Cannabis

2022 City of Huntington Beach Local Ballot Measure O - Taxation on 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$300,000 to $600,000 annually to fund general municipal services for Huntington Beach and will be levied until repealed by the voters?” [YES / NO]

Huntington Beach voters have an opportunity to vote on Measure "O" on the upcoming November 8, 2022 General Election, a measure regarding taxation on cannabis businesses.
This ballot measure would impose a General Tax on commercial cannabis businesses if they were ever to be permitted in Huntington Beach. Retailers (storefront and delivery) would be taxed up to 6% of gross receipts, and any other types of non-retail cannabis businesses (indoor cultivators, distributors, testing labs, and manufacturers) would be taxed up to 1% of gross receipts. It would allow the City Council to adjust the rate of the cannabis business tax not to exceed a prescribed maximum (for example, the City Council could establish a lower tax rate on medical cannabis sales for patients over 18 years old).
Unlike Measure A, if passed, the tax revenue would be deposited into General Fund, which can be used for a wide range of general municipal services for Huntington Beach.
Unlike Measure A, to pass, Measure O requires a simple majority of votes (50%+1).
Voting YES on Measure O does not mean that cannabis businesses would be automatically permitted or approved to open and operate in the City. The City would be working with its constituents to establish cannabis policies and regulations if the Measure passes and/or such businesses are permitted at a later time.

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FAQ about Cannabis & GIS map

The City's FAQ / fact sheet about cannabis is now available for the public. Please access it HERE.

The current proposal by the Ad-hoc Subcommittee and GIS map of candidate sites for cannabis retailers and non-retailers in Huntington Beach can be found HERE but please know that this is reference only.

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**Cannabis Conversations Open House**

The City wishes to thank residents and community stakeholders for attending the Cannabis Conversations Open House event on October 15, 2022 at the Central Library. Approximately 40 residents and community stakeholders participated in one-on-one conversations with City staff and Councilmembers and provided their input on a proposed cannabis business regulatory framework, especially land use and buffer restrictions from sensitive uses.

Questions or written comments can also be emailed to [email protected] before November 1, 2022.

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Community Input on Cannabis Regulatory Framework

The City of Huntington Beach is seeking input from residents, businesses, and community stakeholders to guide its development of a regulatory framework for commercial cannabis businesses if they are to be permitted.

Approximately 64.6% of Huntington Beach voters supported "Measure A: Cannabis Business Tax" on June 7, 2022 Primary Election, but failed to reach 2/3 of voters required to pass. On the July 5, 2022 meeting, the City Council considered placing two City-sponsored ballot measures regarding cannabis business regulation and taxation for voter approval on the November 8, 2022 General Municipal Election. On the July 19, 2022 meeting, the City Council voted and adopted resolutions to place only one ballot measure asking voters whether to impose General Tax on commercial cannabis businesses if they were to be allowed in Huntington Beach.

The City Council also directed the Ad Hoc Subcommittee and City staff to continue working towards developing regulatory and zoning ordinances for the City Council's consideration at a future meeting.

The DRAFT ordinances are here for your review:

DRAFT Ordinance No. XXXX (Business Regulation): An Ordinance amending Chapter 5 of the Huntington Beach Municipal Code and Adding Section 5.130.
DRAFT Ordinance No. XXXX (Land Use Regulation): An Ordinance amending the Chapters 211 and 212 of the Zoning and Subdivisions Ordinance and amending the Title 20 of the Zoning and Subdivisions Ordinance by repealing Section 204.18, 204.20, and 204.22 and adding Section 230.54.
DRAFT Commercial Cannabis Regulation including standard operational standards.

You are encouraged to share your thoughts and suggestions about the DRAFT ordinances. Written comments and feedback can be emailed to [email protected].

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Cannabis Community Forum on Thursday, June 9, 2022

The City wishes to thank residents and community stakeholders for attending the Cannabis Community Forum on Thursday, June 9, 2022 in person and via Zoom and for providing valuable input. City staff presented key regulatory features of the draft ordinances and the public had an opportunity to hear from members of the City Council's subcommittee (Councilmembers Bolton, Kalmick, and Peterson), ask questions, and provide comments.

The City may have an additional town hall or community forum. Please email to [email protected] to subscribe to a listserve to be notified of any future meetings.

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Measure A: Cannabis Business Tax - Special Tax

“Shall the City adopt a special tax measure of up to 6% of gross receipts on cannabis retailers and up to 1% of gross receipts on all other cannabis businesses, which is expected to generate an estimated $300,000 to $600,000 annually for the specific purposes of funding police and homeless and behavioral health services, and levied until terminated by voters?” [YES / NO]

This measure was placed on the June 7, 2022 Statewide Primary Election for Huntington Beach voters' approval. If passed, the revenue generated from this Special Tax would have been dedicated specifically to funding police and homeless prevention and intervention, and mental/behavioral health services.
Measure A failed to reach a 2/3 of voters required to pass.

MEASURE A – ARGUMENT IN FAVOR
MEASURE A – CITY ATTORNEY’S IMPARTIAL ANALYSIS
No arguments were submitted in opposition to MEASURE A.

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Relevant Documents & Contact Info

For any questions, please contact the City Manager’s Office at 714-536-5202. You can also contact the City Clerk's Office at 714-536-5227 or visit the City's Election page here: https://www.huntingtonbeachca.gov/government/election_info/.

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