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City Council Opposes Cannabis Industry Initiative That Will Be On The November Ballot

Government and Politics

May 28, 2022

From: City Of Hermosa Beach

Measure would Repeal Hermosa Beach’s Retail Cannabis Sales Ban; Allow Establishment of up to Two Retail Storefronts

Hermosa Beach – The Hermosa Beach City Council voted unanimously Tuesday night to oppose the cannabis industry initiative on the November 8 ballot that would repeal the City’s current ban on retail cannabis sales within the City limits. If approved by the voters, the initiative would allow for the establishment of up to two retail storefront cannabis operations in Hermosa Beach. 

“The Council opposes this ill-conceived attempt by the cannabis industry, to change our City’s current ban on cannabis sales,” said Hermosa Beach Mayor Michael Detoy. “The residents, cannabis stakeholder group and Council all agree that the cannabis industry initiative was written to advance their business interests with little regard for the potential impact on our community.”

The cannabis industry initiative doesn’t include a tax on cannabis operations. The Cannabis Advisory Group, which held public meetings to provide the City Council with input on whether the City’s current ban on cannabis business operations should be modified, recommended the City Council place a measure on the November 8 ballot that would impose a tax on cannabis if voters approve the cannabis industry initiative. 

The City Council voted 3-2 to direct City staff to prepare a City-sponsored tax measure that would impose a business license tax on retail and/or delivery cannabis operations, if the City Council changes the City’s current ban on cannabis deliveries or the voters approve the cannabis industry initiative. The Council will then vote on whether or not to put the City-sponsored cannabis tax measure on the November ballot. City Attorney Michael Jenkins told the Council that four votes are required to put the City-sponsored cannabis tax measure on the ballot.

There are currently no retail operations in Hermosa Beach and cannabis deliveries are also illegal in the City limits. But some members of the Cannabis Advisory Group, the community and the City Council noted that cannabis sales are conducted in the City through delivery services, which are difficult to track or enforce. 

A majority of the Cannabis Advisory Group called for repealing the City’s ban on cannabis deliveries in Hermosa Beach. The City Council on Tuesday directed staff to prepare an ordinance that would end the ban on cannabis deliveries. The proposed ordinance will be brought back to the City Council for further discussion and public input before the Council decides whether or not to adopt it.

The Council also voted to have the City staff prepare a report on the impact that retail cannabis sales – if approved by voters – would have on the City’s policies and public safety, as well as to review health considerations.