TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing, and adopt resolution amending the Master Fee and Charges Schedule for Adult-Use Cannabis Business application fees, permitting fees, and fines and penalties for violations of Chapter 5.92 of the Long Beach Municipal Code. (Citywide)
DISCUSSION
City Council approval is requested to establish adult-use cannabis business license application and annual permit fees, as well as fines and penalties related to illegal cannabis operations. The proposed fees are necessary to offset City department costs associated with regulating adult-use cannabis businesses in Long Beach.
Proposed fee amounts are based on the costs reasonably borne by the Police, Fire, Health, Financial Management, Economic Development, City Attorney, and City Manager Departments necessary to effectuate Long Beach Municipal Code (LBMC) Chapter 5.92, relating to Adult-use cannabis businesses. Costs to these departments will accrue throughout the application, licensing, and inspection processes. The proposed amendment includes administrative civil penalties for violation of LBMC Chapter 5.92 by illegal cannabis operations. The full list of proposed application and regulatory permit fees to implement the Adult-Use Cannabis Business Ordinance can be found in Attachment A.
Adult-use cannabis cost recovery through fees will allow the City to charge businesses directly for the services that they receive from the City. Without establishing new fees, the General Fund will be required to subsidize adult-use cannabis activities. This may result in forced reductions to other General Fund service areas. Cannabis business license tax revenues have thus far been insufficient to fund citywide cannabis regulatory activities.
The proposed fees are consistent with cannabis business fees established in other cities across California. A summary of cannabis business license application and permitting fees that ha...
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