HomeMy WebLinkAbout2094ORDINANCE NO. 2094
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING THE PALM SPRINGS
MUNICIPAL CODE TO PROVIDE THAT CANNABIS
DISPENSARY BUSINESS PERMIT APPLICATIONS WILL
NOT BE ACCEPTED, PROCESSED OR APPROVED BY
THE CITY, BETWEEN JANUARY 1, 2024 AND DECEMBER
31, 2027
Citv Attornev's Summa
This ordinance provides for a temporary pause on the
acceptance, processing or approval of cannabis dispensary
business permits, during the period of January 1, 2024
through December 31, 2027.
WHEREAS, as of February 8, 2024, the existing cannabis retail industry in Palm
Springs includes twenty six (26) operating Storefront Cannabis Storefront Retail
businesses, eight (8) permitted -nonoperational Cannabis Retailer businesses, and one
(1) Cannabis Retailer pending ; and
WHEREAS, based on data from the City of Palm Springs Office of the Finance
and Treasury regarding revenue trends among cannabis retail businesses, it appears
' doubtful that the Palm Springs market can sustain additional cannabis dispensary
businesses in a number greater than those already in the application pipeline; and
WHEREAS, in addition, new applicants for cannabis retail businesses permits slow
the pace of the permitting process for earlier applicants, as limited City resources must
be distributed to process pending applications. Many Equity Program applicants qualify
for a reduction or waiver of permit fees, so the burden of processing additional
applications must largely be borne by scarce General Fund revenues; and
WHEREAS, the City Council finds that the above considerations warrant the City's
ceasing to accept, process or grant new applications for cannabis retail businesses for a
period of four (4) years.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION 1. Palm Springs Municipal Code section 5.55.095 is hereby amended
to add a new subsection (C) to read as follows:
"(C) Applications for Cannabis Business Permits (Dispensaries)
' The City Manager shall decline to accept for processing, and shall not
process or approve, any application for a Cannabis Business Permit
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Ordinance No. 2094
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(Dispensaries) under Section 5.55.095, if such application was not deemed '
complete prior to January 1, 2024. This subsection shall not apply to
Microbusinesses. No later than June 30, 2027, the City Manager shall
submit to the City Council a report that analyzes various impacts of this
ordinance, including its financial impacts on the City and the City's cannabis
industry, operational impacts on the Office of Special Programs, and
impacts on City business districts and neighborhoods."
SECTION 2. Palm Springs Municipal Code section 5.55.095 is hereby amended
to add a new subsection (D) to read as follows:
"An adult -use cannabis permit shall not be issued or transferred to any
person who is the owner of, or has a financial a financial interest in, two
dispensary cannabis businesses operating in the City or who has obtained
two dispensary cannabis permits to operate in the City."
SECTION 3. Palm Springs Municipal Code section 3.42.020, definition of "Gross
Receipts" is hereby amended to read as follows:
"'Gross receipts.' Except as otherwise specifically provided in this code or
by regulation authorized by this code, "gross receipts" means the total
amount actually received or receivable from all sales; the total amount or
compensation actually received or receivable for the performance of any act '
or service, of whatever nature, for which a charge is made or credit allowed,
whether or not such act or service is done as a part of or in connection with
the sale of materials, goods, wares or merchandise; discounts, rents,
royalties, fees, commissions, dividends, and gains realized from trading in
stocks or bonds, however designated. Included in "gross receipts" shall be
all receipts, cash, credits and property of any kind or nature, without any
deduction or set off therefrom on account of the cost of the property sold,
the cost of materials used, labor or service costs, interest paid or payable,
or losses or other expenses whatsoever. Collection of any State excise tax
shall be excluded from "gross receipts. Credit card fees shall be exclude
from the definition of "gross receipts." "
SECTION 4. Palm Springs Municipal Code section 5.55.200(A)(21) is hereby
amended to read as follows:
"21. Any new supervisors, employees or other persons otherwise
engaged in the operation of the Adult -Use Cannabis Business must submit
their information to the City Manager within 10 days prior to their new
ownership, employment, or engagement, including fingerprints and other
necessary information for a background check. In the event an employee
background check takes more than seventy two (72) hours to receive a '
response from the City, employees may be hired on a probationary status
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Ordinance No. 2094
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for a period of no more than fourteen (14) days pending the final City
approval of their background check."
F
SECTION 5. Sunset Date. Unless amended by future ordinance, Section 1 of this
ordinance shall expire by operation of law on December 31, 2027. Upon expiration of this
ordinance, subsection (C) of Section 5.55.095 shall be removed from the Palm Springs
Municipal Code.
SECTION 6. CEQA. This action is not subject to the California Environmental
Quality Act (Public Resources Code Section 21000 et. seq.) pursuant to Section
15060(c)(2) and 15060(c)(3) of the State Guidelines, because the resolution will not result
in a direct or reasonably foreseeable indirect physical change in the environment and is
not a "project," as that term is defined in Section 15378 of the State Guidelines.
SECTION 7. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect other
provisions or applications of the Resolution that can be given effect without the invalid
provision or application, and to this end the provisions of this Resolution are severable.
The City Council hereby declares that it would have adopted this Resolution irrespective
of the invalidity of any particular portion thereof.
PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS
14T" DAY OF MARCH 2O24
ATTEST:
g J,///
BRENDA PREE, MMC, CERA
CITY CLERK
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Ordinance No. 2094
Page 4
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS)
I, Brenda Pree, City Clerk of the City of Palm Springs, California, do hereby certify
that Ordinance No. 2094 is a full, true, and correct copy, and was introduced at a regular
meeting of the Palm Springs City Council on February 29, 2024, and adopted at a regular
meeting of the City Council held on March 14, 2024, by the following vote:
AYES: Councilmembers Garner and Middleton; Mayor Pro Tern deHarte; and Mayor
Bernstein
NOES: None
RECUSED: Councilmember Holstege
ABSENT: None
ABSTAIN: None
IN WITNESS WHEREOF, I have hereunto et my hand and affixed the official seal of the
City of Palm Springs, California, thisP-day of March 2024.
BRENDA P EE, MMC, CERA
CITY CLERK
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