Agenda Item Wording:
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Ordinance adoption - Second reading and adoption of Ordinance No. 2026-05, adding Chapter 4.04, “Commercial Cannabis Activity” to the Visalia Municipal Code; rescinding Chapter 5.66; amending Chapter 8.64; and approving Zoning Text Amendment No. 2026-01, and adoption of Resolution No. 2026-42, establishing the application and selection process for both storefront and non-storefront retail cannabis business license applications.
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Agenda Date: 08/03/2026
Prepared by:
Devon Jones, Economic Development Manager, devon.jones@visalia.gov, (559) 713-4190
Paul Bernal, Planning and Community Preservation Director, paul.bernal@visalia.gov, (559) 713-4025
Department Recommendation: Staff recommends that the City Council conduct the second reading and adopt Ordinance No. 2026-05 and adopt Resolution No. 2026-42.
Summary:
On July 20, 2026, the City Council held a public hearing to consider the first reading of Ordinance No. 2026-05, adding Chapter 4.04, “Commercial Cannabis Activity” to the Visalia Municipal Code, rescinding Chapter 5.66, amending Chapter 8.64, and approving Zoning Text Amendment No. 2026-01 to establish the regulatory framework for Commercial Cannabis businesses to operate within the City. Further, Council adopted Resolution No. 2026-42, establishing the application and selection process for both storefront and non-storefront retail cannabis business license applications, with a change to the required annual Community Benefits Agreement minimum cash value amount to $75,000 or 1.5% of annual gross receipts, whichever is greater.
At the meeting, no one from the public spoke. After closing the public hearing, the City Council voted (5-0) to conduct the First Reading of Ordinance No. 2026-05 and adopt Resolution No. 2026-42 with the proposed amendment. The second reading of the Ordinance is the final action the City Council takes in order for Ordinance No. 2026-05 to take effect, and given the revision made to Resolution No. 2026-42, staff is bringing the amended resolution for Council’s adoption. Following the second reading and Council adoption, the ordinance will go into effect 30 days following adoption of the second reading.
Background Discussion:
Although Ordinance No. 2026-05 is worded to establish the number of Cannabis businesses permitted to operate within the City at zero, the adoption of Ordinance No. 2026-05 establishes the regulatory framework for a Cannabis Business program but would not allow any such businesses to operate within the City until such time City Council passes a resolution changing that amount. Additionally, staff will return with a separate resolution that will establish the Cannabis Business Fee Program upon completion of the fee analysis process with consultant, HdL.
Fiscal Impact including annual maintenance and operating costs: None at this time
Prior Council Action:
• On July 20, 2026, Council held a public hearing and introduced the first reading of Ordinance No. 2026-05 and adopted an amended Resolution No. 2026-42 establishing the application and selection process for both storefront and non-storefront retail cannabis business license applications.
• On March 16, 2026, Council provided additional input re: the establishment of a cannabis business ordinance and corresponding business application and selection review process and authorized amending the existing sole source contract with HdL to provide assistance with the preparation of a fee nexus study to determine all applicable fee amounts in the City’s cannabis business program and appropriated $12,000 from the General Fund for this contract amendment.
• On July 21, 2025, Council provided additional input re: the establishment of a cannabis business ordinance and corresponding business application and selection review process.
• On May 5, 2025, Council provided initial input on draft cannabis business ordinance and corresponding business application and selection review process.
• On March 3, 2025, Council authorized staff to proceed with drafting a cannabis business ordinance for adoption but during the adoption process, set the number of businesses permitted to operate in the City to zero effectively establishing the regulatory framework for such businesses but not yet permitting such businesses to operate and amend the existing contract with HdL to include the additional scope of work totaling $24,600 and appropriate an additional $5,000 from the General Fund.
• On July 15, 2024, Council adopted an amended Resolution 2024-24 to place a cannabis tax measure on the November 2024 general election ballot.
• On June 17, 2024, Council conducted the second reading and adoption 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.
• On June 3, 2024, Council conducted 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 adopted Resolution 2024-24 to place a cannabis tax measure on the November 2024 general election ballot.
• On May 20, 2024, Council authorized staff to present an ordinance to include a local cannabis tax measure for voter consideration on the Tulare County November 2024 General Election ballot.
• On May 6, 2024, Council authorized staff to continue working with HdL to develop a local cannabis tax measure and ballot language to be included on the November 2024 ballot and appropriated $20,000 from the general fund for the development of tax measure informational materials.
• On November 20, 2023, Council conducted the second reading and adoption of Ordinance No. 2023-13 for Zoning Text Amendment No. 2023-02, a request by the City of Visalia to amend Visalia Municipal Code Chapter 17.25, add Section 17.32.167, amend Chapter 8.64, and add Chapter 5.66 in order to address upcoming state mandated changes as a result of the passage of SB 1186, and to establish objective standards for permitting delivery only medical marijuana retail establishments within the City of Visalia.
• On November 11, 2023, Council authorized the City Manager to award a contract to HdL Companies for an amount not to exceed $35,000, with a total budget of $40,000.
• On November 6, 2023, the City Council authorized the City Manager to award a contract to FM3 Research for an amount not to exceed $39,500, with a total budget of $45,000.
• On July 17, 2023, Council directed staff to initiate a zoning ordinance update to implement reasonable zoning regulations in response to SB 1186 and hire a consultant, via a sole source contract, to assist staff with the preparation of a potential tax measure specifically for cannabis sales for the 2024 general election and to identify potential revisions to cannabis regulations in Visalia.
Alternatives: Per Council direction
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to conduct the second reading and adopt Ordinance No. 2026-05 and adopt Resolution No. 2026-42.
Environmental Assessment Status: Exempt from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).
CEQA Review: The project is exempt from further environmental review under the CEQA Guidelines section 15061(b)(3), which states that the project is exempted from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
Deadline for Action: 08/03/2026
Attachments:
1. Attachment 1: Ordinance No. 2026-05
2. Attachment 2: Resolution No. 2026-42
3. Map 1: Final buffer map
4. Map 2: Visalia Industrial Park Overlay
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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