Agenda Item Wording:
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Authorize 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, and a contract to FM3 Research for an amount not to exceed $39,500, with a total budget of $45,000, to assist in the preparation of a potential local sales tax measure for cannabis sales for the 2024 general election and identify potential cannabis regulations, and appropriate $85,000 from the General Fund.
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Deadline for Action: 11/6/2023
Submitting Department: Community Development
Contact Name and Phone Number:
Devon Jones, Economic Development Manager, devon.jones@visalia.city, (559) 713-4190
Paul Bernal, Community Development Director, paul.bernal@visalia.city, (559) 713-4025
Department Recommendation:
Authorize 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, and a contract to FM3 Research for an amount not to exceed $39,500, with a total budget of $45,000, and appropriate $85,000 from the General Fund.
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 becomes effective on January 1, 2024, will prohibit 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 could legally operate in the City of Visalia as long as they sold medicinal cannabis via delivery only (i.e., no retail store front).
Applicable local taxes can be charged under SB 1186, but no specific excise tax for cannabis currently exists within the city. At this time, when the law becomes effective on January 1, 2024, only the normal business license f...
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