Agenda Item Wording:
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Ordinance Adoption - Public Hearing and first reading of Ordinance No. 2024-06, adding Chapter 3.14 (Cannabis Business Tax) to Title 3 of the Visalia Municipal Code to establish a tax on cannabis business activities within the city, and adopt Resolution 2024-24 to place a cannabis tax measure on the November 2024 general election ballot.
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Deadline for Action: 6/3/2024
Submitting Department: Community Development
Contact Name and Phone Number:
Devon Jones, Economic Development Manager, devon.jones@visalia.city, (559) 713-4190
Department Recommendation:
Staff recommends that the City Council receive a presentation and staff report, hold a public hearing and introduce the first reading of Ordinance No. 2024-06, adding Chapter 3.14 (Cannabis Business Tax) to Title 3 of the Visalia Municipal Code to establish a tax on cannabis business activities within the city, and adopt Resolution 2024-24 to place a cannabis tax measure on the November 2024 general election ballot.
The Cannabis Business Tax will not take effect unless the tax measure is approved by the voters on November 5th, 2024.
Background Discussion:
Senate Bill (SB) 1186, the "Medicinal Cannabis Patients' Right of Access Act" was signed into law in late 2022. This state law, which became effective on January 1, 2024, prohibits local agencies from enforcing any local regulations that prohibit the retail sale by delivery of medicinal cannabis. After this date, "delivery only" (i.e., delivery of medicinal cannabis) businesses will be permitted, subject to reasonable zoning regulations for public health and safety, within the City of Visalia. This means that warehouse-based businesses can legally operate in the City of Visalia as long as they sell medicinal cannabis via delivery only (i.e., no retail store front).
On July 17, 2023, Council authorized staff to initiate a zoning ordinance update to implement reasonable zoning regulations in response to SB 1186. On November...
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