DATE: November 6, 2023
TO: Council Economic Development Committee
FROM: Development Services Director
SUBJECT
Title
Commercial Cannabis Program: Status Update on Existing Cannabis Businesses and Discussion on a Possible Restorative Justice Component Tied to Program Enforcement
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RECOMMENDATION
Recommendation
That the Council Economic Development Committee (CEDC) reviews the report and provides feedback and direction to staff regarding the challenges to opening cannabis business and a prospective restorative justice component of the City's Commercial Cannabis Program.
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SUMMARY
In 2017, Council adopted a new regulatory and land use ordinance to establish guidelines for personal cultivation and establish land use guidelines and development standards to allow for commercial cannabis cultivation, distribution, delivery, manufacturing, testing, and retail dispensary activities in the City. In 2021, amendments were made to the City's commercial cannabis regulatory framework to address several issues and inconsistencies with recent changes in State law and create a streamlined process to evaluate and select commercial cannabis operators, consistent with industry best practices.
Despite the most recent program and regulatory updates to the Commercial Cannabis Program, eight of the thirteen permitted cannabis businesses have not opened and are in varying stages of the process (Attachment II). Based on feedback from various applicants, staff identified three possible explanations that may be impacting the opening of those cannabis businesses, which are summarized in this report.
In February 2023, Council adopted additional amendments to the fees and penalties portion of the Commercial Cannabis Program to help clarify when fees and penalties are assessed and to curtail the number of illegal cannabis operations in Hayward. At that time, Council also recommended a restorative justice component be considered ...
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