San Pablo header
File #: 24-268    Version: 1 Name:
Type: RESOLUTIONS Status: Passed
File created: 7/3/2024 In control: City Council
On agenda: 7/15/2024 Final action: 7/15/2024
Title: CONSIDER ADOPTING RESOLUTION PLACING A MEASURE SEEKING TO IMPOSE A CANNABIS BUSINESS LICENSE TAX ON THE BALLOT FOR THE GENERAL MUNICIPAL ELECTION PREVIOUSLY CALLED FOR NOVEMBER 5, 2024 CEQA: This proposed action is not a project as defined by CEQA.
Attachments: 1. Att A - RES Cannabis Business Tax 2024-07-15, 2. Exhibit 1 (to Attachment A)- Cannabis Business Tax Ordinance 2024-07-15, 3. Att B - City of San Pablo HdL Fiscal Analysis May 3 2023 FINAL, 4. Att C - 2023 SRI Annual Survey Results – Figure 7: Allow Sale of Cannabis, 5. Att D - Cannabis (Electorate Ballot Language) 7-10-2024, 6. PPT - Cannabis Business License Tax Measure No 2024 Ballot 2024-07-15
PREPARED BY: MATT RODRIGUEZ AND DATE OF MEETING: 07/15/2024
BRIAN HICKEY

SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION PLACING A MEASURE SEEKING TO IMPOSE A CANNABIS BUSINESS LICENSE TAX ON THE BALLOT FOR THE GENERAL MUNICIPAL ELECTION PREVIOUSLY CALLED FOR NOVEMBER 5, 2024

CEQA: This proposed action is not a project as defined by CEQA.


Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution

BODY
COMPLIANCE STATEMENTS
Placement of a proposed cannabis business license tax on the November 5, 2024 general election ballot for voters' consideration supports the major policy goal of "Focus on Economic Development and Fiscal Diversification" contained in the City of San Pablo City Council Priority Work Plan FY 2023-25, effective May 1, 2023. This action is a continuation of Priority #410 - "Explore and Research Cannabis Commercial Uses and Impacts". On December 13, 2023, the City Council further amended the City Council Priority Workplan and Major Policy Goal "Focus on Economic Development and Fiscal Diversification" to include the additional priority of "New Strategic Budget Initiatives to Address New Structural Deficits Forecasted for FY 2025-2027 Period" which further includes a specific initiative thereunder to "Identify New General Fund Annual Revenue Sources".


RECOMMENDATION
Staff recommends that that the City Council adopt a resolution placing a measure on the ballot for the November 5, 2024 general election, seeking to impose a cannabis business license tax. The proposed measure is in the form of an Ordinance that, if enacted by more than 50% of the voters, will add Chapter 5.11 to Title 5 of the San Pablo Municipal Code, creating a tax on the privilege of conducting any cannabis business that may be authorized by the City of San Pablo in the future.

Since the proposed tax is a "general tax", with revenues being available to the City for any legitimate government purpose, Government Code Section 53724...

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