8 22-1 1 5 82/2877 1 0 ORDINANCE NO. 3.25.110 Refunds and credits. A. No refund shall be made of any tax collected pursuant to this section, except as provided in Section 3.25.120. B. No refund of any Cannabis Business Tax collected pursuant to this section shall be made because of the discontinuation, dissolution, or other termination of a business. 3.25.120 Refunds and procedures. A. Whenever the amount of any Cannabis Business Tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this section, it may be refunded to the claimant who pai4 the tax provided that a written claim for refund is filed with the Tax Administrator`within one (1)year of the date the tax was originally due or paid, whichever came first. f` B. The Tax Administrator, his or her designee, or any other City officer charged with the administration of this section shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall beallowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so. C. In the event that the Cannabis 9usiness Tax was erroneously paid in an amount in excess of the tax due, and the error isAttributable to the City, the City shall refund the amount of tax erroneously paid; provided that (i) a claim for refund has been timely filed with the Tax Administrator; and P)the refund cannot exceed, under any circumstance, the amount of tax overpaid during the twelve months preceding the last month for which the claim states the tax was oy ipaid. 3.25.130 Personal cultivation not taxed. The provisions of this section shall not apply to personal Cannabis cultivation or personal use of Cannabis, to the extent those;.:activities are authorized in the State's "Medicinal and Adult Use Cannabis Regulation and Safety Act," as may be amended. This section shall not apply to personal use of Cannabis',that is specifically exempted from State licensing requirements, that meets the definition of personal use or equivalent terminology under State law, and provided that the individual receives no compensation whatsoever related to that personal Cultivation or use. 3.25.140 Administration of the tax. f` A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this section. B. ' For purposes of administration and enforcement of this section generally, the Tax Administrator may from time to time promulgate such administrative interpretations, rules and/or procedures consistent with the purpose, intent and express terms of this section as he or she deems necessary to implement or clarify such provisions or aid in 9 22-1 1 582/2877 1 0 ORDINANCE NO. enforcement. C. The Tax Administrator may take such administrative actions as needed to administer the Cannabis Business Tax, including but not limited to: 1. Provide to all Cannabis Business taxpayers forms for the reporting of the tax; n< 2. Provide information to any taxpayer concerning the provisions of this section; 3. Receive and record all taxes remitted to the City as provided in this section; p.. 4. Maintain records of taxpayer reports and taxes colVeted pursuant to this section; 5. Assess penalties and interest to taxpayers pursoa t to this section; 6. Determine amounts owed under and enforce collection pursuant to this section. 3.25.150 Appeal procedure. Any taxpayer aggrieved by any decision of the T Administrator with respect to the amount of tax, interest, penalties and fees, if any, due unde this section may appeal to the City Council by filing a notice of appeal with the City Clerk w' in thirty (30) calendar days of the serving or mailing of the Tax Administrator's determin ion of the amount due. The City Clerk, or his or her designee, shall fix a time and place for, earing such appeal, and the City Clerk, or his or her designee, shall give notice in writing to ch operator at the last known place of address. The finding of the City Council shall be fin and conclusive and shall be served upon the appellant in the manner prescribed by this secti n 3.25.150 for service of notice of hearing. Any amount found to be due shall be immediatel due and payable upon the service of the notice. 3.25.160 Enforcement - a ion to collect. Any taxes,penalties and/or f s required to be paid under the provisions of this section shall be deemed a debt owed to the ity. Any person owing money to the City under the provisions of this section shall be liable ' an action brought in the name of the City for the recovery of such debt. The provisions of this section shall not be deemed a limitation upon the right of the City to bring any other action dcluding criminal, civil and equitable actions, based upon the failure to pay the Cannabis Business Tax,penalties and/or fees imposed by this section, or the failure to comply with any of . e provisions of this section. 3.25.170 A portionment. If a business sAbject to the Cannabis Business Tax is operating both within and outside the City, it is the inte of the City to apply the Cannabis Business Tax so that the Measure of the tax fairly refle s the proportion of the taxed activity actually carried on in the City. To the extent Federal o State law requires that any tax due from any taxpayer be apportioned, the taxpayer may in cate said apportionment on his or her tax return. The Tax Administrator may promulgate admi strative procedures for apportionment as he or she finds useful or necessary. 10 22-11582/287710 ORDINANCE NO. 3.25.180 Constitutionality and legality. The Cannabis Business Tax is intended to be applied in a manner consistent with the United States and California Constitutions and State law. None of the tax provided for by this section shall be applied in a manner that causes an undue burden upon interstate commerce,anviolation of the equal protection or due process clauses of the Constitutions of the United S t s or the State of California, or a violation of any other provision of the California Cons ' ution or State law. If a person believes that the tax, as applied to him or her, is impermissib under applicable law, he or she may request that the Tax Administrator release him or her fr m the obligation to pay the impermissible portion of the tax. 3.30.190 Audit and examination of premises and records. A. For the purpose of ascertaining the amount of C abis Business Tax owed or verification any representations made by any taxpayer to he City in support of his or her tax calculation,the Tax Administrator shall have the power to inspect any location where commercial Cannabis Cultivation occurs and to audit,and examine all books and records (including, but not limited to bookkeeping records,,State and Federal income tax returns, and other records relating to the Gross Receipts of the business) of persons engaged in Cannabis Businesses in the City. In conducting,such investigation, the Tax Administrator shall have the power to inspect any equipment;such as but not limited to computers or point of sale machines, that may contain such records. B. It shall be the duty of every person liable for the collection and payment to the City of any Cannabis Business Tax imposed by this section to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Tax Administrator or his/her designee shall have the right to inspect at all reasonable times. f C. Should the Tax Administrator be required to perform an audit of the records of any Cannabis Business for failure to timely or accurately report Cannabis Business Taxes pursuant to sections 3.25.060 and/or 3.25.070, the entire cost of the audit shall be assessed against the operator. f 3.25.200 Other licenses, permits, taxes, fees or charges. A. Nothing contained in this section shall be deemed to create, replace, amend, repeal or be in lieu of, or in any wayaffect any requirements for, any Commercial Cannabis Permit or License the City may require for any purpose. In addition, nothing contained in this section shall be deemed to create, replace, amend, repeal or be in lieu of, or in any way affect any requirements for, any tax, fee or other charge imposed, assessed or required under any other Chapter of this code or any other Ordinance or Resolution of the City. 3.25.210 Payment of tax does not authorize unlawful business. A. The payment of a Cannabis Business Tax required by this section, and its a ceptance by the City, shall not entitle any person to carry on any Cannabis Business 11 22-1 1/82/287710 ORDINANCE NO, unless the person has complied with all of the requirements of this code and all other applicable State laws. B. No tax paid under the provisions of this section shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law. 3.25.220 Deficiency determinations. If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this section is correct, or that the amount of Cannabis Business Tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three (3)years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a Cannabis Business, a deficiency determination maybe made at any time within three (3) years thereafter as to any liability arising from engaging in such Cannabis Business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Section 3.25.240. 3.25.230 Failure to report- nonpayment, fraud. A. Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of Cannabis Business Tax owed by a person under this section at any time: 1. If the person has not filed a complete statement required under the provisions of this section; 2. If the person has not paid the tax due under the provisions of this section; 3. If the person has not, after demand by the Tax Administrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the info "nation contained in a statement already filed, or paid any additional amount of::fax due under the provisions of this section; or 4. If the Tax Administrator determines that the nonpayment of any Cannabis Business Tax due under this section is due to fraud, a penalty of twenty- five percent (25%) of the amount of the tax shall be added thereto in addition to penalties and interest otherwise payable under this section and any other penalties allowed by law. B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable 12 22-1 1 582/2877 1 0 ORDINANCE NO. provision of this section and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. 3.25.240 Tax assessment- notice requirements. The notice of assessment shall be served upon the person either by personal delivery, by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this section; or, should the person have no address registered with the Tax Administrator for such purpose, then to such person's last known address. For the purpose of Section 3.25.240 , a service by overnight delivery shall be deemed to have occurred one (1) calendar day following deposit with a courier and service by mail shall be deemed to have occurred three (3) days following deposit in the United States mail. 3.25.250 Tax assessment hearing, application and determination. Within thirty (30) calendar days after the date of service of the notice of assessment the person may apply in writing to the Tax Administrator for a hearing on the assessment. If application for a hearing before the City is not made within the'time herein prescribed, the Cannabis Business Tax assessed by the Tax Administrator shall become final and conclusive. Within thirty (30) calendar days of the receipt of any such application for hearing, the Tax Administrator shall cause the matter to be set for hearing before him or her no later than thirty (30) calendar days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Tax Administrator to the person requesting such hearing not later than five (5) calendar days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator shall determine and reassess (if necessary) the proper tax to be charged and shall give writterhnotice to the person in the manner prescribed in Section 3.25.240 for giving notice of assessment. 3.25.260 Relief from taxes - disaster relief. A. If a Cannabis Business is unable to comply with any tax requirement imposed under this section due to a disaster, the business may notify the Tax Administrator of its inability to.comply and request relief from the tax requirement. For purposes of this section, "disaster' means fire, flood, storm, tidal wave, earthquake, or similar public calamity, whether or not resulting from natural causes. B. The Cannabis Business shall provide any information required by the Tax Administrator including, without limitation, why relief is requested, the time period for which the relief is requested, and the reason relief is needed for the specific amount of time. The Cannabis Business agrees to grant the Tax Administrator or his/her designee access to the location where the Cannabis Business has been impacted due to a disaster. 13 22-1 1 582/2877 1 0 ORDINANCE NO. { C. The Tax Administrator, in his/her sole discretion, may provide relief from the Cannabis Business Tax requirement for businesses whose operations have been impacted by a disaster if such tax relief does not exceed fifteen thousand ($15,000) dollars. Such temporary relief may be granted for a reasonable amount of time, in the Tax Administrator's sole discretion, and the amount and duration of relief should be based upon how long it would reasonably take for the Cannabis Business to recover from the disaster. Further, the Tax Administrator may require that the Cannabis Business follow certain conditions to receive temporary relief from the Cannabis Business ax requirement. 3.25.270 Conviction for violation -taxes not waived. The conviction and punishment of any person for failure to pay the required Cannabis Business Tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this section or of any State law requiring the payment of all taxes. Any person violating any of the provisions of this section shall be guilty of a misdemeanor. 3.25.280 Severability. If any provision of this section, or its application to any person or circumstance, is determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any,other provision of this section or the application of this section to any other person or circumstance and, to that end, the provisions hereof are severable. 3.25.290 Remedies cumulative. All remedies and penalties prescribed by this section or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this section. 3.25.300 Amendment or modification. Except as set forth in this section 3.25.310, this section may be amended or modified but not repealed by the City Council without a vote of the people. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would expand, extend, or increase the rate of any tax levied pursuant to this section. The people of the City of Huntington Beach affirm that the following actions shall not constitute an increase of the rate of a tax: A. The restoration or adjustment of the rate of the tax to a rate that is neither less nor higher than that allowed by this chapter, in those circumstances where, among others, the City Council has previously acted to reduce or increase the rate of the tax within the allowed range or is incrementally implementing an increase authorized by this chapter; B. An action that interprets or clarifies (i) the methodology of applying or calculating the Cannabis Business Tax or (ii) any definition applicable to the tax, so long as the interpretation or clarification(even if contrary to some prior interpretation or 14 j 22-11582/287710 ORDINANCE NO. clarification) is not inconsistent with the provisions of this Chapter 3.25; or C. The collection of the tax imposed by this section even if the City had, for some period of time, failed to collect the tax. SECTION 2. Pursuant to Article XIII B of the California Constitution, the appropriation limit for the City of Huntington Beach will be increased by the maximum projected aggregate collection authorized by the levy of this general tax, as indicated in Section 1, in each of the years covered by this Ordinance plus the amount, if any, by which the appropriation limit is decreased by law as a result of the levy of the general tax set forth in this Ordinance. SECTION 3. If any portion of this Ordinance is declared invalid by a court of law or other legal body with applicable authority, the invalidity shall not affect or prohibit the force and effect of any other provision or application of the Ordinance that is not deemed invalid. The voters of the City hereby declare that they would have circulated for qualification and/or voted for the adoption of this Section, and each portion thereof, regardless of the fact that any portion of the initiative may be subsequently deemed invalid. SECTION 4. Pursuant to California Constitution Article XIIIC §(2)(b) and California Elections Code §9217, this Ordinance shall take effect only if approved by a majority of the eligible voters of the City of Huntington Beach voting at the General Municipal Election to be held on November 8, 2022, and shall take effect ten(10) days after the City Council has certified the results of the General Municipal Election by Resolution. SECTION 5. This order shall tde effect according to law ten days after certification of the election at which it is adopted. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2022. Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: City Manager Assistant City Manager 15 22-11582/287710 EXHIBIT B Huntington Beach, California Municipal Code CHARTER ARTICLE VIII MISCELLANEOUS Section 806. COMMERCIAL CANNABIS BUSINESSES It shall be lawful to permit a limited number of cannabis businesses to operate in specified areas of Huntington Beach, subject to regulation by City Council. f f i i i RESOLUTION NO. 2022-52 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS AND IMPARTIAL ANALYSES CONCERNING REGULATION AND TAXATION OF COMMERCIAL CANNABIS BUSINESSES WITHIN THE CITY OF HUNTINGTON BEACH WHEREAS, a General Municipal Election is to be held in the City of Huntington Beach, California, on November 8, 2022, at which there will be submitted to'the voters three ballot Measures related to amendments to the City Charter and 2 ballot Measures concerning the regulation and taxation of Commercial Cannabis Businesses; and The City Council wishes to authorize arguments in favor of and in opposition to these Measures and authorize the preparation of impartial analyses of these Measures, NOW, THEREFORE, the City Council of the City of Huntington Beach, California, does hereby resolve, declare, determine and order as follows: SECTION 1. That with respect to the Measure entitled: Measure_: Measure'Addition Regulation of Commercial Cannabis Businesses to Article VIII of the Charter of the City of Huntington Beach YES "Shall the proposed Amendment to Article VIII of the Charter of the City of Huntington Beach adding Section 806 to permit a limited number of cannabis businesses to operate in specified areas of Huntington Beach, subject to regulation No by City Council as set forth in the proposed measure be approved?" a. That the City Council authorizes the following member(s) of its body: (Councilmember In Favor/Against) (Councilmember In Favor/Against) (Councilmember In Favor/Against) (Councilmember In Favor/Against) (Councilmember In Favor/Against) NO ACTION TAKEN RESOLUTION NO. 2022-52 to file a written argument regarding the Measure as specified above in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California and to change the argument until and including the date fixed by the City Clerk after which no arguments for or against the Measure may be submitted to the City Clerk. Said argument to be'accompanied by the printed name(s) and signature(s) of the authors(s) submitting it, ,or` if submitted on behalf of an organization, the name of the organization, and the printed`name and signature of at least one of its principal officers. b. That the City Council directs the City Clerk to transmit a copy of the Measure to the City Attorney to prepare an impartial analysis of the Measure not exceeding 500 words r' showing the effect of the Measure on the existing law and the operation of the Measure. C. The analysis shall include a statement indicating the Measure was placed on the ballot by the governing body of the City. ,F d. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. �n SECTION 2. That with respect to the Measure entitled: Measurt Taxation of Commercial Cannabis Businesses YES "Shall the City adopt an Ordinance that taxes cannabis businesses up to 6% of gross receipts for retailers and up to 1% of'gross receipts for all other cannabis businesses if they were to be permitted in the City; which is expected to generate an ;estimated $300,000 to $600,000 annually to fund general No municipal services for Huntington Beach and will be levied until repealed by the voters?" l+ J (t`I 2 22-11582/287823 RESOLUTION NO. 2022-52 a. That the City Council authorizes the following member(s) of its body: (Councilmember In Favor/Against) (Councilmember In Favor/Against) (Councilmember In Favor/Against) (Councilmember In Favor/Against) (Councilmember In Favor/Against) to file a written argument regarding the Measure as specified above in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California and to change the argument until and including the date fixed by the City Clerk after which no arguments for or against the Measure may be submitted to the City Clerk. Said argument to be accompanied by the printed name(s) and signature(s) of the authors(s) submitting it,or if submitted on behalf of an organization,the name of the organization, and the printed name and signature of at least one of its principal officers. b. That the City Council directs the City Clerk to transmit a copy of the Measure to the City Attorney to prepare an impartial analysis of the Measure not exceeding 500 words showing the effect of the Measure,0n the existing law and the operation of the Measure. C. The analysis shall include a statement indicating the Measure was placed on the ballot by the governing body of the City. d. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information portion of the voter information guide,there shall be printed immediately below the impartial analysis, in no less than 10-point type, the following: "The above statement is an impartial analysis of Municipal Code Amendment Measure. If you desire a copy of the Ordinance or Measure, please call the election official's office at 714-536-5405 and a copy will be ernailed at no cost to you." i 3 22-11582/287823 RESOLUTION NO. 2022-52 e. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 191h day of July, 2022. Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: City Manager City Attorney ' INITIATED AND APPROVED: ssistant City Manager Yl Jf r �j { 4 22-11582/287823 Switzer, Donna From: Yoon-Taylor, Grace on behalf of Cannabis Sent: Tuesday,July 12, 2022 1:17 PM To: supplementalcomm@surfcity-hb.org Subject: FW: Marijuana SUPPLEMENTAL From: Parry, Richard <rparry@fullerton.edu> COMMUNICATION Sent:Tuesday,July 12, 2022 9:09 AM To: Cannabis<cannabis@surfcity-hb.org> Mee&V Date: Cc: Parry, Richard <rparry@fullerton.edu> Subject: FW: Marijuana Agenda i*mNo. 12, 2Z—lLo� Dear Sir or Madam, I read,with considerable interest, Huntington Beach's plans with regard to marijuana as reported recently in the Orange County Register. And, I realize that the e-mail address to which I send this e-mail requested comments long before today's date. I tried to find a current e-mail address but was unable to do so. Regardless, I strongly urge the city council to consider the information that is presented in several publications. The first publication is entitled, "Who's Really in Prison for Marijuana" by the Office of National Drug Control Policy. This document is available at: https://www.oip.gov/ncirs/virtual-library/abstracts/whos-really-prison-mariivana In summary,this document notes that the vast majority of individuals in prison because of marijuana are "violent criminals, repeat offenders,traffickers, or all of the above." I also invite your attention to: www.fda.gov/newsevents/-ublichealthfocus/ucm421163.htm That document notes, "To date,the FDA has not approved a marketing application for cannabis for the treatment of any disease or condition. The agency has, however, approved one cannabis-derived drug product: Epidiolex(cannabidiol), and three synthetic cannabis-related drug products: Marinol (dronabinol),Syndros (dronabinol), and Cesamet (nabilone).These approved drug products are only available with a prescription from a licensed healthcare provider. Importantly,the FDA has not approved any other cannabis, cannabis-derived, or cannabidiol (CBD) products currently available on the market." That document also notes, "FDA is aware that unapproved cannabis and/or unapproved cannabis-derived products are being used to treat a number of medical conditions including,AIDS wasting, epilepsy, neuropathic pain, spasticity associated with multiple sclerosis, and cancer and chemotherapy-induced nausea. Caregivers and patients can be confident that FDA-approved drugs have been carefully evaluated for safety, efficacy, and quality, and are monitored by the FDA once they are on the market. However,the use of unapproved cannabis and cannabis-derived products can have unpredictable and unintended consequences, including serious safety risks.Also,there has been no FDA review of data from rigorous clinical trials to support that these unapproved products are safe and efficacious for the various therapeutic uses for which they are being used." (Emphasis added). While the City of Huntington Beach may be looking at increased tax revenue, it will come at a significant cost in terms of long term medical expenses, as well as emergency medical responses to, among other things,vehicle accidents. 1 Consider the following from Boston University: "In a new study published in the American Journal of Public Health, however, researchers are noticing a pattern that suggests alcohol might not be the only culprit of impaired driving. Researchers from Boston Medical Center, Boston University, and the University of Victoria in British Columbia found that deadly car crashes involving both cannabis and alcohol consumption have more than doubled in the United States in the past two decades, as have car crash deaths involving just cannabis." The link appears to be inactive, but the original document,that was published in December of 2021, maybe found at: https://www.bu.edu/articles/2021/deadly-car- accidents-involving-cannabis-and-alcohol-have-doubled/ While taxing marijuana sales may benefit the city in the short term, it will come at a dreadful cost to society in the long run and I strongly urge the city council to reconsider its approach to this subject. Sincerely, Professor Richard O. Parry CSUF rparrv@fullerton.edu 657-278-3410 2 Switzer, Donna From: Yoon-Taylor, Grace on behalf of Cannabis Sent: Tuesday,July 12, 2022 1:24 PM To: supplementalcomm@surfcity-hb.org Subject: FW: Public Comment Re: Cannabis Regulatory Framework From:Jennifer Rojas<rojas.jen.renee@gmail.com> Sent:Tuesday,July 12, 2022 1:14 PM To:Cannabis<cannabis@surfcity-hb.org> Subject: Public Comment Re: Cannabis Regulatory Framework Dear Huntington Beach Mayor and City Council, My name is Jennifer Rojas and I am a resident of Huntington Beach. I am supportive of your efforts to propose a ballot measure for voters to decide on the future of commercial cannabis businesses in the City. Importantly, I believe that the Mayor and City Council must include a clear 'public benefit fund' tax measure on the ballot, coupled with the regulatory framework. I have been very impressed with the City of Santa Ana's cannabis tax 'public benefit fund' that allocates funds to parks, libraries, and youth services. If the City of Huntington Beach proceeds with commercial cannabis business, I believe a ballot measure or ordinance must be considered to ensure all new tax revenue is allocated to services for the public good. Specifically, I believe the City should create a cannabis tax revenue fund for: 1. Youth services. In particular, the City's Human Relations Committee should be funded to ensure that public high schools in the district have sustained funding for the OC Human Relations Bridges Program, which I understand was recently defunded and removed from Huntington Beach High School. 2. Permanent Supportive Housing projects. 3. Grants for grassroots and community-based non-profits that are providing services to Huntington Beach residents. 4. Public libraries and park programs, such as the Makerspace in HBPL. Thank you, Jennifer Rojas SUPPLEMENTAL COMMUNICATION Meeting gate: ±L1222-a Agenda Iten,r�lo. 2 .2 2 �D/ Moore, Tania From: Cindi Lee <CLee@ovsd.org> Sent: Tuesday,July 19, 2022 12:27 PM To: supplementalcomm@surfcity-hb.org Cc: Fikes, Cathy; Delgleize, Barbara Subject: CC Mtg. 7/19/22 - OVSD Communication re Administrative Item 22-601 Attachments: CC 7-19-22 Writ. Corres..pdf Please see attached. Thank you. Cindi Lee, Executive .Assistant Office of the Superintendent OCEAN VIEW SCHOOL DISTRICT 17200 Pinehurst Lane Huntington Beach, CA 92647 (714) 847-2551, ext. 1309 clee@ovsd.ore School District _J O'VSD: ^where .Achievement and Relationships Natterl SUPPLEMENTAL COMMUNICATION Meeft Date:__„ 1 Agenda Item 140.• # I Qo Ocean View School District 11200 Pinehurst Lane, Superintendent Board of Trustees Huntington Beach,CA92647 Michael Conroy,Ed.D. Gina Clayton-Tarvin,President ��. Tel:714 847-2551 Patricia Singer,Vice President •Equity awl Fax:714 847-1430 Jack C.Souders,Clerk Excaenenov- Web:www.ovsd.org John Briscoe,Member Norm Westwell,Member SENT VIA ELECTRONIC TRANSMISSION SupplementalComm(u Surfcity-hb.orQ July 19, 2022 The Honorable Barbara Delgleize,Mayor, and Members of the City Council CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach,CA 92648 Re: City Council Meeting for July 19,2022 Administrative Item 22-601 Consider the Adoption of Resolutions to Place Cannabis Business Regulation and Taxation Measures on Ballot Dear Mayor Delgleize and City Councilmembers: The Ocean View School District does not have a position at this time on whether the City Council should go forward with a ballot measure concerning cannabis businesses regulation and taxation in the City of Huntington Beach. However,the school district requests that any ballot measure or regulation would provide a 1,000-foot buffer for all schools, including elementary and middle schools from any cannabis businesses operating within that area. We agree with the City Council's recommendation of July 5,2022,that all sensitive uses,especially uses that are likely to include minors such as schools, day care, and parks are protected by a 1,000-foot buffer. Thank you for your consideration of our request. Sincerely, Michael Conroy, D. Superintendent On behalf of the Aard of Trustees: Gina Clayton-Tarvin Board President Moore, Tania From: Jonatan Cvetko <jonatan@ucba.com> Sent: Tuesday, July 19, 2022 1:34 PM To: supplementalcomm@surfcity-hb.org Cc: CITY COUNCIL Subject: Re: Public Comment on Item#12 Cannabis Attachments: Huntington Beach Public Comment Item#24 Cannabis Regulatory Framework.pdf Thank you for catching that, please let me know if you have received it now. Jonatan Cvetko Executive Director U C B A UNITED CANNABIS BUSINESS ASSOCIATION On Tue, Jul 19, 2022 at 1:29 PM supplementalcommgsurfcity-hb.org <supplementalcommgsurfcity-hb.org> wrote: Mr. Cvetko, Please be advised that there was no attachment to your email. Thank you, Tania Moore, CMC Senior Deputy City Clerk City Clerk's Office 714-536-5209 SUPPLEMENTAL tania.mooreC@-surfcity-hb.org COMMUNICATION Mttlrtgte:I a From:Jonatan Cvetko<ionatan@ucba.com> Agenda Item No � , Irn) . Sent:Tuesday,July 19, 2022 1:26 PM i To:sugplementalcomm@surfcity-hb.org; CITY COUNCIL<city.council@surfcity-hb.org> Subject: Public Comment on Item#12 Cannabis Hello, Attached you will find our public comment for Item#12 regarding Cannabis taxation and regulations for tonight's meeting. Thank you for the consideration, Jonatan Cvetko Executive Director ::::::: U C B A ♦♦.; UNITED CANNABIS BUSINESS ASSOCIATION 2 U C B A UNITED CANNABIS BUSINESS ASSOCIATION 7/19/22 To: Huntington Beach City Council From: Jonatan Cvetko Executive Director United Cannabis Business Association RE: Item#12 Adoption of Resolutions for Cannabis Taxation and Regulation The United Cannabis Business Association is the premier cannabis trade association representing cannabis retailers throughout the state. UCBA advocates responsible and equitable cannabis policy both on a state and local level. With the overwhelming majority of local jurisdictions currently maintaining prohibition against legal cannabis activities, we wish to acknowledge and support the progress that the City of Huntington Beach continues to pursue in regulating locally. We strongly support and encourage the City Council to adopt the resolutions to both place a tax as well as a question of if to regulate in front of the voters for the November 8, 2022 election. We applaud the level of transparency that this process allows the residents in considering what is the most responsible policy for the city. Should the item be approved by the City Council, we look forward to engaging with the city and its residents as discussions around the regulation ordinance continue. We wish to thank the council for addressing a number of the concerns we brought forth, as well as point out there remain several very concerning issues to be addressed. Additionally, we are very pleased to see that the city is making an increased effort from previous to expand its outreach and education into the community on the complexity of cannabis regulations. We look forward to many more such meetings and thank you all for increasing the transparency and opportunity to interact on these discussions. Sincerely, Jonatan Cvetko Executive Director United Cannabis Business Association Moore, Tania From: dad2st@aol.com Sent: Tuesday,July 19, 2022 3:41 AM To: supplementalcomm@surfcity-hb.org Subject: Cannabis sales City Council I again URGE you all to vote NO placing on the ballot any future cannabis sales and taxation development in HB. The last thing we need is more people driving, walking, riding bikes and sitting all around town stoned on smoking weed. A reply will be appreciated Chuck Burns Huntington Beach 714 369-7384 SUPPLEMENTAL COMMUNICATION Meelling DaW:_ ol- Agenda Illem No.- Moore, Tania From: Fikes, Cathy Sent: Tuesday, July 19, 2022 9:50 AM To: Agenda Alerts Subject: FW:July 18, 2022 City Council Agenda Item 12 From: Pat Goodman <patgoodman@yahoo.com> Sent: Monday,July 18, 2022 9:29 PM To: Delgleize, Barbara <Barbara.Delgleize@surfcity-hb.org>; Posey, Mike<Mike.Posey@surfcity-hb.org>; Peterson, Erik <Erik.Peterson@surfcity-hb.org>; Carr, Kim<Kim.Carr@surfcity-hb.org>; Kalmick, Dan<Dan.Kalmick@surfcity-hb.org>; Bolton, Rhonda <Rhonda.Bolton @surfcity-hb.org>; Moser, Natalie<Natalie.Moser@surfcity-hb.org> Cc:CITY COUNCIL<city.council@surfcity-hb.org> Subject:July 18, 2022 City Council Agenda Item 12 Dear Mayor Delgleize and City Council Members, I have looked over the material that is provided in tomorrow night's city council agenda item 412. I did happen to vote in favor of the council setting the sale tax on cannabis sales. I am having second thoughts about my vote. I hope that you will not set any sales tax on cannabis at this time. I do agree in principle with the legalization and regulation of cannibis. The goal of regulating this product is to reduce the control and sales by the cartels and criminal elements. I think it is important to keep this goal in mind when setting policy. I would ask you to engage a financial analysis to compare the sales tax revenue with the additional tax vs. with the existing sales tax. My hunch is that the gross sales of regulated sales outlets would decrease dramatically if an additional tax was applied to their product. This would have the negative effect of driving business to the underworld, exactly what we are trying to prevent. I hope this makes sense to you. I think a financial analysis of the additional sales tax vs. no additional sales tax would inform you with the data you need to make the best decision. Please keep in mind the purpose of regulating this product is to eliminate the criminal element that currently exists. We may have to give up a bit of revenue, but it is the price we pay to reduce crime. SUPPLEMENTAL Thank you, I'm sure you'll make good policy on this issue. COMMUNICATION �,Y 22z.....�. i AOM,M m No.� (ool Patricia Goodman Huntington Beach, CA 2 Moore, Tania From: Yoon-Taylor, Grace on behalf of Cannabis Sent: Tuesday, July 19, 2022 11:48 AM To: supplementalcomm@surfcity-hb.org Subject: FW: City of HB Council Meeting on 2022-07-19: Item 12 Regarding Cannabis related ballot measures Attachments: CityofHB Agenda Packet - 2022-07-19.pdf From: Kim Flores<kimhanhflores@icloud.com> Sent:Tuesday,July 19, 2022 7:35 AM To: Cannabis<cannabis@surfcity-hb.org> Subject: Re: City of HB Council Meeting on 2022-07-19: Item 12 Regarding Cannabis related ballot measures Dear Ms. Yoon-Taylor: I am unable to attend today's meeting but, am still against Cannabis businesses due to the rising drug epidemic that we are fighting. I prefer to not have them open and to shut down the ones that are open in other cities, states, and countries because they do make their way to Huntington Beach. Thanks for keeping in touch with me. Sincerely, Kim On Jul 18, 2022, at 4:38 PM, Cannabis <cannabisgsurfcity-hb.org>wrote: Warm greetings! This is to inform you that the Huntington Beach City Council will be deliberating tomorrow, Tuesday, July 19, 2022 at 6pm at the Civic Center, Lower-level Council Chambers and via Zoom, to discuss two ballot measures— 1) cannabis regulation and 2) taxation and consider the adoption of resolutions to officially place these measures for the November General Election (Agenda Item #12: 22-601). You will also find revised GIS maps (not final; subject to change) for eligible locations. You can find the agenda packet on the City website here: https:Hhuntingtonbeach.legistar.com/Calendar.aspx. The public is welcome to speak during Public Comment in-person and via Zoom (Zoom Webinar ID: 971 5413 0528; specific instructions are included in the published Agenda packet, which is also attached here for your convenience —click the hyperlinks for staff reports and other materials). Thank you so much. SUPPLEMENTAL COMMUNICATION Agenda ftm No.. a� {. Grace Yoon-Taylor �{ Senior Administrative Analyst i Office of the City Manager City of Huntington Beach Phone: (714) 536-5910 Email: grace.goon-taylor@surfcity-hb.ora SurfCityBreak.com I Follow HB on Social Media This email transmission,and any documents,files or previous email messages attached to it,is CONFIDENTIAL,intended for the sole use of the individual and entity to whom it is addressed. It also may contain information that is protected by the attorney- client privilege and/or the attorney work product privilege. You are hereby notified that any dissemination,distribution,or duplication of this transmission by someone other than the intended addressee or his or her designated agent is STRICTLY PROHIBITED. If your receipt of this transmission is in error,please notify Grace Yoon-Taylor immediately by calling collect at 714-536-5910 and destroying the original transmission and its attachments without reading them,printing them or saving them to an electronic medium. Thank you. 2 A AGENDA City Council/Public Financing Authority Tuesday, July 19, 2022 4:00 PM Study Session /5:00 PM Closed Session 6:00 PM Regular Meeting Council Chambers MAYOR AND CITY COUNCIL 2000 Main Street STAFF BARBARA DELGLEIZE, Mayor Huntington Beach, CA 92648 AL ZELINKA, City Manager MIKE POSEY, Mayor Pro Tem MICHAEL E. GATES, City Attorney RHONDA BOLTON, Councilmember --Or-- ROBIN ESTANISLAU, City Clerk KIM CARR, Councilmember Virtual via Zoom Webinar ALISA BACKSTROM, City Treasurer DAN KALMICK, Councilmember NATALIE MOSER, Councilmember ERIK PETERSON, Councilmember IN-PERSON PUBLIC PARTICIPATION/ZOOM ACCESS: Members wishing to attend the meeting in person are encouraged to wear a face covering. Assembly Bill 361 (AB 361) authorizes public meetings to take place via teleconference (i.e., virtual using Zoom), or in person if in part, State and Local officials continue to recommend measures to promote social distancing. In addition to this hybrid format, alternate ways to view City Council meetings live or on-demand remain: livestreamed on HBTV Channel 3 (replayed on Wednesday's at 10:00 a.m. and Thursday's at 6:00 p.m.); live and archived meetings for on-demand viewing accessed from https://huntingtonbeach,legistar.com/calendar; or, from any Roku, Fire TV or Apple device by downloading the Cablecast Screenweave App and searching for the City of Huntington Beach channel. PUBLIC COMMENTS: Individuals wishing to provide a comment on agendized or non-agendized items, including Study Session, Closed Session, and Public Hearing, may do so in person by completing a Request to Speak form delivered to the City Clerk, or from a virtual location by entering Zoom Webinar ID 971 5413 0528 via computer device, or by phone at (669) 900-6833. The Zoom Webinar can be accessed here: https://huntingtonbeach.zoom.us/'/97154130528. Instructions for those utilizing computer devices to request to speak are provided in each section of the agenda where public comments are accepted. Members of the public unable to personally participate in the meeting but interested in communicating with the City Council on agenda-related items are encouraged to submit a written (supplemental) communication via email at Supplementa]Comm@Surfcity-hb.org, or City.Council(@Surfcity-hb.org. Supplemental Communications are public record, and if received by 2:00 PM on the day of the meeting, will be distributed to the City Council prior to consideration of agenda-related items, posted to the City website, and announced, but not read, at the meeting. Communications received following the 2:00 PM deadline will be incorporated into the administrative record. MEETING ASSISTANCE NOTICE: In accordance with the Americans with Disabilities Act, services are available to members of our community who require special assistance to participate in public meetings. If you require special assistance, 48-hour prior notification will enable the City to make reasonable arrangements for an assisted listening device (ALD) for the hearing impaired, American Sign Language interpreters, a reader during the meeting and/or large print agendas. Please contact the City Clerk's Office at (714) 536-5227 for more information. City Council/Public Financing AGENDA July 19, 2022 Authority 4:00 PM - COUNCIL CHAMBERS CALL TO ORDER ROLL CALL Peterson, Bolton, Posey, Delgleize, Carr, Moser, Kalmick ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS PERTAINING TO STUDY SESSION /CLOSED SESSION ITEMS (3 Minute Time Limit) -At approximately 4:00 PM, individuals wishing to provide a comment on item(s) scheduled for Study Session or Closed Session may do so either in person by filling out a Request to Speak form delivered to the City Clerk, via computer through Zoom Webinar ID 971 5413 0528, or Zoom Webinar by phone by calling (669) 900-6833. Once the Mayor opens Public Comments, in-person participants will be called to speak first. Zoom Webinar participants wishing to speak will be provided a 15-minute window to select the "Raise Hand" feature in the Webinar Controls section. Attendees entering the Webinar and requesting to speak by phone can enter*9 to enable the "Raise Hand" feature, followed by the*6 prompt that unmutes their handheld device microphone. Individuals will be prompted to speak when the Clerk announces their name or the last three digits of their phone number. After a virtual speaker concludes their comment, their microphone will be muted. All speakers are encouraged, but not required to identify themselves by name. Each speaker may have up to 3 minutes unless the volume of speakers warrants reducing the time allowance. STUDY SESSION 1. 22-628 Presentation on the Brown "Open Meetings" Act by the City Attorney's Office 2. 22-622 Review of the Budget including the Revenues and Expenditures Report RECESS TO CLOSED SESSION CLOSED SESSION 3. 22-621 CONFERENCE WITH LEGAL COUNSEL - LITIGATION (Gov. Code section 54956.9(d)(4).): Number of Matters: One (1) - City of Long Beach et. al v. Monsanto Company et. al. Case No. 2:16-cv-03493-FMO-AS. 6:00 PM— COUNCIL CHAMBERS RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING Page 1 of 5 City Council/Public Financing AGENDA July 19, 2022 Authority ROLL CALL Peterson, Bolton, Posey, Delgleize, Carr, Moser, Kalmick PLEDGE OF ALLEGIANCE INVOCATION In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. 4. 22-515 Deacon Matt Calabrese with St. Simon & Jude Catholic Church and member of the Greater Huntington Beach Interfaith Council CLOSED SESSION REPORT BY CITY ATTORNEY AWARDS AND PRESENTATIONS 5. 22-594 Mayor Delgleize to call on the Huntington Beach Marine Safety Division to honor Junior Lifeguard Elizabeth Felten for her heroic act of saving the life of a six-year-old boy 6. 22-523 Mayor Delgleize to present the June Mayor's HB Excellence Award to Milan Vukoje, Supervisor of Parking / Camping Facility in the Community and Library Services Department 7. 22-607 Mayor Delgleize to present the July Mayor's HB Excellence Award to Jimmy Hoang, Code Enforcement Supervisor in the Community Development Department ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS (3 Minute Time Limit) -At approximately 6:00 PM, individuals wishing to provide a comment on agendized or non-agendized items may do so either in person by filling out a Request to Speak form delivered to the City Clerk, via computer through Zoom Webinar ID 971 5413 0528, or Zoom Webinar by phone by calling (669) 900-6833. Once the Mayor opens Public Comments, in-person participants will be called to speak first.Zoom Webinar participants wishing to speak will be provided a 15-minute window to select the "Raise Hand" feature in the Webinar Controls section. Attendees entering the Webinar and requesting to speak by phone can enter*9 to enable the "Raise Hand"feature, followed by the *6 prompt that unmutes their handheld device microphone. Individuals will be prompted to speak when the Clerk announces their name or the last three digits of their phone number. After a virtual speaker concludes their comment, their microphone will be muted but they may remain in Webinar attendance for the duration of the Page 2 of 5 City Council/Public Financing AGENDA July 19, 2022 Authority meeting. All speakers are encouraged, but not required to identify themselves by name. Each speaker may have up to 3 minutes unless the volume of speakers warrants reducing the time allowance. While the City Council welcomes public involvement and free speech, it rejects comments from anyone that are discriminatory, defamatory or otherwise not protected speech. Those comments will not inform nor be considered by the City Council and may be cause for the Mayor to interrupt the public speaker. Such public comments will not be consented to or otherwise adopted by the City Council in its discussions and findings for any matter tonight. COUNCIL COMMITTEE -APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES CITY MANAGER'S REPORT CONSENT CALENDAR 8. 22-615 Approve and Adopt Minutes Recommended Action: Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated July 5, 2022. 9. 22-236 Reaffirm adoption of Resolution No. 2021-62 finding a proclaimed state of emergency continues to impact the ability to meet safely in person, and allows meetings of the City Council and all City boards, commissions and committees to be conducted remotely as needed in compliance with new Brown Act provisions identified in Assembly Bill 361 Recommended Action: Reaffirm Resolution No. 2021-62, "A Resolution of the City Council of the City of Huntington Beach, California, Finding that the Proclaimed State of Emergency Continues to Impact the Ability to Meet Safely in Person." 10. 22-597 Appropriate funds for emergency maintenance repairs at Warner Fire Fuel Station located at 3831 Warner Avenue Recommended Action: A) Appropriate $550,000 in Transfers Out from FY2021/22 General Fund year-end surplus to the Infrastructure Fund; and, B) Appropriate $550,000 from the Infrastructure Fund to account 31440006.82800. 11. 22-568 Approve one or more reappointments of Jet Noise Commissioners Page 3 of 5 City Council/Public Financing AGENDA July 19, 2022 Authority Keith Bohr, Phil Burtis, Jeff Morin, Chris Kunze, Michael Bourgeault, David Porter, and Mario Tabernig, as recommended by City Council Liaisons Barbara Delgleize and Rhonda Bolton Recommended Action: A) Approve the reappointment of Keith Bohr, Phil Burtis, and Mario Tabernig to the Jet Noise Commission as approved by Council Liaisons, Barbara Delgleize and Rhonda Bolton, with terms set to expire on December 31, 2024; and/or, B) Approve the reappointment of Jeff Morin, Chris Kunze, Michael Bourgeault, and David Porter to the Jet Noise Commission as approved by Council Liaisons, Barbara Delgleize and Rhonda Bolton, with terms set to expire on December 31, 2026. ADMINISTRATIVE ITEMS 12. 22-601 Consider the Adoption of Resolution Nos. 2022-48, 2022-49, 2022-46, and 2022-47 to place Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval Recommended Action: A) Consider two proposed cannabis ballot measures (for regulation and taxation) and ballot language for placement on the November 8, 2022 General Municipal Election ballot; and, B) Adopt Resolution No. 2022-48, "A Resolution of the City Council of the City of Huntington Beach, California, Ordering the Submission to the Qualified Electors of the City of a General Tax Measure for the Submission to the Qualified Voters of a Proposed Ordinance Adding Chapter 3.25 to Title 3 of the Huntington Beach Municipal Code, Establishing a General Tax on Cannabis Businesses Operating within the City of Huntington Beach and an Advisory Measure Regarding the Regulation of the Commercial Cannabis Businesses at the General Election to be held on Tuesday, November 8, 2022, as Called by Resolution No. 2022-39 "; and, C) Adopt Resolution No. 2022-49, "A Resolution of the City Council of the City of Huntington Beach, California, Adding Two Additional Measures to the Request to the Board of Supervisors of the County of Orange to Consolidate A General Municipal Election to be held on November 8, 2022, with the Statewide General Election to be held on the Date Pursuant to § 10403 of the Elections Code"; and, D) Adopt Resolution No. 2022-46, "A Resolution of the City Council of the City of Huntington Beach, California, Setting Priorities for Filing Written Arguments and Impartial Analyses Concerning Regulation and Taxation of the Commercial Cannabis Businesses within the City of Huntington Beach"; and, E) Adopt Resolution No. 2022-47, "A Resolution of the City Council of the City of Page 4 of 5 City Council/Public Financing AGENDA July 19, 2022 Authority Huntington Beach, California, Providing for the Filing of Rebuttal Arguments for City Cannabis Regulation and Taxation Measures Submitted at Municipal Elections"; and, F) Provide any additional direction on commercial cannabis regulatory framework as the Ad Hoc Subcommittee and City staff continue to work on regulatory and land use ordinances. COUNCILMEMBER COMMENTS (Not Agendized) ADJOURNMENT The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, August 2, 2022, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http:l/www.huntingtonbeachca.gov Page 5 of 5 Moore, Tania From: Yoon-Taylor, Grace on behalf of Cannabis Sent: Tuesday,July 19, 2022 11:49 AM To: supplementalcomm@surfcity-hb.org Subject: FW: Cannabis -----Original Message----- From:Sue Gordon<suejanegordonl@gmail.com> Sent: Saturday,July 9, 2022 7:27 AM To: Cannabis<cannabis@surfcity-hb.org> Subject: Cannabis To all City Council members, I support the city's efforts to bring additional revenue to the city via cannabis shops. Santa Ana has been getting revenue from cannabis shops for years. I'd rather have my tax dollars supporting Huntington Beach. I'm certain many more of us residents feel the same way. Sincerely, Sue Gordon Huntington Beach resident Sent from my Wad SUPPLEMENTAL COMMUNICATION M : Agency 14 z No-L Moore, Tania From: Yoon-Taylor, Grace on behalf of Cannabis Sent: Tuesday,July 19, 2022 12:35 PM To: supplementalcomm@surfcity-hb.org Subject: FW: open letter to the city council From: M. Kircher<bbfan4lif@aol.com> Sent:Tuesday,July 19, 2022 12:04 PM To:Cannabis<cannabis@surfcity-hb.org> Subject:open letter to the city council I recently read an article in the July 14, 2022 edition of the Huntington Beach Wave, regarding the council's pot tax and sales legalization efforts. While I agree that if sales are legalized in Huntington Beach, they should be taxed I do not think it is a direction that the city should go, and am expressing my strong opposition to any move by the city council to legalize or place on the ballot to legalize marijuana. I voted in support of the recent ballot question only on the basis that it was not tied to any effort to legalize marijuana. I agree with the rationale that if it is legal, it should be taxed. However, legalization brings a whole host of problems with it. First, since legalization here In California alone the illegal marijuana market has not disappeared as proponents suggested. In fact, it has continued, in some aspects gotten worse, with the influx of marijuana that overflows from growers from over saturating the legal market onto the black market, has introduced marijuana to the black market with a higher THC content than ever before. Violence continues in that environment as growers and distributors fight for access and control. The sale, possession and distribution of marijuana remains unlawful under federal law. Public use of marijuana is illegal under state law, however you can go downtown as I did over the 4th of July weekend and be subjected to people openly smoking marijuana inside the carnival area, right next to kids, by the food trucks and the music stage, with no HBPD in sight. During my twenty year career with the California Highway Patrol, I dealt with thousands of people who had recommendations for medical marijuana, many of which admitted just getting a recommendation so they could smoke pot. In my time I only encountered one person who had the state issued marijuana card. This is a testament to the ineffectiveness of the states system and the fallacy of the compassionate use act. There are several CBD shops downtown main street, which I know are distributing to people under 21. 1 know this for a fact because my seventeen-year-old son has gotten it there. These are businesses that are permitted and licensed by the city, which are openly violating the law. In probably the most heavily trafficked area of the city by visitors and tourists. Since, ballot measure A was defeated I think the city council should glean two things from that vote. The residents of the city do not want marijuana businesses taxed and more importantly they don't want marijuana legalized here. I sure don't, and if we aren't going to tax it why would we legalize it. I want no sales of any kind of marijuana, and no distribution businesses. I do not oppose non-retail cannabis businesses that are restricted to testing. The current proposal to allow businesses to be within 600 feet of a park or elementary school, 1000 feet from a middle or high school is an insufficient restriction on exposure. I would suggest no closer than '/2 mile to any day care, park or school with students under 18. If people want it that bad they can go to Santa Ana, Costa Mesa or anywhere but here in the city. Sincerely, Michael Kircher SUPPLEMENTAL California Highway Patrol (Ret) COMMUNICATION 9767 Cornwall Drive 9 Dais; Huntington Beach ---r--r--7�lL Agenda Ham No., �/ (aaz- loQ/� Moore, Tania From: Levin, Shannon Sent: Tuesday, July 19, 2022 12:44 PM To: supplementalcomm@surfcity-hb.org Subject: FW: AGENDA ITEM NO. 12 Regarding Cannabix Business Regulation and Taxation Measures Attachments: HB City Council.pdf From: a089300@gmail.com <a089300@gmail.com> Sent:Tuesday,July 19, 2022 12:02 PM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject:AGENDA ITEM NO. 12 Regarding Cannabix Business Regulation and Taxation Measures Please see the attached letter. Thank you. Gary Wolfe a089300@Rmaii.com SUPPLEMENTAL COMMUNICATION Meaft Data:�T a ter.► ,�.;.,,,,� �1 _.. July 19,2022 TO:Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval (July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: 7 Signatu Moore, Tania From: Levin, Shannon Sent: Tuesday,July 19, 2022 12:45 PM To: Yoon-Taylor, Grace; supplementalcomm@surfcity-hb.org Subject: FW:Agenda Item No. 12 Regarding Cannabis Business Registration and Taxation Measures on November 8, 2022 General Municipal Election Ballot for Voter Approval From: LINDA LIM <thu.lim2007@yahoo.com> Sent:Tuesday,July 19, 2022 12:26 PM To:CITY COUNCIL<city.council@surfcity-hb.org> Subject:Agenda Item No. 12 Regarding Cannabis Business Registration and Taxation Measures on November 8, 2022 General Municipal Election Ballot for Voter Approval Dear Honorable Mayor Delgleize and members of the City Council, Please consider our attached letter. Thank you and best regards, SUPPLEMENTAL COMMUNICATION IUIeF9ft Date: 7/I /'-?o 2a �....._ AgeM�a Item No. oq 6-0/) .,.... 1 Linda and Lim Choi 2 0 1 July 19,2022 TO:Huntington Beach City Council(City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM N0.12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval(July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70)FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locationai criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach/ f Name: c " Street Name/Email: r'airp-vn 1kA,"_ / " ��m ? (2 im ( ' Si ature: (% Moore, Tania From: Levin, Shannon Sent: Tuesday, July 19, 2022 12:45 PM To: supplementalcomm@surfcity-hb.org;Yoon-Taylor, Grace Subject: FW: Cannabis Business Regulation From: Damon Kubas<dkubas@elitehoa.com> Sent:Tuesday,July 19, 2022 12:26 PM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject:Cannabis Business Regulation SUPPLEMENTAL COMMUNICATION Meeting Date: hq Agenda Item No.• t/o2 0/�, July 19, 2022 TO: Huntington Beach City Council (City-Council( SUBJECT: AGENDA ITEM NO. 12 regarding Cann; Taxation pleasures on the November B, Ballot for voter Approval (July 19, 20212 Dear Honorable Mayor Delgleize and members of As residents of Huntington Beach, we are OUTrA proposing to allow for cannabis cultivation, mans industrial area south of Ernest Drive, east of Gold Avenue, and west of Gothard Street There has been NO direct public outreach to our i ordinance presented to the City Council on July 5, criteria that would allow cannabis businesses as 4 our backyards. we object in the strongest way to the odors and traffic generated by cannabis uses ; that accompany these dish uses, especially so clo: children live and play. 2 July 19,2022 TO:Huntington Beach City Council(City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO.12 Regarding Cannabis Business Regulation and Taxation Measures on the November S,2022 General Municipal Election Ballot for Voter Approval(July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70)FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach I Name: -"e& Npc a4 4"m !?. Street Name/Email: r'air-pa-v - / tom, Lim -22�a7 J�' �oo. Signature: aJ J Moore, Tania From: Fikes, Cathy Sent: Tuesday,July 19, 2022 1:27 PM To: Agenda Alerts Subject: FW:#12 Cannabis Business Regulation For Today's City Council Meeting Attachments: Cannabis Business Signed Petition 071922.pdf From:Alexandros Bletsos<labeda77@yahoo.com> Sent:Tuesday,July 19, 2022 12:47 PM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject:#12 Cannabis Business Regulation For Today's City Council Meeting City council, Attached is the signed petition disapproving of the allowing a Cannabis business to be setup in my neighborhood. Regards, Alex Alexandros Bletsos, S.E. Spire Structural Engineering Inc. Personal Email: labeda77kyahoo.com Work Email: abletsoskspirestructures.com SUPPLEMENTAL COMMUNICATION Meaft Date: �a- .hem No.:_ /� �a�-boo/ July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Alexandros Bletsos Street Name/Email: 18562 Garnet Lane, Huntington Beach, 92648 / labeda77@yahoo.com Signature: ALQ,/� B� Moore, Tania From: Fikes, Cathy Sent: Tuesday,July 19, 2022 2:11 PM To: Agenda Alerts Subject: FW: Letter to HB City Council - do not want any cannabis businesses near any residential community! Attachments: No cannabis businesses near residential communities.pdf From: Davida Milo<davidajoan@yahoo.com> Sent:Tuesday,July 19, 2022 1:54 PM To:CITY COUNCIL<city.council@surfcity-hb.org> Cc: Davida Joan Milo-me<davidajoan@yahoo.com> Subject: Letter to HB City Council-do not want any cannabis businesses near any residential community! City Council, Please see attached. Thank you, -Davida Milo davidaloankyahoo.com SUPPLEMENTAL COMMUNICATION Maw Date— Agenda 40M NO.- July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY,we urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards.Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Undersigned resident of Huntington Beach Name:�i i�/'G���"��!D ��'��S� Street Name/Email: / 1970 q n, Signature: July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY,we urge the City Council to amend locational criteria to egg the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue, and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards.Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Undersigned resident of Huntington Beach Name: Street Name/Email: f f7 o,�AM OA056/tl d gvgT)D AV-9 Attu;(AM Signature: Moore, Tania From: Fikes, Cathy Sent: Tuesday,July 19, 2022 2:11 PM To: Agenda Alerts Subject: FW: No on new Cannabis proposal Attachments: Eliminate Proposed Cannabis Zones HB-1.docx From:susan Silva <juliaarts4@yahoo.com> Sent:Tuesday,July 19, 2022 2:10 PM To: CITY COUNCIL<city.council@surfcity-hb.org>; carriealines@gmail.com Subject: No on new Cannabis proposal Please reconsider...see attached. Sent from Yahoo Mail on Android i July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach, we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards. We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY, we urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards. Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Susan Silva and David Silva Undersigned resident of Huntington Beach Name: Susan Silva Street Name/Email: 18645 Ambrose Lane, Huntington Beach, CA 92648 Signature: Susan Silva Moore, Tania From: Levin, Shannon Sent: Tuesday, July 19, 2022 2:19 PM To: supplementalcomm@surfcity-hb.org; Cannabis Subject: FW: Part 1 -AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Attachments: Eliminate Proposed Cannabis Zones HB Part I.pdf From:Carrie Lines<carriea lines @gmail.com> Sent:Tuesday,July 19, 2022 2:18 PM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject: Part 1-AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) July 19, 2022 TO: Huntington Beach City Council (City.Council Psurfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. i We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: SEE ATTACHED LIST Street Name/Email: SEE ATTACHED LIST Signature: SEE ATTACHED LIST 2 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July S, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: SEE ATTACHED LIST Street Name/Email: SEE ATTACHED LIST Signature: SEE ATTACHED LIST fA J, C-D P D (• R' rA .l �^ � m m ti c—s s0 rk ti z C Z P lk C,9 rn -1 tL rTIt n n to C July 19,2022 TO:Huntington Beach City Council(City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO.12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval(July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street- There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70)FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected.to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street Sincerely, Undersigned residents of Huntington Beach Name: �� �G�5C/0 71�V( T P—i Street Name/Email: ( � 3 s A -FiA c� C /e f- 23 Signature: / July 19,2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name:7-COCi1 1 cA��\ V Q--J � ' Street Name/Email: �I� J 'FCC v�� /y m�iL�i�- �✓ (l�,{f� �_YY�n Signature- 1 SUBJECT; AGENDA ITEM NO, 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval(July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70)FEET from our backyards. We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. the City Council to amend locational criteria to gp*;RF.}%'t�".a':x�' �3t?�'_°.a..:?St..W`.r_::Bb..:'1'Li,s..w+.+,..�.. _. _ ... :. :....rad.hwnaw:ua..r: ,.:sa,:w:..wrr:.r rsHiu:&rsiNtkl�4t:WlhP�lu."'ri,•. eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of z � ' Gothard Street. Sincerely, : Undersigned residents of Huntington Beach Name: r` �R ," �: �-;�' Y, ` StreetName/Eraail: c?4bfi � • 5 ' { .f-r { �� Signature: r a , We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach .r- Name: P\j Street Name/Email: j q j � Signature: 7 hOtrn -e Stre e+ July 1'9 OW, < Canna SIURJECT'AG A 1TfM s on the 1 �� Ee tat E3allot for Voter n MAW*Of the L . oew�%' LJT i 7 r ) r x y k a ED As C'tlftTVattt7n, man .� . south ut pmcst Drive"a:�« Gartield Aventie, and O Thew has tvcn NO direct pub1k,-0W=Ch tO our community about the draft oMb Pi)eSCnW to the cif Council on July 5, 2022 which includes WA60MI car te�a- that would allow cannabis busing as clasC as SEVENTY(70) FEET from our bnkyards, We object in the stwngest way to the public health issues related to the Odors and t generated by cannabis uses welt as is the public safety issues that acoompany tl"se cash uses, especially so close to the homes ,where we and our children live and play. Further, mews showing that the area behind our homes would be intpacted have ONLY BECOME AVAILABLE in '= matenals available with the agenda fOt this UY 19, 2022 `meeting. This blatant lack of b-ansparency is repmhensilble and not at all in keeping with good 90VCMaDCC of the Cif consftents that you have been elected to server A' J �. �•, �i � F4- ;4. y ,dUr r. '2��'�1' X iP Switzer, Donna From: Hopkins, Travis Sent: Tuesday, July 19, 2022 3:39 PM To: Esparza, Patty; Estanislau, Robin; Lesinski, Dana; Moore, Tania; Switzer, Donna Subject: FW: Petition Against, City Council Agenda Item# 12, 7-19-2022 Attachments: City Proposal July 19, 2022pdf(1).pdf Communication for City Council meeting From:Temple Carl<temple1016C«@vahoo.com> Sent:Tuesday,July 19, 2022 2:49 PM To: Parra, Eric<EParra@hbpd.org> Subject: Petition Against, City Council Agenda Item#121 7-19-2022 Chief Parra, I am a Huntington Beach resident since 1989. 1 reside in Seagate neighborhood. I have attached a petition against Agenda Item# 12 on tonight's City Council agenda. You may or may not be in attendance at tonight's City Council meeting. If asked, I am confident your long history of public safety would be a valuable perspective regarding this motion and the impact to residents of the Seagate and surrounding neighborhoods.. Sincerely, Carl J. Temple 18743 Stratton Lane temple1016 yahoo.com 714.402.7922 1 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: Switzer, Donna From: Fikes, Cathy Sent: Wednesday,July 20, 2022 12:43 PM To: Agenda Alerts Subject: FW: My Public Comments Last Night -- added statements Attachments: Ada Hand's comments.docx -----Original Message----- From: Ada Hand<adajhand@icloud.com> Sent:Wednesday,July 20, 2022 10:54 AM To: CITY COUNCIL<city.council@surfcity-hb.org> Cc:Ada Jeanne Hand<adajhand@gmail.com> Subject: My Public Comments Last Night--added statements Here are my full comments from last night's city council meeting. I did not get a chance to say the last paragraph. Nevertheless, I see that the prior requests/motions by the MH Advisory Board have come to naught since you neglected to add a Market Rate Survey of MHPs to the July Agenda. Shame on you all.Are you scared of what you might find? 1 Ada Hand's Public Comments on 7/19/22 My name is Ada Hand and I have resided in Del Mar Mobile Home Park (MHP) for 8 years. In 2002 the City funded a comprehensive Market Study of Huntington Beach mobile home parks. It included information on who owned the parks, park rents & amenities, financial neediness of some residents, size of families in the homes, and other important information that educated city council members of the resources and needs of MH residents. In the absence of a city-funded study, owners of parks—especially those out-of-state conglomerates—conducted their own "market surveys" that compiled rent data for only the most expensive MH parks in Huntington Beach + an expensive park in Fountain Valley and an apartment complex. They state that their exorbitant rates were well within market rates, when in fact they did not factor in the 8 other MHPs in Huntington Beach that are family-owned. If considered, inclusion of those parks and excluding the Fountain Valley MHP and the apartment complex would have shown unequivocally that their rents were well above the average. They used this fictitious "study" to justify their unfair rent increases. MHAB member MaryJo Baretich and I met last autumn with city staff and with Chapman University researchers who would consider applying for a Request for Funding. MaryJo and I offered substantive recommendations on the data sets that should be included in the City's study to inform City Council members and staff about the factual situations for MH residents. • At the January 24th meeting of the MHAB, a motion passed to include the request for a 2022 MH Market Study in the Annual Report for the City's consideration. • In the 2021 Annual Report submitted to the City Council in January 2022, the MHAB requested a budget for the Mobile Home Park Market Study be submitted to the City Council. • At the April 24th MHAB Allie Plum requested the next meeting include a review by city staff of progress for the Market Study that was approved at the January MHAB meeting. I sincerely hope that the agenda for next week's MHAB meeting includes a status report on what cost the city is considering to fund a comprehensive market study of MH parks. To not do so would show a flagrant disregard to gather facts that affect MH parks and residents. I believe to not do so would also show favoritism to those organizations that support skyrocketing rents for MHP residents. Such is what occurred in Anaheim when the Chamber of Commerce virtually ran the city and eventually was found out during an FBI probe. Switzer, Donna From: Fikes, Cathy Sent: Wednesday,July 20, 2022 12:42 PM To: Agenda Alerts Subject: FW: Pot Shops From:cclustka@socal.rr.com <cclustka@socal.rr.com> Sent:Tuesday,July 19, 2022 7:49 PM To:CITY COUNCIL<city.council@surfcity-hb.org>; Delgleize, Barbara<Barbara.Delgleize@surfcity-hb.org>; Bolton, Rhonda <Rhonda.Bolton@surfcity-hb.org>; Bolton, Rhonda<Rhonda.Bolton @surfcity-hb.org>; Bolton, Rhonda <Rhonda.Bolton @surfcity-hb.org>; Bolton, Rhonda <Rhonda.Bolton @surfcity-hb.org>; Bolton, Rhonda <Rhonda.Bolton@surfcity-hb.org> Cc: kathy92648@gmail.com; Bolton, Rhonda<Rhonda.Bolton@surfcity-hb.org>; Bolton, Rhonda <Rhonda.Bolton @surfcity-hb.org>; Bolton, Rhonda <Rhonda.Bolton @surfcity-hb.org> Subject: RE: Pot Shops Why the hell bring in this sht to our City??? We have enough f d up people all over the place. Ya lets get more people high. Why????? $$$from lobbyists. Look who's driving it. Kaldick.........bought,corrupt. Just another stupid move to fk up this city even more. Chip Clustka ON AIR W.C. 213-305-1970 Mobile From:cclustka@socal.rr.com <cclustka@socal.rr.com> Sent:Tuesday,July 5, 2022 9:16 PM To: 'city.council@surfcity-hb.org' <city.council@surfcity-hb.org>; 'Delgleize, Barbara'<Barbara.Delgleize@surfcity- hb.org>; 'RHONDA.BOLTON@SURFCITY-HB.ORG'<RHONDA.BOLTON@SURFCITY-HB.ORG>; 'RHONDA.BOLTON @SURFCITY-HB.ORG'<RHONDA.BOLTON@SURFCITY-HB.ORG>; 'RHONDA.BOLTON@SURFCITY- HB.ORG' <RHONDA.BOLTON@SURFCITY-HB.ORG>; 'RHONDA.BOLTON@SURFCITY-HB.ORG' <RHONDA.BOLTON @SURFCITY-HB.ORG>; 'RHONDA.BOLTON@SURFCITY-HB.ORG' <RHONDA.BOLTON@SURFCITY- HB.ORG> Cc: 'kathy92648@gmail.com' <kathy92648@gmail.com>; 'RHONDA.BOLTON@SURFCITY-HB.ORG' <RHONDA.BOLTON @SURFCITY-HB.ORG>; 'RHONDA.BOLTON @SURFCITY-HB.ORG' <RHONDA.BOLTON@SURFCITY- H B.ORG>; 'RHONDA.BOLTON @SURFCITY-H B.ORG' <RHONDA.BOLTON@SURFCITY-HB.ORG> Subject: RE: BOLTON-UNELECTED!!!! BOLTON UNELECTED BOLTON UNELECTED!!!!!M! Win an election fairly and you get a voice. Until then sht the f up! What's your endgame here??? HMMMMM. BOLTON - U N ELECTED ! ! Chip Clustka ON AIR W.C. 213-305-1970 Mobile 1 From: cclustka@socal.rr.com<cclustka@socal.rr.com> Sent:Tuesday,July 5, 2022 9:11 PM To: 'city.council@surfcity-hb.org'<city.council@surfcity-hb.ore>; 'Delgleize, Barbara' <Barbara.Delgleize@surfcity- hb.orp,> Cc: 'kathy92648@gmail.com'<kathv92648@gmail.com> Subject: RE: BOLTON-UNELECTED!!!! BOLTON UNELECTED Thought it couldn't get any worse. Now we truly see why you "selected" Bolton. Barbara whats up your ass w/ Gates?????????? You are all a disgrace!! Bolton, shut the f up,you are unelected,you have no right!!!!!!!!!!!!!!!!!!! Chip Clustka ON AIR W.C. 213-305-1970 Mobile From: cclustka@socal.rr.com<cclustka@socal.rr.com> Sent:Wednesday,June 8, 2022 10:17 PM To: 'city.council@surfcity-hb.org' <city.council@surfcity-hb.org>; 'Delgleize, Barbara' <Barbara.Deleleize@surfcity- hb.org> Cc: 'kathy92648@gmail.com'<kathv92648@gmail.com> Subject: Item 8 City Charter Barbara, See the email you sent to almost 1 year ago, below. After listening to all last Night 2 people summed it up perfectly. 1. An articulate women said...you used the Charter when it was convenient take away the peoples vote and select a non-elected lib to the council that would secure a majority vote on an agenda that is not in line with the majority of HB. But now want to change the charter to again...take away the vote/voice of the people. 2. An articulate man said that with your FLIP,you were a huge part of all this anger and distrust. It was YOU that started all this animosity. He was so correct. I don't know how you sleep at night, especially after last nights meeting. Holy Sh--! I really don't know how, other than the power and the adulation, by few,would go along with all this. How could you flip? You knew what was right, but your pal got in your ear. I wish we could all know what was said to make you take such a drastic turn. The promise of more power, as you watch your pal run for Senate?? What a curse, I would hope just for your sanity,you dread making that decision ...again to take away the vote of your fellow HB residents and select a person that is 180 degrees different than who this 40K plus voted for. Guess all I can do is pray for you because this political world is taking you to very bad places. Personally, I could never do the political thing,too much evil,too much corruption,too much B.S. I hate that I have to send these messages, it eats me up as well. You really need to check yourself,or it just may be too late. Very very disappointing. Lastly at the Memorial ceremony all the Council was introduced, not a single clap, Gates intro, huge applause...........hmmmmmmmmm. I hope you are able to find a good path. From: Delgleize, Barbara <Barbara.Delgleize@surfcity-hb.org> Sent: Monday,July 26,2021 11:17 PM To: cclustka@socal.rr.com Subject: Re: Special Election 2 You and I have known each other for a long time. Please know that this will make more sense in about 4-6 months. ??????????????????????????????? It's okay if you don't believe I know you'll you understand at. ????????? Chip Clustka ON AIR W.C. 3 Switzer, Donna From: Fikes, Cathy Sent: Wednesday,July 20, 2022 12:42 PM To: Agenda Alerts Subject: FW: Cannabis Business Regulation Attachments: City Proposal July 19, 2022.pdf From: Danny Nguyen <dan.mnguyen911@gmail.com> Sent:Tuesday,July 19, 2022 5:27 PM To:CITY COUNCIL<city.council@surfcity-hb.org> Subject: Cannabis Business Regulation Please reconsider for the kids sake in the neighborhood. Best Regards, Danny Nguyen. i July 19, 2022 TO: Huntington Beach City Council(City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval(July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: '�C4NxJ v8'wv-Aac //�� / Street Name/Email: 106q� i^1O�lC U'( � 14D t/G�C�y!_ ry17h J U 017 q// Signature: �'//�Gtiif LA771 Switzer, Donna From: Fikes, Cathy Sent: Wednesday,July 20, 2022 12:37 PM To: Agenda Alerts Subject: FW: Part 1 -AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Attachments: Eliminate Proposed Cannabis Zones HB Part I.pdf From:Carrie Lines<carriealines@gmail.com> Sent:Tuesday,July 19, 2022 2:18 PM To:CITY COUNCIL<city.council@surfcity-hb.org> Subject: Part 1-AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) July 19, 2022 TO: Huntington Beach City Council (City.Council 0surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. i We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: SEE ATTACHED LIST Street Name/Email: SEE ATTACHED LIST Signature: SEE ATTACHED LIST 2 July 19, 2022 TO: Huntington Beach City Council (City.Council @surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street, north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: SEE ATTACHED LIST Street Name/Email: SEE ATTACHED LIST Signature: SEE ATTACHED LIST :? LA > � 2 S "Ib zi— CID CIL 411, N a o� —� m Nl- Un Cot Q ,� _ T r k1w '- fib VI .� z Z D � f 1_� _. � � /ter• 1� zi lk r c� rn rn All � s m rTIt ry D n n N '� z July 19,2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: I rCC_ r'0� Street Name/Email: m \L�`� �✓ ���,�fl (,u�ln'� Signature- 9 July 19,2022 TO:Huntington Beach City Council(City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO.12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval(July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70)FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected.to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street north of Garfield Avenue,and west of Gothard Street Sincerely, Undersigned residents of Huntington Beach Name: r12A N 5 CIO Street Name/Email: 3 S�+ 'D1tCR t'w� Signature: / to SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval(July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue, and west of Gothard Street. P - There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July S,2022 which includes locational criteria that would allow cannabis businesses as close as � . SEVENTY(70)FEET from our backyards. We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19,2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. -prge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive,east of $ Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. . Sincerely, h �" fi Undersigned residents of Huntington Beach Name: street Name/Email: 5 jA w o o Signature: We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: ,qUj Street Name/Email: Signature: xcIrn -C Street 20 22 77 $usitum. Rtaulatkv aftd -�,�vcmw 8, 2022 Taxat r+ casures on # Ks�11t7t fir voter =� �� vat Cju�y.. # + ,. iL id j. Cuh1vatio], ma south cri`1.me st Drivti. Garf eld Avenue. and West ofGothod S ,'here has N•e:n NO direct public:cuvwch W our community about the draft ordimce pescntcd to the, cif Council on Juty 5, 2022 which includes k►cat oral ctiicri& that Would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards, we abject the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live aund Play. Further, maps showing that the Jarea be our ro cur�1 would be impacted have ONLY BECOME AVAILABLE in materials available with the agen.da for this DUTY 19, 20 meeting. 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Yu � j wYl #j^ta� ,: s •'i'm+a �'..j �' �"t} te'4a,:;, 'Y�,,,�at7 �5 $rkF kd1"�a`r '1`'et Y..,rtt i`SftT:y.,ti ✓.4,'%, h sya yr apt s R� r r� " u dtwi b is r A Y s F +�c1ur .� .. fy `t`s = r x i a•r4�° R�.s�^ e s'�� )a''§;.,� f" y^y",?skCr r Yi"�•,x 'a ,7+,.� 'Y•4 ' "i�,t,�#}y.'x `r;t4'n �Z x` r J• �S Ss {, -7'l �x u��u � } .�. ���� �+'w�sti �Y�-.t •i+ �� ���z�h y Y F t.. f P' +' C aJ"..� `,�.`;�.�t �t�- t f: �`i . X u'dt' "�t y, xp�t �t.. R'?�.�ya �„��Y,t s� -.4 t�.�'���,�.�y,�•� r � �. . Switzer, Donna From: Carrie Lines <carriealines@gmail.com> Sent: Tuesday, July 19, 2022 2:22 PM To: CITY COUNCIL Subject: Part II - AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Attachments: Eliminate Proposed Cannabis Zones HB Part Il.pdf Please see additional attached letters from HB residents regarding today's July 19 City Council agenda item. On Tue, Jul 19, 2022 at 2:17 PM Carrie Lines <carriealineskgmail.com>wrote: July 19, 2022 TO: Huntington Beach City Council (City.Council @surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. i Sincerely, Undersigned residents of Huntington Beach Name: SEE ATTACHED LIST Street Name/Email: SEE ATTACHED LIST Signature: SEE ATTACHED LIST 2 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July S, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses, especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY,we urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards.Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Undersigned resident of Huntington Beach Name: D 14-11 " n ► if-.J Street Name/Email: 24rnbr^ose L.—,AY) wLED ® a0l. C ew) t Signature: 4 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach, we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY,we urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue,and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards.Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Undersigned resident of Huntington Beach Name: Street Name/Email: Pmi f"Qs e (a n,e, 1,e5L�art,'e/(j� �Qa CV •C orb Signature: Switzer, Donna From: Carrie Lines <carriealines@gmail.com> Sent: Tuesday, July 19, 2022 2:38 PM To: CITY COUNCIL Subject: Part III -AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Attachments: Eliminate Proposed Cannabis Zones HB 3.pdf Please see additional attached letters from HB residents regarding today's July 19 City Council agenda item - Part 3 On Tue, Jul 19, 2022 at 2:21 PM Carrie Lines <carriealinesga gmail.com> wrote: Please see additional attached letters from HB residents regarding today's July 19 City Council agenda item. On Tue, Jul 19, 2022 at 2:17 PM Carrie Lines <carriealinesggmail.com>wrote: July 19, 2022 TO: Huntington Beach City Council (City.Council 0 surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. 1 Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: SEE ATTACHED LIST Street Name/Email: SEE ATTACHED LIST Signature: SEE ATTACHED LIST z DocuSign Envelope ID:AOA5964D-BE71-49C6-8668-DCF2FDDF1A4E July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: Docuft d by: E ,I .� �`� Catherine Bean D2sz3FCFODB841F... July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: � '„ �"yy 18729 Ashford Lane HB CA 92648 6 1 yW, Kirstenk@sevengables.com DocuSign Envelope ID:DDOC4664-2FB6-4944-A52E-C90BFA8E3994 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: EDocuSigned by: rl. Sheri bieber ECB53033F3B144B... 18755 Fairfax Huntington Beach ca 92648 DocuSign Envelope ID:54929292-9DB2-4721-85F0-BBA0988BCCE9 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing,and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: E0°�-1,°si°"e'by* Allen Gomez C�17-1\ 1557F2881A1A4EC... DocuSign Envelope ID:F004578C-2391-4F11-9E2C-3049EDB05691 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: 9DocuSigned by: E ui(`^— Yvi Gomez 009C49CQ5D1F46F... July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach, we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July S, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards. We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST 1MPORTANLY, we urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards.Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Undersigned resident of Huntington Beach Name: br Street Name/Email: / g�� � `� i4ffi Cat, Signature: 7 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach, we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY, we urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street, which is a miniscule distance from a residential community and children's backyards. Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Undersigned resident of Huntington Beach Name: Street Name/Email: JG +�1 �11 t, 4✓''���� � 1''t�''�{° Signature:°��� DocuSign Envelope ID:AOA5964D-BE71-49C6-8668-DCF2FDDF1A4E July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing,and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: EDocuSlyned by: ��, Catherine Dean D28�23FClFODB84 IF... July 19,2022 TO:Huntington Beach City Council(City.Councii@surfcity-hb.org) SUBJECT:AGENDA ITEM NO.12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval(July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70)FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street Sincerely, Undersigned residents of Huntington Beach Name: I G AV�Jtic- Street Name/Email: k4 V-d r.0i Signature: } July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach, we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY, we urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards.Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Susan Silva and David Silva Undersigned resident of Huntington Beach Name: Susan Silva Street Name/Email: 18645 Ambrose Lane, Huntington Beach, CA 92648 Signature: Susan Silva Switzer, Donna From: Fikes, Cathy Sent: Wednesday,July 20, 2022 12:37 PM To: Agenda Alerts Subject: FW: Part III -AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Attachments: Eliminate Proposed Cannabis Zones HB 3.pdf From: Carrie Lines<carriealines@gmail.com> Sent:Tuesday,July 19, 2022 2:38 PM To:CITY COUNCIL<city.council@surfcity-hb.org> Subject: Part III -AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Please see additional attached letters from HB residents regarding today's July 19 City Council agenda item - Part 3 On Tue, Jul 19, 2022 at 2:21 PM Carrie Lines <carriealines gmail.com> wrote: Please see additional attached letters from H13 residents regarding today's July 19 City Council agenda item. On Tue, Jul 19, 2022 at 2:17 PM Carrie Lines <carriealinesga,gmail.com>wrote: July 19, 2022 TO: Huntington Beach City Council (City.Council surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, i As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: SEE ATTACHED LIST Street Name/Email: SEE ATTACHED LIST Signature: SEE ATTACHED LIST 2 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval (July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY,we urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards.Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Undersigned resident of Huntington Beach Name: Lt I i'� �' h r �1 Street Name/Email: Ambrose L-A r) LIT-) Signature: qa4e, ............ .. July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY,we urge the City Council to amend locational criteria to 'eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive,east of Goldenwest Street, north of Garfield Avenue,and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards.Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Undersigned resident of Huntington Beach Name: ea"rd 6J�V r1, Street Name/Email: �►yl�jt"p5Q p ��lar�,'e� ah� C G� Signature: Switzer, Donna From: Fikes, Cathy Sent: Wednesday,July 20, 2022 12:37 PM To: Agenda Alerts Subject: FW: Part II -AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Attachments: Eliminate Proposed Cannabis Zones HB Part II.pdf From:Carrie Lines<carriealines@gmail.com> Sent:Tuesday,July 19, 2022 2:22 PM To:CITY COUNCIL<city.council@surfcity-hb.org> Subject: Part II -AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Please see additional attached letters from H13 residents regarding today's July 19 City Council agenda item. On Tue, Jul 19, 2022 at 2:17 PM Carrie Lines <carriealinesgizmail.com> wrote: July 19, 2022 TO: Huntington Beach City Council (City.Council Psurfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. 1 Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: SEE ATTACHED LIST Street Name/Email: SEE ATTACHED LIST Signature: SEE ATTACHED LIST 2 July 19,2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO.12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval (July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street Sincerely, Undersigned residents of Huntington Beach Name: SEE ATTACHED LIST Street Name/Email: SEE ATTACHED LIST Signature: SEE ATTACHED LIST z eb rN cl� 3 LM 7 A Qv IN (-o (blN -7S- N T-N �. 14 FTz > r \ r � Z N f r. y �jo Z � n � N e Q � rn rs CO � rn D ti r J r �' 10 rTT h n to 1 � D C rn t July 19,2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO.12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval(July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name:—FC McVe\ v`l Street Name/Email: `�� �h►�(-� J Trnc�Le��-e_`� 1���,C I Signature July 19,2022 TO:Huntington Beach City Council(City.Council0surfcity-hb,org) SUBJECT:AGENDA ITEM NO.12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval(July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as dose as SEVENTY(70)FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these rash uses,especially so dose to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend location[criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street Sincerely, Undersigned residents of Huntington Beach Name: rKA065ySG0 f,$ 2 Street Name/Email: 11143 A '►a 0? table ..T('R a L Signature: `J J SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval(July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July S,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70)FEET from our backyards. We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. 1A!e.urge t3�e City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive east of Goldenwest Street,north of Garfield Avenue,and west of . Gothard Street. f_ � " Sincerely, Undersigned residents of Huntington Beach f Name: j a h Ram- Street Name/Email. t1 015 b fi 1, ,T� , ' Signature: We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: 64fj �jq%j;',A Street Name/Email: qjIL y FA11,04 p Yp)L. 4 L Signature: xOtrn - tS ire e+ N+ W 22 e (C � P4=b CityFag W SUBJECT: AGENDA ITOM 1q0' g, 2022 � �+�#1#�#1 f3F3��+Cet +Hers) Munt�� {t 3 City- uacil ti r �ctVal (jply,19- ma . Y ' R dR'�' south of Fmrst Drive,!fit.# Fhere has been NO direct pubiie Oun b r Community about the dx8f t�. t f 0 pry t0 * Council on .duty 5y 2022 V1Yhich inctt� k i�I Itcn $ that would atlOw cannabis businesseS as C105C. aS SEVENTY(70) FEET from our b ky�, We abject to the ingest way to the public head issues related tO ft Odors and etc generated by cannabis uses as 11 as the Public safety issues that accompany the � uses, especially so close to the homes where we d our child= j �€ ve pray. f .. b . w' mg fit: h 8 + l�Y � s h© area i would be impacted have ONLY BECOME AVAILABLE in . :, a materials available with the agenda for this Jule 19, 2022 meeting. This blatant lack of u=spareney is rep risible and not at all m keeping with good govemame of the City constituents that you have been elected to serve. l U= s �` 2y ?ag4trrY tz M�e }�. , ,„ax a " 5.,..t .k"�.'� " .+m� �,rK s..-q-'�. �y ',+� t+ w ,}`" "�`[ o-*ia'h 1" )�uys• y�s}. '� � tp •FrH' � t a�. {'' k ' t i Switzer, Donna From: Fikes, Cathy Sent: Wednesday,July 20, 2022 12:38 PM To: Agenda Alerts Subject: FW: Part IV -AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Attachments: Eliminate_Proposed_Cannabis_Zones_HB Part IV.docx.pdf From:Carrie Lines<carriealines@gmail.com> Sent:Tuesday,July 19, 2022 2:50 PM To:CITY COUNCIL<city.council@surfcity-hb.org> Subject: Part IV-AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Please see additional attached letters from H13 residents regarding today's July 19 City Council agenda item - Part 4 On Tue, Jul 19, 2022 at 2:38 PM Carrie Lines <carriealinesgRmail.com> wrote: Please see additional attached letters from HB residents regarding today's July 19 City Council agenda item - Part 3 On Tue, Jul 19, 2022 at 2:21 PM Carrie Lines <carriealinesgamail.com>wrote: Please see additional attached letters from H13 residents regarding today's July 19 City Council agenda item. On Tue, Jul 19, 2022 at 2:17 PM Carrie Lines <carriealinesngmail.com>wrote: July 19, 2022 TO: Huntington Beach City Council (City.Council(@ surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) 1 Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: SEE ATTACHED LIST Street Name/Email: SEE ATTACHED LIST Signature: SEE ATTACHED LIST 2 DocuSign Envelope ID:AOA5964D-BE71-49C6-8668-DCF2FDDF1A4E July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing,and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: DocuSigned by: Catherine Dean D2823FCFOD864I F... July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: 6khYr6V*AA, 18729 Ashford Lane HB CA 92648 Kirstenk@sevengables.com DocuSign Envelope ID:DDOC4664-2FB6-4944-A52E-C90BFA8E3994 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing,and testing in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: [DocuSigned by: - rll� Sheri bieber ECB53033F3B144B... 18755 Fairfax Huntington Beach ca 92648 DocuSign Envelope ID:54929292-9DB2-4721-85F0-BBA0988BCCE9 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing,and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: Eoocusiooeaoy:1557F2881A1A4EC Allen Gomez � ... DocuSign Envelope ID:F004578C-2391-4F11-9E2C-3049EDB05691 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: gDoeuuftned by: I Yvi Gomez July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8,2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses, especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY,we urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards.Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Undersigned resident of Huntington Beach Name: i�fA� HMO y�,� Street Name/Email: j '970S774n1:z21i "` Signature: July 19,2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July S, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY,we urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards.Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Undersigned resident of Huntington Beach Name: Street Name/Email: p r� +'''t ' ` �/`�L4✓vti�D Jyi tit Signature: DocuSign Envelope ID:AOA5964D-BE71-49C6-8668-DCF2FDDF1A4E July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: CDocuSigned by: rCatherine� Dean D2823FCFooe6aI F... July 19,2022 TO:Huntington Beach City Council(City.Council@surfcity-hb.org) SUBJECT;AGENDA ITEM NO.12 Regarding Cannabis Business Regulation and Taxation Measures on the November S,2022 General Municipal Election Ballot for Voter Approval(July 19,2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive,east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5,2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70)FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses,especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 1-9, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street- Sincerely, Undersigned residents of Huntington Beach Name: ;c a AV Street Name/Email: 6"�M'.,,9- rA^�^ Ae AVIkek4A4YA4 a Signature: July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT: AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach, we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing, and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these uses, especially so close to the homes where we and our children live and play. Further, maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting. This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you are responsible to serve. MOST IMPORTANLY, we urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis business to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street, which is a miniscule distance from a residential community and children's back yards.Any cannabis businesses should NOT be located on the perimeter of any residential community. Sincerely, Susan Silva and David Silva Undersigned resident of Huntington Beach Name: Susan Silva Street Name/Email: 18645 Ambrose Lane, Huntington Beach, CA 92648 Signature: Susan Silva Switzer, Donna From: Fikes, Cathy Sent: Wednesday,July 20, 2022 12:38 PM To: Agenda Alerts Subject: FW: Objection to AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation (July 19, 2022 City Council Meeting) Attachments: Opposition Letter to AGENDA ITEM NO. 12.pdf Importance: High From: Ricardo and Angela Chen<the_chens@hotmail.com> Sent:Tuesday,July 19, 2022 3:27 PM To:CITY COUNCIL<city.council@surfcity-hb.org> Subject:Objection to AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation (July 19, 2022 City Council Meeting) Importance: High Dear Sir/Madam: As a Seagate resident, I vehemently oppose the proposal of a cannabis facility on around Ernest Drive and Stewart Lane. Attached is my signed objection letter regarding tonight's AGENDA ITEM NO. 12 pertaining to cannabis business regulation. Sincerely, Ricardo Chen 1 July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation,manufacturing,and testing in the industrial area south of Ernest Drive, east of Goldenwest Street,north of Garfield Avenue,and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY (70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue,and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: (%% Q 1% T% ➢ O W CN t N Street Name/Email: f 0k �'p C 1 A /-T1* ro"Ci�'ENS�,k1 Ds Signature: C4 M DocuSign Envelope ID:910E8F69-4B35-4E02-8837-2F81F8CABC9E July 19, 2022 TO: Huntington Beach City Council (City.Council@surfcity-hb.org) SUBJECT:AGENDA ITEM NO. 12 Regarding Cannabis Business Regulation and Taxation Measures on the November 8, 2022 General Municipal Election Ballot for Voter Approval (July 19, 2022 City Council Meeting) Dear Honorable Mayor Delgleize and members of the City Council, As residents of Huntington Beach,we are OUTRAGED to find that the City staff is proposing to allow for cannabis cultivation, manufacturing,and testing in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. There has been NO direct public outreach to our community about the draft ordinance presented to the City Council on July 5, 2022 which includes locational criteria that would allow cannabis businesses as close as SEVENTY(70) FEET from our backyards.We object in the strongest way to the public health issues related to the odors and traffic generated by cannabis uses as well as the public safety issues that accompany these cash uses, especially so close to the homes where we and our children live and play. Further,maps showing that the area behind our homes would be impacted have ONLY BECOME AVAILABLE in materials available with the agenda for this July 19, 2022 meeting.This blatant lack of transparency is reprehensible and not at all in keeping with good governance of the City constituents that you have been elected to serve. We urge the City Council to amend locational criteria to eliminate the possibility for any type of cannabis use to be located in the industrial area south of Ernest Drive, east of Goldenwest Street, north of Garfield Avenue, and west of Gothard Street. Sincerely, Undersigned residents of Huntington Beach Name: Street Name/Email: Signature: EDocuSlgned by: m � Carol od hive �,/ �'�I Sherwood Drive ce8E6SD525734f7._ csiggy@ymail .com