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HomeMy WebLinkAboutNovember 8, 2022 - General Municipal Election - Proposed Ord 0-City of Huntington Beach, Taxation of Commercial Cannabis Businesses 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$300,000 to $600,000 annually to fund general municipal services for Huntington Beach and will be levied until repealed by the voters? 0 City of Huntington Beach, Taxation of Commercial Cannabis Businesses Shall the City adopt an Ordinance that taxes cannabis businesses up to 6%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$300,000 to S600,000 annually to fund general municipal services for Huntington Beach and will be levied until repealed by the voters? What your vote means YES NO A"yes" vote for Measure 0 will establish a Huntington A"no" vote against Measure 0 will not establish such a Beach Cannabis Business Tax if commercial cannabis tax. businesses ever become allowed. For and against FOR AGAINST Rhonda Bolton Russell Neal Huntington Beach City Councilmember Vice President, Huntington Beach Republican Assembly Kim Carr Huntington Beach City Councilmember Dan Kalmick Huntington Beach City Councilmember Section Ballot Measures- 0 11 0 City of Huntington Beach, Taxation of Commercial Cannabis Businesses 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$300,000 to $600,000 annually to fund general municipal services for Huntington Beach and will be levied until repealed by the voters? What your vote means YES NO A"yes" vote for Measure 0 will establish a Huntington A"no" vote against Measure 0 will not establish such a Beach Cannabis Business Tax if commercial cannabis tax. businesses ever become allowed. For and against FOR AGAINST Rhonda Bolton Russell Neal Huntington Beach City Councilmember Vice President, Huntington Beach Republican Assembly Kim Carr Huntington Beach City Councilmember Dan Kalmick Huntington Beach City Councilmember Section ver- Ballot Measures- O 11 Full Text of Measure 0 City of Huntington Beach 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 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. Section Ballot Measures- 0 11 "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. "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. 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 such amounts excluded as uncollectible are subsequently collected they shall be included ; Section Ballot Measures- 0 11 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 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. 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. Section 0,10-4 Ballot Measures- 0 11 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 shalt 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. 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. , Section Ballot Measures- O 11 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; 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 shalt 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 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 , k Section Ballot Measures- 0 11 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. 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 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, ,410, . Section Ballot Measures- O 11 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. 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 Tax 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 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. , Section fool Ballot Measures- 0 11 Impartial Analysis City of Huntington Beach Measure 0 Measure 0 is submitted to the voters by the Huntington Beach City Council and would amend the Huntington Beach Municipal Code to establish a Cannabis Business Tax that would apply to commercial cannabis businesses that may operate in Huntington Beach, as defined in the proposed ordinance. Background on the Measure The Huntington Beach City Council approved the submission of an ordinance for voter approval to amend the Huntington Beach Municipal Code ("HBMC")to establish a general tax that would apply to commercial cannabis businesses that may operate in Huntington Beach.The ordinance would establish 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 cannabis cultivation,manufacturing,testing laboratory, and distribution businesses. The general tax must be approved by a majority of the voters in Huntington Beach, the proceeds of which would be deposited into the City's General Fund to be used for any lawful City program or service. The City Council cannot repeal this general tax or set any adjusted rate that exceeds the maximum rates,without voter approval at an election. Effects of the Measure If passed,Measure 0 would amend the HBMC to impose a general tax on commercial cannabis businesses as defined in the proposed ordinance.The tax is imposed on commercial cannabis businesses and is not a sales tax imposed on qualified patients, primary caregivers or customers. The tax would apply to businesses operating both legally and illegally;however,it should be noted that the Measure does not authorize or permit any type of commercial cannabis businesses. Monies from the proposed Cannabis Business Tax would be deposited into the General Fund. The total amount of the tax would depend on the gross receipts of the business. The Measure sets taxation rates that could be adjusted by the City Council periodically,so long as the rates do not exceed the maximum rates approved by voters.The Cannabis Business Tax would be paid in arrears,on a monthly basis and failure to timely pay would result in certain increasing fines and penalties. Measure 0 requires a simple majority vote of 50%plus 1 to pass.A"yes"vote for Measure 0 will establish a Huntington Beach Cannabis Business Tax if commercial cannabis businesses ever become allowed.A"no"vote against Measure 0 will not establish such a tax. The above statement is an impartial analysis of Measure 0.Copies of the text of the proposed ordinance is available in the City Clerk's Office,public libraries,and on the City's website at https://huntinotonbeachca.gov/.For more information,contact the City Clerk's Office at(714)536-5227. „er . Section Ballot Measures- O 11 Argument in Favor of Measure 0 Rebuttal to Argument in Favor of Measure 0 Please vote YES on Measure 0 to establish a tax rate for cannabis This is a lot more than a "just-in-case” tax measure. A "Yes" vote on businesses should they ever be permitted in Huntington Beach. this measure will be interpreted by the City Council as a "Yes" vote for legalizing recreational cannabis sales all over this city. During the June 2022 primary election, nearly 2/3 of those Huntington Beach residents who voted,voted in favor of a measure nearly identical to If this measure is approved, the Council will have your"green light" to this one.It fell just shy of the two-thirds margin needed to pass a Special legalize retail recreational cannabis stores anywhere they want. Tax.The tax is now proposed here in Measure 0 as a General Tax,which, under our City Charter,requires a simple majority to pass. Those of us who have been following the push for legalized retail cannabis recognize this as something Big Cannabis has been pushing for with their YES,on Measure 0 does not approve or allow for cannabis businesses to allies on the City Council with minimal community notice or input. The open and operate in Huntington Beach. so-called"Town Hall;'a video of which is available on the City's cannabis site,consisted of forty representatives of the cannabis industry and one YES,on Measure 0 establishes local control and ensures that if allowed, ordinary citizen. Some community input! commercial cannabis businesses operating in Huntington Beach will pay their fair share of taxes. This general tax will provide Huntington Hasn't this Council done enough to diminish our quality of life? Do we Beach with additional General Fund revenue that could be used for any need to join Costa Mesa and Santa Ana in a race to the bottom? lawful purpose such as homeless prevention and intervention services, improving parks and roads and Public Safety. Vote"No"on Measure 0! YES,on Measure 0 simply permits the City to collect a tax from cannabis s/Russell Neal businesses if allowed to operate in the community. By acting now,the Vice President,Huntington Beach Republican Assembly City will have a tax in place if cannabis businesses are approved later or imposed upon us by Sacramento. Measure 0 is fiscally responsible, timely, and prudent. Make sure that commercial cannabis businesses pay their fair share! Please join us in voting YES on Measure 0. For more information,visit www.huntincitonbeachca.gov/cannabis s/Rhonda Bolton Huntington Beach City Councilmember s/Kim Carr Huntington Beach City Councilmember s/Dan Kalmick Huntington Beach City Councilmember Section Ballot Measures- 0 11 Argument Against Measure 0 Rebuttal to Argument Against Measure 0 Do not be deceived by this so-called"Tax Measure." The City Council will Contrary to its opponent's assertions,Measure 0 would only establish a use your "Yes" vote on this measure as an excuse for them to legalize tax rate for cannabis businesses if ever permitted in Huntington Beach, cannabis growing,manufacture,warehousing,distribution and retail sales nothing more. all over the city,and they can do that without your further vote. The opponent of this Measure makes tired and spurious claims about The promised tax is "up to" 6% and 1%. That means they can set the a now mature cannabis industry and marketplace. They cite tabloid tax lower,even at zero. So,the promised windfall might turn out to also headlines and use the arcane scare tactics of"Reefer Madness" from a be zero. Plus,even the promised money would barely pay for one more bygone era. Huntington Beach supports legal and regulated cannabis police officer,and we'll need many more than that if this passes! sales;Nearly 2/3 of voters in June supported an almost identical tax. Measure A on the June election was earmarked for police and homeless The truth is legal and regulated cannabis makes communities safer, programs. This measure puts the money in the general fund,to be wasted works to drive out the illicit market and will revitalize our aging shopping however the Council wants. centers. You cannot look at the tax revenue without considering what legal Other Orange County cities, like Santa Ana and Costa Mesa that were cannabis will do: early adopters of cannabis policy are now racing to expand an industry that's brought jobs and commerce to their cities. Legal cannabis will increase the number of impaired drivers on our roads. If we do nothing, what happened in Hermosa Beach, and may happen Legal cannabis will actually increase illegal cannabis, like it does in Redondo Beach and Manhattan Beach, will happen in Huntington everywhere it is tried. Beach. Two voter-initiated ballot measures were brought in for petition Legalized cannabis will increase the risk of experimentation and addiction circulation last year. These would've let the cannabis industry drive for our children. regulatory process to the detriment of the community. Dangerous edibles will find their way to your children and voting for this Rather than passively stand by while outside interests seek to dictate our could cost your kid their life. cannabis rules—something Measure 0's opponents should want to avoid, given their criticism of"special interests"— we're acting now to maintain All types of cannabis businesses pollute the air and consume precious local control of this issue. water resources. This will fill the air you breathe with its well-known stench. Huntington Beach has held numerous study sessions and meetings and will continue to publicly engage the community and all stakeholders as Every place that has legalized recreational cannabis in this manner has we continue crafting cannabis policy for Huntington Beach. come to regret it. Please vote YES on Measure O. Do not turn your city over to Big Cannabis and its supporters on the City Council. The last thing we need is yet another special interest controlling For more information,visit www.huntingtonbeachca.gov/cannabis our city! s/Rhonda Bolton For more information and documentation see: https://hbra.us/wp- Huntington Beach City Councilmember content/uploads/2022/07/No-on-HB-Pot-Shops.pdf s/Kim Carr s/Russell Neal Huntington Beach City Councilmember Vice President,Huntington Beach Republican Assembly s/Dan Kalmick Huntington Beach City Councilmember ex )i.f) / ►rU.�,�-� Full Text of Measure 0 City of Huntington Beach 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 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 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. 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 sates 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 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 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)shalt 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 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. 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 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 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. 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 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 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. 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(515,000)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 Tax 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 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. • it-- Impartial Analysis City of Huntington Beach Measure 0 Measure 0 is submitted to the voters by the Huntington Beach City Council and would amend the Huntington Beach Municipal Code to establish a Cannabis Business Tax that would apply to commercial cannabis businesses that may operate in Huntington Beach, as defined in the proposed ordinance. Background on the Measure The Huntington Beach City Council approved the submission of an ordinance for voter approval to amend the Huntington Beach Municipal Code ("HBMC")to establish a general tax that would apply to commercial cannabis businesses that may operate in Huntington Beach.The ordinance would establish 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 cannabis cultivation,manufacturing,testing laboratory, and distribution businesses. The general tax must be approved by a majority of the voters in Huntington Beach, the proceeds of which would be deposited into the City's General Fund to be used for any lawful City program or service. The City Council cannot repeal this general tax or set any adjusted rate that exceeds the maximum rates,without voter approval at an election. Effects of the Measure If passed,Measure 0 would amend the HBMC to impose a general tax on commercial cannabis businesses as defined in the proposed ordinance.The tax is imposed on commercial cannabis businesses and is not a sales tax imposed on qualified patients, primary caregivers or customers. The tax would apply to businesses operating both legally and illegally;however,it should be noted that the Measure does not authorize or permit any type of commercial cannabis businesses. Monies from the proposed Cannabis Business Tax would be deposited into the General Fund. The total amount of the tax would depend on the gross receipts of the business. The Measure sets taxation rates that could be adjusted by the City Council periodically,so long as the rates do not exceed the maximum rates approved by voters.The Cannabis Business Tax would be paid in arrears,on a monthly basis and failure to timely pay would result in certain increasing fines and penalties. Measure 0 requires a simple majority vote of 50%plus 1 to pass.A"yes"vote for Measure 0 will establish a Huntington Beach Cannabis Business Tax if commercial cannabis businesses ever become allowed.A"no"vote against Measure 0 will not establish such a tax. The above statement is an impartial analysis of Measure O.Copies of the text of the proposed ordinance is available in the City Clerk's Office,public libraries,and on the City's website at httos://huntingtonbeachca.gov/.For more information,contact the City Clerk's Office at(714)536-5227 e Argument in Favor of Measure 0 Please vote YES on Measure 0 to establish a tax rate for cannabis businesses should they ever be permitted in Huntington Beach. During the June 2022 primary election, nearly 2/3 of those Huntington Beach residents who voted,voted in favor of a measure nearly identical to this one.It fell just shy of the two-thirds margin needed to pass a Special Tax.The tax is now proposed here in Measure 0 as a General Tax,which, under our City Charter,requires a simple majority to pass. YES,on Measure 0 does not approve or allow for cannabis businesses to open and operate in Huntington Beach. YES,on Measure 0 establishes local control and ensures that if allowed, commercial cannabis businesses operating in Huntington Beach will pay their fair share of taxes. This general tax will provide Huntington Beach with additional General Fund revenue that could be used for any lawful purpose such as homeless prevention and intervention services, improving parks and roads and Public Safety. YES,on Measure 0 simply permits the City to collect a tax from cannabis businesses if allowed to operate in the community. By acting now,the City will have a tax in place if cannabis businesses are approved later or imposed upon us by Sacramento. Measure 0 is fiscally responsible, timely, and prudent. Make sure that commercial cannabis businesses pay their fair share! Please join us in voting YES on Measure O. For more information,visit www.huntingtonbeachca.gov/cannabis s/Rhonda Bolton Huntington Beach City Councilmember s/Kim Carr Huntington Beach City Councilmember s/Dan Kalmick Huntington Beach City Councilmember oK 4;..31fxey Rebuttal to Argument in Favor of Measure 0 This is a lot more than a "just-in-case" tax measure. A "Yes" vote on this measure will be interpreted by the City Council as a "Yes" vote for legalizing recreational cannabis sales all over this city. If this measure is approved, the Council will have your "green light" to legalize retail recreational cannabis stores anywhere they want. Those of us who have been following the push for legalized retail cannabis recognize this as something Big Cannabis has been pushing for with their allies on the City Council with minimal community notice or input. The so-called"Town Hall,"a video of which is available on the City's cannabis site,consisted of forty representatives of the cannabis industry and one ordinary citizen. Some community input! Hasn't this Council done enough to diminish our quality of life? Do we need to join Costa Mesa and Santa Ana in a race to the bottom? Vote"No"on Measure 0! s/Russell Neal Vice President,Huntington Beach Republican Assembly D/`« a)5 Argument Against Measure 0 Do not be deceived by this so-called"Tax Measure." The City Council will use your "Yes" vote on this measure as an excuse for them to legalize cannabis growing,manufacture,warehousing,distribution and retail sales all over the city,and they can do that without your further vote. The promised tax is "up to" 6% and 1%. That means they can set the tax lower,even at zero. So,the promised windfall might turn out to also be zero. Plus,even the promised money would barely pay for one more police officer,and we'll need many more than that if this passes! Measure A on the June election was earmarked for police and homeless programs. This measure puts the money in the general fund,to be wasted however the Council wants. You cannot look at the tax revenue without considering what legal cannabis will do: Legal cannabis will increase the number of impaired drivers on our roads. Legal cannabis will actually increase illegal cannabis, like it does everywhere it is tried. Legalized cannabis will increase the risk of experimentation and addiction for our children. Dangerous edibles will find their way to your children and voting for this could cost your kid their life. Alt types of cannabis businesses pollute the air and consume precious water resources. This will fill the air you breathe with its well-known stench. Every place that has legalized recreational cannabis in this manner has come to regret it. Do not turn your city over to Big Cannabis and its supporters on the City Council. The last thing we need is yet another special interest controlling our city! For more information and documentation see: https://hbra.us/wp- content/uploads/2022/07/No-on-HB-Pot-Shops.pdf s/Russell Neal Vice President,Huntington Beach Republican Assembly • Rebuttal to Argument Against Measure 0 Contrary to its opponent's assertions,Measure 0 would only establish a tax rate for cannabis businesses if ever permitted in Huntington Beach, nothing more. The opponent of this Measure makes tired and spurious claims about a now mature cannabis industry and marketplace. They cite tabloid headlines and use the arcane scare tactics of"Reefer Madness" from a bygone era. Huntington Beach supports legal and regulated cannabis sales;Nearly 2/3 of voters in June supported an almost identical tax. The truth is legal and regulated cannabis makes communities safer, works to drive out the illicit market and will revitalize our aging shopping centers. Other Orange County cities, like Santa Ana and Costa Mesa that were early adopters of cannabis policy are now racing to expand an industry that's brought jobs and commerce to their cities. If we do nothing, what happened in Hermosa Beach, and may happen in Redondo Beach and Manhattan Beach, will happen in Huntington Beach.Two voter-initiated ballot measures were brought in for petition circulation last year. These would've let the cannabis industry drive regulatory process to the detriment of the community. Rather than passively stand by while outside interests seek to dictate our cannabis rules—something Measure O's opponents should want to avoid, given their criticism of"special interests"— we're acting now to maintain local control of this issue. Huntington Beach has held numerous study sessions and meetings and will continue to publicly engage the community and all stakeholders as we continue crafting cannabis policy for Huntington Beach. Please vote YES on Measure O. For more information,visit www.huntingtonbeachca.gov/cannabis s/Rhonda Bolton Huntington Beach City Councilmember s/Kim Carr Huntington Beach City Councilmember s/Dan Kalmick Huntington Beach City Councilmember REBUTTAL TO ARGUMENT AGAINST MEASURE _ ON TAXATION OF COMMERCIAL CANNABIS BUSINESSES Contrary to its opponent's assertions, Measure_would only establish a tax rate for cannabis businesses if ever permitted in Huntington Beach, nothing more. The opponent of this Measure makes tired and spurious claims about a now mature cannabis industry and marketplace. They cite tabloid headlines and use the arcane scare tactics of"Reefer Madness"from a bygone era. Huntington Beach supports legal and regulated cannabis sales; Nearly 2/3 of voters in June supported an almost identical tax. The truth is legal and regulated cannabis makes communities safer,works to drive out the illicit market and will revitalize our aging shopping centers. Other Orange County cities, like Santa Ana and Costa Mesa that were early adopters of cannabis policy are now racing to expand an industry that's brought jobs and commerce to their cities. If we do nothing,what happened in Hermosa Beach, and may happen in Redondo Beach and Manhattan Beach,will happen in Huntington Beach. Two voter-initiated ballot measures were brought in for petition circulation last year. These would've let the cannabis industry drive regulatory process to the detriment of the community. Rather than passively stand by while outside interests seek to dictate our cannabis rules— something Measure_'s opponents should want to avoid, given their criticism of"spegial interests"— we're acting now to maintain local control of this issue. p 21„a = W Huntington Beach has held numerous study sessions and meetings and will continue 1�blicl� engage the community and all stakeholders as we continue crafting cannabis policy16, . CO W Huntington Beach. _=-� C.0 r "�' Please vote YES on Measure 30 For more information,visit www.huntingtonbeachca.gov/cannabis "The undersigned proponent(s) or author(s) of the Rebuttal to Argument Against Measure_ on Taxation of Commercial Cannabis Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that such argument is true and correct to the best of their knowledge and belief." Sincerely, Signed Date it le I 0-2--- Rhonda olton, Huntington Beach City Councilmember Signed Date_ thria a Kim Carr, Huntington Beach City Councilmember Signed . L Date Big( 2 Z Dan Kalmick, H on Beach City Councilmember C :c C•! C a .. lic a > a- .,a0= 03.0 1.44 m t• V Yv c.a F, REBUTTAL TO ARGUMENT AGAINST MEASURE ON TAXATION OF COMMERCIAL CANNABIS BUSINESSES Contrary to its opponent's assertions, Measure_would only establish a tax rate for cannabis businesses if ever permitted in Huntington Beach, nothing more. The opponent of this Measure makes tired and spurious claims about a now mature cannabis industry and marketplace. They cite tabloid headlines and use the arcane scare tactics of"Reefer Madness" from a bygone era. Huntington Beach supports legal and regulated cannabis sales; Nearly 2/3 of voters in June supported an almost identical tax. The truth is legal and regulated cannabis makes communities safer,works to drive out the illicit market and will revitalize our aging shopping centers. Other Orange County cities, like Santa Ana and Costa Mesa that were early adopters of cannabis policy are now racing to expand an industry that's brought jobs and commerce to their cities. If we do nothing,what happened in Hermosa Beach, and may happen in Redondo Beach and Manhattan Beach,will happen in Huntington Beach. Two voter-initiated ballot measures were brought in for petition circulation last year. These would've let the cannabis industry drive regulatory process to the detriment of the community. Rather than passively stand by while outside interests seek to dictate our cannabis rules— something Measure_'s opponents should want to avoid, given their criticism of"special interests"— we're acting now to maintain local control of this issue. Huntington Beach has held numerous study sessions and meetings and will continue to publicly engage the community and all stakeholders as we continue crafting cannabis policy for Huntington Beach. Please vote YES on Measure For more information, visit www.huntingtonbeachca.gov/cannabis mi "The undersigned proponent(s) or author(s) of the Rebuttal to Argument Against Measure_ on Taxation of Commercial Cannabis Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that such argument is true and rt'C' c . correct to the best of their knowledge and belief." J Sih erely t Date Signed ZZ. g �--- Igo Rhonda olton, Huntington Beach City Councilmember WOSigned � Date im Carr, Huntington Beach City Councilmember Signed —� Date �1�� � arrI rficx, H n ton Beach City Councilmember ..r x 2,0 h-4 c, rn o.<r'zor _ < MI rn W -r o FORM OF STATEMENT TO BE FILED BY AUTHORS OF ARGUMENTS All arguments concerning measures filed pursuant to Division 9, Chapter 3 (beginning with § 9200) of the Elections Code shall be accompanied by the following form statement to be signed by each proponent, and by each author, if different, of the argument: The undersigned proponent(s) or author(s) of the Rebuttal to Argument Against Measure on Taxation of Commercial Cannabis Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that the argument is true and correct to the best of(his/her/their) knowledge and belief. Print Name Rhonda Bolton Title Huntington Beach City Councilmember (If applicable):Submitted on behalf of: Signature (name of organization) Date J ZZ. Print Name Kim Carr Title Huntington Beach City Councilmember (If applicable):Submitted on behalf of : Signature oy (name of organization) Date iloa Print Name Dan Kalmick Title Huntington Beach City Councilmember Title Signature '"^ (If applicable):Submitted on behalf of: / Date ) O 2 (name of organization) Print Name Title (If applicable):Submitted on behalf of: Signature (name of organization) Date Print Name Title ^� (If applicable):Submitted on behalf of: Signature 30 - n rri (name of organization) Date E :4-: corY1 All Authors must print his/her name and sign this form (EC 9600) Zpill -TY ,,C AND ad"xs fy, Print his/her name and sign the Argument itself (EC 9283) a lit w• q AND n w Print his/her name and sign the Rebuttal Argument itself (EC 9285) c) Further, pursuant to Election Code § 9282, printed arguments submitted to the voters shall be titled either "Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Argument Against Measure on Taxation of Commercial Businesses". Likewise, printed rebuttal arguments submitted pursuant to Election Code § 9285 shall be titled either "Rebuttal To Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Rebuttal to Argument Against I Measure on Taxation of Commercial Businesses". Give this form to Council Members, Proponents, and Opponents of Measures The following statement shall be included on the front cover, or if none, on the heading of the first page of the printed arguments in the Voter Information Guide: § 9200, 9282, 9283, 9285, 9600 E.C. Statement of Authors of Arguments F -A- 1 CITY ATTORNEY'S IMPARTIAL ANALYSIS OF MEASURE Measure is submitted to the voters by the Huntington Beach City Council and would amend the Huntington Beach Municipal Code to establish a Cannabis Business Tax that would apply to commercial cannabis businesses that may operate in Huntington Beach, as defined in the proposed ordinance. Background on the Measure The Huntington Beach City Council approved the submission of an ordinance for voter approval to amend the Huntington Beach Municipal Code ("HBMC")to establish a general tax that would apply to commercial cannabis businesses that may operate in Huntington Beach. The ordinance would establish 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 cannabis cultivation, manufacturing, testing laboratory, and distribution businesses. The general tax must be approved by a majority of the voters in Huntington Beach,the proceeds of which would be deposited into the City's General Fund to be used for any lawful City program or service. tAl 4', The City Council cannot repeal this general tax or set any adjusted rate that exceeds the , maximum rates, without voter approval at an election. Effects of the Measure anti ow rti If passed, Measure would amend the HBMC to impose a general tax on commercial cannabis businesses as defined in the proposed ordinance. The tax is imposed on commercial cannabis businesses and is not a sales tax imposed on qualified patients, primary caregivers or customers. The tax would apply to businesses operating both legally and illegally; however, it should be noted that the Measure does not authorize or permit any type of commercial cannabis businesses. Monies from the proposed Cannabis Business Tax would be deposited into the General Fund. The total amount of the tax would depend on the gross receipts of the business. The Measure sets taxation rates that could be adjusted by the City Council periodically, so long as the rates do not exceed the maximum rates approved by voters. The Cannabis Business Tax would be paid in arrears, on a monthly basis and failure to timely pay would result in certain increasing fines and penalties. Measure requires a simple majority vote of 50% plus 1 to pass. A "yes" vote for Measure will establish a Huntington Beach Cannabis Business Tax if commercial cannabis businesses ever become allowed. A "no" vote against Measure will not establish such a tax. The above statement is an impartial analysis of Measure . Copies of the text of the proposed ordinance is available in the City Clerk's Office, public libraries, and on the City's website at 22-11096/277673 https://huntingtonbeachca.gov/. For more information, contact the City Clerk's Office at (714) 536-5227. 0 o cu rc w4, tat c.>>44:3. W t-v3 CC v a z N r 22-11096/277673 Argument Against the Measure on Taxation of Commercial Cannabis Businesses Do not be deceived by this so-called "Tax Measure." The City Council will use your"Yes"vote on this measure as an excuse for them to legalize cannabis growing, manufacture, warehousing, distribution and retail sales all over the city, and they can do that without your further vote. The promised tax is"up to" 6%and 1%. That means they can set the tax lower,even at zero. So, the promised windfall might turn out to also be zero. Plus, even the promised money would barely pay for one more police officer, and we'll need many more than that if this passes! Measure A on the June election was earmarked for police and homeless programs. This measure puts the money in the general fund,to be wasted however the Council wants. You cannot look at the tax revenue without considering what legal cannabis will do: Legal cannabis will increase the number of impaired drivers on our roads. Legal cannabis will actually increase illegal cannabis, like it does everywhere it is tried. Legalized cannabis will increase the risk of experimentation and addiction for our children. Dangerous edibles will find their way to your children and voting for this could cost your kid their life. All types of cannabis businesses pollute the air and consume precious water resources.This will fill the air you breathe with its well-known stench. Every place that has legalized recreational cannabis in this manner has come to regret it. Do not turn your city over to Big Cannabis and its supporters on the City Council. The last thing we need is yet another special interest controlling our city! For more information and documentation see: https://hbra.us/wp-content/uploads/2022/07/No-on-HB- Pot-Shops.pdf "The undersigned authors of the Direct Argument Against the Measure on Taxation of Commercial Cannabis Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that such argument is true and correct to the best of their knowledge and belief." Signed: G7- 4/ Date: 7- 2 g — 2 p Z Z v ON ha Russell Neal,Vice President of Huntington Beach Republican Assembly i ~+ n t�1 .. rrCO rri C) o« zom < co'"aa ti1 o 0 FORM OF STATEMENT TO BE FILED BY AUTHORS OF ARGUMENTS All arguments concerning measures filed pursuant to Division 9, Chapter 3 (beginning with § 9200) of the Elections Code shall be accompanied by the following form statement to be signed by each proponent, and by each author, if different, of the argument: The undersigned proponent(s) or author(s) of the primary argument Against Measure on Taxation of Commercial Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that the argument is true and correct to the best of(his/her/their) knowledge and belief. Print Name /? v s sE c t 1- Title ✓I c C PR F E ry 1- �J��� �� (If applicable):Submitted on behalf of: Signature yr BEA e+-, A'Ep L/cA ' /3-s 5m Pt/ (name of organization) Date 7- Z 8 2 0 Print Name Title (If applicable):Submitted on behalf of: Signature (name of organization) Date Print Name Title (If applicable):Submitted on behalf of: Signature Oka ■r (name of organization) Date Print Name ,'4„ n rn Title —I 10--< ry 0 (If applicable):Submitted on behalf of: Signature o-ct) oo to (name of organization) Date Print Name ► �` •-? Title (If applicable):Submitted on behalf of: Signature (name of organization) Date All Authors must print his/her name and sign this form (EC 9600) AND Print his/her name and sign the Argument itself (EC 9283) AND Print his/her name and sign the Rebuttal Argument itself (EC 9285) Further, pursuant to Election Code § 9282, printed arguments submitted to the voters shall be titled either "Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Argument Against Measure on Taxation of Commercial Businesses". Likewise, printed rebuttal arguments submitted pursuant to Election Code § 9285 shall be titled either"Rebuttal To Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Rebuttal to Argument Against Measure on Taxation of Commercial Businesses". Give this form to Council Members, Proponents, and Opponents of Measures The following statement shall be included on the front cover,or if none,on the heading of the first page of the printed arguments in the Voter Information Guide: § 9200, 9282, 9283, 9285, 9600 E.C. Statement of Authors of Arguments F -A- 1 ARGUMENT IN FAVOR OF MEASURE _ ON TAXATION OF COMMERCIAL CANNABIS BUSINESSES Please vote YES on Measure to establish a tax rate for cannabis businesses should they ever be permitted in Huntington Beach. During the June 2022 primary election,nearly 2/3 of those Huntington Beach residents who voted, voted in favor of a measure nearly identical to this one. It fell just shy of the two-thirds margin needed to pass a Special Tax. The tax is now proposed here in Measure_as a General Tax,which,under our City Charter, requires a simple majority to pass. YES, on Measure does not approve or allow for cannabis businesses to open and operate in Huntington Beach. YES, on Measure establishes local control and ensures that if allowed, commercial cannabis businesses operating in Huntington Beach will pay their fair share of taxes. This general tax will provide Huntington Beach with additional General Fund revenue that could be used for any lawful purpose such as homeless prevention and intervention services, improving parks and roads and Public Safety. YES, on Measure simply permits the City to collect a tax from cannabis businesses if allowed to operate in the community. By acting now,the City will have a tax in place if cannabis businesses are approved later or imposed upon us by Sacramento. Measure is fiscally responsible,timely, and prudent. Make sure that commercial cannabis businesses pay their fair share! Please join us in voting YES on Measure For more information, visit www.huntingtonbeachca.gov/cannabis "The undersigned authors of the Direct Argument in favor of Measure_ on Taxation of Commercial Cannabis Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that such argument is true and correct to the best of their knowledge and belief" 0 2 .. m Sinere rrt Sited Date ) zc\ �' C7 •• Rhonda Bolton, Huntington Beach City Councilmember CD • iSigned Date l aQ Kim Carr, Huntington Beach City Councilmember Signed / Date 717r/6-z__ Dan in ton Beach City Councilmember N rn -4 r C, -4-CCO m - w �' o FORM OF STATEMENT TO BE FILED BY AUTHORS OF ARGUMENTS All arguments concerning measures filed pursuant to Division 9, Chapter 3 (beginning with § 9200) of the Elections Code shall be accompanied by the following form statement to be signed by each proponent, and by each author, if different, of the argument: The undersigned proponent(s) or author(s) of the (primary/rebuttal) argument (in favor of/against) Measure on Taxation of Commercial Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that the argument is true and correct to the best of (his/her/their) knowledge and belief. Print Name Rhonda Bolton Title Huntington Beach City Councilmember --2)/Anat(If applicable): Submitted on behalf of: Signature i e6 --J (name of organization) Date Z� 1-2— Print Name Kim Carr Title Huntington Beach City Councilmember (If applicable):Submitted on behalf of: Signature (name of organization) Date 41(yca a Print Name Dan Kalmick Title Huntington Beach City Councilmember /(If applicable):Submitted on behalf of: Signature (name of organization) Date 7/SI I to-r. Print Name Title (If applicable):Submitted on behalf of: Signature (name of organization) Date Print Name IVO Title (If applicable):Submitted on behalf of: Signature rn (name of organization) Date Ob--t n) rn "'tn �c4 .c All Authors must print his/her name and sign this form (EC 9600) or'm Z m AND " Print his/her name and sign the Argument itself (EC 9283) p AND Print his/her name and sign the Rebuttal Argument itself (EC 9285) Further, pursuant to Election Code § 9282, printed arguments submitted to the voters shall be titled either "Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Argument Against Measure on Taxation of Commercial Businesses". Likewise, printed rebuttal arguments submitted pursuant to Election Code § 9285 shall be titled either "Rebuttal To Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Rebuttal to Argument Against Measure on Taxation of Commercial Businesses". Give this form to Council Members, Proponents, and Opponents of Measures The following statement shall be included on the front cover,or if none,on the heading of the first page of the printed arguments in the Voter Information Guide: § 9200, 9282, 9283, 9285, 9600 E.C. Statement of Authors of Arguments F -A- 1 Rebuttal to Argument In Favor of Measure on Taxation of Commercial Cannabis Businesses This is a lot more than a "just-in-case"tax measure. A"Yes"vote on this measure will be interpreted by the City Council as a "Yes"vote for legalizing recreational cannabis sales all over this city. If this measure is approved,the Council will have your"green light"to legalize retail recreational cannabis stores anywhere they want. Those of us who have been following the push for legalized retail cannabis recognize this as something Big Cannabis has been pushing for with their allies on the City Council with minimal community notice or input. The so-called "Town Hall," a video of which is available on the City's cannabis site,consisted of forty representatives of the cannabis industry and one ordinary citizen. Some community input! Hasn't this Council done enough to diminish our quality of life? Do we need to join Costa Mesa and Santa Ana in a race to the bottom? Vote "No" on Measure ! The undersigned proponent or author of the Rebuttal to Argument In Favor Measure on Taxation of Commercial Cannabis Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8,2022, hereby states that such argument is true and correct to the best of their knowledge and belief. 17 Signed: ..,. i.L' z Date: A CI& Z. ) Russell Neal,Vice President of Huntington Beach Republican Assembly �.s :c C rn Zoe c-) {'7 ae of -o < 03„:x3 3 tin � N 0 FORM OF STATEMENT TO BE FILED BY AUTHORS OF ARGUMENTS All arguments concerning measures filed pursuant to Division 9, Chapter 3 (beginning with § 9200) of the Elections Code shall be accompanied by the following form statement to be signed by each proponent, and by each author, if different, of the argument: The undersigned proponent(s) or author(s) of the primary argument Against Measure on Taxation of Commercial Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that the argument is true and correct to the best of(his/her/their) knowledge and belief. Print Name RVSSEz-z- ivcA L Title V(c C-- i"I FS ' P E4/ Signature , ,7G Z (If applicable):Submitted on behalf of: I-I vry 711YG. /v 66'1chi ,CEP✓Buc4a ecs.semE-F Date A VG zl 2 v 2 (name of organization) Print Name Title Signature (If applicable):Submitted on behalf of: Date (name of organization) Print Name Title Signature (If applicable):Submitted on behalf of: 11040 Date (name of organization) n Print Name ZZ-n.� Title i�-< t 0 Signature 0-40 C") C�1 (If applicable):Submitted on behalf of: �?vM Zia f<Date (name of organization) `ft Cl Print Name t t . Crt Title Signature (If applicable):Submitted on behalf of: Date _ (name of organization) All Authors must print his/her name and sign this form (EC 9600) AND Print his/her name and sign the Argument itself (EC 9283) AND Print his/her name and sign the Rebuttal Argument itself (EC 9285) Further, pursuant to Election Code § 9282, printed arguments submitted to the voters shall be titled either "Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Argument Against Measure on Taxation of Commercial Businesses". Likewise, printed rebuttal arguments submitted pursuant to Election Code § 9285 shall be titled either"Rebuttal To Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Rebuttal to Argument Against Measure on Taxation of Commercial Businesses". Give this form to Council Members, Proponents, and Opponents of Measures The following statement shall be included on the front cover,or if none,on the heading of the first page of the printed arguments in the Voter Information Guide: Q CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION TO: Michael Gates, City Attorney FROM: Robin Estanislau, City Clerk tw r DATE: July 20, 2022 SUBJECT: CITY CLERK'S TRANSMITTAL OF REQUEST FOR IMPARTIAL ANALYSIS ON PROPOSED MEASURE APPROVED BY THE CITY COUNCIL AT THEIR JULY 19, 2022 REGULAR MEETING FOR PLACEMENT ON THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION BALLOT Pursuant to the provisions of California Elections Code Section 9280 (attached), please prepare and return to my office no later than Friday, July 29 an impartial analysis for a Measure approved by resolution on July 19, 2022 for placement on the November 8, 2022 General Municipal Election ballot: "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 No fund general municipal services for Huntington Beach and will be levied until repealed by the voters?" Let me know if you have questions. Thank you. Attachments: 1. Article 4. Arguments Concerning City Measures. 9280 Impartial analysis. 2. Notice to Voters of Date After Which No Arguments For or Against City Measures May be Submitted to the City Clerk N o c: Honorable Mayor and City Council Members c_� Al Zelinka, City Manager• ram— n �-c N 00 �o o i'fi < Zen, -o 7s. N 7/20/22, 1:18 PM Law section uutn dr " LEGISLATIVE INFORMATION Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites r�, Code: ELEC N./ Section: 9280. Search 0 Up^ « Previous Next» cross-reference chaptered bills PDF I Add To My Favorites Search Phrase: Highlight ELECTIONS CODE-ELEC DIVISION 9.MEASURES SUBMITTED TO THE VOTERS[9000-9610] (Division 9 enacted by Stets. 1994, Ch. 920, Sec. 2.) CHAPTER 3.Municipal Elections[9200-9295] (Chapter 3 enacted by Stats. 1994, Ch. 920, Sec. 2.) ARTICLE 4.Arguments Concerning City Measures[9280-9287] (Article 4 enacted by Stats. 1994, Ch. 920, Sec. 2.) 9280. Whenever a city measure qualifies for a place on the ballot, the governing body may direct the city elections official to transmit a copy of the measure to the city attorney, unless the organization or salaries of the office of the city attorney are affected. The city attorney shall prepare an impartial analysis of the measure showing the effect of the measure on the existing law and the operation of the measure. The analysis shall include a statement indicating whether the measure was placed on the ballot by a petition signed by the requisite number of voters or by the governing body of the city. If the measure affects the organization or salaries of the office of the city attorney, the governing board may direct the city elections official to prepare the impartial analysis. The analysis shall be printed preceding the arguments for and against the measure. The analysis shall not exceed 500 words in length. If the entire text of the measure is not printed on the ballot, nor in the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point bold type, a legend substantially as follows: "The above statement is an impartial analysis of Ordinance or Measure . If you desire a copy of the ordinance or measure, please call the elections official's office at (insert telephone number) and a copy will be mailed at no cost to you." (Amended by Stats. 2016, Ch. 422, Sec. 45. (AB 2911) Effective January 1, 2017.) https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionN um=9280.&IawCode=ELEC 1/1 CT0 � 9\ City of Huntington Beach � _ ; 2000 Main Street ♦ Huntington Beach, CA 92648 „ (714) 536-5227 • www.huntingtonbeachca.gov NOTICE TO VOTERS OF DATE AFTER WHICH NO ARGUMENTS FOR OR AGAINST A CITY MEASURE MAY BE SUBMITTED TO THE CITY CLERK NOTICE IS HEREBY GIVEN that the General Municipal Election is to be held in the City of Huntington Beach on November 8, 2022, at which there will be submitted to the voters the following measure: 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 municipal services for Huntington Beach and NO will be levied until repealed by the voters?" NOTICE IS FURTHER GIVEN that pursuant to Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, the legislative body of the City, or any member or members thereof authorized by the body, or any individual voter or bona fide association of citizens, or any combination of voters and associations, may file a written argument, not to exceed 300 words in length, accompanied by the printed name(s) and signature(s) of the author(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 who is the author of the argument, for or against the City measure(s). NOTICE IS FURTHER GIVEN that, based upon the time reasonably necessary to prepare and print the arguments and Voter Information Guide for the election, the City Clerk has fixed Friday, July 29, 2022, during normal office hours, as Sister City: Anjo, Japan posted, as the date after which no arguments for or against the City measure may be submitted to the Clerk for printing and distribution to the voters as provided in the Article 4. Arguments shall be submitted to the City Clerk, accompanied by the printed name(s) and signature(s) of the author(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 who is the author of the argument, at the City Hall, Huntington Beach, California. Arguments may be changed or withdrawn until and including the date fixed by the City Clerk. NOTICE IS FURTHER GIVEN that the City Council had determined that rebuttal arguments, not to exceed 250 words in length, as submitted by the authors of the opposing direct arguments, may be filed with the Clerk, accompanied by the printed name(s) and signature(s) of the author(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 who is the author of the argument, not more than 10 days after the final date for filing direct arguments. NOTICE IS FURTHER GIVEN that any ordinance, impartial analysis, or direct argument filed under the authority of the Elections Code will be available for public examination in the Clerk's office for not less than 10-calendar days from the deadline for the filing of the arguments and impartial analysis. Any rebuttal argument filed under the authority of the Elections Code will be available for public examination in the Clerk's office for not less than 10-calendar days from the deadline for filing rebuttal arguments. \f ° X(___Robin Esta lau, C City Clerk Dated: July 20, 2022 z N 2c�-=r ram- rri o-'Cc• o rn =pr' u2'Ix) < nl " t cry to Sister City: Anjo, Japan CITY ATTORNEY'S IMPARTIAL ANALYSIS OF MEASURE Measure is submitted to the voters by the Huntington Beach City Council and would amend the Huntington Beach Municipal Code to establish a Cannabis Business Tax that would apply to commercial cannabis businesses that may operate in Huntington Beach,as defined in the proposed ordinance. Background on the Measure The Huntington Beach City Council approved the submission of an ordinance for voter approval to amend the Huntington Beach Municipal Code("HBMC")to establish a general tax that would apply to commercial cannabis businesses that may operate in Huntington Beach. The ordinance would establish 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 cannabis cultivation, manufacturing,testing laboratory, and distribution businesses. The general tax must be approved by a majority of the voters in Huntington Beach,the proceeds of which would be deposited into the City's General Fund to be used for any lawful City program or service. The City Council cannot repeal this general tax or set any adjusted rate that exceeds the maximum rates,without voter approval at an election. Effects of the Measure If passed, Measure would amend the HBMC to impose a general tax on commercial cannabis businesses as defined in the proposed ordinance.The tax is imposed on commercial cannabis businesses and is not a sales tax imposed on qualified patients,primary caregivers or customers. The tax would apply to businesses operating both legally and illegally;however, it should be noted that the Measure does not authorize or permit any type of commercial cannabis businesses. Monies from the proposed Cannabis Business Tax would be deposited into the General Fund. The total amount of the tax would depend on the gross receipts of the business. The Measure sets taxation rates that could be adjusted by the City Council periodically, so long as the rates do not exceed the maximum rates approved by voters. The Cannabis Business Tax would be paid in arrears, on a monthly basis and failure to timely pay would result in certain increasing fines and penalties. Measure requires a simple majority vote of 50%plus 1 to pass. A"yes"vote for Measure will establish a Huntington Beach Cannabis Business Tax if commercial cannabis businesses ever become allowed.A"no"vote against Measure will not establish such a tax. The above statement is an impartial analysis of Measure_. Copies of the text of the proposed ordinance is available in the City Clerk's Office,public libraries,and on the City's website at 22-11096/277673 .a https://huntingtonbeachca.gov/. For more information, contact the City Clerk's Office at(714) 536-5227. I declare,under penalty of perjury,that I am employed CD by the City of Huntington Beach,in the Office of the [) c: City Clerk and that I posted this public notice on the WIJ CV LG CT),tfkih posting bulletin board at the Civic a., ; .-it Center on at Si:3 a.m./p .j02 Date 7' /ZW W On CJy. La .—.J r—U2 Signature /0/j?/fLA(1CJ,/ (/ CC --) 5 2 Senior Deputy ity Clerk r r A 22-11096/277673 • ARGUMENT IN FAVOR OF MEASURE ON TAXATION OF COMMERCIAL CANNABIS BUSINESSES Please vote YES on Measure to establish a tax rate for cannabis businesses should they ever be permitted in Huntington Beach. During the June 2022 primary election,nearly 2/3 of those Huntington Beach residents who voted,voted in favor of a measure nearly identical to this one. It fell just shy of the two-thirds margin needed to pass a Special Tax. The tax is now proposed here in Measure as a General Tax,which, under our City Charter,requires a simple majority to pass. YES, on Measure does not approve or allow for cannabis businesses to open and operate in Huntington Beach. YES,on Measure establishes local control and ensures that if allowed,commercial cannabis businesses operating in Huntington Beach will pay their fair share of taxes. This general tax will provide Huntington Beach with additional General Fund revenue that could be used for any lawful purpose such as homeless prevention and intervention services, improving parks and roads and Public Safety. YES,on Measure simply permits the City to collect a tax from cannabis businesses if allowed to operate in the community. By acting now,the City will have a tax in place if cannabis businesses are approved later or imposed upon us by Sacramento. Measure is fiscally responsible, timely,and prudent. Make sure that commercial cannabis businesses pay their fair share! Please join us in voting YES on Measure . For more information,visit www.huntingtonbeachca.gov/cannabis "The undersigned authors of the Direct Argument in favor of Measure_ on Taxation of Commercial Cannabis Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that such argument is true and correct to the best of their knowledge and belief" Sincerely Signed � "" Date� 2.� ZZ Rhonda Bolton,Huntington Beach City Councilmember • Signed Date il9Q1(acQ Kim Carr, Huntington Beach City Councilmember Signed l Date 7A 6z, Dan ci, m ton Beach City Councilmember • -1. N XJ --1 C rn �—4 VZ4fT1 o'"n za < an"x, m m W I declare,under penalty of perjury,that I am employed by the City of Huntington Beach,in the Office of the City Clerk and that I posted this public notice on the posting bulletin board at the Civic Center on at 5-'36 a.m./ Date �1 Z Signature ,(� ti/17/K.�/ • , Senior Deputy City Clerk Argument Against the Measure on Taxation of Commercial Cannabis Businesses Do not be deceived by this so-called "Tax Measure." The City Council will use your"Yes" vote on this measure as an excuse for them to legalize cannabis growing, manufacture, warehousing, distribution and retail sales all over the city,and they can do that without your further vote. The promised tax is"up to" 6%and 1%. That means they can set the tax lower,even at zero. So, the promised windfall might turn out to also be zero. Plus, even the promised money would barely pay for one more police officer, and we'll need many more than that if this passes! Measure A on the June election was earmarked for police and homeless programs. This measure puts the money in the general fund,to be wasted however the Council wants. You cannot look at the tax revenue without considering what legal cannabis will do: Legal cannabis will increase the number of impaired drivers on our roads. Legal cannabis will actually increase illegal cannabis, like it does everywhere it is tried. Legalized cannabis will increase the risk of experimentation and addiction for our children. Dangerous edibles will find their way to your children and voting for this could cost your kid their life. All types of cannabis businesses pollute the air and consume precious water resources. This will fill the air you breathe with its well-known stench. Every place that has legalized recreational cannabis in this manner has come to regret it. Do not turn your city over to Big Cannabis and its supporters on the City Council. The last thing we need is yet another special interest controlling our city! For more information and documentation see: hops://hbra.us/wp-content/uploads/2022/07/No-on-HB- Pot-Shops.pdf "The undersigned authors of the Direct Argument Against the Measure on Taxation of Commercial Cannabis Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that such argument is true and correct to the best of their knowledge and belief." Signed: a- �! Date: 7- 2 ge -- 2 D Z Z o Russell Neal,Vice President of Huntington Beach Republican Assembly c " m I declare,under penalty of perjury,that I am employed on-< N co in by the City of Huntington Beach,in the Office of the 0<c� City Clerk and that I posted this public notice on the ZOrf. zs (lLriGiyosting bulletin board at the Civic CO = i�1 Center onriil-Tdu �� a.m./p ti. ODate 3 l24 ) Signature L4\.4f i 1 c-/) Senior Deputy-City Clerk • FORM OF STATEMENT TO BE FILED BY AUTHORS OF ARGUMENTS All arguments concerning measures filed pursuant to Division 9, Chapter 3 (beginning with §9200) of the Elections Code shall be accompanied by the following form statement to be signed by each proponent, and by each author, if different, of the argument: The undersigned proponent(s) or author(s) of the primary argument Against Measure on Taxation of Commercial Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that the argument is true and correct to the best of(his/her/their)knowledge and belief. Print Name l (1SsE 1-'- ,'vc A L- Title �� �j�� V'1 C'L' e(t t=S , P F N T / -y Signature ."-- ' ,0`4< (if applicable):Submitted on behalf of: f1✓NT/NG.T)nv t L / l-I I&EP✓0tIC4ia- rf$36M1O Date A V C 2- Z o 2 2 (name of organization) Print Name Title Signature (If applicable):Submitted on behalf of: Date (name of organization) Print Name Title Signature (If applicable):Submitted on behalf of: �.. Date (name of organization) Z n ;U Print Name e)-, G.) fT1 Title i 0 Signature p..co W f (If applicable):Submitted on behalf of: mor. < Date r., rn A (name of organization) Y? 0 Print Name t F Title Signature (If applicable):Submitted on behalf of: Date (name of organization) All Authors must print his/her name and sign this form (EC 9600) AND Print his/her name and sign the Argument itself (EC 9283) AND Print his/her name and sign the Rebuttal Argument itself (EC 9285) Further, pursuant to Election Code § 9282, printed arguments submitted to the voters shall be titled either "Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Argument Against Measure on Taxation of Commercial Businesses". Likewise, printed rebuttal arguments submitted pursuant to Election Code § 9285 shall be titled either"Rebuttal To Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Rebuttal to Argument Against Measure on Taxation of Commercial Businesses". Give this form to Council Members,Proponents, and Opponents of Measures The following statement shall be included on the front cover,or if none,on the heading of the first page of the printed arguments in the Voter Information Guide: Rebuttal to Argument In Favor of Measure on Taxation of Commercial Cannabis Businesses This is a lot more than a "just-in-case"tax measure. A"Yes"vote on this measure will be interpreted by the City Council as a"Yes"vote for legalizing recreational cannabis sales all over this city. If this measure is approved,the Council will have your"green light"to legalize retail recreational cannabis stores anywhere they want. Those of us who have been following the push for legalized retail cannabis recognize this as something Big Cannabis has been pushing for with their allies on the City Council with minimal community notice or input. The so-called "Town Hall,"a video of which is available on the City's cannabis site,consisted of forty representatives of the cannabis industry and one ordinary citizen. Some community input! Hasn't this Council done enough to diminish our quality of life? Do we need to Join Costa Mesa and Santa Ana in a race to the bottom? Vote"No" on Measure ! The undersigned proponent or author of the Rebuttal to Argument In Favor Measure on Taxation of Commercial Cannabis Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8,2022, hereby states that such argument is true and correct to the best of their knowledge and belief. Signed: �z�%x �� 6 Date: A 06 2 Russell Neal,Vice President of Huntington Beach Republican Assembly IMO c NO I declare,under penalty of perjury,that I am employed x_ c� c JO by the City of Huntington Beach, in the Office of the Zc�-: City Clerk and that I posted this public notice on the -4 0 w rn O L . posting bulletin board at the Civic zoo; -o < Center on i /4 t .-?,%5 a.m. no .4, rri Date . •SP— r ) CI Signature Senior Deputy Clerk REBUTTAL TO ARGUMENT AGAINST MEASURE _ ON TAXATION OF COMMERCIAL CANNABIS BUSINESSES Contrary to its opponent's assertions, Measure would only establish a tax rate for cannabis businesses if ever permitted in Huntington Beach, nothing more. The opponent of this Measure makes tired and spurious claims about a now mature cannabis industry and marketplace. They cite tabloid headlines and use the arcane scare tactics of"Reefer Madness"from a bygone era. Huntington Beach supports legal and regulated cannabis sales; Nearly 2/3 of voters in June supported an almost identical tax. The truth is legal and regulated cannabis makes communities safer, works to drive out the illicit market and will revitalize our aging shopping centers. Other Orange County cities, like Santa Ana and Costa Mesa that were early adopters of cannabis policy are now racing to expand an industry that's brought jobs and commerce to their cities. If we do nothing, what happened in Hermosa Beach, and may happen in Redondo Beach and Manhattan Beach,will happen in Huntington Beach. Two voter-initiated ballot measures were brought in for petition circulation last year. These would've let the cannabis industry drive regulatory process to the detriment of the community. Rather than passively stand by while outside interests seek to dictate our cannabis rules— something Measure 's opponents should want to avoid, given their criticism of"special interests"— we're acting now to maintain local control of this issue. Huntington Beach has held numerous study sessions and meetings and will continue to publicly engage the community and all stakeholders as we continue crafting cannabis policy for Huntington Beach. Please vote YES on Measure . For more information, visit www.huntingtonbeachca.gov/cannabis "The undersigned proponent(s) or author(s) of the Rebuttal to Argument Against Measure_ on Taxation of Commercial Cannabis Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that such argument is true and correct to the best of their knowledge and belief." n III� Sincerely — .s '^ oo fO Signed Date 1 c �l �j I Z. a-. Rhonda olton, Huntington Beach City Councilmember 0 a T Signed - Date o12 Kim Can, Huntington Beach City Councilmember . 5 a � r� � Q � a v c > •c c i L N Signed � Date clg(76"7T o m 113 o a .> Dan Kalmick, Hutton Beach City Councilmember v u - -o E c t '° — a 0 0 «. FORM OF STATEMENT TO BE FILED BY AUTHORS OF ARGUMENTS All arguments concerning measures filed pursuant to Division 9, Chapter 3 (beginning with § 9200) of the Elections Code shall be accompanied by the following form statement to be signed by each proponent, and by each author, if different, of the argument: The undersigned proponent(s)or author(s) of the Rebuttal to Argument Against Measure on Taxation of Commercial Cannabis Businesses at the General Municipal Election for the City of Huntington Beach to be held on November 8, 2022, hereby state that the argument is true and correct to the best of(his/her/their) knowledge and belief. Print Name Rhonda Bolton Title Huntington Beach City Councilmember (If applicable):Submitted on behalf of: Signature (name of organization) Date � 9 7-7-- Print Name Kim Carr Title Huntington Beach City Councilmember (If applicable):Submitted on behalf of: Signature (name of organization) Date 1-/oa, Print Name Dan Kalmick Title Huntington Beach City Councilmember Title Signature (If applicable):Submitted on behalf of: Date a2� (name of organization) Print Name Title (If applicable):Submitted on behalf of: Signature (name of organization) Date_ Print Name Title N (If applicable):Submitted on behalf of: Signature c �s —4 C) ry (name of organization) Date ern-- IT" CO r'r't All Authors must print his/her name and sign this form (EC 9600) Zoe -v AND 03"an rr • Print his/her name and sign the Argument itself (EC 9283) AND ? w Print his/her name and sign the Rebuttal Argument itself (EC 9285) o Further, pursuant to Election Code § 9282, printed arguments submitted to the voters shall be titled either "Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Argument Against Measure on Taxation of Commercial Businesses". Likewise, printed rebuttal arguments submitted pursuant to Election Code § 9285 shall be titled either"Rebuttal To Argument In Favor Of Measure on Taxation of Commercial Businesses" or "Rebuttal to Argument Against Measure on Taxation of Commercial Businesses". Give this form to Council Members, Proponents, and Opponents of Measures The following statement shall be included on the front cover,or if none,on the heading of the first page of the printed arguments in the Voter Information Guide: § 9200, 9282, 9283, 9285, 9600 E.C. Statement of Authors of Arguments F -A- 1 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 members) of its body: Rhonda Bolton (Councilmembe In Favo Against) Kim Carr (Councilmembe n av Against) Dan Kalmick (Councilmember n av(_*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 . the City of Huntington Beach at a regular meeting thereof held on the 19th day of July, Mayor REVIEWED AND ."ROVED: APPROVED AS TO FORM: 14046, Cityii r t A rney v�W IN IATED AND APPROVED: Assistant City Mana er 3 22-II582/287895 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 94tt,Z14,14t4d 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 yor REVIEWED PPROVED: APPROVED AS TO FORM: City Manager City orney IATED AND APPROVED: Ilbrk er Assistant City Manager 2 22-11582/287644 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 4-40t, 9444424.140 City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California